Meridian Corp (MRBK)

CIK: 0001750735. SIC: 6021 National Commercial Banks. Latest 10-K as of: 2026-03-13.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6021 National Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1750735. Latest filing source: 0001750735-26-000009.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001750735.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001750735.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001750735-26-000050.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-05-11. Report date: 2026-03-31.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis in conjunction with the unaudited consolidated interim financial statements and related notes contained in Part I, Item 1 of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the year ended December 31, 2025 included in Meridian Corporation’s Annual Report on Form 10-K filed with the SEC.

Forward-Looking Statements

Meridian Corporation may from time to time make written or oral “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL, including the timing of third-party appraisals and loan valuations from lead financial institutions in which we are a loan participant; cyber-security concerns; rapid technological developments and changes, including the development and use of artificial intelligence in business processes, services, and products; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the ongoing conflict in the Middle East, which could impact economic conditions in the United States; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements.

Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

Critical Accounting Policies and Estimates

Our critical accounting policies are described in detail in the "Critical Accounting Policies" section within Item 7 of our 2025 Annual Form 10-K. The SEC defines "critical accounting policies" as those that require application of management's most difficult, subjective or

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complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in future periods. Management considers the measurement of the allowance for credit losses to be a critical accounting policy.

Executive Overview

The following items highlight the Corporation’s changes in its financial condition as of March 31, 2026 compared to December 31, 2025 and the results of operations for the three months ended March 31, 2026 compared to the same period in 2025. More detailed information related to these highlights can be found in the sections that follow.

Changes in Financial Condition - March 31, 2026 Compared to December 31, 2025

•Total assets increased $14.6 million, or 0.6%, to $2.6 billion as of March 31, 2026.

•Portfolio loans increased $11.1 million, or 0.5%, to $2.2 billion as of March 31, 2026.

•Mortgage loans held for sale increased $5.2 million, or 15.4%, to $39.0 million as of March 31, 2026.

•Total deposits increased $11.8 million or 0.5% to $2.2 billion as of March 31, 2026.

•The Corporation earned net income of $2.0 million during the three months ended March 31, 2026 and returned $1.7 million of capital to Meridian shareholders during the three months ended March 31, 2026 through a $0.14 dividend per share in the first quarter of the year.

Three Month Results of Operations - March 31, 2026 Compared to March 31, 2025

•Net income was $2.0 million, or $0.17 per diluted share, down $393 thousand, or 16.4%, driven by a higher provision for credit losses, lower non-interest income, and higher non-interest expense, offset somewhat by improved net interest income.

•The return on average assets and return on average equity were 0.32% and 4.02%, respectively, for the first quarter 2026, compared to 0.40% and 5.57%, respectively, for the first quarter 2025.

•Net interest income increased $3.4 million, or 17.3%, to $23.2 million and the net interest margin increased to 3.82% from 3.46%, due to the impact of deposit and borrowing cost declines as well as the increase in average noninterest-bearing deposits over the period.

•The overall provision for credit losses increased $2.3 million when comparing the first quarter 2026 to the first quarter 2025. The increase of $4.9 million in net charge-offs over this period was the driver for the increase in provision for credit losses, and was led by a $3.9 million charge-off taken during the first quarter 2026 on a loan purchase participation from another financial institution.

•Non-interest income decreased $287 thousand, or 3.9%, to $7.0 million driven by a $598 thousand decline in SBA loan income, a decrease of $685 thousand in fair value adjustments related to the mortgage banking segment. These declines in non-interest income were partially offset by a $1.1 million increase in mortgage banking income.

•Non-interest expense increased $1.4 million, or 7.5%, to $20.2 million due to a $1.0 million increase in salaries and employee benefits, and an increase of $494 thousand in data processing and software expense.

Key Performance Ratios

The following table presents key financial performance ratios for the periods indicated:

Three months ended

March 31,

2026

2025

Return on average assets, annualized

0.32 

%

0.40 

%

Return on average equity, annualized

4.02 

%

5.57 

%

Net interest margin (tax effected yield)

3.82 

%

3.46 

%

Basic earnings per share

$

0.17 

$

0.21 

Diluted earnings per share

$

0.17 

$

0.21 

The following table presents certain key period-end balances and ratios at the dates indicated:

(dollars in thousands, except per share amounts)

March 31,

2026

December 31,

2025

Book value per common share

$

16.86 

$

16.89 

Tangible book value per common share (1)

$

16.57 

$

16.59 

Allowance as a percentage of loans and other finance receivables (excluding loans at fair value)

0.98 

%

1.00 

%

Tier I capital to risk weighted assets

8.63 

%

8.68 

%

Tangible common equity to tangible assets ratio (1)

7.65 

%

7.67 

%

Loans and other finance receivables, net of fees and costs

$

2,181,575 

$

2,170,600 

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Total assets

$

2,576,581 

$

2,561,995 

Total stockholders’ equity

$

200,225 

$

199,716 

(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below for Non-GAAP to GAAP reconciliation.

Components of Net Income

Net income is comprised of five major elements:

•Net Interest Income, or the difference between the interest income earned on loans, leases, other finance receivables, and investments and the interest expense paid on deposits and borrowed funds;

•Provision For Credit Losses, or the amount added to the Allowance to provide for current expected credit losses on portfolio loans and other finance receivables;

•Non-interest Income, which is made up primarily of mortgage banking income, wealth management income, SBA loan sale income, fair value adjustments, gains and losses from the sale of loans, gains and losses from the sale of investment securities available for sale and other fees from loan and deposit services;

•Non-interest Expense, which consists primarily of salaries and employee benefits, occupancy, professional fees, advertising & promotion, data processing and software expense, loan expenses, and other operating expenses; and

•Income Taxes, which include state and federal jurisdictions.

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NET INTEREST INCOME

Net interest income is an integral source of the Corporation’s revenue. The tables below present a summary for the three months ended March 31, 2026 and 2025, of the Corporation’s average balances and yields earned on its interest-earning assets and the rates paid on its interest-bearing liabilities. The net interest margin is the net interest income as a percentage of average interest-earning assets. The net interest spread is the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. The difference between the net interest margin and the net interest spread is the result of net free funding sources such as non-interest bearing deposits and stockholders’ equity.

Analyses of Interest Rates and Interest Differential

The table below present the major asset and liability categories on an average daily balance basis for the periods presented, along with interest income, interest expense and key rates and yields on a tax equivalent basis.

For the Three Months Ended March 31,

(dollars in thousands)

2026

2025

Average Balance

Interest Income/ Expense

Yields/ Rates

Average Balance

Interest Income/ Expense

Yields/ Rates

Assets:

Cash and cash equivalents

$

42,349 

$

398 

3.81 

%

$

56,170 

$

613 

4.43 

%

Investment securities - taxable

175,297 

1,847 

4.27 

159,051 

1,693 

4.32

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high. Filing date: 2026-03-13. Report date: 2025-12-31.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is intended to assist in understanding the financial condition and results of operations of Meridian as of and for the year ended December 31, 2025. The information contained in this section should be read together with the December 31, 2025 audited Consolidated Financial Statements and the accompanying Notes included in Item 8. Financial Statements And Supplementary Data of this Form 10-K.

This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.

Critical Accounting Policies and Estimates

Our accounting and reporting policies conform to GAAP and conform to general practices within the industry in which we operate. To prepare financial statements in conformity with GAAP, management makes estimates, assumptions and judgments based on available information. These estimates, assumptions and judgments affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions and judgments are based on information available as of the date of the financial statements and, as this information changes, actual results could differ from the estimates, assumptions and judgments reflected in the financial statements. In particular, management has identified the provision and allowance for credit losses as the accounting policy that, due to the estimates, assumptions and judgments inherent in that policy, is critical in understanding our financial statements. Management has presented the application of this policy to the audit committee of our board of directors.

The following is a discussion of the critical accounting policies and significant estimates that require us to make complex and subjective judgments. Additional information about these policies can be found in Note 1 - Summary of Significant Accounting Policies, to the Corporation’s Consolidated Financial Statements as of and for the years ended December 31, 2025 and 2024.

26

Provision and allowance for credit losses

The ACL is a valuation reserve established and maintained by charges against operating income. It is an estimate of expected credit losses, measured over the contractual life of a loan, that considers historical loss experience, current conditions and forecasts of future economic conditions.

Management’s evaluation process used to determine the appropriateness of the ACL is complex and requires the use of estimates, assumptions and judgments which are inherently subject to high uncertainty. The evaluation process combines several factors: historical loan loss experience, managements ongoing review of lending policies and practices, experience and depth of staff, quality of the loan grading system, the fair value of underlying collateral, concentration of loans to specific borrowers or industries, existing economic conditions and forecasts, segment specific risks and other quantitative and qualitative factors which could affect future credit losses. Our reasonable and supportable forecast is for a period of four quarters. For periods beyond our one-year forecast, we revert to historical loss rates over one quarter. Because current economic conditions and forecasts can change and future events are inherently difficult to predict, the anticipated amount of estimated credit losses on loans and the appropriateness of the ACL could change significantly. It is challenging to estimate how potential changes in any one economic factor or input might affect the overall allowance because a wide variety of factors and inputs may be directionally inconsistent, such that improvement in one factor may offset deterioration in others.

Executive Overview

The following items highlight the Corporation’s changes in its financial condition as of December 31, 2025 compared to December 31, 2024 and the results of operations for the year ended December 31, 2025 compared to the same period in 2024. More detailed information related to these highlights can be found in the sections that follow.

Changes in Financial Condition

•Total assets increased $176.1 million, or 7.4%, to $2.6 billion as of December 31, 2025.

•Portfolio loans, increased $141.4 million, or 7.0%, to $2.2 billion as of December 31, 2025.

Results of Operations

•Consolidated net income increased $5.5 million, or 33.6%, to $21.8 million.

•The return on average assets and return on average equity was 0.87% and 12.00%, respectively, for the year ended December 31, 2025, compared to 0.70% and 9.93%, respectively, for the year ended December 31, 2024.

•Net interest income was up $16.7 million, or 23.5% due to higher volume of earning assets.

•Non-interest income decreased $2.2 million or 5.2% due largely to a decline in MSR sales and a decline in other non-interest income.

Key Performance Ratios

The following table presents key financial performance ratios for the periods indicated:

Year Ended December 31,

2025

2024

Return on average assets

0.87 

%

0.70 

%

Return on average equity

12.00 

%

9.93 

%

Net interest margin (tax effected yield)

3.64 

%

3.16 

%

Basic earnings per share

$

1.93 

$

1.47 

Diluted earnings per share

$

1.89 

$

1.45 

The following table presents certain key period-end balances and ratios at the dates indicated:

(dollars in thousands, except per share amounts)

December 31,

2025

December 31,

2024

Book value per common share

$

16.89 

$

15.26 

Tangible book value per common share (1)

$

16.59 

$

14.93 

Allowance as a percentage of loans and leases held for investment

0.99 

%

0.91 

%

Allowance as a percentage of loans and leases held for investment (excl. loans at fair value) (1)

1.00 

%

0.91 

%

Tier I capital to risk weighted assets - Corporation

8.7 

%

8.1 

%

Tangible common equity to tangible assets ratio (1)

7.7 

%

7.0 

%

Loans and other finance receivables, net of fees and costs

$

2,170,600 

$

2,030,437 

Total assets

$

2,561,995 

$

2,385,867 

Total stockholders’ equity

$

199,716 

$

171,522 

(1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” below for Non-GAAP to GAAP reconciliation.

27

Components of Net Income

Net income is comprised of five major elements:

•Net Interest Income, or the difference between the interest income earned on loans, leases and investments and the interest expense paid on deposits and borrowed funds;

•Provision For Credit Losses, or the amount added to the ACL to provide for current expected credit losses on portfolio loans and leases;

•Non-interest Income, which is made up primarily of mortgage banking income, wealth management income, SBA loan sale income, fair value adjustments, gains and losses from the sale of loans, gains and losses from the sale of investment securities available for sale and other fees from loan and deposit services;

•Non-interest Expense, which consists primarily of salaries and employee benefits, occupancy, professional fees, advertising & promotion, data processing & software, loan expenses, and other operating expenses; and

•Income Taxes, which include state and federal jurisdictions.

NET INTEREST INCOME

Net interest income is an integral source of the Corporation’s income. The tables below present a summary for the years ended December 31, 2025 and 2024, of the Corporation’s average balances and yields earned on its interest-earning assets and the rates paid on its interest-bearing liabilities. The net interest margin is the net interest income as a percentage of average interest-earning assets. The net interest spread is the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. The difference between the net interest margin and the net interest spread is the result of net free funding sources such as non-interest bearing deposits and stockholders’ equity.

Analyses of Interest Rates and Interest Differential

The tables below present the major asset and liability categories on an average daily balance basis for the periods presented, along with interest income, interest expense and key rates and yields on a tax equivalent basis.

For the Year Ended December 31,

(dollars in thousands)

2025

2024

Average Balance

Interest Income/ Expense

Yields/ Rates

Average Balance

Interest Income/ Expense

Yields/ Rates

Assets:

Cash and cash equivalents

$

41,052 

$

1,800 

4.39 

%

$

35,915 

$

1,848 

5.14 

%

Investment securities - taxable

168,172 

7,271 

4.32 

140,602 

5,739 

4.08 

Investment securities - tax exempt (1)

54,525 

1,546 

2.84 

56,698 

1,604 

2.83 

Loans held for sale

29,771 

1,864 

6.26 

34,775 

2,226 

6.40 

Loans held for investment (1)

2,125,591 

154,128 

7.25 

1,986,211 

144,940 

7.30 

Total loans

2,155,362 

155,992 

7.24 

2,020,986 

147,166 

7.28 

Total interest-earning assets

2,419,111 

166,609 

6.89 

%

2,254,201 

156,357 

6.94 

%

Noninterest earning assets

90,199 

95,069 

Total assets

$

2,509,310 

$

2,349,270 

Liabilities and stockholders' equity:

Interest-bearing demand deposits

$

162,107 

$

5,083 

3.14 

%

$

136,387 

$

5,280 

3.87 

%

Money market and savings deposits

965,264 

32,167 

3.33 

810,344 

32,778 

4.04 

Time deposits

734,168 

30,919 

4.21 

748,417 

35,979 

4.81 

Total interest - bearing deposits

1,861,539 

68,169 

3.66 

1,695,148 

74,037 

4.37 

Borrowings

129,796 

6,204 

4.78 

159,483 

7,878 

4.94 

Subordinated debentures

49,789 

4,263 

8.56 

49,892 

3,116 

6.25 

Total interest-bearing liabilities

2,041,124 

78,636 

3.85 

1,904,523 

85,031 

4.46 

Noninterest-bearing deposits

250,999 

241,990 

Other noninterest-bearing liabilities

35,204 

38,121 

Total liabilities

2,327,327 

2,184,634 

Total stockholders' equity

181,983 

164,636 

Total stockholders' equity and liabilities

$

2,509,310 

$

2,349,270 

Net interest income and spread (1)

$

87,973 

3.04 

$

71,326 

2.48 

Net interest margin (1)

3.64 

%

3.16 

%

(1)Yields and net interest income are reflected on a tax-equivalent basis.

28

Rate/Volume Analysis

The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the year ended December 31, 2025 as compared to the year ended December 31, 2024, allocated by rate and volume. Changes in interest income and/or expense attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.

2025 Compared to 2024

(dollars in thousands)

Rate

Volume

Total

Interest income:

Cash and cash equivalents

$

(292)

$

244 

$

(48)

Investment securities - taxable

355 

1,177 

1,532 

Investment securities - tax exempt (1)

4 

(62)

(58)

Loans held for sale

(48)

(314)

(362)

Loans held for investment (1)

(924)

10,112 

9,188 

Total loans

(972)

9,798 

8,826 

Total interest income

$

(905)

$

11,157 

$

10,252 

Interest expense:

Interest-bearing demand deposits

$

(1,098)

$

901 

$

(197)

Money market and savings deposits

(6,303)

5,692 

(611)

Time deposits

(4,386)

(674)

(5,060)

Total interest - bearing deposits

(11,787)

5,919 

(5,868)

Borrowings

(248)

(1,426)

(1,674)

Subordinated debentures

1,153 

(6)

1,147 

Total interest expense

(10,882)

4,487 

(6,395)

Interest differential

$

9,977 

$

6,670 

$

16,647 

(1)Yields and net interest income are reflected on a tax-equivalent basis.

Interest income increased $10.3 million on a tax equivalent basis, year over year, due to a higher level of average earning assets, which increased by $164.9 million, offset somewhat by a lower yield on earning assets, which decreased 5 basis points. Average total loans held for investment increased $139.4 million, most notably in commercial real estate and construction, commercial loans and small business loans, which increased $160.7 million on average, combined. Home equity loans and residential real estate loans held in portfolio increased $14.4 million on average, combined. Residential loans for sale decreased $5.0 million on average. The average yield on loans held for investment decreased 5 basis points while the yield on cash and investments increased 9 basis points in total, reflecting the impact on rates caused by the Federal Reserve’s monetary policy.

Interest expense decreased $6.4 million, year over year, due primarily to market interest rate declines, partially offset by an increase of $166.4 million in average interest bearing deposits. Interest expense on deposits decreased $5.9 million with the cost of interest-bearing deposits having decreased 71 basis points to 3.66%. Total cost of deposits decreased 59 basis points reflecting an increase of $9.0 million in average non-interest bearing deposits. Interest expense on borrowings decreased $1.7 million as the cost decreased 16 basis points, and total average borrowings balances decreased $29.7 million.

Net interest margin increased 48 basis points to 3.64% for the year ended December 31, 2025 from 3.16% for the year ended December 31, 2024, as the increase in the volume of interest earning assets outpaced the volume increase in interest-bearing liabilities, while the decline in yield on earnings assets was outpaced by the decline in costs of funds, impacted also by the $9.0 million increase in average non-interest bearing deposits.

PROVISION FOR CREDIT LOSSES

The provision for credit losses was $15.2 million for the year ended December 31, 2025, compared to a $11.4 million provision for the year ended December 31, 2024, an increase of $3.8 million. The overall provision for credit losses is comprised of provisioning for funded loans as well as unfunded loan commitments. The increase in provision for funded loans of $3.4 million for the year ended December 31, 2025 was the result of an increase in net charge-offs on construction and small business loans and the resulting increase in specific reserves as nonperforming loans increased $9.9 million, largely small business loans. The increase in provision was also impacted by an upgrade to the third-party macroeconomic forecast model used to estimate credit losses on the loan portfolio. The model upgrade was based on re-assessing the current macroeconomic variable relationships to expected results. The overall impact to the ACL from the model upgrade, before applying qualitative adjustments, was not considered material.

29

NON-INTEREST INCOME

The following table presents the components of non-interest income for the periods indicated:

Year Ended December 31,

(Dollars in thousands)

2025

2024

$ Change

% Change

Mortgage banking income

$

20,783 

$

21,044 

$

(261)

(1.2)

%

Wealth management income

6,316 

5,735 

581 

10.1 

%

SBA loan income

5,452 

3,458 

1,994 

57.7 

%

Earnings on investment in life insurance

956 

868 

88 

10.1 

%

Net gain on sale of MSRs

403 

3,992 

(3,589)

(89.9)

%

Net (loss) gain on sale of loans

(434)

15 

(449)

(2993.3)

%

Net change in the fair value of derivative instruments

373 

30 

343 

1143.3 

%

Net change in the fair value of loans held-for-sale

310 

(25)

335 

(1340.0)

%

Net change in the fair value of loans held-for-investment

659 

214 

445 

207.9 

%

Net (loss) on hedging activity

(151)

(87)

(64)

73.6 

%

Net gain (loss) on sale of investments AFS

501 

(57)

558 

(978.9)

%

Other

4,012 

6,152 

(2,140)

(34.8)

%

Total non-interest income

$

39,180 

$

41,339 

$

(2,159)

(5.2)

%

Total non-interest income decreased $2.2 million, or 5.2%, from the year-ended December 31, 2024 to the year-end December 31, 2025. Year over year there was a $2.0 million increase in SBA loan sale income, an increase in wealth management revenue of $581 thousand, as well as an increase of $1.1 million overall in changes in fair values. SBA loan sale income increased due to an increase of $38.3 million, or 64.4%, in the volume of loans sold in 2025 to $97.8 million compared to 2024. The gross margin on SBA sales in 2025 was 7.1% overall, compared to 8.0% for 2024 sales. The $581 thousand increase in wealth management revenue was due to increased assets under management and better market conditions in general year over year. The $1.1 million increase in the changes in fair values was due to a $343 thousand increase in the fair value of derivative instruments, a $335 thousand increase in fair value of loans held-for-sale, and a $445 thousand increase in the fair value of loans held-for-investment.

Offsetting these increases in non-interest income was a $3.6 million decrease in the net gain on sale of MSRs, a decline in net gains on sale of non-SBA related loans, and a decline on other non-interest income. For the year-ended December 31, 2024 a gain of $4.0 million was recorded on the sale of $6.6 million in residential loan servicing rights, while for the year-ended December 31, 2025 there were sales of $979 thousand in residential loan servicing rights. The sale of non-SBA loans resulted in a net loss of $434 thousand for the year-ended December 31, 2025, compared to a net gain of $15 thousand for the year-ended December 31, 2024. These sales included a $25.0 million portion of the residential mortgage portfolio that was sold at the end of 2025 and a $440 thousand sale of a commercial loan in the third quarter of 2025. Other non-interest income decreased $1.8 million due to smaller decreases in several miscellaneous income types.

NON-INTEREST EXPENSE

The following table presents the components of non-interest expense for the periods indicated:

Year Ended December 31,

(Dollars in thousands)

2025

2024

$ Change

% Change

Salaries and employee benefits

$

51,280 

$

47,268 

$

4,012 

8.5 

%

Occupancy and equipment

4,576 

5,976 

(1,400)

(23.4)

%

Professional fees

4,095 

4,767 

(672)

(14.1)

%

Data processing and software

7,031 

6,144 

887 

14.4 

%

Advertising and promotion

3,877 

3,293 

584 

17.7 

%

Pennsylvania bank shares tax

1,016 

972

44

4.5 

%

Other

11,429 

10,729 

700 

6.5 

%

Total non-interest expense

$

83,304 

$

79,149 

$

4,155 

5.2 

%

Total non-interest expense increased $4.2 million, or 5.2% to $83.3 million for the year ended December 31, 2025. The main drivers of this increase were salaries and employee benefits which increased $4.0 million, data processing and software expense increased $887 thousand, advertising and promotion expense increased $584 thousand, and other non-interest expense increased by $700 thousand.

Salaries and employee benefits increased $4.0 million due to the rising costs of benefits and headcount being up for the bank and wealth segments, leading to a nearly $2.5 million increase in salaries and related benefits and taxes. There was also a nearly $1.5 million increase in incentive related expenses due to increased profitability in the current year. Data processing and software expense increased $887 thousand due an increase in customer transaction volume and a continued investment in new and innovative technology to improve back-office and customer facing systems. Advertising and promotion expense increased $584 thousand as the result of a television and digital advertising campaign that ran during 2025, combined with a higher level of charitable donations and

30

business development activities during the year. Other expense increased $700 thousand due to an increase in OREO expenses related to the $2.3 million increase in the OREO balance year-over-year as 4 properties were added to this balance in 2025, combined with an increase in employee related expenses and certain loan expenses.

Partially offsetting these increases was a decrease of $1.4 million in occupancy and equipment expense and a decrease in professional fees. Occupancy expense decreased year-over-year largely due to costs incurred in 2024 for the early termination of leases. Professional fees decreased $672 thousand largely due to savings realized from a change in an internal audit outsourcing and tax accounting relationships, as well as legal costs related to the mortgage segment from 2024.

INCOME TAX EXPENSE

The following table presents income tax expense and related metrics for the periods indicated:

Year Ended December 31,

(Dollars in thousands)

2025

2024

$ Change

% Change

Income before income taxes

$

28,402 

$

21,786 

$

6,616 

30.4 

%

Income tax expense

$

6,566 

$

5,440 

$

1,126 

20.7 

%

Effective tax rate

23.12 

%

24.97 

%

(1.85)

%

(7.4)

%

While income tax expense increased primarily due to the increase in income before income taxes, the effective tax rate decreased related to the impact of solar tax credits purchased at the end of 2025. The effective tax rate reflects the recognition of certain tax benefits in the financial statements including those benefits from tax-exempt interest income, federal low-income housing tax credits, and excess tax benefits from recognized stock compensation. These tax benefits are offset by the tax effect of stock-based compensation expense related to incentive stock options and a provision for state income tax expense.

We frequently analyze our projections of taxable income and make adjustments to our provision for income taxes accordingly.

Balance Sheet Summary

Assets

As of December 31, 2025, total assets were $2.6 billion which increased $176.1 million, or 7.4%, from December 31, 2024. This growth in assets over the prior period was due primarily to loan portfolio growth, as detailed in the following section.

Loans

Our loan portfolio is the largest category of our interest-earning assets. As of December 31, 2025 and 2024, our total loans and other finance receivables amounted to $2.2 billion, and $2.1 billion, respectively. Our loan portfolio is comprised of loans originated to be held in portfolio, as well as residential mortgage loans originated for sale. Meridian engages in the origination of residential mortgages, most typically for 1-4 family dwellings, with the intention of the Corporation to principally sell substantially all of these loans in the secondary market to qualified investors. Our loans held in portfolio are originated by our commercial and consumer loan divisions. We have a strong credit culture that promotes diversity of lending products with a focus on commercial businesses. We have no particular credit concentration. Our commercial loans have been proactively managed in an effort to achieve a balanced portfolio with no unusual exposure to one industry.

The following table presents our loans and other finance receivables portfolio at the dates indicated:

(Dollars in thousands)

December 31,

2025

December 31,

2024

$ Change

% Change

Mortgage loans held for sale

$

33,762 

$

32,413 

$

1,349 

4.2 

%

Real estate loans:

     Commercial mortgage

879,440 

823,976 

55,464 

6.7 

%

     Home equity lines and loans

107,002 

90,721 

16,281 

17.9 

%

     Residential mortgage

236,135 

252,565 

(16,430)

(6.5)

%

     Construction

330,543 

259,553 

70,990 

27.4 

%

          Total real estate loans

1,553,120 

1,426,815 

126,305 

8.9 

%

Commercial, industrial & other finance receivables

428,981 

367,366 

61,615 

16.8 

%

Small business loans

139,765 

155,775 

(16,010)

(10.3)

%

Consumer

329 

349 

(20)

(5.7)

%

Leases, net

45,489 

75,987 

(30,498)

(40.1)

%

          Loans and other finance receivables

$

2,167,684 

$

2,026,292 

$

141,392 

7.0 

%

          Total loans and other finance receivables

$

2,201,446 

$

2,058,705 

$

142,741 

6.9 

%

Portfolio loans increased $141.4 million, or 7.0% to $2.2 billion as of December 31, 2025, from $2.0 billion as of December 31, 2024.

31

The following table shows the amounts of loans and other finance receivables outstanding as of December 31, 2025 which, based on remaining scheduled repayments of principal, are due in the periods indicated:

(dollars in thousands)

12 months or Less

1 - 5 years

5 - 15 years

After 15 years

Total

Commercial mortgage

$

66,313

$

333,463

$

475,815

$

3,849

$

879,440

Home equity lines and loans

1,995

2,909

99,546

2,552

107,002

Residential mortgage

229

1,895

1,245

232,766

236,135

Construction

137,048

100,366

91,886

1,243

330,543

Commercial, industrial & other finance receivables

58,321

144,833

76,162

149,665

428,981

Small business loans

432

11,368

86,583

41,382

139,765

Consumer

17

92

216

4

329

Leases, net

5,235

39,084

1,170

—

45,489

          Loans and other finance receivables

$

269,590

$

634,010

$

832,623

$

431,461

$

2,167,684

The amounts have been classified according to sensitivity to changes in interest rates as of December 31, 2025. Variance rate loans are those loans with floating or adjustable interest rates.

(dollars in thousands)

Fixed Rate

Variable Rate

Total

Commercial mortgage

$

180,806

$

698,634

$

879,440

Home equity lines and loans

5,320

101,682

107,002

Residential mortgage

58,720

177,415

236,135

Construction

11,010

319,533

330,543

Commercial, industrial & other finance receivables

62,811

366,170

428,981

Small business loans

5,429

134,336

139,765

Consumer

259

70

329

Leases, net

45,489

—

45,489

          Loans and other finance receivables

$

369,844

$

1,797,840

$

2,167,684

Commercial real estate loans. Our commercial real estate loans are secured by real estate that is both owner-occupied and investor owned. Owner-occupied commercial real estate loans generally involve less risk than an investment property and are distinctly reported from non-owner occupied commercial real estate loans for measuring loan concentrations for regulatory purposes. Our owner-occupied commercial real estate loans are originated and managed within our commercial loan department and amounted to $335 million at December 31, 2025. The remaining commercial real estate loans are managed by our commercial real estate department which offer the following commercial real estate products:

•Permanent – Investor Real Estate Loans

•Purchase and refinance loan opportunities for a number of product types, including single-family rentals, multi-family residential as well as tenanted income producing properties in a variety of real estate types, including office, retail, industrial, and flex space

•Construction Loans

•Residential construction loans to finance new construction and renovation of single and 1-4 family homes located within our market area

•Commercial construction loans for investment properties, generally with semi-permanent attributes

•Construction loans for new, expanded or renovated operations for our owner occupied business clients

•Land Development Loans

•Meridian considers a limited number of strictly land development oriented loans based upon the risk, merit of the future project and strength of the borrower/guarantor relationship

Our commercial real estate loans increased by $55.5 million, or 6.7%, to $879.4 million at December 31, 2025 from $824.0 million at December 31, 2024. Our commercial real estate loan portfolio represented 39.9% and 40.0% of our total loan portfolio at December 31, 2025 and 2024, respectively. Construction loans increased $71.0 million, or 27.4%, to $330.5 million at December 31, 2025 from $259.6 million at December 31, 2024. Construction loans represented 15.0% and 12.6% of our total loan portfolio at December 31, 2025 and 2024, respectively.

Commercial and Industrial Loans (C & I) and Other Finance Receivables

We provide a variety of variable and fixed rate commercial business loans, lines of credit and other financing facilities. These credit facilities are made to small and medium-sized manufacturers and wholesale, retail and service-related businesses. Additionally, we lend to companies in the technology, healthcare, real estate and financial service industries. Commercial business loans generally include lines of credit and term loans with a maturity of five years or less. Other finance receivables include advances to merchants for short-term cash flow needs. The primary source of repayment for commercial credit is generally operating cash flows of the business and may also include collateralization of inventory, accounts receivable, equipment and/or personal guarantees. Our C & I loans increased $61.6 million, or 16.8%, to $429.0 million at December 31, 2025 from $367.4 million at December 31, 2024. C & I loans overall represented 19.5% and 17.8% of our total loan portfolio at December 31, 2025 and 2024, respectively.

32

Our 10 largest C & I relationships represented 11% of our C & I portfolio and 5% of the total loan portfolio at December 31, 2025. The average loan size outstanding in C & I portfolio, excluding leases, was $403 thousand at December 31, 2025 and the weighted average risk rating of the C & I portfolio is pass, based on our credit rating scale of 1 through 9, where ratings 1 through 5 are considered pass.

Small Business Loans

We provide financing to small businesses in various industries that include guarantees under the Small Business Administration’s (SBA’s) loan programs. Our small business loans decreased by $16.0 million, or 10.3%, to $139.8 million at December 31, 2025 from $155.8 million at December 31, 2024, due to an increase in sale of such loans during 2025. During 2025 we sold $97.8 million in SBA loans, an increase of $38.3 million, or 64.4%, from $59.4 million in SBA loans sold in 2024. The small business loans portfolio represented 6.3% and 7.6% of our total loan portfolio at December 31, 2025 and 2024, respectively.

Consumer and Personal Loans

Our consumer-lending department principally originates residential mortgage and home equity based products for our clients and prospects. These loans typically fund completely at closing. Additional products include smaller dollar personal loans and our student loan refinance product, designed to provide additional flexibility in repayment terms desired in the marketplace. Home equity lines and loans increased $16.3 million, or 17.9%, to $107.0 million at December 31, 2025 from $90.7 million at December 31, 2024, while residential mortgage loans decreased by $16.4 million, or 6.5%, to $236.1 million at December 31, 2025 from $252.6 million at December 31, 2024. Overall the total consumer loan portfolio represented 15.6% and 16.7% of our total loan portfolio at December 31, 2025 and 2024, respectively.

Leases, net

Meridian Equipment Finance specializes in small ticket equipment leases for small and mid-sized businesses nationally and through a broad range of industries. Leases decreased $30.5 million, or 40.1% to $45.5 million at December 31, 2025 as we continue to shift focus to commercial relationship lending.

Investments

Our securities portfolio is used to make various term investments, maintain a source of liquidity and serve as collateral for certain types of deposits and borrowings. We manage our investment portfolio according to written investment policies approved by our board of directors. Investments in our securities portfolio may change over time based on our funding needs and interest rate risk management objectives. Our liquidity levels take into account anticipated future cash flows and other available sources of funds and are maintained at levels that we believe are appropriate to provide the necessary flexibility to meet our anticipated funding requirements.

As of December 31, 2025 our available-for-sale investment portfolio had a fair value of $193.5 million, with an effective tax equivalent yield of 3.84% and an estimated duration of approximately 3.7 years. The largest category of this investment portfolio, or 45.7%, consists of U.S. agency securities, along with 20.7% in municipal securities, and 8.4% in U.S. Treasury securities. The remainder of our available-for-sale securities portfolio is invested in other securities. We regularly evaluate the composition of our investment portfolio as the interest rate yield curve changes and may sell investment securities from time to time to adjust our exposure to interest rates or to provide liquidity to meet loan demand. Not included in the tables below are equity investments that had fair values of $2.2 million and $2.1 million, as of December 31, 2025 and 2024, respectively. As of December 31, 2025 we also had a held-to-maturity investment portfolio with amortized cost of $32.5 million.

The following table presents the amortized cost and fair value of securities at the dates indicated:

December 31, 2025

(dollars in thousands)

Amortized cost

Gross unrealized gains

Gross unrealized losses

Allowance for credit losses

Fair value

# of Securities in unrealized loss position

Securities available-for-sale:

U.S. asset backed securities

$

26,385 

$

51 

$

(219)

$

— 

$

26,217 

13

U.S. government agency MBS

22,396 

223 

(268)

— 

22,351 

6

U.S. government agency CMO

67,216 

441 

(1,526)

— 

66,131 

38

State and municipal securities

43,282 

151 

(3,401)

— 

40,032 

31

U.S. Treasuries

17,039 

— 

(833)

— 

16,206 

16

Non-U.S. government agency CMO

8,786 

27 

(207)

— 

8,606 

9

Corporate bonds

14,023 

266 

(375)

— 

13,914 

11

Total securities available-for-sale

$

199,127 

$

1,159 

$

(6,829)

$

— 

$

193,457 

124

33

Amortized cost

Gross unrecognized gains

Gross unrecognized losses

Allowance for credit losses

Fair value

# of Securities in unrecognized loss position

State and municipal securities

Total securities held-to-maturity

$

32,544 

$

22 

$

(2,414)

$

— 

$

30,152 

19

$

32,544 

$

22 

$

(2,414)

$

— 

$

30,152 

19

December 31, 2024

(dollars in thousands)

Amortized cost

Gross unrealized gains

Gross unrealized losses

Allowance for credit losses

Fair value

# of Securities in unrealized loss position

Securities available-for-sale:

U.S. asset backed securities

$

29,931 

$

73 

$

(160)

$

— 

$

29,844 

12

U.S. government agency MBS

21,392 

96 

(617)

— 

20,871 

14

U.S. government agency CMO

48,051 

23 

(2,461)

— 

45,613 

42

State and municipal securities

40,854 

1 

(4,159)

— 

36,696 

31

U.S. Treasuries

17,039 

— 

(1,589)

— 

15,450 

16

Non-U.S. government agency CMO

12,082 

59 

(412)

— 

11,729 

9

Corporate bonds

14,415 

448 

(762)

— 

14,101 

15

Total securities available-for-sale

$

183,764 

$

700 

$

(10,160)

$

— 

$

174,304 

139

Amortized cost

Gross unrecognized gains

Gross unrecognized losses

Allowance for credit losses

Fair value

# of Securities in unrecognized loss position

Securities held to maturity:

State and municipal securities

$

33,771 

$

7 

$

(3,286)

$

— 

$

30,492 

19

Total securities held-to-maturity

$

33,771 

$

7 

$

(3,286)

$

— 

$

30,492 

19

Asset Quality Summary

The ratio of non-performing assets to total assets increased to 2.38% as of December 31, 2025, from 1.90% as of December 31, 2024. There was $3.6 million and $159 thousand in other real estate property, as well as $2.4 million and $117 thousand of repossessed assets, included in non-performing assets as of December 31, 2025 and 2024, respectively. The balance in OREO as of December 31, 2025 consisted of 4 well secured commercial properties, while the balance as of December 31, 2024 related to a well secured residential property. The balance in repossessed assets as of December 31, 2025 consisted of a billboard asset from a commercial loan relationship and repossessed equipment that collateralized leases, while the balance as of December 31, 2024 related solely to repossessed equipment.

The ratio of non-performing loans to total loans increased to 2.50% as of December 31, 2025, from 2.19% as of December 31, 2024. Total non-performing loans were $55.1 million and $45.1 million as of December 31, 2025 and December 31, 2024, respectively. The increase in non-performing loans over the period was due to increases in non-performing small business loans, residential mortgage loans, and commercial mortgage loans of $12.5 million, $2.5 million, and $1.7 million, respectively, partially offset by a decrease of $5.2 million in non-performing commercial loans due to the charge-off of a few commercial loans. Included in non-performing small business loans as of December 31, 2025 and December 31, 2024, are $13.2 million and $6.5 million in SBA guarantees, respectively. Non-performing loans, net of the SBA guaranteed portion, as a percent of total loans were 1.90% and 1.87% as of December 31, 2025, and 2024, respectively.

Meridian realized net charge-offs of $11.9 million, or 0.55%, of total average loans for the year ended December 31, 2025, compared to net charge-offs of $15.8 million, or 0.78%, of total average loans for the year ended December 31, 2024. A majority of net charge-offs for the year ended December 31, 2025 were from small business loans of $5.0 million, commercial loans of $2.4 million, finance receivables of $2.2 million, and equipment leases of $1.5 million. The ratio of allowance for credit losses to total loans held for investment, excluding loans at fair value (a non-GAAP measure, see reconciliation in the Appendix), was 1.00% as of December 31, 2025 compared to 0.91% as of December 31, 2024. The increase in coverage ratio was driven by several factors including: reserving for the year over year increase in non-performing loans and an increase in the baseline loss rates used in the ACL calculation for portfolios that drove the increase in non-performing loans, combined with an increase in qualitative reserve factors year-over-year.

As of December 31, 2025 there were specific reserves of $3.4 million against individually evaluated loans, an increase from $2.7 million as of December 31, 2024. The drivers of the increase related to a $1.2 million increase in SBA loan specific reserves, partially offset with a $524 thousand decline in specific reserves on commercial loans.

34

The Corporation is proactive with its loan review process that utilizes the engagement of an independent outside loan review firm, which helps identify developing credit issues. Proactive steps that are taken include the procurement of additional collateral (preferably outside the current loan structure) whenever possible and frequent contact with the borrower. The Corporation believes that timely identification of credit issues and appropriate actions early in the process serve to mitigate overall risk of loss.

The following table presents nonperforming assets and related ratios for the periods indicated:

(dollars in thousands)

December 31,

2025

December 31,

2024

Non-performing assets:

Nonaccrual loans:

Real estate loans:

Commercial mortgage

$

2,472 

$

809 

Home equity lines and loans

2,023 

1,716 

Residential mortgage

10,385 

7,900 

Construction

6,650 

8,613 

Total real estate loans

21,530 

19,038 

Commercial, industrial & other finance receivables

6,770 

11,966 

Small business loans (1)

24,781 

12,270 

Leases

1,979 

1,851 

Total nonaccrual loans

55,060 

45,125 

Other real estate owned

3,592 

159 

Repossessed assets

2,405 

117 

Total non-performing assets

$

61,057 

$

45,401 

Asset quality ratios:

Non-performing assets to total assets

2.38 

%

1.90 

%

Non-performing loans to:

Total loans and other finance receivables

2.54 

%

2.22 

%

Total loans and other finance receivables (excluding loans at fair value) (2)

2.55 

%

2.24 

%

Allowance for credit losses to:

Total loans and other finance receivables

0.99 

%

0.91 

%

Total loans and other finance receivables (excluding loans at fair value) (2)

1.00 

%

0.91 

%

Non-performing loans

39.18 

%

40.86 

%

Total loans and leases

$

2,204,362 

$

2,062,850 

Total loans and other finance receivables

2,170,600 

2,030,437 

Total loans and other finance receivables (excluding loans at fair value)

2,156,204 

2,015,936 

Allowance for credit losses

21,573 

18,438 

(1) Included in non-performing small business loans as of December 31, 2025, and 2024, respectively, are $13.2 million and $6.5 million in SBA guarantees.

(2) The allowance for credit losses to total loans held-for-investment (excluding loans at fair value) ratio is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.

Allowance for Credit Losses

The following is a summary of the allocation of the allowance for credit losses by loan category for the periods presented.

(dollars in thousands)

December 31,

2025

% of Loan Type to Total Loans

December 31,

2024

% of Loan Type to Total Loans

Commercial mortgage

$

3,676

41%

$

3,469

41%

Home equity lines and loans

1,162

5%

1,147

4%

Residential mortgage

926

11%

1,021

12%

Construction

2,067

15%

923

13%

Commercial, industrial & other finance receivables

2,982

20%

3,098

18%

Small business loans

9,321

6%

6,304

8%

Leases

1,439

2%

2,476

4%

Total

$

21,573

100%

$

18,438

100%

35

The following table provides information on net (charge-offs) and recoveries by loan category for the years ended:

December 31, 2025

December 31, 2024

Home equity lines and loans

$

6 

$

(56)

Residential mortgage

2 

13

Construction

(738)

—

Commercial, industrial & other finance receivables

(4,632)

(6,304)

Small business loans

(4,951)

(4,164)

Consumer

(7)

(1)

Leases

(1,538)

(5,324)

Total Net Charge-offs

$

(11,858)

$

(15,836)

Deposits

The following table presents the major categories of deposits at the dates indicated:

(Dollars in thousands)

December 31,

2025

December 31,

2024

$ Change

% Change

Noninterest-bearing deposits

$

245,377 

$

240,858 

$

4,519 

1.9 

%

Interest-bearing deposits:

Interest-bearing demand deposits

157,360 

141,439 

15,921 

11.3 

%

Money market and savings deposits

1,023,290 

913,536 

109,754 

12.0 

%

Time deposits

732,101 

709,535 

22,566 

3.2 

%

Total interest-bearing deposits

1,912,751 

1,764,510 

148,241 

8.4 

%

Total deposits

$

2,158,128 

$

2,005,368 

$

152,760 

7.6 

%

Total deposits were $2.2 billion as of December 31, 2025, up $152.8 million, or 7.6%, from December 31, 2024. Non-interest bearing deposits increased $4.5 million, or 1.9%, from December 31, 2024. Interest-bearing demand deposits increased $15.9 million, or 11.3%, from December 31, 2024, while money market accounts and savings deposits increased $109.8 million, or 12.0%, during the period. Business accounts comprised 52% of all deposits, consumer accounts and municipal deposits comprised 14% and 12%, respectively, and wholesale funding was approximately 22%. Wholesale funding supports loan growth as business accounts from lending relationships tend to lag and wholesale funding can easily be managed through term.

Time deposits of $250 thousand or more had remaining maturities as follows:

Year Ended

December 31, 2025

(Dollars in thousands)

Amount

%

3 months or less

$

144,428

27.6%

Over 3 months through 6 months

133,151

25.5%

Over 6 months through 12 months

182,904

35.0%

Over 12 months

62,185

11.9%

Total

$

522,668

100.0%

Equity

Consolidated stockholders’ equity of the Corporation was $199.7 million, or 7.8% of total assets as of December 31, 2025 as compared to $171.5 million, or 7.2% of total assets as of December 31, 2024. The increase in stockholders’ equity is the result of net income for the year ended December 31, 2025 of $21.8 million, net proceeds from the sale of common stock of $7.5 million, comprehensive income of $2.9 million, and $596 thousand in stock-based compensation and stock options exercised, partially offset by dividends paid of $5.7 million, and an increase of $425 thousand in ESOP leverage.

On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a 100% stock dividend, payable March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split effective February 28, 2023.

36

Non-GAAP Financial Measures

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate performance trends and the adequacy of common equity. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The tables below provides the non-GAAP reconciliation for the Corporation’s pre-provision net revenue.

Year Ended

(dollars in thousands)

December 31,

2025

December 31,

2024

Income before income tax expense

$

28,402 

$

21,786 

Provision for credit losses

15,152 

11,400 

Pre-provision net revenue

$

43,554 

$

33,186 

Year Ended

(dollars in thousands)

December 31,

2025

December 31,

2024

Bank

$

40,140 

$

26,698 

Wealth

2,337 

2,375 

Mortgage

1,077 

4,113 

Pre-provision net revenue

$

43,554 

$

33,186 

The table below provides the non-GAAP reconciliation for the Corporation’s tangible common equity ratio and tangible book value per common share.

(dollars in thousands)

December 31,

2025

December 31,

2024

Total stockholders' equity (GAAP)

$

199,716 

$

171,522 

Less: Goodwill and intangible assets

(3,462)

(3,666)

Tangible common equity (non-GAAP)

$

196,254 

$

167,856 

Total assets (GAAP)

2,561,995 

2,385,867 

Less: Goodwill and intangible assets

(3,462)

(3,666)

Tangible assets (non-GAAP)

$

2,558,533 

$

2,382,201 

Stockholders' equity to total assets (GAAP)

7.80 

%

7.19 

%

Tangible common equity to tangible assets (non-GAAP)

7.67 

%

7.05 

%

Shares outstanding

11,826 

11,240 

Book value per share (GAAP)

$

16.89 

$

15.26 

Tangible book value per share (non-GAAP)

$

16.59 

$

14.93 

The following is a reconciliation of the allowance for credit losses to loans and other finance receivables ratio at December 31, 2025. This is considered a non-GAAP measure as the calculation excludes the impact of loans held for investment that are fair valued as these loan types are not included in the allowance for credit losses calculation.

(dollars in thousands)

December 31,

2025

December 31,

2024

Allowance for credit losses (GAAP)

$

21,573 

$

18,438 

Loans and other finance receivables (GAAP)

2,170,600 

2,030,437 

Less: Loans at fair value

(14,396)

(14,501)

Loans and other finance receivables, excluding loans at fair value (non-GAAP)

$

2,156,204 

$

2,015,936 

ACL to loans and other finance receivables (GAAP)

0.99 

%

0.91 

%

ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)

1.00 

%

0.91 

%

37

Liquidity

Management maintains liquidity to meet depositors’ needs for funds, to satisfy or fund loan commitments, and for other operating purposes. Meridian’s foundation for liquidity is a stable and loyal customer deposit base, cash and cash equivalents, and a marketable investment portfolio that provides periodic cash flow through regular maturities and amortization or that can be used as collateral to secure funding. In addition, as part of its liquidity management, Meridian maintains a portion of commercial loan assets that are comprised of SNCs, which have a national market and can be sold in a timely manner. Meridian’s available liquidity, which totaled $346.3 million at December 31, 2025, compared to $315.8 million at December 31, 2024, includes investments, SNCs, Federal funds sold, mortgages held-for-sale and cash and cash equivalents, less the amount of securities required to be pledged for certain liabilities. Meridian also anticipates scheduled payments and prepayments on its loan and mortgage-backed securities portfolios.

In addition, Meridian maintains borrowing arrangements with various correspondent banks, the FHLB and the FRB to meet short-term liquidity needs. Through its relationship at the FRB, Meridian had available credit of approximately $4.2 million at December 31, 2025. At December 31, 2025, Meridian had $0 in borrowings from the Federal Reserve. As a member of the FHLB, we are eligible to borrow up to a specific credit limit, which is determined by the amount of our residential mortgages, commercial mortgages and other loans that have been pledged as collateral. As of December 31, 2025, Meridian’s maximum borrowing capacity with the FHLB was $751.5 million. At December 31, 2025, Meridian had borrowed $115.8 million and the FHLB had issued letters of credit, on Meridian’s behalf, totaling $178.6 million against its available credit lines. At December 31, 2025, Meridian also had available $56.0 million of unsecured federal funds lines of credit with other financial institutions as well as $306.8 million of available short or long term funding through the CDARS program and brokered CD arrangements. Management believes that Meridian has adequate resources to meet its short-term and long-term funding requirements.

Loan Commitments

At December 31, 2025, Meridian had $651.3 million in unfunded loan commitments. Management anticipates these commitments will be funded by means of normal cash flows. Certificates of deposit greater than or equal to $250 thousand scheduled to mature in one year or less from December 31, 2025 totaled $460.5 million. Management believes that the majority of such deposits will be reinvested with Meridian and that certificates that are not renewed will be funded by a reduction in cash and cash equivalents or by pay-downs and maturities of loans and investments. At December 31, 2025, Meridian had a reserve for unfunded loan commitments of $976 thousand.

Capital Resources

Meridian meets the definition of “well capitalized” for regulatory purposes on December 31, 2025. Our capital category is determined for the purposes of applying the bank regulators’ “prompt corrective action” regulations and for determining levels of deposit insurance assessments and may not constitute an accurate representation of Meridian’s overall financial condition or prospects.

Under federal banking laws and regulations, Meridian is required to maintain minimum capital as determined by certain regulatory ratios. Capital adequacy for regulatory purposes, and the capital category assigned to an institution by its regulators, may be determinative of an institution’s overall financial condition. Under the final capital rules that became effective as of January 1, 2019, a capital conservation buffer is fully phased in at 2.5%.

Community banks have long raised concerns with bank regulators about the regulatory burden, complexity, and costs associated with certain provisions of the Basel III Rule. In response, Congress provided an “off-ramp” for institutions, like us, with total consolidated assets of less than $10 billion. Section 201 of the Regulatory Relief Act instructed the federal banking regulators to establish a single CBLR of between 8 and 10%. The Bank adopted this framework in 2020. Under the final rule, a community banking organization is eligible to elect the new framework if it has: less than $10 billion in total consolidated assets, limited amounts of certain assets and off-balance sheet exposures, and a CBLR greater than 9%. The Bank’s CBLR was 9.50% and 9.21% as of December 31, 2025 and 2024, respectively, but reports all ratios for comparative purposes.

Tables presenting the Bank’s capital amounts and ratios as of December 31, 2025 and 2024 are included in Note 18 - Regulatory Matters.