Meridian Corporation Reports Fourth Quarter 2025 Results and Announces a Quarterly Dividend of $0.14 per Common Share

Rhea-AI Summary

Meridian Corporation (Nasdaq: MRBK) reported fourth-quarter 2025 net income of $7.2 million (diluted EPS $0.61) and pre-provision net revenue of $12.6 million. Total assets were $2.56 billion. The board declared a quarterly cash dividend of $0.14 per share, payable Feb 17, 2026.

Quarterly net income rose 7.9% vs prior quarter; PPNR improved 13% vs Q4 2024. Provision for credit losses increased to $3.3 million, while net interest margin held at 3.77%. Management highlighted loan growth, mortgage and wealth management performance, and selective acquisitions in 2025.

Positive

• Net income Q4 2025 of $7.2 million
• Diluted EPS of $0.61 in Q4 2025
• Pre-provision net revenue $12.6 million (+13% YoY)
• Total assets of $2.56 billion
• Quarterly dividend increased 12% to $0.14 per share

Negative

• Provision for credit losses rose to $3.3 million (up $437k QoQ)
• Higher levels of nonperforming loans and leases noted
• Mortgage banking income down ~$260k year-over-year (≈1.3%)
• Net charge-offs increased by $1.6 million, raising provisioning

News Market Reaction

+3.72% 1.9x vol

1 alert

+3.72% News Effect

+$8M Valuation Impact

$219M Market Cap

1.9x Rel. Volume

On the day this news was published, MRBK gained 3.72%, reflecting a moderate positive market reaction. This price movement added approximately $8M to the company's valuation, bringing the market cap to $219M at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income: $7.2 million Diluted EPS: $0.61 PPNR: $12.6 million +5 more

8 metrics

Net income $7.2 million Quarter ended December 31, 2025

Diluted EPS $0.61 Quarter ended December 31, 2025

PPNR $12.6 million Pre-provision net revenue, Q4 2025

Net interest margin 3.77% Fourth quarter 2025

Total assets $2,560,420 thousand Balance at December 31, 2025

Quarterly dividend $0.14 per share Declared January 29, 2026; payable February 17, 2026

Return on average equity 14.79% Annualized, Q4 2025

Community Bank Leverage Ratio 9.51% Bank ratio at December 31, 2025

Market Reality Check

Price: $20.08 Vol: Volume 36,782 is 0.54x th...

low vol

$20.08 Last Close

Volume Volume 36,782 is 0.54x the 20-day average of 68,126, showing muted pre-news activity. low

Technical Price at $18.26 is trading above the 200-day MA at $14.98 and sits 5.09% below the 52-week high.

Peers on Argus

MRBK was down 0.33% pre-news while close peers were mixed: some modestly higher ...

MRBK was down 0.33% pre-news while close peers were mixed: some modestly higher (e.g., MNSB up 0.83%) and others lower (e.g., NKSH down 3.02%). This points to a stock-specific setup rather than a broad regional bank move.

Previous Dividends,earnings Reports

5 past events · Latest: Oct 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 23	Q3 2025 earnings	Positive	+2.1%	Stronger Q3 earnings, higher PPNR, stable NIM and dividend declaration.
Jul 24	Q2 2025 earnings	Positive	+1.4%	Robust Q2 earnings, margin improvement and commercial loan growth with dividend.
Apr 25	Q1 2025 earnings	Negative	-1.6%	Lower net income and higher non-performing loans despite stronger PPNR.
Jan 24	Q4 2024 earnings	Positive	+1.5%	Earnings growth, higher full-year profit and continued dividend payout.
Oct 24	Q3 2024 earnings	Positive	+1.6%	Improved earnings, loan and deposit growth with steady quarterly dividend.

Pattern Detected

Earnings and dividend announcements have generally led to modest, directionally consistent price moves, with stronger quarters seeing small gains and a weaker Q1 2025 aligning with a mild decline.

Recent Company History

Over the past five dividends/earnings releases, Meridian has shown steadily improving profitability and stable asset growth. Prior quarters highlighted rising net income, expanding pre-provision net revenue, and a net interest margin building from the low-3% range. Dividends were consistently $0.125 per share until this report’s increase to $0.14. Non-performing loans remained elevated but manageable. Today’s Q4 2025 update continues the theme of earnings growth and dividend support on a loan portfolio that has been expanding throughout 2024–2025.

Historical Comparison

dividends,earnings

+1.6 %

Average Historical Move

Historical Analysis

Across the last 5 dividends/earnings releases, MRBK’s average one-day move was 1.61%. This Q4 2025 update, featuring higher EPS and a dividend raise to $0.14, is consistent in tone with those prior catalysts.

Typical Pattern

Same-tag history shows a progression of improving earnings from late 2024 through 2025, with steady quarterly dividends now increased from $0.125 to $0.14 alongside continued loan and asset growth.

Market Pulse Summary

This announcement details stronger Q4 2025 performance, with net income of $7.2 million, diluted EPS...

Analysis

This announcement details stronger Q4 2025 performance, with net income of $7.2 million, diluted EPS of $0.61, and pre-provision net revenue of $12.6 million. The net interest margin held at 3.77%, total assets reached $2.56 billion, and the quarterly dividend rose to $0.14 per share. Historical dividends/earnings releases typically brought modest price moves. Investors may track non-performing loan trends, provision for credit losses, loan growth mix, and the sustainability of margin and dividend increases in upcoming quarters.

Key Terms

pre-provision net revenue, net interest margin, cost of funds, provision for credit losses, +4 more

8 terms

pre-provision net revenue financial

"Pre-provision net revenue1 for the quarter was $12.6 million..."

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

net interest margin financial

"Net interest margin was 3.77% for the fourth quarter of 2025..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

cost of funds financial

"...loan yield declined to 7.15%, and cost of funds declined to 3.23%..."

The cost of funds is the average price a company or bank pays to obtain money—through deposits, loans, bonds or other borrowings—that it uses to run the business or make investments. It matters to investors because higher borrowing costs act like a heavier mortgage payment for a household, reducing profits, cash flow and the ability to pay dividends or invest in growth, while lower costs boost competitiveness and valuation.

provision for credit losses financial

"The overall provision for credit losses for the fourth quarter increased..."

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

allowance for credit losses financial

"impact to the ACL from the model upgrade..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

SBA loan financial

"SBA loan income decreased $146 thousand as the volume of SBA loans sold..."

A SBA loan is a business loan that is partially guaranteed by a government agency designed to help small companies get financing they might not otherwise receive from banks. Think of the guarantee as a cosigner that reduces the lender’s risk, making it easier and often cheaper for small businesses to borrow for things like expansion, equipment, or working capital. Investors watch SBA lending because it can signal easier access to credit for small businesses and affects loan default risk and economic growth in the small-business sector.

ATM offering financial

"a net increase of $7.5 million due to stock issuance under an ATM offering..."

An at-the-market offering is a way for a company to sell new shares of its stock directly into the stock market over time, usually through a designated sales program. This approach allows the company to raise funds gradually as needed, similar to adding small amounts of fuel to a car rather than filling the tank all at once. For investors, it can influence the company's stock price and provide insights into its financing plans.

other real estate owned financial

"an increase in OREO expense as collateral on a land development loan..."

Assets a lender or financial firm holds after taking back real property through foreclosure or repossession because a borrower defaulted. Think of it like a store keeping returned items it didn’t sell — these properties are not earning interest, can be costly to maintain, and may be sold at a loss or profit, so they directly affect a lender’s balance sheet, cash flow and perceived credit risk for investors.

AI-generated analysis. Not financial advice.

MALVERN, Pa., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:

	Three Months Ended
(Dollars in thousands, except per share data)(Unaudited)	December 31, 2025			September 30, 2025			December 31, 2024
Income:
Net income	$	7,186		$	6,659		$	5,601
Diluted earnings per common share		0.61			0.58			0.49
Pre-provision net revenue (PPNR)(1)		12,584			11,523			11,168
(1) See Non-GAAP reconciliation in the Appendix

• Net income for the quarter ended December 31, 2025 was $7.2 million, or $0.61 per diluted share, up $527 thousand, or 8%, from prior quarter.
  
  
• Pre-provision net revenue¹ for the quarter was $12.6 million, an improvement of $1.4 million, or 13%. from Q4'2024.
  
  
• Net interest margin was 3.77% for the fourth quarter of 2025, while the loan yield declined to 7.15%, and cost of funds declined to 3.23% from the prior quarter.
  
  
• Return on average assets and return on average equity for the fourth quarter of 2025 were 1.10% and 14.79%, respectively.
  
  
• Total assets at December 31, 2025 were $2.6 billion, compared to $2.5 billion at September 30, 2025 and $2.4 billion at December 31, 2024.
  
  
• Commercial loans, excluding leases, increased $35.2 million, or 2% from prior quarter.
  
  
• On January 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable February 17, 2026 to shareholders of record as of February 9, 2026. This is an increase of $0.015 or 12%, compared to the quarterly cash dividend of $0.125 per common share declared in the prior quarter.
  
  

Christopher J. Annas, Chairman and CEO commented:

"Meridian's fourth quarter earnings grew 7.9% over the prior quarter, to $7.2 million. Annual earnings grew 33.6% over 2024 to $21.8 million. Year-over-year growth of our core commercial, industrial, and real estate loan portfolios equaled 10.7%, driven mostly through new and existing loan relationships, and despite SBA loan sales and a $25 million residential mortgage sale to reallocate to commercial. The exceptional loan growth has been sustainable over the years due to targeted lending hires, training new candidates and devising new ways to capitalize on market disruption.

The net interest margin has improved throughout 2025 mostly from lower deposit rates. We have benefited from lower core deposit rates to our commercial business because of pricing elasticity, but also from excellent management of our brokered deposit stack, which is similar in proportion to traditional branch banks’ CDs. Expenses were relatively flat from prior quarter, and up just 5.2% year over year. Although we are currently facing higher levels of nonperforming loans and leases, we are seeing slow progress as recoveries are improving and assets are migrating to our possession and ultimate disposition.

Our wealth management segment produced annual pre-tax income of $2.3 million, as assets under management grew 7.8%. We hired three new wealth advisors over the year, and also benefitted from stock market gains in client portfolios that expanded the AUM. We are investing in the wealth group as we see more opportunity, and we closely track our commercial customers’ liquidity events to pursue these assets. The mortgage segment earned pre-tax income of $1.1 million, with mortgage revenue down about $260 thousand or 1.3% from the prior year. The business has suffered from lack of homes for sale, that only saw some rebounding at end of year. We further streamlined the business in 2025 to assure profitability, and are optimistic about our 2026 origination goals.

Meridian's consistent organic growth, year over year, for the past 22 years has been defined by being opportunistic during times of turmoil. A series of acquisitions in our market during 2025 has positioned us to take advantage of customer and employee turmoil. Through our brand and strategic marketing efforts we expect to leverage this strength to our benefit in 2026."

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
	(Dollars in thousands, except per share data)
Income:
Net income	$	7,186			$	6,659			$	5,592			$	2,399			$	5,601
Basic earnings per common share		0.62				0.59				0.50				0.21				0.50
Diluted earnings per common share		0.61				0.58				0.49				0.21				0.49
Net interest income		23,627				23,116				21,159				19,776				19,299
Balance Sheet:
Total assets	$	2,560,420			$	2,541,130			$	2,510,938			$	2,528,888			$	2,385,867
Loans, net of fees and costs		2,170,600				2,162,845				2,108,250				2,071,675				2,030,437
Total deposits		2,158,128				2,131,116				2,110,374				2,128,742				2,005,368
Non-interest bearing deposits		245,377				239,614				237,042				323,485				240,858
Stockholders' equity		198,141				188,029				178,020				173,568				171,522
Balance Sheet Average Balances:
Total assets	$	2,588,357			$	2,534,565			$	2,491,625			$	2,420,571			$	2,434,270
Total interest earning assets		2,495,922				2,443,261				2,404,952				2,330,224				2,342,651
Loans, net of fees and costs		2,200,626				2,146,651				2,113,411				2,039,676				2,029,739
Total deposits		2,173,242				2,143,821				2,095,028				2,036,208				2,043,505
Non-interest bearing deposits		256,554				253,374				249,745				244,161				259,118
Stockholders' equity		192,799				183,242				176,945				174,734				171,214
Performance Ratios (Annualized):
Return on average assets		1.10	%			1.04	%			0.90	%			0.40	%			0.92	%
Return on average equity		14.79	%			14.42	%			12.68	%			5.57	%			13.01	%

Income Statement - Fourth Quarter 2025 Compared to Third Quarter 2025

Fourth quarter net income increased $527 thousand, or 7.9%, to $7.2 million due largely to an increase in net interest income of $511 thousand and an increase in non-interest income of $662 thousand, The provision for credit losses increased $437 thousand and non-interest expense was relatively flat over prior quarter. Income tax expense was up $97 thousand. Detailed explanations of the major categories of income and expense follow below.

Net Interest income

The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.

	Three Months Ended
(dollars in thousands)	December 31, 2025			September 30, 2025			$ Change				% Change			Change due to rate				Change due to volume
Interest income:
Cash and cash equivalents	$	348		$	412		$	(64	)		(15.5	)%		$	(28	)		$	(36	)
Investment securities - taxable		1,891			1,895			(4	)		(0.2	)%			(14	)			10
Investment securities - tax exempt (1)		396			400			(4	)		(1.0	)%			(12	)			8
Loans held for sale		500			536			(36	)		(6.7	)%			(37	)			1
Loans held for investment (1)		39,764			39,942			(178	)		(0.4	)%			(1,161	)			983
Total loans		40,264			40,478			(214	)		(0.5	)%			(1,198	)			984
Total interest income	$	42,899		$	43,185		$	(286	)		(0.7	)%		$	(1,252	)		$	966
Interest expense:
Interest-bearing demand deposits	$	1,186		$	1,314		$	(128	)		(9.7	)%		$	30			$	(158	)
Money market and savings deposits		7,942			8,322			(380	)		(4.6	)%			(821	)			441
Time deposits		7,454			7,782			(328	)		(4.2	)%			(249	)			(79	)
Total interest - bearing deposits		16,582			17,418			(836	)		(4.8	)%			(1,040	)			204
Borrowings		1,568			1,495			73			4.9	%			(44	)			117
Subordinated debentures		1,049			1,080			(31	)		(2.9	)%			(33	)			2
Total interest expense		19,199			19,993			(794	)		(4.0	)%			(1,117	)			323
Net interest income differential	$	23,700		$	23,192		$	508			2.19	%		$	(135	)		$	643
(1) Reflected on a tax-equivalent basis.

Interest income decreased $286 thousand quarter-over-quarter on a tax equivalent basis, driven by lower yields largely offset by increased average balances of interest earning assets. The yield on interest-earnings assets decreased 19 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets increased by $52.7 million, and contributed $966 thousand to interest income which helped to lessen the overall decrease.

Average total loans, excluding residential loans for sale, increased $54.0 million. The largest drivers of this increase were construction, commercial real estate, and commercial loans which on a combined basis increased $55.3 million on average, partially offset by a decrease in average leases of $6.9 million. Home equity, residential real estate, consumer and other loans held in portfolio increased on a combined basis $5.5 million on average.

Interest expense decreased $794 thousand, quarter-over-quarter, due to a decline in the cost of deposits and borrowings, partially offset by a higher volume of total interest-bearing deposits and borrowings. Interest expense on total deposits decreased $836 thousand, interest expense on borrowings increased $73 thousand, and interest expense on subordinated debentures decreased by $31 thousand as well. During the period, interest-bearing checking accounts decreased $20.4 million, time deposits decreased $7.4 million, while money market and savings deposit balances increased $54.1 million on average. Borrowings increased $9.9 million on average. On a rate basis, money market accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits declined 19 basis points.

Overall the net interest margin remained at 3.77%, consistent with the prior quarter, as the decline in cost of funds offset the decline in yield on earning assets.

Provision for Credit Losses

The overall provision for credit losses for the fourth quarter increased $437 thousand to $3.3 million, from $2.9 million in the third quarter. The higher level of provisioning was largely due to a $1.6 million increase in net charge-offs, combined with the impact of an upgrade to the third-party macroeconomic forecast model used to estimate credit losses on the loan portfolio, partially offset by a decline in baseline loss rates utilized for several loan portfolio segments. The model upgrade was based on assessing the macroeconomic variable relationships to expected results. The overall impact to the ACL from the model upgrade, before applying qualitative adjustments, was not considered material.

Non-interest income

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

	Three Months Ended
(Dollars in thousands)	December 31, 2025				September 30, 2025				$ Change				% Change
Mortgage banking income	$	5,714			$	5,914			$	(200	)		(3.4	)%
Wealth management income		1,679				1,610				69			4.3	%
SBA loan income		1,285				1,431				(146	)		(10.2	)%
Earnings on investment in life insurance		248				246				2			0.8	%
Net (loss) gain on sale of MSRs		(12	)			—				(12	)		(100.0	)%
Net (loss) gain on sale of loans		(184	)			(250	)			66			(26.4	)%
Net change in the fair value of derivative instruments		197				129				68			52.7	%
Net change in the fair value of loans held-for-sale		112				(75	)			187			(249.3	)%
Net change in the fair value of loans held-for-investment		86				213				(127	)		(59.6	)%
Net (loss) gain on hedging activity		(22	)			(166	)			144			(86.7	)%
Net gain (loss) on sale of investments AFS		453				48				405			843.8	%
Other		1,059				853				206			24.2	%
Total non-interest income	$	10,615			$	9,953			$	662			6.7	%

Total non-interest income increased $662 thousand, or 6.7%, quarter-over-quarter largely due to the increase in gains of $405 thousand on the sales of investment securities, $187 thousand in favorable fair value changes, $144 thousand in gains from hedging activities, $206 thousand increase in fee income from title and other services as well as an increase of $69 thousand in wealth management income, and a $66 thousand decline in the net loss on sale of loans. These improvements were partially offset by a $146 thousand decline in SBA loan income, and a $200 thousand decrease in mortgage banking income. Mortgage loan sales increased $1.0 million, or 0.5%, quarter-over-quarter. Despite this increase in overall sales, margin decreased 11 basis points resulting in a lower level of mortgage banking income.

SBA loan income decreased $146 thousand as the volume of SBA loans sold was down $4.5 million to $20.8 million, for the quarter-ended December 31, 2025 compared to the quarter-ended September 30, 2025, while the gross margin on SBA sales was 7.4% for both quarter ends.

Non-interest expense

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

	Three Months Ended
(Dollars in thousands)	December 31, 2025			September 30, 2025			$ Change				% Change
Salaries and employee benefits	$	13,103		$	13,613		$	(510	)		(3.7	)%
Occupancy and equipment		1,210			991			219			22.1	%
Professional fees		1,076			1,092			(16	)		(1.5	)%
Data processing and software		1,981			1,865			116			6.2	%
Advertising and promotion		944			877			67			7.6	%
Pennsylvania bank shares tax		224			254			(30	)		(11.8	)%
Other		3,120			2,854			266			9.3	%
Total non-interest expense	$	21,658		$	21,546		$	112			0.5	%

Overall salaries and benefits decreased $510 thousand, largely attributable to the variable nature of the mortgage segment along with timing of certain incentive expense. Occupancy increased $219 thousand due to the relocation two offices including the opening of the full service branch in Florida. Data processing and software expense increased $116 thousand due to an increase in customer transaction volume, while advertising and promotion expenses increased $67 thousand as the level of business development activities and special events increased at the end of the year. Other expense increased $266 thousand from an increase in OREO expense as collateral on a land development loan was repossessed and reclassified into OREO during the quarter-ended December 31, 2025, offset by a decline in other loan related expenses.

Balance Sheet - December 31, 2025 Compared to September 30, 2025

Total assets increased $19.3 million, or 0.8%, to $2.6 billion as of December 31, 2025 from $2.5 billion as of September 30, 2025.

Portfolio loans grew $8.4 million, or 0.4% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $10.9 million, or 2.6%, construction loans increased $15.4 million, or 4.9%, and commercial mortgage loans increased $6.9 million, or 0.8%. The balance of residential mortgages decreased by $24.4 million, or 9.4%, as we sold a $24.5 million portion of this portfolio and are using the proceeds to fund higher yielding loans. Lease financings also decreased $4.3 million, or 8.6% from September 30, 2025, partially offsetting the above noted loan growth, but this decline was expected.

Total deposits increased $27.0 million, or 1.3% quarter-over-quarter, led by an increase of $21.2 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $27.2 million, non-interest bearing accounts increased $5.8 million or 2.4%, while interest bearing demand deposits increased $5.4 million. Overall borrowings decreased $19.9 million, or 14.5% quarter-over-quarter.

Total stockholders’ equity increased by $10.1 million from September 30, 2025, to $198.1 million as of December 31, 2025. Changes to equity for the quarter included net income of $7.2 million, a net increase of $7.5 million due to stock issuance under an ATM offering, an increase of $626 thousand in other comprehensive income, partially offset by dividends paid of $1.4 million. The Community Bank Leverage Ratio for the Bank was 9.51% at December 31, 2025.

Asset Quality Summary

Non-performing loans decreased $298 thousand, to $55.1 million at December 31, 2025 compared to $55.4 million at September 30, 2025, with decreases coming in land development, construction, and commercial non-performing loans, partially offset by an increase in non-performing SBA loans. Included in non-performing loans are $24.8 million of SBA loans of which $13.2 million, or 53%, are guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase and $13.5 million, or 54% of these non-performing loans originated in 2020-2021 when rates were lower by over 500 basis points. As a result of these changes in non-performing loans, the ratio of non-performing loans to total loans decreased 3 bps to 2.50% as of December 31, 2025, from 2.53% as of September 30, 2025. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 1.90%.

Net charge-offs increased to $3.5 million, or 0.16% of total average loans for the quarter ended December 31, 2025, compared to net charge-offs of $1.9 million, or 0.09%, for the quarter ended September 30, 2025. Fourth quarter charge-offs consisted of $1.6 million in SBA loans, $846 thousand in commercial loans, $807 thousand in finance receivables, and $561 thousand of small ticket equipment leases. Overall there were recoveries of $257 thousand, mainly related to leases.

The ratio of allowance for credit losses to total loans held for investment was 1.00% as of December 31, 2025, slightly down from 1.01% reported as of September 30, 2025, impacted by charge-offs for the quarter, combined with the impact on the ACL from the residential mortgage loan sale. As of December 31, 2025 there were specific reserves of $3.4 million against individually evaluated loans, a slight increase of $94 thousand from the level of specific reserves as of September 30, 2025.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. 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; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; 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
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Earnings and Per Share Data:
Net income	$	7,186			$	6,659			$	5,592			$	2,399			$	5,601
Basic earnings per common share	$	0.62			$	0.59			$	0.50			$	0.21			$	0.50
Diluted earnings per common share	$	0.61			$	0.58			$	0.49			$	0.21			$	0.49
Common shares outstanding		11,826				11,517				11,297				11,285				11,240
Performance Ratios:
Return on average assets(2)		1.10	%			1.04	%			0.90	%			0.40	%			0.92	%
Return on average equity(2)		14.79				14.42				12.68				5.57				13.01
Net interest margin (tax-equivalent)(2)		3.77				3.77				3.54				3.46				3.29
Yield on earning assets (tax-equivalent)(2)		6.82				7.01				6.89				6.83				6.81
Cost of funds(2)		3.23				3.42				3.52				3.56				3.71
Efficiency ratio		63.25	%			65.15	%			65.82	%			69.16	%			65.72	%
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.16	%			0.09	%			0.17	%			0.14	%			0.34	%
Non-performing loans to total loans		2.50				2.53				2.35				2.49				2.19
Non-performing assets to total assets		2.38				2.32				2.14				2.07				1.90
Allowance for credit losses to:
Total loans and other finance receivables		0.99				1.01				0.99				1.01				0.91
Total loans and other finance receivables (excluding loans at fair value)(1)		1.00				1.01				1.00				1.01				0.91
Non-performing loans		39.18	%			39.37	%			41.26	%			39.63	%			40.86	%
Capital Ratios:
Book value per common share	$	16.75			$	16.33			$	15.76			$	15.38			$	15.26
Tangible book value per common share	$	16.46			$	16.02			$	15.44			$	15.06			$	14.93
Total equity/Total assets		7.74	%			7.40	%			7.09	%			6.86	%			7.19	%
Tangible common equity/Tangible assets - Corporation(1)		7.61				7.27				6.96				6.73				7.05
Tangible common equity/Tangible assets - Bank(1)		9.41				9.16				8.96				8.61				9.06
Tier 1 leverage ratio - Bank		9.51				9.41				9.32				9.30				9.21
Common tier 1 risk-based capital ratio - Bank		10.66				10.52				10.53				10.15				10.33
Tier 1 risk-based capital ratio - Bank		10.66				10.52				10.53				10.15				10.33
Total risk-based capital ratio - Bank		11.66	%			11.54	%			11.54	%			11.14	%			11.20	%
(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												Year Ended
	December 31, 2025				September 30, 2025				December 31, 2024				December 31, 2025				December 31, 2024
Interest income:
Loans and other finance receivables, including fees	$	40,264			$	40,477			$	37,229			$	155,987			$	147,157
Securities - taxable		1,891				1,895				1,684				7,271				5,739
Securities - tax-exempt		323				325				314				1,256				1,283
Cash and cash equivalents		348				412				801				1,800				1,848
Total interest income		42,826				43,109				40,028				166,314				156,027
Interest expense:
Deposits		16,582				17,418				18,341				68,169				74,037
Borrowings and subordinated debentures		2,617				2,575				2,388				10,467				10,994
Total interest expense		19,199				19,993				20,729				78,636				85,031
Net interest income		23,627				23,116				19,299				87,678				70,996
Provision for credit losses		3,287				2,850				3,572				15,152				11,400
Net interest income after provision for credit losses		20,340				20,266				15,727				72,526				59,596
Non-interest income:
Mortgage banking income		5,714				5,914				5,516				20,783				21,044
Wealth management income		1,679				1,610				1,527				6,316				5,735
SBA loan income		1,285				1,431				1,143				5,452				3,458
Earnings on investment in life insurance		248				246				224				956				868
Net (loss) gain on sale of MSRs		(12	)			—				3,992				403				3,992
Net (loss) gain on sale of loans		(184	)			(250	)			15				(434	)			15
Net change in the fair value of derivative instruments		197				129				(146	)			373				30
Net change in the fair value of loans held-for-sale		112				(75	)			(163	)			310				(25	)
Net change in the fair value of loans held-for-investment		86				213				(552	)			659				214
Net (loss) gain on hedging activity		(22	)			(166	)			192				(151	)			(87	)
Net gain (loss) on sale of investments AFS		453				48				(1	)			501				(57	)
Other		1,059				853				1,532				4,012				6,152
Total non-interest income		10,615				9,953				13,280				39,180				41,339
Non-interest expense:
Salaries and employee benefits		13,103				13,613				12,429				51,280				47,268
Occupancy and equipment		1,210				991				2,270				4,576				5,976
Professional fees		1,076				1,092				1,134				4,095				4,767
Data processing and software		1,981				1,865				1,553				7,031				6,144
Advertising and promotion		944				877				839				3,877				3,293
Pennsylvania bank shares tax		224				254				243				1,016				972
Other		3,120				2,854				2,943				11,429				10,729
Total non-interest expense		21,658				21,546				21,411				83,304				79,149
Income before income taxes		9,297				8,673				7,596				28,402				21,786
Income tax expense		2,111				2,014				1,995				6,566				5,440
Net income	$	7,186			$	6,659			$	5,601			$	21,836			$	16,346
Basic earnings per common share	$	0.62			$	0.59			$	0.50			$	1.93			$	1.47
Diluted earnings per common share	$	0.61			$	0.58			$	0.49			$	1.89			$	1.45
Basic weighted average shares outstanding		11,543				11,325				11,158				11,326				11,113
Diluted weighted average shares outstanding		11,771				11,540				11,375				11,538				11,243

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Assets:
Cash and due from banks	$	10,358			$	12,605			$	20,604			$	16,976			$	5,598
Interest-bearing deposits at other banks		25,420				27,384				29,570				113,620				21,864
Federal funds sold		—				—				—				629				—
Cash and cash equivalents		35,778				39,989				50,174				131,225				27,462
Securities available-for-sale, at fair value		193,457				194,268				187,902				185,221				174,304
Securities held-to-maturity, at amortized cost		32,544				32,593				32,642				32,720				33,771
Equity investments		2,166				2,150				2,130				2,126				2,086
Mortgage loans held for sale, at fair value		33,762				28,016				44,078				28,047				32,413
Loans and other finance receivables, net of fees and costs		2,170,600				2,162,845				2,108,250				2,071,675				2,030,437
Allowance for credit losses		(21,573	)			(21,794	)			(20,851	)			(20,827	)			(18,438	)
Loans and other finance receivables, net of the allowance for credit losses		2,149,027				2,141,051				2,087,399				2,050,848				2,011,999
Restricted investment in bank stock		7,811				8,350				9,162				8,369				7,753
Bank premises and equipment, net		12,402				12,413				12,320				12,028				12,151
Bank owned life insurance		30,687				30,421				30,175				29,935				29,712
Accrued interest receivable		10,724				10,944				10,334				10,345				9,958
OREO and other repossessed assets		5,997				3,714				3,148				249				276
Deferred income taxes		4,215				4,989				5,314				5,136				4,669
Servicing assets		3,932				3,845				3,658				4,284				(2,227	)
Servicing assets held for sale		—				—				—				—				6,609
Goodwill		899				899				899				899				899
Intangible assets		2,563				2,614				2,665				2,716				2,767
Other assets		34,456				24,874				28,938				24,740				31,265
Total assets	$	2,560,420			$	2,541,130			$	2,510,938			$	2,528,888			$	2,385,867
Liabilities:
Deposits:
Non-interest bearing	$	245,377			$	239,614			$	237,042			$	323,485			$	240,858
Interest bearing:
Interest checking		157,360				151,973				173,865				161,055				141,439
Money market and savings deposits		1,023,290				996,126				956,448				947,795				913,536
Time deposits		732,101				743,403				743,019				696,407				709,535
Total interest-bearing deposits		1,912,751				1,891,502				1,873,332				1,805,257				1,764,510
Total deposits		2,158,128				2,131,116				2,110,374				2,128,742				2,005,368
Borrowings		117,338				137,265				138,965				139,590				124,471
Subordinated debentures		49,853				49,822				49,792				49,761				49,743
Accrued interest payable		6,531				7,095				7,059				7,404				6,860
Other liabilities		30,429				27,803				26,728				29,823				27,903
Total liabilities		2,362,279				2,353,101				2,332,918				2,355,320				2,214,345
Stockholders’ equity:
Common stock		13,830				13,521				13,300				13,288				13,243
Surplus		90,352				85,122				82,184				82,026				81,545
Treasury stock		(26,079	)			(26,079	)			(26,079	)			(26,079	)			(26,079	)
Unearned common stock held by ESOP		(2,807	)			(1,006	)			(1,006	)			(1,006	)			(1,006	)
Retained earnings		128,124				122,376				117,132				112,952				111,961
Accumulated other comprehensive loss		(5,279	)			(5,905	)			(7,511	)			(7,613	)			(8,142	)
Total stockholders’ equity		198,141				188,029				178,020				173,568				171,522
Total liabilities and stockholders’ equity	$	2,560,420			$	2,541,130			$	2,510,938			$	2,528,888			$	2,385,867

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
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
Interest income	$	42,826		$	43,109		$	41,211		$	39,168		$	40,028
Interest expense		19,199			19,993			20,052			19,392			20,729
Net interest income		23,627			23,116			21,159			19,776			19,299
Provision for credit losses		3,287			2,850			3,803			5,212			3,572
Non-interest income		10,615			9,953			11,288			7,324			13,280
Non-interest expense		21,658			21,546			21,357			18,743			21,411
Income before income tax expense		9,297			8,673			7,287			3,145			7,596
Income tax expense		2,111			2,014			1,695			746			1,995
Net Income	$	7,186		$	6,659		$	5,592		$	2,399		$	5,601
Basic weighted average shares outstanding		11,543			11,325			11,228			11,205			11,158
Basic earnings per common share	$	0.62		$	0.59		$	0.50		$	0.21		$	0.50
Diluted weighted average shares outstanding		11,771			11,540			11,392			11,446			11,375
Diluted earnings per common share	$	0.61		$	0.58		$	0.49		$	0.21		$	0.49

	Segment Information
	Three Months Ended December 31, 2025																Three Months Ended December 31, 2024
(dollars in thousands)	Bank				Wealth				Mortgage				Total				Bank				Wealth				Mortgage				Total
Net interest income	$	23,478			$	59			$	90			$	23,627			$	19,178			$	70			$	51			$	19,299
Provision for credit losses		3,287				—				—				3,287				3,572				—				—				3,572
Net interest income after provision		20,191				59				90				20,340				15,606				70				51				15,727
Non-interest income		2,943				1,679				5,993				10,615				2,669				1,527				9,084				13,280
Non-interest expense		14,650				1,245				5,763				21,658				13,641				1,026				6,744				21,411
Income before income taxes	$	8,484			$	493			$	320			$	9,297			$	4,634			$	571			$	2,391			$	7,596
Efficiency ratio		55	%			72	%			95	%			63	%			62	%			64	%			74	%			66	%
	Year Ended December 31, 2025																Year Ended December 31, 2024
(dollars in thousands)	Bank				Wealth				Mortgage				Total				Bank				Wealth				Mortgage				Total
Net interest income	$	87,179			$	176			$	323			$	87,678			$	70,706			$	146			$	144			$	70,996
Provision for credit losses		15,152				—				—				15,152				11,400				—				—				11,400
Net interest income after provision		72,027				176				323				72,526				59,306				146				144				59,596
Non-interest income		10,248				6,316				22,616				39,180				7,576				5,735				28,028				41,339
Non-interest expense		57,287				4,155				21,862				83,304				51,584				3,506				24,059				79,149
Income before income taxes	$	24,988			$	2,337			$	1,077			$	28,402			$	15,298			$	2,375			$	4,113			$	21,786
Efficiency ratio		59	%			64	%			95	%			66	%			66	%			60	%			85	%			70	%

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									Year Ended
(Dollars in thousands, except per share data, Unaudited)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Income before income tax expense	$	9,297		$	8,673		$	7,596		$	28,402		$	21,786
Provision for credit losses		3,287			2,850			3,572			15,152			11,400
Pre-provision net revenue	$	12,584		$	11,523		$	11,168		$	43,554		$	33,186

	Pre-Provision Net Revenue Reconciliation
	Three Months Ended									Year Ended
(Dollars in thousands, except per share data, Unaudited)	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Bank	$	11,771		$	10,504		$	8,206		$	40,140		$	26,698
Wealth		493			512			571			2,337			2,375
Mortgage		320			507			2,391			1,077			4,113
Pre-provision net revenue	$	12,584		$	11,523		$	11,168		$	43,554		$	33,186

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Allowance for credit losses (GAAP)	$	21,573			$	21,794			$	20,851			$	20,827			$	18,438
Loans and other finance receivables (GAAP)		2,170,600				2,162,845				2,108,250				2,071,675				2,030,437
Less: Loans at fair value		(14,396	)			(14,454	)			(14,541	)			(14,182	)			(14,501	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,156,204			$	2,148,391			$	2,093,709			$	2,057,493			$	2,015,936
ACL to loans and other finance receivables (GAAP)		0.99	%			1.01	%			0.99	%			1.01	%			0.91	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		1.00	%			1.01	%			1.00	%			1.01	%			0.91	%

	Tangible Common Equity Ratio Reconciliation - Corporation
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Total stockholders' equity (GAAP)	$	198,141			$	188,029			$	178,020			$	173,568			$	171,522
Less: Goodwill and intangible assets		(3,462	)			(3,513	)			(3,564	)			(3,615	)			(3,666	)
Tangible common equity (non-GAAP)		194,679				184,516				174,456				169,953				167,856
Total assets (GAAP)		2,560,420				2,541,130				2,510,938				2,528,888				2,385,867
Less: Goodwill and intangible assets		(3,462	)			(3,513	)			(3,564	)			(3,615	)			(3,666	)
Tangible assets (non-GAAP)	$	2,556,958			$	2,537,617			$	2,507,374			$	2,525,273			$	2,382,201
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)		7.61	%			7.27	%			6.96	%			6.73	%			7.05	%

	Tangible Common Equity Ratio Reconciliation - Bank
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Total stockholders' equity (GAAP)	$	244,064			$	236,038			$	228,127			$	220,768			$	219,119
Less: Goodwill and intangible assets		(3,462	)			(3,513	)			(3,564	)			(3,615	)			(3,666	)
Tangible common equity (non-GAAP)		240,602				232,525				224,563				217,153				215,453
Total assets (GAAP)		2,560,485				2,541,395				2,510,684				2,525,029				2,382,014
Less: Goodwill and intangible assets		(3,462	)			(3,513	)			(3,564	)			(3,615	)			(3,666	)
Tangible assets (non-GAAP)	$	2,557,023			$	2,537,882			$	2,507,120			$	2,521,414			$	2,378,348
Tangible common equity to tangible assets ratio - Bank (non-GAAP)		9.41	%			9.16	%			8.96	%			8.61	%			9.06	%
	Tangible Book Value Reconciliation
	December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Book value per common share	$	16.75			$	16.33			$	15.76			$	15.38			$	15.26
Less: Impact of goodwill /intangible assets		0.29				0.31				0.32				0.32				0.33
Tangible book value per common share	$	16.46			$	16.02			$	15.44			$	15.06			$	14.93

Contact:
Christopher J. Annas
484.568.5001
CAnnas@meridianbanker.com

FAQ

What did Meridian (MRBK) report for Q4 2025 net income and EPS?

Meridian reported $7.2 million net income and diluted EPS of $0.61 for Q4 2025. According to the company, quarterly net income rose 7.9% versus the prior quarter and annual earnings increased 33.6% over 2024.

How much is Meridian's (MRBK) quarterly dividend declared Jan 29, 2026?

The board declared a quarterly cash dividend of $0.14 per common share, payable Feb 17, 2026. According to the company, this represents a 12% increase from the prior quarter's $0.125 dividend.

What drove Meridian's (MRBK) revenue and margin performance in Q4 2025?

Net interest margin stayed at 3.77%, supported by lower deposit costs and stable net interest income. According to the company, improved PPNR and lower cost of funds offset a decline in loan yields.

Did Meridian (MRBK) report any credit quality or provisioning changes in Q4 2025?

Provision for credit losses increased to $3.3 million, up $437k quarter-over-quarter. According to the company, this reflected higher net charge-offs and a macro model upgrade partially offset by lower baseline loss rates.

How did Meridian's (MRBK) mortgage and wealth segments perform in 2025?

Wealth management produced annual pre-tax income of $2.3 million with AUM up 7.8%; mortgage pre-tax income was $1.1 million. According to the company, mortgage revenue declined about $260k year-over-year but operations were streamlined for profitability.