Meridian Corporation (MRBK) investor relations material

Executive summary

• Net income for Q2 2025 was $5.6 million ($0.49 per diluted share), up 68.1% year-over-year and 133% from the prior quarter, driven by improved margins, SBA loan sales, and mortgage seasonality.

• Total assets grew 5.2% year-to-date to $2.5 billion as of June 30, 2025, but declined 0.7% from March 31, 2025, due to withdrawal of a large temporary deposit.

• Pre-provision net revenue rose to $11.1 million, a 57% increase from Q2 2024, reflecting business growth and expense control.

• Return on average assets and equity improved to 0.90% and 12.68% for Q2 2025.

• Board declared a $0.125 per share quarterly dividend, payable August 18, 2025.

Financial highlights

• Net interest income for Q2 2025 was $21.2 million, up 25.6% year-over-year and $1.4 million sequentially; net interest margin expanded to 3.54%.

• Non-interest income increased 22.1% year-over-year and 54% quarter-over-quarter to $11.3 million, led by mortgage banking and SBA loan sales.

• Non-interest expense rose 12.3% in Q2 to $21.4 million, mainly due to higher salaries and advertising.

• Book value per share was $15.76 and tangible book value per share was $15.44 at June 30, 2025.

• Allowance for credit losses to loans increased to 1.00% at June 30, 2025.

Outlook and guidance

• Management forecasts full-year loan growth in the 8-10% range, despite Q2 loan growth being impacted by SBA loan sales and planned lease paydowns.

• Interest rate risk simulations indicate a neutral balance sheet position over the next 12 months, with manageable exposure to rate changes.

• Economic value of equity analysis suggests a negative impact from rapid rate declines, but gradual shifts would have a more modest effect.

• Focus remains on reducing historically high nonperforming loans, though resolution is expected to be slow.

• Management continues to focus on growing relationship-based deposits and funding short- to medium-term assets.