Financial Performance - Net income for Q4 2024 was $5.6 million, or $0.49 per diluted share, representing an 18.1% increase from Q3 2024[2] - For the full year 2024, net income increased 23.4% to $16.3 million, or $1.45 per diluted share[2] - Pre-tax, pre-provision income for Q4 2024 was $11.2 million, and $33.2 million for the full year[4] - Basic earnings per common share rose to $0.50 for the quarter, compared to $0.43 in the prior quarter[32] - Income before income tax expense for the three months ended December 31, 2024, was $7,596,000, compared to $6,245,000 for the previous quarter, representing an increase of 21.7%[40] Loan and Deposit Growth - Loan growth for 2024 was 12%, with commercial loans increasing by $177.1 million year over year[3] - Total deposits grew by $181.9 million, or 10%, year over year, with a quarterly increase of $26.4 million, or 1%[4] - Total deposits reached $2,005,368 million, up from $1,978,927 million in the previous quarter, marking an increase of 1.8%[34] - Portfolio loan growth was $22.8 million, or 1.1% quarter-over-quarter, with commercial mortgage loans increasing by $23.0 million, or 2.9%[19] Non-Interest Income and Expenses - Total non-interest income rose by $2.4 million, or 22.6%, quarter-over-quarter, totaling $13.3 million, driven by a $4.0 million gain on the sale of mortgage servicing rights[16] - Non-interest income for the quarter was $13,280 million, significantly higher than $10,831 million in the previous quarter, representing a growth of 22.5%[36] - Total non-interest expense was $21,411 million, up from $20,546 million in the prior quarter[32] Credit Quality and Provisions - The overall provision for credit losses for Q4 increased by $1.3 million to $3.6 million, up from $2.3 million in Q3[15] - Net charge-offs increased to $7.1 million for Q4, representing 0.34% of total average loans, up from 0.11% in Q3[23] - The ratio of allowance for credit losses to total loans held for investment decreased to 0.91% from 1.10% in the prior quarter[24] - Provision for credit losses increased to $3,572 million in Q4 2024 from $2,282 million in Q3 2024, indicating a rise of 56.5%[36] Equity and Capital Ratios - Total stockholders' equity increased by $4.1 million to $171.5 million, supported by net income of $5.6 million and dividends paid of $1.4 million[21] - Total stockholders' equity (GAAP) increased to $171,522,000 as of December 31, 2024, compared to $167,450,000 as of September 30, 2024, reflecting a growth of 1.3%[43] - Book value per common share increased to $15.26 from $14.91 in the previous quarter[30] - Tangible common equity to tangible assets ratio (non-GAAP) improved to 7.05% as of December 31, 2024, from 6.87% as of September 30, 2024[43] Operational Efficiency - The efficiency ratio improved to 65.72% from 70.67% in the previous quarter[30] - The efficiency ratio improved to 66% in Q4 2024 from 70% in Q3 2024, indicating better cost management[36] Regulatory and Operational Concerns - Regulatory costs are a concern for the company, with hopes for reduced burdens under the new administration[6] - Occupancy and equipment expenses rose by $1.0 million, primarily due to costs associated with the early termination of a lease[17]
Meridian (MRBK) - 2024 Q4 - Annual Results