Meridian Corporation (MRBK) investor relations material

Executive summary

• Net income for Q2 2026 was $5.8 million ($0.48 per diluted share), up 3.8% year-over-year and 189.5% from the prior quarter, driven by higher non-interest income and a lower provision for credit losses.

• Total assets rose $31.2 million (1.2%) to $2.6 billion as of June 30, 2026, with portfolio loans up $7.9 million (0.4%) and deposits up $36.3 million (1.7%) compared to December 31, 2025.

• Pre-provision net revenue reached $10.4 million, a 3.6% increase quarter-over-quarter.

• Return on average assets was 0.90% for Q2 and 0.61% for the six months; return on average equity was 11.42% for Q2 and 7.75% for the six months.

• Board declared a $0.14 per share quarterly dividend, payable August 17, 2026.

Financial highlights

• Net interest income increased $1.6 million (7.7%) year-over-year to $22.8 million for Q2 2026, but declined $0.4 million sequentially; net interest margin was 3.69%.

• Provision for credit losses decreased $835 thousand for Q2 but increased $1.4 million for the six months, reflecting higher charge-offs and loan growth.

• Non-interest income rose 40.4% quarter-over-quarter to $9.9 million, led by mortgage banking and SBA loan income, but fell $1.4 million (12.4%) year-over-year.

• Non-interest expense increased 10.3% to $22.2 million, mainly from higher salaries, advertising, OREO, data processing, and occupancy expenses.

Outlook and guidance

• Management expects continued focus on core deposit growth and prudent loan portfolio management.

• Mortgage originations for Q3 look promising, though refinancing activity is down due to rising rates.

• SBA loan sale income expected to be more consistent as the business model is adjusted.

• Interest rate risk simulations indicate a neutral balance sheet position, with manageable exposure to rate changes.

• New payments team hired to expand deposit franchise and fee income opportunities.