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

Higher net interest margin and lower credit-loss provisions were offset by weaker fee income and higher operating expenses.

Rhea-AI Summary

Meridian Corporation (Nasdaq: MRBK) reported third-quarter 2026 net income of $5.2 million, down from the prior quarter and a year earlier. Diluted earnings per share were $0.43, versus $0.48 in the second quarter and $0.58 a year earlier. Net interest margin rose 8 basis points sequentially to 3.77%, while non-interest income fell 32.2% to $6.7 million and non-interest expense rose 3.6% to $23.0 million.

The credit-loss provision fell to $1.1 million from $3.0 million. Non-performing loans decreased $3.8 million during the quarter; another $2.7 million settled after quarter-end. Wealth management income rose 10.0% sequentially, but mortgage operations recorded a $1.6 million quarterly pre-tax loss. Quarter-end deposits fell to $2.167 billion from $2.194 billion. The board declared a $0.14 quarterly dividend, payable November 16, 2026, to shareholders of record November 9.

16 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 21 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet interest income rose to $23.436 million from $22.791 million in the second quarter.
• Moderate pointNet interest margin increased 8 basis points quarter over quarter to 3.77%.
• Moderate pointCredit-loss provision declined to $1.1 million from $3.0 million in the second quarter.
• Minor pointNon-performing loans fell $3.8 million during the quarter; another $2.7 million settled after quarter-end.
• Minor pointLoan charge-offs declined $414 thousand from the second quarter.

11 minor points

• Minor pointWealth management income increased 10.0% sequentially to $1.877 million.
• Minor pointWealth quarterly pre-tax income grew 35% over the third quarter of 2025.
• Minor pointLife insurance investment earnings increased 19.2% sequentially to $292 thousand.
• Minor pointAdvertising and promotion expense decreased 29.1% sequentially to $934 thousand.
• Minor pointPennsylvania bank shares tax expense decreased 5.3% sequentially to $233 thousand.
• Minor pointIncome tax expense fell to $778 thousand from $1.7 million; the effective rate fell to 13.0% from 22.4%.
• Minor pointBorrowing interest expense decreased 26.4% sequentially to $908 thousand as average borrowings declined $29.8 million.
• Minor pointNon-interest-bearing deposits increased to $253.433 million from $246.357 million at June 30, 2026.
• Minor pointConstruction and land development loans grew $27.1 million quarter over quarter.
• Minor pointHome equity lines and loans grew $4.3 million quarter over quarter.
• Minor point. Forward-looking: it has not happened yet and may not happen.Meridian expects strengthened treasury and payments teams to improve its deposit franchise in 2027.

Negative

• Moderate pointNet income fell 10.3% sequentially to $5.2 million, versus $6.659 million a year earlier.
• Moderate pointMortgage banking income declined 20.7% sequentially to $4.937 million.
• Moderate pointMortgage quarterly pre-tax loss was $1.6 million, including a $955 thousand non-operating loan fair-value loss.
• Moderate pointTotal deposits decreased to $2.167 billion from $2.194 billion at June 30, 2026.
• Minor pointDiluted EPS declined to $0.43 from $0.48 sequentially and $0.58 a year earlier.

16 minor points

• Minor pointReturn on average assets fell to 0.80% from 0.90% sequentially and 1.04% a year earlier.
• Minor pointReturn on average equity fell to 9.97% from 11.42% sequentially and 14.42% a year earlier.
• Minor pointMortgage closed loans declined 27% from the prior quarter.
• Minor pointMortgage loans sold decreased $47.4 million sequentially; the sales margin declined 10 basis points.
• Minor pointSBA loan income fell to negative $312 thousand from positive $615 thousand in the second quarter.
• Minor pointOther non-interest income decreased 15.3% sequentially to $866 thousand.
• Minor pointSalaries and employee benefits increased 3.2% sequentially to $13.619 million.
• Minor pointOccupancy and equipment expense increased 4.2% sequentially to $1.221 million.
• Minor pointProfessional fees increased 9.3% sequentially to $1.272 million, reflecting legal expenses related to non-performing loans.
• Minor pointData processing and software expense increased 9.8% sequentially to $2.216 million.
• Minor pointOther non-interest expense increased 13.3% sequentially to $3.531 million.
• Minor pointDeposit interest expense increased 2.1% sequentially to $16.087 million.
• Minor pointSubordinated debenture interest expense increased 1.5% sequentially to $1.022 million.
• Minor pointLoans, net of fees and costs declined to $2.164 billion from $2.178 billion at June 30, 2026.
• Minor pointTotal assets decreased $21.6 million, or 0.8%, from June 30, 2026.
• Minor pointStockholders' equity declined to $203.628 million from $204.810 million at June 30, 2026.

Key Figures

Net income: $5.2 million Diluted earnings per share: $0.43 Net interest margin: 3.77% +5 more

Net income

$5.2 million

Q3 2026; down $600,000 (10.3%) from the prior quarter

Diluted earnings per share

$0.43

Q3 2026

Net interest margin

3.77%

Q3 2026; up 8 basis points from the prior quarter

Non-performing loan reduction

$6.5 million (8%)

Combined reduction from June 30 to September 30, 2026, including $2.7 million settled after quarter-end

Quarterly cash dividend

$0.14 per common share

Declared Oct. 29, 2026; payable Nov. 16 to shareholders of record Nov. 9

Mortgage closed loans

Down 27%

Q3 2026 compared with the prior quarter

Mortgage pre-tax result

$1.6 million loss

Q3 2026; included a non-operating $955,000 loss on a mortgage loan portfolio

Wealth management income

$1.9 million

Q3 2026; up 10.0% from the prior quarter

Previous Dividends,earnings Reports

2 past events · Latest: Jul 30

Same Type 2 events

1. Jul 30

   Quarterly earnings

   24h Move

   -2.0%

   Reported Q2 net income of $5.8 million, diluted EPS of $0.48, and the same $0.14 dividend.

2. Oct 23

   Quarterly earnings

   24h Move

   +2.1%

   Reported Q3 2025 net income of $6.7 million and diluted EPS of $0.58.

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

Key Terms

net interest margin, non-performing loans, tangible common equity ratio, community bank leverage ratio

4 terms

net interest margin financial

"Net interest margin was 3.77%, up 8 basis points from prior quarter."

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

non-performing loans financial

"Non-performing loans decreased $3.8 million from June 30, 2026 to September 30, 2026"

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

tangible common equity ratio financial

"The tangible common equity ratio (TCE) increased to 7.80%"

Tangible common equity ratio measures how much real, loss-absorbing capital common shareholders have relative to a company's tangible assets—calculated by removing intangible items (like goodwill) and preferred equity from total equity and comparing that net amount to tangible assets. Think of it as the thickness of a safety cushion made of solid, visible value rather than accounting entries; investors use it to judge how well a company could withstand losses and protect common shareholders' claims.

community bank leverage ratio financial

"the Community Bank Leverage Ratio for the Bank increased 21 basis points to 9.93%"

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 Not now

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

	Three Months Ended
(Dollars in thousands, except per share data) (Unaudited)	September 30, 2026			June 30, 2026			September 30, 2025
Income:
Net income	$	5,207		$	5,807		$	6,659
Diluted earnings per common share		0.43			0.48			0.58

• Net income for the quarter ended September 30, 2026 was $5.2 million, or $0.43 per diluted share, a decrease of $600 thousand, or 10.3%, from the prior quarter.
  
  
• Return on average assets and return on average equity for the third quarter of 2026 were 0.80% and 9.97%, respectively.
  
  
• Net interest margin was 3.77%, up 8 basis points from prior quarter.
  
  
• Non-performing loans decreased $3.8 million from June 30, 2026 to September 30, 2026 and another $2.7 million settled subsequent to September 30, 2026, resulting in a combined reduction of $6.5 million or 8%.
  
  
• Wealth management income for the third quarter was $1.9 million, up 10.0% over prior quarter.
  
  
• On October 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable November 16, 2026 to shareholders of record as of November 9, 2026.
  
  

Christopher J. Annas, Chairman and CEO commented:

"The Meridian team delivered a solid third quarter and strong net interest margin. Loan balances are generally flat nine months to date, but we actually booked $363 million over the period in lines of credit and term loans. Balances have been impacted partly by strategic paydowns in leasing and SBA, which totaled $43 million for the nine months, as well as competition from PE firms.

The wealth group grew quarterly pre-tax income by 35% over the third quarter of 2025 due to higher AUM, better efficiencies, and a good referral pipeline from our commercial group. Our mortgage group had a down third quarter, which is historically the most productive, as closed loans declined 27% from the prior quarter. Low housing inventory is dogging the industry with higher rates having a lesser impact. Mortgage’s quarterly pre-tax loss of $1.6 million included a non-operating $955 thousand loss on a small portfolio of mortgage loans that are fair-valued quarterly. We continue to make mortgage cost adjustments to align with volume.

We remain intensely focused on resolving non-performing loans without incurring elevated charge-offs. We had improvements in the third quarter, but this takes time and should result in stronger recoveries. We have strengthened our treasury and payments teams with experienced industry professionals in a concentrated effort to improve our deposit franchise and expect this to yield good results in 2027. Our ROA and ROE ratios remain strong despite some headwinds, and we look forward to improvement in the coming year."

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
	(Dollars in thousands, except per share data)
Income:
Net income	$	5,207			$	5,807			$	2,006			$	7,186			$	6,659
Basic earnings per common share		0.44				0.49				0.17				0.62				0.59
Diluted earnings per common share		0.43				0.48				0.17				0.61				0.58
Net interest income		23,436				22,791				23,202				23,627				23,116
Balance Sheet:
Total assets	$	2,571,545			$	2,593,176			$	2,576,581			$	2,561,995			$	2,541,130
Loans, net of fees and costs		2,163,832				2,177,978				2,181,575				2,170,600				2,162,845
Total deposits		2,166,882				2,194,438				2,169,960				2,158,128				2,131,116
Non-interest bearing deposits		253,433				246,357				243,458				245,377				239,614
Stockholders' equity		203,628				204,810				200,225				199,716				188,029
Balance Sheet Average Balances:
Total assets	$	2,567,416			$	2,585,821			$	2,574,268			$	2,588,357			$	2,534,565
Total interest earning assets		2,469,890				2,485,398				2,472,659				2,495,922				2,443,261
Loans, net of fees and costs		2,162,950				2,180,863				2,175,938				2,200,626				2,146,651
Total deposits		2,196,765				2,188,649				2,171,837				2,173,242				2,143,821
Non-interest bearing deposits		261,051				252,600				250,203				256,554				253,374
Stockholders' equity		207,190				203,901				202,577				192,799				183,242
Performance Ratios (Annualized):
Return on average assets		0.80	%			0.90	%			0.32	%			1.10	%			1.04	%
Return on average equity		9.97	%			11.42	%			4.02	%			14.79	%			14.42	%

Income Statement - Third Quarter 2026 Compared to Second Quarter 2026

Third quarter net income decreased $600 thousand, or 10.3%, to $5.2 million due largely to a decrease in non-interest income of $3.2 million, and an increase in non-interest expense of $799 thousand, partially offset by a decrease of $1.8 million in the provision for credit losses, and a decrease in income tax expense of $894 thousand 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)	September 30, 2026			June 30, 2026			$ Change				% Change			Change due to rate				Change due to volume
Interest income:
Cash and cash equivalents	$	279		$	311		$	(32	)		(10.3)%			$	(1	)		$	(31	)
Investment securities - taxable		1,956			1,830			126			6.9	%			43				83
Investment securities - tax exempt(1)		362			393			(31	)		(7.9)%				(28	)			(3	)
Loans held for sale		624			616			8			1.3	%			6				2
Loans held for investment		38,274			37,702			572			1.5	%			734				(162	)
Total loans		38,898			38,318			580			1.5	%			740				(160	)
Total interest income	$	41,495		$	40,852		$	643			1.6	%		$	754			$	(111	)
Interest expense:
Interest-bearing demand deposits	$	1,183		$	1,149		$	34			3.0	%		$	53			$	(19	)
Money market and savings deposits		7,239			7,263			(24	)		(0.3)%				(10	)			(14	)
Time deposits		7,665			7,337			328			4.5	%			175				153
Total interest - bearing deposits		16,087			15,749			338			2.1	%			218				120
Borrowings		908			1,233			(325	)		(26.4)%				11				(336	)
Subordinated debentures		1,022			1,007			15			1.5	%			12				3
Total interest expense		18,017			17,989			28			0.2	%			241				(213	)
Net interest income differential	$	23,478		$	22,863		$	615			2.69	%		$	513			$	102
(1) Reflected on a tax-equivalent basis.

Interest income increased $643 thousand quarter-over-quarter on a tax equivalent basis, driven mainly by an increase in the yield on loans held for investment of 9 basis points, while average balances of loans held for sale and loans held for investment declined over this period. Overall the yield on interest-earnings assets increased 8 basis points and had a positive impact of $754 thousand on interest income, while the average balance of interest earning assets decreased by $15.5 million, having a negative impact to interest income of $111 thousand. The yield on loans improved 7 basis points due to the recording of $388 thousand in previously unaccrued interest income on a $2.5 million residential mortgage non-performing loan that was returned to accrual status during the period and then was subsequently satisfied in full.

Average total loans, excluding residential loans for sale, decreased $18.0 million. The largest drivers were decreases in commercial loans, SBA loans, residential loans, and leases, which on a combined basis decreased $33.8 million on average. Partially offsetting these decreases were increases of $8.7 million in commercial real estate average balances, a $3.0 million increase in the average balance of construction loans, along with an increase in average home equity loan balances of $3.1 million.

Interest expense overall increased $28 thousand, quarter-over-quarter, as the increase in the cost of interest-bearing deposits was largely offset by a decline in average balances of certain deposit types and borrowings. Interest expense on total deposits increased $338 thousand, while interest expense on borrowings decreased $325 thousand.

The cost of interest-bearing demand deposits increased 11 basis points while time deposit costs increased by 7 basis points, driving the $218 thousand increase in interest expense on interest-bearing deposits. During the period average balances of interest-bearing checking accounts decreased $3.2 million, and money market and savings deposit balances decreased $9.3 million, while time deposit average balances increased $12.2 million, nearly netting out. Non-interest bearing deposits increased $9 million on average during the period and borrowings decreased $29.8 million on average.

Overall the net interest margin increased to 3.77%, compared to the prior quarter, driven by the increase in yield on loans held for investment, an increase in average non-interest bearing deposits, partially offset by an increase in cost of funds.

Provision for Credit Losses

For the third quarter the overall provision for credit losses fell by $1.8 million to $1.1 million, compared with $3.0 million in the second quarter. The primary reasons for the lower level of provision expense was a lower level of loan charge-offs and a decline in loan growth quarter over quarter. Charge-offs in the third quarter declined by $414 thousand help to drive down the provision.

Non-interest income

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

	Three Months Ended
(Dollars in thousands)	September 30, 2026				June 30, 2026			$ Change				% Change
Mortgage banking income(1)	$	4,937			$	6,229		$	(1,292	)		(20.7)%
Wealth management income		1,877				1,706			171			10.0	%
SBA loan income		(312	)			615			(927	)		(150.7)%
Earnings on investment in life insurance		292				245			47			19.2	%
Net change in the fair value of loans held-for-investment		(955	)			65			(1,020	)		(1569.2)%
Other		866				1,023			(157	)		(15.3)%
Total non-interest income	$	6,705			$	9,883		$	(3,178	)		(32.2)%
(1) Includes fair value change on mortgages held for sale and related hedging derivatives.

Total non-interest income decreased $3.2 million, or 32.2%, quarter-over-quarter as mortgage banking income decreased $1.3 million, there was a decrease of $1.0 million in the fair value of loans held-for-investment, and SBA loan income decreased $927 thousand.

The drivers of the decrease in mortgage banking income were a decline of $47.4 million in total mortgage loans sold, combined with a decrease of 10 basis points in the margin on sales. There was also a $1.0 million unfavorable change in the fair value of loans held-for-investment due largely to the rapid rise in the 10 year U.S. Treasury rate from June 30, 2026 to September 30, 2026.

SBA loan income decreased $927 thousand due to the decrease in SBA loans sold. $1.5 million of SBA loans were sold during the quarter-ended September 30, 2026 with a gross gain of $110 thousand, compared to $11.9 million in SBA loans sold for the quarter-ended June 30, 2026 with a gross gain of $946 thousand, a decrease in gain of $837 thousand. The decline in SBA loan income was also impacted by an increase in amortization expense period over period.

Wealth management income was $1.9 million for the quarter, up 10.0% from the prior quarter due to the double digit improvement in stock market indices at the end of the prior quarter, which drives a large percentage of fee income calculations.

Non-interest expense

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

	Three Months Ended
(Dollars in thousands)	September 30, 2026			June 30, 2026			$ Change				% Change
Salaries and employee benefits	$	13,619		$	13,193		$	426			3.2	%
Occupancy and equipment		1,221			1,172			49			4.2	%
Professional fees		1,272			1,164			108			9.3	%
Data processing and software		2,216			2,018			198			9.8	%
Advertising and promotion		934			1,317			(383	)		(29.1)%
Pennsylvania bank shares tax		233			246			(13	)		(5.3)%
Other		3,531			3,117			414			13.3	%
Total non-interest expense	$	23,026		$	22,227		$	799			3.6	%

Salaries and benefits increased $426 thousand primarily due to an increase in salaries and health insurance costs for bank and wealth segments. Professional fees increased $108 thousand due to legal expenses related to non-performing loans, and data processing and software expense increased $198 thousand due to an increase in customer transaction volume quarter over quarter.

Advertising and promotion costs decreased $383 thousand, reflecting a decrease in special events in the current quarter, as the prior quarter is generally seasonally higher. Other expense increased $414 thousand largely due to an increase in OREO expenses.

Income Taxes

We recorded a $778 thousand income tax provision for the quarter-ended September 30, 2026, compared to $1.7 million for the quarter-end June 30, 2026. The effective tax rate was 13.0% for the quarter-ended September 30, 2026 compared to 22.4% for the quarter-ended June 30, 2026. This decrease in effective tax rate was primarily driven by the impact of $10 million in renewable energy tax credits purchased during the quarter, which reduced the third quarter income tax expense by approximately $600 thousand.

Balance Sheet - September 30, 2026 Compared to June 30, 2026

Total assets decreased $21.6 million, or 0.8%, to $2.6 billion as of September 30, 2026 from $2.6 billion as of June 30, 2026.

Total portfolio loans decreased $13.7 million, or 0.6% quarter-over-quarter. While there was growth of $27.1 million in construction and land development loans and $4.3 million in home equity lines and loans, these increases were offset by declines of $13.9 million in commercial mortgage loans, $10.7 million in small business loans, $9.7 million in commercial, industrial & other finance receivables, and $6.5 million in lease balances.

Total deposits decreased $27.6 million, or 1.3% quarter-over-quarter, led by an decrease of $34.6 million in interest-bearing deposits. Money market accounts and savings accounts decreased a combined $96.0 million, with $52 million of collateralized deposits being migrated from money market accounts to certificates of deposit products for customer efficiency. Non-interest bearing accounts increased $7.1 million or 2.9%, while interest bearing demand deposits increased $9.0 million, and borrowings increased $7.2 million, or 6.7% quarter-over-quarter.

Total stockholders’ equity decreased by $1.2 million from June 30, 2026, to $203.6 million as of September 30, 2026. Changes to equity for the quarter included net income of $5.2 million, partially offset by dividends paid of $1.7 million, and a decrease of $5.0 million in other comprehensive income. The tangible common equity ratio (TCE) increased to 7.80% and the Community Bank Leverage Ratio for the Bank increased 21 basis points to 9.93% as of September 30, 2026.

Asset Quality Summary

Non-performing loans decreased $3.8 million, or 4.6%, to $78.3 million as of September 30, 2026 compared to $82.1 million at June 30, 2026, with the major drivers of this decline from land development loans ($1.8 million), SBA loans ($1.0 million), and commercial mortgage loans ($807 thousand). The decrease in land development loans was the result of a $1.8 million loan being reclassified to loans held for sale as of September 30, 2026 due to pending note sale, while the decrease in commercial mortgage non-performing loans was the result of the reclassification of a loan relationship out of non-performing as these loans were in the process of collection as of September 30, 2026. The decline in non-performing SBA loans was partly due to an increase in charge-offs during the third quarter, combined with a lower level of SBA loans added to non-performing loan category in the third quarter, compared to the second quarter. SBA loans make up $23.6 million of total non-performing loans, with $13.6 million, or 57.6%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with 48.1%, of total non-performing SBA loans having been originated in 2020-2021 when rates were over 500 basis points lower.

The ratio of non-performing loans to total loans as of September 30, 2026 was 3.55%, down from 3.68% as of June 30, 2026, due to the decrease in non-performing loans detailed above. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio (a non-GAAP measure) was 2.93% as of September 30, 2026. As of September 30, 2026 there were specific reserves of $3.0 million against individually evaluated loans, a decrease of $237 thousand from June 30, 2026. Non-performing loans decreased $3.8 million from June 30, 2026 to September 30, 2026 and another $2.7 million settled subsequent to September 30, 2026, a combined reduction of $6.5 million or 8%.

Net charge-offs decreased to $1.9 million, or 0.09% of total average loans for the third quarter, compared to net charge-offs of $2.6 million, or 0.12%, for the second quarter. Third quarter charge-offs were driven by $934 thousand in SBA loans, $1.2 million in finance receivables, $413 thousand of small ticket equipment leases, and $125 thousand in commercial loans. Partially offsetting third quarter charge-offs were recoveries of $739 thousand mainly between SBA loans, finance receivables, and leases.

The ratio of allowance for credit losses to total loans held for investment was 0.96% as of September 30, 2026, compared to 0.99% reported as of June 30, 2026. The decline in this coverage ratio was due to a large percentage of charge-offs for the quarter ended September 30, 2026 being against loans that were specifically reserved for in prior quarters.

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
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Earnings and Per Share Data:
Net income	$	5,207			$	5,807			$	2,006			$	7,186			$	6,659
Basic earnings per common share	$	0.44			$	0.49			$	0.17			$	0.62			$	0.59
Diluted earnings per common share	$	0.43			$	0.48			$	0.17			$	0.61			$	0.58
Common shares outstanding		11,937				11,924				11,879				11,826				11,517
Performance Ratios:
Return on average assets(2)		0.80	%			0.90	%			0.32	%			1.10	%			1.04	%
Return on average equity(2)		9.97				11.42				4.02				14.79				14.42
Net interest margin (tax-equivalent)(2)		3.77				3.69				3.82				3.77				3.77
Yield on earning assets (tax-equivalent)(2)		6.67				6.59				6.69				6.82				7.01
Cost of funds(2)		3.08				3.08				3.04				3.23				3.42
Efficiency ratio		76.39	%			68.03	%			66.66	%			63.25	%			65.15	%
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.09	%			0.12	%			0.35	%			0.16	%			0.09	%
Non-performing loans to total loans		3.55				3.68				2.64				2.50				2.53
Non-performing assets to total assets		3.23				3.40				2.51				2.38				2.32
Allowance for credit losses to:
Total loans and other finance receivables		0.96				0.99				0.97				0.99				1.01
Total loans and other finance receivables (excluding loans at fair value)(1)		0.96				0.99				0.98				1.00				1.01
Non-performing loans		26.42	%			26.15	%			36.23	%			39.18	%			39.37	%
Capital Ratios:
Book value per common share	$	17.06			$	17.18			$	16.86			$	16.89			$	16.33
Tangible book value per common share	$	16.78			$	16.89			$	16.57			$	16.59			$	16.02
Total equity/Total assets		7.92	%			7.90	%			7.77	%			7.80	%			7.40	%
Tangible common equity/Tangible assets - Corporation(1)		7.80				7.78				7.65				7.67				7.27
Tangible common equity/Tangible assets - Bank(1)		9.64				9.51				9.38				9.41				9.16
Tier 1 leverage ratio - Bank		9.93				9.72				9.58				9.50				9.41
Common tier 1 risk-based capital ratio - Bank		10.87				10.65				10.52				10.66				10.52
Tier 1 risk-based capital ratio - Bank		10.87				10.65				10.52				10.66				10.52
Total risk-based capital ratio - Bank		11.83	%			11.64	%			11.51	%			11.65	%			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										NineMonths Ended
	September 30, 2026				June 30, 2026			September 30, 2025			September 30, 2026				September 30, 2025
Interest income:
Loans and other finance receivables, including fees	$	38,898			$	38,318		$	40,477		$	115,360			$	115,723
Securities - taxable		1,956				1,830			1,895			5,633				5,380
Securities - tax-exempt		320				321			325			964				933
Cash and cash equivalents		279				311			412			988				1,452
Total interest income		41,453				40,780			43,109			122,945				123,488
Interest expense:
Deposits		16,087				15,749			17,418			47,059				51,587
Borrowings and subordinated debentures		1,930				2,240			2,575			6,457				7,850
Total interest expense		18,017				17,989			19,993			53,516				59,437
Net interest income		23,436				22,791			23,116			69,429				64,051
Provision for credit losses		1,130				2,968			2,850			11,591				11,865
Net interest income after provision for credit losses		22,306				19,823			20,266			57,838				52,186
Non-interest income:
Mortgage banking income(1)		4,937				6,229			5,802			15,281				15,314
Wealth management income		1,877				1,706			1,610			5,312				4,637
SBA loan income		(312	)			615			1,431			453				4,167
Earnings on investment in life insurance		292				245			246			809				708
Net gain (loss) on sale of MSRs		—				—			—			(159	)			415
Net change in the fair value of loans held-for-investment		(955	)			65			213			(929	)			573
Other		866				1,023			651			2,858				2,751
Total non-interest income		6,705				9,883			9,953			23,625				28,565
Non-interest expense:
Salaries and employee benefits		13,619				13,193			13,613			39,198				38,177
Occupancy and equipment		1,221				1,172			991			3,576				3,366
Professional fees		1,272				1,164			1,092			3,410				3,019
Data processing and software		2,216				2,018			1,865			6,207				5,050
Advertising and promotion		934				1,317			877			2,943				2,933
Pennsylvania bank shares tax		233				246			254			737				792
Other		3,531				3,117			2,854			9,340				8,309
Total non-interest expense		23,026				22,227			21,546			65,411				61,646
Income before income taxes		5,985				7,479			8,673			16,052				19,105
Income tax expense		778				1,672			2,014			3,032				4,455
Net income	$	5,207			$	5,807		$	6,659		$	13,020			$	14,650
Basic earnings per common share	$	0.44			$	0.49		$	0.59		$	1.10			$	1.30
Diluted earnings per common share	$	0.43			$	0.48		$	0.58		$	1.07			$	1.28
Basic weighted average shares outstanding		11,900				11,859			11,325			11,857				11,252
Diluted weighted average shares outstanding		12,222				12,174			11,540			12,183				11,458
(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)
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Assets:
Cash and due from banks	$	11,868			$	11,209			$	12,458			$	10,358			$	12,605
Interest-bearing deposits at other banks		16,709				24,998				15,811				25,420				27,384
Cash and cash equivalents		28,577				36,207				28,269				35,778				39,989
Securities available-for-sale, at fair value		203,602				200,552				196,012				193,457				194,268
Securities held-to-maturity, at amortized cost		32,395				32,445				32,494				32,544				32,593
Equity investments		2,061				2,146				2,137				2,166				2,150
Commercial loans held for sale		1,791				—				—				—				—
Mortgage loans held for sale		42,076				54,898				38,960				33,762				28,016
Loans and other finance receivables, net of fees and costs		2,163,832				2,177,978				2,181,575				2,170,600				2,162,845
Allowance for credit losses		(20,690	)			(21,463	)			(21,252	)			(21,573	)			(21,794	)
Loans and other finance receivables, net of the allowance for credit losses		2,143,142				2,156,515				2,160,323				2,149,027				2,141,051
Restricted investment in bank stock		7,129				7,484				7,699				7,811				8,350
Bank premises and equipment, net		12,261				12,437				12,298				12,402				12,413
Bank owned life insurance		31,497				31,205				30,959				30,687				30,421
Accrued interest receivable		11,836				10,680				11,015				10,724				10,944
OREO and other repossessed assets		4,853				6,081				6,009				5,997				3,714
Deferred income taxes		6,103				4,535				4,548				4,215				4,989
Servicing assets		3,307				3,642				3,694				3,932				3,845
Goodwill		899				899				899				899				899
Intangible assets		2,410				2,461				2,512				2,563				2,614
Other assets		37,606				30,989				38,753				36,031				24,874
Total assets	$	2,571,545			$	2,593,176			$	2,576,581			$	2,561,995			$	2,541,130
Liabilities:
Deposits:
Non-interest bearing	$	253,433			$	246,357			$	243,458			$	245,377			$	239,614
Interest bearing:
Interest checking		160,206				151,235				157,151				157,360				151,973
Money market and savings deposits		937,082				1,033,043				1,013,533				1,023,290				996,126
Time deposits		816,161				763,803				755,818				732,101				743,403
Total interest-bearing deposits		1,913,449				1,948,081				1,926,502				1,912,751				1,891,502
Total deposits		2,166,882				2,194,438				2,169,960				2,158,128				2,131,116
Borrowings		115,219				108,032				120,838				117,338				137,265
Subordinated debentures		49,736				49,705				49,675				49,853				49,822
Accrued interest payable		4,666				5,587				6,620				6,531				7,095
Other liabilities		31,414				30,604				29,263				30,429				27,803
Total liabilities		2,367,917				2,388,366				2,376,356				2,362,279				2,353,101
Stockholders’ equity:
Common stock		13,940				13,927				13,882				13,830				13,521
Surplus		91,397				91,137				90,885				90,352				85,122
Treasury stock		(26,079	)			(26,079	)			(26,079	)			(26,079	)			(26,079	)
Unearned common stock held by ESOP		(1,232	)			(1,232	)			(1,232	)			(1,232	)			(1,006	)
Retained earnings		136,149				132,614				128,472				128,124				122,376
Accumulated other comprehensive loss		(10,547	)			(5,557	)			(5,703	)			(5,279	)			(5,905	)
Total stockholders’ equity		203,628				204,810				200,225				199,716				188,029
Total liabilities and stockholders’ equity	$	2,571,545			$	2,593,176			$	2,576,581			$	2,561,995			$	2,541,130

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
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Interest income	$	41,453		$	40,780		$	40,712		$	42,826		$	43,109
Interest expense		18,017			17,989			17,510			19,199			19,993
Net interest income		23,436			22,791			23,202			23,627			23,116
Provision for credit losses		1,130			2,968			7,493			3,287			2,850
Non-interest income		6,705			9,883			7,037			10,615			9,953
Non-interest expense		23,026			22,227			20,158			21,658			21,546
Income before income tax expense		5,985			7,479			2,588			9,297			8,673
Income tax expense		778			1,672			582			2,111			2,014
Net Income	$	5,207		$	5,807		$	2,006		$	7,186		$	6,659
Basic weighted average shares outstanding		11,900			11,859			11,811			11,543			11,325
Basic earnings per common share	$	0.44		$	0.49		$	0.17		$	0.62		$	0.59
Diluted weighted average shares outstanding		12,222			12,174			12,153			11,771			11,540
Diluted earnings per common share	$	0.43		$	0.48		$	0.17		$	0.61		$	0.58

	Segment Information
	ThreeMonths EndedSeptember 30, 2026																ThreeMonths EndedSeptember 30, 2025
(dollars in thousands)	Bank				Wealth				Mortgage				Total				Bank				Wealth				Mortgage				Total
Net interest income	$	23,239			$	59			$	138			$	23,436			$	22,972			$	43			$	101			$	23,116
Provision for credit losses		1,130				—				—				1,130				2,850				—				—				2,850
Net interest income after provision		22,109				59				138				22,306				20,122				43				101				20,266
Non-interest income		855				1,877				3,973				6,705				2,363				1,610				5,980				9,953
Non-interest expense		16,029				1,247				5,750				23,026				14,831				1,141				5,574				21,546
Income before income taxes	$	6,935			$	689			$	(1,639	)		$	5,985			$	7,654			$	512			$	507			$	8,673
Efficiency ratio		67	%			64	%			140	%			76	%			59	%			69	%			92	%			65	%
	NineMonths EndedSeptember 30, 2026																NineMonths EndedSeptember 30, 2025
(dollars in thousands)	Bank				Wealth				Mortgage				Total				Bank				Wealth				Mortgage				Total
Net interest income	$	68,910			$	177			$	342			$	69,429			$	63,701			$	116			$	234			$	64,051
Provision for credit losses		11,591				—				—				11,591				11,865				—				—				11,865
Net interest income after provision		57,319				177				342				57,838				51,836				116				234				52,186
Non-interest income		4,098				5,313				14,214				23,625				7,304				4,638				16,623				28,565
Non-interest expense		45,042				3,415				16,954				65,411				42,639				2,908				16,099				61,646
Income before income taxes	$	16,375			$	2,075			$	(2,398	)		$	16,052			$	16,501			$	1,846			$	758			$	19,105
Efficiency ratio		62	%			62	%			116	%			70	%			60	%			61	%			96	%			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									NineMonths Ended
(Dollars in thousands, except per share data, Unaudited)	September 30, 2026			June 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Income before income tax expense	$	5,985		$	7,479		$	8,673		$	16,053		$	19,105
Provision for credit losses		1,130			2,968			2,850			11,591			11,865
Pre-provision net revenue	$	7,115		$	10,447		$	11,523		$	27,644		$	30,970

	Pre-Provision Net Revenue Reconciliation
	Three Months Ended										NineMonths Ended
(Dollars in thousands, except per share data, Unaudited)	September 30, 2026				June 30, 2026			September 30, 2025			September 30, 2026				September 30, 2025
Bank	$	8,065			$	9,387		$	10,504		$	27,966			$	28,366
Wealth		689				574			512			2,075				1,846
Mortgage		(1,639	)			486			507			(2,398	)			758
Pre-provision net revenue	$	7,115			$	10,447		$	11,523		$	27,643			$	30,970

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Allowance for credit losses (GAAP)	$	20,690			$	21,463			$	21,252			$	21,573			$	21,794
Loans and other finance receivables (GAAP)		2,163,832				2,177,978				2,181,575				2,170,600				2,162,845
Less: Loans at fair value		(13,330	)			(13,619	)			(14,090	)			(14,396	)			(14,454	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,150,502			$	2,164,359			$	2,167,485			$	2,156,204			$	2,148,391
ACL to loans and other finance receivables (GAAP)		0.96	%			0.99	%			0.97	%			0.99	%			1.01	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		0.96	%			0.99	%			0.98	%			1.00	%			1.01	%

	Non-performing Loans, Excluding the Guaranteed Portion of SBA Loans
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Non-performing loans (GAAP)	$	78,314			$	82,073			$	58,659			$	55,060			$	55,357
Less: Guaranteed portion of SBA loans classified as non-performing		(13,573	)			(12,906	)			(12,906	)			(13,177	)			(11,811	)
Non-performing loans, excluding guaranteed portion of SBA loans (non-GAAP)	$	64,741				69,167				45,753			$	41,883				43,546
Total loans and leases (1)	$	2,205,908				2,232,876				2,220,535			$	2,204,362				2,190,861
Non-performing loans to total loans and leases (GAAP)		3.55	%			3.68	%			2.64	%			2.50	%			2.53	%
Non-performing loans (excluding guaranteed portion of SBA loans) to total loans and leases (non-GAAP)		2.93	%			3.10	%			2.06	%			1.90	%			1.99	%

	Tangible Common Equity Ratio Reconciliation - Corporation
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total stockholders' equity (GAAP)	$	203,628			$	204,810			$	200,225			$	199,716			$	188,029
Less: Goodwill and intangible assets		(3,309	)			(3,360	)			(3,411	)			(3,462	)			(3,513	)
Tangible common equity (non-GAAP)		200,319				201,450				196,814				196,254				184,516
Total assets (GAAP)		2,571,545				2,593,176				2,576,581				2,561,995				2,541,130
Less: Goodwill and intangible assets		(3,309	)			(3,360	)			(3,411	)			(3,462	)			(3,513	)
Tangible assets (non-GAAP)	$	2,568,236			$	2,589,816			$	2,573,170			$	2,558,533			$	2,537,617
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)		7.80	%			7.78	%			7.65	%			7.67	%			7.27	%

	Tangible Common Equity Ratio Reconciliation - Bank
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Total stockholders' equity (GAAP)	$	250,415			$	249,468			$	244,621			$	244,064			$	236,038
Less: Goodwill and intangible assets		(3,309	)			(3,360	)			(3,411	)			(3,462	)			(3,513	)
Tangible common equity (non-GAAP)		247,106				246,108				241,210				240,602				232,525
Total assets (GAAP)		2,567,645				2,591,551				2,575,135				2,560,485				2,541,395
Less: Goodwill and intangible assets		(3,309	)			(3,360	)			(3,411	)			(3,462	)			(3,513	)
Tangible assets (non-GAAP)	$	2,564,336			$	2,588,191			$	2,571,724			$	2,557,023			$	2,537,882
Tangible common equity to tangible assets ratio - Bank (non-GAAP)		9.64	%			9.51	%			9.38	%			9.41	%			9.16	%
	Tangible Book Value Reconciliation
	September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Book value per common share	$	17.06			$	17.18			$	16.86			$	16.89			$	16.33
Less: Impact of goodwill /intangible assets		0.28				0.29				0.29				0.30				0.31
Tangible book value per common share	$	16.78			$	16.89			$	16.57			$	16.59			$	16.02

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Meridian's third-quarter 2026 earnings and diluted EPS?

Meridian reported $5.2 million in net income and $0.43 diluted EPS for the quarter ended September 30, 2026. Net income decreased 10.3% from the prior quarter. Diluted EPS compared with $0.48 in the second quarter and $0.58 in the third quarter of 2025.

When will Meridian pay its $0.14 quarterly dividend?

Meridian will pay its $0.14 per common share quarterly cash dividend on November 16, 2026, to shareholders of record as of November 9, 2026. The board declared the dividend on October 29, 2026.

Why did Meridian's third-quarter 2026 effective tax rate fall?

Meridian's effective tax rate fell primarily because it purchased $10 million in renewable energy tax credits during the quarter. Those credits reduced third-quarter income tax expense by approximately $600 thousand. The effective tax rate was 13.0%, compared with 22.4% in the second quarter.

What contributed to Meridian's higher loan yield in the third quarter of 2026?

A $388 thousand recognition of previously unaccrued interest contributed to the 7-basis-point improvement in loan yield. The interest related to a $2.5 million residential mortgage non-performing loan returned to accrual status during the quarter and subsequently satisfied in full.