Meridian Corporation (MRBK) investor relations material

Executive summary

• Net income for Q1 2026 was $2.0 million ($0.17 per diluted share), down 16.4% year-over-year, primarily due to higher credit loss provisions and increased expenses.

• Net income for Q1 2026 was $4.7 million ($0.39 per diluted share), down 34% from the prior quarter but nearly double Q1 2025, driven by improved net interest margin and deposit repricing.

• Pre-provision net revenue rose 21% year-over-year to $10.1 million, highlighting strong underlying operating performance.

• Total assets increased $14.6 million (0.6%) to $2.6 billion as of March 31, 2026, with portfolio loans up $11.1 million (0.5%) and deposits up $11.8 million (0.5%).

• Board declared a $0.14 per share quarterly dividend, payable May 11, 2026.

Financial highlights

• Net interest income rose $3.4 million (17.3%) to $23.2 million, with net interest margin improving to 3.82% from 3.46% year-over-year.

• Net interest income was $23.2 million, down $425,000 sequentially; net interest margin improved to 3.82%.

• Provision for credit losses increased $2.3 million, driven by a $3.9 million charge-off on a purchased participation loan.

• Non-interest expense increased $1.4 million (7.5%) to $20.2 million, mainly due to higher salaries, benefits, and technology investments.

• Book value per share was $17.09 and tangible book value per share was $16.80 at March 31, 2026.

Outlook and guidance

• The balance sheet is neutrally positioned for interest rate changes, with manageable exposure to rate shifts.

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

• Management expects a rebound in SBA loan sale income by year-end and increased mortgage originations if housing inventory improves.

• Confident in achieving another year of double-digit commercial loan growth.