• Meridian Corporation Reports First Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share

    Источник: Nasdaq GlobeNewswire / 25 апр 2025 13:31:55   America/New_York

    MALVERN, Pa., April 25, 2025 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:

     Three Months Ended
    (Dollars in thousands, except per share data)((Unaudited)March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Income:      
    Net income$2,399 $5,600 $2,676
    Diluted earnings per common share$0.21 $0.49 $0.24
    Pre-provision net revenue (PPNR) (1)$8,357 $11,167 $6,419
    (1) See Non-GAAP reconciliation in the Appendix     
          
    • Net income for the quarter ended March 31, 2025 was $2.4 million, or $0.21 per diluted share.

    • Pre-provision net revenue1 for the quarter was $8.4 million, up $1.9 million or 30.2% from 1Q 2024.

    • Net interest margin was 3.46% for the first quarter of 2025, with a loan yield of 7.19%.

    • Return on average assets and return on average equity for the first quarter of 2025 were 0.40% and 5.57%, respectively.

    • Total assets at March 31, 2025 were $2.5 billion, compared to $2.4 billion at December 31, 2024 and $2.3 billion at March 31, 2024.

    • Commercial loans, excluding leases, increased $49.5 million, or 3% for the quarter.

    • First quarter deposit growth was $123.4 million, or 6%.

    • Non-interest-bearing deposits were up $82.6 million or 34%, quarter over quarter.

    • On April 24, 2025, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable May 19, 2025 to shareholders of record as of May 12, 2025.

    Christopher J. Annas, Chairman and CEO commented:

    Meridian’s first quarter 2025 earnings of $2.4 million were slightly below the first quarter 2024 net income of $2.7 million however PPNR was up 30%, reflecting overall healthy growth in our business units and good expense control. Our earnings were negatively affected by higher provisioning resulting mainly from distressed SBA loans, which have been impacted by the dramatic rate rise. The remediation process for SBA loans is lengthy due to procedural requirements, which we follow diligently to assure the government guaranty, but we are making progress. On a positive note, our net interest margin was 3.46% and has shown consistent improvement over the last four quarters.

    Loan growth in the first quarter was 12% annualized (minus expected lease paydowns) and all commercial groups contributed. The Delaware Valley region is plagued by a lack of homes for sale, so construction and other residential building is in demand. Our commercial/industrial lending has benefited from disruption in a recent local bank combination, from where we hired a senior lender with a deep list of contacts throughout the region. We expect many opportunities from this individual and his future hires.

    Meridian Wealth Partners continued its strong performance with pre-tax income of $726 thousand for the quarter. A slight increase in assets under management combined with overall better fee percentages contributed to the gain. We are poised for better growth in this segment as our expanded loan customer base provides referral business, and with the recent hiring of a senior wealth professional to help focus on other opportunities.

    The mortgage group had a larger pre-tax loss in 1Q25 vs 1Q24, mainly due to lower volume and a lesser loan officer count. The first quarter is seasonally weaker, but we are encouraged by the forecast for greater home inventory in both our Delaware Valley and Maryland markets. That has been a much bigger factor for loan originations than mortgage rates.

    Our solid growth in PPNR has enabled us to manage the spike in non-performing loans, as we work intensely to remediate these credits. The growth in first quarter loan volume and expansion in net interest margin should continue to help drive further improvement in profitability.

    Select Condensed Financial Information

     As of or for the three months ended (Unaudited)
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
     (Dollars in thousands, except per share data)
    Income:         
    Net income$2,399  $5,600  $4,743  $3,326  $2,676 
    Basic earnings per common share 0.21   0.50   0.43   0.30   0.24 
    Diluted earnings per common share 0.21   0.49   0.42   0.30   0.24 
    Net interest income 19,776   19,299   18,242   16,846   16,609 
              
    Balance Sheet:         
    Total assets$2,528,586  $2,385,867  $2,387,721  $2,351,584  $2,292,923 
    Loans, net of fees and costs 2,071,675   2,030,437   2,008,396   1,988,535   1,956,315 
    Total deposits 2,128,742   2,005,368   1,978,927   1,915,436   1,900,696 
    Non-interest bearing deposits 323,485   240,858   237,207   224,040   220,581 
    Stockholders' equity 173,266   171,522   167,450   162,382   159,936 
              
    Balance Sheet Average Balances:         
    Total assets$2,420,571  $2,434,270  $2,373,261  $2,319,295  $2,269,047 
    Total interest earning assets 2,330,224   2,342,651   2,277,523   2,222,177   2,173,212 
    Loans, net of fees and costs 2,039,676   2,029,739   1,997,574   1,972,740   1,944,187 
    Total deposits 2,036,208   2,043,505   1,960,145   1,919,954   1,823,523 
    Non-interest bearing deposits 244,161   259,118   246,310   229,040   233,255 
    Stockholders' equity 174,734   171,214   165,309   162,119   159,822 
              
    Performance Ratios (Annualized):         
    Return on average assets 0.40%  0.92%  0.80%  0.58%  0.47%
    Return on average equity 5.57%  13.01%  11.41%  8.25%  6.73%
                        

    Income Statement - First Quarter 2025 Compared to Fourth Quarter 2024

    First quarter net income decreased $3.2 million, or 57.2%, to $2.4 million due to decreased non-interest income as the prior quarter included a $4.0 million gain on sale of MSR's and a $317 thousand gain on sale of OREO, partially offset by a $1.0 million charge for early lease termination. The first quarter provision for credit losses increased over the prior quarter by $1.6 million. Net interest income increased $477 thousand and non-interest expenses decreased $2.7 million. Detailed explanations of the major categories of income and expense follow below.

    Net Interest income

    Interest income decreased $869 thousand quarter-over-quarter on a tax equivalent basis, driven by both two less days in the period as well as a lower level of average earning assets, which decreased by $12.4 million. On a rate basis, the yield on earnings assets increased 2 basis points.

    Average total loans, excluding residential loans for sale, increased $10.0 million. The largest drivers of this increase were commercial, commercial real estate, and small business loans which on a combined basis increased $21.2 million on average, partially offset by a decrease in average leases of $10.6 million. Home equity, residential real estate, consumer and other loans held in portfolio decreased on a combined basis $602 thousand on average.

    Total interest expense decreased $1.3 million, quarter-over-quarter, also driven by two fewer days in the period and a lower volume of time deposits and borrowings. On a rate basis, all deposit types experienced a decrease in the cost, with the overall cost of deposits dropping 21 basis points. Interest expense on total deposits decreased $1.5 million and interest expense on borrowings decreased $139 thousand. During the period, interest-bearing checking accounts and money market accounts increased $9.9 million and $37.9 million on average, respectively, while time deposits decreased $40.2 million on average. Borrowings decreased $6.7 million on average.

    Overall the net interest margin increased 17 basis points to 3.46% as the cost of funds declined and the yield on earning assets increased slightly.

    Provision for Credit Losses

    The overall provision for credit losses for the first quarter increased $1.6 million to $5.2 million, from $3.6 million in the fourth quarter. The first quarter provision increased due to an increase of $7.1 million in non-performing loans which led to an increase of $2.3 million in specific reserves on such loans. SBA loans make up $6.9 million of these additional non-performing loans, of which $3.8 million are guaranteed by the SBA.   The increase in provision was also partially impacted by unfavorable changes in certain macro-economic factors used in the model due to current economic and market uncertainty.

    Non-interest income

    The following table presents the components of non-interest income for the periods indicated:

     Three Months Ended    
    (Dollars in thousands)March 31,
    2025    		 December 31,
    2024    		 $ Change % Change
    Mortgage banking income$3,393  $5,516  $(2,123) (38.5)%
    Wealth management income 1,535   1,527   8  0.5%
    SBA loan income 748   1,143   (395) (34.6)%
    Earnings on investment in life insurance 222   224   (2) (0.9)%
    Net (loss) gain on sale of MSRs (52)  3,992   (4,044) (101.3)%
    Gain on sale of OREO —   317   (317) (100.0)%
    Net change in the fair value of derivative instruments 149   (146)  295  (202.1)%
    Net change in the fair value of loans held-for-sale 102   (163)  265  (162.6)%
    Net change in the fair value of loans held-for-investment 170   (552)  722  (130.8)%
    Net (loss) gain on hedging activity 21   192   (171) (89.1)%
    Other 1,036   1,229   (193) (15.7)%
    Total non-interest income$7,324  $13,279  $(5,955) (44.8)%
                  

    Total non-interest income decreased $6.0 million, or 44.8%, quarter-over-quarter largely due to recognizing a gain on sale of MSRs of $4.0 million in the prior quarter, combined with a $2.1 million decline in mortgage banking income, and a change in gains of $171 thousand in hedging activity. These declines in income were partially offset by favorable derivative and loan related fair value changes. Mortgage loan sales decreased $68.1 million or 31.5% quarter over quarter driving lower gain on sale income in addition to a lower overall margin, leading to the lower level of mortgage banking income.

    SBA loan income decreased $395 thousand due to a lower level of SBA loan sales. SBA loans sold for the quarter-ended March 31, 2025 totaled $12.1 million, down $7.8 million, or 39.1%, compared to the quarter-ended December 31, 2024. The gross margin on SBA sales was 8.7% for the quarter, up from 7.5% for the previous quarter.

    Non-interest expense

    The following table presents the components of non-interest expense for the periods indicated:

     Three Months Ended    
    (Dollars in thousands)March 31,
    2025    		 December 31,
    2024    		 $ Change % Change
    Salaries and employee benefits$11,385 $12,429 $        (1,044)         (8.4)%
    Occupancy and equipment 1,338  2,270          (932)         (41.1)%
    Professional fees 763  1,134          (371)         (32.7)%
    Data processing and software 1,479  1,553          (74)         (4.8)%
    Advertising and promotion 779  839          (60)         (7.2)%
    Pennsylvania bank shares tax 269  243          26          10.7%
    Other 2,730  2,943          (213)         (7.2)%
    Total non-interest expense$18,743 $21,411 $        (2,668)         (12.5)%
                

    Overall salaries and benefits decreased $1.0 million. Bank and wealth segments combined decreased $245 thousand, while the mortgage segment decreased $799 thousand. Mortgage segment salaries, commissions, and employee benefits expense are impacted by volume and decreased commensurate with the lower levels of originations, which were down $63.5 million from the prior quarter. Occupancy and equipment expense decreased $932 thousand, net, due to fees, credits and other disposal costs for the early termination of the Blue Bell lease that occurred in the prior quarter. Professional fees decreased $371 thousand over the prior period mainly due to the results of cost control efforts on certain internal audit fees, legal fees and consulting fees, while other non-interest expense decreased $213 thousand due to a decline in certain business development costs, other loan related fees, and OREO related expenses.

    Balance Sheet - March 31, 2025 Compared to December 31, 2024

    Total assets increased $142.7 million, or 6.0%, to $2.5 billion as of March 31, 2025 from $2.4 billion at December 31, 2024. Interest-earning cash increased $91.8 million, or 419.7%, to $113.6 million as of March 31, 2025 from December 31, 2024, as a temporary deposit of $103 million from a long standing customer was on hand for several weeks. In addition, loan growth contributed to the overall increase in total assets over this period.

    Portfolio loan growth was $42.0 million, or 2.1% quarter-over-quarter. The portfolio growth was generated from commercial mortgage loans which increased $21.2 million, or 2.6%, construction loans which increased $18.3 million, or 7.1%, small business loans which increased $5.3 million, or 3.4%, and commercial & industrial loans which increased $4.6 million, or 1.3%. Lease financings decreased $9.2 million, or 12.1% from December 31, 2024, partially offsetting the above noted loan growth, but this decline was expected as we continue to refocus away from lease originations.

    Total deposits increased $123.4 million, or 6.2% quarter-over-quarter, led by non-interest bearing deposit growth of $82.6 million. Non-interest bearing deposits benefited from a late quarter deposit of $103 million from a long standing customer that sold a business. This deposit was on hand for several weeks. Money market accounts and savings accounts also increased a combined $34.3 million, while interest bearing demand deposits increased $19.6 million, and time deposits decreased $13.1 million from largely wholesale efforts. Overall borrowings increased $15.1 million, or 12.1% quarter-over-quarter.

    Total stockholders’ equity increased by $1.7 million from December 31, 2024, to $173.3 million as of March 31, 2025. Changes to equity for the current quarter included net income of $2.4 million, less dividends paid of $1.4 million, offset by a decrease of $529 thousand in other comprehensive income. The Community Bank Leverage Ratio for the Bank was 9.30% at March 31, 2025.

    Asset Quality Summary

    Non-performing loans increased $7.1 million to $52.2 million at March 31, 2025 compared to $45.1 million at December 31, 2024. Included in non-performing loans are $19.1 million of SBA loans of which $9.9 million, or 53%, are guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase and $15.0 million, or 80% of these non-performing loans originated in 2020-2021 where their rates rose over 500 basis points.  

    The ratio of non-performing loans to total loans increased 30 bps to 2.49% as of March 31, 2025, from 2.19% as of December 31, 2024. The increase in non-performing loans was led by a $6.9 million increase in non-performing SBA loans, and $881 thousand in leases.

    Net charge-offs as a % of total average loans of 0.14% for the quarter ended March 31, 2025, decreased from 0.34% for the quarter ended December 31, 2024. Net charge-offs decreased to $2.8 million for the quarter ended March 31, 2025, compared to net charge-offs of $7.1 million for the quarter ended December 31, 2024. First quarter charge-offs consisted of $851 thousand on a protracted commercial advertising loan relationship, $738 thousand related to construction loans, $553 thousand of small ticket equipment leases which are charged-off after becoming more than 120 days past due, and $277 thousand in SBA loans. Overall there were recoveries of $175 thousand, largely related to leases and SBA loans.

    The ratio of allowance for credit losses to total loans held for investment was 1.01% as of March 31, 2025, an increase from the coverage ratio of 0.91% as of December 31, 2024 due largely to the increase in specific reserves on non-performing loans in the quarter discussed above.   As of March 31, 2025 there were specific reserves of $5.0 million against individually evaluated loans, an increase of $2.3 million from $2.7 million in specific reserves as of December 31, 2024. The specific reserve increase over the prior quarter was led by a $1.6 million increase in specific reserves on SBA loans, as well as increases of $535 thousand in commercial real estate loan specifics reserves and a $174 thousand increase in commercial loan specific reserves.

    About Meridian Corporation

    Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.

    “Safe Harbor” Statement

    In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

    MERIDIAN CORPORATION AND SUBSIDIARIES
    FINANCIAL RATIOS (Unaudited)
    (Dollar amounts and shares in thousands, except per share amounts)
      
     Three Months Ended
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Earnings and Per Share Data:         
    Net income$2,399  $5,600  $4,743  $3,326  $2,676 
    Basic earnings per common share$0.21  $0.50  $0.43  $0.30  $0.24 
    Diluted earnings per common share$0.21  $0.49  $0.42  $0.30  $0.24 
    Common shares outstanding 11,285   11,240   11,229   11,191   11,186 
              
    Performance Ratios:         
    Return on average assets (2) 0.40%  0.92%  0.80%  0.58%  0.47%
    Return on average equity (2) 5.57   13.01   11.41   8.25   6.73 
    Net interest margin (tax-equivalent) (2) 3.46   3.29   3.20   3.06   3.09 
    Yield on earning assets (tax-equivalent) (2) 6.83   6.81   7.06   6.98   6.90 
    Cost of funds (2) 3.56   3.71   4.05   4.10   4.00 
    Efficiency ratio 69.16%  65.72%  70.67%  72.89%  73.90%
              
    Asset Quality Ratios:         
    Net charge-offs (recoveries) to average loans 0.14%  0.34%  0.11%  0.20%  0.12%
    Non-performing loans to total loans 2.49   2.19   2.20   1.84   1.93 
    Non-performing assets to total assets 2.07   1.90   1.97   1.68   1.74 
    Allowance for credit losses to:         
    Total loans and other finance receivables 1.01   0.91   1.09   1.09   1.18 
    Total loans and other finance receivables (excluding loans at fair value) (1) 1.01   0.91   1.10   1.10   1.19 
    Non-performing loans 39.90%  40.86%  48.66%  57.66%  60.59%
              
    Capital Ratios:         
    Book value per common share$15.35  $15.26  $14.91  $14.51  $14.30 
    Tangible book value per common share$15.03  $14.93  $14.58  $14.17  $13.96 
    Total equity/Total assets 6.85%  7.19%  7.01%  6.91%  6.98%
    Tangible common equity/Tangible assets - Corporation (1) 6.72   7.05   6.87   6.76   6.82 
    Tangible common equity/Tangible assets - Bank (1) 8.61   9.06   8.95   8.85   8.93 
    Tier 1 leverage ratio - Bank 9.30   9.21   9.32   9.33   9.42 
    Common tier 1 risk-based capital ratio - Bank 10.15   10.33   10.17   9.84   9.87 
    Tier 1 risk-based capital ratio - Bank 10.15   10.33   10.17   9.84   9.87 
    Total risk-based capital ratio - Bank 11.14%  11.20%  11.22%  10.84%  10.95%
    (1) See Non-GAAP reconciliation in the Appendix        
    (2) Annualized         
              


    MERIDIAN CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (Dollar amounts and shares in thousands, except per share amounts)
      
     Three Months Ended
     March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Interest income:     
    Loans and other finance receivables, including fees$36,549  $37,229  $35,339 
    Securities - taxable 1,693   1,684   1,251 
    Securities - tax-exempt 313   314   325 
    Cash and cash equivalents 613   801   300 
    Total interest income 39,168   40,028   37,215 
    Interest expense:     
    Deposits 16,868   18,341   17,392 
    Borrowings and subordinated debentures 2,524   2,388   3,214 
    Total interest expense 19,392   20,729   20,606 
    Net interest income 19,776   19,299   16,609 
    Provision for credit losses 5,212   3,572   2,866 
    Net interest income after provision for credit losses 14,564   15,727   13,743 
    Non-interest income:     
    Mortgage banking income 3,393   5,516   3,634 
    Wealth management income 1,535   1,527   1,317 
    SBA loan income 748   1,143   986 
    Earnings on investment in life insurance 222   224   207 
    Net (loss) gain on sale of MSRs (52)  3,992   — 
    Gain on sale of OREO —   317   — 
    Net change in the fair value of derivative instruments 149   (146)  75 
    Net change in the fair value of loans held-for-sale 102   (163)  (2)
    Net change in the fair value of loans held-for-investment 170   (552)  (175)
    Net (loss) gain on hedging activity 21   192   (19)
    Other 1,036   1,229   1,961 
    Total non-interest income 7,324   13,279   7,984 
    Non-interest expense:     
    Salaries and employee benefits 11,385   12,429   10,573 
    Occupancy and equipment 1,338   2,270   1,233 
    Professional fees 763   1,134   1,498 
    Data processing and software 1,479   1,553   1,532 
    Advertising and promotion 779   839   748 
    Pennsylvania bank shares tax 269   243   274 
    Other 2,730   2,943   2,316 
    Total non-interest expense 18,743   21,411   18,174 
    Income before income taxes 3,145   7,595   3,553 
    Income tax expense 746   1,995   877 
    Net income$2,399  $5,600  $2,676 
          
    Basic earnings per common share$0.21  $0.50  $0.24 
    Diluted earnings per common share$0.21  $0.49  $0.24 
          
    Basic weighted average shares outstanding 11,205   11,158   11,088 
    Diluted weighted average shares outstanding 11,446   11,375   11,201 
                


    MERIDIAN CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
    (Dollar amounts and shares in thousands, except per share amounts)
              
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Assets:         
    Cash and due from banks$16,976  $5,598  $12,542  $8,457  $8,935 
    Interest-bearing deposits at other banks 113,620   21,864   19,805   15,601   14,092 
    Federal funds sold 629   —   —   —   — 
    Cash and cash equivalents 131,225   27,462   32,347   24,058   23,027 
    Securities available-for-sale, at fair value 185,221   174,304   171,568   159,141   150,996 
    Securities held-to-maturity, at amortized cost 32,720   33,771   33,833   35,089   35,157 
    Equity investments 2,126   2,086   2,166   2,088   2,092 
    Mortgage loans held for sale, at fair value 28,047   32,413   46,602   54,278   29,124 
    Loans and other finance receivables, net of fees and costs 2,071,675   2,030,437   2,008,396   1,988,535   1,956,315 
    Allowance for credit losses (20,827)  (18,438)  (21,965)  (21,703)  (23,171)
    Loans and other finance receivables, net of the allowance for credit losses 2,050,848   2,011,999   1,986,431   1,966,832   1,933,144 
    Restricted investment in bank stock 8,369   7,753   8,542   10,044   8,560 
    Bank premises and equipment, net 12,028   12,151   12,807   13,114   13,451 
    Bank owned life insurance 29,935   29,712   29,489   29,267   29,051 
    Accrued interest receivable 10,345   9,958   10,012   9,973   9,864 
    Other real estate owned 159   159   1,862   1,862   1,703 
    Deferred income taxes 5,136   4,669   3,537   3,950   4,339 
    Servicing assets 4,284   4,382   4,364   11,341   11,573 
    Servicing assets held for sale —   —   6,609   —   — 
    Goodwill 899   899   899   899   899 
    Intangible assets 2,716   2,767   2,818   2,869   2,920 
    Other assets 24,528   31,382   33,835   26,779   37,023 
    Total assets$2,528,586  $2,385,867  $2,387,721  $2,351,584  $2,292,923 
              
    Liabilities:         
    Deposits:         
    Non-interest bearing$323,485  $240,858  $237,207  $224,040  $220,581 
    Interest bearing         
    Interest checking 161,055   141,439   133,429   130,062   121,204 
    Money market and savings deposits 947,795   913,536   822,837   787,479   797,525 
    Time deposits 696,407   709,535   785,454   773,855   761,386 
    Total interest-bearing deposits 1,805,257   1,764,510   1,741,720   1,691,396   1,680,115 
    Total deposits 2,128,742   2,005,368   1,978,927   1,915,436   1,900,696 
    Borrowings 139,590   124,471   144,880   187,260   145,803 
    Subordinated debentures 49,761   49,743   49,928   49,897   49,867 
    Accrued interest payable 7,404   6,860   7,017   7,709   8,350 
    Other liabilities 29,823   27,903   39,519   28,900   28,271 
    Total liabilities 2,355,320   2,214,345   2,220,271   2,189,202   2,132,987 
              
    Stockholders’ equity:         
    Common stock 13,288   13,243   13,232   13,194   13,189 
    Surplus 81,724   81,545   81,002   80,639   80,487 
    Treasury stock (26,079)  (26,079)  (26,079)  (26,079)  (26,079)
    Unearned common stock held by employee stock ownership plan (1,006)  (1,006)  (1,204)  (1,204)  (1,204)
    Retained earnings 112,952   111,961   107,765   104,420   102,492 
    Accumulated other comprehensive loss (7,613)  (8,142)  (7,266)  (8,588)  (8,949)
    Total stockholders’ equity 173,266   171,522   167,450   162,382   159,936 
    Total liabilities and stockholders’ equity$2,528,586  $2,385,867  $2,387,721  $2,351,584  $2,292,923 
                        


    MERIDIAN CORPORATION AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited)
    (Dollar amounts and shares in thousands, except per share amounts)
      
     Three Months Ended
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Interest income$39,168 $40,028 $40,319 $38,465 $37,215
    Interest expense 19,392  20,729  22,077  21,619  20,606
    Net interest income 19,776  19,299  18,242  16,846  16,609
    Provision for credit losses 5,212  3,572  2,282  2,680  2,866
    Non-interest income 7,324  13,279  10,831  9,244  7,984
    Non-interest expense 18,743  21,411  20,546  19,018  18,174
    Income before income tax expense 3,145  7,595  6,245  4,392  3,553
    Income tax expense 746  1,995  1,502  1,066  877
    Net Income$2,399 $5,600 $4,743 $3,326 $2,676
              
    Basic weighted average shares outstanding 11,205  11,158  11,110  11,096  11,088
    Basic earnings per common share$0.21 $0.50 $0.43 $0.30 $0.24
              
    Diluted weighted average shares outstanding 11,446  11,375  11,234  11,150  11,201
    Diluted earnings per common share$0.21 $0.49 $0.42 $0.30 $0.24
                   


     Segment Information
     Three Months Ended March 31, 2025 Three Months Ended March 31, 2024
    (dollars in thousands)Bank Wealth Mortgage Total Bank Wealth Mortgage Total
    Net interest income$19,706  $9  $61  $19,776  $16,592  $(6) $23  $16,609 
    Provision for credit losses 5,212   —   —   5,212   2,866   —   —   2,866 
    Net interest income after provision 14,494   9   61   14,564   13,726   (6)  23   13,743 
    Non-interest income 1,912   1,535   3,877   7,324   1,874   1,317   4,793   7,984 
    Non-interest expense 12,758   818   5,167   18,743   12,060   833   5,281   18,174 
    Income (loss) before income taxes$3,648  $726  $(1,229) $3,145  $3,540  $478  $(465) $3,553 
    Efficiency ratio 59%  53%  131%  69%  65%  64%  110%  74%
                                    

    MERIDIAN CORPORATION AND SUBSIDIARIES
    APPENDIX: NON-GAAP MEASURES (Unaudited)
    (Dollar amounts and shares in thousands, except per share amounts)

    Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

     Pre-provision Net Revenue Reconciliation
     Three Months Ended
    (Dollars in thousands, except per share data, Unaudited)March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Income before income tax expense$        3,145         $        7,595         $        3,553        
    Provision for credit losses         5,212                  3,572                  2,866        
    Pre-provision net revenue$        8,357         $        11,167         $        6,419        
             


     Pre-Provision Net Revenue Reconciliation
     Three Months Ended
    (Dollars in thousands, except per share data, Unaudited)March 31,
    2025    		 December 31,
    2024    		 March 31,
    2024
    Bank$8,860  $8,205 $6,406 
    Wealth 726   571  478 
    Mortgage (1,229)  2,391  (465)
    Pre-provision net revenue$8,357  $11,167 $6,419 
               


     Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding and Loans at Fair Value
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Allowance for credit losses (GAAP)$20,827  $18,438  $21,965  $21,703  $23,171 
              
    Loans and other finance receivables (GAAP) 2,071,675   2,030,437   2,008,396   1,988,535   1,956,315 
    Less: Loans at fair value (14,182)  (14,501)  (13,965)  (12,900)  (13,139)
    Loans and other finance receivables, excluding loans at fair value (non-GAAP)$2,057,493  $2,015,936  $1,994,431  $1,975,635  $1,943,176 
              
    ACL to loans and other finance receivables (GAAP) 1.01%  0.91%  1.09%  1.09%  1.18%
    ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP) 1.01%  0.91%  1.10%  1.10%  1.19%
                        


     Tangible Common Equity Ratio Reconciliation - Corporation
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Total stockholders' equity (GAAP)$173,266  $171,522  $167,450  $162,382  $159,936 
    Less: Goodwill and intangible assets (3,615)  (3,666)  (3,717)  (3,768)  (3,819)
    Tangible common equity (non-GAAP) 169,651   167,856   163,733   158,614   156,117 
              
    Total assets (GAAP) 2,528,586   2,385,867   2,387,721   2,351,584   2,292,923 
    Less: Goodwill and intangible assets (3,615)  (3,666)  (3,717)  (3,768)  (3,819)
    Tangible assets (non-GAAP)$2,524,971  $2,382,201  $2,384,004  $2,347,816  $2,289,104 
    Tangible common equity to tangible assets ratio - Corporation (non-GAAP) 6.72%  7.05%  6.87%  6.76%  6.82%
                        


     Tangible Common Equity Ratio Reconciliation - Bank
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Total stockholders' equity (GAAP)$220,768  $219,119  $217,028  $211,308  $208,319 
    Less: Goodwill and intangible assets (3,615)  (3,666)  (3,717)  (3,768)  (3,819)
    Tangible common equity (non-GAAP) 217,153   215,453   213,311   207,540   204,500 
              
    Total assets (GAAP) 2,525,029   2,382,014   2,385,994   2,349,600   2,292,894 
    Less: Goodwill and intangible assets (3,615)  (3,666)  (3,717)  (3,768)  (3,819)
    Tangible assets (non-GAAP)$2,521,414  $2,378,348  $2,382,277  $2,345,832  $2,289,075 
    Tangible common equity to tangible assets ratio - Bank (non-GAAP) 8.61%  9.06%  8.95%  8.85%  8.93%
              
     Tangible Book Value Reconciliation
     March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    Book value per common share$15.35  $15.26  $14.91  $14.51  $14.30 
    Less: Impact of goodwill /intangible assets 0.32   0.33   0.33   0.34   0.34 
    Tangible book value per common share$15.03  $14.93  $14.58  $14.17  $13.96 

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