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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, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (484) 568-5000 (Registrant's telephone number, including area code) | Title of class | Trading Symbol | Name of exchange on which registered | | --- | --- | --- | | Co ...

186 12 47 239 15 75 0 0 0 111 111 113 186 12 0 234 234 234 112 173 71 MeridianCorporation ® Q3'2022 Investor Presentation NASDAQ: MRBK 186 12 47 239 15 75 0 0 0 111 111 113 186 12 0 234 234 234 112 173 71 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 re ...

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 June 30, 2022 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 83-1561918 (St ...

186 12 47 239 15 75 0 0 0 111 111 113 186 12 0 234 234 234 112 173 71 2 nd QTR 2022 Investor Presentation NASDAQ: MRBK 186 12 47 239 15 75 0 0 0 111 111 113 186 12 0 234 234 234 112 173 71 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 Meridia ...

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 March 31, 2022 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 83-1561918 (S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20429 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 83-1561918 (I.R.S. Employer Identification No.) (St ...

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, 2021 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 83-1561918 (State or other juri ...

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 June 30, 2021 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 83-1561918 (State or other jurisdict ...

PART I [Item 1 Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Meridian Corporation for the quarterly period ended March 31, 2021, including balance sheets, income statements, and cash flows, with detailed notes on accounting policies and financial line items [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets increased to $1.74 billion from $1.72 billion at December 31, 2020, driven by growth in net loans and total deposits, while stockholders' equity saw a slight increase Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $31,004 | $36,744 | | Loans, net of allowance | $1,336,175 | $1,266,997 | | Total assets | $1,743,977 | $1,720,197 | | **Liabilities & Equity** | | | | Non-interest bearing deposits | $257,730 | $203,843 | | Total deposits | $1,383,590 | $1,241,335 | | Total liabilities | $1,600,472 | $1,578,575 | | Total stockholders' equity | $143,505 | $141,622 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2021, net income surged to $10.2 million, driven by a 56.4% rise in net interest income and a substantial increase in non-interest income from mortgage banking activities, leading to diluted earnings per share of $1.65 Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three months ended March 31, 2021 | Three months ended March 31, 2020 | | :--- | :--- | :--- | | Net interest income | $15,120 | $9,666 | | Provision for loan losses | $599 | $1,552 | | Non-interest income | $27,048 | $9,219 | | Non-interest expenses | $28,263 | $14,062 | | Net income | $10,170 | $2,516 | | Diluted earnings per common share | $1.65 | $0.39 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2021, net cash provided by operating activities was $62.8 million, while net cash used in investing activities was $81.0 million, and net cash provided by financing activities was $12.5 million, resulting in a net decrease in cash and cash equivalents of $5.7 million Consolidated Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2021 | Three months ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $62,764 | $(62,678) | | Net cash used in investing activities | $(81,014) | $(83,979) | | Net cash provided by financing activities | $12,510 | $144,808 | | **Net change in cash and cash equivalents** | **$(5,740)** | **$(1,849)** | [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail the basis of financial statement preparation under U.S. GAAP, including disclosures on earnings per share, securities, loans, fair value measurements, derivatives, and segment reporting, while highlighting the impact of COVID-19 on estimates and the election for an extended transition period for new accounting standards - The financial statements are prepared under U.S. GAAP for interim periods and include management's estimates, which are subject to uncertainty, especially concerning the allowance for loan losses due to the COVID-19 pandemic[19](index=19&type=chunk)[20](index=20&type=chunk)[23](index=23&type=chunk) - As an 'emerging growth company,' the Corporation has elected to use an extended transition period for complying with new or revised accounting standards, such as CECL (ASU 2016-13), which will be effective January 1, 2023[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 financial results, highlighting a significant increase in net income to $10.2 million, driven by strong growth in net interest income and a 193.4% surge in non-interest income from mortgage banking, with total assets growing to $1.7 billion and continued strong asset quality Q1 2021 Performance Highlights vs. Q1 2020 | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Income | $10.2 million | $2.5 million | | Diluted EPS | $1.65 | $0.39 | | ROE | 30.06% | 8.40% | | ROA | 2.43% | 0.87% | | Net Interest Income | $15.1 million | $9.7 million | | Non-interest Income | $27.1 million | $9.2 million | - The company processed over **797 PPP loan applications** totaling approximately **$117 million** in Q1 2021 under the reopened program[139](index=139&type=chunk) - As of March 31, 2021, active loan modifications related to COVID-19 stood at **$28.8 million**, up slightly from **$26.9 million** at year-end 2020[147](index=147&type=chunk) - The company returned **$6.9 million** to shareholders in Q1 2021 through a regular quarterly dividend of **$0.125** and a special dividend of **$1.00** per share[150](index=150&type=chunk) [Components of Net Income](index=38&type=section&id=Components%20of%20Net%20Income) Net income for Q1 2021 was driven by a $5.5 million (56.4%) year-over-year increase in net interest income to $15.1 million, a decrease in provision for loan losses, and a $17.8 million (193.4%) surge in non-interest income, primarily from mortgage banking, despite a $14.2 million (101.0%) rise in non-interest expense - Net interest margin increased to **3.72%** in Q1 2021 from **3.49%** in Q1 2020, as the decline in funding costs outpaced the decline in asset yields[165](index=165&type=chunk) - Mortgage banking net revenue increased by **$17.3 million (254.8%)** YoY, driven by a **184.6%** increase in loan originations to **$724.7 million**[198](index=198&type=chunk)[200](index=200&type=chunk) - Salaries and employee benefits expense increased by **$12.3 million (124.0%)**, with **$12.5 million** of the increase related to the mortgage division's expansion[203](index=203&type=chunk) [Asset Quality and Analysis of Credit Risk](index=44&type=section&id=Asset%20Quality%20and%20Analysis%20of%20Credit%20Risk) As of March 31, 2021, asset quality remained strong, with non-performing assets at $8.6 million (0.49% of total assets), a stable allowance for loan losses at 1.65% of total loans held for investment (excluding PPP and fair value loans), and net charge-offs of 0.00% for the quarter Asset Quality Ratios | Metric | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Non-performing assets to total assets | 0.49% | 0.46% | | Total non-performing assets | $8,593 thousand | $7,930 thousand | | Allowance for loan losses to non-performing loans | 213.83% | 224.04% | [Balance Sheet Analysis](index=47&type=section&id=BALANCE%20SHEET%20ANALYSIS) As of March 31, 2021, total assets grew by $23.8 million to $1.7 billion, driven by a $69.2 million increase in net loans and a $142.3 million rise in deposits, while borrowings decreased and stockholders' equity increased to $143.5 million - Total loans, net of allowance, grew **5.5%** to **$1.3 billion**, with a **$37.9 million** net increase in PPP loans[209](index=209&type=chunk) - Total deposits increased **11.5%** to **$1.4 billion**, with non-interest bearing deposits growing **26.4%**[211](index=211&type=chunk) - The tangible common equity to tangible assets ratio remained stable at **7.99%**[214](index=214&type=chunk) [Liquidity](index=48&type=section&id=Liquidity) The Corporation maintains a strong liquidity position with a stable deposit base, cash, and a marketable investment portfolio, totaling $341.6 million in primary liquidity as of March 31, 2021, supplemented by significant available credit lines to meet funding needs - Primary liquidity stood at **$341.6 million** as of March 31, 2021[216](index=216&type=chunk) - Maximum borrowing capacity with the FHLB was **$546.7 million**, with **$38.6 million** borrowed and **$154 million** in letters of credit issued against it[217](index=217&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The Corporation manages market risk, primarily interest rate risk, through simulation modeling and gap analysis, indicating an asset-sensitive balance sheet where net interest income is expected to increase in a rising rate environment, with strategies employed to mitigate risk Net Interest Income Sensitivity (Rate Ramp over 12 months) | Change in Market Interest Rates | Estimated % Change in NII (as of Mar 31, 2021) | | :--- | :--- | | +300 basis points | 3.83% | | +200 basis points | 2.28% | | +100 basis points | 1.06% | | -100 basis points | (1.56)% | | -200 basis points | (5.01)% | - The Corporation's balance sheet is asset-sensitive, with a cumulative one-year repricing gap of **$50.4 million**, or **2.9%** of total assets, as of March 31, 2021[188](index=188&type=chunk)[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2021[229](index=229&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[230](index=230&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The report does not disclose any material legal proceedings - No material legal proceedings were reported[233](index=233&type=chunk) [Item 1A. Risk Factors](index=51&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, 2020 - No material changes in risk factors were reported since the last Annual Report on Form 10-K[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The report does not contain information regarding unregistered sales of equity securities or use of proceeds - None reported[234](index=234&type=chunk)