Meridian (US:MRBK)2025-11-07 13:58Financial Performance - Net income for the three months ended September 30, 2025, was $6,659 thousand, a 40.5% increase compared to $4,743 thousand for the same period in 2024[14]. - Basic earnings per common share for the three months ended September 30, 2025, was $0.59, up from $0.43 for the same period in 2024, representing a growth of 37.2%[14]. - Total comprehensive income for the three months ended September 30, 2025, was $8,265,000, compared to $6,065,000 in 2024, reflecting an increase of 36.3%[16]. - For the nine months ended September 30, 2025, net income reached $14,650,000, up from $10,745,000 in 2024, indicating a growth of 36.5%[16]. - Income before income taxes for the three months ended September 30, 2025, was $8,673, a significant increase from $6,245 in the same period of 2024, representing a 39.0% growth[146]. Asset and Liability Growth - Total assets increased to $2,541,130 thousand as of September 30, 2025, up from $2,385,867 thousand at December 31, 2024, representing a growth of 6.5%[12]. - Total liabilities increased to $2,353,101 thousand as of September 30, 2025, compared to $2,214,345 thousand at December 31, 2024, reflecting a growth of 6.3%[12]. - Total stockholders' equity rose to $188,029 thousand as of September 30, 2025, compared to $171,522 thousand at December 31, 2024, indicating a growth of 9.6%[12]. - Total deposits increased to $2,131,116 thousand as of September 30, 2025, up from $2,005,368 thousand at December 31, 2024, reflecting a growth of 6.3%[12]. Credit Losses and Provisions - Provision for credit losses for the nine months ended September 30, 2025, was $11,865 thousand, compared to $7,828 thousand for the same period in 2024, indicating a 51.9% increase[14]. - The allowance for credit losses increased to $21,794 thousand as of September 30, 2025, from $18,438 thousand at December 31, 2024, an increase of 12.8%[12]. - The total allowance for credit losses (ACL) as of September 30, 2025, was $21,794 thousand, reflecting a provision for credit losses of $2,850 thousand during the quarter[63]. - The total charge-offs for credit losses amounted to $9,236 thousand, with recoveries of $524 thousand during the reporting period[66]. Non-Interest Income and Expenses - Non-interest income totaled $9,953 thousand for the three months ended September 30, 2025, slightly down from $10,831 thousand for the same period in 2024, a decrease of 8.1%[14]. - Non-interest expense for the nine months ended September 30, 2025, totaled $61,646, an increase of 6.5% from $57,738 in the same period of 2024[147]. - The bank's mortgage banking income for the three months ended September 30, 2025, was $5,914, a decrease of 8.7% from $6,474 in the same period of 2024[146]. - Wealth management income for the three months ended September 30, 2025, was $1,610, an increase from $1,447 in the same period of 2024, reflecting an 11.3% growth[146]. Loan and Securities Performance - The total loans and other finance receivables increased to $2,159,261,000 as of September 30, 2025, up from $2,026,292,000 at December 31, 2024, representing a growth of approximately 6.55%[46]. - Total securities available-for-sale amounted to $194,268,000 as of September 30, 2025, with an allowance for credit losses of $7,781,000[37]. - The total fair value of held-to-maturity securities was $29,853,000, with an unrealized loss of $2,746,000[37]. - The total unrealized losses on available-for-sale securities decreased from $10,160,000 as of December 31, 2024, to $7,781,000 as of September 30, 2025, indicating an improvement in the portfolio[40]. Cash Flow and Investments - The company reported a net cash provided by operating activities of $30,476,000 for the nine months ended September 30, 2025, compared to $10,301,000 in 2024, marking a significant increase of 195.5%[21]. - The net cash used in investing activities for the nine months ended September 30, 2025, was $155,822,000, slightly down from $156,309,000 in 2024[21]. - The cash and cash equivalents at the end of the period on September 30, 2025, were $39,989,000, up from $32,347,000 in 2024[22]. Borrowings and Capital Management - Total short-term borrowings increased to $126.671 million as of September 30, 2025, compared to $98.632 million as of December 31, 2024[90]. - The Corporation has a maximum borrowing capacity with the FHLB of $746.0 million as of September 30, 2025, up from $699.3 million as of December 31, 2024[92]. - The Corporation's long-term borrowings decreased to $10.594 million as of September 30, 2025, from $25.839 million as of December 31, 2024[91]. Modifications and Foreclosures - The total number of modifications granted to borrowers experiencing financial difficulty increased to 44 in the nine months ended September 30, 2025, from 14 in the same period of 2024, marking a 214% increase[85]. - The company reported a total of 9 consumer mortgage loans in foreclosure proceedings as of September 30, 2025, with a total value of $2.5 million[54]. - The company foreclosed on a commercial real estate property valued at $1.3 million and repossessed a billboard asset valued at $2.4 million during the nine months ended September 30, 2025[55].