Meridian Corporation Reports Second Quarter 2026 Results and Announces a Quarterly Dividend of $0.14 per Common Share

Q: How did Meridian Corporation (Nasdaq: MRBK) perform in Q2 2026?

Meridian reported Q2 2026 net income of $5.8 million , or $0.48 diluted EPS , a 189.5% increase over Q1. According to Meridian, results were driven by higher non-interest income, lower credit loss provision, and modest balance sheet growth, partly offset by margin pressure and higher expenses.

Q: What were Meridian Corporation's key earnings drivers in Q2 2026 (MRBK)?

The main drivers were a $2.8 million increase in non-interest income and a $4.5 million decrease in provision for credit losses. According to Meridian, stronger mortgage banking and SBA loan income offset higher non-interest expenses and slightly lower net interest income and margin.

Q: What dividend did Meridian Corporation (MRBK) declare with its Q2 2026 results?

Meridian’s board declared a quarterly cash dividend of $0.14 per common share , payable August 17, 2026 to shareholders of record on August 10, 2026. According to Meridian, this dividend follows the strong Q2 2026 earnings performance and current capital position.

Q: How did Meridian Corporation's net interest margin and income trend in Q2 2026?

Net interest margin decreased to 3.69% , and net interest income declined by $412 thousand, or 1.77% quarter-over-quarter. According to Meridian, the decline reflected lower yields on interest-earning assets, including loans, and a 5 basis point increase in the overall cost of deposits.

Q: What happened to Meridian Corporation's credit loss provision and charge-offs in Q2 2026?

The provision for credit losses fell to $3.0 million , down $4.5 million from Q1 2026. According to Meridian, this was mainly due to fewer loan charge-offs and lower loan growth, with SBA and lease net charge-offs together down $2.3 million compared to the prior quarter.

Q: How did Meridian Corporation's mortgage banking and SBA businesses perform in Q2 2026?

Mortgage banking income rose to $6.2 million , up 51.4% quarter-over-quarter, while SBA loan income increased to $615 thousand . According to Meridian, higher loan sale volumes in both segments drove growth, despite lower sale margins in mortgages and SBA loans versus Q1 2026.

Q: What were Meridian Corporation's balance sheet trends at June 30, 2026 (MRBK)?

Total assets were $2.59 billion , up 0.6% from March 31, 2026, while total deposits reached $2.19 billion , up 1.1%. According to Meridian, portfolio loans declined slightly overall, with commercial mortgage and home equity growth offset by reductions in construction, SBA, and lease financings.

Rhea-AI Impact

(Moderate)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

Meridian Corporation (Nasdaq: MRBK) reported second quarter 2026 net income of $5.8 million, or $0.48 per diluted share, up 189.5% from the prior quarter, with pre-provision net revenue of $10.4 million, up 3.6% quarter-over-quarter. Return on average assets was 0.90% and return on average equity was 11.42%.

Total assets were $2.6 billion and total deposits $2.19 billion at June 30, 2026, both modestly higher than March 31, 2026. Non-interest income rose 40.4% to $9.9 million, driven by a 51.4% increase in mortgage banking income and higher SBA loan income, while the provision for credit losses declined by $4.5 million to $3.0 million.

Net interest margin slipped to 3.69% as net interest income decreased 1.8% quarter-over-quarter and deposit costs increased. Non-interest expense grew 10.3%, mainly from higher salaries and advertising. The board declared a quarterly cash dividend of $0.14 per common share, payable August 17, 2026 to shareholders of record on August 10, 2026.

Positive

Net income $5.8 million, up 189.5% QoQ
Diluted EPS $0.48 versus $0.17 in prior quarter
PPNR $10.4 million, up 3.6% QoQ
Non-interest income $9.9 million, up 40.4% QoQ
Mortgage banking income $6.2 million, up 51.4% QoQ
Provision for credit losses $3.0 million, down $4.5 million QoQ
Total deposits $2.19 billion, up 1.1% QoQ
Quarterly dividend $0.14 per common share declared

Negative

Net interest income $22.9 million, down 1.8% QoQ
Net interest margin 3.69%, declined versus prior quarter
Non-interest expense $22.2 million, up 10.3% QoQ
Total portfolio loans down $3.2 million, or 0.1% QoQ
Cost of deposits increased 5 basis points QoQ
SBA loan sale margin 7.9%, down from 8.5% prior quarter
Mortgage loan sale margin decreased 33 basis points QoQ

Market Context

Historical tag-specific results averaged -0.65% across five dividend-and-earnings events, adding a m...

Analysis

Historical tag-specific results averaged -0.65% across five dividend-and-earnings events, adding a mixed market benchmark to MRBK's quarterly report. The announcement paired stronger income with elevated non-performing loans; credit metrics and fee durability remain key watch items.

Key Figures

Net income: $5.8 million Diluted EPS: $0.48 PPNR: $10.4 million +5 more

8 metrics

Net income $5.8 million Q2 2026; up 189.5% from prior quarter

Diluted EPS $0.48 Q2 2026

PPNR $10.4 million Q2 2026; up 3.6% from prior quarter

Return on average assets 0.90% Q2 2026 annualized

Return on average equity 11.42% Q2 2026 annualized

Quarterly dividend $0.14 per common share Declared July 30, 2026; payable August 17, 2026

Non-performing loans $82.1 million June 30, 2026; increased from $58.7 million at March 31, 2026

Non-performing loans ratio 3.68% As of June 30, 2026

Previous Dividends,earnings Reports

5 past events · Latest: Apr 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 23	Q1 earnings and dividend	Positive	-8.9%	Reported quarterly earnings, declared dividend, and disclosed higher credit-loss provision.
Jan 29	Q4 earnings and dividend	Positive	+3.7%	Reported higher quarterly earnings, improved PPNR, and declared a quarterly dividend.
Oct 23	Q3 earnings and dividend	Positive	+2.1%	Reported earnings growth, higher PPNR, loan growth, and a quarterly dividend.
Jul 24	Q2 earnings and dividend	Positive	+1.4%	Reported strong quarterly results, loan growth, and a higher quarterly dividend.
Apr 25	Q1 earnings and dividend	Negative	-1.6%	Reported lower earnings alongside higher non-performing loans and declared a dividend.

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

Pattern Detected

Tag-specific dividend-and-earnings announcements averaged a -0.65% 24-hour reaction, with outcomes ranging from -8.86% to 3.72%.

Key Terms

ppnr, non-performing loans, nonaccrual, community bank leverage ratio

4 terms

ppnr financial

"Pre-provision net revenue1 for the quarter was $10.4 million"

Pre-provision net revenue (PPNR) is a bank’s revenue after accounting for day-to-day operating costs but before subtracting money set aside for bad loans. Think of it like a store’s gross profit before it reserves cash for damaged goods: it shows the core ability to generate income from lending and fees, and helps investors judge a bank’s operating strength separate from credit losses.

non-performing loans financial

"We had a large increase in the non-performing loans due to three real estate relationships"

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.

nonaccrual financial

"The yield on loans dropped 14 basis points due to an interest reversal"

A nonaccrual asset is a loan or investment that a lender stops counting as earning interest because the borrower is not making scheduled payments or the lender doubts future payments. Think of it like putting a subscription on hold when you stop receiving payments; it reduces reported income and signals a higher risk that the lender may not get repaid, which can affect a bank's profits and the value of its loan portfolio.

community bank leverage ratio regulatory

"The Community Bank Leverage Ratio for the Bank was 9.72%"

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.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

07/30/2026 - 04:01 PM

MALVERN, Pa., July 30, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:

	Three Months Ended
(Dollars in thousands, except per share data)(Unaudited)	June 30, 2026		March 31, 2026		June 30, 2025
Income:
Net income	$	5,807	$	2,006	$	5,592
Diluted earnings per common share		0.48		0.17		0.49
Pre-provision net revenue (PPNR)⁽¹⁾		10,447		10,081		11,090
_{(1) See Non-GAAP reconciliation in the Appendix}

Net income for the quarter ended June 30, 2026 was $5.8 million, or $0.48 per diluted share, an increase of $3.8 million, or 189.5%, from the prior quarter.
Pre-provision net revenue¹ for the quarter was $10.4 million, an increase of $366 thousand, or 3.6%, from the prior quarter.
Return on average assets and return on average equity for the second quarter of 2026 were 0.90% and 11.42%, respectively.
Total assets at June 30, 2026 were $2.6 billion, compared to $2.6 billion at March 31, 2026 and $2.5 billion at June 30, 2025.
Commercial loans, excluding leases, increased $4.6 million, or 0.3% from prior quarter.
On July 30, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable August 17, 2026 to shareholders of record as of August 10, 2026.

Christopher J. Annas, Chairman and CEO commented:

“The Meridian team delivered a strong second quarter performance, earning $5.8 million vs $2.0 million in the prior quarter. Net interest margin was steady at 3.69%, and the provision was markedly lower against an elevated provision in the prior quarter. Pre-provision net revenue of $10.4 million was up nearly 3.6% from prior quarter. Commercial loan growth for the quarter would have been $54 million, or 3.0%, if not for commercial loan and CRE loan payoffs of $38 million, as well as SBA loan sales in the current quarter of $11.9 million. SBA loan sale income of $615 thousand is up from last quarter and should be more consistent as we adjust that business model. The mortgage group is still impacted by low inventory, but mortgage banking income was up 6% from Q2 2025. Mortgage third quarter originations look promising, but refi activity has fallen as rates have ticked up.

We had a large increase in the non-performing loans due to three real estate relationships, but our substantial collateral position in these three loans negated the need for any current provisioning. We are working tirelessly to resolve the non-performing loans, but also recognize that our historical loan growth rate and small/medium business focus can often lead to periods of elevated non-performing loans. Our task is to keep the charge-off percentage low, which we have. We also have two businesses, SBA and equipment finance, that have generally higher charge-offs than normal commercial/industrial lending, but we earn higher yields on those assets that offset the charge-offs.

We have hired an experienced payments team that has strong background in merchant acquiring, health savings accounts and the new capabilities of FedNow and RTP. With their industry contacts and qualifications, we are hoping to build a stronger deposit franchise and build fee income in that space. Payment methods are evolving rapidly and we are excited about the unique opportunities they could provide."

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Dollars in thousands, except per share data)
Income:
Net income	$	5,807		$	2,006		$	7,186		$	6,659		$	5,592
Basic earnings per common share		0.49			0.17			0.62			0.59			0.50
Diluted earnings per common share		0.48			0.17			0.61			0.58			0.49
Net interest income		22,791			23,202			23,627			23,116			21,159

Balance Sheet:
Total assets	$	2,593,176		$	2,576,581		$	2,561,995		$	2,541,130		$	2,510,938
Loans, net of fees and costs		2,177,978			2,181,575			2,170,600			2,162,845			2,108,250
Total deposits		2,194,438			2,169,960			2,158,128			2,131,116			2,110,374
Non-interest bearing deposits		246,357			243,458			245,377			239,614			237,042
Stockholders' equity		204,810			200,225			199,716			188,029			178,020

Balance Sheet Average Balances:
Total assets	$	2,585,821		$	2,574,268		$	2,588,357		$	2,534,565		$	2,491,625
Total interest earning assets		2,485,398			2,472,659			2,495,922			2,443,261			2,404,952
Loans, net of fees and costs		2,180,863			2,175,938			2,200,626			2,146,651			2,113,411
Total deposits		2,188,649			2,171,837			2,173,242			2,143,821			2,095,028
Non-interest bearing deposits		252,600			250,203			256,554			253,374			249,745
Stockholders' equity		203,901			202,577			192,799			183,242			176,945

Performance Ratios (Annualized):
Return on average assets		0.90	%		0.32	%		1.10	%		1.04	%		0.90	%
Return on average equity		11.42	%		4.02	%		14.79	%		14.42	%		12.68	%

Income Statement - Second Quarter 2026 Compared to First Quarter 2026

Second quarter net income increased $3.8 million, or 189.5%, to $5.8 million due largely to an increase in non-interest income of $2.8 million, and a decrease of $4.5 million in the provision for credit losses, while non-interest expense increased $2.1 million over the prior quarter, and income tax expense increased $1.1 million over the prior quarter as well. 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, 2026		March 31, 2026		$ Change			% Change		Change due to rate			Change due to volume
Interest income:
Cash and cash equivalents	$	311	$	398	$	(87	)	(21.9) %		$	(2	)	$	(85	)
Investment securities - taxable		1,830		1,847		(17	)	(0.9) %			(27	)		10
Investment securities - tax exempt⁽¹⁾		393		396		(3	)	(0.8) %			(2	)		(1	)
Loans held for sale		616		338		278		82.2	%		20			258
Loans held for investment		37,702		37,806		(104	)	(0.3) %			(245	)		141
Total loans		38,318		38,144		174		0.5	%		(225	)		399
Total interest income	$	40,852	$	40,785	$	67		0.2	%	$	(256	)	$	323
Interest expense:
Interest-bearing demand deposits	$	1,149	$	1,040	$	109		10.5	%	$	13		$	96
Money market and savings deposits		7,263		7,070		193		2.7	%		279			(86	)
Time deposits		7,337		7,113		224		3.1	%		(22	)		246
Total interest - bearing deposits		15,749		15,223		526		3.5	%		270			256
Borrowings		1,233		1,293		(60	)	(4.6	)%		(13	)		(47	)
Subordinated debentures		1,007		994		13		1.3	%		10			3
Total interest expense		17,989		17,510		479		2.7	%		267			212
Net interest income differential	$	22,863	$	23,275	$	(412	)	(1.77	)%	$	(523	)	$	111
(1) Reflected on a tax-equivalent basis.

Interest income increased $67 thousand quarter-over-quarter on a tax equivalent basis, driven mainly by an increase in loans held for sale and loans held for investment average balances. The yield on interest-earnings assets decreased 10 basis points and negatively impacted interest income by $256 thousand, while the average balance of interest earning assets increased by $12.7 million, having a positive impact to interest income of $323 thousand. The yield on loans dropped 14 basis points due to an interest reversal of $885 thousand related to new nonaccrual loans in the quarter.

Average total loans, excluding residential loans for sale, increased $4.9 million. The largest drivers were increases in commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $21.2 million on average. Partially offsetting these increases were decreases of $7.1 million in SBA loan average balances, a $2.7 million decrease in the average balance of residential loans held for investment, along with a decrease in average leases of $4.6 million. Also contributing to the increase in interest income was a $16.9 million increase in the average balance of loans held for sale.

Interest expense increased $479 thousand, quarter-over-quarter, due largely to an increase in the cost of interest-bearing deposits. Interest expense on total deposits increased $526 thousand, as interest expense on borrowings decreased $60 thousand. During the period average balances of interest-bearing checking accounts increased $11.8 million, time deposits increased $18.2 million, while money market and savings deposit balances decreased $15.6 million on average and borrowings decreased $5.0 million on average. The cost of deposits increased 5 basis points as interest-bearing demand deposits and money market accounts had a cost increase, partially offset by the decrease in the cost of time deposits.

Overall the net interest margin decreased to 3.69%, compared to the prior quarter, drive by the decline in yield on interest-earning assets and an increase in cost of funds.

Provision for Credit Losses

In the second quarter the overall provision for credit losses fell by $4.5 million to $3.0 million, compared with $7.5 million in the first quarter. The primary reason for the lower level of provision expense was less loan charge-offs and lower loan growth quarter over quarter. Excluding the prior quarter’s $3.9 million charge-off and related provision on a single commercial mortgage, charge-offs in the second quarter declined by $1.3 million driving down the provision. SBA and lease net charge-offs were together down $2.3 million compared to prior quarter.

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, 2026		March 31, 2026			$ Change			% Change
Mortgage banking income⁽¹⁾	$	6,229	$	4,115		$	2,114		51.4	%
Wealth management income		1,706		1,729			(23	)	(1.3	)%
SBA loan income		615		150			465		310.0	%
Earnings on investment in life insurance		245		272			(27	)	(9.9	)%
Net gain (loss) on sale of MSRs		—		(159	)		159		(100.0	)%
Net change in the fair value of loans held-for-investment		65		(39	)		104		(266.7	)%
Other		1,023		969			54		5.6	%
Total non-interest income	$	9,883	$	7,037		$	2,846		40.4	%
(1) Includes FV change on mortgages HFS and related hedging derivatives.

Total non-interest income increased $2.8 million, or 40.4%, quarter-over-quarter largely due to a $2.1 million increase in mortgage banking income, and a $465 thousand increase in SBA loan income. Despite a quarter-over-quarter decrease of 33 basis points in the margin on mortgage loan sales, total loans sold increased by $81.1 million, or 20% from the prior quarter, resulting in a higher level of mortgage banking income, and the fair value of loans held for sale improved quarter-over-quarter as the loans available for sale at June 30, 2026 were up $15.9 million over March 31, 2026.

SBA loan income increased $465 thousand due to the increase in SBA loans sold. $11.9 million of loans were sold during the quarter-ended June 30, 2026 compared to $6.7 million for the quarter-ended March 31, 2026. However, the gross margin on SBA loan sales was 7.9% for the quarter-ended June 30, 2026 compared to 8.5% for the quarter-ended March 31, 2026.

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, 2026		March 31, 2026		$ Change			% Change
Salaries and employee benefits	$	13,193	$	12,386	$	807		6.5	%
Occupancy and equipment		1,172		1,183		(11	)	(0.9	)%
Professional fees		1,164		974		190		19.5	%
Data processing and software		2,018		1,973		45		2.3	%
Advertising and promotion		1,317		692		625		90.3	%
Pennsylvania bank shares tax		246		258		(12	)	(4.7	)%
Other		3,117		2,692		425		15.8	%
Total non-interest expense	$	22,227	$	20,158	$	2,069		10.3	%

Salaries and benefits increased $807 thousand primarily due to the variable nature of the mortgage segment along with higher incentive compensation overall. Advertising and promotion costs increased $625 thousand, reflecting an increase in business development efforts and special events in the current quarter, which is generally seasonally higher. Other expense increased $425 thousand mainly due to an increase in OREO expenses and non-salary employee expenses in the current quarter. The increase in professional fees was due to expenses related to non-performing loans.

Balance Sheet - June 30, 2026 Compared to March 31, 2026

Total assets increased $16.6 million, or 0.6%, to $2.6 billion as of June 30, 2026 from $2.6 billion as of March 31, 2026.

Total portfolio loans decreased $3.2 million, or 0.1% quarter-over-quarter. While there was growth of $41.2 million in commercial mortgage loans, $1.2 million in commercial & industrial loans, and $3.0 million in home equity lines and loans during the second quarter, these increases were offset by a $27.9 million decrease in construction and land development loans, a $9.9 million decrease in SBA loans, and a $5.7 million decrease in lease financings. Commercial loan growth was impacted by $9.9 million in commercial loan payoffs during the quarter.

Total deposits increased $24.5 million, or 1.1% quarter-over-quarter, led by an increase of $21.6 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $19.5 million, non-interest bearing accounts increased $2.9 million or 1.2%, while interest bearing demand deposits decreased $5.9 million, and borrowings decreased $12.8 million, or 10.6% quarter-over-quarter.

Total stockholders’ equity increased by $4.6 million from March 31, 2026, to $204.8 million as of June 30, 2026. Changes to equity for the quarter included net income of $5.8 million, and an increase of $146 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.72% at June 30, 2026.

Asset Quality Summary

Non-performing loans increased $23.4 million, to $82.1 million at June 30, 2026 compared to $58.7 million at March 31, 2026, with the largest increases coming from land development loans ($20.0 million) and commercial mortgage loans ($5.5 million) that were downgraded during the current quarter partially offset by payoffs of $3.3 million of several CRE, construction and consumer loans combined. The downgraded land development and commercial mortgage loan relationships were well collateralized and therefore did not require any specific reserve as of June 30, 2026. SBA loans make up $24.6 million of total non-performing loans, with $11.9 million, or 48.4%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with 49.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points.

The ratio of non-performing loans to total loans as of June 30, 2026 was 3.68%. Due to the increase in non-performing loans, the ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 3.14%. As of June 30, 2026 there were specific reserves of $3.3 million against individually evaluated loans, an increase of $428 thousand from the level of specific reserves as of March 31, 2026.

Net charge-offs decreased to $2.6 million, or 0.12% of total average loans for the quarter ended June 30, 2026, compared to net charge-offs of $7.8 million, or 0.35%, for the quarter ended March 31, 2026. Second quarter charge-offs consisted of $414 thousand in SBA loans, $1.0 million in commercial loans, $1.2 million in finance receivables, and $455 thousand of small ticket equipment leases. Partially offsetting second quarter charge-offs were recoveries of $467 thousand between commercial loans, finance receivables, home equity loans, and leases.

The ratio of allowance for credit losses to total loans held for investment was 0.99% as of June 30, 2026, compared to 0.98% reported as of March 31, 2026.

Subsequent to June 30, 2026, a property in OREO valued at $719 thousand sold for a recorded gain of $218 thousand.

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
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Earnings and Per Share Data:
Net income	$	5,807		$	2,006		$	7,186		$	6,659		$	5,592
Basic earnings per common share	$	0.49		$	0.17		$	0.62		$	0.59		$	0.50
Diluted earnings per common share	$	0.48		$	0.17		$	0.61		$	0.58		$	0.49
Common shares outstanding		11,895			11,879			11,826			11,517			11,297

Performance Ratios:
Return on average assets⁽²⁾		0.90	%		0.32	%		1.10	%		1.04	%		0.90	%
Return on average equity⁽²⁾		11.42			4.02			14.79			14.42			12.68
Net interest margin (tax-equivalent)⁽²⁾		3.69			3.82			3.77			3.77			3.54
Yield on earning assets (tax-equivalent)⁽²⁾		6.59			6.69			6.82			7.01			6.89
Cost of funds⁽²⁾		3.08			3.04			3.23			3.42			3.52
Efficiency ratio		68.03	%		66.66	%		63.25	%		65.15	%		65.82	%

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.12	%		0.35	%		0.16	%		0.09	%		0.17	%
Non-performing loans to total loans		3.68			2.64			2.50			2.53			2.35
Non-performing assets to total assets		3.40			2.51			2.38			2.32			2.14
Allowance for credit losses to:
Total loans and other finance receivables		0.99			0.97			0.99			1.01			0.99
Total loans and other finance receivables (excluding loans at fair value)⁽¹⁾		0.99			0.98			1.00			1.01			1.00
Non-performing loans		26.15	%		36.23	%		39.18	%		39.37	%		41.26	%

Capital Ratios:
Book value per common share	$	17.22		$	16.86		$	16.89		$	16.33		$	15.76
Tangible book value per common share	$	16.94		$	16.57		$	16.59		$	16.02		$	15.44
Total equity/Total assets		7.90	%		7.77	%		7.80	%		7.40	%		7.09	%
Tangible common equity/Tangible assets - Corporation⁽¹⁾		7.78			7.65			7.67			7.27			6.96
Tangible common equity/Tangible assets - Bank⁽¹⁾		9.51			9.38			9.41			9.16			8.96
Tier 1 leverage ratio - Bank		9.72			9.58			9.50			9.41			9.32
Common tier 1 risk-based capital ratio - Bank		10.65			10.52			10.66			10.52			10.53
Tier 1 risk-based capital ratio - Bank		10.65			10.52			10.66			10.52			10.53
Total risk-based capital ratio - Bank		11.64	%		11.51	%		11.65	%		11.54	%		11.54	%
^{(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, 2026		March 31, 2026			June 30, 2025		June 30, 2026			June 30, 2025
Interest income:
Loans and other finance receivables, including fees	$	38,318	$	38,144		$	38,697	$	76,462		$	75,246
Securities - taxable		1,830		1,847			1,792		3,677			3,485
Securities - tax-exempt		321		323			295		644			608
Cash and cash equivalents		311		398			427		709			1,040
Total interest income		40,780		40,712			41,211		81,492			80,379
Interest expense:
Deposits		15,749		15,223			17,301		30,972			34,169
Borrowings and subordinated debentures		2,240		2,287			2,751		4,527			5,275
Total interest expense		17,989		17,510			20,052		35,499			39,444
Net interest income		22,791		23,202			21,159		45,993			40,935
Provision for credit losses		2,968		7,493			3,803		10,461			9,015
Net interest income after provision for credit losses		19,823		15,709			17,356		35,532			31,920
Non-interest income:
Mortgage banking income⁽¹⁾		6,229		4,115			5,847		10,344			9,512
Wealth management income		1,706		1,729			1,492		3,435			3,027
SBA loan income		615		150			1,988		765			2,736
Earnings on investment in life insurance		245		272			240		517			462
Net gain (loss) on sale of MSRs		—		(159	)		467		(159	)		415
Net change in the fair value of loans held-for-investment		65		(39	)		190		26			360
Other		1,023		969			1,064		1,992			2,100
Total non-interest income		9,883		7,037			11,288		16,920			18,612
Non-interest expense:
Salaries and employee benefits		13,193		12,386			13,179		25,579			24,564
Occupancy and equipment		1,172		1,183			1,037		2,355			2,375
Professional fees		1,164		974			1,164		2,138			1,927
Data processing and software		2,018		1,973			1,706		3,991			3,185
Advertising and promotion		1,317		692			1,277		2,009			2,056
Pennsylvania bank shares tax		246		258			269		504			538
Other		3,117		2,692			2,725		5,809			5,455
Total non-interest expense		22,227		20,158			21,357		42,385			40,100
Income before income taxes		7,479		2,588			7,287		10,067			10,432
Income tax expense		1,672		582			1,695		2,254			2,441
Net income	$	5,807	$	2,006		$	5,592	$	7,813		$	7,991

Basic earnings per common share	$	0.49	$	0.17		$	0.50	$	0.66		$	0.71
Diluted earnings per common share	$	0.48	$	0.17		$	0.49	$	0.64		$	0.70

Basic weighted average shares outstanding		11,859		11,811			11,228		11,835			11,215
Diluted weighted average shares outstanding		12,174		12,153			11,392		12,163			11,415
^{(1) Includes FV change on mortgages HFS and related hedging derivatives}

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets:
Cash and due from banks	$	11,209		$	12,458		$	10,358		$	12,605		$	20,604
Interest-bearing deposits at other banks		24,998			15,811			25,420			27,384			29,570
Cash and cash equivalents		36,207			28,269			35,778			39,989			50,174
Securities available-for-sale, at fair value		200,552			196,012			193,457			194,268			187,902
Securities held-to-maturity, at amortized cost		32,445			32,494			32,544			32,593			32,642
Equity investments		2,146			2,137			2,166			2,150			2,130
Mortgage loans held for sale, at fair value		54,898			38,960			33,762			28,016			44,078
Loans and other finance receivables, net of fees and costs		2,177,978			2,181,575			2,170,600			2,162,845			2,108,250
Allowance for credit losses		(21,463	)		(21,252	)		(21,573	)		(21,794	)		(20,851	)
Loans and other finance receivables, net of the allowance for credit losses		2,156,515			2,160,323			2,149,027			2,141,051			2,087,399
Restricted investment in bank stock		7,484			7,699			7,811			8,350			9,162
Bank premises and equipment, net		12,437			12,298			12,402			12,413			12,320
Bank owned life insurance		31,205			30,959			30,687			30,421			30,175
Accrued interest receivable		10,680			11,015			10,724			10,944			10,334
OREO and other repossessed assets		6,081			6,009			5,997			3,714			3,148
Deferred income taxes		4,535			4,548			4,215			4,989			5,314
Servicing assets		3,642			3,694			3,932			3,845			3,658
Goodwill		899			899			899			899			899
Intangible assets		2,461			2,512			2,563			2,614			2,665
Other assets		30,989			38,753			36,031			24,874			28,938
Total assets	$	2,593,176		$	2,576,581		$	2,561,995		$	2,541,130		$	2,510,938

Liabilities:
Deposits:
Non-interest bearing	$	246,357		$	243,458		$	245,377		$	239,614		$	237,042
Interest bearing:
Interest checking		151,235			157,151			157,360			151,973			173,865
Money market and savings deposits		1,033,043			1,013,533			1,023,290			996,126			956,448
Time deposits		763,803			755,818			732,101			743,403			743,019
Total interest-bearing deposits		1,948,081			1,926,502			1,912,751			1,891,502			1,873,332
Total deposits		2,194,438			2,169,960			2,158,128			2,131,116			2,110,374
Borrowings		108,032			120,838			117,338			137,265			138,965
Subordinated debentures		49,705			49,675			49,853			49,822			49,792
Accrued interest payable		5,587			6,620			6,531			7,095			7,059
Other liabilities		30,604			29,263			30,429			27,803			26,728
Total liabilities		2,388,366			2,376,356			2,362,279			2,353,101			2,332,918

Stockholders’ equity:
Common stock		13,927			13,882			13,830			13,521			13,300
Surplus		91,137			90,885			90,352			85,122			82,184
Treasury stock		(26,079	)		(26,079	)		(26,079	)		(26,079	)		(26,079	)
Unearned common stock held by ESOP		(1,232	)		(1,232	)		(1,232	)		(1,006	)		(1,006	)
Retained earnings		132,614			128,472			128,124			122,376			117,132
Accumulated other comprehensive loss		(5,557	)		(5,703	)		(5,279	)		(5,905	)		(7,511	)
Total stockholders’ equity		204,810			200,225			199,716			188,029			178,020
Total liabilities and stockholders’ equity	$	2,593,176		$	2,576,581		$	2,561,995		$	2,541,130		$	2,510,938

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, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Interest income	$	40,780	$	40,712	$	42,826	$	43,109	$	41,211
Interest expense		17,989		17,510		19,199		19,993		20,052
Net interest income		22,791		23,202		23,627		23,116		21,159
Provision for credit losses		2,968		7,493		3,287		2,850		3,803
Non-interest income		9,883		7,037		10,615		9,953		11,288
Non-interest expense		22,227		20,158		21,658		21,546		21,357
Income before income tax expense		7,479		2,588		9,297		8,673		7,287
Income tax expense		1,672		582		2,111		2,014		1,695
Net Income	$	5,807	$	2,006	$	7,186	$	6,659	$	5,592

Basic weighted average shares outstanding		11,859		11,811		11,543		11,325		11,228
Basic earnings per common share	$	0.49	$	0.17	$	0.62	$	0.59	$	0.50

Diluted weighted average shares outstanding		12,174		12,153		11,771		11,540		11,392
Diluted earnings per common share	$	0.48	$	0.17	$	0.61	$	0.58	$	0.49

	Segment Information
	Three Months Ended June 30, 2026												Three Months Ended June 30, 2025
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	22,599		$	58		$	134		$	22,791		$	21,025		$	63		$	71		$	21,159
Provision for credit losses		2,968			—			—			2,968			3,803			—			—			3,803
Net interest income after provision		19,631			58			134			19,823			17,222			63			71			17,356
Non-interest income		1,844			1,706			6,333			9,883			3,029			1,492			6,767			11,288
Non-interest expense		15,056			1,190			5,981			22,227			15,049			951			5,357			21,357
Income before income taxes	$	6,419		$	574		$	486		$	7,479		$	5,202		$	604		$	1,481		$	7,287
Efficiency ratio		62	%		67	%		92	%		68	%		63	%		61	%		78	%		66	%

	Six Months Ended June 30, 2026												Six Months Ended June 30, 2025
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	45,670		$	118		$	205		$	45,993		$	40,730		$	73		$	132		$	40,935
Provision for credit losses		10,461			—			—			10,461			9,015			—			—			9,015
Net interest income after provision		35,209			118			205			35,532			31,715			73			132			31,920
Non-interest income		3,242			3,435			10,243			16,920			4,942			3,027			10,643			18,612
Non-interest expense		29,013			2,169			11,203			42,385			27,809			1,768			10,523			40,100
Income before income taxes	$	9,438		$	1,384		$	(755	)	$	10,067		$	8,848		$	1,332		$	252		$	10,432
Efficiency ratio		59	%		61	%		107	%		67	%		61	%		57	%		98	%		67	%

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, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Income before income tax expense	$	7,479	$	2,588	$	7,287	$	10,067	$	10,432
Provision for credit losses		2,968		7,493		3,803		10,461		9,015
Pre-provision net revenue	$	10,447	$	10,081	$	11,090	$	20,528	$	19,447

	Pre-Provision Net Revenue Reconciliation
	Three Months Ended							Six Months Ended
(Dollars in thousands, except per share data, Unaudited)	June 30, 2026		March 31, 2026			June 30, 2025		June 30, 2026			June 30, 2025
Bank	$	9,387	$	10,513		$	9,005	$	19,899		$	17,863
Wealth		574		811			604		1,384			1,332
Mortgage		486		(1,243	)		1,481		(755	)		252
Pre-provision net revenue	$	10,447	$	10,081		$	11,090	$	20,528		$	19,447

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Allowance for credit losses (GAAP)	$	21,463		$	21,252		$	21,573		$	21,794		$	20,851

Loans and other finance receivables (GAAP)		2,177,978			2,181,575			2,170,600			2,162,845			2,108,250
Less: Loans at fair value		(13,619	)		(14,090	)		(14,396	)		(14,454	)		(14,541	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,164,359		$	2,167,485		$	2,156,204		$	2,148,391		$	2,093,709

ACL to loans and other finance receivables (GAAP)		0.99	%		0.97	%		0.99	%		1.01	%		0.99	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		0.99	%		0.98	%		1.00	%		1.01	%		1.00	%

	Tangible Common Equity Ratio Reconciliation - Corporation
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Total stockholders' equity (GAAP)	$	204,810		$	200,225		$	199,716		$	188,029		$	178,020
Less: Goodwill and intangible assets		(3,360	)		(3,411	)		(3,462	)		(3,513	)		(3,564	)
Tangible common equity (non-GAAP)		201,450			196,814			196,254			184,516			174,456

Total assets (GAAP)		2,593,176			2,576,581			2,561,995			2,541,130			2,510,938
Less: Goodwill and intangible assets		(3,360	)		(3,411	)		(3,462	)		(3,513	)		(3,564	)
Tangible assets (non-GAAP)	$	2,589,816		$	2,573,170		$	2,558,533		$	2,537,617		$	2,507,374
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)		7.78	%		7.65	%		7.67	%		7.27	%		6.96	%

	Tangible Common Equity Ratio Reconciliation - Bank
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Total stockholders' equity (GAAP)	$	249,468		$	244,621		$	244,064		$	236,038		$	228,127
Less: Goodwill and intangible assets		(3,360	)		(3,411	)		(3,462	)		(3,513	)		(3,564	)
Tangible common equity (non-GAAP)		246,108			241,210			240,602			232,525			224,563

Total assets (GAAP)		2,591,551			2,575,135			2,560,485			2,541,395			2,510,684
Less: Goodwill and intangible assets		(3,360	)		(3,411	)		(3,462	)		(3,513	)		(3,564	)
Tangible assets (non-GAAP)	$	2,588,191		$	2,571,724		$	2,557,023		$	2,537,882		$	2,507,120
Tangible common equity to tangible assets ratio - Bank (non-GAAP)		9.51	%		9.38	%		9.41	%		9.16	%		8.96	%

	Tangible Book Value Reconciliation
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Book value per common share	$	17.22		$	16.86		$	16.89		$	16.33		$	15.76
Less: Impact of goodwill /intangible assets		0.28			0.29			0.30			0.31			0.32
Tangible book value per common share	$	16.94		$	16.57		$	16.59		$	16.02		$	15.44

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

FAQ

How did Meridian Corporation (Nasdaq: MRBK) perform in Q2 2026?

Meridian reported Q2 2026 net income of $5.8 million, or $0.48 diluted EPS, a 189.5% increase over Q1. According to Meridian, results were driven by higher non-interest income, lower credit loss provision, and modest balance sheet growth, partly offset by margin pressure and higher expenses.

What were Meridian Corporation's key earnings drivers in Q2 2026 (MRBK)?

The main drivers were a $2.8 million increase in non-interest income and a $4.5 million decrease in provision for credit losses. According to Meridian, stronger mortgage banking and SBA loan income offset higher non-interest expenses and slightly lower net interest income and margin.

What dividend did Meridian Corporation (MRBK) declare with its Q2 2026 results?

Meridian’s board declared a quarterly cash dividend of $0.14 per common share, payable August 17, 2026 to shareholders of record on August 10, 2026. According to Meridian, this dividend follows the strong Q2 2026 earnings performance and current capital position.

How did Meridian Corporation's net interest margin and income trend in Q2 2026?

Net interest margin decreased to 3.69%, and net interest income declined by $412 thousand, or 1.77% quarter-over-quarter. According to Meridian, the decline reflected lower yields on interest-earning assets, including loans, and a 5 basis point increase in the overall cost of deposits.

What happened to Meridian Corporation's credit loss provision and charge-offs in Q2 2026?

The provision for credit losses fell to $3.0 million, down $4.5 million from Q1 2026. According to Meridian, this was mainly due to fewer loan charge-offs and lower loan growth, with SBA and lease net charge-offs together down $2.3 million compared to the prior quarter.

How did Meridian Corporation's mortgage banking and SBA businesses perform in Q2 2026?

Mortgage banking income rose to $6.2 million, up 51.4% quarter-over-quarter, while SBA loan income increased to $615 thousand. According to Meridian, higher loan sale volumes in both segments drove growth, despite lower sale margins in mortgages and SBA loans versus Q1 2026.

What were Meridian Corporation's balance sheet trends at June 30, 2026 (MRBK)?

Total assets were $2.59 billion, up 0.6% from March 31, 2026, while total deposits reached $2.19 billion, up 1.1%. According to Meridian, portfolio loans declined slightly overall, with commercial mortgage and home equity growth offset by reductions in construction, SBA, and lease financings.