Page 1

MeridianCorporation Meridian Corporation Reports 2Q 2021 Net Income of $ 8.3 Million , or $ 1.33 Per Diluted Share and Declares Quarterly Cash Dividend of $ 0.125 Per Share . MALVERN , Pa . , July 26 , 2021 ― Meridian Corporation ( Nasdaq : MRBK ) today reported : ( Dollars in thousands , except per share data ) Income : 2021 2nd QTR 2021 1st QTR 2020 4th QTR 2020 2020 3rd QTR 2nd QTR Net income $ 8,258 $ Diluted earnings per common share $ 1.33 $ Pre - tax , pre - provision income ( 1 ) $ 10,898 $ Pre - tax , pre - provision income - Bank ( 1 ) $ 7,811 $ 10,170 $ 1.65 $ 13,905 $ 7,891 $ 8,997 $ 9,212 $ 5,713 1.48 13,040 $ 6,294 $ $ 1.51 $ 0.94 15,941 $ 9,034 6,531 $ 4,908 ( 1 ) See Non - GAAP reconciliation in the Appendix Christopher J. Annas , Chairman and CEO commented “ Meridian achieved strong quarterly earnings , generating revenues of $ 39.2 million and earning $ 8.3 million or $ 1.33 per diluted share . Annualized ROE and ROA were 22.61 % and 1.92 % , respectively . The bank segment contributed 72 % of the consolidated pre - tax pre - provision income , and commercial loan growth ( excluding PPP loans and loans held for sale ) was 17 % annualized , as new additions to our lending staff coupled with market disruption produced strong results . " Mr. Annas added , “ In the current quarter we achieved record levels of SBA net loan sales revenue of $ 1.5 million and wealth management revenue of $ 1.2 million . The mortgage segment added $ 19.5 million in revenue with $ 2.7 million in pre - tax income as the originations shift from refinancing to purchase loans . This mortgage revenue number is down from 2Q2020 , affected by a lack of homes for sale and a slower refinance rate . We manage the business for profitability , not scale , and see similar market conditions for the rest of 2021. " Income Statement Highlights Second quarter 2021 compared with first quarter 2021 : • Net income was $ 8.3 million , a decrease of $ 1.9 million , or 18.8 % , driven by a lower level of non - interest income . • • • The return on average equity ( " ROE " ) and return on average assets ( “ ROA ” ) were 22.61 % and 1.92 % , respectively , for the second quarter 2021 , compared to 30.06 % and 2.43 % , respectively , for the first quarter 2021 . Net interest income increased $ 292 thousand or 1.9 % , driven by quarter over quarter increases in interest income on small business loans , commercial real estate loans and leases , combined with a $ 226 thousand decrease in interest expense . Non - interest income decreased $ 5.3 million or 19.7 % , driven by a $ 4.6 million , or 19.2 % decline in mortgage banking net revenue , reflecting a decline of 15 % in mortgage loan originations which is consistent with the market . Partially offsetting this decline was record revenue for : ○ о SBA net loan sale revenue was $ 1.5 million , up $ 245 thousand , or 19.7 % , as the volume of SBA 7 ( a ) loan sales increased from the prior quarter . Wealth management revenue was $ 1.2 million , up $ 27 thousand , or 2.4 % , due to assets under management that grew to $ 1 billion for the first time in Meridian Wealth Partners ' history . Provision for loan losses was $ 96 thousand compared to the first quarter 2021 provision for loan losses of $ 599 thousand , a decline of 84.0 % . Non - interest expenses decreased $ 2.0 million , or 7.1 % , driven by a decrease in salaries and benefits , largely related to variable compensation in the mortgage segment . 1