MALVERN, PA — Meridian Corporation (Nasdaq: MRBK) reported higher fourth-quarter earnings and raised its quarterly dividend as the community bank capped a year of sharply improved profitability, wider interest margins and continued growth in its core commercial loan book.
The company said net income for the quarter ended December 31, 2025, rose to $7.2 million, or $0.61 per diluted share, up from $6.7 million, or $0.58 per share, in the prior quarter and $5.6 million, or $0.49 per share, a year earlier. For the full year, Meridian earned $21.8 million, or $1.89 per diluted share, a 33.6% increase from $16.3 million, or $1.45 per share, in 2024.
The board declared a quarterly cash dividend of $0.14 per common share, payable February 17, 2026, to shareholders of record as of February 9. The payout represents an increase of $0.015, or 12%, from the $0.125 dividend declared in the prior quarter.
“Meridian’s fourth quarter earnings grew 7.9% over the prior quarter, to $7.2 million. Annual earnings grew 33.6% over 2024 to $21.8 million,” Chairman and CEO Christopher J. Annas said, adding that the company has benefited from improved net interest margin and lower deposit rates.
Meridian reported pre-provision net revenue of $12.6 million in the quarter, up 13% from the year-earlier period. Net interest margin was 3.77% for the fourth quarter, while the loan yield declined to 7.15% and the cost of funds fell to 3.23% from the prior quarter. Return on average assets was 1.10% and return on average equity was 14.79%, the company said.
Net interest income totaled $23.6 million for the quarter, up from $23.1 million in the third quarter and $19.3 million in the fourth quarter of 2024. For the year, net interest income climbed to $87.7 million from $71.0 million in 2024. Meridian booked a provision for credit losses of $3.3 million for the quarter and $15.2 million for the year.
Noninterest income was $10.6 million for the quarter, compared with $13.3 million a year earlier, while noninterest expense totaled $21.7 million, essentially flat with the prior-year quarter. The company’s mortgage banking income was $5.7 million for the quarter and wealth management income was $1.7 million.
Meridian ended the year with total assets of $2.6 billion, compared with $2.5 billion at September 30, 2025, and $2.4 billion at December 31, 2024. Loans, net of fees and costs, totaled $2.17 billion at year-end. Total deposits were $2.16 billion, including $245.4 million in noninterest-bearing deposits.
Commercial loans, excluding leases, increased $35.2 million, or 2%, from the prior quarter, the company said. Annas said the bank has been reallocating toward commercial lending, including through SBA loan sales and a $25 million residential mortgage sale, while continuing to add targeted lending talent.
On credit quality, the company said nonperforming loans decreased $298,000 to $55.1 million at December 31, 2025, and the ratio of nonperforming loans to total loans declined 3 basis points to 2.50%. Net charge-offs rose to $3.5 million, or 0.16% of total average loans, from $1.9 million, or 0.09%, in the prior quarter. The allowance for credit losses was 1.00% of total loans held for investment at year-end.
Meridian Bank, the company’s wholly owned subsidiary, operates 17 offices, including banking branches and mortgage locations, serving Pennsylvania, New Jersey, Delaware, Maryland and Florida. The company said additional information is available at www.meridianbanker.com.
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