Highlights

  • Net income of USD 5.6 million, up 133% from Q1 2025
  • Diluted earnings per share rose to USD 0.49 from USD 0.21
  • Pre-provision net revenue grew 57% year-over-year to USD 11.1 million
  • Net interest margin increased to 3.54%
  • Quarterly cash dividend of USD 0.125 per share declared, payable August 18, 2025

Meridian Corporation has reported net income of USD 5.6 million for the second quarter of 2025, marking a significant increase from USD 2.4 million in the prior quarter. Diluted earnings per share rose to USD 0.49, compared to USD 0.21 in Q1 2025 and USD 0.30 in the second quarter of the prior year.

About the company: Meridian Bank, a wholly owned subsidiary of Meridian Corporation, provides banking and wealth services across Pennsylvania, New Jersey, Delaware, and Maryland. The bank operates 17 locations and focuses on business lending, real estate finance, electronic payments, and high-yield deposit offerings.

Second quarter performance was driven by higher net interest income, reduced credit loss provisioning, and increased non-interest income. Pre-provision net revenue rose to USD 11.1 million, from USD 8.4 million in Q1 2025 and USD 7.1 million in the same period a year earlier. The bank’s net interest margin expanded 8 basis points to 3.54%, supported by a 5.9% increase in total interest income and a modest 3.4% rise in interest expenses.

CEO Christopher J. Annas noted the gains were fueled by improving loan margins, SBA loan sales, and seasonal mortgage volume. He added, “PPNR was up 33% over the same period, reflecting overall healthy growth in our business units and good expense control.”

Total assets were USD 2.51 billion as of June 30, 2025, largely unchanged from March 31, 2025. Loan balances grew 1.7% quarter-over-quarter, led by commercial and industrial lending. SBA loan balances declined due to higher sales volumes, which contributed to a 165.8% increase in SBA loan income over the prior quarter. Mortgage banking income also rose sharply, up 69.8% as origination volumes increased by 42.9%.

Meridian Wealth Partners posted pre-tax income of USD 604 thousand for the quarter. The company highlighted continued efforts to expand this segment by hiring senior managers and leveraging cross-selling opportunities from its lending teams.

While total deposits declined slightly by 0.9%, this was attributed to the expected withdrawal of a temporary USD 103 million deposit. Excluding that impact, interest-bearing deposits increased, driven by growth in time and demand deposits.

Non-performing loans declined to USD 50.5 million, from USD 52.2 million at the end of Q1 2025. This improvement was aided by the transfer of certain repossessed assets to OREO, although some new SBA loans entered non-performing status. The ratio of non-performing loans to total loans improved to 2.35% from 2.49% in the prior quarter.

Net charge-offs rose to USD 3.6 million, primarily due to SBA and lease-related losses. The allowance for credit losses remained stable at 1.00% of total loans held for investment.

The company’s Board of Directors declared a quarterly dividend of USD 0.125 per share, payable August 18, 2025, to shareholders on record as of August 11, 2025.