Meridian Corporation Reports Second Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share
Meridian Corporation (Nasdaq: MRBK) reported strong Q2 2025 financial results with net income of $5.6 million, or $0.49 per diluted share, representing a 133% increase from the previous quarter. The company demonstrated significant improvements with pre-provision net revenue of $11.1 million, up 57% year-over-year.
Key performance metrics include a net interest margin of 3.54%, loan yield improvement to 7.24%, and return on average equity of 12.68%. Total assets stood at $2.5 billion, with commercial loans growing by $33.2 million (2%) from the previous quarter. The Board declared a quarterly cash dividend of $0.125 per share, payable August 18, 2025.
Notable improvements include increased mortgage banking income, higher SBA loan sales, and strong wealth management performance, though the company faces challenges with historically high nonperforming loans.
Meridian Corporation (Nasdaq: MRBK) ha annunciato risultati finanziari solidi per il secondo trimestre del 2025 con un utile netto di 5,6 milioni di dollari, pari a 0,49 dollari per azione diluita, registrando un aumento del 133% rispetto al trimestre precedente. L'azienda ha mostrato miglioramenti significativi con un ricavo netto ante accantonamenti di 11,1 milioni di dollari, in crescita del 57% su base annua.
I principali indicatori di performance includono un margine di interesse netto del 3,54%, un miglioramento del rendimento dei prestiti al 7,24% e un ritorno sul patrimonio netto medio del 12,68%. Gli attivi totali ammontavano a 2,5 miliardi di dollari, con un aumento dei prestiti commerciali di 33,2 milioni di dollari (2%) rispetto al trimestre precedente. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale in contanti di 0,125 dollari per azione, pagabile il 18 agosto 2025.
I miglioramenti degni di nota includono un incremento dei ricavi dalla gestione dei mutui, maggiori vendite di prestiti SBA e una solida performance nella gestione patrimoniale, nonostante l'azienda debba affrontare sfide legate a un livello storicamente elevato di prestiti non performanti.
Meridian Corporation (Nasdaq: MRBK) reportó sólidos resultados financieros en el segundo trimestre de 2025 con un ingreso neto de 5,6 millones de dólares, o 0,49 dólares por acción diluida, lo que representa un aumento del 133% respecto al trimestre anterior. La compañía mostró mejoras significativas con un ingreso neto antes de provisiones de 11,1 millones de dólares, un incremento del 57% interanual.
Los indicadores clave incluyen un margen de interés neto del 3,54%, una mejora en el rendimiento de los préstamos al 7,24% y un retorno sobre el capital promedio del 12,68%. Los activos totales alcanzaron los 2,5 mil millones de dólares, con un crecimiento en préstamos comerciales de 33,2 millones de dólares (2%) respecto al trimestre anterior. La Junta declaró un dividendo trimestral en efectivo de 0,125 dólares por acción, pagadero el 18 de agosto de 2025.
Las mejoras destacadas incluyen un aumento en los ingresos por banca hipotecaria, mayores ventas de préstamos SBA y un sólido desempeño en la gestión patrimonial, aunque la compañía enfrenta desafíos debido a un nivel históricamente alto de préstamos morosos.
Meridian Corporation (나스닥: MRBK)는 2025년 2분기에 순이익 560만 달러, 희석 주당순이익 0.49달러를 기록하며 전 분기 대비 133% 증가한 강력한 재무 성과를 보고했습니다. 회사는 충당금 전 순수익 1,110만 달러로 전년 대비 57% 증가하는 등 상당한 개선을 보였습니다.
주요 성과 지표로는 순이자마진 3.54%, 대출 수익률 7.24%로 개선, 평균 자기자본이익률 12.68%가 포함됩니다. 총 자산은 25억 달러였으며, 상업용 대출은 전 분기 대비 3,320만 달러(2%) 증가했습니다. 이사회는 주당 0.125달러 분기 현금 배당금을 선언했으며, 2025년 8월 18일 지급될 예정입니다.
주목할 만한 개선 사항으로는 모기지 뱅킹 수입 증가, SBA 대출 판매 증가, 강력한 자산 관리 실적이 있으나, 회사는 역사적으로 높은 부실 대출 문제에 직면해 있습니다.
Meridian Corporation (Nasdaq : MRBK) a annoncé de solides résultats financiers pour le deuxième trimestre 2025 avec un bénéfice net de 5,6 millions de dollars, soit 0,49 dollar par action diluée, représentant une augmentation de 133 % par rapport au trimestre précédent. La société a enregistré des améliorations significatives avec un revenu net avant provisions de 11,1 millions de dollars, en hausse de 57 % sur un an.
Les indicateurs clés de performance comprennent une marge d'intérêt nette de 3,54 %, une amélioration du rendement des prêts à 7,24 % et un retour sur fonds propres moyen de 12,68 %. L'actif total s'élevait à 2,5 milliards de dollars, avec une croissance des prêts commerciaux de 33,2 millions de dollars (2 %) par rapport au trimestre précédent. Le conseil d'administration a déclaré un dividende trimestriel en espèces de 0,125 dollar par action, payable le 18 août 2025.
Parmi les améliorations notables figurent une augmentation des revenus bancaires hypothécaires, une hausse des ventes de prêts SBA et une solide performance en gestion de patrimoine, bien que la société doive faire face à des défis liés à un niveau historiquement élevé de prêts non performants.
Meridian Corporation (Nasdaq: MRBK) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 5,6 Millionen US-Dollar bzw. 0,49 US-Dollar pro verwässerter Aktie, was einer Steigerung von 133 % gegenüber dem Vorquartal entspricht. Das Unternehmen verzeichnete deutliche Verbesserungen mit einem Nettoeinkommen vor Rückstellungen von 11,1 Millionen US-Dollar, ein Anstieg von 57 % im Jahresvergleich.
Wichtige Leistungskennzahlen umfassen eine Nettozinsmarge von 3,54 %, eine Verbesserung der Darlehensrendite auf 7,24 % und eine Eigenkapitalrendite von 12,68 %. Die Gesamtaktiva beliefen sich auf 2,5 Milliarden US-Dollar, wobei die gewerblichen Kredite im Vergleich zum Vorquartal um 33,2 Millionen US-Dollar (2 %) zunahmen. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,125 US-Dollar je Aktie, zahlbar am 18. August 2025.
Bemerkenswerte Verbesserungen umfassen gestiegene Erträge aus dem Hypothekengeschäft, höhere Verkäufe von SBA-Darlehen und eine starke Vermögensverwaltungsleistung, obwohl das Unternehmen mit historisch hohen notleidenden Krediten zu kämpfen hat.
- Net income increased 133% quarter-over-quarter to $5.6 million
- Pre-provision net revenue improved 57% year-over-year to $11.1 million
- Commercial loans grew by $33.2 million (2%) from previous quarter
- Net interest margin improved to 3.54%
- Mortgage banking income increased by $2.4 million (69.8%)
- SBA loan sales volume increased by $27.4 million
- Nonperforming loans remain historically high at $50.5 million
- Non-interest expense increased by $2.6 million (13.9%)
- Non-interest bearing deposits decreased by $86.4 million
- SBA loan gross margin declined to 6.2% from 8.7% in previous quarter
Insights
Meridian's Q2 2025 shows strong recovery with 133% earnings growth, improved margins, and stable asset quality despite higher non-performing loans.
Meridian Corporation has delivered impressive Q2 2025 results with net income of
The company's pre-provision net revenue (PPNR) reached
Commercial loan growth of
The improvement in earnings was multi-faceted: net interest income increased by
Credit quality shows signs of stabilization with non-performing loans decreasing slightly to
The bank's efficiency metrics improved with ROA reaching
The deposit base appears stable at
Capital levels remain adequate with the Community Bank Leverage Ratio at
MALVERN, Pa., July 24, 2025 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:
| Three Months Ended | ||||||||
| (Dollars in thousands, except per share data) (Unaudited) | June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||
| Income: | ||||||||
| Net income | $ | 5,592 | $ | 2,399 | $ | 3,326 | ||
| Diluted earnings per common share | 0.49 | 0.21 | 0.30 | |||||
| Pre-provision net revenue (PPNR) (1) | 11,090 | 8,357 | 7,072 | |||||
| (1) See Non-GAAP reconciliation in the Appendix | ||||||||
- Net income for the quarter ended June 30, 2025 was
$5.6 million , or$0.49 per diluted share, up$3.2 million , or133% , from prior quarter. - Pre-provision net revenue1 for the quarter was
$11.1 million , an improvement of$4.0 million , or57% . from Q2'2024. - Net interest margin was
3.54% for the second quarter of 2025, while loan yield improved to7.24% , from prior quarter. - Return on average assets and return on average equity for the second quarter of 2025 were
0.90% and12.68% , respectively. - Total assets at June 30, 2025 were
$2.5 billion , compared to$2.5 billion at March 31, 2025 and$2.4 billion at June 30, 2024. - Commercial loans, excluding leases, increased
$33.2 million , or2% from prior quarter. - On July 24, 2025, the Board of Directors declared a quarterly cash dividend of
$0.12 5 per common share, payable August 18, 2025 to shareholders of record as of August 11, 2025.
Christopher J. Annas, Chairman and CEO commented:
"Meridian’s second quarter 2025 earnings of
Meridian Wealth Partners continued its solid performance with pre-tax income of
Our principal Philadelphia metro market is healthy and vibrant, and we have not yet seen the impact of economic uncertainties. We are excited about our market penetration in all segments, and believe this will propel us to greater performance."
Select Condensed Financial Information
| As of or for the three months ended (Unaudited) | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Income: | |||||||||||||||||||
| Net income | $ | 5,592 | $ | 2,399 | $ | 5,600 | $ | 4,743 | $ | 3,326 | |||||||||
| Basic earnings per common share | 0.50 | 0.21 | 0.50 | 0.43 | 0.30 | ||||||||||||||
| Diluted earnings per common share | 0.49 | 0.21 | 0.49 | 0.42 | 0.30 | ||||||||||||||
| Net interest income | 21,159 | 19,776 | 19,299 | 18,242 | 16,846 | ||||||||||||||
| Balance Sheet: | |||||||||||||||||||
| Total assets | $ | 2,510,938 | $ | 2,528,888 | $ | 2,385,867 | $ | 2,387,721 | $ | 2,351,584 | |||||||||
| Loans, net of fees and costs | 2,108,250 | 2,071,675 | 2,030,437 | 2,008,396 | 1,988,535 | ||||||||||||||
| Total deposits | 2,110,374 | 2,128,742 | 2,005,368 | 1,978,927 | 1,915,436 | ||||||||||||||
| Non-interest bearing deposits | 237,042 | 323,485 | 240,858 | 237,207 | 224,040 | ||||||||||||||
| Stockholders' equity | 178,020 | 173,568 | 171,522 | 167,450 | 162,382 | ||||||||||||||
| Balance Sheet Average Balances: | |||||||||||||||||||
| Total assets | $ | 2,491,627 | $ | 2,420,571 | $ | 2,434,270 | $ | 2,373,261 | $ | 2,319,295 | |||||||||
| Total interest earning assets | 2,404,952 | 2,330,224 | 2,342,651 | 2,277,523 | 2,222,177 | ||||||||||||||
| Loans, net of fees and costs | 2,113,411 | 2,039,676 | 2,029,739 | 1,997,574 | 1,972,740 | ||||||||||||||
| Total deposits | 2,095,028 | 2,036,208 | 2,043,505 | 1,960,145 | 1,919,954 | ||||||||||||||
| Non-interest bearing deposits | 249,745 | 244,161 | 259,118 | 246,310 | 229,040 | ||||||||||||||
| Stockholders' equity | 176,946 | 174,734 | 171,214 | 165,309 | 162,119 | ||||||||||||||
| Performance Ratios (Annualized): | |||||||||||||||||||
| Return on average assets | 0.90 | % | 0.40 | % | 0.92 | % | 0.80 | % | 0.58 | % | |||||||||
| Return on average equity | 12.68 | % | 5.57 | % | 13.01 | % | 11.41 | % | 8.25 | % | |||||||||
Income Statement - Second Quarter 2025 Compared to First Quarter 2025
Second quarter net income increased
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) | June 30, 2025 | March 31, 2025 | $ Change | % Change | Change due to rate | Change due to volume | ||||||||||||||
| Interest income: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 427 | $ | 613 | $ | (186 | ) | (30.3 | )% | $ | 15 | $ | (201 | ) | ||||||
| Investment securities - taxable | 1,792 | 1,693 | 99 | 5.8 | % | (10 | ) | 109 | ||||||||||||
| Investment securities - tax exempt (1) | 364 | 387 | (23 | ) | (5.9 | )% | (21 | ) | (2 | ) | ||||||||||
| Loans held for sale | 495 | 333 | 162 | 48.6 | % | (15 | ) | 177 | ||||||||||||
| Loans held for investment (1) | 38,204 | 36,218 | 1,986 | 5.5 | % | 320 | 1,666 | |||||||||||||
| Total loans | 38,699 | 36,551 | 2,148 | 5.9 | % | 305 | 1,843 | |||||||||||||
| Total interest income | $ | 41,282 | $ | 39,244 | $ | 2,038 | 5.2 | % | $ | 289 | $ | 1,749 | ||||||||
| Interest expense: | ||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,354 | $ | 1,229 | $ | 125 | 10.2 | % | $ | (51 | ) | $ | 176 | |||||||
| Money market and savings deposits | 8,097 | 7,808 | 289 | 3.7 | % | 65 | 224 | |||||||||||||
| Time deposits | 7,850 | 7,831 | 19 | 0.2 | % | (170 | ) | 189 | ||||||||||||
| Total interest - bearing deposits | 17,301 | 16,868 | 433 | 2.6 | % | (156 | ) | 589 | ||||||||||||
| Borrowings | 1,672 | 1,469 | 203 | 13.8 | % | 10 | 193 | |||||||||||||
| Subordinated debentures | 1,079 | 1,055 | 24 | 2.3 | % | 22 | 2 | |||||||||||||
| Total interest expense | 20,052 | 19,392 | 660 | 3.4 | % | (124 | ) | 784 | ||||||||||||
| Net interest income differential | $ | 21,230 | $ | 19,852 | $ | 1,378 | 6.94 | % | $ | 413 | $ | 965 | ||||||||
| (1) Reflected on a tax-equivalent basis. | ||||||||||||||||||||
Interest income increased
Average total loans, excluding residential loans for sale, increased
Interest expense increased
Overall the net interest margin increased 8 basis points to
Provision for Credit Losses
The overall provision for credit losses for the second quarter decreased
Non-interest income
The following table presents the components of non-interest income for the periods indicated:
| Three Months Ended | ||||||||||||||
| (Dollars in thousands) | June 30, 2025 | March 31, 2025 | $ Change | % Change | ||||||||||
| Mortgage banking income | $ | 5,762 | $ | 3,393 | $ | 2,369 | 69.8 | % | ||||||
| Wealth management income | 1,492 | 1,535 | (43 | ) | (2.8 | )% | ||||||||
| SBA loan income | 1,988 | 748 | 1,240 | 165.8 | % | |||||||||
| Earnings on investment in life insurance | 240 | 222 | 18 | 8.1 | % | |||||||||
| Net gain (loss) on sale of MSRs | 467 | (52 | ) | 519 | (998.1 | )% | ||||||||
| Net change in the fair value of derivative instruments | (102 | ) | 149 | (251 | ) | (168.5 | )% | |||||||
| Net change in the fair value of loans held-for-sale | 171 | 102 | 69 | 67.6 | % | |||||||||
| Net change in the fair value of loans held-for-investment | 190 | 170 | 20 | 11.8 | % | |||||||||
| Net gain (loss) on hedging activity | 16 | 21 | (5 | ) | (23.8 | )% | ||||||||
| Other | 1,064 | 1,036 | 28 | 2.7 | % | |||||||||
| Total non-interest income | $ | 11,288 | $ | 7,324 | $ | 3,964 | 54.1 | % | ||||||
Total non-interest income increased
SBA loan income increased
Non-interest expense
The following table presents the components of non-interest expense for the periods indicated:
| Three Months Ended | ||||||||||||
| (Dollars in thousands) | June 30, 2025 | March 31, 2025 | $ Change | % Change | ||||||||
| Salaries and employee benefits | $ | 13,179 | $ | 11,385 | $ | 1,794 | 15.8 | % | ||||
| Occupancy and equipment | 1,037 | 1,338 | (301 | ) | (22.5 | )% | ||||||
| Professional fees | 1,164 | 763 | 401 | 52.6 | % | |||||||
| Data processing and software | 1,706 | 1,479 | 227 | 15.3 | % | |||||||
| Advertising and promotion | 1,277 | 779 | 498 | 63.9 | % | |||||||
| Pennsylvania bank shares tax | 269 | 269 | — | — | % | |||||||
| Other | 2,725 | 2,730 | (5 | ) | (0.2 | )% | ||||||
| Total non-interest expense | $ | 21,357 | $ | 18,743 | $ | 2,614 | 13.9 | % | ||||
Overall salaries and benefits increased
Balance Sheet - June 30, 2025 Compared to March 31, 2025
Total assets decreased
Portfolio loans grew
Total deposits decreased
Total stockholders’ equity increased by
Asset Quality Summary
There was a positive improvement in the level of non-performing loans in the second quarter as they decreased
Net charge-offs increased to
The ratio of allowance for credit losses to total loans held for investment was
About Meridian Corporation
Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.
| MERIDIAN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| FINANCIAL RATIOS (Unaudited) | |||||||||||||||||||
| (Dollar amounts and shares in thousands, except per share amounts) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Earnings and Per Share Data: | |||||||||||||||||||
| Net income | $ | 5,592 | $ | 2,399 | $ | 5,600 | $ | 4,743 | $ | 3,326 | |||||||||
| Basic earnings per common share | $ | 0.50 | $ | 0.21 | $ | 0.50 | $ | 0.43 | $ | 0.30 | |||||||||
| Diluted earnings per common share | $ | 0.49 | $ | 0.21 | $ | 0.49 | $ | 0.42 | $ | 0.30 | |||||||||
| Common shares outstanding | 11,297 | 11,285 | 11,240 | 11,229 | 11,191 | ||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Return on average assets (2) | 0.90 | % | 0.40 | % | 0.92 | % | 0.80 | % | 0.58 | % | |||||||||
| Return on average equity (2) | 12.68 | 5.57 | 13.01 | 11.41 | 8.25 | ||||||||||||||
| Net interest margin (tax-equivalent) (2) | 3.54 | 3.46 | 3.29 | 3.20 | 3.06 | ||||||||||||||
| Yield on earning assets (tax-equivalent) (2) | 6.89 | 6.83 | 6.81 | 7.06 | 6.98 | ||||||||||||||
| Cost of funds (2) | 3.52 | 3.56 | 3.71 | 4.05 | 4.10 | ||||||||||||||
| Efficiency ratio | 65.82 | % | 69.16 | % | 65.72 | % | 70.67 | % | 72.89 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.17 | % | 0.14 | % | 0.34 | % | 0.11 | % | 0.20 | % | |||||||||
| Non-performing loans to total loans | 2.35 | 2.49 | 2.19 | 2.20 | 1.84 | ||||||||||||||
| Non-performing assets to total assets | 2.14 | 2.07 | 1.90 | 1.97 | 1.68 | ||||||||||||||
| Allowance for credit losses to: | |||||||||||||||||||
| Total loans and other finance receivables | 0.99 | 1.01 | 0.91 | 1.09 | 1.09 | ||||||||||||||
| Total loans and other finance receivables (excluding loans at fair value) (1) | 1.00 | 1.01 | 0.91 | 1.10 | 1.10 | ||||||||||||||
| Non-performing loans | 41.26 | % | 39.90 | % | 40.86 | % | 48.66 | % | 57.66 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Book value per common share | $ | 15.76 | $ | 15.38 | $ | 15.26 | $ | 14.91 | $ | 14.51 | |||||||||
| Tangible book value per common share | $ | 15.44 | $ | 15.06 | $ | 14.93 | $ | 14.58 | $ | 14.17 | |||||||||
| Total equity/Total assets | 7.09 | % | 6.86 | % | 7.19 | % | 7.01 | % | 6.91 | % | |||||||||
| Tangible common equity/Tangible assets - Corporation (1) | 6.96 | 6.73 | 7.05 | 6.87 | 6.76 | ||||||||||||||
| Tangible common equity/Tangible assets - Bank (1) | 8.96 | 8.61 | 9.06 | 8.95 | 8.85 | ||||||||||||||
| Tier 1 leverage ratio - Bank | 9.32 | 9.30 | 9.21 | 9.32 | 9.33 | ||||||||||||||
| Common tier 1 risk-based capital ratio - Bank | 10.53 | 10.15 | 10.33 | 10.17 | 9.84 | ||||||||||||||
| Tier 1 risk-based capital ratio - Bank | 10.53 | 10.15 | 10.33 | 10.17 | 9.84 | ||||||||||||||
| Total risk-based capital ratio - Bank | 11.54 | % | 11.14 | % | 11.20 | % | 11.22 | % | 10.84 | % | |||||||||
| (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 | Six Months Ended | |||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Loans and other finance receivables, including fees | $ | 38,697 | $ | 36,549 | $ | 36,486 | $ | 75,246 | $ | 71,825 | ||||||||
| Securities - taxable | 1,792 | 1,693 | 1,324 | 3,485 | 2,575 | |||||||||||||
| Securities - tax-exempt | 295 | 313 | 324 | 608 | 649 | |||||||||||||
| Cash and cash equivalents | 427 | 613 | 331 | 1,040 | 631 | |||||||||||||
| Total interest income | 41,211 | 39,168 | 38,465 | 80,379 | 75,680 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Deposits | 17,301 | 16,868 | 18,991 | 34,169 | 36,383 | |||||||||||||
| Borrowings and subordinated debentures | 2,751 | 2,524 | 2,628 | 5,275 | 5,842 | |||||||||||||
| Total interest expense | 20,052 | 19,392 | 21,619 | 39,444 | 42,225 | |||||||||||||
| Net interest income | 21,159 | 19,776 | 16,846 | 40,935 | 33,455 | |||||||||||||
| Provision for credit losses | 3,803 | 5,212 | 2,680 | 9,015 | 5,546 | |||||||||||||
| Net interest income after provision for credit losses | 17,356 | 14,564 | 14,166 | 31,920 | 27,909 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Mortgage banking income | 5,762 | 3,393 | 5,420 | 9,155 | 9,054 | |||||||||||||
| Wealth management income | 1,492 | 1,535 | 1,444 | 3,027 | 2,761 | |||||||||||||
| SBA loan income | 1,988 | 748 | 785 | 2,736 | 1,771 | |||||||||||||
| Earnings on investment in life insurance | 240 | 222 | 215 | 462 | 422 | |||||||||||||
| Net gain (loss) on sale of MSRs | 467 | (52 | ) | — | 415 | — | ||||||||||||
| Net change in the fair value of derivative instruments | (102 | ) | 149 | 203 | 47 | 278 | ||||||||||||
| Net change in the fair value of loans held-for-sale | 171 | 102 | (29 | ) | 273 | (31 | ) | |||||||||||
| Net change in the fair value of loans held-for-investment | 190 | 170 | (24 | ) | 360 | (199 | ) | |||||||||||
| Net gain (loss) on hedging activity | 16 | 21 | (63 | ) | 37 | (82 | ) | |||||||||||
| Other | 1,064 | 1,036 | 1,293 | 2,100 | 3,254 | |||||||||||||
| Total non-interest income | 11,288 | 7,324 | 9,244 | 18,612 | 17,228 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Salaries and employee benefits | 13,179 | 11,385 | 11,437 | 24,564 | 22,010 | |||||||||||||
| Occupancy and equipment | 1,037 | 1,338 | 1,230 | 2,375 | 2,463 | |||||||||||||
| Professional fees | 1,164 | 763 | 1,029 | 1,927 | 2,527 | |||||||||||||
| Data processing and software | 1,706 | 1,479 | 1,506 | 3,185 | 3,038 | |||||||||||||
| Advertising and promotion | 1,277 | 779 | 989 | 2,056 | 1,737 | |||||||||||||
| Pennsylvania bank shares tax | 269 | 269 | 274 | 538 | 548 | |||||||||||||
| Other | 2,725 | 2,730 | 2,553 | 5,455 | 4,869 | |||||||||||||
| Total non-interest expense | 21,357 | 18,743 | 19,018 | 40,100 | 37,192 | |||||||||||||
| Income before income taxes | 7,287 | 3,145 | 4,392 | 10,432 | 7,945 | |||||||||||||
| Income tax expense | 1,695 | 746 | 1,066 | 2,441 | 1,943 | |||||||||||||
| Net income | $ | 5,592 | $ | 2,399 | $ | 3,326 | $ | 7,991 | $ | 6,002 | ||||||||
| Basic earnings per common share | $ | 0.50 | $ | 0.21 | $ | 0.30 | $ | 0.71 | $ | 0.54 | ||||||||
| Diluted earnings per common share | $ | 0.49 | $ | 0.21 | $ | 0.30 | $ | 0.70 | $ | 0.54 | ||||||||
| Basic weighted average shares outstanding | 11,228 | 11,205 | 11,096 | 11,215 | 11,092 | |||||||||||||
| Diluted weighted average shares outstanding | 11,392 | 11,446 | 11,150 | 11,415 | 11,178 | |||||||||||||
| MERIDIAN CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) | |||||||||||||||||||
| (Dollar amounts and shares in thousands, except per share amounts) | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Assets: | |||||||||||||||||||
| Cash and due from banks | $ | 20,604 | $ | 16,976 | $ | 5,598 | $ | 12,542 | $ | 8,457 | |||||||||
| Interest-bearing deposits at other banks | 29,570 | 113,620 | 21,864 | 19,805 | 15,601 | ||||||||||||||
| Federal funds sold | — | 629 | — | — | — | ||||||||||||||
| Cash and cash equivalents | 50,174 | 131,225 | 27,462 | 32,347 | 24,058 | ||||||||||||||
| Securities available-for-sale, at fair value | 187,902 | 185,221 | 174,304 | 171,568 | 159,141 | ||||||||||||||
| Securities held-to-maturity, at amortized cost | 32,642 | 32,720 | 33,771 | 33,833 | 35,089 | ||||||||||||||
| Equity investments | 2,130 | 2,126 | 2,086 | 2,166 | 2,088 | ||||||||||||||
| Mortgage loans held for sale, at fair value | 44,078 | 28,047 | 32,413 | 46,602 | 54,278 | ||||||||||||||
| Loans and other finance receivables, net of fees and costs | 2,108,250 | 2,071,675 | 2,030,437 | 2,008,396 | 1,988,535 | ||||||||||||||
| Allowance for credit losses | (20,851 | ) | (20,827 | ) | (18,438 | ) | (21,965 | ) | (21,703 | ) | |||||||||
| Loans and other finance receivables, net of the allowance for credit losses | 2,087,399 | 2,050,848 | 2,011,999 | 1,986,431 | 1,966,832 | ||||||||||||||
| Restricted investment in bank stock | 9,162 | 8,369 | 7,753 | 8,542 | 10,044 | ||||||||||||||
| Bank premises and equipment, net | 12,320 | 12,028 | 12,151 | 12,807 | 13,114 | ||||||||||||||
| Bank owned life insurance | 30,175 | 29,935 | 29,712 | 29,489 | 29,267 | ||||||||||||||
| Accrued interest receivable | 10,334 | 10,345 | 9,958 | 10,012 | 9,973 | ||||||||||||||
| OREO and other repossessed assets | 3,148 | 249 | 276 | 1,967 | 1,967 | ||||||||||||||
| Deferred income taxes | 5,314 | 5,136 | 4,669 | 3,537 | 3,950 | ||||||||||||||
| Servicing assets | 3,658 | 4,284 | 4,382 | 4,364 | 11,341 | ||||||||||||||
| Servicing assets held for sale | — | — | — | 6,609 | — | ||||||||||||||
| Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||
| Intangible assets | 2,665 | 2,716 | 2,767 | 2,818 | 2,869 | ||||||||||||||
| Other assets | 28,938 | 24,740 | 31,265 | 33,730 | 26,674 | ||||||||||||||
| Total assets | $ | 2,510,938 | $ | 2,528,888 | $ | 2,385,867 | $ | 2,387,721 | $ | 2,351,584 | |||||||||
| Liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Non-interest bearing | $ | 237,042 | $ | 323,485 | $ | 240,858 | $ | 237,207 | $ | 224,040 | |||||||||
| Interest bearing: | |||||||||||||||||||
| Interest checking | 173,865 | 161,055 | 141,439 | 133,429 | 130,062 | ||||||||||||||
| Money market and savings deposits | 956,448 | 947,795 | 913,536 | 822,837 | 787,479 | ||||||||||||||
| Time deposits | 743,019 | 696,407 | 709,535 | 785,454 | 773,855 | ||||||||||||||
| Total interest-bearing deposits | 1,873,332 | 1,805,257 | 1,764,510 | 1,741,720 | 1,691,396 | ||||||||||||||
| Total deposits | 2,110,374 | 2,128,742 | 2,005,368 | 1,978,927 | 1,915,436 | ||||||||||||||
| Borrowings | 138,965 | 139,590 | 124,471 | 144,880 | 187,260 | ||||||||||||||
| Subordinated debentures | 49,792 | 49,761 | 49,743 | 49,928 | 49,897 | ||||||||||||||
| Accrued interest payable | 7,059 | 7,404 | 6,860 | 7,017 | 7,709 | ||||||||||||||
| Other liabilities | 26,728 | 29,823 | 27,903 | 39,519 | 28,900 | ||||||||||||||
| Total liabilities | 2,332,918 | 2,355,320 | 2,214,345 | 2,220,271 | 2,189,202 | ||||||||||||||
| Stockholders’ equity: | |||||||||||||||||||
| Common stock | 13,300 | 13,288 | 13,243 | 13,232 | 13,194 | ||||||||||||||
| Surplus | 82,184 | 82,026 | 81,545 | 81,002 | 80,639 | ||||||||||||||
| Treasury stock | (26,079 | ) | (26,079 | ) | (26,079 | ) | (26,079 | ) | (26,079 | ) | |||||||||
| Unearned common stock held by ESOP | (1,006 | ) | (1,006 | ) | (1,006 | ) | (1,204 | ) | (1,204 | ) | |||||||||
| Retained earnings | 117,132 | 112,952 | 111,961 | 107,765 | 104,420 | ||||||||||||||
| Accumulated other comprehensive loss | (7,511 | ) | (7,613 | ) | (8,142 | ) | (7,266 | ) | (8,588 | ) | |||||||||
| Total stockholders’ equity | 178,020 | 173,568 | 171,522 | 167,450 | 162,382 | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,510,938 | $ | 2,528,888 | $ | 2,385,867 | $ | 2,387,721 | $ | 2,351,584 | |||||||||
| 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 | ||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||
| Interest income | $ | 41,211 | $ | 39,168 | $ | 40,028 | $ | 40,319 | $ | 38,465 | ||||
| Interest expense | 20,052 | 19,392 | 20,729 | 22,077 | 21,619 | |||||||||
| Net interest income | 21,159 | 19,776 | 19,299 | 18,242 | 16,846 | |||||||||
| Provision for credit losses | 3,803 | 5,212 | 3,572 | 2,282 | 2,680 | |||||||||
| Non-interest income | 11,288 | 7,324 | 13,279 | 10,831 | 9,244 | |||||||||
| Non-interest expense | 21,357 | 18,743 | 21,411 | 20,546 | 19,018 | |||||||||
| Income before income tax expense | 7,287 | 3,145 | 7,595 | 6,245 | 4,392 | |||||||||
| Income tax expense | 1,695 | 746 | 1,995 | 1,502 | 1,066 | |||||||||
| Net Income | $ | 5,592 | $ | 2,399 | $ | 5,600 | $ | 4,743 | $ | 3,326 | ||||
| Basic weighted average shares outstanding | 11,228 | 11,205 | 11,158 | 11,110 | 11,096 | |||||||||
| Basic earnings per common share | $ | 0.50 | $ | 0.21 | $ | 0.50 | $ | 0.43 | $ | 0.30 | ||||
| Diluted weighted average shares outstanding | 11,392 | 11,446 | 11,375 | 11,234 | 11,150 | |||||||||
| Diluted earnings per common share | $ | 0.49 | $ | 0.21 | $ | 0.49 | $ | 0.42 | $ | 0.30 | ||||
| Segment Information | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||
| (dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||
| Net interest income | $ | 21,025 | $ | 63 | $ | 71 | $ | 21,159 | $ | 16,784 | $ | 36 | $ | 26 | $ | 16,846 | |||||||||||||||
| Provision for credit losses | 3,803 | — | — | 3,803 | 2,680 | — | — | 2,680 | |||||||||||||||||||||||
| Net interest income after provision | 17,222 | 63 | 71 | 17,356 | 14,104 | 36 | 26 | 14,166 | |||||||||||||||||||||||
| Non-interest income | 3,029 | 1,492 | 6,767 | 11,288 | 1,673 | 1,444 | 6,127 | 9,244 | |||||||||||||||||||||||
| Non-interest expense | 15,049 | 951 | 5,357 | 21,357 | 12,606 | 804 | 5,608 | 19,018 | |||||||||||||||||||||||
| Income before income taxes | $ | 5,202 | $ | 604 | $ | 1,481 | $ | 7,287 | $ | 3,171 | $ | 676 | $ | 545 | $ | 4,392 | |||||||||||||||
| Efficiency ratio | 63 | % | 61 | % | 78 | % | 66 | % | 68 | % | 54 | % | 91 | % | 73 | % | |||||||||||||||
| Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||
| (dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||
| Net interest income | $ | 40,730 | $ | 73 | $ | 132 | $ | 40,935 | $ | 33,376 | $ | 30 | $ | 49 | $ | 33,455 | |||||||||||||||
| Provision for credit losses | 9,015 | — | — | 9,015 | 5,546 | — | — | 5,546 | |||||||||||||||||||||||
| Net interest income after provision | 31,715 | 73 | 132 | 31,920 | 27,830 | 30 | 49 | 27,909 | |||||||||||||||||||||||
| Non-interest income | 4,942 | 3,027 | 10,643 | 18,612 | 3,550 | 2,760 | 10,918 | 17,228 | |||||||||||||||||||||||
| Non-interest expense | 27,809 | 1,768 | 10,523 | 40,100 | 24,669 | 1,636 | 10,887 | 37,192 | |||||||||||||||||||||||
| Income before income taxes | $ | 8,848 | $ | 1,332 | $ | 252 | $ | 10,432 | $ | 6,711 | $ | 1,154 | $ | 80 | $ | 7,945 | |||||||||||||||
| Efficiency ratio | 61 | % | 57 | % | 98 | % | 67 | % | 67 | % | 59 | % | 99 | % | 73 | % | |||||||||||||||
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 | Six Months Ended | |||||||||||||
| (Dollars in thousands, except per share data, Unaudited) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| Income before income tax expense | $ | 7,287 | $ | 3,145 | $ | 4,392 | $ | 10,432 | $ | 7,945 | ||||
| Provision for credit losses | 3,803 | 5,212 | 2,680 | 9,015 | 5,546 | |||||||||
| Pre-provision net revenue | $ | 11,090 | $ | 8,357 | $ | 7,072 | $ | 19,447 | $ | 13,491 | ||||
| Pre-Provision Net Revenue Reconciliation | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data, Unaudited) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||
| Bank | $ | 9,005 | $ | 8,860 | $ | 5,851 | $ | 17,863 | $ | 12,257 | |||||
| Wealth | 604 | 726 | 676 | 1,332 | 1,154 | ||||||||||
| Mortgage | 1,481 | (1,229 | ) | 545 | 252 | 80 | |||||||||
| Pre-provision net revenue | $ | 11,090 | $ | 8,357 | $ | 7,072 | $ | 19,447 | $ | 13,491 | |||||
| Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding and Loans at Fair Value | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Allowance for credit losses (GAAP) | $ | 20,851 | $ | 20,827 | $ | 18,438 | $ | 21,965 | $ | 21,703 | |||||||||
| Loans and other finance receivables (GAAP) | 2,108,250 | 2,071,675 | 2,030,437 | 2,008,396 | 1,988,535 | ||||||||||||||
| Less: Loans at fair value | (14,541 | ) | (14,182 | ) | (14,501 | ) | (13,965 | ) | (12,900 | ) | |||||||||
| Loans and other finance receivables, excluding loans at fair value (non-GAAP) | $ | 2,093,709 | $ | 2,057,493 | $ | 2,015,936 | $ | 1,994,431 | $ | 1,975,635 | |||||||||
| ACL to loans and other finance receivables (GAAP) | 0.99 | % | 1.01 | % | 0.91 | % | 1.09 | % | 1.09 | % | |||||||||
| ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP) | 1.00 | % | 1.01 | % | 0.91 | % | 1.10 | % | 1.10 | % | |||||||||
| Tangible Common Equity Ratio Reconciliation - Corporation | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Total stockholders' equity (GAAP) | $ | 178,020 | $ | 173,568 | $ | 171,522 | $ | 167,450 | $ | 162,382 | |||||||||
| Less: Goodwill and intangible assets | (3,564 | ) | (3,615 | ) | (3,666 | ) | (3,717 | ) | (3,768 | ) | |||||||||
| Tangible common equity (non-GAAP) | 174,456 | 169,953 | 167,856 | 163,733 | 158,614 | ||||||||||||||
| Total assets (GAAP) | 2,510,938 | 2,528,888 | 2,385,867 | 2,387,721 | 2,351,584 | ||||||||||||||
| Less: Goodwill and intangible assets | (3,564 | ) | (3,615 | ) | (3,666 | ) | (3,717 | ) | (3,768 | ) | |||||||||
| Tangible assets (non-GAAP) | $ | 2,507,374 | $ | 2,525,273 | $ | 2,382,201 | $ | 2,384,004 | $ | 2,347,816 | |||||||||
| Tangible common equity to tangible assets ratio - Corporation (non-GAAP) | 6.96 | % | 6.73 | % | 7.05 | % | 6.87 | % | 6.76 | % | |||||||||
| Tangible Common Equity Ratio Reconciliation - Bank | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Total stockholders' equity (GAAP) | $ | 228,127 | $ | 220,768 | $ | 219,119 | $ | 217,028 | $ | 211,308 | |||||||||
| Less: Goodwill and intangible assets | (3,564 | ) | (3,615 | ) | (3,666 | ) | (3,717 | ) | (3,768 | ) | |||||||||
| Tangible common equity (non-GAAP) | 224,563 | 217,153 | 215,453 | 213,311 | 207,540 | ||||||||||||||
| Total assets (GAAP) | 2,510,684 | 2,525,029 | 2,382,014 | 2,385,994 | 2,349,600 | ||||||||||||||
| Less: Goodwill and intangible assets | (3,564 | ) | (3,615 | ) | (3,666 | ) | (3,717 | ) | (3,768 | ) | |||||||||
| Tangible assets (non-GAAP) | $ | 2,507,120 | $ | 2,521,414 | $ | 2,378,348 | $ | 2,382,277 | $ | 2,345,832 | |||||||||
| Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 8.96 | % | 8.61 | % | 9.06 | % | 8.95 | % | 8.85 | % | |||||||||
| Tangible Book Value Reconciliation | |||||||||||||||||||
| June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||||||||
| Book value per common share | $ | 15.76 | $ | 15.38 | $ | 15.26 | $ | 14.91 | $ | 14.51 | |||||||||
| Less: Impact of goodwill /intangible assets | 0.32 | 0.32 | 0.33 | 0.33 | 0.34 | ||||||||||||||
| Tangible book value per common share | $ | 15.44 | $ | 15.06 | $ | 14.93 | $ | 14.58 | $ | 14.17 | |||||||||
Contact:
Christopher J. Annas
484.568.5001
CAnnas@meridianbanker.com
FAQ
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