Meridian Corporation Reports Revised First Quarter 2026 Results

Rhea-AI Summary

Meridian (Nasdaq: MRBK) reported revised Q1 2026 results on May 4, 2026 after a loan status change. Net income was $2.0 million, or $0.17 diluted EPS, down 72% from prior quarter. PPNR was $10.1 million and net interest margin improved to 3.82%. Provision for credit losses rose to $7.5 million; non-interest income declined $3.6 million. The board declared a $0.14 quarterly cash dividend payable May 11, 2026.

Positive

• Declared quarterly cash dividend of $0.14 per share payable May 11, 2026
• Net interest margin improved to 3.82% in Q1 2026
• Commercial loans, excluding leases, increased $14.1 million QoQ
• Total assets remained stable at $2.58 billion

Negative

• Net income fell 72% QoQ to $2.0 million
• Provision for credit losses increased $4.2 million to $7.5 million
• Total non-interest income decreased $3.6 million (33.7%) QoQ
• Non-performing loans rose to $58.7 million; NPL ratio 2.64%

News Market Reaction – MRBK

-3.23%

-3.23% Session close to close

In the May 5 session, MRBK declined 3.23%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement revises first-quarter 2026 results, cutting net income to $2.0M and diluted EPS to...

Analysis

This announcement revises first-quarter 2026 results, cutting net income to $2.0M and diluted EPS to $0.17 while confirming stronger pre-provision net revenue of $10.1M and an improved net interest margin of 3.82%. The key pressure points are a higher provision for credit losses of $7.5M, weaker non-interest income of $7.0M, and rising net charge-offs and non-performing loans. Investors may watch future quarters for credit trends, mortgage and SBA volumes, and dividend sustainability around the $0.14 payout.

Key Figures

Net income: $2.0M Diluted EPS: $0.17 Pre-provision net revenue (PPNR): $10.1M +5 more

8 metrics

Net income $2.0M Quarter ended March 31, 2026; down 72% from prior quarter

Diluted EPS $0.17 Quarter ended March 31, 2026

Pre-provision net revenue (PPNR) $10.1M Q1 2026; up 21% vs Q1 2025

Net interest margin 3.82% First quarter 2026 vs prior quarter

Provision for credit losses $7.5M Q1 2026; up from $3.3M in Q4 2025

Non-interest income $7.0M Q1 2026; down 33.7% from Q4 2025

Total assets $2.58B March 31, 2026 balance sheet

Quarterly dividend $0.14 per share Declared April 23, 2026; payable May 11, 2026

Historical Context

4 past events · Latest: Apr 27 (Positive)

Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 27	Board appointment	Positive	+4.3%	New director Ken Warriner added to Meridian and bank boards.
Apr 23	Q1 2026 earnings	Negative	-8.9%	Net income down QoQ with higher credit losses and lower non-interest income.
Apr 23	Director retirement	Neutral	+0.1%	Longtime director George Collier retires after 21 years of service.
Jan 29	Q4 2025 earnings	Positive	+3.7%	Stronger Q4 net income, higher PPNR and continued $0.14 dividend.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news flow shows earnings and dividend announcements drawing the largest price reactions, with generally aligned moves to the perceived tone of the news.

Recent Company History

Over the last several months, Meridian’s key catalysts have been earnings, dividends, and board changes. The fourth-quarter 2025 earnings and dividend release on Jan 29, 2026 coincided with a +3.72% move as net income reached $7.2 million and PPNR $12.6 million. The initial first-quarter 2026 earnings and dividend release on Apr 23, 2026 saw a -8.86% reaction as credit costs rose. Board retirement and appointment headlines in late April had modestly positive or flat impacts. Today’s revised Q1 2026 figures fit into this earnings-focused narrative by further updating those results.

Key Terms

pre-provision net revenue, net interest margin, provision for credit losses, non-interest income, +4 more

8 terms

pre-provision net revenue financial

"Pre-provision net revenue1 for the quarter was $10.1 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 improved to 3.82% for the first quarter of 2026..."

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.

provision for credit losses financial

"The overall provision for credit losses for the first quarter increased $4.2 million..."

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.

non-interest income financial

"Total non-interest income decreased $3.6 million, or 33.7%, quarter-over-quarter..."

Non-interest income is the money a bank or financial company earns from activities other than charging interest on loans, such as service fees, account charges, trading gains, and income from managing client investments. For investors, it matters because it diversifies a firm’s revenue stream—like a store that sells both products and offers repair services—making profits less tied to lending rates and helping stability when interest-driven income falls.

net charge-offs financial

"Net charge-offs increased to $7.8 million, or 0.35% of total average loans..."

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

non-performing loans financial

"Non-performing loans increased $3.6 million, to $58.7 million at March 31, 2026..."

Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.

allowance for credit losses financial

"The ratio of allowance for credit losses to total loans held for investment was 0.98%..."

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.

community bank leverage ratio financial

"The Community Bank Leverage Ratio for the Bank was 9.58% at March 31, 2026."

Community bank leverage ratio is a regulatory measure that compares a bank’s core capital (its safety cushion) to the size of its balance sheet, showing what share of assets is backed by tangible equity rather than borrowed money. Investors use it like a health check: a higher ratio means the bank has more buffer to absorb losses, support lending and dividends, and face fewer regulatory limits, while a lower ratio signals greater risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MALVERN, Pa., May 04, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation ("Meridian", "we", or the "Corporation") (Nasdaq: MRBK) today is reporting revised results for the first quarter of 2026, which revises the original results of operations reported in the Corporation’s press release dated April 23, 2026 due to the Corporation becoming aware of a loan status change from the lead participant bank subsequent to the release of the Corporation’s results on April 23, 2026. The revised results of operations reported in this release will be consistent with the financial information presented in the Corporation’s Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.

	Three Months Ended
(Dollars in thousands, except per share data)(Unaudited)	March 31, 2026			December 31, 2025			March 31, 2025
Income:
Net income	$	2,006		$	7,186		$	2,399
Diluted earnings per common share		0.17			0.61			0.21
Pre-provision net revenue (PPNR)(1)		10,081			12,584			8,357
(1) See Non-GAAP reconciliation in the Appendix

• Net income for the quarter ended March 31, 2026 was $2.0 million, or $0.17 per diluted share, down $5.2 million, or 72%, from prior quarter. 
  
• Pre-provision net revenue¹ for the quarter was $10.1 million, an improvement of $1.7 million, or 21%, from Q1'2025.
  
• Net interest margin improved to 3.82% for the first quarter of 2026 compared to the prior quarter, while the loan yield declined to 7.03%, and cost of funds declined to 3.04% over the same period.
  
• Return on average assets and return on average equity for the first quarter of 2026 were 0.32% and 4.02%, respectively.
  
• Total assets at March 31, 2026 were $2.6 billion, compared to $2.6 billion at December 31, 2025 and $2.5 billion at March 31, 2025.
  
• Commercial loans, excluding leases, increased $14.1 million, or 1% from prior quarter.
  
• On April 23, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026 to shareholders of record as of May 4, 2026.
  
  

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
	(Dollars in thousands, except per share data)
Income:
Net income	$	2,006			$	7,186			$	6,659			$	5,592			$	2,399
Basic earnings per common share		0.17				0.62				0.59				0.50				0.21
Diluted earnings per common share		0.17				0.61				0.58				0.49				0.21
Net interest income		23,202				23,627				23,116				21,159				19,776
Balance Sheet:
Total assets	$	2,576,581			$	2,561,995			$	2,541,130			$	2,510,938			$	2,528,888
Loans, net of fees and costs		2,181,575				2,170,600				2,162,845				2,108,250				2,071,675
Total deposits		2,169,960				2,158,128				2,131,116				2,110,374				2,128,742
Non-interest bearing deposits		243,458				245,377				239,614				237,042				323,485
Stockholders' equity		200,225				199,716				188,029				178,020				173,568
Balance Sheet Average Balances:
Total assets	$	2,574,268			$	2,588,357			$	2,534,565			$	2,491,625			$	2,420,571
Total interest earning assets		2,472,659				2,495,922				2,443,261				2,404,952				2,330,224
Loans, net of fees and costs		2,175,938				2,200,626				2,146,651				2,113,411				2,039,676
Total deposits		2,171,837				2,173,242				2,143,821				2,095,028				2,036,208
Non-interest bearing deposits		250,203				256,554				253,374				249,745				244,161
Stockholders' equity		202,577				192,799				183,242				176,945				174,734
Performance Ratios (Annualized):
Return on average assets		0.32	%			1.10	%			1.04	%			0.90	%			0.40	%
Return on average equity		4.02	%			14.79	%			14.42	%			12.68	%			5.57	%

Income Statement - First Quarter 2026 Compared to Fourth Quarter 2025

First quarter net income decreased $5.2 million, or 72.1%, to $2.0 million due largely to a decrease in non-interest income of $3.6 million, a decrease in net interest income of $425 thousand, and an increase of $4.2 million in the provision for credit losses, while non-interest expense decreased $1.5 million over the prior quarter. Income tax expense decreased $1.5 million over the prior quarter. 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)	March 31, 2026			December 31, 2025			$ Change				% Change			Change due to rate				Change due to volume
Interest income:
Cash and cash equivalents	$	398		$	348		$	50			14.4	%		$	(28	)		$	78
Investment securities - taxable		1,847			1,891			(44	)		(2.3	)%			(47	)			3
Investment securities - tax exempt (1)		396			396			—			—	%			—				—
Loans held for sale		338			500			(162	)		(32.4	)%			(16	)			(146	)
Loans held for investment		37,806			39,764			(1,958	)		(4.9	)%			(1,172	)			(786	)
Total loans		38,144			40,264			(2,120	)		(5.3	)%			(1,188	)			(932	)
Total interest income	$	40,785		$	42,899		$	(2,114	)		(4.9	)%		$	(1,263	)		$	(851	)
Interest expense:
Interest-bearing demand deposits	$	1,040		$	1,186		$	(146	)		(12.3	)%		$	(114	)		$	(32	)
Money market and savings deposits		7,070			7,942			(872	)		(11.0	)%			(844	)			(28	)
Time deposits		7,113			7,454			(341	)		(4.6	)%			(408	)			67
Total interest - bearing deposits		15,223			16,582			(1,359	)		(8.2	)%			(1,366	)			7
Borrowings		1,293			1,568			(275	)		(17.5	)%			6				(281	)
Subordinated debentures		994			1,049			(55	)		(5.2	)%			(52	)			(3	)
Total interest expense		17,510			19,199			(1,689	)		(8.8	)%			(1,412	)			(277	)
Net interest income differential	$	23,275		$	23,700		$	(425	)		(1.79	)%		$	149			$	(574	)
(1) Reflected on a tax-equivalent basis.

Interest income decreased $2.1 million quarter-over-quarter on a tax equivalent basis, driven by lower yields and average balances of interest earning assets. The yield on interest-earnings assets decreased 13 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets decreased by $23.3 million, impacting interest income by $851 thousand.

Average total loans, excluding residential loans for sale, decreased $24.7 million. The largest driver was a $26.7 million decrease in the average balance of residential loans held for investment due to the sale of mortgages in the prior quarter, along with a decrease in average leases of $4.5 million, and a decrease in SBA loan average balances of $4.0 million. These decreases were partially offset by increases in construction, commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $11.3 million on average.

Interest expense decreased $1.7 million, quarter-over-quarter, due to a decline in the cost of deposits and borrowings. Interest expense on total deposits decreased $1.4 million, interest expense on borrowings decreased $275 thousand, and interest expense on subordinated debentures decreased by $55 thousand as well. During the period, interest-bearing checking accounts decreased $3.4 million, time deposits increased $11.3 million, while money market and savings deposit balances decreased $3.0 million on average. Borrowings decreased $21.5 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 having declined 19 basis points.

Overall the net interest margin improved to 3.82%, compared to 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 first quarter increased $4.2 million to $7.5 million, from $3.3 million in the fourth quarter. The higher level of provision was largely due to a $4.2 million increase in net charge-offs resulting predominantly from collateral value depreciation in one non-performing commercial mortgage which led to a $3.9 million charge-off, combined with an increase in the baseline ACL and qualitative reserve factors on certain loan portfolios.

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, 2026				December 31, 2025				$ Change				% Change
Mortgage banking income	$	4,528			$	5,714			$	(1,186	)		(20.8	)%
Wealth management income		1,729				1,679				50			3.0	%
SBA loan income		150				1,285				(1,135	)		(88.3	)%
Earnings on investment in life insurance		272				248				24			9.7	%
Net loss on sale of MSRs		(159	)			(12	)			(147	)		1225.0	%
Net loss on sale of loans		—				(184	)			184			(100.0	)%
Net change in the fair value of derivative instruments		(51	)			197				(248	)		(125.9	)%
Net change in the fair value of loans held-for-sale		(380	)			112				(492	)		(439.3	)%
Net change in the fair value of loans held-for-investment		(39	)			86				(125	)		(145.3	)%
Net gain (loss) on hedging activity		18				(22	)			40			(181.8	)%
Net gain on sale of investments AFS		—				453				(453	)		(100.0	)%
Other		969				1,059				(90	)		(8.5	)%
Total non-interest income	$	7,037			$	10,615			$	(3,578	)		(33.7	)%

Total non-interest income decreased $3.6 million, or 33.7%, quarter-over-quarter largely due to a $1.2 million decrease in mortgage banking income, and a $1.1 million decline in SBA loan income. Despite a quarter-over-quarter increase of 9 basis points in the margin on mortgage banking, mortgage loan sales decreased by $40.6 million, or 20% from the prior quarter, resulting in a lower level of mortgage banking income for the quarter-ended March 31, 2026. In addition, mortgage segment related fair value and derivative & hedging items declined in total by $701 thousand quarter-over-quarter.

SBA loan income decreased $1.1 million as the volume of SBA loans sold was down $14.1 million to $6.7 million, for the quarter-ended March 31, 2026 compared to the quarter-ended December 31, 2025, while the gross margin on SBA loan sales was 8.5% for the quarter-ended March 31, 2026 compared to 7.4% for the quarter-ended December 31, 2025.

In the prior quarter we recorded a gain on sale of investment securities of $453 thousand, which was not repeated in the quarter ended March 31, 2026. Other non-interest income was down $90 thousand from the prior quarter due to smaller declines in several accounts including ATM, wire transfer and other customer account fees.

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, 2026			December 31, 2025			$ Change				% Change
Salaries and employee benefits	$	12,386		$	13,103		$	(717	)		(5.5	)%
Occupancy and equipment		1,183			1,210			(27	)		(2.2	)%
Professional fees		974			1,076			(102	)		(9.5	)%
Data processing and software		1,973			1,981			(8	)		(0.4	)%
Advertising and promotion		692			944			(252	)		(26.7	)%
Pennsylvania bank shares tax		258			224			34			15.2	%
Other		2,692			3,120			(428	)		(13.7	)%
Total non-interest expense	$	20,158		$	21,658		$	(1,500	)		(6.9	)%

Salaries and benefits overall decreased $717 thousand, primarily due to the variable nature of the mortgage segment along with timing of certain incentive expense, in addition to lower incentive compensation within the banking and wealth management segments compared to the previous quarter-end. Advertising and promotion costs decreased $252 thousand, reflecting a decrease in business development efforts and special events since year-end. Furthermore, other expense decreased $428 thousand mainly because OREO related activities in the prior quarter did not recur in the quarter-ended March 31, 2026.

Balance Sheet - March 31, 2026 Compared to December 31, 2025

Total assets increased $14.6 million, or 0.6%, to $2.6 billion as of March 31, 2026 from $2.6 billion as of December 31, 2025.

Portfolio loans grew $11.1 million, or 0.5% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $15.4 million, or 3.6%, construction loans increased $12.8 million, or 3.9%, while commercial mortgage loans decreased $8.9 million, or 1.0%, and SBA loan balances decreased $5.3 million, or 3.8%. Lease financings also decreased $4.7 million, or 10.2% from December 31, 2025, partially offsetting the above noted loan growth.

Total deposits increased $11.8 million, or 0.5% quarter-over-quarter, led by an increase of $13.8 million in interest-bearing deposits. Money market accounts and savings accounts decreased a combined $9.8 million, non-interest bearing accounts decreased $1.9 million or 0.8%, while interest bearing demand deposits decreased $209 thousand. While borrowings increased $3.5 million, or 3.0% quarter-over-quarter.

Total stockholders’ equity increased by $509 thousand from December 31, 2025, to $200.2 million as of March 31, 2026. Changes to equity for the quarter included net income of $2.0 million, an increase of $424 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.58% at March 31, 2026.

Asset Quality Summary

Non-performing loans increased $3.6 million, to $58.7 million at March 31, 2026 compared to $55.1 million at December 31, 2025, with increases coming from commercial mortgage, land development, and commercial non-performing loans, partially offset by a decrease in non-performing SBA loans, residential mortgage loans, and construction loans. Of the total non-performing loans, $23.9 million were SBA loans, with $12.9 million, or 54.0%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with slightly more than half, 53.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points. Due to the increase in non-performing loans, the ratio of non-performing loans to total loans as of March 31, 2026 increased to 2.64%, compared to 2.50% at December 31, 2025. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 2.06%. As of March 31, 2026 there were specific reserves of $2.8 million against individually evaluated loans, a decrease of $613 thousand from the level of specific reserves as of December 31, 2025.

Net charge-offs increased to $7.8 million, or 0.35% of total average loans for the quarter ended March 31, 2026, compared to net charge-offs of $3.5 million, or 0.16%, for the quarter ended December 31, 2025. First quarter charge-offs consisted of $3.9 million from a commercial mortgage loan, $2.5 million in SBA loans, $149 thousand in commercial loans, $856 thousand in finance receivables, and $745 thousand of small ticket equipment leases. Partially offsetting first quarter charge-offs were recoveries of $407 thousand, mainly related to leases.

The ratio of allowance for credit losses to total loans held for investment was 0.98% as of March 31, 2026, compared to 1.00% reported as of December 31, 2025, due to the increase in provision for credit losses discussed above, combined with portfolio loan growth being below 1% for the current quarter.

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, including the timing of third-party appraisals and loan valuations from lead financial institutions in which we are a loan participant; cyber-security concerns; rapid technological developments and changes, including the development and use of artificial intelligence in business processes, services, and products; 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; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the ongoing conflict in the Middle East, which could impact economic conditions in the United States; 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, 2025 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, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Earnings and Per Share Data:
Net income	$	2,006			$	7,186			$	6,659			$	5,592			$	2,399
Basic earnings per common share	$	0.17			$	0.62			$	0.59			$	0.50			$	0.21
Diluted earnings per common share	$	0.17			$	0.61			$	0.58			$	0.49			$	0.21
Common shares outstanding		11,874				11,826				11,517				11,297				11,285
Performance Ratios:
Return on average assets(2)		0.32	%			1.10	%			1.04	%			0.90	%			0.40	%
Return on average equity(2)		4.02				14.79				14.42				12.68				5.57
Net interest margin (tax-equivalent)(2)		3.82				3.77				3.77				3.54				3.46
Yield on earning assets (tax-equivalent)(2)		6.69				6.82				7.01				6.89				6.83
Cost of funds(2)		3.04				3.23				3.42				3.52				3.56
Efficiency ratio		66.66	%			63.25	%			65.15	%			65.82	%			69.16	%
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.35	%			0.16	%			0.09	%			0.17	%			0.14	%
Non-performing loans to total loans		2.64				2.50				2.53				2.35				2.49
Non-performing assets to total assets		2.51				2.38				2.32				2.14				2.07
Allowance for credit losses to:
Total loans and other finance receivables		0.97				0.99				1.01				0.99				1.01
Total loans and other finance receivables (excluding loans at fair value)(1)		0.98				1.00				1.01				1.00				1.01
Non-performing loans		36.23	%			39.18	%			39.37	%			41.26	%			39.63	%
Capital Ratios:
Book value per common share	$	16.86			$	16.89			$	16.33			$	15.76			$	15.38
Tangible book value per common share	$	16.58			$	16.59			$	16.02			$	15.44			$	15.06
Total equity/Total assets		7.77	%			7.80	%			7.40	%			7.09	%			6.86	%
Tangible common equity/Tangible assets - Corporation(1)		7.65				7.67				7.27				6.96				6.73
Tangible common equity/Tangible assets - Bank(1)		9.38				9.41				9.16				8.96				8.61
Tier 1 leverage ratio - Bank		9.58				9.50				9.41				9.32				9.30
Common tier 1 risk-based capital ratio - Bank		10.52				10.66				10.52				10.53				10.15
Tier 1 risk-based capital ratio - Bank		10.52				10.66				10.52				10.53				10.15
Total risk-based capital ratio - Bank		11.51	%			11.65	%			11.54	%			11.54	%			11.14	%
(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, 2026				December 31, 2025				March 31, 2025
Interest income:
Loans and other finance receivables, including fees	$	38,144			$	40,264			$	36,549
Securities - taxable		1,847				1,891				1,693
Securities - tax-exempt		323				323				313
Cash and cash equivalents		398				348				613
Total interest income		40,712				42,826				39,168
Interest expense:
Deposits		15,223				16,582				16,868
Borrowings and subordinated debentures		2,287				2,617				2,524
Total interest expense		17,510				19,199				19,392
Net interest income		23,202				23,627				19,776
Provision for credit losses		7,493				3,287				5,212
Net interest income after provision for credit losses		15,709				20,340				14,564
Non-interest income:
Mortgage banking income		4,528				5,714				3,393
Wealth management income		1,729				1,679				1,535
SBA loan income		150				1,285				748
Earnings on investment in life insurance		272				248				222
Net loss on sale of MSRs		(159	)			(12	)			(52	)
Net loss on sale of loans		—				(184	)			—
Net change in the fair value of derivative instruments		(51	)			197				149
Net change in the fair value of loans held-for-sale		(380	)			112				102
Net change in the fair value of loans held-for-investment		(39	)			86				170
Net gain (loss) on hedging activity		18				(22	)			21
Net gain on sale of investments AFS		—				453				—
Other		969				1,059				1,036
Total non-interest income		7,037				10,615				7,324
Non-interest expense:
Salaries and employee benefits		12,386				13,103				11,385
Occupancy and equipment		1,183				1,210				1,338
Professional fees		974				1,076				763
Data processing and software		1,973				1,981				1,479
Advertising and promotion		692				944				779
Pennsylvania bank shares tax		258				224				269
Other		2,692				3,120				2,730
Total non-interest expense		20,158				21,658				18,743
Income before income taxes		2,588				9,297				3,145
Income tax expense		582				2,111				746
Net income	$	2,006			$	7,186			$	2,399
Basic earnings per common share	$	0.17			$	0.62			$	0.21
Diluted earnings per common share	$	0.17			$	0.61			$	0.21
Basic weighted average shares outstanding		11,811				11,543				11,205
Diluted weighted average shares outstanding		12,153				11,771				11,446

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Assets:
Cash and due from banks	$	12,458			$	10,358			$	12,605			$	20,604			$	16,976
Interest-bearing deposits at other banks		15,811				25,420				27,384				29,570				113,620
Federal funds sold		—				—				—				—				629
Cash and cash equivalents		28,269				35,778				39,989				50,174				131,225
Securities available-for-sale, at fair value		196,012				193,457				194,268				187,902				185,221
Securities held-to-maturity, at amortized cost		32,494				32,544				32,593				32,642				32,720
Equity investments		2,137				2,166				2,150				2,130				2,126
Mortgage loans held for sale, at fair value		38,960				33,762				28,016				44,078				28,047
Loans and other finance receivables, net of fees and costs		2,181,575				2,170,600				2,162,845				2,108,250				2,071,675
Allowance for credit losses		(21,252	)			(21,573	)			(21,794	)			(20,851	)			(20,827	)
Loans and other finance receivables, net of the allowance for credit losses		2,160,323				2,149,027				2,141,051				2,087,399				2,050,848
Restricted investment in bank stock		7,699				7,811				8,350				9,162				8,369
Bank premises and equipment, net		12,298				12,402				12,413				12,320				12,028
Bank owned life insurance		30,959				30,687				30,421				30,175				29,935
Accrued interest receivable		11,015				10,724				10,944				10,334				10,345
OREO and other repossessed assets		6,009				5,997				3,714				3,148				249
Deferred income taxes		4,548				4,215				4,989				5,314				5,136
Servicing assets		3,694				3,932				3,845				3,658				4,284
Goodwill		899				899				899				899				899
Intangible assets		2,512				2,563				2,614				2,665				2,716
Other assets		38,753				36,031				24,874				28,938				24,740
Total assets	$	2,576,581			$	2,561,995			$	2,541,130			$	2,510,938			$	2,528,888
Liabilities:
Deposits:
Non-interest bearing	$	243,458			$	245,377			$	239,614			$	237,042			$	323,485
Interest bearing:
Interest checking		157,151				157,360				151,973				173,865				161,055
Money market and savings deposits		1,013,533				1,023,290				996,126				956,448				947,795
Time deposits		755,818				732,101				743,403				743,019				696,407
Total interest-bearing deposits		1,926,502				1,912,751				1,891,502				1,873,332				1,805,257
Total deposits		2,169,960				2,158,128				2,131,116				2,110,374				2,128,742
Borrowings		120,838				117,338				137,265				138,965				139,590
Subordinated debentures		49,675				49,853				49,822				49,792				49,761
Accrued interest payable		6,620				6,531				7,095				7,059				7,404
Other liabilities		29,263				30,429				27,803				26,728				29,823
Total liabilities		2,376,356				2,362,279				2,353,101				2,332,918				2,355,320
Stockholders’ equity:
Common stock		13,882				13,830				13,521				13,300				13,288
Surplus		90,885				90,352				85,122				82,184				82,026
Treasury stock		(26,079	)			(26,079	)			(26,079	)			(26,079	)			(26,079	)
Unearned common stock held by ESOP		(1,232	)			(1,232	)			(1,006	)			(1,006	)			(1,006	)
Retained earnings		128,472				128,124				122,376				117,132				112,952
Accumulated other comprehensive loss		(5,703	)			(5,279	)			(5,905	)			(7,511	)			(7,613	)
Total stockholders’ equity		200,225				199,716				188,029				178,020				173,568
Total liabilities and stockholders’ equity	$	2,576,581			$	2,561,995			$	2,541,130			$	2,510,938			$	2,528,888

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, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025
Interest income	$	40,712		$	42,826		$	43,109		$	41,211		$	39,168
Interest expense		17,510			19,199			19,993			20,052			19,392
Net interest income		23,202			23,627			23,116			21,159			19,776
Provision for credit losses		7,493			3,287			2,850			3,803			5,212
Non-interest income		7,037			10,615			9,953			11,288			7,324
Non-interest expense		20,158			21,658			21,546			21,357			18,743
Income before income tax expense		2,588			9,297			8,673			7,287			3,145
Income tax expense		582			2,111			2,014			1,695			746
Net Income	$	2,006		$	7,186		$	6,659		$	5,592		$	2,399
Basic weighted average shares outstanding		11,811			11,543			11,325			11,228			11,205
Basic earnings per common share	$	0.17		$	0.62		$	0.59		$	0.50		$	0.21
Diluted weighted average shares outstanding		12,153			11,771			11,540			11,392			11,446
Diluted earnings per common share	$	0.17		$	0.61		$	0.58		$	0.49		$	0.21

	Segment Information
	Three Months Ended March 31, 2026																Three Months Ended March 31, 2025
(dollars in thousands)	Bank				Wealth				Mortgage				Total				Bank				Wealth				Mortgage				Total
Net interest income	$	23,072			$	60			$	70			$	23,202			$	19,706			$	9			$	61			$	19,776
Provision for credit losses		7,493				—				—				7,493				5,212				—				—				5,212
Net interest income after provision		15,579				60				70				15,709				14,494				9				61				14,564
Non-interest income		1,398				1,729				3,910				7,037				1,912				1,535				3,877				7,324
Non-interest expense		13,957				978				5,223				20,158				12,758				818				5,167				18,743
Income before income taxes	$	3,020			$	811			$	(1,243	)		$	2,588			$	3,648			$	726			$	(1,229	)		$	3,145
Efficiency ratio		57	%			55	%			131	%			67	%			59	%			53	%			131	%			69	%

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, 2026				December 31, 2025				March 31, 2025
Income before income tax expense	$	2,588			$	9,297			$	3,145
Provision for credit losses		7,493				3,287				5,212
Pre-provision net revenue	$	10,081			$	12,584			$	8,357

	Pre-Provision Net Revenue Reconciliation
	Three Months Ended
(Dollars in thousands, except per share data, Unaudited)	March 31, 2026				December 31, 2025				March 31, 2025
Bank	$	10,513			$	11,771			$	8,860
Wealth		811				493				726
Mortgage		(1,243	)			320				(1,229	)
Pre-provision net revenue	$	10,081			$	12,584			$	8,357

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Allowance for credit losses (GAAP)	$	21,252			$	21,573			$	21,794			$	20,851			$	20,827
Loans and other finance receivables (GAAP)		2,181,575				2,170,600				2,162,845				2,108,250				2,071,675
Less: Loans at fair value		(14,090	)			(14,396	)			(14,454	)			(14,541	)			(14,182	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,167,485			$	2,156,204			$	2,148,391			$	2,093,709			$	2,057,493
ACL to loans and other finance receivables (GAAP)		0.97	%			0.99	%			1.01	%			0.99	%			1.01	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		0.98	%			1.00	%			1.01	%			1.00	%			1.01	%

	Tangible Common Equity Ratio Reconciliation - Corporation
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Total stockholders' equity (GAAP)	$	200,225			$	199,716			$	188,029			$	178,020			$	173,568
Less: Goodwill and intangible assets		(3,411	)			(3,462	)			(3,513	)			(3,564	)			(3,615	)
Tangible common equity (non-GAAP)		196,814				196,254				184,516				174,456				169,953
Total assets (GAAP)		2,576,581				2,561,995				2,541,130				2,510,938				2,528,888
Less: Goodwill and intangible assets		(3,411	)			(3,462	)			(3,513	)			(3,564	)			(3,615	)
Tangible assets (non-GAAP)	$	2,573,170			$	2,558,533			$	2,537,617			$	2,507,374			$	2,525,273
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)		7.65	%			7.67	%			7.27	%			6.96	%			6.73	%

	Tangible Common Equity Ratio Reconciliation - Bank
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Total stockholders' equity (GAAP)	$	244,621			$	244,064			$	236,038			$	228,127			$	220,768
Less: Goodwill and intangible assets		(3,411	)			(3,462	)			(3,513	)			(3,564	)			(3,615	)
Tangible common equity (non-GAAP)		241,210				240,602				232,525				224,563				217,153
Total assets (GAAP)		2,575,135				2,560,485				2,541,395				2,510,684				2,525,029
Less: Goodwill and intangible assets		(3,411	)			(3,462	)			(3,513	)			(3,564	)			(3,615	)
Tangible assets (non-GAAP)	$	2,571,724			$	2,557,023			$	2,537,882			$	2,507,120			$	2,521,414
Tangible common equity to tangible assets ratio - Bank (non-GAAP)		9.38	%			9.41	%			9.16	%			8.96	%			8.61	%
	Tangible Book Value Reconciliation
	March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
Book value per common share	$	16.86			$	16.89			$	16.33			$	15.76			$	15.38
Less: Impact of goodwill /intangible assets		0.28				0.30				0.31				0.32				0.32
Tangible book value per common share	$	16.58			$	16.59			$	16.02			$	15.44			$	15.06

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

FAQ

Why did Meridian (MRBK) revise its Q1 2026 results on May 4, 2026?

The company revised results after learning of a loan status change from the lead participant bank. According to the company, the change occurred subsequent to the April 23, 2026 release and required adjustments to the quarter's reported results and Form 10-Q.

What were Meridian's reported Q1 2026 net income and EPS for MRBK?

Meridian reported Q1 2026 net income of $2.0 million, or $0.17 diluted EPS. According to the company, this reflected lower non-interest income, slightly lower net interest income, and a higher provision for credit losses versus the prior quarter.

How did Meridian's credit costs change in Q1 2026 for MRBK?

Provision for credit losses increased to $7.5 million in Q1 2026, rising $4.2 million from Q4 2025. According to the company, higher net charge-offs—including a $3.9 million commercial mortgage charge-off—and reserve factor increases drove the change.

What drove the decline in Meridian's non-interest income in Q1 2026 (MRBK)?

Non-interest income fell $3.6 million, or 33.7%, quarter-over-quarter largely due to lower mortgage banking and SBA loan income. According to the company, mortgage loan sales declined $40.6 million and SBA loan sale volume dropped by $14.1 million.

Did Meridian (MRBK) change its dividend after the Q1 2026 revision?

No—Meridian's board declared the previously announced quarterly cash dividend of $0.14 per common share. According to the company, the dividend is payable May 11, 2026 to shareholders of record as of May 4, 2026.