Meridian Corporation Reports 68.1% Increase in Net Income for Q2 2025

Meridian Corporation reported a significant increase in its financial performance for the second quarter of 2025, with net income rising to $5.6 million, or $0.49 per diluted share, compared to $3.3 million, or $0.30 per diluted share, in the same period last year. This 68.1% increase was primarily driven by a 25.6% rise in net interest income, which reached $21.2 million, and a 22.1% increase in non-interest income, totaling $11.3 million. The net interest margin improved to 3.54% from 3.06%, reflecting a favorable shift in deposit and borrowing costs. For the first half of 2025, net income was $8.0 million, up 33.1% from $6.0 million in the prior year.

Total assets for Meridian increased by $125.1 million, or 5.2%, to $2.5 billion as of June 30, 2025, driven by a $78.1 million, or 3.9%, increase in the loan portfolio, which totaled $2.1 billion. The growth in loans was led by a $31.5 million increase in commercial mortgages and a $25.7 million rise in construction loans. Total deposits also saw a boost, increasing by $105.0 million, or 5.2%, to $2.1 billion, although non-interest-bearing deposits decreased slightly. The corporation returned $2.8 million to shareholders through dividends during the first half of the year.

Operationally, Meridian's customer engagement metrics showed positive trends, with a notable increase in SBA loan income, which surged by 153.2% to $1.99 million in the second quarter. The mortgage banking segment also contributed positively, with mortgage banking income rising to $5.76 million, up 6.3% year-over-year. However, the provision for credit losses increased by $1.1 million in the second quarter, reflecting a proactive approach to managing credit risk amid economic uncertainties.

Looking ahead, Meridian Corporation remains cautiously optimistic about its growth trajectory. The management highlighted the importance of maintaining a balanced loan portfolio and managing credit risk effectively. The corporation's capital ratios remain strong, with a Tier 1 leverage ratio of 9.32% as of June 30, 2025, indicating a solid capital position to support future growth. The outlook for the remainder of the year will depend on market conditions and the corporation's ability to navigate potential economic challenges while continuing to expand its lending activities.