Meridian Corporation Reports Second Quarter 2026 Results and Announces a Quarterly Dividend of $0.14 per Common Share.
MALVERN, PA., July 30, 2026 — Meridian Corporation (Nasdaq: MRBK) today reported:
Three Months Ended
(Dollars in thousands, except per share data)(Unaudited)
June 30, 2026
March 31, 2026
June 30, 2025
Income:
Net income
$
5,807
$
2,006
$
5,592
Diluted earnings per common share
0.48
0.17
0.49
Pre-provision net revenue (PPNR) (1)
10,447
10,081
11,090
(1) See Non-GAAP reconciliation in the Appendix
•Net income for the quarter ended June 30, 2026 was $5.8 million, or $0.48 per diluted share, an increase of $3.8 million, or 189.5%, from the prior quarter.
•Pre-provision net revenue1 for the quarter was $10.4 million, an increase of $366 thousand, or 3.6%, from the prior quarter.
•Return on average assets and return on average equity for the second quarter of 2026 were 0.90% and 11.42%, respectively.
•Total assets at June 30, 2026 were $2.6 billion, compared to $2.6 billion at March 31, 2026 and $2.5 billion at June 30, 2025.
•Commercial loans, excluding leases, increased $4.6 million, or 0.3% from prior quarter.
•On July 30, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable August 17, 2026 to shareholders of record as of August 10, 2026.
Christopher J. Annas, Chairman and CEO commented:
“The Meridian team delivered a strong second quarter performance, earning $5.8 million vs $2.0 million in the prior quarter. Net interest margin was steady at 3.69%, and the provision was markedly lower against an elevated provision in the prior quarter. Pre-provision net revenue of $10.4 million was up nearly 3.6% from prior quarter. Commercial loan growth for the quarter would have been $54 million, or 3.0%, if not for commercial loan and CRE loan payoffs of $38 million, as well as SBA loan sales in the current quarter of $11.9 million.
SBA loan sale income of $615 thousand is up from last quarter and should be more consistent as we adjust that business model. The mortgage group is still impacted by low inventory, but mortgage banking income was up 6% from Q2 2025. Mortgage third quarter originations look promising, but refi activity has fallen as rates have ticked up.
We had a large increase in the non-performing loans due to three real estate relationships, but our substantial collateral position in these three loans negated the need for any current provisioning. We are working tirelessly to resolve the non-performing loans, but also recognize that our historical loan growth rate and small/medium business focus can often lead to periods of elevated non-performing loans. Our task is to keep the charge-off percentage low, which we have. We also have two businesses, SBA and equipment finance, that have generally higher charge-offs than normal commercial/industrial lending, but we earn higher yields on those assets that offset the charge-offs.
We have hired an experienced payments team that has strong background in merchant acquiring, health savings accounts and the new capabilities of FedNow and RTP. With their industry contacts and qualifications, we are hoping to build a stronger deposit franchise and build fee income in that space. Payment methods are evolving rapidly and we are excited about the unique opportunities they could provide."
1
Select Condensed Financial Information
As of or for the three months ended (Unaudited)
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
(Dollars in thousands, except per share data)
Income:
Net income
$
5,807
$
2,006
$
7,186
$
6,659
$
5,592
Basic earnings per common share
0.49
0.17
0.62
0.59
0.50
Diluted earnings per common share
0.48
0.17
0.61
0.58
0.49
Net interest income
22,791
23,202
23,627
23,116
21,159
Balance Sheet:
Total assets
$
2,593,176
$
2,576,581
$
2,561,995
$
2,541,130
$
2,510,938
Loans, net of fees and costs
2,177,978
2,181,575
2,170,600
2,162,845
2,108,250
Total deposits
2,194,438
2,169,960
2,158,128
2,131,116
2,110,374
Non-interest bearing deposits
246,357
243,458
245,377
239,614
237,042
Stockholders' equity
204,810
200,225
199,716
188,029
178,020
Balance Sheet Average Balances:
Total assets
$
2,585,821
$
2,574,268
$
2,588,357
$
2,534,565
$
2,491,625
Total interest earning assets
2,485,398
2,472,659
2,495,922
2,443,261
2,404,952
Loans, net of fees and costs
2,180,863
2,175,938
2,200,626
2,146,651
2,113,411
Total deposits
2,188,649
2,171,837
2,173,242
2,143,821
2,095,028
Non-interest bearing deposits
252,600
250,203
256,554
253,374
249,745
Stockholders' equity
203,901
202,577
192,799
183,242
176,945
Performance Ratios (Annualized):
Return on average assets
0.90
%
0.32
%
1.10
%
1.04
%
0.90
%
Return on average equity
11.42
%
4.02
%
14.79
%
14.42
%
12.68
%
Income Statement - Second Quarter 2026 Compared to First Quarter 2026
Second quarter net income increased $3.8 million, or 189.5%, to $5.8 million due largely to an increase in non-interest income of $2.8 million, and a decrease of $4.5 million in the provision for credit losses, while non-interest expense increased $2.1 million over the prior quarter, and income tax expense increased $1.1 million over the prior quarter as well. Detailed explanations of the major categories of income and expense follow below.
2
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)
June 30, 2026
March 31, 2026
$ Change
% Change
Change due to rate
Change due to volume
Interest income:
Cash and cash equivalents
$
311
$
398
$
(87)
(21.9)
%
$
(2)
$
(85)
Investment securities - taxable
1,830
1,847
(17)
(0.9)
%
(27)
10
Investment securities - tax exempt (1)
393
396
(3)
(0.8)
%
(2)
(1)
Loans held for sale
616
338
278
82.2
%
20
258
Loans held for investment
37,702
37,806
(104)
(0.3)
%
(245)
141
Total loans
38,318
38,144
174
0.5
%
(225)
399
Total interest income
$
40,852
$
40,785
$
67
0.2
%
$
(256)
$
323
Interest expense:
Interest-bearing demand deposits
$
1,149
$
1,040
$
109
10.5
%
$
13
$
96
Money market and savings deposits
7,263
7,070
193
2.7
%
279
(86)
Time deposits
7,337
7,113
224
3.1
%
(22)
246
Total interest - bearing deposits
15,749
15,223
526
3.5
%
270
256
Borrowings
1,233
1,293
(60)
(4.6)
%
(13)
(47)
Subordinated debentures
1,007
994
13
1.3
%
10
3
Total interest expense
17,989
17,510
479
2.7
%
267
212
Net interest income differential
$
22,863
$
23,275
$
(412)
(1.77)
%
$
(523)
$
111
(1) Reflected on a tax-equivalent basis.
Interest income increased $67 thousand quarter-over-quarter on a tax equivalent basis, driven mainly by an increase in loans held for sale and loans held for investment average balances. The yield on interest-earnings assets decreased 10 basis points and negatively impacted interest income by $256 thousand, while the average balance of interest earning assets increased by $12.7 million, having a positive impact to interest income of $323 thousand. The yield on loans dropped 14 basis points due to an interest reversal of $885 thousand related to new nonaccrual loans in the quarter.
Average total loans, excluding residential loans for sale, increased $4.9 million. The largest drivers were increases in commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $21.2 million on average. Partially offsetting these increases were decreases of $7.1 million in SBA loan average balances, a $2.7 million decrease in the average balance of residential loans held for investment, along with a decrease in average leases of $4.6 million. Also contributing to the increase in interest income was a $16.9 million increase in the average balance of loans held for sale.
Interest expense increased $479 thousand, quarter-over-quarter, due largely to an increase in the cost of interest-bearing deposits. Interest expense on total deposits increased $526 thousand, as interest expense on borrowings decreased $60 thousand. During the period average balances of interest-bearing checking accounts increased $11.8 million, time deposits increased $18.2 million, while money market and savings deposit balances decreased $15.6 million on average and borrowings decreased $5.0 million on average. The cost of deposits increased 5 basis points as interest-bearing demand deposits and money market accounts had a cost increase, partially offset by the decrease in the cost of time deposits.
Overall the net interest margin decreased to 3.69%, compared to the prior quarter, drive by the decline in yield on interest-earning assets and an increase in cost of funds.
Provision for Credit Losses
In the second quarter the overall provision for credit losses fell by $4.5 million to $3.0 million, compared with $7.5 million in the first quarter. The primary reason for the lower level of provision expense was less loan charge-offs and lower loan growth quarter over quarter. Excluding the prior quarter’s $3.9 million charge-off and related provision on a single commercial mortgage, charge-offs in the second quarter declined by $1.3 million driving down the provision. SBA and lease net charge-offs were together down $2.3 million compared to prior quarter.
3
Non-interest income
The following table presents the components of non-interest income for the periods indicated:
Three Months Ended
(Dollars in thousands)
June 30, 2026
March 31, 2026
$ Change
% Change
Mortgage banking income (1)
$
6,229
$
4,115
$
2,114
51.4
%
Wealth management income
1,706
1,729
(23)
(1.3)
%
SBA loan income
615
150
465
310.0
%
Earnings on investment in life insurance
245
272
(27)
(9.9)
%
Net gain (loss) on sale of MSRs
—
(159)
159
(100.0)
%
Net change in the fair value of loans held-for-investment
65
(39)
104
(266.7)
%
Other
1,023
969
54
5.6
%
Total non-interest income
$
9,883
$
7,037
$
2,846
40.4
%
(1) Includes FV change on mortgages HFS and related hedging derivatives.
Total non-interest income increased $2.8 million, or 40.4%, quarter-over-quarter largely due to a $2.1 million increase in mortgage banking income, and a $465 thousand increase in SBA loan income. Despite a quarter-over-quarter decrease of 33 basis points in the margin on mortgage loan sales, total loans sold increased by $81.1 million, or 20% from the prior quarter, resulting in a higher level of mortgage banking income, and the fair value of loans held for sale improved quarter-over-quarter as the loans available for sale at June 30, 2026 were up $15.9 million over March 31, 2026.
SBA loan income increased $465 thousand due to the increase in SBA loans sold. $11.9 million of loans were sold during the quarter-ended June 30, 2026 compared to $6.7 million for the quarter-ended March 31, 2026. However, the gross margin on SBA loan sales was 7.9% for the quarter-ended June 30, 2026 compared to 8.5% for the quarter-ended March 31, 2026.
Non-interest expense
The following table presents the components of non-interest expense for the periods indicated:
Three Months Ended
(Dollars in thousands)
June 30, 2026
March 31, 2026
$ Change
% Change
Salaries and employee benefits
$
13,193
$
12,386
$
807
6.5
%
Occupancy and equipment
1,172
1,183
(11)
(0.9)
%
Professional fees
1,164
974
190
19.5
%
Data processing and software
2,018
1,973
45
2.3
%
Advertising and promotion
1,317
692
625
90.3
%
Pennsylvania bank shares tax
246
258
(12)
(4.7)
%
Other
3,117
2,692
425
15.8
%
Total non-interest expense
$
22,227
$
20,158
$
2,069
10.3
%
Salaries and benefits increased $807 thousand primarily due to the variable nature of the mortgage segment along with higher incentive compensation overall. Advertising and promotion costs increased $625 thousand, reflecting an increase in business development efforts and special events in the current quarter, which is generally seasonally higher. Other expense increased $425 thousand mainly due to an increase in OREO expenses and non-salary employee expenses in the current quarter. The increase in professional fees was due to expenses related to non-performing loans.
Balance Sheet - June 30, 2026 Compared to March 31, 2026
Total assets increased $16.6 million, or 0.6%, to $2.6 billion as of June 30, 2026 from $2.6 billion as of March 31, 2026.
Total portfolio loans decreased $3.2 million, or 0.1% quarter-over-quarter. While there was growth of $41.2 million in commercial mortgage loans, $1.2 million in commercial & industrial loans, and $3.0 million in home equity lines and loans during the second quarter, these increases were offset by a $27.9 million decrease in construction and land development loans, a $9.9 million decrease in SBA loans, and a $5.7 million decrease in lease financings. Commercial loan growth was impacted by $9.9 million in commercial loan payoffs during the quarter.
Total deposits increased $24.5 million, or 1.1% quarter-over-quarter, led by an increase of $21.6 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $19.5 million, non-interest bearing accounts increased $2.9 million or 1.2%, while interest bearing demand deposits decreased $5.9 million, and borrowings decreased $12.8 million, or 10.6% quarter-over-quarter.
4
Total stockholders’ equity increased by $4.6 million from March 31, 2026, to $204.8 million as of June 30, 2026. Changes to equity for the quarter included net income of $5.8 million, and an increase of $146 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.72% at June 30, 2026.
Asset Quality Summary
Non-performing loans increased $23.4 million, to $82.1 million at June 30, 2026 compared to $58.7 million at March 31, 2026, with the largest increases coming from land development loans ($20.0 million) and commercial mortgage loans ($5.5 million) that were downgraded during the current quarter partially offset by payoffs of $3.3 million of several CRE, construction and consumer loans combined. The downgraded land development and commercial mortgage loan relationships were well collateralized and therefore did not require any specific reserve as of June 30, 2026. SBA loans make up $24.6 million of total non-performing loans, with $11.9 million, or 48.4%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with 49.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points.
The ratio of non-performing loans to total loans as of June 30, 2026 was 3.68%. Due to the increase in non-performing loans, the ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 3.14%. As of June 30, 2026 there were specific reserves of $3.3 million against individually evaluated loans, an increase of $428 thousand from the level of specific reserves as of March 31, 2026.
Net charge-offs decreased to $2.6 million, or 0.12% of total average loans for the quarter ended June 30, 2026, compared to net charge-offs of $7.8 million, or 0.35%, for the quarter ended March 31, 2026. Second quarter charge-offs consisted of $414 thousand in SBA loans, $1.0 million in commercial loans, $1.2 million in finance receivables, and $455 thousand of small ticket equipment leases. Partially offsetting second quarter charge-offs were recoveries of $467 thousand between commercial loans, finance receivables, home equity loans, and leases.
The ratio of allowance for credit losses to total loans held for investment was 0.99% as of June 30, 2026, compared to 0.98% reported as of March 31, 2026.
Subsequent to June 30, 2026, a property in OREO valued at $719 thousand sold for a recorded gain of $218 thousand.
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
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL, including the timing of third-party appraisals and loan valuations from lead financial institutions in which we are a loan participant; cyber-security concerns; rapid technological developments and changes, including the development and use of artificial intelligence in business processes, services, and products; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the ongoing conflict in the Middle East, which could impact economic conditions in the United States; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.
6
-MERIDIAN CORPORATION AND SUBSIDIARIES
FINANCIAL RATIOS (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
Three Months Ended
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Earnings and Per Share Data:
Net income
$
5,807
$
2,006
$
7,186
$
6,659
$
5,592
Basic earnings per common share
$
0.49
$
0.17
$
0.62
$
0.59
$
0.50
Diluted earnings per common share
$
0.48
$
0.17
$
0.61
$
0.58
$
0.49
Common shares outstanding
11,895
11,879
11,826
11,517
11,297
Performance Ratios:
Return on average assets (2)
0.90
%
0.32
%
1.10
%
1.04
%
0.90
%
Return on average equity (2)
11.42
4.02
14.79
14.42
12.68
Net interest margin (tax-equivalent) (2)
3.69
3.82
3.77
3.77
3.54
Yield on earning assets (tax-equivalent) (2)
6.59
6.69
6.82
7.01
6.89
Cost of funds (2)
3.08
3.04
3.23
3.42
3.52
Efficiency ratio
68.03
%
66.66
%
63.25
%
65.15
%
65.82
%
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans
0.12
%
0.35
%
0.16
%
0.09
%
0.17
%
Non-performing loans to total loans
3.68
2.64
2.50
2.53
2.35
Non-performing assets to total assets
3.40
2.51
2.38
2.32
2.14
Allowance for credit losses to:
Total loans and other finance receivables
0.99
0.97
0.99
1.01
0.99
Total loans and other finance receivables (excluding loans at fair value) (1)
0.99
0.98
1.00
1.01
1.00
Non-performing loans
26.15
%
36.23
%
39.18
%
39.37
%
41.26
%
Capital Ratios:
Book value per common share
$
17.22
$
16.86
$
16.89
$
16.33
$
15.76
Tangible book value per common share
$
16.94
$
16.57
$
16.59
$
16.02
$
15.44
Total equity/Total assets
7.90
%
7.77
%
7.80
%
7.40
%
7.09
%
Tangible common equity/Tangible assets - Corporation (1)
7.78
7.65
7.67
7.27
6.96
Tangible common equity/Tangible assets - Bank (1)
9.51
9.38
9.41
9.16
8.96
Tier 1 leverage ratio - Bank
9.72
9.58
9.50
9.41
9.32
Common tier 1 risk-based capital ratio - Bank
10.65
10.52
10.66
10.52
10.53
Tier 1 risk-based capital ratio - Bank
10.65
10.52
10.66
10.52
10.53
Total risk-based capital ratio - Bank
11.64
%
11.51
%
11.65
%
11.54
%
11.54
%
(1) See Non-GAAP reconciliation in the Appendix
(2) Annualized
7
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Interest income:
Loans and other finance receivables, including fees
$
38,318
$
38,144
$
38,697
$
76,462
$
75,246
Securities - taxable
1,830
1,847
1,792
3,677
3,485
Securities - tax-exempt
321
323
295
644
608
Cash and cash equivalents
311
398
427
709
1,040
Total interest income
40,780
40,712
41,211
81,492
80,379
Interest expense:
Deposits
15,749
15,223
17,301
30,972
34,169
Borrowings and subordinated debentures
2,240
2,287
2,751
4,527
5,275
Total interest expense
17,989
17,510
20,052
35,499
39,444
Net interest income
22,791
23,202
21,159
45,993
40,935
Provision for credit losses
2,968
7,493
3,803
10,461
9,015
Net interest income after provision for credit losses
19,823
15,709
17,356
35,532
31,920
Non-interest income:
Mortgage banking income (1)
6,229
4,115
5,847
10,344
9,512
Wealth management income
1,706
1,729
1,492
3,435
3,027
SBA loan income
615
150
1,988
765
2,736
Earnings on investment in life insurance
245
272
240
517
462
Net gain (loss) on sale of MSRs
—
(159)
467
(159)
415
Net change in the fair value of loans held-for-investment
65
(39)
190
26
360
Other
1,023
969
1,064
1,992
2,100
Total non-interest income
9,883
7,037
11,288
16,920
18,612
Non-interest expense:
Salaries and employee benefits
13,193
12,386
13,179
25,579
24,564
Occupancy and equipment
1,172
1,183
1,037
2,355
2,375
Professional fees
1,164
974
1,164
2,138
1,927
Data processing and software
2,018
1,973
1,706
3,991
3,185
Advertising and promotion
1,317
692
1,277
2,009
2,056
Pennsylvania bank shares tax
246
258
269
504
538
Other
3,117
2,692
2,725
5,809
5,455
Total non-interest expense
22,227
20,158
21,357
42,385
40,100
Income before income taxes
7,479
2,588
7,287
10,067
10,432
Income tax expense
1,672
582
1,695
2,254
2,441
Net income
$
5,807
$
2,006
$
5,592
$
7,813
$
7,991
Basic earnings per common share
$
0.49
$
0.17
$
0.50
$
0.66
$
0.71
Diluted earnings per common share
$
0.48
$
0.17
$
0.49
$
0.64
$
0.70
Basic weighted average shares outstanding
11,859
11,811
11,228
11,835
11,215
Diluted weighted average shares outstanding
12,174
12,153
11,392
12,163
11,415
(1) Includes FV change on mortgages HFS and related hedging derivatives
8
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Assets:
Cash and due from banks
$
11,209
$
12,458
$
10,358
$
12,605
$
20,604
Interest-bearing deposits at other banks
24,998
15,811
25,420
27,384
29,570
Cash and cash equivalents
36,207
28,269
35,778
39,989
50,174
Securities available-for-sale, at fair value
200,552
196,012
193,457
194,268
187,902
Securities held-to-maturity, at amortized cost
32,445
32,494
32,544
32,593
32,642
Equity investments
2,146
2,137
2,166
2,150
2,130
Mortgage loans held for sale, at fair value
54,898
38,960
33,762
28,016
44,078
Loans and other finance receivables, net of fees and costs
2,177,978
2,181,575
2,170,600
2,162,845
2,108,250
Allowance for credit losses
(21,463)
(21,252)
(21,573)
(21,794)
(20,851)
Loans and other finance receivables, net of the allowance for credit losses
2,156,515
2,160,323
2,149,027
2,141,051
2,087,399
Restricted investment in bank stock
7,484
7,699
7,811
8,350
9,162
Bank premises and equipment, net
12,437
12,298
12,402
12,413
12,320
Bank owned life insurance
31,205
30,959
30,687
30,421
30,175
Accrued interest receivable
10,680
11,015
10,724
10,944
10,334
OREO and other repossessed assets
6,081
6,009
5,997
3,714
3,148
Deferred income taxes
4,535
4,548
4,215
4,989
5,314
Servicing assets
3,642
3,694
3,932
3,845
3,658
Goodwill
899
899
899
899
899
Intangible assets
2,461
2,512
2,563
2,614
2,665
Other assets
30,989
38,753
36,031
24,874
28,938
Total assets
$
2,593,176
$
2,576,581
$
2,561,995
$
2,541,130
$
2,510,938
Liabilities:
Deposits:
Non-interest bearing
$
246,357
$
243,458
$
245,377
$
239,614
$
237,042
Interest bearing:
Interest checking
151,235
157,151
157,360
151,973
173,865
Money market and savings deposits
1,033,043
1,013,533
1,023,290
996,126
956,448
Time deposits
763,803
755,818
732,101
743,403
743,019
Total interest-bearing deposits
1,948,081
1,926,502
1,912,751
1,891,502
1,873,332
Total deposits
2,194,438
2,169,960
2,158,128
2,131,116
2,110,374
Borrowings
108,032
120,838
117,338
137,265
138,965
Subordinated debentures
49,705
49,675
49,853
49,822
49,792
Accrued interest payable
5,587
6,620
6,531
7,095
7,059
Other liabilities
30,604
29,263
30,429
27,803
26,728
Total liabilities
2,388,366
2,376,356
2,362,279
2,353,101
2,332,918
Stockholders’ equity:
Common stock
13,927
13,882
13,830
13,521
13,300
Surplus
91,137
90,885
90,352
85,122
82,184
Treasury stock
(26,079)
(26,079)
(26,079)
(26,079)
(26,079)
Unearned common stock held by ESOP
(1,232)
(1,232)
(1,232)
(1,006)
(1,006)
Retained earnings
132,614
128,472
128,124
122,376
117,132
Accumulated other comprehensive loss
(5,557)
(5,703)
(5,279)
(5,905)
(7,511)
Total stockholders’ equity
204,810
200,225
199,716
188,029
178,020
Total liabilities and stockholders’ equity
$
2,593,176
$
2,576,581
$
2,561,995
$
2,541,130
$
2,510,938
9
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
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Interest income
$
40,780
$
40,712
$
42,826
$
43,109
$
41,211
Interest expense
17,989
17,510
19,199
19,993
20,052
Net interest income
22,791
23,202
23,627
23,116
21,159
Provision for credit losses
2,968
7,493
3,287
2,850
3,803
Non-interest income
9,883
7,037
10,615
9,953
11,288
Non-interest expense
22,227
20,158
21,658
21,546
21,357
Income before income tax expense
7,479
2,588
9,297
8,673
7,287
Income tax expense
1,672
582
2,111
2,014
1,695
Net Income
$
5,807
$
2,006
$
7,186
$
6,659
$
5,592
Basic weighted average shares outstanding
11,859
11,811
11,543
11,325
11,228
Basic earnings per common share
$
0.49
$
0.17
$
0.62
$
0.59
$
0.50
Diluted weighted average shares outstanding
12,174
12,153
11,771
11,540
11,392
Diluted earnings per common share
$
0.48
$
0.17
$
0.61
$
0.58
$
0.49
Segment Information
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
(dollars in thousands)
Bank
Wealth
Mortgage
Total
Bank
Wealth
Mortgage
Total
Net interest income
$
22,599
$
58
$
134
$
22,791
$
21,025
$
63
$
71
$
21,159
Provision for credit losses
2,968
—
—
2,968
3,803
—
—
3,803
Net interest income after provision
19,631
58
134
19,823
17,222
63
71
17,356
Non-interest income
1,844
1,706
6,333
9,883
3,029
1,492
6,767
11,288
Non-interest expense
15,056
1,190
5,981
22,227
15,049
951
5,357
21,357
Income before income taxes
$
6,419
$
574
$
486
$
7,479
$
5,202
$
604
$
1,481
$
7,287
Efficiency ratio
62
%
67
%
92
%
68
%
63
%
61
%
78
%
66
%
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
(dollars in thousands)
Bank
Wealth
Mortgage
Total
Bank
Wealth
Mortgage
Total
Net interest income
$
45,670
$
118
$
205
$
45,993
$
40,730
$
73
$
132
$
40,935
Provision for credit losses
10,461
—
—
10,461
9,015
—
—
9,015
Net interest income after provision
35,209
118
205
35,532
31,715
73
132
31,920
Non-interest income
3,242
3,435
10,243
16,920
4,942
3,027
10,643
18,612
Non-interest expense
29,013
2,169
11,203
42,385
27,809
1,768
10,523
40,100
Income before income taxes
$
9,438
$
1,384
$
(755)
$
10,067
$
8,848
$
1,332
$
252
$
10,432
Efficiency ratio
59
%
61
%
107
%
67
%
61
%
57
%
98
%
67
%
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
Six Months Ended
(Dollars in thousands, except per share data, Unaudited)
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Income before income tax expense
$
7,479
$
2,588
$
7,287
$
10,067
$
10,432
Provision for credit losses
2,968
7,493
3,803
10,461
9,015
Pre-provision net revenue
$
10,447
$
10,081
$
11,090
$
20,528
$
19,447
Pre-Provision Net Revenue Reconciliation
Three Months Ended
Six Months Ended
(Dollars in thousands, except per share data, Unaudited)
June 30, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Bank
$
9,387
$
10,513
$
9,005
$
19,899
$
17,863
Wealth
574
811
604
1,384
1,332
Mortgage
486
(1,243)
1,481
(755)
252
Pre-provision net revenue
$
10,447
$
10,081
$
11,090
$
20,528
$
19,447
Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding Loans at Fair Value
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Allowance for credit losses (GAAP)
$
21,463
$
21,252
$
21,573
$
21,794
$
20,851
Loans and other finance receivables (GAAP)
2,177,978
2,181,575
2,170,600
2,162,845
2,108,250
Less: Loans at fair value
(13,619)
(14,090)
(14,396)
(14,454)
(14,541)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)
$
2,164,359
$
2,167,485
$
2,156,204
$
2,148,391
$
2,093,709
ACL to loans and other finance receivables (GAAP)
0.99
%
0.97
%
0.99
%
1.01
%
0.99
%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)
0.99
%
0.98
%
1.00
%
1.01
%
1.00
%
11
Tangible Common Equity Ratio Reconciliation - Corporation
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Total stockholders' equity (GAAP)
$
204,810
$
200,225
$
199,716
$
188,029
$
178,020
Less: Goodwill and intangible assets
(3,360)
(3,411)
(3,462)
(3,513)
(3,564)
Tangible common equity (non-GAAP)
201,450
196,814
196,254
184,516
174,456
Total assets (GAAP)
2,593,176
2,576,581
2,561,995
2,541,130
2,510,938
Less: Goodwill and intangible assets
(3,360)
(3,411)
(3,462)
(3,513)
(3,564)
Tangible assets (non-GAAP)
$
2,589,816
$
2,573,170
$
2,558,533
$
2,537,617
$
2,507,374
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)
7.78
%
7.65
%
7.67
%
7.27
%
6.96
%
Tangible Common Equity Ratio Reconciliation - Bank
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Total stockholders' equity (GAAP)
$
249,468
$
244,621
$
244,064
$
236,038
$
228,127
Less: Goodwill and intangible assets
(3,360)
(3,411)
(3,462)
(3,513)
(3,564)
Tangible common equity (non-GAAP)
246,108
241,210
240,602
232,525
224,563
Total assets (GAAP)
2,591,551
2,575,135
2,560,485
2,541,395
2,510,684
Less: Goodwill and intangible assets
(3,360)
(3,411)
(3,462)
(3,513)
(3,564)
Tangible assets (non-GAAP)
$
2,588,191
$
2,571,724
$
2,557,023
$
2,537,882
$
2,507,120
Tangible common equity to tangible assets ratio - Bank (non-GAAP)
