MALVERN, PA — Meridian Corporation (Nasdaq: MRBK) recently reported net income of $4.7 million, or $0.39 per diluted share, for the first quarter ended March 31, 2026, as higher net interest margins were offset by declines in noninterest income and elevated credit costs.
Net income increased from $2.4 million, or $0.21 per share, in the same period a year earlier but declined from $7.2 million, or $0.61 per share, in the fourth quarter of 2025.
Pre-provision net revenue rose to $10.1 million, up 21% year over year.
Net interest income totaled $23.2 million, compared with $19.8 million in the prior-year period, while net interest margin improved to 3.82% from 3.46% a year earlier.
Total noninterest income declined to $7.0 million from $7.3 million a year earlier and fell $3.6 million from the prior quarter, driven primarily by lower mortgage banking income and reduced SBA loan sales.
Noninterest expense totaled $20.2 million, down $1.5 million from the fourth quarter, reflecting lower compensation, advertising, and other operating costs.
The provision for credit losses increased to $4.0 million from $3.3 million in the prior quarter, reflecting higher charge-offs and adjustments to reserve factors on certain loan portfolios.
Total assets were $2.6 billion at March 31, 2026, compared with $2.6 billion at year-end 2025 and $2.5 billion a year earlier.
Loans grew $15.0 million, or 0.7%, during the quarter, led by increases in commercial and construction lending, partially offset by declines in commercial mortgage, SBA, and lease financing balances.
Total deposits increased $11.8 million, or 0.5%, from the prior quarter, driven by growth in interest-bearing accounts.
Nonperforming loans rose to $55.7 million from $55.1 million at year-end, while the ratio of nonperforming loans to total loans remained unchanged at 2.50%.
Net charge-offs increased to $3.9 million, or 0.18% of average loans, compared with $3.5 million, or 0.16%, in the prior quarter.
Stockholders’ equity increased to $202.9 million, up $3.2 million from December 31, 2025, supported by net income and other comprehensive income, partially offset by dividend payments.
On April 23, the company declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026, to shareholders of record as of May 4, 2026.
Chief Executive Officer Christopher J. Annas said margin improvement was driven by deposit repricing and balance sheet adjustments, while credit costs reflected charge-offs tied to loans originated during the low-rate period of 2020 and 2021.
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