MALVERN, PA — Meridian Corporation (Nasdaq: MRBK) reported third-quarter 2025 net income of $6.7 million, or $0.58 per diluted share, a 19% increase from the prior quarter. The company’s improved performance was driven by higher net interest income and lower credit loss provisions, reflecting ongoing strength in its core banking and lending operations.
Pre-provision net revenue rose to $11.5 million, up 35% year-over-year, while the net interest margin expanded to 3.77%. Return on average assets was 1.04%, and return on average equity reached 14.42%. Total assets stood at $2.5 billion as of September 30, 2025, with commercial loans up $54.2 million from the previous quarter.
“We are pleased to report that Meridian’s third quarter 2025 earnings rose 19% over the prior quarter to $6.7 million, benefiting from an improved margin and continued strong loan growth,” said Christopher J. Annas, Chairman and CEO. “Loan growth in our principal commercial/industrial and real estate segments remains strong, and offsets loan sales in SBA and lease paydowns. We are challenged with elevated nonperforming loans and leases, but working these hard through consistent monitoring.”
Non-interest income totaled $9.95 million, down 11.8% from the prior quarter, largely due to declines in SBA loan income and gains on the sale of mortgage servicing rights. Non-interest expense was stable at $21.5 million.
Asset quality showed mixed results, with non-performing loans increasing to $55.4 million, or 2.53% of total loans, while net charge-offs decreased to $1.9 million, or 0.09% of total average loans. The allowance for credit losses rose slightly to 1.01% of total loans.
The Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable November 17, 2025, to shareholders of record as of November 10, 2025.
Meridian Bank, the company’s wholly owned subsidiary, operates across Pennsylvania, New Jersey, Delaware, and Maryland, offering commercial lending, mortgage services, electronic payments, and wealth management solutions.
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