Core Insights - Meridian Corporation reported a net income of $2.4 million for Q1 2025, a decrease from $2.7 million in Q1 2024, while pre-provision net revenue (PPNR) increased by 30.2% to $8.4 million [1][2][5] - The company faced challenges due to higher provisioning related to distressed SBA loans, impacted by rising interest rates, but showed improvement in net interest margin, which reached 3.46% [2][5][6] Financial Performance - Net income for Q1 2025 was $2.4 million, or $0.21 per diluted share, down from $5.6 million, or $0.49 per diluted share in Q4 2024 [1][5][31] - PPNR increased by $1.9 million, or 30.2%, compared to Q1 2024 [5][31] - Total assets grew to $2.5 billion, a 6.0% increase from $2.4 billion at the end of Q4 2024 [18][21] Loan and Deposit Growth - Loan growth was annualized at 12%, with commercial loans increasing by $49.5 million, or 3% for the quarter [3][19] - Total deposits increased by $123.4 million, or 6.2%, with non-interest-bearing deposits rising by $82.6 million, or 34% [20][21] Non-Interest Income and Expenses - Total non-interest income decreased by $6.0 million, or 44.8%, primarily due to a lack of gains on the sale of mortgage servicing rights (MSRs) [15][16] - Non-interest expenses decreased by $2.7 million, or 12.5%, driven by reductions in salaries and employee benefits, occupancy costs, and professional fees [17][32] Asset Quality - Non-performing loans increased by $7.1 million to $52.2 million, with a ratio of non-performing loans to total loans rising to 2.49% [22][23] - The provision for credit losses increased to $5.2 million, reflecting the rise in non-performing loans [14][31] Wealth Management Performance - Meridian Wealth Partners reported pre-tax income of $726 thousand for the quarter, supported by a slight increase in assets under management [4]
Meridian Corporation Reports First Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share