(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: May 2, 2023 | ||||||||||||||
By: | /s/ Denise Lindsay | |||||||||||||
Denise Lindsay | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
As of or for the quarter ended (Unaudited) | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||
Net income | $ | 4,021 | $ | 4,557 | $ | 5,798 | $ | 5,938 | $ | 5,535 | |||||||||||||||||||
Basic earnings per common share | 0.36 | 0.40 | 0.49 | 0.49 | 0.46 | ||||||||||||||||||||||||
Diluted earnings per common share | 0.34 | 0.39 | 0.48 | 0.48 | 0.44 | ||||||||||||||||||||||||
Net interest income | 17,677 | 18,518 | 18,026 | 17,551 | 16,035 | ||||||||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||||||
Total assets | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | |||||||||||||||||||
Loans, net of fees and costs | 1,818,189 | 1,743,682 | 1,610,349 | 1,518,893 | 1,431,906 | ||||||||||||||||||||||||
Total deposits | 1,770,413 | 1,712,479 | 1,673,553 | 1,568,014 | 1,564,851 | ||||||||||||||||||||||||
Non-interest bearing deposits | 262,636 | 301,727 | 290,169 | 291,925 | 291,379 | ||||||||||||||||||||||||
Stockholders' equity | 153,049 | 153,280 | 151,161 | 156,087 | 157,684 | ||||||||||||||||||||||||
Balance Sheet (Average Balances): | |||||||||||||||||||||||||||||
Total assets | $ | 2,088,599 | $ | 1,962,915 | $ | 1,868,194 | $ | 1,811,335 | $ | 1,752,643 | |||||||||||||||||||
Total interest earning assets | 1,995,460 | 1,877,967 | 1,791,255 | 1,736,547 | 1,680,070 | ||||||||||||||||||||||||
Loans, net of fees and costs | 1,783,322 | 1,674,215 | 1,565,861 | 1,484,696 | 1,415,831 | ||||||||||||||||||||||||
Total deposits | 1,759,571 | 1,698,597 | 1,597,648 | 1,567,325 | 1,504,241 | ||||||||||||||||||||||||
Non-interest bearing deposits | 296,037 | 312,297 | 295,975 | 296,521 | 281,123 | ||||||||||||||||||||||||
Stockholders' equity | 153,179 | 151,791 | 157,614 | 158,420 | 161,939 | ||||||||||||||||||||||||
Performance Ratios (Annualized): | |||||||||||||||||||||||||||||
Return on average assets | 0.78 | % | 0.92 | % | 1.23 | % | 1.31 | % | 1.28 | % | |||||||||||||||||||
Return on average equity | 10.65 | % | 11.91 | % | 14.59 | % | 15.03 | % | 13.86 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | March 31, 2023 | December 31, 2022 | $ Change | % Change | Change due to rate | Change due to volume | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 215 | $ | 126 | $ | 89 | 70.6 | % | $ | 27 | $ | 62 | |||||||||||||||||||||||
Federal funds sold | 2 | 3 | (1) | (33.3) | % | — | (1) | ||||||||||||||||||||||||||||
Investment securities - taxable (1) | 959 | 821 | 138 | 16.8 | % | 88 | 50 | ||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 430 | 449 | (19) | (4.2) | % | (24) | 5 | ||||||||||||||||||||||||||||
Loans held for sale | 217 | 292 | (75) | (25.7) | % | (13) | (62) | ||||||||||||||||||||||||||||
Loans held for investment (1) | 29,202 | 26,150 | 3,052 | 11.7 | % | 1,301 | 1,751 | ||||||||||||||||||||||||||||
Total loans | 29,419 | 26,442 | 2,977 | 11.3 | % | 1,288 | 1,689 | ||||||||||||||||||||||||||||
Total interest income | 31,025 | 27,841 | 3,184 | 11.4 | % | 1,379 | 1,805 | ||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,855 | $ | 1,388 | $ | 467 | 33.6 | % | $ | 400 | $ | 67 | |||||||||||||||||||||||
Money market and savings deposits | 4,477 | 3,851 | 626 | 16.3 | % | 957 | (331) | ||||||||||||||||||||||||||||
Time deposits | 5,115 | 2,976 | 2,139 | 71.9 | % | 1,209 | 930 | ||||||||||||||||||||||||||||
Total deposits | 11,447 | 8,215 | 3,232 | 39.3 | % | 2,566 | 666 | ||||||||||||||||||||||||||||
Borrowings | 1,237 | 439 | 798 | 181.8 | % | 14 | 784 | ||||||||||||||||||||||||||||
Subordinated debentures | 586 | 591 | (5) | (0.8) | % | (1) | (4) | ||||||||||||||||||||||||||||
Total interest expense | 13,270 | 9,245 | 4,025 | 43.5 | % | 2,579 | 1,446 | ||||||||||||||||||||||||||||
Net interest income differential | $ | 17,755 | $ | 18,596 | $ | (841) | (4.52) | % | $ | (1,200) | $ | 359 | |||||||||||||||||||||||
(1) Reflected on a tax-equivalent basis. |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 3,272 | $ | 3,958 | $ | (686) | (17.3) | % | |||||||||||||||
Wealth management income | 1,196 | 1,061 | 135 | 12.7 | % | ||||||||||||||||||
SBA loan income | 713 | 522 | 191 | 36.6 | % | ||||||||||||||||||
Earnings on investment in life insurance | 192 | 140 | 52 | 37.1 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | (69) | 10 | (79) | (790.0) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | (1) | 249 | (250) | (100.4) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | 117 | 91 | 26 | 28.6 | % | ||||||||||||||||||
Net gain on hedging activity | — | 498 | (498) | (100.0) | % | ||||||||||||||||||
Service charges | 35 | 35 | — | — | % | ||||||||||||||||||
Other | 1,183 | 1,432 | (249) | (17.4) | % | ||||||||||||||||||
Total non-interest income | $ | 6,638 | $ | 7,996 | $ | (1,358) | (17.0) | % |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | March 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 11,061 | $ | 12,794 | $ | (1,733) | (13.5) | % | |||||||||||||||
Occupancy and equipment | 1,244 | 1,218 | 26 | 2.1 | % | ||||||||||||||||||
Professional fees | 823 | 976 | (153) | (15.7) | % | ||||||||||||||||||
Advertising and promotion | 861 | 996 | (135) | (13.6) | % | ||||||||||||||||||
Data processing | 647 | 677 | (30) | (4.4) | % | ||||||||||||||||||
Information technology | 785 | 836 | (51) | (6.1) | % | ||||||||||||||||||
Pennsylvania bank shares tax | 245 | 181 | 64 | 35.4 | % | ||||||||||||||||||
Other | 2,123 | 2,369 | (246) | (10.4) | % | ||||||||||||||||||
Total non-interest expense | $ | 17,789 | $ | 20,047 | $ | (2,258) | (11.3) | % |
March 31, 2023 | December 31, 2022 | ||||||||||
Stockholders' equity to total assets | 6.86 | % | 7.43 | % | |||||||
Tangible common equity to tangible assets (1) | 6.70 | % | 7.25 | % | |||||||
Tier 1 leverage ratio - Corporation | 7.65 | % | 8.13 | % | |||||||
Common tier 1 risk-based capital ratio - Corporation | 8.44 | % | 8.77 | % | |||||||
Tier 1 risk-based capital ratio - Corporation | 8.44 | % | 8.77 | % | |||||||
Total risk-based capital ratio - Corporation | 11.63 | % | 12.05 | % | |||||||
(1) See Non-GAAP reconciliation in the Appendix |
Quarter Ended | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Earnings and Per Share Data: | |||||||||||||||||||||||||||||
Net income | $ | 4,021 | $ | 4,557 | $ | 5,798 | $ | 5,938 | $ | 5,535 | |||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.40 | $ | 0.49 | $ | 0.49 | $ | 0.46 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.39 | $ | 0.48 | $ | 0.48 | $ | 0.44 | |||||||||||||||||||
Common shares outstanding | 11,305 | 11,466 | 11,689 | 12,074 | 12,258 | ||||||||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Return on average assets | 0.78 | % | 0.92 | % | 1.23 | % | 1.31 | % | 1.28 | % | |||||||||||||||||||
Return on average equity | 10.65 | 11.91 | 14.59 | 15.03 | 13.86 | ||||||||||||||||||||||||
Net interest margin (tax-equivalent) | 3.61 | 3.93 | 4.01 | 4.07 | 3.89 | ||||||||||||||||||||||||
Yield on earning assets (tax-equivalent) | 6.31 | 5.88 | 5.10 | 4.65 | 4.35 | ||||||||||||||||||||||||
Cost of funds | 2.83 | 2.07 | 1.17 | 0.61 | 0.50 | ||||||||||||||||||||||||
Efficiency ratio | 73.16 | % | 75.61 | % | 71.72 | % | 70.49 | % | 73.56 | % | |||||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.08 | % | 0.05 | % | 0.02 | % | 0.03 | % | 0.04 | % | |||||||||||||||||||
Non-performing loans to total loans | 1.25 | 1.20 | 1.40 | 1.46 | 1.51 | ||||||||||||||||||||||||
Non-performing assets to total assets | 1.11 | 1.11 | 1.20 | 1.24 | 1.25 | ||||||||||||||||||||||||
Allowance for credit losses to: | |||||||||||||||||||||||||||||
Total loans held for investment | 1.12 | 1.08 | 1.18 | 1.24 | 1.31 | ||||||||||||||||||||||||
Total loans held for investment (excluding loans at fair value and PPP loans) (1) | 1.13 | 1.09 | 1.20 | 1.27 | 1.38 | ||||||||||||||||||||||||
Non-performing loans | 88.41 | % | 88.66 | % | 82.20 | % | 81.82 | % | 82.48 | % | |||||||||||||||||||
Capital Ratios: | |||||||||||||||||||||||||||||
Book value per common share | $ | 13.54 | $ | 13.37 | $ | 12.93 | $ | 12.93 | $ | 12.86 | |||||||||||||||||||
Tangible book value per common share | $ | 13.18 | $ | 13.01 | $ | 12.58 | $ | 12.58 | $ | 12.52 | |||||||||||||||||||
Total equity/Total assets | 6.86 | % | 7.43 | % | 7.87 | % | 8.42 | % | 8.61 | % | |||||||||||||||||||
Tangible common equity/Tangible assets - Corporation (1) | 6.70 | 7.25 | 7.67 | 8.22 | 8.40 | ||||||||||||||||||||||||
Tangible common equity/Tangible assets - Bank (1) | 8.08 | 8.80 | 9.61 | 10.17 | 10.40 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Corporation | 7.65 | 8.13 | 8.54 | 8.87 | 9.10 | ||||||||||||||||||||||||
Tier 1 leverage ratio - Bank | 9.32 | 9.95 | 10.52 | 10.86 | 11.20 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Corporation | 8.44 | 8.77 | 9.28 | 9.79 | 10.09 | ||||||||||||||||||||||||
Common tier 1 risk-based capital ratio - Bank | 10.27 | 10.73 | 11.44 | 11.98 | 12.41 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Corporation | 8.44 | 8.77 | 9.28 | 9.79 | 10.09 | ||||||||||||||||||||||||
Tier 1 risk-based capital ratio - Bank | 10.27 | 10.73 | 11.44 | 11.98 | 12.41 | ||||||||||||||||||||||||
Total risk-based capital ratio - Corporation | 11.63 | 12.05 | 12.80 | 13.50 | 13.91 | ||||||||||||||||||||||||
Total risk-based capital ratio - Bank | 11.41 | % | 11.87 | % | 12.70 | % | 13.33 | % | 13.76 | % | |||||||||||||||||||
(1) See Non-GAAP reconciliation in the Appendix |
Three Months Ended | |||||||||||||||||
March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||
Interest income: | |||||||||||||||||
Loans and other finance receivables, including fees | $ | 29,417 | $ | 26,440 | $ | 17,219 | |||||||||||
Securities - taxable | 959 | 821 | 426 | ||||||||||||||
Securities - tax-exempt | 354 | 373 | 306 | ||||||||||||||
Cash and cash equivalents | 217 | 129 | 13 | ||||||||||||||
Total interest income | 30,947 | 27,763 | 17,964 | ||||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 11,447 | 8,215 | 1,289 | ||||||||||||||
Borrowings | 1,823 | 1,030 | 640 | ||||||||||||||
Total interest expense | 13,270 | 9,245 | 1,929 | ||||||||||||||
Net interest income | 17,677 | 18,518 | 16,035 | ||||||||||||||
Provision for credit losses | 1,399 | 746 | 615 | ||||||||||||||
Net interest income after provision for loan losses | 16,278 | 17,772 | 15,420 | ||||||||||||||
Non-interest income: | |||||||||||||||||
Mortgage banking income | 3,272 | 3,958 | 7,096 | ||||||||||||||
Wealth management income | 1,196 | 1,061 | 1,304 | ||||||||||||||
SBA loan income | 713 | 522 | 2,520 | ||||||||||||||
Earnings on investment in life insurance | 192 | 140 | 138 | ||||||||||||||
Net change in the fair value of derivative instruments | (69) | 10 | (166) | ||||||||||||||
Net change in the fair value of loans held-for-sale | (1) | 249 | (1,124) | ||||||||||||||
Net change in the fair value of loans held-for-investment | 117 | 91 | (778) | ||||||||||||||
Net gain on hedging activity | — | 498 | 2,827 | ||||||||||||||
Service charges | 35 | 35 | 27 | ||||||||||||||
Other | 1,183 | 1,432 | 1,258 | ||||||||||||||
Total non-interest income | 6,638 | 7,996 | 13,102 | ||||||||||||||
Non-interest expense: | |||||||||||||||||
Salaries and employee benefits | 11,061 | 12,794 | 15,298 | ||||||||||||||
Occupancy and equipment | 1,244 | 1,218 | 1,252 | ||||||||||||||
Professional fees | 823 | 976 | 848 | ||||||||||||||
Advertising and promotion | 861 | 996 | 986 | ||||||||||||||
Data processing and software | 1,432 | 1,513 | 1,189 | ||||||||||||||
Pennsylvania bank shares tax | 245 | 181 | 199 | ||||||||||||||
Other | 2,123 | 2,369 | 1,661 | ||||||||||||||
Total non-interest expense | 17,789 | 20,047 | 21,433 | ||||||||||||||
Income before income taxes | 5,127 | 5,721 | 7,089 | ||||||||||||||
Income tax expense | 1,106 | 1,164 | 1,554 | ||||||||||||||
Net income | $ | 4,021 | $ | 4,557 | $ | 5,535 | |||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.40 | $ | 0.46 | |||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.39 | $ | 0.44 | |||||||||||
Basic weighted average shares outstanding | 11,272 | 11,389 | 12,046 | ||||||||||||||
Diluted weighted average shares outstanding | 11,656 | 11,795 | 12,524 |
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 8,473 | $ | 11,299 | $ | 12,114 | $ | 8,280 | $ | 11,155 | |||||||||||||||||||
Interest-bearing deposits at other banks | 100,030 | 27,092 | 20,774 | 28,813 | 44,867 | ||||||||||||||||||||||||
Federal funds sold | — | — | — | — | 12,866 | ||||||||||||||||||||||||
Cash and cash equivalents | 108,503 | 38,391 | 32,888 | 37,093 | 68,888 | ||||||||||||||||||||||||
Securities available-for-sale, at fair value | 142,933 | 135,346 | 127,999 | 129,288 | 130,653 | ||||||||||||||||||||||||
Securities held-to-maturity, at amortized cost | 36,525 | 37,479 | 37,922 | 37,111 | 34,977 | ||||||||||||||||||||||||
Equity investments | 2,110 | 2,086 | 2,092 | 2,153 | 2,240 | ||||||||||||||||||||||||
Mortgage loans held for sale, at fair value | 35,701 | 22,243 | 33,800 | 58,938 | 81,258 | ||||||||||||||||||||||||
Loans and other finance receivables, net of fees and costs | 1,818,189 | 1,743,682 | 1,610,349 | 1,518,893 | 1,431,906 | ||||||||||||||||||||||||
Allowance for credit losses | (20,442) | (18,828) | (18,974) | (18,805) | (18,826) | ||||||||||||||||||||||||
Loans and other finance receivables, net of the allowance for credit losses | 1,797,747 | 1,724,854 | 1,591,375 | 1,500,088 | 1,413,080 | ||||||||||||||||||||||||
Restricted investment in bank stock | 10,173 | 6,931 | 5,217 | 4,719 | 4,330 | ||||||||||||||||||||||||
Bank premises and equipment, net | 13,281 | 13,349 | 12,835 | 12,185 | 11,883 | ||||||||||||||||||||||||
Bank owned life insurance | 28,247 | 28,055 | 22,916 | 22,778 | 22,641 | ||||||||||||||||||||||||
Accrued interest receivable | 7,651 | 7,363 | 6,008 | 5,108 | 4,848 | ||||||||||||||||||||||||
Other real estate owned | 1,703 | 1,703 | — | — | — | ||||||||||||||||||||||||
Deferred income taxes | 4,017 | 3,936 | 5,722 | 4,467 | 3,190 | ||||||||||||||||||||||||
Servicing assets | 12,125 | 12,346 | 12,807 | 12,860 | 13,396 | ||||||||||||||||||||||||
Goodwill | 899 | 899 | 899 | 899 | 899 | ||||||||||||||||||||||||
Intangible assets | 3,124 | 3,175 | 3,226 | 3,277 | 3,328 | ||||||||||||||||||||||||
Other assets | 25,044 | 24,072 | 26,218 | 22,055 | 35,978 | ||||||||||||||||||||||||
Total assets | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Non-interest bearing | $ | 262,636 | $ | 301,727 | $ | 290,169 | $ | 291,925 | $ | 291,379 | |||||||||||||||||||
Interest bearing | |||||||||||||||||||||||||||||
Interest checking | 232,616 | 219,838 | 236,562 | 205,298 | 252,298 | ||||||||||||||||||||||||
Money market and savings deposits | 647,904 | 697,564 | 709,127 | 728,886 | 688,117 | ||||||||||||||||||||||||
Time deposits | 627,257 | 493,350 | 437,695 | 341,905 | 333,057 | ||||||||||||||||||||||||
Total interest-bearing deposits | 1,507,777 | 1,410,752 | 1,383,384 | 1,276,089 | 1,273,472 | ||||||||||||||||||||||||
Total deposits | 1,770,413 | 1,712,479 | 1,673,553 | 1,568,014 | 1,564,851 | ||||||||||||||||||||||||
Borrowings | 233,883 | 122,082 | 23,458 | 59,136 | 36,136 | ||||||||||||||||||||||||
Subordinated debentures | 40,319 | 40,346 | 40,597 | 40,567 | 40,538 | ||||||||||||||||||||||||
Accrued interest payable | 3,836 | 2,389 | 1,154 | 146 | 575 | ||||||||||||||||||||||||
Other liabilities | 28,283 | 31,652 | 32,001 | 29,069 | 31,805 | ||||||||||||||||||||||||
Total liabilities | 2,076,734 | 1,908,948 | 1,770,763 | 1,696,932 | 1,673,905 | ||||||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||
Common stock | 13,180 | 13,156 | 13,144 | 13,139 | 13,134 | ||||||||||||||||||||||||
Surplus | 79,473 | 79,072 | 78,270 | 77,781 | 77,599 | ||||||||||||||||||||||||
Treasury stock | (24,512) | (21,821) | (18,033) | (11,896) | (8,860) | ||||||||||||||||||||||||
Unearned common stock held by employee stock ownership plan | (1,403) | (1,403) | (1,602) | (1,602) | (1,602) | ||||||||||||||||||||||||
Retained earnings | 96,180 | 95,815 | 92,405 | 87,815 | 83,104 | ||||||||||||||||||||||||
Accumulated other comprehensive loss | (9,869) | (11,539) | (13,023) | (9,150) | (5,691) | ||||||||||||||||||||||||
Total stockholders’ equity | 153,049 | 153,280 | 151,161 | 156,087 | 157,684 | ||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,229,783 | $ | 2,062,228 | $ | 1,921,924 | $ | 1,853,019 | $ | 1,831,589 | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Interest income | $ | 30,947 | $ | 27,763 | $ | 22,958 | $ | 20,037 | $ | 17,964 | |||||||||||||||||||
Interest expense | 13,270 | 9,245 | 4,932 | 2,486 | 1,929 | ||||||||||||||||||||||||
Net interest income | 17,677 | 18,518 | 18,026 | 17,551 | 16,035 | ||||||||||||||||||||||||
Provision for credit losses | 1,399 | 746 | 526 | 602 | 615 | ||||||||||||||||||||||||
Non-interest income | 6,638 | 7,996 | 10,224 | 10,403 | 13,102 | ||||||||||||||||||||||||
Non-interest expense | 17,789 | 20,047 | 20,261 | 19,706 | 21,433 | ||||||||||||||||||||||||
Income before income tax expense | 5,127 | 5,721 | 7,463 | 7,646 | 7,089 | ||||||||||||||||||||||||
Income tax expense | 1,106 | 1,164 | 1,665 | 1,708 | 1,554 | ||||||||||||||||||||||||
Net Income | $ | 4,021 | $ | 4,557 | $ | 5,798 | $ | 5,938 | $ | 5,535 | |||||||||||||||||||
Basic weighted average shares outstanding | 11,272 | 11,389 | 11,736 | 11,998 | 12,046 | ||||||||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.40 | $ | 0.49 | $ | 0.49 | $ | 0.46 | |||||||||||||||||||
Diluted weighted average shares outstanding | 11,656 | 11,795 | 12,118 | 12,398 | 12,524 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.39 | $ | 0.48 | $ | 0.48 | $ | 0.44 |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 17,627 | $ | 24 | $ | 26 | $ | 17,677 | $ | 15,610 | $ | 94 | $ | 331 | $ | 16,035 | |||||||||||||||||||||||||||||||
Provision for credit losses | 1,399 | — | — | 1,399 | 615 | — | — | 615 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision | 16,228 | 24 | 26 | 16,278 | 14,995 | 94 | 331 | 15,420 | |||||||||||||||||||||||||||||||||||||||
Non-interest income | 1,429 | 1,196 | 4,013 | 6,638 | 3,376 | 1,303 | 8,423 | 13,102 | |||||||||||||||||||||||||||||||||||||||
Non-interest expense | 10,698 | 989 | 6,102 | 17,789 | 10,208 | 878 | 10,347 | 21,433 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 6,959 | $ | 231 | $ | (2,063) | $ | 5,127 | $ | 8,163 | $ | 519 | $ | (1,593) | $ | 7,089 | |||||||||||||||||||||||||||||||
Efficiency ratio | 56.14 | % | 81.07 | % | 151.08 | % | 73.16 | % | 53.77 | % | 62.85 | % | 118.20 | % | 73.56 | % |
Allowance For Loan Losses to Loans, Net of Fees and Costs, Excluding PPP Loans and Loans at Fair Value | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Allowance for credit losses (GAAP) | $ | 20,442 | $ | 18,828 | $ | 18,974 | $ | 18,805 | $ | 18,826 | |||||||||||||||||||
Loans, net of fees and costs (GAAP) | 1,818,189 | 1,743,682 | 1,610,349 | 1,518,893 | 1,431,906 | ||||||||||||||||||||||||
Less: PPP loans | (238) | (4,579) | (8,610) | (21,460) | (49,680) | ||||||||||||||||||||||||
Less: Loans fair valued | (14,434) | (14,502) | (14,702) | (16,212) | (17,375) | ||||||||||||||||||||||||
Loans, net of fees and costs, excluding loans at fair value and PPP loans (non-GAAP) | $ | 1,803,517 | $ | 1,724,601 | $ | 1,587,037 | $ | 1,481,221 | $ | 1,364,851 | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs (GAAP) | 1.12 | % | 1.08 | % | 1.18 | % | 1.24 | % | 1.31 | % | |||||||||||||||||||
Allowance for credit losses to loans, net of fees and costs, excluding PPP loans and loans at fair value (non-GAAP) | 1.13 | % | 1.09 | % | 1.20 | % | 1.27 | % | 1.38 | % |
Tangible Common Equity Ratio Reconciliation - Corporation | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 153,049 | $ | 153,280 | $ | 151,161 | $ | 156,087 | $ | 157,684 | |||||||||||||||||||
Less: Goodwill and intangible assets | (4,023) | (4,074) | (4,125) | (4,176) | (4,227) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 149,026 | 149,206 | 147,036 | 151,911 | 153,457 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,229,783 | 2,062,228 | 1,921,924 | 1,853,019 | 1,831,589 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (4,023) | (4,074) | (4,125) | (4,176) | (4,227) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,225,760 | $ | 2,058,154 | $ | 1,917,799 | $ | 1,848,843 | $ | 1,827,362 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Corporation (non-GAAP) | 6.70 | % | 7.25 | % | 7.67 | % | 8.22 | % | 8.40 | % |
Tangible Common Equity Ratio Reconciliation - Bank | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Total stockholders' equity (GAAP) | $ | 183,931 | $ | 185,039 | $ | 188,386 | $ | 192,212 | $ | 194,347 | |||||||||||||||||||
Less: Goodwill and intangible assets | (4,023) | (4,074) | (4,125) | (4,176) | (4,227) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) | 179,908 | 180,965 | 184,261 | 188,036 | 190,120 | ||||||||||||||||||||||||
Total assets (GAAP) | 2,229,721 | 2,059,557 | 1,921,714 | 1,852,998 | 1,831,461 | ||||||||||||||||||||||||
Less: Goodwill and intangible assets | (4,023) | (4,074) | (4,125) | (4,176) | (4,227) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) | $ | 2,225,698 | $ | 2,055,483 | $ | 1,917,589 | $ | 1,848,822 | $ | 1,827,234 | |||||||||||||||||||
Tangible common equity to tangible assets ratio - Bank (non-GAAP) | 8.08 | % | 8.80 | % | 9.61 | % | 10.17 | % | 10.40 | % | |||||||||||||||||||
Tangible Book Value Reconciliation | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | |||||||||||||||||||||||||
Book value per common share | $ | 13.54 | $ | 13.37 | $ | 12.93 | $ | 12.93 | $ | 12.86 | |||||||||||||||||||
Less: Impact of goodwill /intangible assets | 0.36 | 0.36 | 0.35 | 0.35 | 0.34 | ||||||||||||||||||||||||
Tangible book value per common share | $ | 13.18 | $ | 13.01 | $ | 12.58 | $ | 12.58 | $ | 12.52 |
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Cover |
May 02, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 02, 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 |
Entity Ex Transition Period | 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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