Fri, May 9, 8:59 PM (44 days ago)
**Meridian Corporation (MRBK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $39.2 million (up 5.5% YoY) - **Net Income:** $2.4 million (down 10.4% YoY) - **Earnings per Share (EPS):** $0.21 (down from $0.24 YoY) - **Return on Assets (ROA):** 0.40% (down from 0.47% YoY) - **Return on Equity (ROE):** 5.57% (down from 6.73% YoY) - **Net Interest Margin:** 3.46% (up from 3.09% YoY) **Profit Margins:** - **Net Interest Income:** $19.8 million (up 19.1% YoY) - **Provision for Credit Losses:** $5.2 million (up from $2.9 million YoY) - **Non-Interest Income:** $7.3 million (down 8.3% YoY) - **Non-Interest Expense:** $18.7 million (up 3.1% YoY) **Cash Flow:** - **Net Cash Provided by Operating Activities:** $18.1 million (up from -$1.7 million YoY) - **Net Cash Used in Investing Activities:** -$51.8 million (up from -$78.7 million YoY) - **Net Cash Provided by Financing Activities:** $137.5 million (up from $46.8 million YoY) **Earnings Changes:** - **Net Income:** Down $0.3 million QoQ - **EPS:** Down $0.03 QoQ **Quarterly Performance Discussion:** - **Asset Growth:** Total assets increased by $143.0 million (6.0%) to $2.5 billion. - **Loan Growth:** Portfolio loans increased by $42.0 million (2.1%) to $2.0 billion. - **Deposit Growth:** Total deposits increased by $123.4 million (6.2%) to $2.1 billion. - **Capital:** Stockholders' equity increased to $173.6 million (6.9% of total assets). **Trends and Uncertainties:** - **Interest Rate Environment:** Favorable volume changes contributed to interest income, offset by rate changes. - **Credit Quality:** Increase in non-performing loans and charge-offs led to a higher provision for credit losses. - **Economic Uncertainty:** Unfavorable changes in macro-economic factors impacted the provision for credit losses. **Future Operations Impact:** - **Loan Growth:** Continued focus on commercial real estate, construction, and SBA loans. - **Deposit Strategy:** Emphasis on non-interest-bearing deposits and relationship-based accounts. - **Risk Management:** Proactive loan review process and timely identification of credit issues. **Segment Performance:** - **Banking Segment:** Income before tax of $3.6 million (up from $3.5 million YoY). - **Wealth Management Segment:** Income before tax of $726 thousand (up from $478 thousand YoY). - **Mortgage Banking Segment:** Losses before tax of $1.2 million (up from $465 thousand YoY). **Conclusion:** Meridian Corporation's Q1 2025 shows a mixed performance with increased assets and loans but a decline in net income and EPS. The company faces challenges in the credit quality and economic uncertainty but remains focused on loan growth, deposit strategy, and risk management.