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

Rhea-AI Summary

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.

Positive

• 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

Negative

• 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

News Market Reaction

+1.36%

2 alerts

+1.36% News Effect

+$2M Valuation Impact

$173M Market Cap

0.2x Rel. Volume

On the day this news was published, MRBK gained 1.36%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $173M at that time.

Data tracked by StockTitan Argus on the day of publication.

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, or 133%, from prior quarter.
  
• Pre-provision net revenue¹ for the quarter was $11.1 million, an improvement of $4.0 million, or 57%. from Q2'2024.
  
• Net interest margin was 3.54% for the second quarter of 2025, while loan yield improved to 7.24%, from prior quarter.
  
• Return on average assets and return on average equity for the second quarter of 2025 were 0.90% and 12.68%, 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, or 2% from prior quarter.
  
• On July 24, 2025, the Board of Directors declared a quarterly cash dividend of $0.125 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 $5.6 million were substantially above first quarter 2025, benefiting from improving margin, SBA loan sales and mortgage seasonality. PPNR was up 33% over the same period, reflecting overall healthy growth in our business units and good expense control. Loan growth was 2.5% for the quarter but was negatively impacted by a large SBA loan sale and the planned paydowns in our lease group. We continue to forecast loan growth in the 8-10% range for the year. Management is intensely focused on reducing the nonperforming loans, historically high for us, but negotiations and lengthy court schedules will slow the process.

Meridian Wealth Partners continued its solid performance with pre-tax income of $604 thousand for the quarter. We have hired senior managers in this unit to further our growth, and capture a greater percentage of opportunities from our loan groups. The mortgage team is performing nicely but still facing a lack of homes for sale in our Philadelphia metro and Baltimore markets. It had a big turnaround from the first quarter, but volume might have been significantly higher if the inventory was sufficient.

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 $3.2 million, or 133.1%, to $5.6 million as net interest income increased $1.4 million, the provision for credit losses decreased $1.4 million, and non-interest income increased $4.0 million. These improvements to net income were partially offset by a $2.6 million increase to non-interest expense 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)	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 $2.0 million quarter-over-quarter on a tax equivalent basis, driven by increased average balances of interest earning assets and to a lesser degree by higher yields on those assets. Average interest earning assets increased by $74.7 million, and contributed $1.7 million to interest income, while the yield on earnings assets increased 6 basis points and contributed $289 thousand to interest income.

Average total loans, excluding residential loans for sale, increased $73.6 million. The largest drivers of this increase were commercial, commercial real estate, construction, and small business loans which on a combined basis increased $72.4 million on average, partially offset by a decrease in average leases of $9.4 million. Home equity, residential real estate, consumer and other loans held in portfolio increased on a combined basis $10.7 million on average.

Interest expense increased $660 thousand, quarter-over-quarter, due to higher volume of interest-bearing deposits and borrowings. Interest expense on total deposits increased $433 thousand and interest expense on borrowings increased $227 thousand. During the period, interest-bearing checking accounts and money market accounts increased $20.7 million and $18.3 million on average, respectively, while time deposits increased $14.2 million on average. Borrowings increased $14.5 million on average. On a rate basis, interest-bearing checking accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits dropping 5 basis points.

Overall the net interest margin increased 8 basis points to 3.54% as the cost of funds declined and the yield on earning assets increased.

Provision for Credit Losses

The overall provision for credit losses for the second quarter decreased $1.4 million to $3.8 million, from $5.2 million in the first quarter. The lower provisioning reflects the drop in non-performing loans, a decrease in specific reserves required, as well as a lower level of loan growth quarter over quarter. Loan growth was impacted by the sale of SBA loans for the quarter, which exceeded the amount sold in the first quarter by $27.4 million.

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 $4.0 million, or 54.1%, quarter-over-quarter largely due to a $2.4 million positive improvement in mortgage banking income, combined with a $1.2 million increase in SBA loan income from the sale of SBA loans, and a $467 thousand gain recognized on the sale of MSRs. Mortgage loan sales increased $63.5 million or 42.9% quarter-over-quarter driving higher gain on sale income in addition to an improvement in the overall margin, leading to the higher level of mortgage banking income.  

SBA loan income increased $1.2 million as the volume of SBA loans sold was up $27.4 million to $39.5 million, for the quarter-ended June 30, 2025 compared to the quarter-ended March 31, 2025. The gross margin on SBA sales was 6.2% for the quarter, down from 8.7% for the previous quarter. The sale included seasoned loans from 2021 & 2022 for which the market premium was much lower.

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 $1.8 million. Bank and wealth segments combined increased $1.4 million, while the mortgage segment increased $407 thousand. Bank and wealth segment salaries and employee benefits increased due to an increase of 12 full-time equivalent employees, as well as an increase in incentives and other benefits. Mortgage segment salaries, commissions, and employee benefits expense are impacted by volume and increased commensurate with the higher level of originations. Occupancy and equipment expense decreased $301 thousand due to a full quarter of savings realized from office lease terminations that occurred in the last few quarters. Professional fees increased $401 thousand over the prior period due to increases in legal, accounting, and other professional fees, while advertising and promotion expenses increased $498 thousand due to the timing of business development activities that typically increase this time of year, including special events.

Balance Sheet - June 30, 2025 Compared to March 31, 2025

Total assets decreased $18.0 million, or 0.7%, to $2.5 billion as of June 30, 2025 from $2.5 billion at March 31, 2025. Interest-earning cash and fed funds decreased $84.7 million, or 74.1%, to $29.6 million as of June 30, 2025 from March 31, 2025, as a temporary deposit at the end of the prior quarter of $103 million from a long standing customer, was eventually withdrawn after being on hand for several weeks.

Portfolio loans grew $36.2 million, or 1.7% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $32.0 million, or 8.6%, commercial mortgage loans which increased $10.3 million, or 1.2%, and construction loans which increased $7.3 million, or 2.6%. SBA loan balances decreased $16.4 million, or 10.2%, from March 31, 2025, due to the increase in sales of such loans in the second quarter as discussed above in the non-interest income section. Lease financings also decreased $9.0 million, or 13.5% from March 31, 2025, partially offsetting the above noted loan growth, but this decline was expected.

Total deposits decreased $18.4 million, or 0.9% quarter-over-quarter, led by a decline in non-interest bearing deposit of $86.4 million due to the impact of the $103 million temporary deposit discussed above, but this decline was largely offset by an increase of $68.1 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $8.7 million, while interest bearing demand deposits increased $12.8 million, and time deposits increased $46.6 million from largely wholesale efforts. Overall borrowings decreased $625 thousand, or 0.4% quarter-over-quarter.

Total stockholders’ equity increased by $4.5 million from March 31, 2025, to $178.0 million as of June 30, 2025. Changes to equity for the current quarter included net income of $5.6 million, less dividends paid of $1.4 million, offset by a decrease of $102 thousand in other comprehensive income. The Community Bank Leverage Ratio for the Bank was 9.32% at June 30, 2025.

Asset Quality Summary

There was a positive improvement in the level of non-performing loans in the second quarter as they decreased $1.7 million to $50.5 million at June 30, 2025 compared to $52.2 million at March 31, 2025. This decline in non-performing loans was largely the result of the repossession of a billboard asset from a commercial loan relationship and a commercial real estate property from a separate commercial loan relationship. These assets were reclassified into OREO and other repossessed assets on the balance sheet at June 30, 2025. The decline in non-performing loans was partially offset by additional SBA loans that became non-performing during the quarter. Included in non-performing loans are $19.4 million of SBA loans of which $10.0 million, or 52%, are guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase and $13.8 million, or 71% 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 14 bps to 2.35% as of June 30, 2025, from 2.49% as of March 31, 2025.

Net charge-offs increased to $3.6 million, or 0.17% of total average loans for the quarter ended June 30, 2025, compared to net charge-offs of $2.8 million, or 0.14%, for the quarter ended March 31, 2025. Second quarter charge-offs consisted of $2.2 million in SBA loans, $972 thousand of small ticket equipment leases, and $583 thousand in commercial loans partly related to the repossession of loan collateral discussed above. Overall there were recoveries of $380 thousand, mainly related to leases.

The ratio of allowance for credit losses to total loans held for investment was 1.00% as of June 30, 2025, relatively flat from 1.01% as of March 31, 2025. The baseline quantitative and qualitative reserve factors increased in the second quarter ACL calculation, offset by the impact of a lower reserve need as specific reserves declined. As of June 30, 2025 there were specific reserves of $3.3 million against individually evaluated loans, a decrease of $1.7 million from $5.0 million in specific reserves as of March 31, 2025.

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

What were MRBK's earnings per share in Q2 2025?

Meridian Corporation reported diluted earnings of $0.49 per share in Q2 2025, up from $0.21 in Q1 2025.

How much is Meridian's quarterly dividend for Q2 2025?

The Board declared a quarterly cash dividend of $0.125 per common share, payable August 18, 2025 to shareholders of record as of August 11, 2025.

What was MRBK's net interest margin in Q2 2025?

Meridian's net interest margin was 3.54% for the second quarter of 2025, showing an improvement of 8 basis points.

How much did Meridian's commercial loans grow in Q2 2025?

Commercial loans, excluding leases, increased by $33.2 million, or 2% from the previous quarter.

What was MRBK's total asset value as of Q2 2025?

Meridian Corporation reported total assets of $2.5 billion as of June 30, 2025.

What was Meridian's return on equity in Q2 2025?

The return on average equity for Q2 2025 was 12.68%, up from 5.57% in the previous quarter.