Meridian Corp0001750735false00017507352024-07-262024-07-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
July 26, 2024
Date of Report (Date of earliest event reported)
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(Exact name of registrant as specified in its charter)
Pennsylvania 000-55983 83-1561918
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Ident. No.)
     
9 Old Lincoln Highway, Malvern, Pennsylvania
 19355
(Address of principal executive offices) (Zip Code)
 
(484) 568-5000
Registrant’s telephone number, including area code
 
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:
Title of each class:
    Trading Symbol(s)    Name of each exchange on which registered:
Common Stock, $1 par value
MRBKThe NASDAQ Stock Market




Item 2.02.            Results of Operations and Financial Condition.
On July 26, 2024 Meridian Coporation issued a press release discussing the Corporation’s Second Quarter 2024 Results. A copy is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto and incorporated by reference into Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibit attached hereto, shall not be deemed incorporated by reference into any of the Corporation’s reports or filings with the SEC under the Securities Exchange Act of 1933, as amended (the "Securities Act"), or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 7.01.     Regulation FD Disclosures.

In connection with the issuance of its earnings for the three months ended June 30, 2024, Meridian Corporation has also made available on its website materials that contain supplemental information about the Corporation's financial results (“Earnings Supplement”). A copy of the earnings supplement is attached hereto as Exhibit 99.2 and is incorporated by reference in this Item 7.01. The information contained in this Item 7.01 of this Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01.            Other Events.
Quarterly Dividend
On July 25, 2024, Meridian Corporation’s 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.
Item 9.01.            Financial Statements and Exhibits.
(d)    Exhibits. The following exhibit is furnished herewith:
99.1 Press Release, issued July 26, 2024
99.2 Earnings Supplement, issued July 26, 2024



EXHIBIT INDEX
Exhibit No. Description of Exhibit
   
 
104Cover Page Interactive Data File (embedded within the Inline XBRL document)






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
MERIDIAN CORPORATION
(Registrant)
   
Dated:  July 26, 2024
  
   
 By:/s/  Denise Lindsay 
   Denise Lindsay
   Executive Vice President and Chief Financial Officer
   


Exhibit 99.1

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Meridian Corporation Reports Second Quarter 2024 Results and Announces a Quarterly Dividend of $0.125 per Common Share.
MALVERN, PA., July 26, 2024 — 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.”



















1
Exhibit 99.1
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 share0.30 0.24 0.05 0.36 0.42 
Diluted earnings per common share0.30 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 deposits1,915,436 1,900,696 1,823,462 1,808,645 1,782,605 
Non-interest bearing deposits224,040 220,581 239,289 244,668 269,174 
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 assets2,222,177 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 deposits1,919,954 1,823,523 1,820,532 1,782,140 1,775,444 
Non-interest bearing deposits229,040 233,255 254,025 253,485 266,675 
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.

2
Exhibit 99.1

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% ChangeChange due to rateChange due to volume
Interest income:
Cash and cash equivalents331300 $31 10.3 %$(2)$33 
Investment securities - taxable1,324 1,251 73 5.8 %38 35 
Investment securities - tax exempt (1)
403 405 (2)(0.5)%5 (7)
Loans held for sale572 323 249 77.1 %(3)252 
Loans held for investment (1)
35,916 35,018 898 2.6 %381 517 
Total loans36,488 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 deposits8,265 7,855 410 5.2 %284 126 
Time deposits9,447 8,170 1,277 15.6 %121 1,156 
Total interest - bearing deposits18,991 17,392 1,599 9.2 %377 1,222 
Borrowings1,851 2,435 (584)(24.0)%(20)(564)
Subordinated debentures777 779 (2)(0.3)%(2)— 
Total interest expense21,619 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.



3
Exhibit 99.1
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 income1,444 1,317 127 9.6 %
SBA loan income785 986 (201)(20.4)%
Earnings on investment in life insurance215 207 8 3.9 %
Net change in the fair value of derivative instruments203 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 %
Other1,293 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 equipment1,230 1,233 (3)(0.2)%
Professional fees1,029 1,498 (469)(31.3)%
Advertising and promotion989 748 241 32.2 %
Data processing and software1,506 1,532 (26)(1.7)%
Pennsylvania bank shares tax274 274 — — %
Other2,553 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.
4
Exhibit 99.1
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.
5
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
FINANCIAL 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 outstanding11,191 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 loans0.20 %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 assets6.91 %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 - Bank9.33 9.42 9.46 9.65 9.22 
Common tier 1 risk-based capital ratio - Bank9.84 9.87 10.10 10.82 10.35 
Tier 1 risk-based capital ratio - Bank9.84 9.87 10.10 10.82 10.35 
Total risk-based capital ratio - Bank10.84 %10.95 %11.17 %11.85 %11.43 %
(1) See Non-GAAP reconciliation in the Appendix
(2) Annualized
6
Exhibit 99.1
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,
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 - taxable1,324 1,251 992 2,575 1,951 
Securities - tax-exempt324 325 351 649 705 
Cash and cash equivalents331 300 278 631 495 
Total interest income38,465 37,215 33,836 75,680 64,783 
Interest expense:
Deposits18,991 17,392 14,023 36,383 25,470 
Borrowings2,628 3,214 2,715 5,842 4,538 
       Total interest expense21,619 20,606 16,738 42,225 30,008 
Net interest income16,846 16,609 17,098 33,455 34,775 
Provision for credit losses2,680 2,866 705 5,546 2,104 
Net interest income after provision for credit losses14,166 13,743 16,393 27,909 32,671 
Non-interest income:
Mortgage banking income5,420 3,634 5,050 9,054 8,322 
Wealth management income1,444 1,317 1,235 2,761 2,431 
SBA loan income785 986 1,767 1,771 2,480 
Earnings on investment in life insurance215 207 193 422 385 
Net change in the fair value of derivative instruments203 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)
Other1,293 1,961 1,169 3,254 2,387 
Total non-interest income9,244 7,984 9,124 17,228 15,762 
Non-interest expense:
Salaries and employee benefits11,437 10,573 12,152 22,010 23,213 
Occupancy and equipment1,230 1,233 1,140 2,463 2,384 
Professional fees1,029 1,498 1,004 2,527 1,827 
Advertising and promotion989 748 1,091 1,737 1,952 
Data processing and software1,506 1,532 1,681 3,038 3,113 
Pennsylvania bank shares tax274 274 245 548 490 
Other2,553 2,316 2,302 4,869 4,425 
Total non-interest expense19,018 18,174 19,615 37,192 37,404 
        Income before income taxes4,392 3,553 5,902 7,945 11,029 
Income tax expense1,066 877 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 outstanding11,096 11,088 11,062 11,092 11,167 
Diluted weighted average shares outstanding11,150 11,201 11,304 11,178 11,494 
7
Exhibit 99.1
MERIDIAN CORPORATION AND SUBSIDIARIES
CONDENSED 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 banks15,601 14,092 46,630 47,025 36,290 
Cash and cash equivalents24,058 23,027 56,697 59,759 46,866 
Securities available-for-sale, at fair value159,141 150,996 146,019 122,218 126,668 
Securities held-to-maturity, at amortized cost35,089 35,157 35,781 36,232 36,463 
Equity investments2,088 2,092 2,121 2,019 2,097 
Mortgage loans held for sale, at fair value54,278 29,124 24,816 23,144 40,422 
Loans and other finance receivables, net of fees and costs1,988,535 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 losses1,966,832 1,933,144 1,873,699 1,865,946 1,839,597 
Restricted investment in bank stock10,044 8,560 8,072 8,309 9,157 
Bank premises and equipment, net13,114 13,451 13,557 13,310 13,234 
Bank owned life insurance29,267 29,051 28,844 28,641 28,440 
Accrued interest receivable9,973 9,864 9,325 8,984 7,651 
Other real estate owned1,862 1,703 1,703 1,703 1,703 
Deferred income taxes3,950 4,339 4,201 4,993 4,258 
Servicing assets11,341 11,573 11,748 11,835 12,193 
Goodwill899 899 899 899 899 
Intangible assets2,869 2,920 2,971 3,022 3,073 
Other assets26,779 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 checking130,062 121,204 150,898 156,537 155,907 
Money market and savings deposits787,479 797,525 747,803 746,599 710,546 
Time deposits773,855 761,386 685,472 660,841 646,978 
Total interest-bearing deposits1,691,396 1,680,115 1,584,173 1,563,977 1,513,431 
Total deposits1,915,436 1,900,696 1,823,462 1,808,645 1,782,605 
Borrowings187,260 145,803 174,896 177,959 194,636 
Subordinated debentures49,897 49,867 49,836 50,079 40,348 
Accrued interest payable7,709 8,350 10,324 7,814 5,612 
Other liabilities28,900 28,271 29,653 31,360 29,714 
Total liabilities2,189,202 2,132,987 2,088,171 2,075,857 2,052,915 
Stockholders’ equity:
Common stock13,194 13,189 13,186 13,181 13,181 
Surplus80,639 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 earnings104,420 102,492 101,216 102,043 99,434 
Accumulated other comprehensive loss(8,588)(8,949)(9,422)(12,359)(10,821)
Total stockholders’ equity162,382 159,936 158,022 155,114 153,962 
Total liabilities and stockholders’ equity$2,351,584 $2,292,923 $2,246,193 $2,230,971 $2,206,877 
8
Exhibit 99.1
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,
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 expense21,619 20,606 19,404 18,235 16,738 
Net interest income16,846 16,609 16,942 17,224 17,098 
Provision for credit losses
2,680 2,866 4,628 82 705 
Non-interest income9,244 7,984 8,117 8,086 9,124 
Non-interest expense19,018 18,174 19,703 20,018 19,615 
Income before income tax expense4,392 3,553 728 5,210 5,902 
Income tax expense1,066 877 157 1,205 1,257 
Net Income$3,326 $2,676 $571 $4,005 $4,645 
Basic weighted average shares outstanding11,096 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 outstanding11,150 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)BankWealthMortgageTotalBankWealthMortgageTotal
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 income1,673 1,444 6,127 9,244 2,508 1,235 5,381 9,124 
Non-interest expense12,606 804 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 ratio68 %54 %91 %73 %63 %74 %118 %75 %
Six Months Ended June 30, 2024
Six Months Ended June 30, 2023
(dollars in thousands)BankWealthMortgageTotalBankWealthMortgageTotal
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 income3,550 2,760 10,918 17,228 3,938 2,431 9,393 15,762 
Non-interest expense24,669 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 ratio67 %59 %99 %73 %60 %77 %132 %74 %

9

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-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 losses2,680 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 
Wealth676 478 317 1,154 548 
Mortgage545 (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 %
10

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 assets0.34 0.34 0.35 0.35 0.35 
Tangible book value per common share$14.17 $13.96 $13.78 $13.53 $13.42 
11
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 Second Quarter 2024 Earnings Supplement NASDAQ: MRBK

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 2Meridian Corporation FORWARD-LOOKING STATEMENTS Meridian Corporation (the “Corporation”) may from time to time make written or oral “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 "will", “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” "project", or similar expressions generally indicate a forward-looking statement. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: Local, regional, national and international economic conditions and the impact they may have on us and our customers and our assessment of that impact; Volatility and disruption in national and international financial markets; Adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; Government intervention in the U.S. financial system; Changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; Our ability to manage our commercial real estate exposure; Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; Inflation, interest rate, securities market and monetary fluctuations; The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply; Impairment of our goodwill or other intangible assets; Acts of God or of war or terrorism; Changes in consumer spending, borrowings and savings habits; Changes in the financial performance and/or condition of our borrowers; Technological changes, including the rise of AI as a commonly used resource; The cost and effects of cyber incidents or other failures, interruption or security breaches of our systems or those of third-party providers; Acquisitions and integration of acquired businesses; Our ability to increase market share and control expenses; Our ability to attract and retain qualified employees; Changes in the competitive environment in our markets and among banking organizations and other financial service providers; The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the PCAOB, the FASB and other accounting standard setters; Changes in the reliability of our vendors, internal control systems or information systems; Changes in our liquidity position; Changes in our organization, compensation and benefit plans; The costs and effects of legal and regulatory developments, the resolution of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; Greater than expected costs or difficulties related to the integration of new products and lines of business; Our success at managing the risks involved in the foregoing items. 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 the 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. The Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by the Corporation or by or on behalf of Meridian Bank, except as may be required under applicable laws.

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 3Meridian Corporation MRBK INVESTMENT HIGHLIGHTS "Go to" bank in the Delaware Valley Valuable customer base trained to solely use electronic channel. Regional presence with a community touch. Focus on Commercial, CRE and SBA lending - 80% of loan book. Comfortably handle all but the largest companies. Skilled management team with extensive in-market experience. Demonstrated organic growth engine in diversified loan segments. Strong sales culture that capitalizes on market disruption.

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 4Meridian Corporation GEOGRAPHIC FOOTPRINT Regional Market • Serves PA, NJ, DE & MD • Philadelphia MSA is 8th largest in the US Satellite Commercial Loan Production Office Naples, FL Reaches broad SW FL market HQ in Malvern, PA • 6 full service branches • Main office in Wayne, PA • 8 mortgage loan production offices

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 5Meridian Corporation Q2'2024 vs Q2'2023 Financial Recap 1) A Non-GAAP measure. See Non-GAAP reconciliation in the Appendix. Summary Income Statement ($000s) Q2'2024 Q2'2023 Net Interest Income $ 16,846 $ 17,098 Provision for Credit Losses 2,680 705 Non-Interest Income 9,244 9,124 Non-Interest Expense 19,018 19,615 Income Before Income Taxes 4,392 5,902 Income Taxes 1,066 1,257 Net income $ 3,326 $ 4,645 Earnings Per Share Diluted Earnings Per Share $ 0.30 $ 0.41 Pre-Tax, Pre-Provision Income by Segment 1 Bank $ 5,851 $ 7,285 Wealth 676 317 Mortgage 545 (995) Pre-Tax, Pre-Provision Income $ 7,072 $ 6,607 Summary Balance Sheet Q2'2024 Q2'2023 Assets ($M) $ 2,352 $ 2,207 Loans ($M) $ 1,989 $ 1,860 Deposits ($M) $ 1,915 $ 1,783 Equity ($M) $ 162 $ 154 Assets ($M) Loans ($M) Deposits ($M) Q2'2020 Q2'2021 Q2'2022 Q2'2023 Q2'2024 $1,000 $2,000 $3,000

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation Q2'2024 HIGHLIGHTS 1) As of and for the quarter ended and year ended June 30, 2024, per July 26, 2024 press release. 2) Includes loans held for sale and loans held for investment. 3) A Non-GAAP measure. See Non-GAAP reconciliation in the Appendix. For the Calendar Quarter Ended Balance Sheet ($M) Q2'2024 Q1'2024 Q4'2023 Q3'2023 Q2'2023 Total Assets $ 2,352 $ 2,293 $ 2,246 $ 2,231 $ 2,207 Total Loans & Leases² 2,043 1,985 1,921 1,909 1,900 Deposits 1,915 1,901 1,823 1,809 1,783 Equity 162 160 158 155 154 Tangible Equity / Tangible Assets3 6.76 % 6.82 % 6.87 % 6.79 % 6.81 % Net Income & Share Data ($000s) Net Income $ 3,326 $ 2,676 $ 571 $ 4,005 $ 4,645 Diluted EPS 0.30 0.24 0.05 0.35 0.41 Price per Common Share 10.52 9.92 13.90 9.80 9.95 TBV per Share 14.17 13.96 13.78 13.53 13.42 Pre-tax, Pre-Provision Income3 7,072 6,419 5,357 5,292 6,607 Common Dividends per Share 0.125 0.125 0.125 0.125 0.125 Dividend Yield (annualized) 4.8 % 5.0 % 3.6 % 5.1 % 5.0 % Payout Ratio 41.7 % 52.1 % 250.0 % 34.7 % 29.8 % Profitability (%) ROAA 0.58 % 0.47 % 0.10 % 0.73 % 0.86 % ROAE 8.25 % 6.73 % 1.44 % 10.17 % 12.08 % NIM 3.06 % 3.09 % 3.18 % 3.29 % 3.33 %

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 7Meridian Corporation Q2'2024 INCOME STATEMENT TRENDS ($000s) Pre-tax, Pre-provision Income by Segment Q2'2023 Q1'2024 Q2'2024 Bank $ 7,285 $ 6,406 $ 5,851 Wealth 317 478 676 Mortgage (995) (465) 545 Total Pre-tax, Pre-provision Income $ 6,607 $ 6,419 $ 7,072 Q2'2023 Q1'2024 Q2'2024 Net Interest Income Non-Interest Income Non-Interest Expense Pre-Tax, Pre- Provision Income Net Income $0 $5,000 $10,000 $15,000 $20,000

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 8Meridian Corporation NET INTEREST MARGIN 3.33% 3.29% 3.18% 3.09% 3.06% 6.57% 6.76% 6.81% 6.90% 6.98% 3.39% 3.63% 3.81% 4.00% 4.10% Net Interest Margin Yield on Earning Assets Cost of Funds Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 9Meridian Corporation MORTGAGE VOLUME & MARGIN TRENDS 2.67% 2.73% 3.14% 2.89% 2.71% 2.76% 2.95% 2.81% Closed and Funded - Purchase Closed and Funded - Refi Sold Volume Margin Q3'2022 Q4'2022 Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 $0 $60 $120 $180 $240 $300 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% Q3'2022 Q4'2022 Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 Refinance (%) 14% 11% 13% 9% 10% 13% 16% 10% Purchase (%) 86% 88% 87% 91% 90% 87% 84% 90%

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 10Meridian Corporation LOAN PORTFOLIO COMPOSITION Portfolio Balance (000s) June 30, 2024 QTR* Growth % Commercial mortgage 775,298 6.3 % Commercial and industrial 352,471 29.6 % Construction 262,624 (0.7) % SBA loans 151,458 13.2 % Leases, net 97,624 (41.4) % Residential mortgage 259,469 (5.1) % Home equity 83,828 36.9 % Consumer, other 369 (12.6) % Total portfolio loans $ 1,983,141 6.8 % Commercial mortgage, 39% Consumer , 17% Construction, 13% Commercial and industrial, 18% SBA , 8% Leases, 5% Commercial - 83% Consumer- 17% *Quarter growth annualized

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 11Meridian Corporation C&I LOAN PORTFOLIO OVERVIEW C&I Portfolio By Industry as of June 30, 2024 10 Largest C&I Relationships as a % of C&I Portfolio 15 % 10 Largest C&I Relationships as a % of Total Loan Portfolio 6 % Average Loan Size Outstanding of C&I Portfolio ($000s) $581 Weighted Average Risk Rating of C&I Portfolio 4.0 (pass) Maufacturing, 17.5% Other, 20.5% Health & Social Services, 10.0% RE Investment, 9.1% Professional Services, 9.0% Constr Related, 8.2% WholesaleTrade, 7.8% Financial, Insurance & RE Services, 6.1% Retail Trade, 5.8% Admin & Support, 4.3% Waste Mgmt & Remediation, 1.6% Total C&I Loans* $809 million *Includes owner occupied CRE of $244 million Portfolio Characteristics

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 12Meridian Corporation Resi & Coml Constr, 30.7% Resi RE Inv, 29.1% Com RE Inv, 18.8% Leisure, 7.7% Construction Related, 2.6% RE & Rental Lease, 1.7% Other, 9.4% CRE LOAN PORTFOLIO OVERVIEW Total CRE Loans $793 Million* (as a % of CRE loans) *Owner occupied CRE of $244 million not included (see C&I chart) Included in CRE: • $117.5M of multi-family loans Region Amount ($000s) % of Total Philadelphia 57,111 49 % Montgomery County, PA 18,966 16 % Chester County, PA 16,835 14 % Bucks County, PA 7,140 6 % Wilmington, DE 7,134 6 % Southern NJ 4,223 4 % Delaware County PA 3,996 3 % Out of Market 2,092 2 % $ 117,497

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 13Meridian Corporation CRE RATIOS - 100 & 300* 116% 273% CRE 100 Ratio CRE 300 Ratio Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Jun-24 50% 100% 150% 200% 250% 300% Increase of $120M in Construction of which $56M was Multi-family * The CRE 100 Ratio and CRE 300 Ratio consist of construction loans (100) and non-owner occupied CRE loans (300) compared to total risk-based capital at June 30, 2024.

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 14Meridian Corporation ASSET QUALITY TRENDS 0.04% 0.02% 0.05% 0.08% 0.05% 0.05% 0.11% 0.12% 0.20% 1.24% 1.20% 1.11% 1.11% 1.32% 1.38% 1.58% 1.74% 1.68% NCOs / Avg Loans NPAs / Assets Q2'2022 Q3'2022 Q4'2022 Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00%

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 15Meridian Corporation INTEREST RATE SENSITIVITY & LIQUIDITY *as rate shifts upward and downward on the yield curve in even increments over twelve months (ramp) Calculated Increase (Decrease) in Projected Annual Net Interest Income* June 30, 2024 June 30, 2023 $ Change (000s) % Change $ Change (000s) % Change Rates up 200 bps (5) (0.1) % (89) (1.1) % Rates up 100 bps 10 0.1 % (34) (0.4) % Rates down 100 bps (91) (1.3) % (89) (1.1) % Rates down 200 bps (151) (2.2) % (179) (2.2) % Projected Interest Sensitivity Changes as a Measure of Net Interest Income Relatively neutral

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 16Meridian Corporation ACL COMPOSITION (Q2'2024 vs Q1'2024) 16 Funded ACL ($000's) Q1'2024 Funded ACL as % of Portfolio Q2'2024 Funded ACL as % of Portfolio Commercial loans (C&I, CRE, and construction) 9,378 0.69 % 9,078 0.65 % Small business loans 7,005 4.92 % 7,498 5.11 % Home equity lines and loans 998 1.31 % 1,114 1.45 % Residential mortgage 1,020 0.39 % 1,059 0.40 % Leases 3,706 3.05 % 2,954 2.71 % Total Funded ACL $ 22,107 $ 21,703 ACL to Loans HFI (1) 1.19 % 1.10 % (1) Excludes loans held for sale and loans at FV ACL Trend ACL ACL to Loans HFI 1/1/2023 (Day 1) Q1'2023 Q2'2023 Q3'2023 Q4'2023 Q1'2024 Q2'2024 $— $5,000 $10,000 $15,000 $20,000 $25,000 0.25% 0.50% 0.75% 1.00% 1.25%

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 17Meridian Corporation APPENDIX - HISTORICAL FINANCIAL HIGHLIGHTS AND RECONCILIATIONS OF NON-GAAP MEASURES

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 18Meridian Corporation HISTORICAL FINANCIAL DATA 1) Includes loans held for sale and held for investment. 2) Includes loans held for investment (excluding loans at fair value). 3) A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation. As of or the Quarter Ended As of or the Year Ended (dollars in thousands) Q2'2024 Q1'2024 Q2'2023 2023Y 2022Y 2021Y Balance Sheet Total Assets $ 2,351,584 $ 2,292,923 $ 2,206,877 $ 2,246,193 $ 2,062,228 $ 1,713,443 Loans (1) 2,042,813 1,985,439 1,900,261 1,920,622 1,765,925 1,467,339 Deposits 1,915,436 1,900,696 1,782,605 1,823,462 1,712,479 1,446,413 Gross Loans / Deposits 106.65 % 104.46 % 106.60 % 105.33 % 103.12 % 101.45 % Capital Total Equity $ 162,382 $ 159,936 $ 153,962 $ 158,022 $ 153,280 $ 165,360 Tangible Common Equity / Tangible Assets - HC (3) 6.76 % 6.82 % 6.81 % 6.87 % 7.25 % 9.42 % Tangible Common Equity / Tangible Assets - Bank (3) 8.85 8.93 8.54 8.94 8.80 11.54 Tier 1 Leverage Ratio - Bank 9.33 9.42 9.22 9.46 9.95 11.51 Total Capital Ratio - Bank 10.84 10.95 11.43 11.17 11.87 14.63 Commercial Real Estate Loans / Total RBC 275.8 % 266.6 % 262.0 % 255.9 % 232.8 % 167.2 % Earnings & Profitability Net Income $ 3,326 $ 2,676 $ 4,645 $ 13,243 $ 21,829 $ 35,585 ROA 0.58 % 0.47 % 0.86 % 0.61 % 1.18 % 2.06 % ROE 8.25 6.73 12.08 8.53 13.87 23.74 Net Interest Margin (NIM)(TEY) 3.06 3.09 3.33 3.35 3.98 3.77 Non-Int Inc. / Avg. Assets 1.60 1.42 1.69 1.48 2.26 5.09 Efficiency Ratio 72.89 % 73.90 % 74.80 % 76.43 % 72.81 % 68.65 % Asset Quality Nonaccrual Loans / Loans (1) 1.84 % 1.93 % 1.44 % 1.76 % 1.20 % 1.57 % NPAs / Assets 1.68 1.74 1.32 1.58 1.11 1.34 Reserves / Loans (2) (3) 1.10 1.19 1.10 1.17 1.09 1.46 NCOs / Average Loans 0.20 % 0.12 % 0.05 % 0.30 % 0.15 % 0.00 % Yield and Cost Yield on Earning Assets (TEY) 6.98 % 6.90 % 6.57 % 6.62 % 5.02 % 4.27 % Cost of Deposits 3.98 3.84 3.17 3.24 0.97 0.48 Cost of Interest-Bearing Liabilities 4.60 % 4.51 % 3.92 % 3.97 % 1.36 % 0.65 %

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 19Meridian Corporation Allowance For Credit Losses (ACL) to Loans, Net of Fees and Costs, Excluding Loans at Fair Value (dollars in thousands) 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 ACL to loans, net of fees and costs (GAAP) 1.09 % 1.18 % 1.17 % 1.04 % 1.09 % ACL to loans, net of fees and costs, excluding FV loans (non-GAAP) 1.10 % 1.19 % 1.17 % 1.05 % 1.10 % RECONCILIATION OF NON-GAAP MEASURES 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 (Dollars in thousands, except per share data) June 30, 2024 March 31, 2024 June 30, 2023 Income before income tax expense $ 4,392 $ 3,553 $ 5,902 Provision for credit losses 2,680 2,866 705 Pre-tax, pre-provision income $ 7,072 $ 6,419 $ 6,607 Bank $ 5,851 $ 6,406 $ 7,285 Wealth 676 478 317 Mortgage 545 (465) (995) Pre-tax, pre-provision income $ 7,072 $ 6,419 $ 6,607

 
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 20Meridian Corporation (dollars in thousands) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Tangible common equity ratio - Consolidated: 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 ratio (non-GAAP) 6.76 % 6.82 % 6.87 % 6.79 % 6.81 % Tangible common equity ratio - Bank: 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 ratio (non-GAAP) 8.85 % 8.93 % 8.94 % 8.89 % 8.54 % RECONCILIATION OF NON-GAAP MEASURES

 
v3.24.2
Cover
Jul. 26, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 26, 2024
Entity Registrant Name Meridian Corp
Entity Incorporation, State or Country Code PA
Entity File Number 000-55983
Entity Tax Identification Number 83-1561918
Entity Address, Address Line One 9 Old Lincoln Highway, Malvern, Pennsylvania
Entity Address, City or Town Malvern
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19355
City Area Code (484) 568-5000Registrant’s telephone number, including area code
Local Phone Number (484) 568-5000Registrant’s telephone number, including area code
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $1 par value
Trading Symbol MRBK
Security Exchange Name NASDAQ
Entity Central Index Key 0001750735
Amendment Flag false
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