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Meridian Corporation Reports Net Income of $2.0 Million, or $0.31 Per Diluted Share, in 2Q 2019


MALVERN, Pa., July 29, 2019 /PRNewswire/ -- Meridian Corporation (MRBK) today reported net income increased 12.2% to $2.0 million, or $0.31 per diluted share for the second quarter of 2019, compared to $1.8 million, or $0.28 per diluted share, in the second quarter of 2018, generating a return on average assets and return on average equity of 0.81% and 7.14%, respectively, for the current quarter.  Pretax income for the second quarter of 2019 was reduced by $665 thousand for a class action litigation settlement. This $665 thousand decrease in pretax income reduced second quarter 2019 net income by $517 thousand, or $0.08 per basic and diluted share.

In the first six months of 2019, Meridian's net income increased 31.1% to $4.0 million, or $0.63 per diluted share, compared to $3.1 million, or $0.48 per diluted share, in the first six months of 2018.

"Meridian's second quarter operating results were highlighted by strong loan and core deposit growth and solid net interest income, reflecting earning asset expansion and a relatively stable net interest margin," said Christopher J. Annas, Chairman and CEO. "Loan balances were 13% higher and deposit balances grew 23% at the end of the second quarter compared to a year ago, contributing to our higher profitability. 

"Our SBA lending team that joined Meridian in late 2018 is doing outstanding work serving the entrepreneurs in our markets.  We have the right team in place and are optimistic about this new loan segment and its potential for growth.

"The markets we serve in Pennsylvania, Delaware and New Jersey continue to demonstrate strong economic growth.  This growth, along with the consolidation we are seeing in the banking industry, continues to present opportunities for us to gain market share."


Select Condensed Financial Information



For the Quarter Ended (Unaudited)



2019


2019


2018


2018


2018

(Dollars in thousands, except per share data)


June 30


March 31


December 31


September 30


June 30

Income:
















Net income - consolidated


$

2,022


$

2,006


$

2,364


$

2,727


$

1,802

Basic earnings per common share


$

0.32


$

0.31


$

0.37


$

0.43


$

0.28

Diluted earnings per common share


$

0.31


$

0.31


$

0.37


$

0.42


$

0.28

Net income - excluding Mortgage



2,203



1,969



1,826



1,973



1,701

Net income - Mortgage



(181)



37



538



754



101

Net interest income - consolidated



8,922



8,477



8,441



8,378



8,146




At the Quarter Ended (Unaudited)



2019


2019


2018


2018


2018



June 30


March 31


December 31


September 30


June 30

Balance Sheet:
















Total assets


$

1,055,906


$

1,027,514


$

997,480


$

959,921


$

945,527

Loans, net of fees and costs



885,172



862,372



838,106



806,788



781,622

Total deposits



840,714



810,713



752,130



781,927



683,250

Non-interest bearing deposits



127,158



115,464



126,150



124,855



106,942




Quarterly



2019


2019


2018


2018


2018



June 30


March 31


December 31


September 30


June 30

Performance Ratios:
















Return on average assets - consolidated



0.81%



0.83%



0.99%



1.16%



0.81%

Return on average equity - consolidated



7.14%



7.32%



8.66%



10.19%



7.02%


Reconciliation of 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.

Meridian believes adjusted net income, adjusted earnings per common share, adjusted ROAA and adjusted ROAE provide a greater understanding of ongoing operations and enhances comparability of results with prior periods. Because management believes that these adjustments are not incurred as a result of ongoing operations, they are not as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast. This supplemental presentation should not be construed as an inference that Meridian's future results will be unaffected by similar adjustments to these measures determined in accordance with GAAP.



Adjusted Net Income and Earnings per Share (Unaudited)



2019


2019


2018


2018


2018

(Dollars in thousands, except per share data)


2nd QTR


1st QTR


4th QTR


3rd QTR


2nd QTR

Net income - consolidated


$

2,022


$

2,006


$

2,364


$

2,727


$

1,802

Litigation settlement adjustment, net of tax



517



97







156

Holding company formation cost adjustment, net of tax









179



Contingent asset fair value adjustment, net of tax









138



Adjusted net income - consolidated(1)



2,539



2,103



2,364



3,044



1,958

















Net income - excluding Mortgage



2,203



1,969



1,826



1,973



1,701

Adjusted net income - excluding Mortgage(1)



2,720



2,066



1,826



2,290



1,857

















Net income per common share, diluted


$

0.31


$

0.31


$

0.37


$

0.42


$

0.28

Litigation settlement adjustment, net of tax



0.08



0.02







0.02

Holding company formation cost adjustment, net of tax









0.03



Contingent asset fair value adjustment, net of tax









0.02



Adjusted diluted earnings per share(1)


$

0.39


$

0.33


$

0.37


$

0.47


$

0.30

Adjusted diluted earnings per share- excluding Mortgage(1)


$

0.42


$

0.32


$

0.28


$

0.36


$

0.29





Adjusted Return Ratios (Unaudited)



2019


2019


2018


2018


2018



2nd QTR


1st QTR


4th QTR


3rd QTR


2nd QTR

Return on average assets - consolidated



0.81%



0.83%



0.99%



1.16%



0.81%

Adjusted return on average assets - consolidated(1)



1.02%



0.87%



0.99%



1.29%



0.88%

Return on average equity - consolidated



7.14%



7.32%



8.66%



10.19%



7.02%

Adjusted return on average equity - consolidated(1)



8.96%



7.67%



8.66%



11.34%



7.63%

















Return on average assets - excluding Mortgage



0.90%



0.83%



0.79%



0.87%



0.79%

Adjusted return on average assets - excluding Mortgage(1)



1.11%



0.88%



0.79%



0.97%



0.87%

Return on average equity - excluding Mortgage



7.78%



7.18%



6.69%



7.37%



6.63%

Adjusted return on average equity - excluding Mortgage(1)



9.60%



7.54%



6.69%



8.53%



7.24%












(1)

Adjusted net income, adjusted earnings per common share, adjusted ROAA and adjusted ROAE are non-GAAP measures and remove the tax effect of the charges to earnings for the settlement of outstanding litigation of $3148 thousand (second quarter of 2019), $28 thousand (first quarter of 2019), and $44 thousand (second quarter of 2018), respectively, as well as for the holding company formation costs of $51 thousand, and the fair value adjustment to contingent assets of $39 thousand in the third quarter of 2018.

Financial Highlights

  • Net income for the three and six months ended June 30, 2019 was $2.0 million and $4.0 million, respectively, increases of $220 thousand or 12.2% and $1.0 million or 31.1% as compared to net income for the same periods in 2018.
  • Total assets of $1.1 billion as of June 30, 2019 increased $58.4 million, or 5.9% year-to-date and $110.4 million or 11.7% year-over-year.
  • Total portfolio loans and leases of $885.2 million as of June 30, 2019 increased $47.1 million, or 5.6% year-to-date and $103.6 million or 13.2% year-over-year.
  • Total deposits of $840.7 million as of June 30, 2019 increased $88.6 million, or 11.8% year-to-date and $157.5 million or 23.0% year-over-year.
  • Non-interest bearing deposits of $127.2 million as of June 30, 2019 increased $1.0 million, or 0.8% year-to-date and $20.2 million or 18.9% year-over-year.
  • Net interest income increased $776 thousand or 9.5% and $1.6 million or 9.9% for the three and six months ended June 30, 2019 over the same periods in 2018.

Income Statement Summary

Net income was $2.0 million, or $0.31 per diluted share for the three months ended June 30, 2019 compared to net income of $1.8 million, or $0.28 per diluted share, for the same period in 2018. The increase was largely attributable to an increase in net interest income of $776 thousand, in addition to a lower level of provision for loan losses due to net recoveries recorded in the current quarter. Non-interest income for the three months ended June 30, 2019 decreased $740 thousand. Net income was $4.0 million, or $0.63 per diluted share for the six months ended June 30, 2019 compared to $3.1 million, or $0.48 per diluted share, for the same period in 2018.

Net interest income increased $776 thousand, or 9.5%, to $8.9 million for the three months ended June 30, 2019, from $8.2 million for the same period in 2018. Net interest income increased $1.6 million, or 9.9%, to $17.4 million for the six months ended June 30, 2019, from $15.8 million for the same period in 2018. The growth in interest income for the three months ended June 30, 2019 compared to the same period in 2018 reflects an increase in average interest earning assets of $120.5 million. The growth in interest income for the six months ended June 30, 2019 compared to the same period in 2018 reflects an increase in average interest earning assets of $129.2 million.  Increases over both periods were partially offset by the decrease in the net interest margin. The net interest margin was 3.72%, and 3.69%, for the three and six months ended June 30, 2019, respectively, compared to 3.88% and 3.89% for the same periods in 2018. The decrease in net interest margin reflects pressure from the rising cost of funds, which has outpaced the favorable trend in yield on interest earning assets during the quarter and six month periods.

The provision for loan losses decreased $399 thousand to $14 thousand and $734 thousand to $233 thousand for the three and six months ended June 30, 2019, respectively.  The allowance was largely funded by net recoveries of $339 thousand for the six months ended June 30, 2019 compared to net charge-offs of $227 thousand for the same period in 2018.

Total non-interest income for the three months ended June 30, 2019 was $7.9 million, down $740 thousand, or 8.5%, from the comparable period in 2018. Total non-interest income for the six months ended June 30, 2019 was $14.4 million, down $1.3 million, or 8.6%, from the comparable period in 2018. These overall decreases in non-interest income came primarily from our mortgage division.  Also affecting non-interest income, wealth management revenue was down $76 thousand for the three months ended June 30, 2019 compared to the same period in 2018 and $290 thousand for the six months ended June 30, 2019 compared to the same period in 2018.  Fee income for both periods reflected market value changes in assets under management, which decreased correspondingly to changes in the stock market.  These decreases in non-interest income were partially offset by $515 thousand in gains recognized on the sale of SBA loans, as well as $139 thousand in gain on sale of securities, all in the three months ended June 30, 2019. There were no SBA loan sales or sales of securities in the prior year comparable periods. The new SBA lending team, brought on late in 2018, originated $12 million in SBA loans during the first six months of 2019.

Mortgage banking revenue, for the three and six months ended June 30, 2019, was $6.3 million, down $991 thousand, or 13.6%, and $11.2 million, down $904 thousand or 7.5%, from the comparable periods in 2018. These declines in mortgage banking revenue were due primarily to a decline in mortgage originations year over year, despite an increase in the margin on loan sales of 72 basis points and 48 basis points for the three and six months, respectively, due in part to rising interest rates year over year. The net change in fair value of mortgage banking related financial instruments increased $400 thousand for the six months ended June 30, 2019, compared to the same period in 2018. Additionally, realized gains on derivatives related to mortgage banking, included in other non-interest income, decreased $222 thousand for the three months ended June 30, 2019 to a loss of $218 thousand, compared to a gain of $4 thousand for the same period in 2018, while realized gains decreased $1.2 million for the six months ended June 30, 2019 to a loss of $493 thousand, compared to a gain of $704 thousand for the same period in 2018.

Total non-interest expense was $14.2 million for the three months ended June 30, 2019, up $170 thousand, or 1.2%, from $14.1 million for the three months ended June 30, 2018 and $26.4 million for six months ended June 30, 2019, down $276 thousand, or 1.0%, from $26.6 million for the same period in the 2018.  There was a reduction in salaries and employee benefits expense of $640 thousand or 6.8% for the three months ended June 30, 2019 and $1.4 million or 7.6% for the six months ended June 30, 2019, compared to prior year, as full-time equivalent employees, particularly in the mortgage division declined. In addition, variable loan expenses decreased by $55 thousand and $57 thousand over the three and six month periods ended June 30, 2019, respectively, reflecting the lower level of mortgage originations year-over-year. Occupancy and equipment expense was down slightly for both the comparable three month and six month periods, while data processing and information technology expenses were up slightly over these same periods due to increased customer transaction volume.  Professional fees were up $232 thousand and $224 thousand for the three and six month periods ended June 30, 2019 due largely to legal and accounting fees incurred as part of the Maryland mortgage licensing issue announced in the prior quarter, in addition to legal fees incurred related to the litigation matter discussed below. 

Other non-interest expenses increased $568 thousand to $1.7 million for the three months ended June 30, 2019, and $1 million to $2.9 million for the six months ended June 30, 2019, when compared to the prior year comparable periods. The settlement of an outstanding litigation matter contributed $665 thousand to other non-interest expense for the three months ended June 30, 2019, while the impact to other non-interest expense for the six months ended June 30, 2019 was $790 thousand. On July 24, 2019 the Bank agreed to settle outstanding litigation related to former mortgage division employees for a total cost of $990 thousand.  Additionally, for the six months ended June 30, 2019, $79 thousand of other expense was incurred for the current period impact of the Maryland mortgage licensing issue previously disclosed.  Other contributors to the increase for the six months ended June 30, 2019 are increases in the FDIC insurance assessment, as well as the PA shares tax assessment due to the growth of the Bank from the prior year.

Balance Sheet Summary

As of June 30, 2019, total assets were $1.1 billion compared with $945.5 million as of June 30, 2018 and $997.5 million as of December 31, 2018. Total assets increased $110.4 million, or 11.7%, on a year-over-year basis primarily due to strong loan growth. Total assets increased $58.4 million, or 5.9%, from year-end, mostly due to an increase in portfolio loans of $47.1 million.

Total loans, excluding mortgage loans held for sale, grew $103.6 million, or 13.2%, to $885.2 million as of June 30, 2019, from $781.6 million as of June 30, 2018. For the six month period ending June 30, 2019, loans, excluding mortgages held for sale increased $47.1 million, or 5.6%, from $838.1 million as of December 31, 2018. The increase in loans for both periods is attributable to several commercial categories as we continue to grow our presence in the Philadelphia market area. Commercial loans increased a net $2.9 million, or 1.61%, year-over-year.  Commercial real estate and commercial construction loans combined increased $76.0 million, or 18.9%, year-over-year. Residential loans held in portfolio increased $8.9 million, or 18.5%, year-over-year as certain loan products or terms were targeted to hold in portfolio. Residential mortgage loans held for sale decreased $6.3 million, or 13.8%, to $39.3 million as of June 30, 2019 from June 30, 2018.

Deposits were $840.7 million as of June 30, 2019, up $157.5 million, or 23.0%, from June 30, 2018, and up $88.6 million, or 11.8%, from December 31, 2018. Non-interest bearing deposits increased $20.2 million, or 18.9%, from June 30, 2018 and increased $1.0 million, or 0.8%, from December 31, 2018. New business relationships fueled the increases year-over-year.  Money market accounts/savings accounts increased $69.6 million, or 32.4%, since June 30, 2018 and $52.0 million, or 22.4%, since December 31, 2018 due to new business relationship money market accounts.  Interest-bearing checking accounts decreased $22.2 million, or 20.1%, year-over-year, and decreased $26.6 million or 23.2% from December 31, 2018 due largely to term preference of municipal deposits. Certificates of deposit increased $89.8 million, or 35.8%, since June 30, 2018 and $62.1 million, or 22.3%, since December 31, 2018.

Consolidated stockholders' equity of the Corporation was $114.4 million, or 10.83% of total assets as of June 30, 2019, as compared to $104.1 million, or 11.01% of total assets as of June 30, 2018. As of June 30, 2019, the Tier 1 leverage ratio was 10.96%, the Tier 1 risk-based capital and common equity ratios were 11.37%, and total risk-based capital was 13.23%. Quarter-end numbers show a tangible common equity to tangible assets ratio of 10.83%. Tangible book value per share was $17.09 as of June 30, 2019, compared with $15.43 as of June 30, 2018.

Asset Quality Summary

Asset quality remains strong year-over-year. The Bank realized net recoveries of 0.04% of total average loans for the quarter ending June 30, 2019, compared with net charge-offs of 0.01% for the quarter ending June 30, 2018. Total non-performing assets, including loans and other real estate property, were $4.3 million as of June 30, 2019, $2.8 million as of June 30, 2018, and $3.9 million as of December 31, 2018. The ratio of non-performing assets to total assets as of June 30, 2019 was 0.40% compared to 0.30% as of June 30, 2018 and 0.39% as of December 31, 2018. The ratio of allowance for loan losses to total loans held for investment, excluding loans at fair value, was 0.99% as of June 30, 2019, an improvement from the 0.97% recorded as of June 30, 2018 and December 31, 2018.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is a full-service commercial bank headquartered in Malvern, Pennsylvania with 23 offices in the greater Philadelphia Metro market. The Bank offers a full range of commercial and retail loan and deposit products, along with wealth management and electronic payment services. Meridian Mortgage, a division of the Bank, is a top tier provider of residential mortgage loans. For additional information, visit our website at www.meridianbanker.com. Member FDIC.

"Safe Harbor" Statement

In addition to historical information, this press release may contain "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, 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 Securities and Exchange Commission (including our Annual Report on Form 10-K for the year ended December 31, 2018) and, for periods prior to the completion of the holding company reorganization, Meridian Bank's filings with the FDIC, including Meridian Bank's Annual Report on Form 10‑K for the year ended December 31, 2017, 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.

 

FINANCIAL TABLES FOLLOW

 

FINANCIAL RATIOS




Quarterly



2019


2019


2018


2018


2018

(Dollars in thousands, except per share data)


2nd QTR


1st QTR


4th QTR


3rd QTR


2nd QTR

Earnings and Per Share Data
















Net income


$

2,022


$

2,006


$

2,364


$

2,727


$

1,802

Basic earnings per common share



0.32



0.31



0.37



0.43



0.28

Diluted earnings per common share



0.31



0.31



0.37



0.42



0.28

Common shares outstanding



6,407



6,407



6,407



6,407



6,401

















Performance Ratios
















Return on average assets - consolidated



0.81%



0.83%



0.99%



1.16%



0.81%

Return on average assets - excluding Mortgage (non-
GAAP)



0.90%



0.83%



0.79%



0.87%



0.79%

Return on average equity - consolidated



7.14%



7.32%



8.66%



10.19%



7.02%

Return on average equity - excluding Mortgage (non-
GAAP)



7.78%



7.18%



6.69%



7.37%



6.63%

Net interest margin (TEY)



3.72%



3.67%



3.70%



3.72%



3.88%

Yield on earnings assets



5.44%



5.33%



5.19%



5.12%



5.12%

Cost of funds



1.89%



1.81%



1.65%



1.54%



1.37%

Efficiency ratio - consolidated



85%



81%



79%



78%



84%

Adjusted efficiency ratio - consolidated (non-GAAP)



81%



80%



79%



76%



83%

Efficiency ratio - excluding Mortgage (non-GAAP)



77%



72%



73%



71%



73%

Adjusted efficiency ratio - excluding Mortgage (non-
GAAP)



68%



71%



72%



67%



71%

















Asset Quality Ratios
















Net charge-offs to average loans



(0.04%)



(0.01%)



0.00%



0.00%



0.01%

Non-performing loans/Total loans



0.45%



0.43%



0.45%



0.35%



0.34%

Non-performing assets/Total assets



0.40%



0.38%



0.39%



0.30%



0.30%

Allowance for loan losses/Total loans



0.93%



0.94%



0.92%



0.92%



0.90%

Allowance for loan losses/Total loans held for
investment (excluding loans at fair value)



0.99%



0.99%



0.97%



0.97%



0.97%

Allowance for loan losses/Non-performing loans



208.28%



218.64%



204.85%



263.89%



261.83%

















Capital Ratios
















Book value per common share


$

17.85


$

17.48


$

17.10


$

16.67


$

16.27

Tangible book value per common share


$

17.09


$

16.70


$

16.31


$

15.87


$

15.43

Total equity/Total assets



10.83%



10.90%



10.98%



11.12%



11.01%

Tangible common equity/Tangible assets



10.42%



10.47%



10.53%



10.64%



10.50%

Tier 1 leverage ratio



10.96%



11.01%



11.16%



10.98%



11.24%

Common tier 1 risk-based capital ratio



11.37%



11.71%



11.72%



11.99%



11.99%

Tier 1 risk-based capital ratio



11.37%



11.71%



11.72%



11.99%



11.99%

Total risk-based capital ratio



13.23%



13.65%



13.66%



13.99%



14.03%

 

 



Statements of Income (Unaudited)


Statements of Income (Unaudited)



Quarter Ended


Six Months Ended

(Dollars in Thousands)


June 30, 2019


June 30, 2018


June 30, 2019


June 30, 2018














Interest Income













Interest and fees on loans


$

12,647


$

10,507


$

24,534


$

20,000

Investments



426



302



863



605

Total interest income



13,073



10,809



25,397



20,605














Interest Expense













Deposits



3,715



2,028



6,951



3,687

Borrowings



436



635



1,048



1,080

   Total interest expense



4,151



2,663



7,999



4,767














Net interest income



8,922



8,146



17,398



15,838

Provision for loan losses



14



413



233



967

Net interest income after provision for loan losses



8,908



7,733



17,165



14,871














Non-Interest Income













Mortgage banking income



6,321



7,312



11,229



12,133

Wealth management income



912



988



1,776



2,066

SBA income



515





515



Earnings on investment in life insurance



72



73



144



151

Net change in fair value of mortgage related financial
instruments



(168)



(171)



262



(138)

Gain on sale of investment securities available-for-sale



139





139



Service charges



27



28



54



60

Other



110



438



256



1,452

Total non-interest income



7,928



8,668



14,375



15,724














Non-Interest Expenses













Salaries and employee benefits



8,742



9,382



16,469



17,818

Occupancy and equipment



936



990



1,899



1,950

Loan expenses



668



723



1,136



1,193

Professional fees



709



477



1,180



956

Advertising and promotion



730



631



1,196



1,212

Data processing



324



302



648



590

Information technology



319



243



585



568

Communications



162



240



354



486

Other



1,654



1,086



2,893



1,863

Total non-interest expenses



14,244



14,074



26,360



26,636














Income before income taxes



2,592



2,327



5,180



3,959

Income tax expense



570



525



1,152



887

Net Income


$

2,022


$

1,802


$

4,028


$

3,072














Weighted-average basic shares outstanding



6,407



6,395



6,407



6,393

Basic earnings per common share


$

0.32


$

0.28


$

0.63


$

0.48














Adjusted weighted-average diluted shares outstanding



6,437



6,425



6,437



6,425

Diluted earnings per common share


$

0.31


$

0.28


$

0.63


$

0.48

 

 



Statement of Condition (Unaudited)

(Dollars in Thousands)


June 30, 2019


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018

Assets
















Cash & cash equivalents


$

30,630


$

38,940


$

23,952


$

25,823


$

27,013

Investment securities



60,816



63,152



63,169



60,449



54,773

Mortgage loans held for sale



39,288



29,612



37,695



34,044



45,571

Loans, net of fees and costs



885,172



862,372



838,106



806,788



781,622

Allowance for loan losses



(8,625)



(8,376)



(8,053)



(7,711)



(7,449)

Bank premises and equipment, net



9,225



9,276



9,638



9,947



10,207

Bank owned life insurance



11,713



11,641



11,569



11,494



11,420

Other real estate owned



120



120







Goodwill and intangible assets



4,909



4,978



5,046



5,114



5,359

Other assets



22,658



15,799



16,358



13,973



17,011

Total Assets


$

1,055,906


$

1,027,514


$

997,480


$

959,921


$

945,527

















Liabilities & Stockholders' Equity
















Liabilities
















Non-interest bearing deposits


$

127,158


$

115,464


$

126,150


$

124,855


$

106,942

Interest bearing deposits
















Interest checking



88,055



112,484



114,610



103,353



110,259

Money market / savings accounts



284,666



286,463



232,653



276,258



215,042

Certificates of deposit



340,835



296,302



278,717



277,461



251,007

Total interest bearing deposits



713,556



695,249



625,980



657,072



576,308

Total deposits



840,714



810,713



752,130



781,927



683,250

Borrowings



83,927



88,264



120,538



50,199



142,176

Subordinated debt



9,176



9,239



9,239



9,308



9,308

Other liabilities



7,710



7,306



6,021



11,784



6,728

Total Liabilities



941,527



915,522



887,928



853,218



841,462

















Stockholders' Equity



114,379



111,992



109,552



106,703



104,065

Total Liabilities & Stockholders'
Equity


$

1,055,906


$

1,027,514


$

997,480


$

959,921


$

945,527






Condensed Statements of Income (Unaudited)



Three Months Ended

(Dollars in Thousands)


June 30, 2019


March 31, 2019


December 31, 2018


September 30, 2018


June 30, 2018

Interest income


$

13,073


$

12,324


$

11,886


$

11,573


$

10,809

Interest expense



4,151



3,847



3,445



3,195



2,663

Net interest income



8,922



8,477



8,441



8,378



8,146

Provision for credit losses



14



219



319



291



413

Non-interest income



7,928



6,447



7,464



9,167



8,668

Non-interest expense



14,244



12,117



12,556



13,753



14,074

Income before income tax expense



2,592



2,588



3,030



3,501



2,327

Income tax expense



570



582



666



774



525

Net Income


$

2,022


$

2,006


$

2,364


$

2,727


$

1,802

















Weighted-average basic shares
outstanding



6,407



6,407



6,407



6,402



6,395

Basic earnings per common share


$

0.32


$

0.31


$

0.37


$

0.43


$

0.28

















Adjusted weighted-average diluted
shares outstanding



6,437



6,436



6,433



6,430



6,425

Diluted earnings per common share


$

0.31


$

0.31


$

0.37


$

0.42


$

0.28

 

 

Contact: Jessica Annas
jannas@meridianbanker.com 
484.568.5035

Cision

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