$MRBK

Meridian Corp

CIK:0001750735|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans and other finance receivables, including fees	$ 38,318	$ 38,697	$ 76,462	$ 75,246
Securities - taxable	1,830	1,792	3,677	3,485
Securities - tax-exempt	321	295	644	608
Cash and cash equivalents	311	427	709	1,040
Total interest income	40,780	41,211	81,492	80,379
Interest expense:
Deposits	15,749	17,301	30,972	34,169
Borrowings and subordinated debentures	2,240	2,751	4,527	5,275
Total interest expense	17,989	20,052	35,499	39,444
Net interest income	22,791	21,159	45,993	40,935
Provision for credit losses	2,968	3,803	10,461	9,015
Net interest income after provision for credit losses	19,823	17,356	35,532	31,920
Non-interest income:
Mortgage banking income	6,095	5,762	10,623	9,155
Wealth management income	$ 1,706	$ 1,492	$ 3,435	$ 3,027
Type of revenue, extensible list	Wealth management income	Wealth management income	Wealth management income	Wealth management income
SBA loan income	$ 615	$ 1,988	$ 765	$ 2,736
Earnings on investment in life insurance	245	240	517	462
Net gain (loss) on sale of MSRs	0	467	(159)	415
Net change in the fair value of derivative instruments	(104)	(102)	(155)	47
Net change in the fair value of loans held-for-sale	187	171	(193)	273
Net change in the fair value of loans held-for-investment	65	190	26	360
Net gain on hedging activity	51	16	69	37
Other	1,023	1,064	1,992	2,100
Total non-interest income	9,883	11,288	16,920	18,612
Non-interest expense:
Salaries and employee benefits	13,193	13,179	25,579	24,564
Occupancy and equipment	1,172	1,037	2,355	2,375
Professional fees	1,164	1,164	2,138	1,927
Data processing and software	2,018	1,706	3,991	3,185
Advertising and promotion	1,317	1,277	2,009	2,056
Pennsylvania bank shares tax	246	269	504	538
Other	3,117	2,725	5,809	5,455
Total non-interest expense	22,227	21,357	42,385	40,100
Income before income taxes	7,479	7,287	10,067	10,432
Income tax expense	1,672	1,695	2,254	2,441
Net income	$ 5,807	$ 5,592	$ 7,813	$ 7,991
Basic earnings per common share (in dollars per share)	$ 0.49	$ 0.50	$ 0.66	$ 0.71
Diluted earnings per common share (in dollars per share)	$ 0.48	$ 0.49	$ 0.64	$ 0.70
Basic weighted average shares outstanding (in shares)	11,859	11,228	11,835	11,215
Diluted weighted average shares outstanding (in shares)	12,174	11,392	12,163	11,415

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Statement of Cash Flows [Abstract]
Net income	$ 7,813	$ 7,991
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of investment premiums and discounts and change in fair value of equity securities	221	1,091
Depreciation and amortization (accretion), net	220	(23)
Provision for credit losses	10,461	9,015
Amortization of issuance costs on subordinated debt	63	62
Stock based compensation	86	174
Net change in fair value of derivative instruments	155	(47)
Net change in fair value of loans held for sale	193	(273)
Net change in fair value of loans held for investment	(26)	(360)
Amortization and net impairment of servicing rights	132	637
Net loss (gain) on sale of MSRs	159	(415)
Gain on sale of OREO	0	(15)
SBA loan income	(765)	(2,736)
Proceeds from sale of loans	418,882	371,239
Loans originated for sale	(429,588)	(373,476)
Mortgage banking income	(10,623)	(9,155)
Decrease (increase) in accrued interest receivable	44	(376)
Decrease in other assets	5,896	4,829
Earnings from investment in bank owned life insurance	(517)	(462)
Increase in deferred income tax	(239)	(854)
(Decrease) increase in accrued interest payable	(944)	199
Increase (Decrease) in other liabilities	310	(973)
Net cash provided by operating activities	1,933	6,072
Activity in available-for-sale securities:
Maturities, repayments and calls	13,571	6,832
Purchases	(21,107)	(20,443)
Activity in held-to-maturity securities:
Maturities, repayments and calls	0	999
Proceeds from sale of OREO	0	15
Proceeds from sale of MSRs	0	502
Proceeds from sale of loans held for investment	18,608	51,661
Net redemptions (purchases) of restricted investments in bank stocks	327	(1,409)
Net increase in loans	(36,473)	(137,816)
Purchases of premises and equipment	(696)	(890)
Net cash used in investing activities	(25,770)	(100,549)
Cash flows from financing activities:
Net increase in deposits	36,310	105,006
Decrease in short-term borrowings with maturities > 90 days	(9,806)
Increase in short-term borrowings with maturities less than 90 days	500	14,494
Repayment of subordinated debt	(211)	(13)
Dividends paid	(3,323)	(2,820)
Stock based awards and exercises	796	522
Net cash provided by financing activities	24,266	117,189
Net change in cash and cash equivalents	429	22,712
Cash and cash equivalents at beginning of period	35,778	27,462
Cash and cash equivalents at end of period	36,207	50,174
Cash paid during the period for:
Interest	36,443	39,245
Federal	0	3,510
State	415	459
Total Income taxes paid	415	3,969
Net loans sold, not settled	1,460	2,980
Non-cash transfers from long-term borrowings to short-term borrowings	10,594	0
Non-cash transfers from loans receivable to OREO	0	719
Non-cash transfers from loans receivable to repossessed assets	$ 20	$ 2,429

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets:
Cash and due from banks	$ 11,209	$ 10,358
Interest-bearing deposits at other banks	24,998	25,420
Cash and cash equivalents	36,207	35,778
Securities available-for-sale, at fair value (amortized cost of $206,888 and $199,127, respectively)	200,552	193,457
Securities held-to-maturity, at amortized cost (fair value of $30,117 and $30,152, respectively)	32,445	32,544
Equity investments	2,146	2,166
Mortgage loans held for sale	54,898	33,762
Loans and other finance receivables, net of fees and costs	2,177,978	2,170,600
Allowance for credit losses	(21,463)	(21,573)
Loans and other finance receivables, net of the allowance for credit losses	2,156,515	2,149,027
Restricted investment in bank stock	7,484	7,811
Bank premises and equipment, net	12,437	12,402
Bank owned life insurance	31,205	30,687
Accrued interest receivable	10,680	10,724
OREO and other repossessed assets	6,081	5,997
Deferred income taxes	4,535	4,215
Servicing assets	3,642	3,932
Goodwill	899	899
Intangible assets	2,461	2,563
Other assets	30,989	36,031
Total assets	2,593,176	2,561,995
Deposits:
Non-interest bearing	246,357	245,377
Interest bearing	1,948,081	1,912,751
Total deposits	2,194,438	2,158,128
Borrowings	108,032	117,338
Subordinated debentures	49,705	49,853
Accrued interest payable	5,587	6,531
Other liabilities	30,604	30,429
Total liabilities	2,388,366	2,362,279
Stockholders’ equity:
Common stock, $1 par value: $25,000,000 shares authorized; 13,926,981 and 13,829,645 shares issued, respectively, and 11,923,798 and 11,826,462 shares outstanding, respectively	13,927	13,830
Surplus	91,137	90,352
Treasury stock, 2,003,183 shares, at cost	(26,079)	(26,079)
Unearned common stock held by ESOP	(1,232)	(1,232)
Retained earnings	132,614	128,124
Accumulated other comprehensive loss	(5,557)	(5,279)
Total stockholders’ equity	204,810	199,716
Total liabilities and stockholders’ equity	$ 2,593,176	$ 2,561,995