[8-K] Meridian Corp Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Meridian Corporation reported mixed first quarter 2026 results with continued dividend support. Net income was $4.7 million, or $0.39 per diluted share, down from $7.2 million in the prior quarter but up from $2.4 million a year earlier. Pre-provision net revenue was $10.1 million, higher than Q1 2025, while the tax-equivalent net interest margin improved to 3.82% as lower funding costs offset slightly lower asset yields. Total assets were $2.6 billion and loans were $2.2 billion, with modest quarter-over-quarter growth led by commercial and construction lending.
Credit costs remained elevated: the provision for credit losses was $4.0 million, net charge-offs rose to 0.18% of average loans, and non-performing loans were 2.50% of total loans, unchanged from year-end. The allowance for credit losses equaled 1.00% of loans excluding fair value loans. Capital stayed solid with a tangible common equity ratio of 7.75% at the holding company and a Tier 1 leverage ratio of 9.69% at the bank. The Board declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026 to shareholders of record on May 4, 2026.
Positive
- None.
Negative
- None.
Insights
Q1 shows stronger core earnings than a year ago but weaker than Q4, with solid capital and elevated credit costs.
Meridian Corporation generated net income of $4.7 million in Q1 2026 versus $2.4 million in Q1 2025, while diluted EPS rose to $0.39. Pre-provision net revenue reached $10.1 million, up from $8.4 million a year earlier, indicating healthier underlying earnings capacity even as reported profits softened compared with Q4’s $7.2 million.
Net interest income of $23.2 million benefited from a higher tax-equivalent net interest margin of 3.82%, as the cost of funds declined to 3.04% and interest expense fell by $1.7 million quarter-over-quarter. However, total non-interest income dropped 33.7% to $7.0 million, mainly from lower mortgage banking and SBA loan sale income, which pulled overall earnings down sequentially.
Asset quality remains a key swing factor. Non-performing loans were 2.50% of total loans, and net charge-offs rose to 0.18% of average loans, driven by SBA and leasing portfolios. The allowance for credit losses stayed at 1.00% of loans excluding fair value, while the bank’s Tier 1 leverage ratio was 9.69% as of March 31, 2026. A quarterly dividend of $0.14 per share continues, reflecting management’s confidence in capital strength despite ongoing credit normalization.
8-K Event Classification
4 items: 2.02, 7.01, 8.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Ident. No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(484) 568-5000 Registrant’s telephone number, including area code | ||||||||||||||
| Not Applicable | ||||||||||||||
| (Former name or former address, if changed since last report.) | ||||||||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||||||||||||
Item 2.02. Results of Operations and Financial Condition.
On April 23, 2026 Meridian Corporation issued a press release discussing the Corporation’s First Quarter 2026 Results. A copy is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto and incorporated by reference into Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibit attached hereto, shall not be deemed incorporated by reference into any of the Corporation’s reports or filings with the SEC under the Securities Exchange Act of 1933, as amended (the "Securities Act"), or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 7.01. Regulation FD Disclosures.
In connection with the issuance of its earnings for the three months ended March 31, 2026, Meridian Corporation has also made available on its website materials that contain supplemental information about the Corporation's financial results (“Earnings Supplement”). A copy of the earnings supplement is attached hereto as Exhibit 99.2 and is incorporated by reference in this Item 7.01. The information contained in this Item 7.01 of this Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Events.
Quarterly Dividend
On April 23, 2026, Meridian Corporation’s Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026, to shareholders of record as of May 4, 2026.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is furnished herewith:
99.1 Press Release, issued April 23, 2026
99.2 Earnings Supplement, issued April 23, 2026
EXHIBIT INDEX
| Exhibit No. | Description of Exhibit | |||||||
99.1 | Press Release, issued April 23, 2026 | |||||||
99.2 | Earnings Supplement, issued April 23, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MERIDIAN CORPORATION (Registrant) | ||||||||||||||
Dated: April 23, 2026 | ||||||||||||||
| By: | /s/ Denise Lindsay | |||||||||||||
| Denise Lindsay | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
Exhibit 99.1
Meridian Corporation Reports First Quarter 2026 Results and Announces a Quarterly Dividend of $0.14 per Common Share.
MALVERN, PA., April 23, 2026 — Meridian Corporation (Nasdaq: MRBK) today reported:
| Three Months Ended | |||||||||||||||||
| (Dollars in thousands, except per share data)(Unaudited) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||
Income: | |||||||||||||||||
Net income | $ | 4,714 | $ | 7,186 | $ | 2,399 | |||||||||||
| Diluted earnings per common share | 0.39 | 0.61 | 0.21 | ||||||||||||||
Pre-provision net revenue (PPNR) (1) | 10,081 | 12,584 | 8,357 | ||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix | |||||||||||||||||
•Net income for the quarter ended March 31, 2026 was $4.7 million, or $0.39 per diluted share, down $2.5 million, or 34%, from prior quarter.
•Pre-provision net revenue1 for the quarter was $10.1 million, an improvement of $1.7 million, or 21%, from Q1'2025.
•Net interest margin improved to 3.82% for the first quarter of 2026 compared to the prior quarter, while the loan yield declined to 7.03%, and cost of funds declined to 3.04% over the same period.
•Return on average assets and return on average equity for the first quarter of 2026 were 0.74% and 9.44%, respectively.
•Total assets at March 31, 2026 were $2.6 billion, compared to $2.6 billion at December 31, 2025 and $2.5 billion at March 31, 2025.
•Commercial loans, excluding leases, increased $17.9 million, or 1% from prior quarter.
•On April 23, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026 to shareholders of record as of May 4, 2026.
Christopher J. Annas, Chairman and CEO commented:
“Meridian’s first quarter 2026 earnings totaled $4.7 million, nearly doubling from Q1'2025, resulting from continued improvement in the net interest margin to 3.82% for the first quarter 2026 from 3.46% in Q1'2025. The margin improvement is coming from deposit repricing and some repositioning in the deposit base. SBA loan sale income was down significantly after a management change, but we expect a rebound towards year end. Mortgage banking income (loss) was similar to Q1'2025 with seasonality, and if housing inventory continues to improve we’ll achieve increased originations this year. Pre‑provision net revenue increased nearly 20% year over year, underscoring the durability of our underlying operating performance.
Credit costs remained elevated during the quarter, driven largely by charge‑offs in our SBA and leasing portfolios that trace back to loans originated during the low‑rate environment of 2020 and 2021. We are actively working these credits through restructurings, liquidations, and recoveries, and more than half of our non‑performing SBA balances carry government guarantees. While the remediation process is neither fast nor linear, we have a focused approach to addressing these exposures.
Commercial loan growth was slower during the quarter, as our C&I group experienced some big payoffs, but we remain confident in achieving another year of double digit growth. Our capital position strengthened further, tangible book value increased, and our balance sheet remains well positioned to absorb credit normalization while continuing to invest in disciplined growth and return capital to shareholders.”
1
Exhibit 99.1
Select Condensed Financial Information
As of or for the three months ended (Unaudited) | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| Income: | |||||||||||||||||||||||||||||
Net income | $ | 4,714 | $ | 7,186 | $ | 6,659 | $ | 5,592 | $ | 2,399 | |||||||||||||||||||
| Basic earnings per common share | 0.40 | 0.62 | 0.59 | 0.50 | 0.21 | ||||||||||||||||||||||||
| Diluted earnings per common share | 0.39 | 0.61 | 0.58 | 0.49 | 0.21 | ||||||||||||||||||||||||
Net interest income | 23,202 | 23,627 | 23,116 | 21,159 | 19,776 | ||||||||||||||||||||||||
| Balance Sheet: | |||||||||||||||||||||||||||||
| Total assets | $ | 2,579,289 | $ | 2,561,995 | $ | 2,541,130 | $ | 2,510,938 | $ | 2,528,888 | |||||||||||||||||||
Loans, net of fees and costs | 2,185,442 | 2,170,600 | 2,162,845 | 2,108,250 | 2,071,675 | ||||||||||||||||||||||||
| Total deposits | 2,169,960 | 2,158,128 | 2,131,116 | 2,110,374 | 2,128,742 | ||||||||||||||||||||||||
| Non-interest bearing deposits | 243,458 | 245,377 | 239,614 | 237,042 | 323,485 | ||||||||||||||||||||||||
Stockholders' equity | 202,933 | 199,716 | 188,029 | 178,020 | 173,568 | ||||||||||||||||||||||||
Balance Sheet Average Balances: | |||||||||||||||||||||||||||||
| Total assets | $ | 2,574,298 | $ | 2,588,357 | $ | 2,534,565 | $ | 2,491,625 | $ | 2,420,571 | |||||||||||||||||||
| Total interest earning assets | 2,472,702 | 2,495,922 | 2,443,261 | 2,404,952 | 2,330,224 | ||||||||||||||||||||||||
Loans, net of fees and costs | 2,175,981 | 2,200,626 | 2,146,651 | 2,113,411 | 2,039,676 | ||||||||||||||||||||||||
| Total deposits | 2,171,837 | 2,173,242 | 2,143,821 | 2,095,028 | 2,036,208 | ||||||||||||||||||||||||
| Non-interest bearing deposits | 250,203 | 256,554 | 253,374 | 249,745 | 244,161 | ||||||||||||||||||||||||
Stockholders' equity | 202,607 | 192,799 | 183,242 | 176,945 | 174,734 | ||||||||||||||||||||||||
| Performance Ratios (Annualized): | |||||||||||||||||||||||||||||
Return on average assets | 0.74 | % | 1.10 | % | 1.04 | % | 0.90 | % | 0.40 | % | |||||||||||||||||||
Return on average equity | 9.44 | % | 14.79 | % | 14.42 | % | 12.68 | % | 5.57 | % | |||||||||||||||||||
Income Statement - First Quarter 2026 Compared to Fourth Quarter 2025
First quarter net income decreased $2.5 million, or 34.4%, to $4.7 million due largely to a decrease in non-interest income of $3.6 million, a decrease in net interest income of $425 thousand, and an increase of $712 thousand in the provision for credit losses, while non-interest expense decreased $1.5 million over the prior quarter. Income tax expense decreased $743 thousand over the prior quarter. Detailed explanations of the major categories of income and expense follow below.
2
Exhibit 99.1
Net Interest income
The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | % Change | Change due to rate | Change due to volume | |||||||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 398 | $ | 348 | $ | 50 | 14.4 | % | $ | (28) | $ | 78 | |||||||||||||||||||||||
| Investment securities - taxable | 1,847 | 1,891 | (44) | (2.3) | % | (47) | 3 | ||||||||||||||||||||||||||||
| Investment securities - tax exempt (1) | 396 | 396 | — | — | % | — | — | ||||||||||||||||||||||||||||
| Loans held for sale | 338 | 500 | (162) | (32.4) | % | (16) | (146) | ||||||||||||||||||||||||||||
| Loans held for investment | 37,806 | 39,764 | (1,958) | (4.9) | % | (1,173) | (785) | ||||||||||||||||||||||||||||
| Total loans | 38,144 | 40,264 | (2,120) | (5.3) | % | (1,189) | (931) | ||||||||||||||||||||||||||||
| Total interest income | $ | 40,785 | $ | 42,899 | $ | (2,114) | (4.9) | % | $ | (1,264) | $ | (850) | |||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,040 | $ | 1,186 | $ | (146) | (12.3) | % | $ | (114) | $ | (32) | |||||||||||||||||||||||
| Money market and savings deposits | 7,070 | 7,942 | (872) | (11.0) | % | (844) | (28) | ||||||||||||||||||||||||||||
| Time deposits | 7,113 | 7,454 | (341) | (4.6) | % | (408) | 67 | ||||||||||||||||||||||||||||
| Total interest - bearing deposits | 15,223 | 16,582 | (1,359) | (8.2) | % | (1,366) | 7 | ||||||||||||||||||||||||||||
| Borrowings | 1,293 | 1,568 | (275) | (17.5) | % | 6 | (281) | ||||||||||||||||||||||||||||
| Subordinated debentures | 994 | 1,049 | (55) | (5.2) | % | (52) | (3) | ||||||||||||||||||||||||||||
| Total interest expense | 17,510 | 19,199 | (1,689) | (8.8) | % | (1,412) | (277) | ||||||||||||||||||||||||||||
| Net interest income differential | $ | 23,275 | $ | 23,700 | $ | (425) | (1.79) | % | $ | 148 | $ | (573) | |||||||||||||||||||||||
| (1) Reflected on a tax-equivalent basis. | |||||||||||||||||||||||||||||||||||
Interest income decreased $2.1 million quarter-over-quarter on a tax equivalent basis, driven by lower yields and average balances of interest earning assets. The yield on interest-earnings assets decreased 13 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets decreased by $23.2 million, impacting interest income by $850 thousand.
Average total loans, excluding residential loans for sale, decreased $24.7 million. The largest driver was a $26.7 million decrease in the average balance of residential loans held for investment due to the sale of mortgages in the prior quarter, along with a decrease in average leases of $4.5 million, and a decrease in SBA loan average balances of $4.0 million. These decreases were partially offset by increases in construction, commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $11.3 million on average.
Interest expense decreased $1.7 million, quarter-over-quarter, due to a decline in the cost of deposits and borrowings. Interest expense on total deposits decreased $1.4 million, interest expense on borrowings decreased $275 thousand, and interest expense on subordinated debentures decreased by $55 thousand as well. During the period, interest-bearing checking accounts decreased $3.4 million, time deposits increased $11.3 million, while money market and savings deposit balances decreased $3.0 million on average. Borrowings decreased $21.5 million on average. On a rate basis, money market accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits having declined 19 basis points.
Overall the net interest margin improved to 3.82%, compared to the prior quarter, as the decline in cost of funds offset the decline in yield on earning assets.
Provision for Credit Losses
The overall provision for credit losses for the first quarter increased $712 thousand to $4.0 million, from $3.3 million in the fourth quarter. The higher level of provision was largely due to a $373 thousand increase in net charge-offs, combined with an increase in the baseline ACL and qualitative reserve factors on certain loan portfolios.
3
Exhibit 99.1
Non-interest income
The following table presents the components of non-interest income for the periods indicated:
| Three Months Ended | |||||||||||||||||||||||
| (Dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | % Change | |||||||||||||||||||
| Mortgage banking income | $ | 4,528 | $ | 5,714 | $ | (1,186) | (20.8) | % | |||||||||||||||
| Wealth management income | 1,729 | 1,679 | 50 | 3.0 | % | ||||||||||||||||||
| SBA loan income | 150 | 1,285 | (1,135) | (88.3) | % | ||||||||||||||||||
| Earnings on investment in life insurance | 272 | 248 | 24 | 9.7 | % | ||||||||||||||||||
| Net loss on sale of MSRs | (159) | (12) | (147) | 1225.0 | % | ||||||||||||||||||
| Net loss on sale of loans | — | (184) | 184 | (100.0) | % | ||||||||||||||||||
| Net change in the fair value of derivative instruments | (51) | 197 | (248) | (125.9) | % | ||||||||||||||||||
| Net change in the fair value of loans held-for-sale | (380) | 112 | (492) | (439.3) | % | ||||||||||||||||||
| Net change in the fair value of loans held-for-investment | (39) | 86 | (125) | (145.3) | % | ||||||||||||||||||
| Net gain (loss) on hedging activity | 18 | (22) | 40 | (181.8) | % | ||||||||||||||||||
| Net gain on sale of investments AFS | — | 453 | (453) | (100.0) | % | ||||||||||||||||||
| Other | 969 | 1,059 | (90) | (8.5) | % | ||||||||||||||||||
| Total non-interest income | $ | 7,037 | $ | 10,615 | $ | (3,578) | (33.7) | % | |||||||||||||||
Total non-interest income decreased $3.6 million, or 33.7%, quarter-over-quarter largely due to a $1.2 million decrease in mortgage banking income, and a $1.1 million decline in SBA loan income. Despite a quarter-over-quarter increase of 9 basis points in the margin on mortgage banking, mortgage loan sales decreased by $40.6 million, or 20% from the prior quarter, resulting in a lower level of mortgage banking income for the quarter-ended March 31, 2026. In addition, mortgage segment related fair value and derivative & hedging items declined in total by $701 thousand quarter-over-quarter.
SBA loan income decreased $1.1 million as the volume of SBA loans sold was down $14.1 million to $6.7 million, for the quarter-ended March 31, 2026 compared to the quarter-ended December 31, 2025, while the gross margin on SBA loan sales was 8.5% for the quarter-ended March 31, 2026 compared to 7.4% for the quarter-ended December 31, 2025.
In the prior quarter we recorded a gain on sale of investment securities of $453 thousand, which was not repeated in the quarter ended March 31, 2026. Other non-interest income was down $90 thousand from the prior quarter due to smaller declines in several accounts including ATM, wire transfer and other customer account fees.
Non-interest expense
The following table presents the components of non-interest expense for the periods indicated:
| Three Months Ended | |||||||||||||||||||||||
| (Dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | % Change | |||||||||||||||||||
| Salaries and employee benefits | $ | 12,386 | $ | 13,103 | $ | (717) | (5.5) | % | |||||||||||||||
| Occupancy and equipment | 1,183 | 1,210 | (27) | (2.2) | % | ||||||||||||||||||
| Professional fees | 974 | 1,076 | (102) | (9.5) | % | ||||||||||||||||||
| Data processing and software | 1,973 | 1,981 | (8) | (0.4) | % | ||||||||||||||||||
| Advertising and promotion | 692 | 944 | (252) | (26.7) | % | ||||||||||||||||||
| Pennsylvania bank shares tax | 258 | 224 | 34 | 15.2 | % | ||||||||||||||||||
| Other | 2,692 | 3,120 | (428) | (13.7) | % | ||||||||||||||||||
| Total non-interest expense | $ | 20,158 | $ | 21,658 | $ | (1,500) | (6.9) | % | |||||||||||||||
Salaries and benefits overall decreased $717 thousand, primarily due to the variable nature of the mortgage segment along with timing of certain incentive expense, in addition to lower incentive compensation within the banking and wealth management segments compared to the previous quarter-end. Advertising and promotion costs decreased $252 thousand, reflecting a decrease in business development efforts and special events since year-end. Furthermore, other expense decreased $428 thousand mainly because OREO related activities in the prior quarter did not recur in the quarter-ended March 31, 2026.
4
Exhibit 99.1
Balance Sheet - March 31, 2026 Compared to December 31, 2025
Total assets increased $17.3 million, or 0.7%, to $2.6 billion as of March 31, 2026 from $2.6 billion as of December 31, 2025.
Portfolio loans grew $15.0 million, or 0.7% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $15.4 million, or 3.6%, construction loans increased $12.8 million, or 3.9%, while commercial mortgage loans decreased $5.0 million, or 0.6%, and SBA loan balances decreased $5.3 million, or 3.8%. Lease financings also decreased $4.7 million, or 10.2% from December 31, 2025, partially offsetting the above noted loan growth.
Total deposits increased $11.8 million, or 0.5% quarter-over-quarter, led by an increase of $13.8 million in interest-bearing deposits. Money market accounts and savings accounts decreased a combined $9.8 million, non-interest bearing accounts decreased $1.9 million or 0.8%, while interest bearing demand deposits decreased $209 thousand. While borrowings increased $3.5 million, or 3.0% quarter-over-quarter.
Total stockholders’ equity increased by $3.2 million from December 31, 2025, to $202.9 million as of March 31, 2026. Changes to equity for the quarter included net income of $4.7 million, an increase of $424 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.69% at March 31, 2026.
Asset Quality Summary
Non-performing loans increased $656 thousand, to $55.7 million at March 31, 2026 compared to $55.1 million at December 31, 2025, with increases coming from commercial mortgage, land development, and commercial non-performing loans, partially offset by a decrease in non-performing SBA loans, residential mortgage loans, and construction loans. Of the total non-performing loans, $23.9 million were SBA loans, with $12.9 million, or 54.0%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with slightly more than half, 53.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points. Despite these changes in non-performing loans, the ratio of non-performing loans to total loans as of March 31, 2026 was unchanged from December 31, 2025 at 2.50%. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 1.92%. As of March 31, 2026 there were specific reserves of $2.8 million against individually evaluated loans, a decrease of $613 thousand from the level of specific reserves as of December 31, 2025.
Net charge-offs increased to $3.9 million, or 0.18% of total average loans for the quarter ended March 31, 2026, compared to net charge-offs of $3.5 million, or 0.16%, for the quarter ended December 31, 2025. First quarter charge-offs consisted of $2.5 million in SBA loans, $149 thousand in commercial loans, $856 thousand in finance receivables, and $745 thousand of small ticket equipment leases. Partially offsetting first quarter charge-offs were recoveries of $407 thousand, mainly related to leases.
The ratio of allowance for credit losses to total loans held for investment was 1.00% as of March 31, 2026, consistent with the 1.00% reported as of December 31, 2025, due to the increase in provision for credit losses discussed above, combined with portfolio loan growth being below 1% for the current quarter.
About Meridian Corporation
Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.
5
Exhibit 99.1
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; 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; 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.
6
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
FINANCIAL RATIOS (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
Earnings and Per Share Data: | |||||||||||||||||||||||||||||
| Net income | $ | 4,714 | $ | 7,186 | $ | 6,659 | $ | 5,592 | $ | 2,399 | |||||||||||||||||||
| Basic earnings per common share | $ | 0.40 | $ | 0.62 | $ | 0.59 | $ | 0.50 | $ | 0.21 | |||||||||||||||||||
| Diluted earnings per common share | $ | 0.39 | $ | 0.61 | $ | 0.58 | $ | 0.49 | $ | 0.21 | |||||||||||||||||||
| Common shares outstanding | 11,874 | 11,826 | 11,517 | 11,297 | 11,285 | ||||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Return on average assets (2) | 0.74 | % | 1.10 | % | 1.04 | % | 0.90 | % | 0.40 | % | |||||||||||||||||||
Return on average equity (2) | 9.44 | 14.79 | 14.42 | 12.68 | 5.57 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) (2) | 3.82 | 3.77 | 3.77 | 3.54 | 3.46 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent) (2) | 6.69 | 6.82 | 7.01 | 6.89 | 6.83 | ||||||||||||||||||||||||
Cost of funds (2) | 3.04 | 3.23 | 3.42 | 3.52 | 3.56 | ||||||||||||||||||||||||
Efficiency ratio | 66.66 | % | 63.25 | % | 65.15 | % | 65.82 | % | 69.16 | % | |||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.18 | % | 0.16 | % | 0.09 | % | 0.17 | % | 0.14 | % | |||||||||||||||||||
Non-performing loans to total loans | 2.50 | 2.50 | 2.53 | 2.35 | 2.49 | ||||||||||||||||||||||||
Non-performing assets to total assets | 2.39 | 2.38 | 2.32 | 2.14 | 2.07 | ||||||||||||||||||||||||
Allowance for credit losses to: | |||||||||||||||||||||||||||||
Total loans and other finance receivables | 0.99 | 0.99 | 1.01 | 0.99 | 1.01 | ||||||||||||||||||||||||
Total loans and other finance receivables (excluding loans at fair value) (1) | 1.00 | 1.00 | 1.01 | 1.00 | 1.01 | ||||||||||||||||||||||||
Non-performing loans | 38.81 | % | 39.18 | % | 39.37 | % | 41.26 | % | 39.63 | % | |||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
| Book value per common share | $ | 17.09 | $ | 16.89 | $ | 16.33 | $ | 15.76 | $ | 15.38 | |||||||||||||||||||
| Tangible book value per common share | $ | 16.80 | $ | 16.59 | $ | 16.02 | $ | 15.44 | $ | 15.06 | |||||||||||||||||||
| Total equity/Total assets | 7.87 | % | 7.80 | % | 7.40 | % | 7.09 | % | 6.86 | % | |||||||||||||||||||
Tangible common equity/Tangible assets - Corporation (1) | 7.75 | 7.67 | 7.27 | 6.96 | 6.73 | ||||||||||||||||||||||||
Tangible common equity/Tangible assets - Bank (1) | 9.47 | 9.41 | 9.16 | 8.96 | 8.61 | ||||||||||||||||||||||||
| Tier 1 leverage ratio - Bank | 9.69 | 9.50 | 9.41 | 9.32 | 9.30 | ||||||||||||||||||||||||
| Common tier 1 risk-based capital ratio - Bank | 10.63 | 10.66 | 10.52 | 10.53 | 10.15 | ||||||||||||||||||||||||
| Tier 1 risk-based capital ratio - Bank | 10.63 | 10.66 | 10.52 | 10.53 | 10.15 | ||||||||||||||||||||||||
| Total risk-based capital ratio - Bank | 11.64 | % | 11.65 | % | 11.54 | % | 11.54 | % | 11.14 | % | |||||||||||||||||||
| (1) See Non-GAAP reconciliation in the Appendix | |||||||||||||||||||||||||||||
| (2) Annualized | |||||||||||||||||||||||||||||
7
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
| Three Months Ended | |||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
| Interest income: | |||||||||||||||||
| Loans and other finance receivables, including fees | $ | 38,144 | $ | 40,264 | $ | 36,549 | |||||||||||
| Securities - taxable | 1,847 | 1,891 | 1,693 | ||||||||||||||
| Securities - tax-exempt | 323 | 323 | 313 | ||||||||||||||
| Cash and cash equivalents | 398 | 348 | 613 | ||||||||||||||
| Total interest income | 40,712 | 42,826 | 39,168 | ||||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 15,223 | 16,582 | 16,868 | ||||||||||||||
| Borrowings and subordinated debentures | 2,287 | 2,617 | 2,524 | ||||||||||||||
| Total interest expense | 17,510 | 19,199 | 19,392 | ||||||||||||||
| Net interest income | 23,202 | 23,627 | 19,776 | ||||||||||||||
| Provision for credit losses | 3,999 | 3,287 | 5,212 | ||||||||||||||
| Net interest income after provision for credit losses | 19,203 | 20,340 | 14,564 | ||||||||||||||
| Non-interest income: | |||||||||||||||||
| Mortgage banking income | 4,528 | 5,714 | 3,393 | ||||||||||||||
| Wealth management income | 1,729 | 1,679 | 1,535 | ||||||||||||||
| SBA loan income | 150 | 1,285 | 748 | ||||||||||||||
| Earnings on investment in life insurance | 272 | 248 | 222 | ||||||||||||||
| Net loss on sale of MSRs | (159) | (12) | (52) | ||||||||||||||
| Net loss on sale of loans | — | (184) | — | ||||||||||||||
| Net change in the fair value of derivative instruments | (51) | 197 | 149 | ||||||||||||||
| Net change in the fair value of loans held-for-sale | (380) | 112 | 102 | ||||||||||||||
| Net change in the fair value of loans held-for-investment | (39) | 86 | 170 | ||||||||||||||
| Net gain (loss) on hedging activity | 18 | (22) | 21 | ||||||||||||||
| Net gain on sale of investments AFS | — | 453 | — | ||||||||||||||
| Other | 969 | 1,059 | 1,036 | ||||||||||||||
| Total non-interest income | 7,037 | 10,615 | 7,324 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 12,386 | 13,103 | 11,385 | ||||||||||||||
| Occupancy and equipment | 1,183 | 1,210 | 1,338 | ||||||||||||||
| Professional fees | 974 | 1,076 | 763 | ||||||||||||||
| Data processing and software | 1,973 | 1,981 | 1,479 | ||||||||||||||
| Advertising and promotion | 692 | 944 | 779 | ||||||||||||||
| Pennsylvania bank shares tax | 258 | 224 | 269 | ||||||||||||||
| Other | 2,692 | 3,120 | 2,730 | ||||||||||||||
| Total non-interest expense | 20,158 | 21,658 | 18,743 | ||||||||||||||
| Income before income taxes | 6,082 | 9,297 | 3,145 | ||||||||||||||
| Income tax expense | 1,368 | 2,111 | 746 | ||||||||||||||
| Net income | $ | 4,714 | $ | 7,186 | $ | 2,399 | |||||||||||
| Basic earnings per common share | $ | 0.40 | $ | 0.62 | $ | 0.21 | |||||||||||
| Diluted earnings per common share | $ | 0.39 | $ | 0.61 | $ | 0.21 | |||||||||||
Basic weighted average shares outstanding | 11,811 | 11,543 | 11,205 | ||||||||||||||
| Diluted weighted average shares outstanding | 12,153 | 11,771 | 11,446 | ||||||||||||||
8
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Cash and due from banks | $ | 12,458 | $ | 10,358 | $ | 12,605 | $ | 20,604 | $ | 16,976 | |||||||||||||||||||
| Interest-bearing deposits at other banks | 15,811 | 25,420 | 27,384 | 29,570 | 113,620 | ||||||||||||||||||||||||
| Federal funds sold | — | — | — | — | 629 | ||||||||||||||||||||||||
| Cash and cash equivalents | 28,269 | 35,778 | 39,989 | 50,174 | 131,225 | ||||||||||||||||||||||||
| Securities available-for-sale, at fair value | 196,012 | 193,457 | 194,268 | 187,902 | 185,221 | ||||||||||||||||||||||||
| Securities held-to-maturity, at amortized cost | 32,494 | 32,544 | 32,593 | 32,642 | 32,720 | ||||||||||||||||||||||||
| Equity investments | 2,137 | 2,166 | 2,150 | 2,130 | 2,126 | ||||||||||||||||||||||||
| Mortgage loans held for sale, at fair value | 38,960 | 33,762 | 28,016 | 44,078 | 28,047 | ||||||||||||||||||||||||
| Loans and other finance receivables, net of fees and costs | 2,185,442 | 2,170,600 | 2,162,845 | 2,108,250 | 2,071,675 | ||||||||||||||||||||||||
| Allowance for credit losses | (21,625) | (21,573) | (21,794) | (20,851) | (20,827) | ||||||||||||||||||||||||
| Loans and other finance receivables, net of the allowance for credit losses | 2,163,817 | 2,149,027 | 2,141,051 | 2,087,399 | 2,050,848 | ||||||||||||||||||||||||
| Restricted investment in bank stock | 7,699 | 7,811 | 8,350 | 9,162 | 8,369 | ||||||||||||||||||||||||
| Bank premises and equipment, net | 12,298 | 12,402 | 12,413 | 12,320 | 12,028 | ||||||||||||||||||||||||
| Bank owned life insurance | 30,959 | 30,687 | 30,421 | 30,175 | 29,935 | ||||||||||||||||||||||||
| Accrued interest receivable | 11,015 | 10,724 | 10,944 | 10,334 | 10,345 | ||||||||||||||||||||||||
| OREO and other repossessed assets | 6,009 | 5,997 | 3,714 | 3,148 | 249 | ||||||||||||||||||||||||
| Deferred income taxes | 4,548 | 4,215 | 4,989 | 5,314 | 5,136 | ||||||||||||||||||||||||
| Servicing assets | 3,694 | 3,932 | 3,845 | 3,658 | 4,284 | ||||||||||||||||||||||||
| Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||||||||||||
| Intangible assets | 2,512 | 2,563 | 2,614 | 2,665 | 2,716 | ||||||||||||||||||||||||
| Other assets | 37,967 | 36,031 | 24,874 | 28,938 | 24,740 | ||||||||||||||||||||||||
| Total assets | $ | 2,579,289 | $ | 2,561,995 | $ | 2,541,130 | $ | 2,510,938 | $ | 2,528,888 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||
| Non-interest bearing | $ | 243,458 | $ | 245,377 | $ | 239,614 | $ | 237,042 | $ | 323,485 | |||||||||||||||||||
| Interest bearing: | |||||||||||||||||||||||||||||
| Interest checking | 157,151 | 157,360 | 151,973 | 173,865 | 161,055 | ||||||||||||||||||||||||
| Money market and savings deposits | 1,013,533 | 1,023,290 | 996,126 | 956,448 | 947,795 | ||||||||||||||||||||||||
| Time deposits | 755,818 | 732,101 | 743,403 | 743,019 | 696,407 | ||||||||||||||||||||||||
| Total interest-bearing deposits | 1,926,502 | 1,912,751 | 1,891,502 | 1,873,332 | 1,805,257 | ||||||||||||||||||||||||
| Total deposits | 2,169,960 | 2,158,128 | 2,131,116 | 2,110,374 | 2,128,742 | ||||||||||||||||||||||||
| Borrowings | 120,838 | 117,338 | 137,265 | 138,965 | 139,590 | ||||||||||||||||||||||||
| Subordinated debentures | 49,675 | 49,853 | 49,822 | 49,792 | 49,761 | ||||||||||||||||||||||||
| Accrued interest payable | 6,620 | 6,531 | 7,095 | 7,059 | 7,404 | ||||||||||||||||||||||||
| Other liabilities | 29,263 | 30,429 | 27,803 | 26,728 | 29,823 | ||||||||||||||||||||||||
| Total liabilities | 2,376,356 | 2,362,279 | 2,353,101 | 2,332,918 | 2,355,320 | ||||||||||||||||||||||||
| Stockholders’ equity: | |||||||||||||||||||||||||||||
| Common stock | 13,882 | 13,830 | 13,521 | 13,300 | 13,288 | ||||||||||||||||||||||||
| Surplus | 90,885 | 90,352 | 85,122 | 82,184 | 82,026 | ||||||||||||||||||||||||
| Treasury stock | (26,079) | (26,079) | (26,079) | (26,079) | (26,079) | ||||||||||||||||||||||||
| Unearned common stock held by ESOP | (1,232) | (1,232) | (1,006) | (1,006) | (1,006) | ||||||||||||||||||||||||
| Retained earnings | 131,180 | 128,124 | 122,376 | 117,132 | 112,952 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | (5,703) | (5,279) | (5,905) | (7,511) | (7,613) | ||||||||||||||||||||||||
| Total stockholders’ equity | 202,933 | 199,716 | 188,029 | 178,020 | 173,568 | ||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,579,289 | $ | 2,561,995 | $ | 2,541,130 | $ | 2,510,938 | $ | 2,528,888 | |||||||||||||||||||
9
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
| Interest income | $ | 40,712 | $ | 42,826 | $ | 43,109 | $ | 41,211 | $ | 39,168 | |||||||||||||||||||
| Interest expense | 17,510 | 19,199 | 19,993 | 20,052 | 19,392 | ||||||||||||||||||||||||
| Net interest income | 23,202 | 23,627 | 23,116 | 21,159 | 19,776 | ||||||||||||||||||||||||
Provision for credit losses | 3,999 | 3,287 | 2,850 | 3,803 | 5,212 | ||||||||||||||||||||||||
| Non-interest income | 7,037 | 10,615 | 9,953 | 11,288 | 7,324 | ||||||||||||||||||||||||
| Non-interest expense | 20,158 | 21,658 | 21,546 | 21,357 | 18,743 | ||||||||||||||||||||||||
| Income before income tax expense | 6,082 | 9,297 | 8,673 | 7,287 | 3,145 | ||||||||||||||||||||||||
| Income tax expense | 1,368 | 2,111 | 2,014 | 1,695 | 746 | ||||||||||||||||||||||||
| Net Income | $ | 4,714 | $ | 7,186 | $ | 6,659 | $ | 5,592 | $ | 2,399 | |||||||||||||||||||
| Basic weighted average shares outstanding | 11,811 | 11,543 | 11,325 | 11,228 | 11,205 | ||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.40 | $ | 0.62 | $ | 0.59 | $ | 0.50 | $ | 0.21 | |||||||||||||||||||
| Diluted weighted average shares outstanding | 12,153 | 11,771 | 11,540 | 11,392 | 11,446 | ||||||||||||||||||||||||
| Diluted earnings per common share | $ | 0.39 | $ | 0.61 | $ | 0.58 | $ | 0.49 | $ | 0.21 | |||||||||||||||||||
| Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 23,072 | $ | 60 | $ | 70 | $ | 23,202 | $ | 19,706 | $ | 9 | $ | 61 | $ | 19,776 | |||||||||||||||||||||||||||||||
Provision for credit losses | 3,999 | — | — | 3,999 | 5,212 | — | — | 5,212 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 19,073 | 60 | 70 | 19,203 | 14,494 | 9 | 61 | 14,564 | |||||||||||||||||||||||||||||||||||||||
| Non-interest income | 1,398 | 1,729 | 3,910 | 7,037 | 1,912 | 1,535 | 3,877 | 7,324 | |||||||||||||||||||||||||||||||||||||||
| Non-interest expense | 13,957 | 978 | 5,223 | 20,158 | 12,758 | 818 | 5,167 | 18,743 | |||||||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 6,514 | $ | 811 | $ | (1,243) | $ | 6,082 | $ | 3,648 | $ | 726 | $ | (1,229) | $ | 3,145 | |||||||||||||||||||||||||||||||
| Efficiency ratio | 57 | % | 55 | % | 131 | % | 67 | % | 59 | % | 53 | % | 131 | % | 69 | % | |||||||||||||||||||||||||||||||
10
MERIDIAN CORPORATION AND SUBSIDIARIES
APPENDIX: NON-GAAP MEASURES (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Pre-Provision Net Revenue Reconciliation | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
(Dollars in thousands, except per share data, Unaudited) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||
| Income before income tax expense | $ | 6,082 | $ | 9,297 | $ | 3,145 | |||||||||||
| Provision for credit losses | 3,999 | 3,287 | 5,212 | ||||||||||||||
| Pre-provision net revenue | $ | 10,081 | $ | 12,584 | $ | 8,357 | |||||||||||
Pre-Provision Net Revenue Reconciliation | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
(Dollars in thousands, except per share data, Unaudited) | March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||
| Bank | $ | 10,513 | $ | 11,771 | $ | 8,860 | |||||||||||
| Wealth | 811 | 493 | 726 | ||||||||||||||
| Mortgage | (1,243) | 320 | (1,229) | ||||||||||||||
| Pre-provision net revenue | $ | 10,081 | $ | 12,584 | $ | 8,357 | |||||||||||
| Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
Allowance for credit losses (GAAP) | $ | 21,625 | $ | 21,573 | $ | 21,794 | $ | 20,851 | $ | 20,827 | |||||||||||||||||||
Loans and other finance receivables (GAAP) | 2,185,442 | 2,170,600 | 2,162,845 | 2,108,250 | 2,071,675 | ||||||||||||||||||||||||
Less: Loans at fair value | (14,090) | (14,396) | (14,454) | (14,541) | (14,182) | ||||||||||||||||||||||||
Loans and other finance receivables, excluding loans at fair value (non-GAAP) | $ | 2,171,352 | $ | 2,156,204 | $ | 2,148,391 | $ | 2,093,709 | $ | 2,057,493 | |||||||||||||||||||
ACL to loans and other finance receivables (GAAP) | 0.99 | % | 0.99 | % | 1.01 | % | 0.99 | % | 1.01 | % | |||||||||||||||||||
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP) | 1.00 | % | 1.00 | % | 1.01 | % | 1.00 | % | 1.01 | % | |||||||||||||||||||
11
Tangible Common Equity Ratio Reconciliation - Corporation | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 202,933 | $ | 199,716 | $ | 188,029 | $ | 178,020 | $ | 173,568 | |||||||||||||||||||
Less: Goodwill and intangible assets | (3,411) | (3,462) | (3,513) | (3,564) | (3,615) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 199,522 | 196,254 | 184,516 | 174,456 | 169,953 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,579,289 | 2,561,995 | 2,541,130 | 2,510,938 | 2,528,888 | ||||||||||||||||||||||||
| Less: Goodwill and intangible assets | (3,411) | (3,462) | (3,513) | (3,564) | (3,615) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,575,878 | $ | 2,558,533 | $ | 2,537,617 | $ | 2,507,374 | $ | 2,525,273 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Corporation (non-GAAP) | 7.75 | % | 7.67 | % | 7.27 | % | 6.96 | % | 6.73 | % | |||||||||||||||||||
Tangible Common Equity Ratio Reconciliation - Bank | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
| Total stockholders' equity (GAAP) | $ | 247,329 | $ | 244,064 | $ | 236,038 | $ | 228,127 | $ | 220,768 | |||||||||||||||||||
| Less: Goodwill and intangible assets | (3,411) | (3,462) | (3,513) | (3,564) | (3,615) | ||||||||||||||||||||||||
| Tangible common equity (non-GAAP) | 243,918 | 240,602 | 232,525 | 224,563 | 217,153 | ||||||||||||||||||||||||
| Total assets (GAAP) | 2,577,843 | 2,560,485 | 2,541,395 | 2,510,684 | 2,525,029 | ||||||||||||||||||||||||
| Less: Goodwill and intangible assets | (3,411) | (3,462) | (3,513) | (3,564) | (3,615) | ||||||||||||||||||||||||
| Tangible assets (non-GAAP) | $ | 2,574,432 | $ | 2,557,023 | $ | 2,537,882 | $ | 2,507,120 | $ | 2,521,414 | |||||||||||||||||||
| Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 9.47 | % | 9.41 | % | 9.16 | % | 8.96 | % | 8.61 | % | |||||||||||||||||||
| Tangible Book Value Reconciliation | |||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | |||||||||||||||||||||||||
| Book value per common share | $ | 17.09 | $ | 16.89 | $ | 16.33 | $ | 15.76 | $ | 15.38 | |||||||||||||||||||
| Less: Impact of goodwill /intangible assets | 0.29 | 0.30 | 0.31 | 0.32 | 0.32 | ||||||||||||||||||||||||
| Tangible book value per common share | $ | 16.80 | $ | 16.59 | $ | 16.02 | $ | 15.44 | $ | 15.06 | |||||||||||||||||||
12
First Quarter 2026 NASDAQ: MRBK Earnings Supplement
FORWARD-LOOKING STATEMENTS Meridian Corporation (the “Corporation”) may from time to time make written or oral “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; 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; 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 the 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. The Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by the Corporation or by or on behalf of Meridian Bank, except as may be required under applicable laws. Meridian Corporation 2
MRBK INVESTMENT HIGHLIGHTS Regional presence with a community touch. "Go to" bank in the Delaware Valley Demonstrated organic growth engine in diversified loan segments. Focus on Commercial, CRE and Small Business Lending Valuable customer base trained to solely use electronic channel. Strong sales culture that capitalizes on market disruption. Skilled management team with extensive in-market experience. Comfortably handle all but the largest companies. Meridian Corporation 3
Geographic Footprint Regional Market Meridian Corporation 4
Q1'2026 vs Q1'2025 Financial Recap Summary Income Statement ($000s) Q1'2026 Q1'2025 Net Interest Income $ 23,202 $ 19,776 Provision for Credit Losses 3,999 5,212 Non-Interest Income 7,037 7,324 Non-Interest Expense 20,158 18,743 Income Before Income Taxes 6,082 3,145 Income Taxes 1,368 746 Net income $ 4,714 $ 2,399 Earnings Per Share Diluted Earnings Per Share $ 0.39 $ 0.21 Pre-Provision Net Revenue by Segment 1 Bank $ 10,513 $ 8,860 Wealth 811 726 Mortgage (1,243) (1,229) Pre-Provision Net Revenue $ 10,081 $ 8,357 Assets ($M) Loans ($M) Deposits ($M) Q1'2022 Q1'2023 Q1'2024 Q1'2025 Q1'2026 $1,000 $2,000 $3,000 Summary Balance Sheet Q1'2026 Q1'2025 Assets ($M) $ 2,579 $ 2,529 Loans ($M) 2 2,185 2,072 Deposits ($M) 2,170 2,129 Equity ($M) 203 174 1) A Non-GAAP measure. See Non-GAAP reconciliation in the Appendix. 2) Includes loans held for investment. Meridian Corporation 5
For the Calendar Quarter Ended Balance Sheet ($M) Q1'2026 Q4'2025 Q3'2025 Q2'2025 Q1'2025 Total Assets $ 2,579 $ 2,562 $ 2,541 $ 2,511 $ 2,529 Total Loans & Leases² 2,224 2,204 2,191 2,152 2,100 Deposits 2,170 2,158 2,131 2,110 2,129 Equity 203 200 188 178 174 Tangible Equity / Tangible Assets3 7.75 % 7.67 % 7.27 % 6.96 % 6.73 % Net Income & Share Data ($000s) Net Income $ 4,714 $ 7,186 $ 6,659 $ 5,592 $ 2,399 Diluted EPS 0.39 0.61 0.58 0.49 0.21 Price per Common Share 18.96 17.58 15.79 12.89 14.40 TBV per Share 16.80 16.59 16.02 15.44 15.06 Pre-Provision Net Revenue3 10,081 12,584 11,523 11,090 8,357 Common Dividends per Share 0.14 0.125 0.125 0.125 0.125 Dividend Yield (annualized) 3.0 % 3.2 % 3.2 % 3.9 % 3.5 % Profitability (%) ROAE 9.44 % 14.79 % 14.42 % 12.68 % 5.57 % ROAA 0.74 % 1.10 % 1.04 % 0.90 % 0.40 % NIM 3.82 % 3.77 % 3.77 % 3.54 % 3.46 % Q1'2026 HIGHLIGHTS 1) As of and for the quarter ended March 31, 2026, per April 23, 2026 press release. 2) Includes loans held for sale and loans held for investment. 3) A Non-GAAP measure. See Non-GAAP reconciliation in the Appendix. Meridian Corporation 6
Q1'2026 INCOME STATEMENT TRENDS ($000s) Pre-Provision Net Revenue by Segment Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 Bank $ 8,860 $ 9,005 $ 10,504 $ 11,771 $ 10,513 Wealth 726 604 512 493 811 Mortgage (1,229) 1,481 507 320 (1,243) Total Pre-Provision Net Revenue $ 8,357 $ 11,090 $ 11,523 $ 12,584 $ 10,081 Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 Net Interest Income Non-Interest Income Non-Interest Expense Pre-Provision Net Revenue Net Income $0 $5,000 $10,000 $15,000 $20,000 $25,000 Meridian Corporation 7
NET INTEREST MARGIN 3.09% 3.06% 3.20% 3.29% 3.46% 3.54% 3.77% 3.77% 3.82% 6.90% 6.98% 7.06% 6.81% 6.83% 6.89% 7.01% 6.82% 6.69% 4.00% 4.10% 4.05% 3.71% 3.56% 3.52% 3.42% 3.23% 3.04% Net Interest Margin Yield on Earning Assets Cost of Funds Q1'2024 Q2'2024 Q3'2024 Q4'2024 Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Meridian Corporation 8
DEPOSIT REPRICING DRIVING DOWN COST OF FUNDS Data as of March 31, 2026 • During Q1, time deposit costs declined 16 bps, aiding net interest margin • $459 million in term deposits to reprice next six months • Currently repricing at approx. 3.90%, up from 3.78% and 3.82% through months 1 to 3 and 3 to 6, respectively Meridian Corporation 9 Time Deposit Maturity Schedule ($000s) - as of March 31, 2026 3.78% 3.82% 3.78% 3.74% 3.62% 3.61% 3.46% Amount Maturing (000s) Blended Cost by Period 1-3 MONTHS 3-6 MONTHS 6-9 MONTHS 9-12 MONTHS 12-18 MONTHS 18-24 MONTHS > 2 YRS $— $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 $260,000 $280,000 $300,000 3.00% 3.50% 4.00% 4.50% 5.00%
NON-INTEREST INCOME (Dollars in thousands) Q1'2026 Q4'2025 $ Change Mortgage banking income 1 4,115 6,001 (1,886) SBA income 150 1,285 (1,135) Wealth management income 1,729 1,679 50 Net (loss) on sale of loans — (184) 184 Net gain on sale of investments — 453 (453) Other income 1,043 1,381 (338) Total $ 7,037 $ 10,615 $ (3,578) Note 1 - includes FV change on mortgages HFS and related hedging derivatives. 57.2% 24.0% 2.1% 16.7% Mortgage banking income Wealth management income SBA income Net gain on sale of MSR's Other income (% of total non-interest income during Q1'2026) Meridian Corporation 10
NON-INTEREST EXPENSE (% of total non-interest expense during Q1'2026) (Dollars in thousands) Q1'2026 Q4'2025 $ Change Salaries & benefits 12,386 13,103 (717) Occupancy & equipment 1,183 1,210 (27) Professional fees 974 1,076 (102) Data processing and IT 1,973 1,981 (8) Other 3,642 4,288 (646) Total $ 20,158 $ 21,658 $ (1,500) 61.4% 5.9% 4.8% 9.8% 18.1% Salaries & employee benefits Occupancy & equipment Professional Data processing / IT Other Meridian Corporation 11
LOANS AND OTHER FINANCE RECEIVABLES Balance ($000s) March 31, 2026 YTD Growth % Commercial Mortgage 874,411 (0.6) % Commercial & Industrial 444,395 3.6 % Construction 343,376 3.9 % SBA loans 134,468 (3.8) % Leases, net 40,837 (10.2) % Residential mortgage 235,067 (0.5) % Home equity 109,795 2.6 % Consumer (other) 303 (7.9) % Total $ 2,182,652 0.7 % Commercial Mortgage, 40% Consumer, 16% Commercial & Industrial, 20% SBA, 6% Construction, 16% Leases, 2% Commercial - 84% Consumer - 16% (residential, home equity, personal) Meridian Corporation 12 As of March 31, 2026
C&I LOAN PORTFOLIO OVERVIEW C&I Portfolio By Industry as of March 31, 2026 10 Largest C&I Relationships as a % of C&I Portfolio 11.5% 10 Largest C&I Relationships as a % of Total Loan Portfolio 4.7% Average Loan Size O/S of C&I Portfolio, excluding leases ($000s) $406 Weighted Average Risk Rating of C&I Portfolio Pass 15.9% 13.3% 8.2% 8.8% 5.4% 3.4% 5.8%4.8% 2.2% 8.0% 6.0%1.6% 1.4% 15.0% Manufacturing Construction Related RE Investment Professional Services Health & Social Services Admin & Support Retail Trade Leisure Commercial & Consumer Rental Wholesale Trade Financial, Insurance & RE Services Communication Infrastructure Providers & Services Waste Mgmt & Remediation Other *Includes commercial owner occupied real estate of $279 million Meridian Corporation Portfolio Characteristics 13 $887 M Total C&I* Includes $23 M of private equity loans
31.9% 2.2% 18.3% 1.7% 25.0% 11.0% 1.6% 3.7% 4.7% Resi & Coml Constr RE & Rental Lease Com RE Inv Construction Related RE Inv Leisure Health Care and Social Assistance Other Fin, Ins, RE Services CRE LOAN PORTFOLIO OVERVIEW - as of March 31, 2026 $923 M* Total CRE (as a % of CRE loans) *Commercial owner occupied real estate loans of $279 million not included (see C&I chart) Included in CRE: • $68.2 M of office buildings; & • $104 M of multi-family loans Meridian Corporation Multi-family Loans by Region: Region Amount ($000s) % of Total Philadelphia $ 84,984 80.6 % Chester County, PA 1,975 1.9 % Montgomery County, PA 6,524 6.3 % New Castle, DE 6,022 5.8 % Delaware County, PA 1,423 1.4 % Bucks County, PA 1,342 1.3 % Southern NJ 1,795 1.7 % Other 91 0.1 % Total $ 104,156 14
CRE RATIOS - 100 & 300* 75% 75% 88% 96% 99% 73% 73% 127% 113% 114% 120% 120% 127% 131% 134% 150% 149% 156% 184% 177% 172% 169% 234% 256% 277% 287% 282% 288% 284% 286% CRE 100 Ratio CRE 300 Ratio Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Jun-25 Sept- 25 Dec-25 Mar-26 50% 100% 150% 200% 250% 300% Increase in Construction - largely Multi-family Meridian Corporation 15 * The CRE 100 Ratio and CRE 300 Ratio consist of construction loans (100) and non-owner occupied CRE loans (300) compared to total risk-based capital at March 31, 2026.
6.79% 6.82% 7.89% 11.10% 11.50% 11.47% 10.53% 11.04% 10.50% 10.64% 1.01% 0.54% 1.12% 3.43% 3.96% 3.56% 3.52% 3.42% 3.23% 3.04% Yield on SBA Loans Cost of Funds FYE 20 FYE 21 FYE 22 FYE 23 FYE 24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 —% 5.00% 10.00% 15.00% SBA Loan Portfolio Overview SBA Loan Portfolio Profitability ($000s) Yield vs. Cost $4,639 $11,773 $13,280 $15,976 $15,245 $16,929 $2,810 $431 $2,478 $1,172 $2,469 $3,463 $8,111 $894 Total Net Revenue Provision for Credit Losses FYE 20 FYE 21 FYE 22 FYE 23 FYE 24 FYE 25 Q1'26 $5,000 $10,000 $15,000 $20,000 • $134.5 million loans outstanding at March 31, 2026. • Very profitable portfolio. • Spread on SBA portfolio - 7.60% for Q1 2026. • 54% of non-performing loans as of March 31, 2026 were originated during 2020-2021 prior to 500+ bps rise in rates. Meridian Corporation 16
ASSET QUALITY TRENDS 0.08% 0.05% 0.05% 0.11% 0.12% 0.20% 0.11% 0.34% 0.14% 0.17% 0.09% 0.16% 0.18% 1.25% 1.44% 1.53% 1.76% 1.93% 1.84% 2.20% 2.19% 2.50% 2.35% 2.53% 2.50% 2.50% 1.11% 1.32% 1.38% 1.58% 1.74% 1.68% 1.97% 1.90% 2.07% 2.14% 2.32% 2.38% 2.39% NCOs / Avg Loans NPLs / Loans NPAs / Assets Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 Q3'2024 Q4'2024 Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% Meridian Corporation 17
ASSET QUALITY - as of March 31, 2026 Comm Mortgage, $3,805 Construction & Land Dev, $7,688 C & I - Billboard (1), $5,221 C & I - Other, $1,958 SBA, $23,911 Residential, $9,350 Leases, $1,560 Home Equity, $2,223 Non-performing Loans by Type ($000s) $12.9 million (54%) guaranteed by SBA (1) C&I Billboard is comprised of 1 loan relationship. Meridian Corporation 18
MORTGAGE VOLUME & MARGIN TRENDS ($000s) 2.95% 2.81% 2.82% 2.73% 2.63% 2.86% 2.93% 2.82% 2.91% Closed and Funded - Purchase Closed and Funded - Refi Sold Volume Margin Q1'2024 Q2'2024 Q3'2024 Q4'2024 Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 0 50 100 150 200 250 300 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% Q1'2024 Q2'2024 Q3'2024 Q4'2024 Q1'2025 Q2'2025 Q3'2025 Q4'2025 Q1'2026 Refinance (%) 16% 10% 12% 16% 18% 14% 14% 21% 30% Purchase (%) 84% 90% 88% 84% 82% 86% 86% 79% 70% Meridian Corporation 19 Period Sold Volume ($000s) Margin Q1'2026 $ 166,546 2.91 % FY 2025 773,228 2.82 % FY 2024 790,393 2.82 % FY 2023 606,042 2.85 % Period Originations ($000s) % Refi Q1'2026 $ 182,511 30 % FY 2025 830,751 17 % FY 2024 841,705 14 % FY 2023 678,617 11 % Year over Year Summary
DEPOSIT COMPOSITION - as of March 31, 2026 Business Accounts, 51% Consumer Accounts, 15% Municipal Deposits, 11% Time Deposits (Brokered), 23% Business Accounts Consumer Accounts Municipal Deposits Time Deposits (Brokered) Total Deposits $2.2 billion • At March 31, 2026, 64% of business accounts and 89% of consumer accounts were fully insured by the FDIC. • The average business money market account balance was $510 thousand at March 31, 2026. • The municipal deposits are 100% insured or collateralized and brokered time deposits are 100% FDIC insured. • The level of uninsured deposits for the entire deposit base was 20% at March 31, 2026. (as a % of total deposits) Meridian Corporation 20
INVESTMENT PORTFOLIO COMPOSITION - as of March 31, 2026 • Total investment securities 8.9% of total assets: – 86% Available for sale (AFS). – 14% Held-to-maturity (HTM). • Portfolio duration - 3.74 years • Average life - 4.90 years • Tax-equivalent yield - 3.83% • 12-month projected cash flow $31.4 million, or 10.20% of portfolio • Post Tax AFS URL $4.9 million or 1.97% of Tier 1 capital (1) (1) Capital ratios reflect Meridian Bank ratios. US government agency 46.5% State & municipal - tax free 23.7% Other 10.3% US asset backed 11.0% State & municipal - taxable 7.6% Equity securities 0.9% Total Securities $231 million Meridian Corporation 21
APPENDIX - HISTORICAL FINANCIAL HIGHLIGHTS AND RECONCILIATIONS OF NON-GAAP MEASURES Meridian Corporation 22
HISTORICAL FINANCIAL DATA 1) Includes loans held for sale and held for investment. 2) Includes loans held for investment (excluding loans at fair value). 3) A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation. As of or for the Quarter Ended As of or for the Year Ended (dollars in thousands) Q1'2026 Q4'2025 Q1'2025 2025Y 2024Y 2023Y Balance Sheet Total Assets $ 2,579,289 $ 2,561,995 $ 2,528,888 $ 2,561,995 $ 2,385,867 $ 2,246,193 Loans (1) 2,224,402 2,204,362 2,099,722 2,204,362 2,062,850 1,920,622 Deposits 2,169,960 2,158,128 2,128,742 2,158,128 2,005,368 1,823,462 Gross Loans / Deposits 102.51 % 102.14 % 98.64 % 102.14 % 102.87 % 105.33 % Capital Total Equity $ 202,933 $ 199,716 $ 173,568 $ 199,716 $ 171,522 $ 158,022 Tangible Common Equity / Tangible Assets - HC (3) 7.75 % 7.67 % 6.73 % 7.67 % 7.05 % 6.87 % Tangible Common Equity / Tangible Assets - Bank (3) 9.47 9.41 8.61 9.41 9.06 8.94 Tier 1 Leverage Ratio - Bank 9.69 9.50 9.30 9.50 9.21 9.46 Total Capital Ratio - Bank 11.64 11.65 11.14 11.65 11.20 11.17 Commercial Real Estate Loans / Total RBC 286.0 % 284.1 % 286.5 % 284.1 % 277.2 % 255.9 % Earnings & Profitability Net Income $ 4,714 $ 7,186 $ 2,399 $ 21,836 $ 16,346 $ 13,243 ROA 0.74 % 1.10 % 0.40 % 0.87 % 0.70 % 0.61 % ROE 9.44 14.79 5.57 12.00 9.93 8.53 Net Interest Margin (NIM)(TEY) 3.82 3.77 3.46 3.64 3.16 3.35 Non-Int Inc. / Avg. Assets 1.11 1.63 1.23 1.56 1.76 1.48 Efficiency Ratio 66.66 % 63.25 % 69.16 % 65.67 % 70.46 % 76.43 % Asset Quality Nonaccrual Loans / Loans (1) 2.50 % 2.50 % 2.49 % 2.50 % 2.19 % 1.76 % NPAs / Assets 2.39 2.38 2.07 2.38 1.90 1.58 Reserves / Loans (2) (3) 1.00 1.00 1.01 1.00 0.91 1.17 NCOs / Average Loans 0.18 % 0.16 % 0.14 % 0.55 % 0.78 % 0.30 % Yield and Cost Yield on Earning Assets (TEY) 6.69 % 6.82 % 6.83 % 6.89 % 6.94 % 6.62 % Cost of Deposits 2.84 3.03 3.36 3.23 3.82 3.24 Cost of Interest-Bearing Liabilities 3.41 % 3.63 % 4.00 % 3.85 % 4.46 % 3.97 % Meridian Corporation 23
Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value (dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Allowance for credit losses (GAAP) $ 21,625 $ 21,573 $ 21,794 $ 20,851 $ 20,827 Loans and other finance receivables (GAAP) 2,185,442 2,170,600 2,162,845 2,108,250 2,071,675 Less: Loans at fair value (14,090) (14,396) (14,454) (14,541) (14,182) Loans and other finance receivables, excluding loans at fair value (non-GAAP) $ 2,171,352 $ 2,156,204 $ 2,148,391 $ 2,093,709 $ 2,057,493 ACL to loans and other finance receivables (GAAP) 0.99 % 0.99 % 1.01 % 0.99 % 1.01 % ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP) 1.00 % 1.00 % 1.01 % 1.00 % 1.01 % RECONCILIATION OF NON-GAAP MEASURES Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Pre-Provision Net Revenue Reconciliation Three Months Ended (Dollars in thousands, except per share data) March 31, 2026 December 31, 2025 March 31, 2025 Income before income tax expense $ 6,082 $ 9,297 $ 3,145 Provision for credit losses 3,999 3,287 5,212 Pre-provision net revenue $ 10,081 $ 12,584 $ 8,357 Bank $ 10,513 $ 11,771 $ 8,860 Wealth 811 493 726 Mortgage (1,243) 320 (1,229) Pre-provision net revenue $ 10,081 $ 12,584 $ 8,357 Meridian Corporation 24
(dollars in thousands) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 Tangible common equity ratio - Corporation: Total stockholders' equity (GAAP) $ 202,933 $ 199,716 $ 188,029 $ 178,020 $ 173,568 Less: Goodwill and intangible assets (3,411) (3,462) (3,513) (3,564) (3,615) Tangible common equity (non-GAAP) $ 199,522 $ 196,254 $ 184,516 $ 174,456 $ 169,953 Total assets (GAAP) $ 2,579,289 $ 2,561,995 $ 2,541,130 $ 2,510,938 $ 2,528,888 Less: Goodwill and intangible assets (3,411) (3,462) (3,513) (3,564) (3,615) Tangible assets (non-GAAP) $ 2,575,878 $ 2,558,533 $ 2,537,617 $ 2,507,374 $ 2,525,273 Tangible common equity ratio (non-GAAP) 7.75 % 7.67 % 7.27 % 6.96 % 6.73 % Tangible common equity ratio - Bank: Total stockholders' equity (GAAP) $ 247,329 $ 244,064 $ 236,038 $ 228,127 $ 220,768 Less: Goodwill and intangible assets (3,411) (3,462) (3,513) (3,564) (3,615) Tangible common equity (non-GAAP) $ 243,918 $ 240,602 $ 232,525 $ 224,563 $ 217,153 Total assets (GAAP) $ 2,577,843 $ 2,560,485 $ 2,541,395 $ 2,510,684 $ 2,525,029 Less: Goodwill and intangible assets (3,411) (3,462) (3,513) (3,564) (3,615) Tangible assets (non-GAAP) $ 2,574,432 $ 2,557,023 $ 2,537,882 $ 2,507,120 $ 2,521,414 Tangible common equity ratio (non-GAAP) 9.47 % 9.41 % 9.16 % 8.96 % 8.61 % RECONCILIATION OF NON-GAAP MEASURES Meridian Corporation 25