Market Insights

The Boston Bank That’s Bumping Up Its CRE Lending

East Boston Savings Bank was one of the most prominent small and midsize loan originators for Boston commercial properties in the first half of this year, CrediFi found in a market report released today on commercial real estate lending in Boston. The bank reported that its net loans were boosted this year by an increase in commercial real estate financing.

Boston-based East Boston Savings, the sole subsidiary of Meridian Bancorp, originated the most midsize loans ($5.1 million to $25 million) across all property types in the first half of 2018, and was one of the top three lenders in the two smaller loan-size brackets.

Read the full H1 2018 report on CRE finance in Boston.

An analysis of specific property types shows that East Boston Savings was especially prominent in the office category this year, where it originated the most loans in H1 2018 in both the $1.1M-$5M and $5.1M-$25M brackets.

CRE lending on the upswing

Commercial real estate lending was the driving force behind an increase in East Boston Savings’ net loans, the bank said in its quarterly statements this year.

The Boston lender reported a 22% net increase in loans in the first quarter compared with Q1 2017. It had $4.9 billion in net loans on its balance sheet at the end of Q1, of which $3.8 billion was for commercial properties, including construction and multifamily loans.

The growth continued in Q2, when net loans reached $5.1 billion at the end of the second quarter, up 4% over Q1. Loan originations totaled $843 million in the first half of the year.

“The net increase in loans for the six months ended June 30, 2018 was primarily due to increases of $323.1 million in commercial real estate loans, $131.9 million in multi-family loans, $43.3 million in commercial and industrial loans, and $32.0 million in one- to four-family loans,” Meridian Bancorp said in a statement.

East Boston Savings had $5.4 billion in total assets as of the end of Q1, up about 17% year-over-year, and $5.7 billion in assets as of the end of Q2.

The CrediFi report analyzed $28.6 billion in financing from the first two quarters of each of the past three years (2016, 2017, 2018) to determine which commercial real estate lenders are the market leaders for small and midsize loans, as measured by loan count. It also examines which lenders are responsible for some of the largest loans in the first half of this year and provides a breakdown of originators by loan size distribution and by property type.

 

Find out which other CRE lenders are financing Boston’s commercial real estate market.

Read our report on real estate financing in Boston.

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