Meridian Corporation (Nasdaq: MRBK) today reported:
| |
Three Months Ended |
|
(Dollars in thousands, except per share
data)((Unaudited) |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
Income: |
|
|
|
|
|
|
Net income |
$ |
3,326 |
|
$ |
2,676 |
|
$ |
4,645 |
| Diluted earnings per common
share |
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.41 |
| Pre-tax, pre-provision income
(1) |
$ |
7,072 |
|
$ |
6,419 |
|
$ |
6,607 |
| (1) See Non-GAAP reconciliation
in the Appendix |
|
|
|
|
|
- Commercial
loans, excluding leases, increased $40.7 million, or 3%, for the
quarter and $112.3 million, or 8%, year over year.
- Total assets at
June 30, 2024 were $2.4 billion, compared to $2.3 billion at March
31, 2024 and $2.2 billion at June 30, 2023.
- Pre-tax,
pre-provision income was $7.1 million for the quarter, with
$545 thousand from the mortgage division.
- Net interest
margin was 3.06% for the second quarter of 2024, with a loan yield
of 7.31%.
- On July 25,
2024, the Board of Directors declared a quarterly cash dividend of
$0.125 per common share, payable August 19, 2024 to
shareholders of record as of August 12, 2024.
Christopher J. Annas, Chairman and CEO
commented:
“Our second quarter earnings showed significant improvement from
the first quarter, increasing by 24.3% to $3.3 million, or $0.30
per share. Key highlights include a steady net interest margin at
3.06% for the quarter and a quarterly profit in our mortgage
segment. Total loan growth in the first half was 6.5% as we
continue to bring on new relationships and take advantage of market
disruption. Real estate loan growth is particularly strong in
residential and multi-family, which are both in high demand.
The Philadelphia metro region remains healthy, with a continued
shortage of homes for sale. A recent comment from DR Horton
highlighted that the US needs 5 million more homes nationally to
meet demand, a deficiency that is evident in our region. Private
equity’s significant ownership and rental of homes nationally
contributes to this problem. Despite these challenges our volume
has improved from 2023, and if rates come down the demand could
strengthen.
Meridian continues to gain market share in our region. While
navigating the rate rise has presented some obstacles, our core
businesses remain healthy. We are excited about our prospects and
the generally stable economic landscape.”
Select Condensed Financial
Information
| |
As of or
for the quarter ended (Unaudited) |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
| |
(Dollars in thousands, except per share data) |
| Income: |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,326 |
|
|
$ |
2,676 |
|
|
$ |
571 |
|
|
$ |
4,005 |
|
|
$ |
4,645 |
|
| Basic earnings per common
share |
|
0.30 |
|
|
|
0.24 |
|
|
|
0.05 |
|
|
|
0.36 |
|
|
|
0.42 |
|
| Diluted earnings per common
share |
|
0.30 |
|
|
|
0.24 |
|
|
|
0.05 |
|
|
|
0.35 |
|
|
|
0.41 |
|
| Net interest income |
|
16,846 |
|
|
|
16,609 |
|
|
|
16,942 |
|
|
|
17,224 |
|
|
|
17,098 |
|
| |
|
|
|
|
|
|
|
|
|
| Balance
Sheet: |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
2,351,584 |
|
|
$ |
2,292,923 |
|
|
$ |
2,246,193 |
|
|
$ |
2,230,971 |
|
|
$ |
2,206,877 |
|
| Loans, net of fees and
costs |
|
1,988,535 |
|
|
|
1,956,315 |
|
|
|
1,895,806 |
|
|
|
1,885,629 |
|
|
|
1,859,839 |
|
| Total deposits |
|
1,915,436 |
|
|
|
1,900,696 |
|
|
|
1,823,462 |
|
|
|
1,808,645 |
|
|
|
1,782,605 |
|
| Non-interest bearing
deposits |
|
224,040 |
|
|
|
220,581 |
|
|
|
239,289 |
|
|
|
244,668 |
|
|
|
269,174 |
|
| Stockholders' equity |
|
162,382 |
|
|
|
159,936 |
|
|
|
158,022 |
|
|
|
155,114 |
|
|
|
153,962 |
|
| |
|
|
|
|
|
|
|
|
|
| Balance Sheet Average
Balances: |
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
2,319,295 |
|
|
$ |
2,269,047 |
|
|
$ |
2,219,340 |
|
|
$ |
2,184,384 |
|
|
$ |
2,166,575 |
|
| Total interest earning
assets |
|
2,222,177 |
|
|
|
2,173,212 |
|
|
|
2,121,068 |
|
|
|
2,086,602 |
|
|
|
2,070,640 |
|
| Loans, net of fees and
costs |
|
1,972,740 |
|
|
|
1,944,187 |
|
|
|
1,891,170 |
|
|
|
1,876,648 |
|
|
|
1,847,736 |
|
| Total deposits |
|
1,919,954 |
|
|
|
1,823,523 |
|
|
|
1,820,532 |
|
|
|
1,782,140 |
|
|
|
1,775,444 |
|
| Non-interest bearing
deposits |
|
229,040 |
|
|
|
233,255 |
|
|
|
254,025 |
|
|
|
253,485 |
|
|
|
266,675 |
|
| Stockholders' equity |
|
162,119 |
|
|
|
159,822 |
|
|
|
157,210 |
|
|
|
156,271 |
|
|
|
154,183 |
|
| |
|
|
|
|
|
|
|
|
|
| Performance Ratios
(Annualized): |
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
0.58 |
% |
|
|
0.47 |
% |
|
|
0.10 |
% |
|
|
0.73 |
% |
|
|
0.86 |
% |
| Return on average equity |
|
8.25 |
% |
|
|
6.73 |
% |
|
|
1.44 |
% |
|
|
10.17 |
% |
|
|
12.08 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement -
Second Quarter
2024 Compared to
First Quarter
2024
Net income for the second quarter increased $650
thousand, or 24.3%, to $3.3 million mainly due to a seasonal
increase in net operating income from the mortgage division, as
well as increased net interest income and lower quarterly provision
for credit losses. Net interest income increased $237 thousand, or
1.4%, on a tax equivalent basis, as commercial loan fees of $238
thousand boosted overall interest income and out-paced the increase
in interest expense. Non-interest income increased $1.3 million or
15.8%, reflecting the improved level of mortgage banking income.
Non-interest expense increased $844 thousand, or 4.6%, due
primarily to an increase in salaries and benefits expense, loan
expenses and advertising and promotion. These increases were
partially offset by a decrease in professional fees. Detailed
explanations of the major categories of income and expense follow
below.
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.
| |
Quarter Ended |
|
|
|
|
|
|
|
|
| (dollars in thousands) |
June 30,2024 |
|
March 31,2024 |
|
$ Change |
|
% Change |
|
Change due to rate |
|
Change due to volume |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
331 |
|
|
300 |
|
$ |
31 |
|
|
10.3 |
% |
|
$ |
(2 |
) |
|
$ |
33 |
|
| Investment securities -
taxable |
|
1,324 |
|
|
1,251 |
|
|
73 |
|
|
5.8 |
% |
|
|
38 |
|
|
|
35 |
|
| Investment securities - tax
exempt (1) |
|
403 |
|
|
405 |
|
|
(2 |
) |
|
(0.5)% |
|
|
5 |
|
|
|
(7 |
) |
| Loans held for sale |
|
572 |
|
|
323 |
|
|
249 |
|
|
77.1 |
% |
|
|
(3 |
) |
|
|
252 |
|
| Loans held for investment
(1) |
|
35,916 |
|
|
35,018 |
|
|
898 |
|
|
2.6 |
% |
|
|
381 |
|
|
|
517 |
|
|
Total loans |
|
36,488 |
|
|
35,341 |
|
|
1,147 |
|
|
3.2 |
% |
|
|
378 |
|
|
|
769 |
|
|
Total interest income |
$ |
38,546 |
|
$ |
37,297 |
|
$ |
1,249 |
|
|
3.3 |
% |
|
$ |
419 |
|
|
$ |
830 |
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand
deposits |
$ |
1,279 |
|
$ |
1,367 |
|
$ |
(88 |
) |
|
(6.4)% |
|
$ |
(28 |
) |
|
$ |
(60 |
) |
| Money market and savings
deposits |
|
8,265 |
|
|
7,855 |
|
|
410 |
|
|
5.2 |
% |
|
|
284 |
|
|
|
126 |
|
| Time deposits |
|
9,447 |
|
|
8,170 |
|
|
1,277 |
|
|
15.6 |
% |
|
|
121 |
|
|
|
1,156 |
|
|
Total interest - bearing deposits |
|
18,991 |
|
|
17,392 |
|
|
1,599 |
|
|
9.2 |
% |
|
|
377 |
|
|
|
1,222 |
|
| Borrowings |
|
1,851 |
|
|
2,435 |
|
|
(584 |
) |
|
(24.0)% |
|
|
(20 |
) |
|
|
(564 |
) |
| Subordinated debentures |
|
777 |
|
|
779 |
|
|
(2 |
) |
|
(0.3)% |
|
|
(2 |
) |
|
|
— |
|
|
Total interest expense |
|
21,619 |
|
|
20,606 |
|
|
1,013 |
|
|
4.9 |
% |
|
|
355 |
|
|
|
658 |
|
| Net
interest income differential |
$ |
16,927 |
|
$ |
16,691 |
|
$ |
236 |
|
|
1.41 |
% |
|
$ |
64 |
|
|
$ |
172 |
|
| (1) Reflected on a
tax-equivalent basis. |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Interest income increased $1.2 million
quarter-over-quarter on a tax equivalent basis, driven by the
increased levels of average earning assets. Average earning assets
increased by $49.0 million contributing $830 thousand to the
increase. In addition, the yield on earnings assets increased 8
basis points during the period, which benefited from commercial
loan fees.
Average total loans, excluding residential loans
for sale, increased $28.5 million resulting in an increase in
interest income of $517 thousand. The largest drivers of this
increase were commercial, commercial real estate, and small
business loans which on a combined basis increased $36.0 million on
average, partially offset by a decrease in average leases of $13.2
million. Home equity, residential real estate, consumer and other
loans held in portfolio increased on a combined basis $5.9 million
on average. The yield on total loans increased 7 basis points and
the yield on cash and investments increased 13 basis points on a
combined basis.
Total interest expense increased $1.0 million,
quarter-over-quarter, due to higher levels of deposits,
particularly time deposits. Interest expense on total deposits
increased $1.6 million while interest expense on borrowings
decreased $584 thousand. Non-interest bearing balances decreased
$6.7 million on average, while time deposits increased $94.7
million on average. The cost of deposits increased 14 basis points
to 3.98% causing an increase of $377 thousand in interest expense.
Interest expense on borrowings decreased $564 thousand due to
volume changes as average borrowings decreased $46.0 million for
the period, while the cost of borrowings were relatively flat
period over period.
Overall the net interest margin decreased 3
basis points to 3.06% as the cost of funds outpaced the increase in
yield on earnings assets.
Provision for Credit Losses
The overall provision for credit losses is
comprised of expected loan loss recorded for funded loans as well
as unfunded loan commitments. The overall expense for the second
quarter decreased $186 thousand to $2.7 million, from $2.9 million
in the first quarter, with the provision for unfunded loan
commitments representing an increase of $34 thousand of the
combined provision during the current quarter. The second quarter
provision for funded loans of $2.6 million was driven by an
increase in overall loan portfolio growth as well as an increase in
net charge-offs during the quarter, offset somewhat by a decrease
in specific reserves on individually evaluated loans. This decline
in the overall provision was also positively impacted by favorable
changes in certain portfolio baseline loss rates and some
macroeconomic factors underlying the funded loss model.
Non-interest income
The following table presents the components of
non-interest income for the periods indicated:
| |
Quarter Ended |
|
|
|
|
| (Dollars in thousands) |
June 30,2024 |
|
March 31,2024 |
|
$ Change |
|
% Change |
|
Mortgage banking income |
$ |
5,420 |
|
|
$ |
3,634 |
|
|
$ |
1,786 |
|
|
49.1 |
% |
| Wealth management income |
|
1,444 |
|
|
|
1,317 |
|
|
|
127 |
|
|
9.6 |
% |
| SBA loan income |
|
785 |
|
|
|
986 |
|
|
|
(201 |
) |
|
(20.4)% |
| Earnings on investment in life
insurance |
|
215 |
|
|
|
207 |
|
|
|
8 |
|
|
3.9 |
% |
| Net change in the fair value
of derivative instruments |
|
203 |
|
|
|
75 |
|
|
|
128 |
|
|
170.7 |
% |
| Net change in the fair value
of loans held-for-sale |
|
(29 |
) |
|
|
(2 |
) |
|
|
(27 |
) |
|
1350.0 |
% |
| Net change in the fair value
of loans held-for-investment |
|
(24 |
) |
|
|
(175 |
) |
|
|
151 |
|
|
(86.3)% |
| Net loss on hedging
activity |
|
(63 |
) |
|
|
(19 |
) |
|
|
(44 |
) |
|
231.6 |
% |
| Other |
|
1,293 |
|
|
|
1,961 |
|
|
|
(668 |
) |
|
(34.1)% |
| Total non-interest income |
$ |
9,244 |
|
|
$ |
7,984 |
|
|
$ |
1,260 |
|
|
15.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income increased $1.3
million, or 15.8%, quarter-over-quarter as mortgage banking income
increased $1.8 million, or 49.1%. Mortgage loan sales increased
$68.3 million or 52.6% quarter over quarter driving higher gain on
sale income at a slightly lower margin. SBA and other income
decreased $869 thousand combined due to lower levels of SBA loan
sales and other mortgage related fees. SBA loans sold for the
quarter-ended June 30, 2024 totaled $12.1 million, down $3.4
million, or 21.7%, compared to the quarter-ended March 31, 2024.
The gross margin on SBA sales was 8.8% for the quarter, up from
8.1% for the previous quarter. Contributing to the increased margin
on sale was an increase in the average yield on loans sold over the
prior quarter.
Non-interest expense
The following table presents the components of
non-interest expense for the periods indicated:
| |
Quarter Ended |
|
|
|
|
| (Dollars in thousands) |
June 30,2024 |
|
March 31,2024 |
|
$ Change |
|
% Change |
|
Salaries and employee benefits |
$ |
11,437 |
|
$ |
10,573 |
|
$ |
864 |
|
|
8.2 |
% |
| Occupancy and equipment |
|
1,230 |
|
|
1,233 |
|
|
(3 |
) |
|
(0.2)% |
| Professional fees |
|
1,029 |
|
|
1,498 |
|
|
(469 |
) |
|
(31.3)% |
| Advertising and promotion |
|
989 |
|
|
748 |
|
|
241 |
|
|
32.2 |
% |
| Data processing and
software |
|
1,506 |
|
|
1,532 |
|
|
(26 |
) |
|
(1.7)% |
| Pennsylvania bank shares
tax |
|
274 |
|
|
274 |
|
|
— |
|
|
— |
% |
| Other |
|
2,553 |
|
|
2,316 |
|
|
237 |
|
|
10.2 |
% |
| Total non-interest
expense |
$ |
19,018 |
|
$ |
18,174 |
|
$ |
844 |
|
|
4.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits increased $864
thousand overall, with bank and wealth segments combined having
increased $80 thousand, and the mortgage segment increased $784
thousand. Mortgage segment salaries, commissions, and employee
benefits are impacted by volume and therefore increased as
originations increased $85.4 million over the prior quarter.
Professional fees decreased $469 thousand during
the current quarter due to lower legal expenses. Advertising and
promotion expense increased $241 thousand from the prior quarter as
a result of an increase in business development expenses. Other
expense increased $237 thousand from the prior quarter due to an
increase in employee travel and trainings, combined with an
increase in FDIC premiums.
Balance Sheet - June
30, 2024 Compared to March 31,
2024
Total assets increased $58.7 million, or 2.6%,
to $2.4 billion as of June 30, 2024 from $2.3 billion at March 31,
2024. This increase was driven by strong loan growth and an
increase in investments. Interest-bearing cash increased $1.5
million, or 10.7%, to $15.6 million as of June 30, 2024, from March
31, 2024.
Portfolio loan growth was $33.1 million, or 1.7%
quarter-over-quarter. The portfolio growth was generated from
commercial & industrial loans which increased $24.3 million, or
7.4%, commercial mortgage loans which increased $11.9 million, or
1.6%, and small business loans which increased $4.9 million despite
the sale of $12.1 million in small business loan during the
quarter. Lease financings decreased $11.3 million, or 10.3% from
March 31, 2024, partially offsetting the above noted loan growth,
but this decline was expected as we continue to refocus away from
lease originations. Other assets decreased by $10.2 million
quarter-over-quarter due to certain SBA loan sales that settled
after quarter-end.
Total deposits increased $14.7 million, or 0.8%
quarter-over-quarter, due largely to higher levels of certificates
of deposits. Time deposits increased $12.5 million, or 1.6%, from
largely wholesale efforts, as customers continue to opt for higher
rate term deposits. Money market accounts and savings accounts
decreased a combined $10.0 million while interest bearing demand
deposits increased $8.9 million. Non-interest bearing deposits
increased $3.5 million. Overnight borrowings increased $41.5
million, or 28.4% quarter-over-quarter, in support of loan growth,
particularly residential mortgage loans available for sale which
are up over $25 million seasonally.
Total stockholders’ equity increased by $2.4
million from March 31, 2024, to $162.4 million as of June 30, 2024.
Changes to equity for the current quarter included net income of
$3.3 million, less dividends paid of $1.4 million, plus an increase
of $361 thousand in other comprehensive income as the result of the
positive impact that rising interest rates had on the investment
portfolio. The Community Bank Leverage Ratio for the Bank was 9.33%
at June 30, 2024.
Asset Quality Summary
Non-performing assets decreased $604 thousand to
$37.6 million at June 30, 2024 compared to $38.2 million at March
31, 2024. As a result of the decrease, the ratio of non-performing
loans to total loans decreased to 1.84% as of June 30, 2024, from
1.93% as of March 31, 2024, and the ratio of non-performing assets
to total assets decreased to 1.68% as of June 30, 2024, compared to
1.74% as of March 31, 2024. The changes were primarily the result
of charge-offs in addition to principal paydowns of $645 thousand
on 2 commercial loans classified as non-performing.
Meridian realized net charge-offs of 0.20% of
total average loans for the quarter ended June 30, 2024, compared
with 0.12% for the quarter ended March 31, 2024. The level of net
charge-offs increased to $4.1 million for the quarter ended June
30, 2024, compared to net charge-offs of $2.3 million for the
quarter ended March 31, 2024. Second quarter charge-offs were
comprised of $1.3 million from small ticket equipment leases which
are charged-off after becoming more than 120 days past due, a $1.3
million charge off of 1 commercial loan, and $1.4 million for SBA
loans. There were recoveries of $237 thousand, largely related to
leases.
The ratio of allowance for credit losses to
total loans held for investment, excluding loans at fair value (a
non-GAAP measure, see reconciliation in the Appendix), was 1.10% as
of June 30, 2024 compared to 1.19% as of March 31, 2024. As of June
30, 2024 there were specific reserves of $7.2 million against
individually evaluated loans, a decrease of $1.3 million from $8.5
million in specific reserves as of March 31, 2024. The specific
reserve decline over the prior quarter was the result of a drop in
both commercial and SBA loan related reserves driven by
charge-offs.
About Meridian Corporation
Meridian Bank, the wholly owned subsidiary of
Meridian Corporation, is an innovative community bank serving
Pennsylvania, New Jersey, Delaware and Maryland. 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.
“Safe Harbor” Statement
In addition to historical information, this
press release may contain “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include statements with respect to Meridian Corporation’s
strategies, goals, beliefs, expectations, estimates, intentions,
capital raising efforts, financial condition and results of
operations, future performance and business. Statements preceded
by, followed by, or that include the words “may,” “could,”
“should,” “pro forma,” “looking forward,” “would,” “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar
expressions generally indicate a forward-looking statement. These
forward-looking statements involve risks and uncertainties that are
subject to change based on various important factors (some of
which, in whole or in part, are beyond Meridian Corporation’s
control). Numerous competitive, economic, regulatory, legal and
technological factors, risks and uncertainties that could cause
actual results to differ materially include, without limitation,
credit losses and the credit risk of our commercial and consumer
loan products; changes in the level of charge-offs and changes in
estimates of the adequacy of the allowance for credit losses, or
ACL; cyber-security concerns; rapid technological developments and
changes; increased competitive pressures; changes in spreads on
interest-earning assets and interest-bearing liabilities; changes
in general economic conditions and conditions within the securities
markets; 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, 2023 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.
Contact: Christopher J.
Annas484.568.5001CAnnas@meridianbanker.com
MERIDIAN CORPORATION AND
SUBSIDIARIESFINANCIAL RATIOS
(Unaudited)(Dollar amounts and shares in
thousands, except per share amounts)
| |
Quarter Ended |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
| Earnings and Per Share
Data: |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,326 |
|
|
$ |
2,676 |
|
|
$ |
571 |
|
|
$ |
4,005 |
|
|
$ |
4,645 |
|
| Basic earnings per common
share |
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.05 |
|
|
$ |
0.36 |
|
|
$ |
0.42 |
|
| Diluted earnings per common
share |
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.05 |
|
|
$ |
0.35 |
|
|
$ |
0.41 |
|
| Common shares outstanding |
|
11,191 |
|
|
|
11,186 |
|
|
|
11,183 |
|
|
|
11,178 |
|
|
|
11,178 |
|
| |
|
|
|
|
|
|
|
|
|
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
| Return on average assets
(2) |
|
0.58 |
% |
|
|
0.47 |
% |
|
|
0.10 |
% |
|
|
0.73 |
% |
|
|
0.86 |
% |
| Return on average equity
(2) |
|
8.25 |
|
|
|
6.73 |
|
|
|
1.44 |
|
|
|
10.17 |
|
|
|
12.08 |
|
| Net interest margin
(tax-equivalent) (2) |
|
3.06 |
|
|
|
3.09 |
|
|
|
3.18 |
|
|
|
3.29 |
|
|
|
3.33 |
|
| Yield on earning assets
(tax-equivalent) (2) |
|
6.98 |
|
|
|
6.90 |
|
|
|
6.81 |
|
|
|
6.76 |
|
|
|
6.57 |
|
| Cost of funds (2) |
|
4.10 |
|
|
|
4.00 |
|
|
|
3.81 |
|
|
|
3.63 |
|
|
|
3.39 |
|
| Efficiency ratio |
|
72.89 |
% |
|
|
73.90 |
% |
|
|
78.63 |
% |
|
|
79.09 |
% |
|
|
74.80 |
% |
| |
|
|
|
|
|
|
|
|
|
| Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
| Net charge-offs (recoveries)
to average loans |
|
0.20 |
% |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
|
0.05 |
% |
|
|
0.05 |
% |
| Non-performing loans to total
loans |
|
1.84 |
|
|
|
1.93 |
|
|
|
1.76 |
|
|
|
1.53 |
|
|
|
1.44 |
|
| Non-performing assets to total
assets |
|
1.68 |
|
|
|
1.74 |
|
|
|
1.58 |
|
|
|
1.38 |
|
|
|
1.32 |
|
| Allowance for credit losses
to: |
|
|
|
|
|
|
|
|
|
|
Total loans held for investment |
|
1.09 |
|
|
|
1.18 |
|
|
|
1.17 |
|
|
|
1.04 |
|
|
|
1.09 |
|
|
Total loans held for investment (excluding loans at fair value)
(1) |
|
1.10 |
|
|
|
1.19 |
|
|
|
1.17 |
|
|
|
1.05 |
|
|
|
1.10 |
|
|
Non-performing loans |
|
57.66 |
% |
|
|
60.59 |
% |
|
|
65.48 |
% |
|
|
67.61 |
% |
|
|
73.97 |
% |
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios: |
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
14.51 |
|
|
$ |
14.30 |
|
|
$ |
14.13 |
|
|
$ |
13.88 |
|
|
$ |
13.77 |
|
| Tangible book value per common
share |
$ |
14.17 |
|
|
$ |
13.96 |
|
|
$ |
13.78 |
|
|
$ |
13.53 |
|
|
$ |
13.42 |
|
| Total equity/Total assets |
|
6.91 |
% |
|
|
6.98 |
% |
|
|
7.04 |
% |
|
|
6.95 |
% |
|
|
6.98 |
% |
| Tangible common
equity/Tangible assets - Corporation (1) |
|
6.76 |
|
|
|
6.82 |
|
|
|
6.87 |
|
|
|
6.79 |
|
|
|
6.81 |
|
| Tangible common
equity/Tangible assets - Bank (1) |
|
8.85 |
|
|
|
8.93 |
|
|
|
8.94 |
|
|
|
8.89 |
|
|
|
8.54 |
|
| Tier 1 leverage ratio -
Bank |
|
9.33 |
|
|
|
9.42 |
|
|
|
9.46 |
|
|
|
9.65 |
|
|
|
9.22 |
|
| Common tier 1 risk-based
capital ratio - Bank |
|
9.84 |
|
|
|
9.87 |
|
|
|
10.10 |
|
|
|
10.82 |
|
|
|
10.35 |
|
| Tier 1 risk-based capital
ratio - Bank |
|
9.84 |
|
|
|
9.87 |
|
|
|
10.10 |
|
|
|
10.82 |
|
|
|
10.35 |
|
| Total
risk-based capital ratio - Bank |
|
10.84 |
% |
|
|
10.95 |
% |
|
|
11.17 |
% |
|
|
11.85 |
% |
|
|
11.43 |
% |
| (1) See Non-GAAP
reconciliation in the Appendix |
|
|
|
|
|
|
|
|
| (2) Annualized |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
MERIDIAN CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME (Unaudited)(Dollar amounts and shares in
thousands, except per share amounts)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans and other finance receivables, including fees |
$ |
36,486 |
|
|
$ |
35,339 |
|
|
$ |
32,215 |
|
|
$ |
71,825 |
|
|
$ |
61,632 |
|
| Securities - taxable |
|
1,324 |
|
|
|
1,251 |
|
|
|
992 |
|
|
|
2,575 |
|
|
|
1,951 |
|
| Securities - tax-exempt |
|
324 |
|
|
|
325 |
|
|
|
351 |
|
|
|
649 |
|
|
|
705 |
|
| Cash and cash equivalents |
|
331 |
|
|
|
300 |
|
|
|
278 |
|
|
|
631 |
|
|
|
495 |
|
|
Total interest income |
|
38,465 |
|
|
|
37,215 |
|
|
|
33,836 |
|
|
|
75,680 |
|
|
|
64,783 |
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
| Deposits |
|
18,991 |
|
|
|
17,392 |
|
|
|
14,023 |
|
|
|
36,383 |
|
|
|
25,470 |
|
| Borrowings |
|
2,628 |
|
|
|
3,214 |
|
|
|
2,715 |
|
|
|
5,842 |
|
|
|
4,538 |
|
|
Total interest expense |
|
21,619 |
|
|
|
20,606 |
|
|
|
16,738 |
|
|
|
42,225 |
|
|
|
30,008 |
|
|
Net interest income |
|
16,846 |
|
|
|
16,609 |
|
|
|
17,098 |
|
|
|
33,455 |
|
|
|
34,775 |
|
| Provision for credit
losses |
|
2,680 |
|
|
|
2,866 |
|
|
|
705 |
|
|
|
5,546 |
|
|
|
2,104 |
|
|
Net interest income after provision for credit losses |
|
14,166 |
|
|
|
13,743 |
|
|
|
16,393 |
|
|
|
27,909 |
|
|
|
32,671 |
|
| Non-interest
income: |
|
|
|
|
|
|
|
|
|
| Mortgage banking income |
|
5,420 |
|
|
|
3,634 |
|
|
|
5,050 |
|
|
|
9,054 |
|
|
|
8,322 |
|
| Wealth management income |
|
1,444 |
|
|
|
1,317 |
|
|
|
1,235 |
|
|
|
2,761 |
|
|
|
2,431 |
|
| SBA loan income |
|
785 |
|
|
|
986 |
|
|
|
1,767 |
|
|
|
1,771 |
|
|
|
2,480 |
|
| Earnings on investment in life
insurance |
|
215 |
|
|
|
207 |
|
|
|
193 |
|
|
|
422 |
|
|
|
385 |
|
| Net change in the fair value
of derivative instruments |
|
203 |
|
|
|
75 |
|
|
|
183 |
|
|
|
278 |
|
|
|
114 |
|
| Net change in the fair value
of loans held-for-sale |
|
(29 |
) |
|
|
(2 |
) |
|
|
(199 |
) |
|
|
(31 |
) |
|
|
(200 |
) |
| Net change in the fair value
of loans held-for-investment |
|
(24 |
) |
|
|
(175 |
) |
|
|
(219 |
) |
|
|
(199 |
) |
|
|
(102 |
) |
| Net loss on hedging
activity |
|
(63 |
) |
|
|
(19 |
) |
|
|
(1 |
) |
|
|
(82 |
) |
|
|
(1 |
) |
| Net loss on sale of investment
securities available-for-sale |
|
— |
|
|
|
— |
|
|
|
(54 |
) |
|
|
— |
|
|
|
(54 |
) |
| Other |
|
1,293 |
|
|
|
1,961 |
|
|
|
1,169 |
|
|
|
3,254 |
|
|
|
2,387 |
|
|
Total non-interest income |
|
9,244 |
|
|
|
7,984 |
|
|
|
9,124 |
|
|
|
17,228 |
|
|
|
15,762 |
|
| Non-interest
expense: |
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
11,437 |
|
|
|
10,573 |
|
|
|
12,152 |
|
|
|
22,010 |
|
|
|
23,213 |
|
| Occupancy and equipment |
|
1,230 |
|
|
|
1,233 |
|
|
|
1,140 |
|
|
|
2,463 |
|
|
|
2,384 |
|
| Professional fees |
|
1,029 |
|
|
|
1,498 |
|
|
|
1,004 |
|
|
|
2,527 |
|
|
|
1,827 |
|
| Advertising and promotion |
|
989 |
|
|
|
748 |
|
|
|
1,091 |
|
|
|
1,737 |
|
|
|
1,952 |
|
| Data processing and
software |
|
1,506 |
|
|
|
1,532 |
|
|
|
1,681 |
|
|
|
3,038 |
|
|
|
3,113 |
|
| Pennsylvania bank shares
tax |
|
274 |
|
|
|
274 |
|
|
|
245 |
|
|
|
548 |
|
|
|
490 |
|
| Other |
|
2,553 |
|
|
|
2,316 |
|
|
|
2,302 |
|
|
|
4,869 |
|
|
|
4,425 |
|
|
Total non-interest expense |
|
19,018 |
|
|
|
18,174 |
|
|
|
19,615 |
|
|
|
37,192 |
|
|
|
37,404 |
|
|
Income before income taxes |
|
4,392 |
|
|
|
3,553 |
|
|
|
5,902 |
|
|
|
7,945 |
|
|
|
11,029 |
|
| Income tax expense |
|
1,066 |
|
|
|
877 |
|
|
|
1,257 |
|
|
|
1,943 |
|
|
|
2,363 |
|
|
Net income |
$ |
3,326 |
|
|
$ |
2,676 |
|
|
$ |
4,645 |
|
|
$ |
6,002 |
|
|
$ |
8,666 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic earnings per common
share |
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.42 |
|
|
$ |
0.54 |
|
|
$ |
0.78 |
|
| Diluted earnings per common
share |
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.41 |
|
|
$ |
0.54 |
|
|
$ |
0.75 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic weighted average shares
outstanding |
|
11,096 |
|
|
|
11,088 |
|
|
|
11,062 |
|
|
|
11,092 |
|
|
|
11,167 |
|
| Diluted weighted average
shares outstanding |
|
11,150 |
|
|
|
11,201 |
|
|
|
11,304 |
|
|
|
11,178 |
|
|
|
11,494 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERIDIAN CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CONDITION (Unaudited)(Dollar amounts and shares in
thousands, except per share amounts)
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
| Assets: |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
8,457 |
|
|
$ |
8,935 |
|
|
$ |
10,067 |
|
|
$ |
12,734 |
|
|
$ |
10,576 |
|
| Interest-bearing deposits at
other banks |
|
15,601 |
|
|
|
14,092 |
|
|
|
46,630 |
|
|
|
47,025 |
|
|
|
36,290 |
|
|
Cash and cash equivalents |
|
24,058 |
|
|
|
23,027 |
|
|
|
56,697 |
|
|
|
59,759 |
|
|
|
46,866 |
|
| Securities available-for-sale,
at fair value |
|
159,141 |
|
|
|
150,996 |
|
|
|
146,019 |
|
|
|
122,218 |
|
|
|
126,668 |
|
| Securities held-to-maturity,
at amortized cost |
|
35,089 |
|
|
|
35,157 |
|
|
|
35,781 |
|
|
|
36,232 |
|
|
|
36,463 |
|
| Equity investments |
|
2,088 |
|
|
|
2,092 |
|
|
|
2,121 |
|
|
|
2,019 |
|
|
|
2,097 |
|
| Mortgage loans held for sale,
at fair value |
|
54,278 |
|
|
|
29,124 |
|
|
|
24,816 |
|
|
|
23,144 |
|
|
|
40,422 |
|
| Loans and other finance
receivables, net of fees and costs |
|
1,988,535 |
|
|
|
1,956,315 |
|
|
|
1,895,806 |
|
|
|
1,885,629 |
|
|
|
1,859,839 |
|
| Allowance for credit
losses |
|
(21,703 |
) |
|
|
(23,171 |
) |
|
|
(22,107 |
) |
|
|
(19,683 |
) |
|
|
(20,242 |
) |
|
Loans and other finance receivables, net of the allowance for
credit losses |
|
1,966,832 |
|
|
|
1,933,144 |
|
|
|
1,873,699 |
|
|
|
1,865,946 |
|
|
|
1,839,597 |
|
| Restricted investment in bank
stock |
|
10,044 |
|
|
|
8,560 |
|
|
|
8,072 |
|
|
|
8,309 |
|
|
|
9,157 |
|
| Bank premises and equipment,
net |
|
13,114 |
|
|
|
13,451 |
|
|
|
13,557 |
|
|
|
13,310 |
|
|
|
13,234 |
|
| Bank owned life insurance |
|
29,267 |
|
|
|
29,051 |
|
|
|
28,844 |
|
|
|
28,641 |
|
|
|
28,440 |
|
| Accrued interest
receivable |
|
9,973 |
|
|
|
9,864 |
|
|
|
9,325 |
|
|
|
8,984 |
|
|
|
7,651 |
|
| Other real estate owned |
|
1,862 |
|
|
|
1,703 |
|
|
|
1,703 |
|
|
|
1,703 |
|
|
|
1,703 |
|
| Deferred income taxes |
|
3,950 |
|
|
|
4,339 |
|
|
|
4,201 |
|
|
|
4,993 |
|
|
|
4,258 |
|
| Servicing assets |
|
11,341 |
|
|
|
11,573 |
|
|
|
11,748 |
|
|
|
11,835 |
|
|
|
12,193 |
|
| Goodwill |
|
899 |
|
|
|
899 |
|
|
|
899 |
|
|
|
899 |
|
|
|
899 |
|
| Intangible assets |
|
2,869 |
|
|
|
2,920 |
|
|
|
2,971 |
|
|
|
3,022 |
|
|
|
3,073 |
|
| Other assets |
|
26,779 |
|
|
|
37,023 |
|
|
|
25,740 |
|
|
|
39,957 |
|
|
|
34,156 |
|
|
Total assets |
$ |
2,351,584 |
|
|
$ |
2,292,923 |
|
|
$ |
2,246,193 |
|
|
$ |
2,230,971 |
|
|
$ |
2,206,877 |
|
| |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
| Non-interest bearing |
$ |
224,040 |
|
|
$ |
220,581 |
|
|
$ |
239,289 |
|
|
$ |
244,668 |
|
|
$ |
269,174 |
|
| Interest bearing |
|
|
|
|
|
|
|
|
|
| Interest checking |
|
130,062 |
|
|
|
121,204 |
|
|
|
150,898 |
|
|
|
156,537 |
|
|
|
155,907 |
|
| Money market and savings
deposits |
|
787,479 |
|
|
|
797,525 |
|
|
|
747,803 |
|
|
|
746,599 |
|
|
|
710,546 |
|
| Time deposits |
|
773,855 |
|
|
|
761,386 |
|
|
|
685,472 |
|
|
|
660,841 |
|
|
|
646,978 |
|
| Total interest-bearing
deposits |
|
1,691,396 |
|
|
|
1,680,115 |
|
|
|
1,584,173 |
|
|
|
1,563,977 |
|
|
|
1,513,431 |
|
|
Total deposits |
|
1,915,436 |
|
|
|
1,900,696 |
|
|
|
1,823,462 |
|
|
|
1,808,645 |
|
|
|
1,782,605 |
|
| Borrowings |
|
187,260 |
|
|
|
145,803 |
|
|
|
174,896 |
|
|
|
177,959 |
|
|
|
194,636 |
|
| Subordinated debentures |
|
49,897 |
|
|
|
49,867 |
|
|
|
49,836 |
|
|
|
50,079 |
|
|
|
40,348 |
|
| Accrued interest payable |
|
7,709 |
|
|
|
8,350 |
|
|
|
10,324 |
|
|
|
7,814 |
|
|
|
5,612 |
|
| Other liabilities |
|
28,900 |
|
|
|
28,271 |
|
|
|
29,653 |
|
|
|
31,360 |
|
|
|
29,714 |
|
|
Total liabilities |
|
2,189,202 |
|
|
|
2,132,987 |
|
|
|
2,088,171 |
|
|
|
2,075,857 |
|
|
|
2,052,915 |
|
| |
|
|
|
|
|
|
|
|
|
| Stockholders’
equity: |
|
|
|
|
|
|
|
|
|
| Common stock |
|
13,194 |
|
|
|
13,189 |
|
|
|
13,186 |
|
|
|
13,181 |
|
|
|
13,181 |
|
| Surplus |
|
80,639 |
|
|
|
80,487 |
|
|
|
80,325 |
|
|
|
79,731 |
|
|
|
79,650 |
|
| Treasury stock |
|
(26,079 |
) |
|
|
(26,079 |
) |
|
|
(26,079 |
) |
|
|
(26,079 |
) |
|
|
(26,079 |
) |
| Unearned common stock held by
employee stock ownership plan |
|
(1,204 |
) |
|
|
(1,204 |
) |
|
|
(1,204 |
) |
|
|
(1,403 |
) |
|
|
(1,403 |
) |
| Retained earnings |
|
104,420 |
|
|
|
102,492 |
|
|
|
101,216 |
|
|
|
102,043 |
|
|
|
99,434 |
|
| Accumulated other
comprehensive loss |
|
(8,588 |
) |
|
|
(8,949 |
) |
|
|
(9,422 |
) |
|
|
(12,359 |
) |
|
|
(10,821 |
) |
|
Total stockholders’ equity |
|
162,382 |
|
|
|
159,936 |
|
|
|
158,022 |
|
|
|
155,114 |
|
|
|
153,962 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,351,584 |
|
|
$ |
2,292,923 |
|
|
$ |
2,246,193 |
|
|
$ |
2,230,971 |
|
|
$ |
2,206,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERIDIAN CORPORATION AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME AND SEGMENT INFORMATION (Unaudited)(Dollar
amounts and shares in thousands, except per share
amounts)
| |
Three Months Ended |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
Interest income |
$ |
38,465 |
|
$ |
37,215 |
|
$ |
36,346 |
|
$ |
35,459 |
|
$ |
33,836 |
| Interest expense |
|
21,619 |
|
|
20,606 |
|
|
19,404 |
|
|
18,235 |
|
|
16,738 |
| Net interest income |
|
16,846 |
|
|
16,609 |
|
|
16,942 |
|
|
17,224 |
|
|
17,098 |
| Provision for credit
losses |
|
2,680 |
|
|
2,866 |
|
|
4,628 |
|
|
82 |
|
|
705 |
| Non-interest income |
|
9,244 |
|
|
7,984 |
|
|
8,117 |
|
|
8,086 |
|
|
9,124 |
| Non-interest expense |
|
19,018 |
|
|
18,174 |
|
|
19,703 |
|
|
20,018 |
|
|
19,615 |
| Income before income tax
expense |
|
4,392 |
|
|
3,553 |
|
|
728 |
|
|
5,210 |
|
|
5,902 |
| Income tax expense |
|
1,066 |
|
|
877 |
|
|
157 |
|
|
1,205 |
|
|
1,257 |
| Net Income |
$ |
3,326 |
|
$ |
2,676 |
|
$ |
571 |
|
$ |
4,005 |
|
$ |
4,645 |
| |
|
|
|
|
|
|
|
|
|
| Basic weighted average shares
outstanding |
|
11,096 |
|
|
11,088 |
|
|
11,070 |
|
|
11,057 |
|
|
11,062 |
| Basic earnings per common
share |
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.05 |
|
$ |
0.36 |
|
$ |
0.42 |
| |
|
|
|
|
|
|
|
|
|
| Diluted weighted average
shares outstanding |
|
11,150 |
|
|
11,201 |
|
|
11,206 |
|
|
11,363 |
|
|
11,304 |
| Diluted earnings per common
share |
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.05 |
|
$ |
0.35 |
|
$ |
0.41 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Segment Information |
| |
Three Months Ended June
30, 2024 |
|
Three Months Ended June
30, 2023 |
| (dollars in thousands) |
Bank |
|
Wealth |
|
Mortgage |
|
Total |
|
Bank |
|
Wealth |
|
Mortgage |
|
Total |
|
Net interest income |
$ |
16,784 |
|
|
$ |
36 |
|
|
$ |
26 |
|
|
$ |
16,846 |
|
|
$ |
17,102 |
|
|
$ |
(29 |
) |
|
$ |
25 |
|
|
$ |
17,098 |
|
|
Provision for credit losses |
|
2,680 |
|
|
|
— |
|
|
|
— |
|
|
|
2,680 |
|
|
|
705 |
|
|
|
— |
|
|
|
— |
|
|
|
705 |
|
|
Net interest income after provision |
|
14,104 |
|
|
|
36 |
|
|
|
26 |
|
|
|
14,166 |
|
|
|
16,397 |
|
|
|
(29 |
) |
|
|
25 |
|
|
|
16,393 |
|
|
Non-interest income |
|
1,673 |
|
|
|
1,444 |
|
|
|
6,127 |
|
|
|
9,244 |
|
|
|
2,508 |
|
|
|
1,235 |
|
|
|
5,381 |
|
|
|
9,124 |
|
|
Non-interest expense |
|
12,606 |
|
|
|
804 |
|
|
|
5,608 |
|
|
|
19,018 |
|
|
|
12,325 |
|
|
|
889 |
|
|
|
6,401 |
|
|
|
19,615 |
|
|
Income (loss) before income taxes |
$ |
3,171 |
|
|
$ |
676 |
|
|
$ |
545 |
|
|
$ |
4,392 |
|
|
$ |
6,580 |
|
|
$ |
317 |
|
|
$ |
(995 |
) |
|
$ |
5,902 |
|
|
Efficiency ratio |
|
68 |
% |
|
|
54 |
% |
|
|
91 |
% |
|
|
73 |
% |
|
|
63 |
% |
|
|
74 |
% |
|
|
118 |
% |
|
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SixMonths EndedJune 30,
2024 |
|
SixMonths EndedJune 30,
2023 |
|
(dollars in thousands) |
Bank |
|
Wealth |
|
Mortgage |
|
Total |
|
Bank |
|
Wealth |
|
Mortgage |
|
Total |
|
Net interest income |
$ |
33,376 |
|
|
$ |
30 |
|
|
$ |
49 |
|
|
$ |
33,455 |
|
|
$ |
34,721 |
|
|
$ |
3 |
|
|
$ |
51 |
|
|
$ |
34,775 |
|
|
Provision for credit losses |
|
5,546 |
|
|
|
— |
|
|
|
— |
|
|
|
5,546 |
|
|
|
2,104 |
|
|
|
— |
|
|
|
— |
|
|
|
2,104 |
|
|
Net interest income after provision |
|
27,830 |
|
|
|
30 |
|
|
|
49 |
|
|
|
27,909 |
|
|
|
32,617 |
|
|
|
3 |
|
|
|
51 |
|
|
|
32,671 |
|
|
Non-interest income |
|
3,550 |
|
|
|
2,760 |
|
|
|
10,918 |
|
|
|
17,228 |
|
|
|
3,938 |
|
|
|
2,431 |
|
|
|
9,393 |
|
|
|
15,762 |
|
|
Non-interest expense |
|
24,669 |
|
|
|
1,636 |
|
|
|
10,887 |
|
|
|
37,192 |
|
|
|
23,024 |
|
|
|
1,877 |
|
|
|
12,503 |
|
|
|
37,404 |
|
|
Income (loss) before income taxes |
$ |
6,711 |
|
|
$ |
1,154 |
|
|
$ |
80 |
|
|
$ |
7,945 |
|
|
$ |
13,531 |
|
|
$ |
557 |
|
|
$ |
(3,059 |
) |
|
$ |
11,029 |
|
| Efficiency ratio |
|
67 |
% |
|
|
59 |
% |
|
|
99 |
% |
|
|
73 |
% |
|
|
60 |
% |
|
|
77 |
% |
|
|
132 |
% |
|
|
74 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MERIDIAN CORPORATION AND
SUBSIDIARIESAPPENDIX: 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-tax, Pre-provision Reconciliation |
| |
Three Months Ended |
|
Six Months Ended |
|
(Dollars in thousands, except per share data,
Unaudited) |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
Income before income tax expense |
$ |
4,392 |
|
$ |
3,553 |
|
$ |
5,902 |
|
$ |
7,945 |
|
$ |
11,029 |
| Provision for credit
losses |
|
2,680 |
|
|
2,866 |
|
|
705 |
|
|
5,546 |
|
|
2,104 |
| Pre-tax, pre-provision
income |
$ |
7,072 |
|
$ |
6,419 |
|
$ |
6,607 |
|
$ |
13,491 |
|
$ |
13,133 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Pre-tax, Pre-provision Reconciliation |
| |
Three Months Ended |
|
Six Months Ended |
|
(Dollars in thousands, except per share data,
Unaudited) |
June 30,2024 |
|
March 31,2024 |
|
June 30,2023 |
|
June 30,2024 |
|
June 30,2023 |
|
Bank |
$ |
5,851 |
|
$ |
6,406 |
|
|
$ |
7,285 |
|
|
$ |
12,257 |
|
$ |
15,643 |
|
| Wealth |
|
676 |
|
|
478 |
|
|
|
317 |
|
|
|
1,154 |
|
|
548 |
|
| Mortgage |
|
545 |
|
|
(465 |
) |
|
|
(995 |
) |
|
|
80 |
|
|
(3,058 |
) |
| Pre-tax, pre-provision
income |
$ |
7,072 |
|
$ |
6,419 |
|
|
$ |
6,607 |
|
|
$ |
13,491 |
|
$ |
13,133 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Allowance For Credit Losses to Loans, Net of Fees and
Costs, Excluding and Loans at Fair Value |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
Allowance for credit losses (GAAP) |
$ |
21,703 |
|
|
$ |
23,171 |
|
|
$ |
22,107 |
|
|
$ |
19,683 |
|
|
$ |
20,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net of fees and costs (GAAP) |
|
1,988,535 |
|
|
|
1,956,315 |
|
|
|
1,895,806 |
|
|
|
1,885,629 |
|
|
|
1,859,839 |
|
|
Less: Loans fair valued |
|
(12,900 |
) |
|
|
(13,139 |
) |
|
|
(13,726 |
) |
|
|
(13,231 |
) |
|
|
(14,403 |
) |
|
Loans, net of fees and costs, excluding loans at fair value
(non-GAAP) |
$ |
1,975,635 |
|
|
$ |
1,943,176 |
|
|
$ |
1,882,080 |
|
|
$ |
1,872,398 |
|
|
$ |
1,845,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses to loans, net of fees and costs
(GAAP) |
|
1.09 |
% |
|
|
1.18 |
% |
|
|
1.17 |
% |
|
|
1.04 |
% |
|
|
1.09 |
% |
|
Allowance for credit losses to loans, net of fees and costs,
excluding loans at fair value (non-GAAP) |
|
1.10 |
% |
|
|
1.19 |
% |
|
|
1.17 |
% |
|
|
1.05 |
% |
|
|
1.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Tangible Common Equity Ratio Reconciliation -
Corporation |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
Total stockholders' equity (GAAP) |
$ |
162,382 |
|
|
$ |
159,936 |
|
|
$ |
158,022 |
|
|
$ |
155,114 |
|
|
$ |
153,962 |
|
| Less: Goodwill and intangible
assets |
|
(3,768 |
) |
|
|
(3,819 |
) |
|
|
(3,870 |
) |
|
|
(3,921 |
) |
|
|
(3,972 |
) |
| Tangible common equity
(non-GAAP) |
|
158,614 |
|
|
|
156,117 |
|
|
|
154,152 |
|
|
|
151,193 |
|
|
|
149,990 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
2,351,584 |
|
|
|
2,292,923 |
|
|
|
2,246,193 |
|
|
|
2,230,971 |
|
|
|
2,206,877 |
|
| Less: Goodwill and intangible
assets |
|
(3,768 |
) |
|
|
(3,819 |
) |
|
|
(3,870 |
) |
|
|
(3,921 |
) |
|
|
(3,972 |
) |
| Tangible assets
(non-GAAP) |
$ |
2,347,816 |
|
|
$ |
2,289,104 |
|
|
$ |
2,242,323 |
|
|
$ |
2,227,050 |
|
|
$ |
2,202,905 |
|
| Tangible common equity to
tangible assets ratio - Corporation (non-GAAP) |
|
6.76 |
% |
|
|
6.82 |
% |
|
|
6.87 |
% |
|
|
6.79 |
% |
|
|
6.81 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Tangible Common Equity Ratio Reconciliation -
Bank |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
|
Total stockholders' equity (GAAP) |
$ |
211,308 |
|
|
$ |
208,319 |
|
|
$ |
204,132 |
|
|
$ |
201,996 |
|
|
$ |
192,209 |
|
| Less: Goodwill and intangible
assets |
|
(3,768 |
) |
|
|
(3,819 |
) |
|
|
(3,870 |
) |
|
|
(3,921 |
) |
|
|
(3,972 |
) |
| Tangible common equity
(non-GAAP) |
|
207,540 |
|
|
|
204,500 |
|
|
|
200,262 |
|
|
|
198,075 |
|
|
|
188,237 |
|
| |
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
2,349,600 |
|
|
|
2,292,894 |
|
|
|
2,244,893 |
|
|
|
2,232,297 |
|
|
|
2,208,252 |
|
| Less: Goodwill and intangible
assets |
|
(3,768 |
) |
|
|
(3,819 |
) |
|
|
(3,870 |
) |
|
|
(3,921 |
) |
|
|
(3,972 |
) |
| Tangible assets
(non-GAAP) |
$ |
2,345,832 |
|
|
$ |
2,289,075 |
|
|
$ |
2,241,023 |
|
|
$ |
2,228,376 |
|
|
$ |
2,204,280 |
|
| Tangible common equity to
tangible assets ratio - Bank (non-GAAP) |
|
8.85 |
% |
|
|
8.93 |
% |
|
|
8.94 |
% |
|
|
8.89 |
% |
|
|
8.54 |
% |
| |
|
|
|
|
|
|
|
|
|
| |
Tangible Book Value Reconciliation |
| |
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
September 30,2023 |
|
June 30,2023 |
| Book value per common
share |
$ |
14.51 |
|
|
$ |
14.30 |
|
|
$ |
14.13 |
|
|
$ |
13.88 |
|
|
$ |
13.77 |
|
| Less: Impact of goodwill
/intangible assets |
|
0.34 |
|
|
|
0.34 |
|
|
|
0.35 |
|
|
|
0.35 |
|
|
|
0.35 |
|
| Tangible book value per common
share |
$ |
14.17 |
|
|
$ |
13.96 |
|
|
$ |
13.78 |
|
|
$ |
13.53 |
|
|
$ |
13.42 |
|
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