Meridian (US:MRBK)2025-10-23 18:01Financial Performance - Net income for Q3 2025 was $6.7 million, or $0.58 per diluted share, representing a 19% increase from the prior quarter[4] - Pre-provision net revenue (PPNR) for the quarter was $11.5 million, an improvement of 35% from Q3 2024[4] - Basic earnings per common share increased to $0.59 from $0.50 in the previous quarter[30] - Net income for the three months ended September 30, 2025, was $6,659 million, up from $5,592 million in the previous quarter, marking a 19.1% increase[32] - Basic earnings per common share rose to $0.59 for the three months ended September 30, 2025, compared to $0.50 in the previous quarter, reflecting an increase of 18%[32] - Net income for Q3 2025 rose to $6,659,000, a 40.4% increase from $4,743,000 in Q3 2024[36] - Basic earnings per share for Q3 2025 was $0.59, up from $0.43 in Q3 2024, marking a 37.2% increase[36] Asset and Loan Growth - Total assets as of September 30, 2025, were $2.5 billion, unchanged from June 30, 2025, and up from $2.4 billion a year earlier[4] - Average total loans, excluding residential loans for sale, increased by $33.3 million, driven by commercial and small business loans[11] - Portfolio loans grew by $54.8 million, or 2.6% quarter-over-quarter, driven by increases in commercial & industrial loans (up $14.1 million, or 3.5%) and construction loans (up $29.9 million, or 10.5%) [20] - Total loans and other finance receivables as of September 30, 2025, were $2,162,845,000, up from $2,008,396,000 a year earlier, representing a growth of 7.7%[41] Income and Expenses - Total interest income for the three months ended September 30, 2025, was $43,109 million, an increase from $41,211 million in the previous quarter[32] - Net interest income after provision for credit losses was $20,266 million for the three months ended September 30, 2025, compared to $17,356 million in the previous quarter, reflecting a 11% increase[32] - Total non-interest income decreased by $1.3 million, or 11.8%, quarter-over-quarter, primarily due to a decline in SBA loan income[15] - Total non-interest expense increased by $189 thousand, or 0.9%, to $21.546 million, with salaries and employee benefits rising by $434 thousand, or 3.3%[17] - Non-interest income totaled $9,953 million for the three months ended September 30, 2025, down from $11,288 million in the previous quarter, indicating a decrease of approximately 11.8%[32] - Total non-interest expense increased to $21,546 million for the three months ended September 30, 2025, compared to $21,357 million in the previous quarter, representing a slight increase of 0.9%[32] Credit Quality - The provision for credit losses decreased by $953 thousand to $2.9 million, positively impacted by a $1.7 million decrease in net charge-offs[14] - Non-performing loans increased by $4.8 million to $55.4 million, with the ratio of non-performing loans to total loans rising to 2.53%[23] - Net charge-offs decreased to $1.9 million, or 0.09% of total average loans, compared to 0.17% in the previous quarter[24] - The ratio of allowance for credit losses to total loans held for investment was 1.01%, slightly up from 1.00%[25] - Provision for credit losses decreased to $2,850,000 in Q3 2025 from $2,282,000 in Q3 2024, indicating improved credit quality[36] - The allowance for credit losses (ACL) to loans and other finance receivables was 1.01% as of September 30, 2025, consistent with the previous quarter[41] Equity and Dividends - Total stockholders' equity increased by $10.0 million to $188.0 million, with net income of $6.7 million for the quarter[22] - Total stockholders' equity (GAAP) increased to $188,029 million as of September 30, 2025, up from $178,020 million in June 2025, representing a growth of 5.7%[42] - Total stockholders' equity (GAAP) for the Bank increased to $236,038 million, up from $228,127 million in the previous quarter, representing a growth of 4.0%[42] - The company declared a quarterly cash dividend of $0.125 per common share, payable on November 17, 2025[4] Efficiency and Ratios - The efficiency ratio for the bank segment improved to 59% in Q3 2025 from 68% in Q3 2024, indicating better operational efficiency[36] - The tangible common equity to tangible assets ratio for the Corporation improved to 7.27% in September 2025, compared to 6.96% in June 2025[42] - The tangible common equity to tangible assets ratio for the Bank improved to 9.16% in September 2025, compared to 8.96% in June 2025[42] - Book value per common share increased to $16.33 as of September 30, 2025, up from $15.76 in June 2025, marking a growth of 3.6%[42] - Tangible book value per common share was $16.02, an increase from $15.44 in the previous quarter, indicating a growth of 3.8%[42]