Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 000-55983 (Exact name of registrant as specified in its charter) Pennsylvania 83-156191 ...

Core Viewpoint - Wall Street anticipates flat earnings for Meridian Bank in the upcoming quarter, with a consensus EPS estimate of $0.35, unchanged from the previous year, while revenues are expected to rise by 5% to $26.57 million [2][6]. Group 1: Earnings Estimates - The consensus EPS estimate for Meridian Bank has remained unchanged over the last 30 days, indicating stability in analyst expectations [3]. - Meridian Bank's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.86%, suggesting a bullish outlook from analysts [6][7]. Group 2: Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [5]. - Meridian Bank currently holds a Zacks Rank of 2, reinforcing the likelihood of beating the consensus EPS estimate [7]. Group 3: Historical Performance - In the last reported quarter, Meridian Bank was expected to post earnings of $0.32 per share but delivered only $0.30, resulting in a surprise of -6.25% [8]. - Over the past four quarters, Meridian Bank has only beaten consensus EPS estimates once, indicating a mixed historical performance [8]. Group 4: Market Context - The Bancorp, a peer in the Zacks Banks - Northeast industry, is expected to report earnings of $1.12 per share, reflecting a year-over-year increase of +21.7%, with revenues projected to rise by 13.6% to $131.34 million [10]. - The Bancorp's recent EPS estimate has been revised down by 2.5%, and it currently has an Earnings ESP of 0.00% combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [10].

Group 1 - Meridian Corporation (NASDAQ: MRBK) is expected to see a significant increase in earnings due to anticipated interest rate cuts, which will enhance mortgage banking income [1] - Healthy loan growth is projected to further support the company's bottom line [1] - Earnings growth is forecasted at 16%, reaching $1.35 per share [1]

Partnership aims to improve access to doula care and address the cultural needs of Medicaid members during pregnancy and postpartum DETROIT, Sept. 19, 2024 /PRNewswire/ -- Meridian, a leading managed care organization in the state of Michigan and a Centene Corporation company (NYSE: CNC), has partnered with Mae, a culturally responsive digital solution built to address the specific clinical, social and cultural needs of underserved expectant mothers, to provide supplementary support for the maternal health ...

9 c 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 consi ...

Meridian Bank, which belongs to the Zacks Banks - Northeast industry, posted revenues of $26.09 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $26.22 million. The company has topped consensus revenue estimates three times over the last four quarters. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely ...

Christopher J. Annas, Chairman and CEO commented: Income Statement - Second Quarter 2024 Compared to First Quarter 2024 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, re ...

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 ...

PART I FINANCIAL INFORMATION [Item 1 Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20(Unaudited)) This section presents Meridian Corporation's unaudited consolidated financial statements for Q1 2024, including balance sheets, income, comprehensive income, equity, and cash flow statements, with detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$2.29 billion** as of March 31, 2024, from **$2.25 billion** at year-end 2023, driven by a net increase in loans, funded by an increase in total deposits to **$1.90 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,292,923** | **$2,246,193** | | Cash and cash equivalents | $23,027 | $56,697 | | Loans, net | $1,933,144 | $1,873,699 | | **Total Liabilities** | **$2,132,987** | **$2,088,171** | | Total deposits | $1,900,696 | $1,823,462 | | Borrowings | $145,803 | $174,896 | | **Total Stockholders' Equity** | **$159,936** | **$158,022** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2024, net income decreased to **$2.7 million** from **$4.0 million** in Q1 2023, primarily due to increased interest expense outpacing income growth and a doubled provision for credit losses Q1 2024 vs Q1 2023 Income Statement (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income | $16,609 | $17,677 | | Provision for credit losses | $2,866 | $1,399 | | Non-interest income | $7,984 | $6,638 | | Non-interest expense | $18,174 | $17,789 | | **Net Income** | **$2,676** | **$4,021** | | Diluted EPS | $0.24 | $0.34 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2024 was **$3.1 million**, down from **$5.7 million** in Q1 2023, including **$2.7 million** net income and **$0.5 million** other comprehensive income from unrealized gains on interest rate swaps Comprehensive Income Summary (in thousands) | Component | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $2,676 | $4,021 | | Total Other Comprehensive Income | $473 | $1,670 | | **Total Comprehensive Income** | **$3,149** | **$5,691** | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased to **$159.9 million** by March 31, 2024, driven by **$2.7 million** net income and **$0.5 million** other comprehensive income, partially offset by **$1.4 million** in dividends - Key changes in stockholders' equity for Q1 2024 included **$2.7 million** in net income, **$0.5 million** in other comprehensive income, and **$1.4 million** in dividends declared (**$0.125 per share**)[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$33.7 million** in Q1 2024 due to cash outflows from operating (**$1.7 million**) and investing (**$78.7 million**) activities, partially offset by financing inflows (**$46.8 million**) from increased deposits Cash Flow Summary (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,706) | $(11,400) | | Net cash used in investing activities | $(78,728) | $(84,198) | | Net cash provided by financing activities | $46,764 | $165,710 | | **Net change in cash and cash equivalents** | **$(33,670)** | **$70,112** | [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) This section details accounting policies, securities, loan portfolio, credit losses, borrowings, fair value, and segment reporting, including investment portfolio unrealized losses, nonaccrual loans, and allowance for credit losses - The investment portfolio's unrealized loss position of **$11.3 million** at March 31, 2024, is primarily attributed to changes in market interest rates rather than credit impairment[37](index=37&type=chunk) - Nonaccrual loans increased to **$38.2 million** as of March 31, 2024, from **$33.8 million** at December 31, 2023[46](index=46&type=chunk)[47](index=47&type=chunk) - The allowance for credit losses (ACL) increased to **$23.2 million** at March 31, 2024, from **$22.1 million** at year-end 2023, with a provision of **$3.4 million** and net charge-offs of **$2.3 million** during the quarter[56](index=56&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a decrease in net income to **$2.7 million** due to net interest margin compression and higher credit loss provisions, covering asset quality, income, expenses, balance sheet, capital, and segment performance - Net income for Q1 2024 was **$2.7 million** (**$0.24 per diluted share**), down **33.4%** from Q1 2023, driven by increased interest expense and a higher provision for credit losses[140](index=140&type=chunk) - Net interest margin decreased to **3.09%** in Q1 2024 from **3.61%** in Q1 2023 due to deposit and borrowing repricing outpacing the repricing of interest-earning assets[140](index=140&type=chunk) - Total assets grew by **2.1%** to **$2.3 billion**, primarily from a **3.3%** increase in portfolio loans, funded by a **4.2%** increase in total deposits[140](index=140&type=chunk) [Net Interest Income](index=39&type=section&id=NET%20INTEREST%20INCOME) Net interest income decreased by **$1.1 million** to **$16.6 million** in Q1 2024, as a **$7.3 million** increase in interest expense from higher deposit and borrowing costs more than offset a **$6.3 million** rise in tax-equivalent interest income Net Interest Income and Margin (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income (tax-equivalent) | $16,691 thousand | $17,752 thousand | | Net Interest Margin (tax-equivalent) | 3.09% | 3.61% | - The increase in interest expense was primarily driven by rate changes, which accounted for a **$4.9 million** increase, while volume changes contributed **$2.4 million**[148](index=148&type=chunk) [Provision for Credit Losses and Asset Quality](index=41&type=section&id=PROVISION%20FOR%20CREDIT%20LOSSES) The provision for credit losses increased by **$1.5 million** to **$2.9 million** in Q1 2024, driven by higher specific reserves and loan growth, leading to non-performing assets rising to **1.74%** of total assets - The provision for credit losses increased to **$2.9 million** in Q1 2024 from **$1.4 million** in Q1 2023[57](index=57&type=chunk) - Net charge-offs were **0.12%** of total average loans for Q1 2024, up from **0.08%** in Q1 2023, with a large portion coming from small ticket equipment leases[154](index=154&type=chunk) - The allowance for credit losses to total loans held for investment (non-GAAP) was **1.19%** as of March 31, 2024, slightly up from **1.17%** at December 31, 2023[155](index=155&type=chunk) [Non-Interest Income](index=43&type=section&id=NON-INTEREST%20INCOME) Total non-interest income increased by **20.3%** to **$8.0 million** in Q1 2024, primarily driven by growth in mortgage banking, SBA loan, and wealth management income Non-Interest Income Components (in thousands) | Component | Q1 2024 | Q1 2023 | $ Change | | :--- | :--- | :--- | :--- | | Mortgage banking income | $3,634 | $3,272 | $362 | | Wealth management income | $1,317 | $1,196 | $121 | | SBA loan income | $986 | $713 | $273 | | **Total non-interest income** | **$7,984** | **$6,638** | **$1,346** | [Non-Interest Expense](index=43&type=section&id=NON-INTEREST%20EXPENSE) Total non-interest expense rose slightly by **2.2%** to **$18.2 million** in Q1 2024, mainly due to increased professional fees for loan workout and system conversions, partially offset by reduced salaries and employee benefits Non-Interest Expense Components (in thousands) | Component | Q1 2024 | Q1 2023 | $ Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $10,573 | $11,061 | $(488) | | Professional fees | $1,498 | $823 | $675 | | **Total non-interest expense** | **$18,174** | **$17,789** | **$385** | [Balance Sheet Analysis](index=44&type=section&id=BALANCE%20SHEET%20ANALYSIS) Total assets increased by **$46.7 million** to **$2.3 billion** as of March 31, 2024, driven by **3.3%** growth in portfolio loans, funded by a **4.2%** increase in total deposits with a shift towards higher-yielding accounts - Portfolio loan growth was led by increases in commercial real estate (**$25.5 million**), commercial and industrial loans (**$25.3 million**), and construction loans (**$16.6 million**)[167](index=167&type=chunk) - Time deposits grew by **$75.9 million** (**11.1%**), while noninterest-bearing deposits decreased by **$18.7 million** (**7.8%**)[168](index=168&type=chunk) [Capital and Liquidity](index=45&type=section&id=Capital) The Corporation remains well-capitalized with a Tier 1 leverage ratio of **9.42%** and adequate liquidity, including access to approximately **$1.0 billion** from various sources Bank Capital Ratios | Ratio | March 31, 2024 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 leverage ratio | 9.42% | 5.00% | | Total risk-based capital ratio | 10.95% | 10.00% | - Tangible book value per share (non-GAAP) increased to **$13.96** from **$13.78** at year-end 2023[170](index=170&type=chunk) - The company has a maximum borrowing capacity with the FHLB of **$656.0 million** as of March 31, 2024[173](index=173&type=chunk) [Item 3 Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Corporation manages interest rate risk using simulation models, projecting net interest income to increase by **0.73%** with a 100 basis point rate rise and decrease by **1.85%** with a 100 basis point rate fall, indicating an asset-sensitive balance sheet Net Interest Income Sensitivity (12-Month Simulation) | Rate Change | % Change in NII (as of Mar 31, 2024) | | :--- | :--- | | +200 bps | +1.12% | | +100 bps | +0.73% | | -100 bps | -1.85% | | -200 bps | -3.23% | - The economic value of equity (EVE) simulation shows a negative effect from both increases and decreases in rates, with the impact worsening as rates move downward[192](index=192&type=chunk) [Item 4 Controls and Procedures](index=48&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2024[195](index=195&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, the Corporation's internal controls[196](index=196&type=chunk) PART II OTHER INFORMATION [Item 1 Legal Proceedings](index=50&type=section&id=Item%201%20Legal%20Proceedings) The Corporation reported no legal proceedings during the period - None[199](index=199&type=chunk) [Item 1A Risk Factors](index=50&type=section&id=Item%201A%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes from the risk factors disclosed in the 2023 Form 10-K[199](index=199&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation reported no unregistered sales of equity securities or use of proceeds during the period - None[200](index=200&type=chunk) [Item 5 Other Information](index=50&type=section&id=Item%205%20Other%20Information) The Corporation reported no other information required to be disclosed under this item - None[203](index=203&type=chunk) [Item 6 Exhibits](index=51&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files - Exhibits filed include CEO and CFO certifications (**31.1, 31.2, 32**) and XBRL interactive data files[206](index=206&type=chunk)

MALVERN, Pa., May 08, 2024 (GLOBE NEWSWIRE) -- Meridian Bank announced the appointment of Christopher E. McDermott to the position of Senior Vice President, Commercial Lending. He'll join other members of the Meridian Commercial Lending Team in serving business customers in Bucks and Montgomery Counties. Chris began his long banking career right out of high school. He started as a clerk at Girard Bank and advanced through that organization while he simultaneously earned his degree in finance from LaSalle Co ...