MRBK · Meridian Corporation

Meridian Corporation's first quarter 2026 results reflect a mixed performance. Net income declined 34% sequentially to $4.7 million, primarily due to a $3.6 million drop in non-interest income and a $712 thousand increase in the provision for credit losses, partially offset by a $1.5 million reduction in non-interest expense. The decline in non-interest income was driven by lower mortgage banking income (down $1.2 million) and a sharp decrease in SBA loan income (down $1.1 million), as SBA loan sales volume fell $14.1 million. On a positive note, pre-provision net revenue (PPNR) improved 21% year-over-year to $10.1 million, highlighting underlying operational strength. Net interest margin expanded to 3.82% from 3.77% in the prior quarter, benefiting from a declining cost of funds (3.04% vs. 3.23% in Q4 2025) as deposit repricing took effect. Management noted that credit costs remained elevated due to charge-offs in SBA and leasing portfolios originated during the low-rate environment of 2020-2021, but expressed confidence in remediation efforts. The company also declared a quarterly dividend of $0.14 per share, consistent with its capital return policy.