MRBK

MALVERN, Pa., July 30, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported: Net income for the quarter ended June 30, 2026 was $5.8 million, or $0.48 per diluted share, an increase of $3.8 million, or 189.5%, from the prior quarter. Pre-provision net revenue1 for the quarter was $10.4 million, an increase of $366 thousand, or 3.6%, from the prior quarter. Return on average assets and return on average equity for the second quarter of 2026 were 0.90% and 11.42%, respectively. Total assets at June 30, 2026 were $2.6 billion, compared to $2.6 billion at March 31, 2026 and $2.5 billion at June 30, 2025. Commercial loans, excluding leases, increased $4.6 million, or 0.3% from prior quarter. On July 30, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable August 17, 2026 to shareholders of record as of August 10, 2026. Christopher J. Annas, Chairman and CEO commented: “The Meridian team delivered a strong second quarter performance, earning $5.8 million vs $2.0 million in the prior quarter. Net interest margin was steady at 3.69%, and the provision was markedly lower against an elevated provision in the prior quarter. Pre-provision net revenue of $10.4 million was up nearly 3.6% from prior quarter. Commercial loan growth for the quarter would have been $54 million, or 3.0%, if not for commercial loan and CRE loan payoffs of $38 million, as well as SBA loan sales in the current quarter of $11.9 million. SBA loan sale income of $615 thousand is up from last quarter and should be more consistent as we adjust that business model. The mortgage group is still impacted by low inventory, but mortgage banking income was up 6% from Q2 2025. Mortgage third quarter originations look promising, but refi activity has fallen as rates have ticked up. We had a large increase in the non-performing loans due to three real estate relationships, but our substantial collateral position in these three loans negated the need for any current provisioning. We are working tirelessly to resolve the non-performing loans, but also recognize that our historical loan growth rate and small/medium business focus can often lead to periods of elevated non-performing loans. Our task is to keep the charge-off percentage low, which we have. We also have two businesses, SBA and equipment finance, that have generally higher charge-offs than normal commercial/industrial lending, but we earn higher yields on those assets that offset the charge-offs. We have hired an experienced payments team that has strong background in merchant acquiring, health savings accounts and the new capabilities of FedNow and RTP. With their industry contacts and qualifications, we are hoping to build a stronger deposit franchise and build fee income in that space. Payment methods are evolving rapidly and we are excited about the unique opportunities they could provide." Select Condensed Financial Information Income Statement - Second Quarter 2026 Compared to First Quarter 2026 Second quarter net income increased $3.8 million, or 189.5%, to $5.8 million due largely to an increase in non-interest income of $2.8 million, and a decrease of $4.5 million in the provision for credit losses, while non-interest expense increased $2.1 million over the prior quarter, and income tax expense increased $1.1 million over the prior quarter as well. Detailed explanations of the major categories of income and expense follow below. Net Interest income The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category. Interest income increased $67 thousand quarter-over-quarter on a tax equivalent basis, driven mainly by an increase in loans held for sale and loans held for investment average balances. The yield on interest-earnings assets decreased 10 basis points and negatively impacted interest income by $256 thousand, while the average balance of interest earning assets increased by $12.7 million, having a positive impact to interest income of $323 thousand. The yield on loans dropped 14 basis points due to an interest reversal of $885 thousand related to new nonaccrual loans in the quarter. Average total loans, excluding residential loans for sale, increased $4.9 million. The largest drivers were increases in commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $21.2 million on average. Partially offsetting these increases were decreases of $7.1 million in SBA loan average balances, a $2.7 million decrease in the average balance of residential loans held for investment, along with a decrease in average leases of $4.6 million. Also contributing to the increase in interest income was a $16.9 million increase in the average balance of loans held for sale. Interest expense increased $479 thousand, quarter-over-quarter, due largely to an increase in the cost of interest-bearing deposits. Interest expense on total deposits increased $526 thousand, as interest expense on borrowings decreased $60 thousand. During the period average balances of interest-bearing checking accounts increased $11.8 million, time deposits increased $18.2 million, while money market and savings deposit balances decreased $15.6 million on average and borrowings decreased $5.0 million on average. The cost of deposits increased 5 basis points as interest-bearing demand deposits and money market accounts had a cost increase, partially offset by the decrease in the cost of time deposits. Overall the net interest margin decreased to 3.69%, compared to the prior quarter, drive by the decline in yield on interest-earning assets and an increase in cost of funds. Provision for Credit Losses In the second quarter the overall provision for credit losses fell by $4.5 million to $3.0 million, compared with $7.5 million in the first quarter. The primary reason for the lower level of provision expense was less loan charge-offs and lower loan growth quarter over quarter. Excluding the prior quarter’s $3.9 million charge-off and related provision on a single commercial mortgage, charge-offs in the second quarter declined by $1.3 million driving down the provision. SBA and lease net charge-offs were together down $2.3 million compared to prior quarter. Non-interest income The following table presents the components of non-interest income for the periods indicated: Total non-interest income increased $2.8 million, or 40.4%, quarter-over-quarter largely due to a $2.1 million increase in mortgage banking income, and a $465 thousand increase in SBA loan income. Despite a quarter-over-quarter decrease of 33 basis points in the margin on mortgage loan sales, total loans sold increased by $81.1 million, or 20% from the prior quarter, resulting in a higher level of mortgage banking income, and the fair value of loans held for sale improved quarter-over-quarter as the loans available for sale at June 30, 2026 were up $15.9 million over March 31, 2026. SBA loan income increased $465 thousand due to the increase in SBA loans sold. $11.9 million of loans were sold during the quarter-ended June 30, 2026 compared to $6.7 million for the quarter-ended March 31, 2026. However, the gross margin on SBA loan sales was 7.9% for the quarter-ended June 30, 2026 compared to 8.5% for the quarter-ended March 31, 2026. Non-interest expense The following table presents the components of non-interest expense for the periods indicated: Salaries and benefits increased $807 thousand primarily due to the variable nature of the mortgage segment along with higher incentive compensation overall. Advertising and promotion costs increased $625 thousand, reflecting an increase in business development efforts and special events in the current quarter, which is generally seasonally higher. Other expense increased $425 thousand mainly due to an increase in OREO expenses and non-salary employee expenses in the current quarter. The increase in professional fees was due to expenses related to non-performing loans. Balance Sheet - June 30, 2026 Compared to March 31, 2026 Total assets increased $16.6 million, or 0.6%, to $2.6 billion as of June 30, 2026 from $2.6 billion as of March 31, 2026. Total portfolio loans decreased $3.2 million, or 0.1% quarter-over-quarter. While there was growth of $41.2 million in commercial mortgage loans, $1.2 million in commercial & industrial loans, and $3.0 million in home equity lines and loans during the second quarter, these increases were offset by a $27.9 million decrease in construction and land development loans, a $9.9 million decrease in SBA loans, and a $5.7 million decrease in lease financings. Commercial loan growth was impacted by $9.9 million in commercial loan payoffs during the quarter. Total deposits increased $24.5 million, or 1.1% quarter-over-quarter, led by an increase of $21.6 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $19.5 million, non-interest bearing accounts increased $2.9 million or 1.2%, while interest bearing demand deposits decreased $5.9 million, and borrowings decreased $12.8 million, or 10.6% quarter-over-quarter. Total stockholders’ equity increased by $4.6 million from March 31, 2026, to $204.8 million as of June 30, 2026. Changes to equity for the quarter included net income of $5.8 million, and an increase of $146 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.72% at June 30, 2026. Asset Quality Summary Non-performing loans increased $23.4 million, to $82.1 million at June 30, 2026 compared to $58.7 million at March 31, 2026, with the largest increases coming from land development loans ($20.0 million) and commercial mortgage loans ($5.5 million) that were downgraded during the current quarter partially offset by payoffs of $3.3 million of several CRE, construction and consumer loans combined. The downgraded land development and commercial mortgage loan relationships were well collateralized and therefore did not require any specific reserve as of June 30, 2026. SBA loans make up $24.6 million of total non-performing loans, with $11.9 million, or 48.4%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with 49.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points. The ratio of non-performing loans to total loans as of June 30, 2026 was 3.68%. Due to the increase in non-performing loans, the ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 3.14%. As of June 30, 2026 there were specific reserves of $3.3 million against individually evaluated loans, an increase of $428 thousand from the level of specific reserves as of March 31, 2026. Net charge-offs decreased to $2.6 million, or 0.12% of total average loans for the quarter ended June 30, 2026, compared to net charge-offs of $7.8 million, or 0.35%, for the quarter ended March 31, 2026. Second quarter charge-offs consisted of $414 thousand in SBA loans, $1.0 million in commercial loans, $1.2 million in finance receivables, and $455 thousand of small ticket equipment leases. Partially offsetting second quarter charge-offs were recoveries of $467 thousand between commercial loans, finance receivables, home equity loans, and leases. The ratio of allowance for credit losses to total loans held for investment was 0.99% as of June 30, 2026, compared to 0.98% reported as of March 31, 2026. Subsequent to June 30, 2026, a property in OREO valued at $719 thousand sold for a recorded gain of $218 thousand. About Meridian Corporation Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. 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, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL, including the timing of third-party appraisals and loan valuations from lead financial institutions in which we are a loan participant; cyber-security concerns; rapid technological developments and changes, including the development and use of artificial intelligence in business processes, services, and products; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the ongoing conflict in the Middle East, which could impact economic conditions in the United States; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; 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, 2025 and 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. MERIDIAN CORPORATION AND SUBSIDIARIESAPPENDIX: NON-GAAP MEASURES (Unaudited)(Dollar amounts and shares in thousands, except per share amounts) Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have 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. Contact:Christopher J. [email protected]

Meridian Bank (MRBK) came out with quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.88%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced earnings of $0.39, delivering a surprise of -18.75%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Meridian Bank, which belongs to the Zacks Banks - Northeast industry, posted revenues of $32.67 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.87%. This compares to year-ago revenues of $32.45 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Meridian Bank shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Meridian Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Meridian Bank was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.58 on $35.69 million in revenues for the coming quarter and $1.95 on $136.22 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. BCB Bancorp (BCBP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This community bank is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +38.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. BCB Bancorp's revenues are expected to be $25.53 million, up 1.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meridian Bank (MRBK) : Free Stock Analysis Report BCB Bancorp, Inc. (NJ) (BCBP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First National Corp. (FXNC) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.78%. A quarter ago, it was expected that this company would post earnings of $0.52 per share when it actually produced earnings of $0.54, delivering a surprise of +3.85%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. FIRST NAT CP, which belongs to the Zacks Banks - Northeast industry, posted revenues of $24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.22%. This compares to year-ago revenues of $22.44 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FIRST NAT CP shares have added about 20% since the beginning of the year versus the S&P 500's gain of 8.5%. While FIRST NAT CP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FIRST NAT CP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $24 million in revenues for the coming quarter and $2.38 on $94.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Meridian Bank (MRBK), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +4.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meridian Bank's revenues are expected to be $34.71 million, up 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First National Corp. (FXNC) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Peapack-Gladstone (PGC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on July 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +93.3%. Revenues are expected to be $85.84 million, up 23.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.72% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Peapack-Gladstone, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.92%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Peapack-Gladstone will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Peapack-Gladstone would post earnings of $0.66 per share when it actually produced earnings of $0.80, delivering a surprise of +21.21%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Peapack-Gladstone doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Meridian Bank (MRBK), another stock in the Zacks Banks - Northeast industry, is expected to report earnings per share of $0.51 for the quarter ended June 2026. This estimate points to a year-over-year change of +4.1%. Revenues for the quarter are expected to be $34.71 million, up 7% from the year-ago quarter. The consensus EPS estimate for Meridian Bank has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +5.88%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Meridian Bank will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peapack-Gladstone Financial Corporation (PGC) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Meridian Bank (MRBK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +4.1%. Revenues are expected to be $34.71 million, up 7% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Meridian Bank, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +5.88%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Meridian Bank will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Meridian Bank would post earnings of $0.48 per share when it actually produced earnings of $0.39, delivering a surprise of -18.75%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Meridian Bank doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MALVERN, Pa., May 04, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation ("Meridian", "we", or the "Corporation") (Nasdaq: MRBK) today is reporting revised results for the first quarter of 2026, which revises the original results of operations reported in the Corporation’s press release dated April 23, 2026 due to the Corporation becoming aware of a loan status change from the lead participant bank subsequent to the release of the Corporation’s results on April 23, 2026. The revised results of operations reported in this release will be consistent with the financial information presented in the Corporation’s Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission. Net income for the quarter ended March 31, 2026 was $2.0 million, or $0.17 per diluted share, down $5.2 million, or 72%, from prior quarter. Pre-provision net revenue1 for the quarter was $10.1 million, an improvement of $1.7 million, or 21%, from Q1'2025. Net interest margin improved to 3.82% for the first quarter of 2026 compared to the prior quarter, while the loan yield declined to 7.03%, and cost of funds declined to 3.04% over the same period. Return on average assets and return on average equity for the first quarter of 2026 were 0.32% and 4.02%, respectively. Total assets at March 31, 2026 were $2.6 billion, compared to $2.6 billion at December 31, 2025 and $2.5 billion at March 31, 2025. Commercial loans, excluding leases, increased $14.1 million, or 1% from prior quarter. On April 23, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026 to shareholders of record as of May 4, 2026. Select Condensed Financial Information Income Statement - First Quarter 2026 Compared to Fourth Quarter 2025 First quarter net income decreased $5.2 million, or 72.1%, to $2.0 million due largely to a decrease in non-interest income of $3.6 million, a decrease in net interest income of $425 thousand, and an increase of $4.2 million in the provision for credit losses, while non-interest expense decreased $1.5 million over the prior quarter. Income tax expense decreased $1.5 million over the prior quarter. Detailed explanations of the major categories of income and expense follow below. Net Interest income The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category. Interest income decreased $2.1 million quarter-over-quarter on a tax equivalent basis, driven by lower yields and average balances of interest earning assets. The yield on interest-earnings assets decreased 13 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets decreased by $23.3 million, impacting interest income by $851 thousand. Average total loans, excluding residential loans for sale, decreased $24.7 million. The largest driver was a $26.7 million decrease in the average balance of residential loans held for investment due to the sale of mortgages in the prior quarter, along with a decrease in average leases of $4.5 million, and a decrease in SBA loan average balances of $4.0 million. These decreases were partially offset by increases in construction, commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $11.3 million on average. Interest expense decreased $1.7 million, quarter-over-quarter, due to a decline in the cost of deposits and borrowings. Interest expense on total deposits decreased $1.4 million, interest expense on borrowings decreased $275 thousand, and interest expense on subordinated debentures decreased by $55 thousand as well. During the period, interest-bearing checking accounts decreased $3.4 million, time deposits increased $11.3 million, while money market and savings deposit balances decreased $3.0 million on average. Borrowings decreased $21.5 million on average. On a rate basis, money market accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits having declined 19 basis points. Overall the net interest margin improved to 3.82%, compared to the prior quarter, as the decline in cost of funds offset the decline in yield on earning assets. Provision for Credit Losses The overall provision for credit losses for the first quarter increased $4.2 million to $7.5 million, from $3.3 million in the fourth quarter. The higher level of provision was largely due to a $4.2 million increase in net charge-offs resulting predominantly from collateral value depreciation in one non-performing commercial mortgage which led to a $3.9 million charge-off, combined with an increase in the baseline ACL and qualitative reserve factors on certain loan portfolios. Non-interest income The following table presents the components of non-interest income for the periods indicated: Total non-interest income decreased $3.6 million, or 33.7%, quarter-over-quarter largely due to a $1.2 million decrease in mortgage banking income, and a $1.1 million decline in SBA loan income. Despite a quarter-over-quarter increase of 9 basis points in the margin on mortgage banking, mortgage loan sales decreased by $40.6 million, or 20% from the prior quarter, resulting in a lower level of mortgage banking income for the quarter-ended March 31, 2026. In addition, mortgage segment related fair value and derivative & hedging items declined in total by $701 thousand quarter-over-quarter. SBA loan income decreased $1.1 million as the volume of SBA loans sold was down $14.1 million to $6.7 million, for the quarter-ended March 31, 2026 compared to the quarter-ended December 31, 2025, while the gross margin on SBA loan sales was 8.5% for the quarter-ended March 31, 2026 compared to 7.4% for the quarter-ended December 31, 2025. In the prior quarter we recorded a gain on sale of investment securities of $453 thousand, which was not repeated in the quarter ended March 31, 2026. Other non-interest income was down $90 thousand from the prior quarter due to smaller declines in several accounts including ATM, wire transfer and other customer account fees. Non-interest expense The following table presents the components of non-interest expense for the periods indicated: Salaries and benefits overall decreased $717 thousand, primarily due to the variable nature of the mortgage segment along with timing of certain incentive expense, in addition to lower incentive compensation within the banking and wealth management segments compared to the previous quarter-end. Advertising and promotion costs decreased $252 thousand, reflecting a decrease in business development efforts and special events since year-end. Furthermore, other expense decreased $428 thousand mainly because OREO related activities in the prior quarter did not recur in the quarter-ended March 31, 2026. Balance Sheet - March 31, 2026 Compared to December 31, 2025 Total assets increased $14.6 million, or 0.6%, to $2.6 billion as of March 31, 2026 from $2.6 billion as of December 31, 2025. Portfolio loans grew $11.1 million, or 0.5% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $15.4 million, or 3.6%, construction loans increased $12.8 million, or 3.9%, while commercial mortgage loans decreased $8.9 million, or 1.0%, and SBA loan balances decreased $5.3 million, or 3.8%. Lease financings also decreased $4.7 million, or 10.2% from December 31, 2025, partially offsetting the above noted loan growth. Total deposits increased $11.8 million, or 0.5% quarter-over-quarter, led by an increase of $13.8 million in interest-bearing deposits. Money market accounts and savings accounts decreased a combined $9.8 million, non-interest bearing accounts decreased $1.9 million or 0.8%, while interest bearing demand deposits decreased $209 thousand. While borrowings increased $3.5 million, or 3.0% quarter-over-quarter. Total stockholders’ equity increased by $509 thousand from December 31, 2025, to $200.2 million as of March 31, 2026. Changes to equity for the quarter included net income of $2.0 million, an increase of $424 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.58% at March 31, 2026. Asset Quality Summary Non-performing loans increased $3.6 million, to $58.7 million at March 31, 2026 compared to $55.1 million at December 31, 2025, with increases coming from commercial mortgage, land development, and commercial non-performing loans, partially offset by a decrease in non-performing SBA loans, residential mortgage loans, and construction loans. Of the total non-performing loans, $23.9 million were SBA loans, with $12.9 million, or 54.0%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with slightly more than half, 53.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points. Due to the increase in non-performing loans, the ratio of non-performing loans to total loans as of March 31, 2026 increased to 2.64%, compared to 2.50% at December 31, 2025. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 2.06%. As of March 31, 2026 there were specific reserves of $2.8 million against individually evaluated loans, a decrease of $613 thousand from the level of specific reserves as of December 31, 2025. Net charge-offs increased to $7.8 million, or 0.35% of total average loans for the quarter ended March 31, 2026, compared to net charge-offs of $3.5 million, or 0.16%, for the quarter ended December 31, 2025. First quarter charge-offs consisted of $3.9 million from a commercial mortgage loan, $2.5 million in SBA loans, $149 thousand in commercial loans, $856 thousand in finance receivables, and $745 thousand of small ticket equipment leases. Partially offsetting first quarter charge-offs were recoveries of $407 thousand, mainly related to leases. The ratio of allowance for credit losses to total loans held for investment was 0.98% as of March 31, 2026, compared to 1.00% reported as of December 31, 2025, due to the increase in provision for credit losses discussed above, combined with portfolio loan growth being below 1% for the current quarter. About Meridian Corporation Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. 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, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL, including the timing of third-party appraisals and loan valuations from lead financial institutions in which we are a loan participant; cyber-security concerns; rapid technological developments and changes, including the development and use of artificial intelligence in business processes, services, and products; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the ongoing conflict in the Middle East, which could impact economic conditions in the United States; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; 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, 2025 and 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. MERIDIAN CORPORATION AND SUBSIDIARIES APPENDIX: NON-GAAP MEASURES (Unaudited) (Dollar amounts and shares in thousands, except per share amounts) Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have 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. Contact: Christopher J. Annas 484.568.5001 [email protected]

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Meridian (NASDAQ:MRBK). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. We can see that in the last three years Meridian grew its EPS by 5.1% per year. This may not be setting the world alight, but it does show that EPS is on the upwards trend. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Our analysis has highlighted that Meridian's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. EBIT margins for Meridian remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 15% to US$116m. That's encouraging news for the company! In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart. See our latest analysis for Meridian Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Meridian. Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions. Not only did Meridian insiders refrain from selling stock during the year, but they also spent US$53k buying it. That paints the company in a nice light, as it signals that its leaders are feeling confident in where the company is heading. Zooming in, we can see that the biggest insider purchase was by Independent Director Robert Casciato for US$28k worth of shares, at about US$13.80 per share. Along with the insider buying, another encouraging sign for Meridian is that insiders, as a group, have a considerable shareholding. As a matter of fact, their holding is valued at US$32m. That shows significant buy-in, and may indicate conviction in the business strategy. That amounts to 13% of the company, demonstrating a degree of high-level alignment with shareholders. One positive for Meridian is that it is growing EPS. That's nice to see. On top of that, we've seen insiders buying shares even though they already own plenty. These factors alone make the company an interesting prospect for your watchlist, as well as continuing research. Now, you could try to make up your mind on Meridian by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry. There are plenty of other companies that have insiders buying up shares. So if you like the sound of Meridian, you'll probably love this curated collection of companies in the US that have an attractive valuation alongside insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Meridian Bank (MRBK) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -17.90%. A quarter ago, it was expected that this company would post earnings of $0.55 per share when it actually produced earnings of $0.61, delivering a surprise of +10.91%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Meridian Bank, which belongs to the Zacks Banks - Northeast industry, posted revenues of $30.24 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.71%. This compares to year-ago revenues of $27.1 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Meridian Bank shares have added about 14.9% since the beginning of the year versus the S&P 500's gain of 4.3%. While Meridian Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Meridian Bank was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $34.88 million in revenues for the coming quarter and $2.30 on $137.37 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, CF Bankshares Inc. (CFBK), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +19.1%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. CF Bankshares Inc.'s revenues are expected to be $16.44 million, up 16.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meridian Bank (MRBK) : Free Stock Analysis Report CF Bankshares Inc. (CFBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MALVERN, Pa., April 23, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported: Net income for the quarter ended March 31, 2026 was $4.7 million, or $0.39 per diluted share, down $2.5 million, or 34%, from prior quarter. Pre-provision net revenue1 for the quarter was $10.1 million, an improvement of $1.7 million, or 21%, from Q1'2025. Net interest margin improved to 3.82% for the first quarter of 2026 compared to the prior quarter, while the loan yield declined to 7.03%, and cost of funds declined to 3.04% over the same period. Return on average assets and return on average equity for the first quarter of 2026 were 0.74% and 9.44%, respectively. Total assets at March 31, 2026 were $2.6 billion, compared to $2.6 billion at December 31, 2025 and $2.5 billion at March 31, 2025. Commercial loans, excluding leases, increased $17.9 million, or 1% from prior quarter. On April 23, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable May 11, 2026 to shareholders of record as of May 4, 2026. Christopher J. Annas, Chairman and CEO commented: “Meridian’s first quarter 2026 earnings totaled $4.7 million, nearly doubling from Q1'2025, resulting from continued improvement in the net interest margin to 3.82% for the first quarter 2026 from 3.46% in Q1'2025. The margin improvement is coming from deposit repricing and some repositioning in the deposit base. SBA loan sale income was down significantly after a management change, but we expect a rebound towards year end. Mortgage banking income (loss) was similar to Q1'2025 with seasonality, and if housing inventory continues to improve we’ll achieve increased originations this year. Pre‑provision net revenue increased nearly 20% year over year, underscoring the durability of our underlying operating performance. Credit costs remained elevated during the quarter, driven largely by charge‑offs in our SBA and leasing portfolios that trace back to loans originated during the low‑rate environment of 2020 and 2021. We are actively working these credits through restructurings, liquidations, and recoveries, and more than half of our non‑performing SBA balances carry government guarantees. While the remediation process is neither fast nor linear, we have a focused approach to addressing these exposures. Commercial loan growth was slower during the quarter, as our C&I group experienced some big payoffs, but we remain confident in achieving another year of double digit growth. Our capital position strengthened further, tangible book value increased, and our balance sheet remains well positioned to absorb credit normalization while continuing to invest in disciplined growth and return capital to shareholders.” Select Condensed Financial Information Income Statement - First Quarter 2026 Compared to Fourth Quarter 2025 First quarter net income decreased $2.5 million, or 34.4%, to $4.7 million due largely to a decrease in non-interest income of $3.6 million, a decrease in net interest income of $425 thousand, and an increase of $712 thousand in the provision for credit losses, while non-interest expense decreased $1.5 million over the prior quarter. Income tax expense decreased $743 thousand over the prior quarter. Detailed explanations of the major categories of income and expense follow below. Net Interest income The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category. Interest income decreased $2.1 million quarter-over-quarter on a tax equivalent basis, driven by lower yields and average balances of interest earning assets. The yield on interest-earnings assets decreased 13 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets decreased by $23.2 million, impacting interest income by $850 thousand. Average total loans, excluding residential loans for sale, decreased $24.7 million. The largest driver was a $26.7 million decrease in the average balance of residential loans held for investment due to the sale of mortgages in the prior quarter, along with a decrease in average leases of $4.5 million, and a decrease in SBA loan average balances of $4.0 million. These decreases were partially offset by increases in construction, commercial loans, commercial real estate loans and home equity loans, which on a combined basis increased $11.3 million on average. Interest expense decreased $1.7 million, quarter-over-quarter, due to a decline in the cost of deposits and borrowings. Interest expense on total deposits decreased $1.4 million, interest expense on borrowings decreased $275 thousand, and interest expense on subordinated debentures decreased by $55 thousand as well. During the period, interest-bearing checking accounts decreased $3.4 million, time deposits increased $11.3 million, while money market and savings deposit balances decreased $3.0 million on average. Borrowings decreased $21.5 million on average. On a rate basis, money market accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits having declined 19 basis points. Overall the net interest margin improved to 3.82%, compared to the prior quarter, as the decline in cost of funds offset the decline in yield on earning assets. Provision for Credit Losses The overall provision for credit losses for the first quarter increased $712 thousand to $4.0 million, from $3.3 million in the fourth quarter. The higher level of provision was largely due to a $373 thousand increase in net charge-offs, combined with an increase in the baseline ACL and qualitative reserve factors on certain loan portfolios. Non-interest income The following table presents the components of non-interest income for the periods indicated: Total non-interest income decreased $3.6 million, or 33.7%, quarter-over-quarter largely due to a $1.2 million decrease in mortgage banking income, and a $1.1 million decline in SBA loan income. Despite a quarter-over-quarter increase of 9 basis points in the margin on mortgage banking, mortgage loan sales decreased by $40.6 million, or 20% from the prior quarter, resulting in a lower level of mortgage banking income for the quarter-ended March 31, 2026. In addition, mortgage segment related fair value and derivative & hedging items declined in total by $701 thousand quarter-over-quarter. SBA loan income decreased $1.1 million as the volume of SBA loans sold was down $14.1 million to $6.7 million, for the quarter-ended March 31, 2026 compared to the quarter-ended December 31, 2025, while the gross margin on SBA loan sales was 8.5% for the quarter-ended March 31, 2026 compared to 7.4% for the quarter-ended December 31, 2025. In the prior quarter we recorded a gain on sale of investment securities of $453 thousand, which was not repeated in the quarter ended March 31, 2026. Other non-interest income was down $90 thousand from the prior quarter due to smaller declines in several accounts including ATM, wire transfer and other customer account fees. Non-interest expense The following table presents the components of non-interest expense for the periods indicated: Salaries and benefits overall decreased $717 thousand, primarily due to the variable nature of the mortgage segment along with timing of certain incentive expense, in addition to lower incentive compensation within the banking and wealth management segments compared to the previous quarter-end. Advertising and promotion costs decreased $252 thousand, reflecting a decrease in business development efforts and special events since year-end. Furthermore, other expense decreased $428 thousand mainly because OREO related activities in the prior quarter did not recur in the quarter-ended March 31, 2026. Balance Sheet - March 31, 2026 Compared to December 31, 2025 Total assets increased $17.3 million, or 0.7%, to $2.6 billion as of March 31, 2026 from $2.6 billion as of December 31, 2025. Portfolio loans grew $15.0 million, or 0.7% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $15.4 million, or 3.6%, construction loans increased $12.8 million, or 3.9%, while commercial mortgage loans decreased $5.0 million, or 0.6%, and SBA loan balances decreased $5.3 million, or 3.8%. Lease financings also decreased $4.7 million, or 10.2% from December 31, 2025, partially offsetting the above noted loan growth. Total deposits increased $11.8 million, or 0.5% quarter-over-quarter, led by an increase of $13.8 million in interest-bearing deposits. Money market accounts and savings accounts decreased a combined $9.8 million, non-interest bearing accounts decreased $1.9 million or 0.8%, while interest bearing demand deposits decreased $209 thousand. While borrowings increased $3.5 million, or 3.0% quarter-over-quarter. Total stockholders’ equity increased by $3.2 million from December 31, 2025, to $202.9 million as of March 31, 2026. Changes to equity for the quarter included net income of $4.7 million, an increase of $424 thousand in other comprehensive income, partially offset by dividends paid of $1.7 million. The Community Bank Leverage Ratio for the Bank was 9.69% at March 31, 2026. Asset Quality Summary Non-performing loans increased $656 thousand, to $55.7 million at March 31, 2026 compared to $55.1 million at December 31, 2025, with increases coming from commercial mortgage, land development, and commercial non-performing loans, partially offset by a decrease in non-performing SBA loans, residential mortgage loans, and construction loans. Of the total non-performing loans, $23.9 million were SBA loans, with $12.9 million, or 54.0%, guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase with slightly more than half, 53.7%, of total non-performing SBA loans having been originated in 2020-2021 when rates were lower by over 500 basis points. Despite these changes in non-performing loans, the ratio of non-performing loans to total loans as of March 31, 2026 was unchanged from December 31, 2025 at 2.50%. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 1.92%. As of March 31, 2026 there were specific reserves of $2.8 million against individually evaluated loans, a decrease of $613 thousand from the level of specific reserves as of December 31, 2025. Net charge-offs increased to $3.9 million, or 0.18% of total average loans for the quarter ended March 31, 2026, compared to net charge-offs of $3.5 million, or 0.16%, for the quarter ended December 31, 2025. First quarter charge-offs consisted of $2.5 million in SBA loans, $149 thousand in commercial loans, $856 thousand in finance receivables, and $745 thousand of small ticket equipment leases. Partially offsetting first quarter charge-offs were recoveries of $407 thousand, mainly related to leases. The ratio of allowance for credit losses to total loans held for investment was 1.00% as of March 31, 2026, consistent with the 1.00% reported as of December 31, 2025, due to the increase in provision for credit losses discussed above, combined with portfolio loan growth being below 1% for the current quarter. About Meridian Corporation Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. 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, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; 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, 2025 and 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. MERIDIAN CORPORATION AND SUBSIDIARIES APPENDIX: NON-GAAP MEASURES (Unaudited) (Dollar amounts and shares in thousands, except per share amounts) Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have 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. Contact: Christopher J. Annas 484.568.5001 [email protected]

Midland States Bancorp (MSBI) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.6 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +32.77%. A quarter ago, it was expected that this company would post earnings of $0.7 per share when it actually produced earnings of $0.53, delivering a surprise of -24.29%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Midland States Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $79.54 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.36%. This compares to year-ago revenues of $75.95 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Midland States Bancorp shares have added about 9% since the beginning of the year versus the S&P 500's gain of 4.3%. While Midland States Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Midland States Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $76.1 million in revenues for the coming quarter and $2.54 on $305.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Meridian Bank (MRBK), is yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +128.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meridian Bank's revenues are expected to be $31.08 million, up 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Midland States Bancorp, Inc. (MSBI) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bankwell Financial Group, Inc. (BWFG) came out with quarterly earnings of $1.41 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.63%. A quarter ago, it was expected that this company would post earnings of $1.2 per share when it actually produced earnings of $1.15, delivering a surprise of -4.17%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bankwell Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $30.34 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.97%. This compares to year-ago revenues of $23.57 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bankwell Financial Group shares have added about 11.1% since the beginning of the year versus the S&P 500's gain of 3.2%. While Bankwell Financial Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bankwell Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.22 on $30.01 million in revenues for the coming quarter and $5.15 on $122.98 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the bottom 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Meridian Bank (MRBK), has yet to report results for the quarter ended March 2026. This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +128.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meridian Bank's revenues are expected to be $31.08 million, up 14.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bankwell Financial Group, Inc. (BWFG) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MALVERN, Pa., Jan. 29, 2026 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported: Net income for the quarter ended December 31, 2025 was $7.2 million, or $0.61 per diluted share, up $527 thousand, or 8%, from prior quarter. Pre-provision net revenue1 for the quarter was $12.6 million, an improvement of $1.4 million, or 13%. from Q4'2024. Net interest margin was 3.77% for the fourth quarter of 2025, while the loan yield declined to 7.15%, and cost of funds declined to 3.23% from the prior quarter. Return on average assets and return on average equity for the fourth quarter of 2025 were 1.10% and 14.79%, respectively. Total assets at December 31, 2025 were $2.6 billion, compared to $2.5 billion at September 30, 2025 and $2.4 billion at December 31, 2024. Commercial loans, excluding leases, increased $35.2 million, or 2% from prior quarter. On January 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.14 per common share, payable February 17, 2026 to shareholders of record as of February 9, 2026. This is an increase of $0.015 or 12%, compared to the quarterly cash dividend of $0.125 per common share declared in the prior quarter. Christopher J. Annas, Chairman and CEO commented: "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. Year-over-year growth of our core commercial, industrial, and real estate loan portfolios equaled 10.7%, driven mostly through new and existing loan relationships, and despite SBA loan sales and a $25 million residential mortgage sale to reallocate to commercial. The exceptional loan growth has been sustainable over the years due to targeted lending hires, training new candidates and devising new ways to capitalize on market disruption. The net interest margin has improved throughout 2025 mostly from lower deposit rates. We have benefited from lower core deposit rates to our commercial business because of pricing elasticity, but also from excellent management of our brokered deposit stack, which is similar in proportion to traditional branch banks’ CDs. Expenses were relatively flat from prior quarter, and up just 5.2% year over year. Although we are currently facing higher levels of nonperforming loans and leases, we are seeing slow progress as recoveries are improving and assets are migrating to our possession and ultimate disposition. Our wealth management segment produced annual pre-tax income of $2.3 million, as assets under management grew 7.8%. We hired three new wealth advisors over the year, and also benefitted from stock market gains in client portfolios that expanded the AUM. We are investing in the wealth group as we see more opportunity, and we closely track our commercial customers’ liquidity events to pursue these assets. The mortgage segment earned pre-tax income of $1.1 million, with mortgage revenue down about $260 thousand or 1.3% from the prior year. The business has suffered from lack of homes for sale, that only saw some rebounding at end of year. We further streamlined the business in 2025 to assure profitability, and are optimistic about our 2026 origination goals. Meridian's consistent organic growth, year over year, for the past 22 years has been defined by being opportunistic during times of turmoil. A series of acquisitions in our market during 2025 has positioned us to take advantage of customer and employee turmoil. Through our brand and strategic marketing efforts we expect to leverage this strength to our benefit in 2026." Select Condensed Financial Information Income Statement - Fourth Quarter 2025 Compared to Third Quarter 2025 Fourth quarter net income increased $527 thousand, or 7.9%, to $7.2 million due largely to an increase in net interest income of $511 thousand and an increase in non-interest income of $662 thousand, The provision for credit losses increased $437 thousand and non-interest expense was relatively flat over prior quarter. Income tax expense was up $97 thousand. Detailed explanations of the major categories of income and expense follow below. Net Interest income The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category. Interest income decreased $286 thousand quarter-over-quarter on a tax equivalent basis, driven by lower yields largely offset by increased average balances of interest earning assets. The yield on interest-earnings assets decreased 19 basis points and negatively impacted interest income by $1.3 million, while the average balance of interest earning assets increased by $52.7 million, and contributed $966 thousand to interest income which helped to lessen the overall decrease. Average total loans, excluding residential loans for sale, increased $54.0 million. The largest drivers of this increase were construction, commercial real estate, and commercial loans which on a combined basis increased $55.3 million on average, partially offset by a decrease in average leases of $6.9 million. Home equity, residential real estate, consumer and other loans held in portfolio increased on a combined basis $5.5 million on average. Interest expense decreased $794 thousand, quarter-over-quarter, due to a decline in the cost of deposits and borrowings, partially offset by a higher volume of total interest-bearing deposits and borrowings. Interest expense on total deposits decreased $836 thousand, interest expense on borrowings increased $73 thousand, and interest expense on subordinated debentures decreased by $31 thousand as well. During the period, interest-bearing checking accounts decreased $20.4 million, time deposits decreased $7.4 million, while money market and savings deposit balances increased $54.1 million on average. Borrowings increased $9.9 million on average. On a rate basis, money market accounts and time deposits experienced a decrease in the cost, with the overall cost of deposits declined 19 basis points. Overall the net interest margin remained at 3.77%, consistent with the prior quarter, as the decline in cost of funds offset the decline in yield on earning assets. Provision for Credit Losses The overall provision for credit losses for the fourth quarter increased $437 thousand to $3.3 million, from $2.9 million in the third quarter. The higher level of provisioning was largely due to a $1.6 million increase in net charge-offs, combined with the impact of an upgrade to the third-party macroeconomic forecast model used to estimate credit losses on the loan portfolio, partially offset by a decline in baseline loss rates utilized for several loan portfolio segments. The model upgrade was based on assessing the macroeconomic variable relationships to expected results. The overall impact to the ACL from the model upgrade, before applying qualitative adjustments, was not considered material. Non-interest income The following table presents the components of non-interest income for the periods indicated: Total non-interest income increased $662 thousand, or 6.7%, quarter-over-quarter largely due to the increase in gains of $405 thousand on the sales of investment securities, $187 thousand in favorable fair value changes, $144 thousand in gains from hedging activities, $206 thousand increase in fee income from title and other services as well as an increase of $69 thousand in wealth management income, and a $66 thousand decline in the net loss on sale of loans. These improvements were partially offset by a $146 thousand decline in SBA loan income, and a $200 thousand decrease in mortgage banking income. Mortgage loan sales increased $1.0 million, or 0.5%, quarter-over-quarter. Despite this increase in overall sales, margin decreased 11 basis points resulting in a lower level of mortgage banking income. SBA loan income decreased $146 thousand as the volume of SBA loans sold was down $4.5 million to $20.8 million, for the quarter-ended December 31, 2025 compared to the quarter-ended September 30, 2025, while the gross margin on SBA sales was 7.4% for both quarter ends. Non-interest expense The following table presents the components of non-interest expense for the periods indicated: Overall salaries and benefits decreased $510 thousand, largely attributable to the variable nature of the mortgage segment along with timing of certain incentive expense. Occupancy increased $219 thousand due to the relocation two offices including the opening of the full service branch in Florida. Data processing and software expense increased $116 thousand due to an increase in customer transaction volume, while advertising and promotion expenses increased $67 thousand as the level of business development activities and special events increased at the end of the year. Other expense increased $266 thousand from an increase in OREO expense as collateral on a land development loan was repossessed and reclassified into OREO during the quarter-ended December 31, 2025, offset by a decline in other loan related expenses. Balance Sheet - December 31, 2025 Compared to September 30, 2025 Total assets increased $19.3 million, or 0.8%, to $2.6 billion as of December 31, 2025 from $2.5 billion as of September 30, 2025. Portfolio loans grew $8.4 million, or 0.4% quarter-over-quarter. This growth was generated from commercial & industrial loans which increased $10.9 million, or 2.6%, construction loans increased $15.4 million, or 4.9%, and commercial mortgage loans increased $6.9 million, or 0.8%. The balance of residential mortgages decreased by $24.4 million, or 9.4%, as we sold a $24.5 million portion of this portfolio and are using the proceeds to fund higher yielding loans. Lease financings also decreased $4.3 million, or 8.6% from September 30, 2025, partially offsetting the above noted loan growth, but this decline was expected. Total deposits increased $27.0 million, or 1.3% quarter-over-quarter, led by an increase of $21.2 million in interest-bearing deposits. Money market accounts and savings accounts increased a combined $27.2 million, non-interest bearing accounts increased $5.8 million or 2.4%, while interest bearing demand deposits increased $5.4 million. Overall borrowings decreased $19.9 million, or 14.5% quarter-over-quarter. Total stockholders’ equity increased by $10.1 million from September 30, 2025, to $198.1 million as of December 31, 2025. Changes to equity for the quarter included net income of $7.2 million, a net increase of $7.5 million due to stock issuance under an ATM offering, an increase of $626 thousand in other comprehensive income, partially offset by dividends paid of $1.4 million. The Community Bank Leverage Ratio for the Bank was 9.51% at December 31, 2025. Asset Quality Summary Non-performing loans decreased $298 thousand, to $55.1 million at December 31, 2025 compared to $55.4 million at September 30, 2025, with decreases coming in land development, construction, and commercial non-performing loans, partially offset by an increase in non-performing SBA loans. Included in non-performing loans are $24.8 million of SBA loans of which $13.2 million, or 53%, are guaranteed by the SBA. The SBA portfolio was subject to the Fed's rapid rate increase and $13.5 million, or 54% of these non-performing loans originated in 2020-2021 when rates were lower by over 500 basis points. As a result of these changes in non-performing loans, the ratio of non-performing loans to total loans decreased 3 bps to 2.50% as of December 31, 2025, from 2.53% as of September 30, 2025. The ratio of non-performing loans to total loans, excluding the guaranteed portion of the SBA portfolio was 1.90%. Net charge-offs increased to $3.5 million, or 0.16% of total average loans for the quarter ended December 31, 2025, compared to net charge-offs of $1.9 million, or 0.09%, for the quarter ended September 30, 2025. Fourth quarter charge-offs consisted of $1.6 million in SBA loans, $846 thousand in commercial loans, $807 thousand in finance receivables, and $561 thousand of small ticket equipment leases. Overall there were recoveries of $257 thousand, mainly related to leases. The ratio of allowance for credit losses to total loans held for investment was 1.00% as of December 31, 2025, slightly down from 1.01% reported as of September 30, 2025, impacted by charge-offs for the quarter, combined with the impact on the ACL from the residential mortgage loan sale. As of December 31, 2025 there were specific reserves of $3.4 million against individually evaluated loans, a slight increase of $94 thousand from the level of specific reserves as of September 30, 2025. About Meridian Corporation Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware, Maryland, and Florida. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. 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, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; the impact of uncertain or changing political conditions or any current or future federal government shutdown and uncertainty regarding the federal government's debt limit; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; 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, 2024 and 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. MERIDIAN CORPORATION AND SUBSIDIARIES APPENDIX: NON-GAAP MEASURES (Unaudited) (Dollar amounts and shares in thousands, except per share amounts) Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have 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. Contact: Christopher J. Annas 484.568.5001 [email protected]