Meridian (US:MRBK)2026-01-29 18:35Financial Performance - Meridian Corporation reported a net income of $7.2 million for Q4 2025, an increase of $527 thousand or 7.9% from the previous quarter[2]. - Diluted earnings per share for Q4 2025 were $0.61, up from $0.58 in Q3 2025 and $0.49 in Q4 2024[5]. - Pre-provision net revenue (PPNR) for Q4 2025 was $12.6 million, an improvement of $1.4 million or 13% year-over-year[5]. - Net income for the three months ended December 31, 2025, was $7,186 million, an increase of 8% from $6,659 million in the previous quarter[31]. - Basic earnings per common share rose to $0.62, up from $0.59 in the prior quarter, reflecting a 5% increase[33]. - Total interest income for the quarter was $42,826 million, compared to $43,109 million in the previous quarter, a decrease of 1%[33]. - Net interest income after provision for credit losses was $20,340 million, slightly up from $20,266 million in the previous quarter[33]. - Non-interest income totaled $10,615 million, an increase from $9,953 million in the previous quarter, representing a growth of 7%[33]. - The efficiency ratio improved to 63.25%, down from 65.15% in the previous quarter, indicating better cost management[31]. - Return on average assets increased to 1.10%, up from 1.04% in the previous quarter[31]. Asset and Equity Growth - Total assets increased to $2.6 billion as of December 31, 2025, compared to $2.5 billion at September 30, 2025, and $2.4 billion at December 31, 2024[5]. - Total stockholders' equity increased by $10.1 million to $198.1 million, driven by net income of $7.2 million and a net increase of $7.5 million from stock issuance[23]. - Total assets increased by $19.3 million, or 0.8%, to $2.6 billion as of December 31, 2025[20]. - Total deposits reached $2,158,128 million, up from $2,131,116 million in the previous quarter, indicating a growth of 1.3%[35]. - Total stockholders' equity (GAAP) reached $198,141,000 as of December 31, 2025, compared to $171,522,000 on December 31, 2024, a growth of 15.5%[43]. - Total assets (GAAP) were $2,560,420,000 as of December 31, 2025, an increase from $2,385,867,000 a year earlier, representing a 7.3% growth[43]. Loan and Deposit Activity - Commercial loans, excluding leases, increased by $35.2 million or 2% from the prior quarter[5]. - Portfolio loans grew by $8.4 million, or 0.4% quarter-over-quarter, driven by increases in commercial & industrial loans and construction loans[21]. - Total deposits increased by $27.0 million, or 1.3% quarter-over-quarter, led by a $21.2 million increase in interest-bearing deposits[22]. - SBA loan income decreased by $146 thousand, with the volume of SBA loans sold down by $4.5 million to $20.8 million for the quarter ended December 31, 2025[17]. Credit Quality and Loss Provisions - The provision for credit losses increased by $437 thousand to $3.3 million in Q4 2025, primarily due to a rise in net charge-offs[15]. - Non-performing loans decreased by $298 thousand to $55.1 million, with the ratio of non-performing loans to total loans decreasing to 2.50%[24]. - Net charge-offs increased to $3.5 million, or 0.16% of total average loans for the quarter ended December 31, 2025[25]. - The ratio of allowance for credit losses to total loans held for investment was 1.00%, slightly down from 1.01% as of September 30, 2025[26]. - Provision for credit losses was $3,287 million for the quarter, an increase from $2,850 million in the previous quarter, reflecting a rise of 15.4%[37]. - The allowance for credit losses (GAAP) as of December 31, 2025, was $21,573,000, an increase from $18,438,000 on December 31, 2024, reflecting a 16.5% rise[42]. Strategic Initiatives - The company has focused on strategic acquisitions in 2025 to leverage market opportunities and enhance growth in 2026[5]. - The wealth management segment generated pre-tax income of $2.3 million, with assets under management growing by 7.8%[4].