(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.) |
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||||||||||||
Exhibit No. | Description of Exhibit | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MERIDIAN CORPORATION (Registrant) | ||||||||||||||
Dated: October 27, 2023 | ||||||||||||||
By: | /s/ Denise Lindsay | |||||||||||||
Denise Lindsay | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
As of or for the quarter ended (Unaudited) | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||
Net income | $ | 4,005 | $ | 4,645 | $ | 4,021 | $ | 4,557 | $ | 5,798 | |||||||||||||||||||
Basic earnings per common share | 0.36 | 0.42 | 0.36 | 0.40 | 0.49 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.35 | 0.41 | 0.34 | 0.39 | 0.48 | ||||||||||||||||||||||||
Net interest income | 17,224 | 17,098 | 17,677 | 18,518 | 18,026 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||||||
Total assets | $ | 2,230,971 | $ | 2,206,877 | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | |||||||||||||||||||
Loans, net of fees and costs | 1,885,629 | 1,859,839 | 1,818,189 | 1,743,682 | 1,610,349 | ||||||||||||||||||||||||
Total deposits | 1,808,645 | 1,782,605 | 1,770,413 | 1,712,479 | 1,673,553 | ||||||||||||||||||||||||
Non-interest bearing deposits | 244,668 | 269,174 | 262,636 | 301,727 | 290,169 | ||||||||||||||||||||||||
Stockholders' equity | 155,114 | 153,962 | 153,049 | 153,280 | 151,161 | ||||||||||||||||||||||||
Balance Sheet (Average Balances): | |||||||||||||||||||||||||||||
Total assets | $ | 2,184,385 | $ | 2,166,574 | $ | 2,088,599 | $ | 1,962,915 | $ | 1,868,194 | |||||||||||||||||||
Total interest earning assets | 2,086,331 | 2,070,640 | 1,995,460 | 1,877,967 | 1,791,255 | ||||||||||||||||||||||||
Loans, net of fees and costs | 1,876,648 | 1,847,736 | 1,783,322 | 1,674,215 | 1,565,861 | ||||||||||||||||||||||||
Total deposits | 1,782,140 | 1,775,444 | 1,759,571 | 1,698,597 | 1,597,648 | ||||||||||||||||||||||||
Non-interest bearing deposits | 253,485 | 266,675 | 296,037 | 312,297 | 295,975 | ||||||||||||||||||||||||
Stockholders' equity | 156,271 | 154,179 | 153,179 | 151,791 | 157,614 | ||||||||||||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||||||||||||||||
Return on average assets | 0.73 | % | 0.86 | % | 0.78 | % | 0.92 | % | 1.23 | % | |||||||||||||||||||
Return on average equity | 10.17 | % | 12.08 | % | 10.65 | % | 11.91 | % | 14.59 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2023 | June 30, 2023 | $ Change | % Change | Change due to rate | Change due to volume | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 244 | $ | 275 | $ | (31) | (11.3) | % | $ | 25 | $ | (56) | |||||||||||||||||||||||
Federal funds sold | 1 | 3 | (2) | (66.7) | % | 1 | (3) | ||||||||||||||||||||||||||||
Investment securities - taxable (1) | 901 | 992 | (91) | (9.2) | % | (18) | (73) | ||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 410 | 426 | (16) | (3.8) | % | (9) | (7) | ||||||||||||||||||||||||||||
Loans held for sale | 456 | 407 | 49 | 12.0 | % | 40 | 9 | ||||||||||||||||||||||||||||
Loans held for investment (1) | 33,526 | 31,810 | 1,716 | 5.4 | % | 1,213 | 503 | ||||||||||||||||||||||||||||
Total loans | 33,982 | 32,217 | 1,765 | 5.5 | % | 1,253 | 512 | ||||||||||||||||||||||||||||
Total interest income | $ | 35,538 | $ | 33,913 | $ | 1,625 | 4.8 | % | $ | 1,252 | $ | 373 | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,488 | $ | 1,840 | $ | (352) | (19.1) | % | $ | 42 | $ | (394) | |||||||||||||||||||||||
Money market and savings deposits | 6,755 | 5,371 | 1,384 | 25.8 | % | 796 | 588 | ||||||||||||||||||||||||||||
Time deposits | 7,300 | 6,812 | 488 | 7.2 | % | 537 | (49) | ||||||||||||||||||||||||||||
Total deposits | 15,543 | 14,023 | 1,520 | 10.8 | % | 1,375 | 145 | ||||||||||||||||||||||||||||
Borrowings | 2,086 | 2,129 | (43) | (2.0) | % | (103) | 60 | ||||||||||||||||||||||||||||
Subordinated debentures | 606 | 586 | 20 | 3.4 | % | 6 | 14 | ||||||||||||||||||||||||||||
Total interest expense | 18,235 | 16,738 | 1,497 | 8.9 | % | 1,278 | 219 | ||||||||||||||||||||||||||||
Net interest income differential | $ | 17,303 | $ | 17,175 | $ | 128 | 0.75 | % | $ | (26) | $ | 154 | |||||||||||||||||||||||
(1) Reflected on a tax-equivalent basis. |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2023 | June 30, 2023 | $ Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 4,819 | $ | 5,050 | $ | (231) | (4.6) | % | |||||||||||||||
Wealth management income | 1,258 | 1,235 | 23 | 1.9 | % | ||||||||||||||||||
SBA loan income | 982 | 1,767 | (785) | (44.4) | % | ||||||||||||||||||
Earnings on investment in life insurance | 201 | 193 | 8 | 4.1 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | 103 | 183 | (80) | (43.7) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | 111 | (199) | 310 | (155.8) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | (570) | (219) | (351) | 160.3 | % | ||||||||||||||||||
Net (loss) gain on hedging activity | 82 | (1) | 83 | (8300.0) | % | ||||||||||||||||||
Net loss on sale of investment securities available-for-sale | (3) | (54) | 51 | (94.4) | % | ||||||||||||||||||
Other | 1,103 | 1,169 | (66) | (5.6) | % | ||||||||||||||||||
Total non-interest income | $ | 8,086 | $ | 9,124 | $ | (1,038) | (11.4) | % |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | September 30, 2023 | June 30, 2023 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 12,420 | $ | 12,152 | $ | 268 | 2.2 | % | |||||||||||||||
Occupancy and equipment | 1,226 | 1,140 | 86 | 7.5 | % | ||||||||||||||||||
Professional fees | 1,104 | 1,004 | 100 | 10.0 | % | ||||||||||||||||||
Advertising and promotion | 848 | 1,091 | (243) | (22.3) | % | ||||||||||||||||||
Data processing and software | 1,652 | 1,681 | (29) | (1.7) | % | ||||||||||||||||||
Pennsylvania bank shares tax | 244 | 245 | (1) | (0.4) | % | ||||||||||||||||||
Other | 2,524 | 2,302 | 222 | 9.6 | % | ||||||||||||||||||
Total non-interest expense | $ | 20,018 | $ | 19,615 | $ | 403 | 2.1 | % |
Quarter Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Earnings and Per Share Data: | |||||||||||||||||||||||||||||
Net income | $ | 4,005 | $ | 4,645 | $ | 4,021 | $ | 4,557 | $ | 5,798 | |||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.42 | $ | 0.36 | $ | 0.40 | $ | 0.49 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.35 | $ | 0.41 | $ | 0.34 | $ | 0.39 | $ | 0.48 | |||||||||||||||||||
Common shares outstanding | 11,178 | 11,178 | 11,305 | 11,466 | 11,689 | ||||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Return on average assets | 0.73 | % | 0.86 | % | 0.78 | % | 0.92 | % | 1.23 | % | |||||||||||||||||||
Return on average equity | 10.17 | 12.08 | 10.65 | 11.91 | 14.59 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) | 3.29 | 3.33 | 3.61 | 3.93 | 4.01 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent) | 6.76 | 6.57 | 6.31 | 5.88 | 5.10 | ||||||||||||||||||||||||
Cost of funds | 3.63 | 3.39 | 2.83 | 2.07 | 1.17 | ||||||||||||||||||||||||
Efficiency ratio | 79.09 | % | 74.80 | % | 73.16 | % | 75.61 | % | 71.72 | % | |||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.05 | % | 0.05 | % | 0.08 | % | 0.05 | % | 0.02 | % | |||||||||||||||||||
Non-performing loans to total loans | 1.53 | 1.44 | 1.25 | 1.20 | 1.40 | ||||||||||||||||||||||||
Non-performing assets to total assets | 1.38 | 1.32 | 1.11 | 1.11 | 1.20 | ||||||||||||||||||||||||
Allowance for credit losses to: | |||||||||||||||||||||||||||||
Total loans held for investment | 1.04 | 1.09 | 1.12 | 1.08 | 1.18 | ||||||||||||||||||||||||
Total loans held for investment (excluding loans at fair value) (1) | 1.05 | 1.10 | 1.13 | 1.09 | 1.20 | ||||||||||||||||||||||||
Non-performing loans | 67.61 | % | 73.97 | % | 88.41 | % | 88.66 | % | 82.20 | % | |||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Book value per common share | $ | 13.88 | $ | 13.77 | $ | 13.54 | $ | 13.37 | $ | 12.93 | |||||||||||||||||||
Tangible book value per common share | $ | 13.53 | $ | 13.42 | $ | 13.18 | $ | 13.01 | $ | 12.58 | |||||||||||||||||||
Total equity/Total assets | 6.95 | % | 6.98 | % | 6.86 | % | 7.43 | % | 7.87 | % | |||||||||||||||||||
Tangible common equity/Tangible assets - Corporation (1) | 6.79 | 6.81 | 6.70 | 7.25 | 7.67 | ||||||||||||||||||||||||
Tangible common equity/Tangible assets - Bank (1) | 8.89 | 8.54 | 8.26 | 8.80 | 9.61 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Corporation | 7.52 | 7.46 | 7.65 | 8.13 | 8.54 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Bank | 9.65 | 9.22 | 9.32 | 9.95 | 10.52 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Corporation | 8.43 | 8.38 | 8.44 | 8.77 | 9.28 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Bank | 10.82 | 10.35 | 10.27 | 10.73 | 11.44 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Corporation | 8.43 | 8.38 | 8.44 | 8.77 | 9.28 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Bank | 10.82 | 10.35 | 10.27 | 10.73 | 11.44 | ||||||||||||||||||||||||
Total risk-based capital ratio - Corporation | 11.96 | 11.49 | 11.63 | 12.05 | 12.80 | ||||||||||||||||||||||||
Total risk-based capital ratio - Bank | 11.85 | % | 11.43 | % | 11.41 | % | 11.87 | % | 12.70 | % | |||||||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans and other finance receivables, including fees | $ | 33,980 | $ | 32,215 | $ | 21,848 | $ | 95,612 | $ | 58,187 | |||||||||||||||||||
Securities - taxable | 901 | 992 | 648 | 2,853 | 1,599 | ||||||||||||||||||||||||
Securities - tax-exempt | 333 | 351 | 369 | 1,038 | 1,015 | ||||||||||||||||||||||||
Cash and cash equivalents | 245 | 278 | 93 | 741 | 157 | ||||||||||||||||||||||||
Total interest income | 35,459 | 33,836 | 22,958 | 100,244 | 60,958 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 15,543 | 14,023 | 4,075 | 41,013 | 7,182 | ||||||||||||||||||||||||
Borrowings | 2,692 | 2,715 | 857 | 7,230 | 2,166 | ||||||||||||||||||||||||
Total interest expense | 18,235 | 16,738 | 4,932 | 48,243 | 9,348 | ||||||||||||||||||||||||
Net interest income | 17,224 | 17,098 | 18,026 | 52,001 | 51,610 | ||||||||||||||||||||||||
Provision for credit losses | 82 | 705 | 526 | 2,186 | 1,743 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 17,142 | 16,393 | 17,500 | 49,815 | 49,867 | ||||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||||||||
Mortgage banking income | 4,819 | 5,050 | 7,329 | 13,143 | 21,367 | ||||||||||||||||||||||||
Wealth management income | 1,258 | 1,235 | 1,114 | 3,689 | 3,672 | ||||||||||||||||||||||||
SBA loan income | 982 | 1,767 | 989 | 3,463 | 3,946 | ||||||||||||||||||||||||
Earnings on investment in life insurance | 201 | 193 | 138 | 585 | 413 | ||||||||||||||||||||||||
Net change in the fair value of derivative instruments | 103 | 183 | 127 | 217 | (713) | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-sale | 111 | (199) | (237) | (88) | (1,094) | ||||||||||||||||||||||||
Net change in the fair value of loans held-for-investment | (570) | (219) | (886) | (673) | (2,499) | ||||||||||||||||||||||||
Net (loss) gain on hedging activity | 82 | (1) | 399 | 81 | 4,941 | ||||||||||||||||||||||||
Net loss on sale of investment securities available-for-sale | (3) | (54) | — | (58) | — | ||||||||||||||||||||||||
Other | 1,103 | 1,169 | 1,251 | 3,489 | 3,695 | ||||||||||||||||||||||||
Total non-interest income | 8,086 | 9,124 | 10,224 | 23,848 | 33,728 | ||||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 12,420 | 12,152 | 13,360 | 35,633 | 41,585 | ||||||||||||||||||||||||
Occupancy and equipment | 1,226 | 1,140 | 1,191 | 3,610 | 3,619 | ||||||||||||||||||||||||
Professional fees | 1,104 | 1,004 | 899 | 2,930 | 2,659 | ||||||||||||||||||||||||
Advertising and promotion | 848 | 1,091 | 1,165 | 2,799 | 3,340 | ||||||||||||||||||||||||
Data processing and software | 1,652 | 1,681 | 1,442 | 4,764 | 3,939 | ||||||||||||||||||||||||
Pennsylvania bank shares tax | 244 | 245 | 202 | 735 | 612 | ||||||||||||||||||||||||
Other | 2,524 | 2,302 | 2,002 | 6,951 | 5,646 | ||||||||||||||||||||||||
Total non-interest expense | 20,018 | 19,615 | 20,261 | 57,422 | 61,400 | ||||||||||||||||||||||||
Income before income taxes | 5,210 | 5,902 | 7,463 | 16,241 | 22,195 | ||||||||||||||||||||||||
Income tax expense | 1,205 | 1,257 | 1,665 | 3,568 | 4,927 | ||||||||||||||||||||||||
Net income | $ | 4,005 | $ | 4,645 | $ | 5,798 | $ | 12,673 | $ | 17,268 | |||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.42 | $ | 0.49 | $ | 1.14 | $ | 1.45 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.35 | $ | 0.41 | $ | 0.48 | $ | 1.11 | $ | 1.40 | |||||||||||||||||||
Basic weighted average shares outstanding | 11,057 | 11,062 | 11,736 | 11,130 | 11,928 | ||||||||||||||||||||||||
Diluted weighted average shares outstanding | 11,363 | 11,304 | 12,118 | 11,449 | 12,344 |
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 13,737 | $ | 10,576 | $ | 8,473 | $ | 11,299 | $ | 12,114 | |||||||||||||||||||
Interest-bearing deposits at other banks | 46,022 | 36,290 | 100,030 | 27,092 | 20,774 | ||||||||||||||||||||||||
Cash and cash equivalents | 59,759 | 46,866 | 108,503 | 38,391 | 32,888 | ||||||||||||||||||||||||
Securities available-for-sale, at fair value | 122,218 | 126,668 | 142,933 | 135,346 | 127,999 | ||||||||||||||||||||||||
Securities held-to-maturity, at amortized cost | 36,232 | 36,463 | 36,525 | 37,479 | 37,922 | ||||||||||||||||||||||||
Equity investments | 2,019 | 2,097 | 2,110 | 2,086 | 2,092 | ||||||||||||||||||||||||
Mortgage loans held for sale, at fair value | 23,144 | 40,422 | 35,701 | 22,243 | 33,800 | ||||||||||||||||||||||||
Loans and other finance receivables, net of fees and costs | 1,885,629 | 1,859,839 | 1,818,189 | 1,743,682 | 1,610,349 | ||||||||||||||||||||||||
Allowance for credit losses | (19,683) | (20,242) | (20,442) | (18,828) | (18,974) | ||||||||||||||||||||||||
Loans and other finance receivables, net of the allowance for credit losses | 1,865,946 | 1,839,597 | 1,797,747 | 1,724,854 | 1,591,375 | ||||||||||||||||||||||||
Restricted investment in bank stock | 8,309 | 9,157 | 10,173 | 6,931 | 5,217 | ||||||||||||||||||||||||
Bank premises and equipment, net | 13,310 | 13,234 | 13,281 | 13,349 | 12,835 | ||||||||||||||||||||||||
Bank owned life insurance | 28,641 | 28,440 | 28,247 | 28,055 | 22,916 | ||||||||||||||||||||||||
Accrued interest receivable | 8,984 | 7,651 | 7,651 | 7,363 | 6,008 | ||||||||||||||||||||||||
Other real estate owned | 1,703 | 1,703 | 1,703 | 1,703 | — | ||||||||||||||||||||||||
Deferred income taxes | 4,993 | 4,258 | 4,017 | 3,936 | 5,722 | ||||||||||||||||||||||||
Servicing assets | 11,835 | 12,193 | 12,125 | 12,346 | 12,807 | ||||||||||||||||||||||||
Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||||||||||||
Intangible assets | 3,022 | 3,073 | 3,124 | 3,175 | 3,226 | ||||||||||||||||||||||||
Other assets | 39,957 | 34,156 | 25,044 | 24,072 | 26,218 | ||||||||||||||||||||||||
Total assets | $ | 2,230,971 | $ | 2,206,877 | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing | $ | 244,668 | $ | 269,174 | $ | 262,636 | $ | 301,727 | $ | 290,169 | |||||||||||||||||||
Interest bearing | |||||||||||||||||||||||||||||
Interest checking | 156,537 | 155,907 | 232,616 | 219,838 | 236,562 | ||||||||||||||||||||||||
Money market and savings deposits | 746,599 | 710,546 | 647,904 | 697,564 | 709,127 | ||||||||||||||||||||||||
Time deposits | 660,841 | 646,978 | 627,257 | 493,350 | 437,695 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1,563,977 | 1,513,431 | 1,507,777 | 1,410,752 | 1,383,384 | ||||||||||||||||||||||||
Total deposits | 1,808,645 | 1,782,605 | 1,770,413 | 1,712,479 | 1,673,553 | ||||||||||||||||||||||||
Borrowings | 177,959 | 194,636 | 233,883 | 122,082 | 23,458 | ||||||||||||||||||||||||
Subordinated debentures | 50,079 | 40,348 | 40,319 | 40,346 | 40,597 | ||||||||||||||||||||||||
Accrued interest payable | 7,814 | 5,612 | 3,836 | 2,389 | 1,154 | ||||||||||||||||||||||||
Other liabilities | 31,360 | 29,714 | 28,283 | 31,652 | 32,001 | ||||||||||||||||||||||||
Total liabilities | 2,075,857 | 2,052,915 | 2,076,734 | 1,908,948 | 1,770,763 | ||||||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 13,181 | 13,181 | 13,180 | 13,156 | 13,101 | ||||||||||||||||||||||||
Surplus | 79,731 | 79,650 | 79,473 | 79,072 | 78,313 | ||||||||||||||||||||||||
Treasury stock | (26,079) | (26,079) | (24,512) | (21,821) | (18,033) | ||||||||||||||||||||||||
Unearned common stock held by employee stock ownership plan | (1,403) | (1,403) | (1,403) | (1,403) | (1,602) | ||||||||||||||||||||||||
Retained earnings | 102,043 | 99,434 | 96,180 | 95,815 | 92,405 | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (12,359) | (10,821) | (9,869) | (11,539) | (13,023) | ||||||||||||||||||||||||
Total stockholders’ equity | 155,114 | 153,962 | 153,049 | 153,280 | 151,161 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,230,971 | $ | 2,206,877 | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Interest income | $ | 35,459 | $ | 33,836 | $ | 30,947 | $ | 27,763 | $ | 22,958 | |||||||||||||||||||
Interest expense | 18,235 | 16,738 | 13,270 | 9,245 | 4,932 | ||||||||||||||||||||||||
Net interest income | 17,224 | 17,098 | 17,677 | 18,518 | 18,026 | ||||||||||||||||||||||||
Provision for credit losses | 82 | 705 | 1,399 | 746 | 526 | ||||||||||||||||||||||||
Non-interest income | 8,086 | 9,124 | 6,638 | 7,996 | 10,224 | ||||||||||||||||||||||||
Non-interest expense | 20,018 | 19,615 | 17,789 | 20,047 | 20,261 | ||||||||||||||||||||||||
Income before income tax expense | 5,210 | 5,902 | 5,127 | 5,721 | 7,463 | ||||||||||||||||||||||||
Income tax expense | 1,205 | 1,257 | 1,106 | 1,164 | 1,665 | ||||||||||||||||||||||||
Net Income | $ | 4,005 | $ | 4,645 | $ | 4,021 | $ | 4,557 | $ | 5,798 | |||||||||||||||||||
Basic weighted average shares outstanding | 11,057 | 11,062 | 11,272 | 11,389 | 11,736 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.42 | $ | 0.36 | $ | 0.40 | $ | 0.49 | |||||||||||||||||||
Diluted weighted average shares outstanding | 11,363 | 11,304 | 11,656 | 11,795 | 12,118 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.35 | $ | 0.41 | $ | 0.34 | $ | 0.39 | $ | 0.48 |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 17,205 | $ | (15) | $ | 34 | $ | 17,224 | $ | 17,664 | $ | 218 | $ | 144 | $ | 18,026 | |||||||||||||||||||||||||||||||
Provision for credit losses | 82 | — | — | 82 | 526 | — | — | 526 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 17,123 | (15) | 34 | 17,142 | 17,138 | 218 | 144 | 17,500 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 1,758 | 1,258 | 5,070 | 8,086 | 1,730 | 1,114 | 7,380 | 10,224 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 12,564 | 826 | 6,628 | 20,018 | 11,354 | 780 | 8,127 | 20,261 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 6,317 | $ | 417 | $ | (1,524) | $ | 5,210 | $ | 7,514 | $ | 552 | $ | (603) | $ | 7,463 | |||||||||||||||||||||||||||||||
Efficiency ratio | 66 | % | 66 | % | 130 | % | 79 | % | 59 | % | 59 | % | 108 | % | 72 | % | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 51,928 | $ | (12) | $ | 85 | $ | 52,001 | $ | 50,197 | $ | 628 | $ | 785 | $ | 51,610 | |||||||||||||||||||||||||||||||
Provision for credit losses | 2,186 | — | — | 2,186 | 1,743 | — | — | 1,743 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 49,742 | (12) | 85 | 49,815 | 48,454 | 628 | 785 | 49,867 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 5,696 | 3,689 | 14,463 | 23,848 | 6,267 | 3,671 | 23,790 | 33,728 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 35,608 | 2,704 | 19,110 | 57,422 | 32,186 | 2,480 | 26,734 | 61,400 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 19,830 | $ | 973 | $ | (4,562) | $ | 16,241 | $ | 22,535 | $ | 1,819 | $ | (2,159) | $ | 22,195 | |||||||||||||||||||||||||||||||
Efficiency ratio | 62 | % | 74 | % | 131 | % | 76 | % | 57 | % | 58 | % | 109 | % | 72 | % | |||||||||||||||||||||||||||||||
Allowance For Loan Losses to Loans, Net of Fees and Costs, Excluding PPP Loans and Loans at Fair Value | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Allowance for credit losses (GAAP) | $ | 19,683 | $ | 20,242 | $ | 20,442 | $ | 18,828 | $ | 18,974 | |||||||||||||||||||
Loans, net of fees and costs (GAAP) | 1,885,629 | 1,859,839 | 1,818,189 | 1,743,682 | 1,610,349 | ||||||||||||||||||||||||
Less: PPP loans | (289) | (187) | (238) | (4,579) | (8,610) | ||||||||||||||||||||||||
Less: Loans fair valued | (13,231) | (14,403) | (14,434) | (14,502) | (14,702) | ||||||||||||||||||||||||
Loans, net of fees and costs, excluding loans at fair value and PPP loans (non-GAAP) | $ | 1,872,109 | $ | 1,845,249 | $ | 1,803,517 | $ | 1,724,601 | $ | 1,587,037 | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs (GAAP) | 1.04 | % | 1.09 | % | 1.12 | % | 1.08 | % | 1.18 | % | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs, excluding PPP loans and loans at fair value (non-GAAP) | 1.05 | % | 1.10 | % | 1.13 | % | 1.09 | % | 1.20 | % |
Tangible Common Equity Ratio Reconciliation - Corporation | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 155,114 | $ | 153,962 | $ | 153,049 | $ | 153,280 | $ | 151,161 | |||||||||||||||||||
Less: Goodwill and intangible assets | (3,921) | (3,972) | (4,023) | (4,074) | (4,125) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 151,193 | 149,990 | 149,026 | 149,206 | 147,036 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,230,971 | 2,206,877 | 2,229,783 | 2,062,228 | 1,921,924 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (3,921) | (3,972) | (4,023) | (4,074) | (4,125) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,227,050 | $ | 2,202,905 | $ | 2,225,760 | $ | 2,058,154 | $ | 1,917,799 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Corporation (non-GAAP) | 6.79 | % | 6.81 | % | 6.70 | % | 7.25 | % | 7.67 | % |
Tangible Common Equity Ratio Reconciliation - Bank | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 201,996 | $ | 192,209 | $ | 187,954 | $ | 185,039 | $ | 188,386 | |||||||||||||||||||
Less: Goodwill and intangible assets | (3,921) | (3,972) | (4,023) | (4,074) | (4,125) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 198,075 | 188,237 | 183,931 | 180,965 | 184,261 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,232,297 | 2,208,252 | 2,229,721 | 2,059,557 | 1,921,714 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (3,921) | (3,972) | (4,023) | (4,074) | (4,125) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,228,376 | $ | 2,204,280 | $ | 2,225,698 | $ | 2,055,483 | $ | 1,917,589 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 8.89 | % | 8.54 | % | 8.26 | % | 8.80 | % | 9.61 | % | |||||||||||||||||||
Tangible Book Value Reconciliation | |||||||||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | |||||||||||||||||||||||||
Book value per common share | $ | 13.88 | $ | 13.77 | $ | 13.54 | $ | 13.37 | $ | 12.93 | |||||||||||||||||||
Less: Impact of goodwill /intangible assets | 0.35 | 0.35 | 0.36 | 0.36 | 0.35 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 13.53 | $ | 13.42 | $ | 13.18 | $ | 13.01 | $ | 12.58 |
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Cover |
Oct. 27, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Oct. 27, 2023 |
Entity Registrant Name | Meridian Corp |
Entity Incorporation, State or Country Code | PA |
Entity File Number | 000-55983 |
Entity Tax Identification Number | 83-1561918 |
Entity Address, Address Line One | 9 Old Lincoln Highway, Malvern, Pennsylvania |
Entity Address, City or Town | Malvern |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19355 |
City Area Code | (484) 568-5000Registrant’s telephone number, including area code |
Local Phone Number | (484) 568-5000Registrant’s telephone number, including area code |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | Common Stock, $1 par value |
Trading Symbol | MRBK |
Security Exchange Name | NASDAQ |
Entity Central Index Key | 0001750735 |
Amendment Flag | false |
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