MALVERN, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:

 Three Months Ended
(Dollars in thousands, except per share data) (Unaudited)September 30,

2024

 June 30,

2024

 September 30,

2023

Income:     
Net income$4,743 $3,326 $4,005
Diluted earnings per common share$0.42 $0.30 $0.35
Pre-tax, pre-provision income (1)$8,527 $7,072 $5,292
(1) See Non-GAAP reconciliation in the Appendix     
      
  • Net income for the quarter ended September 30, 2024 was $4.7 million and pre-tax, pre-provision income was $8.5 million1.
  • Return on average assets and return on average equity for the third quarter of 2024 were 0.80% and 11.41%, respectively.

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  • Net interest margin was 3.20% for the third quarter of 2024, with a loan yield of 7.41%.

  • Total assets at September 30, 2024 were $2.4 billion, compared to $2.4 billion at June 30, 2024 and $2.2 billion at September 30, 2023.

  • Commercial loans, excluding leases, increased $30.0 million, or 2% for the quarter and $158.0 million, or 11% year over year.
  • Third quarter deposit growth was $63.5 million, or 3%, and $170.3 million, or 9.4% year over year.
  • Non-interest-bearing deposits were up $13.2 million or 6%, quarter over quarter.

  • On October 22, 2024, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable November 19, 2024 to shareholders of record as of November 12, 2024.
Christopher J. Annas, Chairman and CEO commented:

"Our third quarter earnings showed significant improvement from the second quarter, increasing by 42.6% to $4.7 million, or $0.42 per share. Key highlights include an improving net interest margin at 3.20% for the quarter, and strong results from our wealth and mortgage segments. Robust loan growth of 7.2% for the first nine months of the year reflects our strong sales culture and healthy economic conditions in our primary market areas.  We have great systems for lenders to be more effective, and that same technology for our customers to bank entirely online, which leads to better efficiencies. Deposit growth is consistent, and we are evaluating deposit-rich segments to accelerate growth that is less reliant on branch networks.

Our wealth segment is benefiting from local disruption and the cross-selling from our commercial/industrial and CRE lending units. A recent hire from a large local bank has accelerated growth and has a pipeline for adding advisors. The mortgage segment has recovered from the rate shock, and despite a continued lack of homes for sale, is hitting volume levels similar to pre-2019. The hard decisions made to cut back expenses and reposition the business are paying off. And if mortgage rates fall in 2025, there are many refinance opportunities.  

Since starting the bank in 2004, Meridian has built a great reputation for responsiveness and consistency. The business community heavily relies on these qualities in a bank to build and grow themselves. We are the go-to bank in the Philadelphia metro market, and in a great position to build ever larger market share."

Select Condensed Financial Information

 As of or for the quarter ended (Unaudited)
 September 30, 

2024

 June 30, 

2024

 March 31, 

2024

 December 31, 

2023

 September 30, 

2023

 (Dollars in thousands, except per share data)
Income:         
Net income$4,743  $3,326  $2,676  $571  $4,005 
Basic earnings per common share 0.43   0.30   0.24   0.05   0.36 
Diluted earnings per common share 0.42   0.30   0.24   0.05   0.35 
Net interest income 18,242   16,846   16,609   16,942   17,224 
          
Balance Sheet:         
Total assets$2,387,721  $2,351,584  $2,292,923  $2,246,193  $2,230,971 
Loans, net of fees and costs 2,008,396   1,988,535   1,956,315   1,895,806   1,885,629 
Total deposits 1,978,927   1,915,436   1,900,696   1,823,462   1,808,645 
Non-interest bearing deposits 237,207   224,040   220,581   239,289   244,668 
Stockholders' equity 167,450   162,382   159,936   158,022   155,114 
          
Balance Sheet Average Balances:         
Total assets$2,373,261  $2,319,295  $2,269,047  $2,219,340  $2,184,385 
Total interest earning assets 2,277,523   2,222,177   2,173,212   2,121,068   2,086,331 
Loans, net of fees and costs 1,997,574   1,972,740   1,944,187   1,891,170   1,876,648 
Total deposits 1,960,145   1,919,954   1,823,523   1,820,532   1,782,140 
Non-interest bearing deposits 246,310   229,040   233,255   254,025   253,485 
Stockholders' equity 165,309   162,119   159,822   157,210   156,271 
          
Performance Ratios (Annualized):         
Return on average assets 0.80%  0.58%  0.47%  0.10%  0.73%
Return on average equity 11.41%  8.25%  6.73%  1.44%  10.17%
                    
Income Statement - Third Quarter 2024 Compared to Second Quarter 2024

Third quarter net income increased $1.4 million, or 42.6%, to $4.7 million led by increased net interest income and a lower quarterly provision for credit losses, combined with an increase in net operating income from the mortgage division.  Net interest income increased $1.4 million, or 8.3%, as the increase in interest income out-paced the increase in interest expense. Non-interest income increased $1.6 million or 17.2%, reflecting higher levels of mortgage banking income and an improvement in fair value changes of the pipeline as well as fair valued portfolio loans.  Non-interest expense increased $1.5 million, or 8.0%, due primarily to an increase in salaries and employee benefits expense, professional fees and other expense.  These increases were partially offset by a decrease in advertising and promotion expense. 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)September 30,

2024

 June 30,

2024

 $ Change % Change Change due

to rate

 Change due

to volume

Interest income:           
Cash and cash equivalents$416 $331 $85  25.7% $3  $82 
Investment securities - taxable 1,480  1,324  156  11.8%  28   128 
Investment securities - tax exempt (1) 397  403  (6) (1.5)%  (3)  (3)
Loans held for sale 766  572  194  33.9%  (5)  199 
Loans held for investment (1) 37,339  35,916  1,423  4.0%  967   456 
Total loans  Advertisement