Meridian Bank ( (MRBK) ) has released its Q1 earnings. Here is a breakdown of the information Meridian Bank presented to its investors.
Meridian Corporation, through its wholly owned subsidiary Meridian Bank, operates as a community bank offering a wide range of financial services including business and industrial lending, real estate lending, and wealth management across Pennsylvania, New Jersey, Delaware, and Maryland.
In the first quarter of 2025, Meridian Corporation reported a net income of $2.4 million, a decrease from the previous quarter’s $5.6 million. Despite the dip in net income, the company declared a quarterly dividend of $0.125 per common share, reflecting its commitment to returning value to shareholders.
The quarter saw a notable 30.2% increase in pre-provision net revenue compared to the same period last year, reaching $8.4 million. The bank experienced a 6% growth in deposits, with non-interest-bearing deposits rising significantly by 34%. However, the net income was impacted by increased provisions for credit losses, primarily due to distressed SBA loans affected by rising interest rates.
Meridian’s net interest margin improved to 3.46%, and the bank saw a 3% increase in commercial loans. The wealth management segment also performed well, with pre-tax income of $726 thousand. Conversely, the mortgage segment faced challenges with a larger pre-tax loss due to lower volumes and fewer loan officers.
Looking ahead, Meridian Corporation remains optimistic about its growth prospects, focusing on loan volume expansion and maintaining a strong net interest margin to drive profitability. The company is also poised for growth in its wealth management segment, leveraging its expanded customer base and recent strategic hires.