Meridian Corporation Reports Strong Financial Performance for Fiscal Year 2024

Meridian Corporation reported a solid financial performance for the fiscal year ended December 31, 2024, with total assets increasing by $139.7 million, or 6.2%, to reach $2.4 billion. The company’s portfolio loans also saw a significant rise, growing by $137.8 million, or 7.3%, to $2.0 billion. Consolidated net income for the year was $16.3 million, reflecting a 23.4% increase from the previous year, with a return on average assets of 0.70% and a return on average equity of 9.93%. Net interest income rose by $2.1 million, or 3.0%, attributed to higher levels of earning assets, while non-interest income surged by $9.4 million, or 29.3%, largely due to an improved mortgage banking environment.

Compared to the previous fiscal year, Meridian experienced notable changes in its financial metrics. The return on average equity improved from 8.53% in 2023 to 9.93% in 2024, and the allowance for credit losses as a percentage of loans held for investment decreased from 1.17% to 0.91%. The increase in net charge-offs, which rose to $15.8 million from $5.6 million in 2023, was primarily driven by equipment leases and commercial loans. The company’s non-performing assets ratio also increased to 1.90% from 1.58%, indicating a slight deterioration in asset quality.

Strategically, Meridian has focused on expanding its market presence and enhancing its service offerings. The company operates through three primary segments: banking, wealth management, and mortgage banking. In 2024, the wealth management segment generated $5.7 million in income, up from $4.9 million in 2023, while mortgage banking income increased significantly to $21.0 million from $16.5 million. The bank's geographic footprint includes offices in Pennsylvania, New Jersey, Delaware, Maryland, and Florida, with a total employee count of 322 as of December 31, 2024.

Operationally, Meridian's customer base has shown growth, with total deposits increasing by $181.9 million, or 10.0%, to $2.0 billion. The bank's non-interest-bearing deposits remained stable, while interest-bearing deposits saw a notable increase, particularly in money market accounts, which rose by 22.2%. The bank's commitment to community engagement is evident, as it donated $546,000 to over 100 organizations in 2024, reinforcing its presence in the local markets it serves.

Looking ahead, Meridian Corporation remains optimistic about its growth trajectory, emphasizing its commitment to organic growth and potential acquisitions. The bank's management believes that its current capital position, categorized as "well-capitalized" by regulators, will support its strategic initiatives. However, the company acknowledges the challenges posed by economic conditions, interest rate fluctuations, and competitive pressures in the banking sector, which could impact its future performance.