The following excerpt is from the company's SEC filing.
2 Meridian
Corporation
Forward-Looking Statements
Meridian Corporation (the “Corporation”) may from time to time make written or oral “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,” “c
ould,” “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 including, without limitation: the impact of the
current COVID-19 pandemic and government responses thereto, on the U.S. economy, including the markets in which we
operate; actions that we and our customers take in response to these factors and the effects such actions have on our operations,
products, services and customer relationships; and the risk that the Small Business Administration may not fund some or all
Paycheck Protection Program (PPP) loan guaranties, 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, 2019 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.
3 Meridian
Corporation
Company Snapshot
1) As of and for the quarter ended December 31, 2020, per February 1, 2021 press release.
2) Includes PPP loans, loans held for sale and loans held for investment.
3) Excludes loans at fair value, loans held for sale and PPP loans. A Non-GAAP measure. Refer to Appendix for Non-GAAP to GAAP reconciliation.
4) Excludes PPP loans and PPPLF borrowings. A Non-GAAP measure. Refer to Appendix for Non-GAAP to GAAP reconciliation.
Overview Financial Highlights 4QTR 2020¹
Balance Sheet ($ in Millions)
Asset Quality (%)
Profitability (%)
State-chartered commercial bank established in
July 2004 and headquartered in suburban
Philadelphia.
Serves Pennsylvania, New Jersey, Delaware and
Maryland with more than 20 offices and a full suite
of financial products and services.
Meridian specializes in business and industrial
lending, retail and commercial real estate lending,
electronic payments, along with a broad menu of
high-yield depository products supported by robust
online and mobile access.
Noninterest income businesses include Meridian
Mortgage , SBA Lending and Meridian Wealth
Partners.
Successful Meridian Mortgage division recently
expanded into Maryland/DC region.
®
®
Assets 1,720 $
Loans & Leases2 1,514 $
Deposits 1,241 $
Equity 142 $
NPA's/Assets 0.46%
Nonaccrual Loans/Loans 0.52%
Reserves/Loans3 1.65%
NCOs (recoveries)/Loans 0.00%
4 Meridian
Corporation
Current Meridian Franchise Footprint
Geographic Footprint Branches Mortgage LPOs
Meridian Corporation
Holding Company
Meridian Bank
100% Owned Subsidiary
Organizational Structure
Meridian Wealth
Partners
100% Owned Subsidiary
Apex Realty
100% Owned OREO
Subsidiary
Meridian Land
Settlement
Services
100% Owned Subsidiary
Meridian
Equipment
Finance
100% Owned Subsidiary
5 Meridian
Corporation
Overview of Business Lines
Commercial & Industrial Lending
– Lines of credit, term loans
– Owner-occupied commercial
mortgages
– Leasing through Meridian
Equipment Finance®
Commercial Real Estate Lending
– Commercial mortgages
– Construction loans
– Land development loans
Consumer Lending
– Home equity loans / lines of
credit
Deposit & Treasury management
services
SBA Lending
– 7(a), 504, franchise,
acquisition loans
– Top 4 originator in Eastern PA
district
Core Banking Meridian Mortgage Wealth Management and
Advisory Services
Typical residential lending to
homeowners and small scale
investors
Over 85% of loans are
originated in the PA, NJ, DE,
VA, MD and DC markets
– Majority of these loans
were for 1-4 family
housing
– 99% are sold
Originations were 60% refi /
40% purchase in 2020.
Historically, 70% purchase and
30% refi
Originations totaled $868
million for 4Q 2020, $2.4 billion
for YR 2020 and $603 million
for YR 2019
Meridian Wealth Partners, LLC
is a registered investment
advisor and wholly-owned
subsidiary of the Bank
Provides a comprehensive array
of wealth management services
and trusted guidance
$960 Million AUM as of Dec 31,
2020
Clients include:
– Professionals
– High net worth individuals
– Company benefit plans
Provable synergies between the
core bank and wealth
businesses
6 Meridian
Corporation
Deep and Experienced Leadership
Meridian
Executive
Management
Chris Annas
Chairman of the Board
President & CEO
Founder, Chairman, President and Chief Executive Officer of the Bank since its opening in 2004
Held executive positions with various regional banks in the Delaware Valley since 1986
Over 35 years of banking experience in various commercial lending capacities
Denise Lindsay
EVP & CFO, Director
Manages all corporate accounting functions and is responsible for asset-liability management, financial
reporting, tax planning and reporting, budgeting and investor relations
Over 25 years experience in bank financial management, Certified Public Accountant, former Senior
Accountant for KPMG, LLP and member of the Financial Managers Society and PICPA
Joseph Cafarchio
EVP & CCO
Heads credit underwriting and administration
Over 35 years of experience in commercial lending in the region, including five years at the Federal Reserve
Bank of Philadelphia
Previously Chief Lending Officer from the Bank's inception until January 2017 when the Bank split the role of
Chief Lending Officer and Chief Credit Officer
Charles D. Kochka
EVP & CLO
Has served as leader of commercial and consumer lending at the Bank since 2017
Has more than 38 years experience in commercial lending in the Delaware Valley
Randy J. McGarry
SVP & CIO
Responsible for executing technology and operational solutions aligned with corporate strategy
Over 25 years of banking experience with expertise in IT strategy, technology architecture, network
infrastructure, core system conversions and merger & acquisitions
Member of the Greater Philadelphia Senior Executive Group and the Society for Information Management
Clarence Martindell
EVP & CRE Lending
In charge of growing and maintaining a strong commercial real estate loan portfolio, along with growing the
Bank’s title business and handling the disposition of all REO
Over 25 years of real estate lending experience.
Prior to joining the Bank, was the Director of Finance for Westrum Development Co., a regional homebuilder
T. Benjamin Marsho
EVP & Risk & Treasury
Oversees risk management, treasury, compliance and BSA / AML
Over 25 years of banking experience, including 5 years at the Office of Comptroller of the Currency, nearly
10 years as Controller at a publicly traded community bank and 5 years in investment and treasury
management of a $50 billion multinational bank
7 Meridian
Corporation
4QTR 2020 Highlights
Net income was $9.0 million for the quarter, or $1.48 per diluted share, driven by continued strong loan and
deposit growth, and robust refinance activity in the mortgage segment.
For the year, Meridian generated revenues of $149.6 million and net income of $26.4 million. This resulted in
an ROE of 21% and EPS of $4.27.
Loan growth for the quarter equaled 3% (ex PPP and residential held-for-sale), and totaled 13% year over year.
Growth was centered in C&I, including the new leasing division and SBA, and CRE.
Non-interest income increased $885 thousand, or 3.1%, over 3Q - driven by continued strong mortgage
banking revenue, wealth management advisory fees and SBA income.
Mortgage banking net revenue increased $9.3 million for the year, or 42.4%, due to higher levels of
originations and refinancings stemming from the historically low rate environment throughout much of 2020,
aided by the expansion of our mortgage division into Maryland.
Provision for loan losses for the quarter was $1.2 million. ALLL to total loans, excluding loans at fair value and
PPP loans, was 1.65% at December 31, 2020.
Total assets decreased $38.5 million, or 2.2%, quarter over quarter to $1.7 billion due mainly to the payoff of
$64.5 million in PPP loans. Total loans overall were $1.5 billion at December 31, 2020.
The Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable February 22,
2021, to shareholders of record as of February 11, 2021.
8 Meridian
Corporation
Consistent Balance Sheet Growth
1) Includes loans held for sale and held for investment.
Total Assets ($M) Loans and Leases1 ($M)
Total Deposits ($M) Consolidated Equity ($M)
$856
$998
$1,151
$1,303
$1,579
$1,759 $1,720
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
$730
$876
$998
$1,129
$1,381
$1,532 $1,514
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
$627
$752
$851
$994
$1,167 $1,209 $1,241
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
$101
$110
$121 $118
$126 $132
$142
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
9 Meridian
Corporation
Summary Income Statement1
1) Decrease in 2017 profitability due to a decrease in net operating profit from mortgage division ($1.8M); 2017 tax reform resulted in a one-time charge to tax
expense of $737K.
Net Interest Income ($M) Non-interest Income ($M)
Non-interest Expense ($M) Net Income ($M)
2017 2018 2019 2020 1Q 20 2Q 20 3Q 20 4Q 20
Wealth $2 $3 $3 $3 $1 $1 $1 $1
Mortgage $30 $24 $22 $57 $6 $13 $16 $21
Bank $23 $24 $28 $33 $7 $8 $9 $10
2017 2018 2019 2020 1Q 20 2Q 20 3Q 20 4Q 20
Wealth $0.3 $1 $0.3 $0.5 $0.2 $0.1 $0.1 $0.1
Mortgage $0.3 $1 $2 $15 $1 $3 $7 $4
Bank $2 $6 $9 $11 $2 $3 $2 $5
2017 2018 2019 2020 1Q 20 2Q 20 3Q 20 4Q 20
Wealth $3 $4 $4 $4 1.02 0.87 0.95 1.03
Mortgage $30 $25 $24 $75 $7 $16 $25 $27
Bank $2 $2 $4 $8 $1 $1 $3 $2
2017 2018 2019 2020 1Q 20 2Q 20 3Q 20 4Q 20
Wealth $0.1 $0.3 $0.1 $(0.0) $(0.0) $(0.0) $(0.0) $(0.0)
Mortgage $0.4 $1 $0.3 $2 $0.2 $0.5 $1 $1
Bank $28 $32 $36 $47 $10 $11 $12 $14
10 Meridian
Corporation
Consistent Revenue Growth ($M)
$2.6
$3.7
$3.5
$3.9
$31.0
$26.2
$25.1
$79.0
$36.3
$44.7
$55.3
$66.7
$- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0
2017
2018
2019
2020
Bank Mortgage Wealth
Total Revenue:
FY 2020 - $149.6
FY 2019 - $83.9
FY 2018 - $74.6
FY 2017 - $70.0
11 Meridian
Corporation
Capital Summary
Bank Holding Company Regulatory Minimum 2
Tangible Common Equity / Tangible Common Assets (%)1 Tier 1 Leverage Ratio (%)
Tier 1 Capital Ratio (%) Total Capital Ratio (%)
1) A Non-GAAP measure. Refer to Appendix for Non-GAAP to GAAP reconciliation. 2) To be well capitalized
11.27% 10.56%
13.52%
10.25%
11.27% 10.53% 10.11%
7.99%
6.50% 6.50% 6.50% 6.50%
2017 2018 2019 2020
12.86%
11.76%
14.98%
13.15% 12.86% 11.72%
11.21% 10.22%
8.00% 8.00% 8.00% 8.00%
2017 2018 2019 2020
15.53%
13.66%
16.09%
14.54%
15.53%
13.66%
16.10%
14.55%
10.00% 10.00% 10.00% 10.00%
2017 2018 2019 2020
12.37%
11.20%
14.08%
11.54%
12.37%
11.16% 10.55%
8.96%
5.00% 5.00% 5.00% 5.00%
2017 2018 2019 2020
12 Meridian
Corporation
Segment Information
1) A Non-GAAP measure. Refer to Appendix for Non-GAAP to GAAP reconciliation.
Pre-tax/pre-provision income by segment percentage
for three months ended December 31, 2020
Pre-tax/pre-provision (PTPP)1 income
decreased 18.2% over 3Q 2020, due
mostly to a lower contribution from the
mortgage division
Mortgage Banking income before tax
decreased $2.7 million or 28.9% due
mostly to a $2.6 million increase in
salary overhead
Bank PTPP decreased $237 thousand
or 3.6%. Net interest income was up
$2.0 million, but was offset by lower
gains on sales of investments of $1.3
million as well as higher levels of
professional and employee costs
Wealth Management PTPP increased
$13 thousand or 9.0% over 3Q due to
an increase in AUM of $74 Million,
partially offset by higher marketing
and employee costs
48% 51%
1%
Bank Mortgage Banking Wealth Management
(dollars in thousands) 4Q 2020 3Q 2020 Change
Pre-tax/pre-provision Income: 1
Bank 6,294 6,531 (237)
Mortgage Banking 6,589 9,266 (2,677)
Wealth Management 157 144 13
Total pre-tax/pre-provision Income 13,040 $ 15,941 $ (2,901) $
13
Meridian
Corporation
Mortgage Division Historical Performance ($M)
Source: Company documents
Historically profitable
2020 expansion into MD
market, hired team
2020 originations $2.4B
4Q originations $868 million
4Q MTG revenue $31
million;
2020 YR MTG revenue $76
million
2020 YR net earnings $14.8
million
2020 originations were 60%
refinance and 40%
purchase market
Historically purchase/refi
mix greater than 70/30
$1.0 $1.3 $1.3
$2.2 $1.5
$0.3 $1.3
$1.6
$14.8
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$-
$500
$1,000
$1,500
$2,000
$2,500
2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020
YTD Income ($M)
YTD Loan Originations ($M)
YTD Volume YTD Income
14 Meridian
Corporation
$1.5 Billion total gross loans and leases
as of December 31, 20201
– $198.6 M net PPP loans
CRE concentration of 172% of capital as
of December 31, 2020
Average yield on loans of 4.56% for 4Q
2020
Average yield on loans, excluding PPP
loans, of 4.59% for 4Q 2020
Balanced Loan Portfolio
December 31, 2020
1) Total loans held for investment and held for sale, net of fees and costs.
Source: Company documents
Total Loans: $1.5 Billion
39%
9%
27%
16%
4% 5%
CRE C&D C&I PPP Residential HELOC/consumer
Commercial Loans by Industry
December 31, 2020
Meridian
Corporation Note: Balances do not include consumer loans; HELoC, and 1st mortgages.
Source: Company documents
15
16 Meridian
Corporation
Commercial Real Estate Loans by Industry
December 31, 2020
17 Meridian
Corporation
Construction and Land Development
Source: Company documents
$139.5 M in construction and land
development loans as of December
31, 2020
– $25.3 M land development
Average yield on loans of 6.33% for
4Q 2020
73% of total capital as of December
31, 2020
19%
43%
8%
17%
12% 1%
Pre-sold residential Spec residential
Rental 1-4 houses Rental 5+ houses
Mixed use Other
December 31, 2020
18 Meridian
Corporation
Shared National Credits
December 31, 2020
Source: Company documents
Managed by experienced (30 yrs) large corporate
lender
Buy/participate in more secure, less yielding
facilities
Purposeful industry diversification
Provides added liquidity on balance sheet
Yielded 3.02% in 4Q 2020
19 Meridian
Corporation
Asset Quality
1) Nonperforming assets defined as loans 90+ days past due and still accruing, nonaccrual loans and leases and OREO, excluding performing TDRs.
2) Excludes loans held for sale and, for 2Q to 4Q 2020, PPP loans. A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation.
NPAs¹ / Assets (%) Reserves / Loans2 (%)
Nonaccrual Loans / Loans (%) Net Chargeoffs / Average Loans (%)
0.42%
0.39%
0.30%
0.51%
0.47%
0.45%
0.46%
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
0.96%
0.97%
1.00%
1.10%
1.27%
1.59%
1.65%
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
0.43%
0.45%
0.34%
0.58%
0.54%
0.52%
0.52%
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
0.13%
0.03%
(0.06%)
0.00% 0.00% 0.01%
0.00%
2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20
COVID-19 Impact to ALLL
20 Meridian
Corporation
Industry Exposure & Loan Assistance Update
Source: Company documents
Overall program represents $150.5 million or 14.0%
of total loans1 at December 31, 2020
At December 31, 2020, $24.2 million, or 2.3% of
total loans1 are still in active relief
By December 31, 2020, $126.3 million of loans had
returned to their original payment
Pandemic Relief Summary by Portfolio Significantly Impacted Industries
(dollars in thousands)
Loan Portfolio1 Portfolio Balance Total2 Active3
Commercial mortgage 485,683 $ 96,712 $ 19,836 $
Commercial and industrial 292,790 22,727 -
Constr & land development 139,972 24,847 4,343
Home equity 64,986 1,488 -
Residential mortgage 40,272 4,563 -
Small business 49,542 143 -
Consumer 511 - -
Total 1,073,758 $ 150,480 $ 24,179
1 Excludes PPP loans and loans at fair value
2 Represents the portfolio balance at December 31, 2020 of loans that entered
into COVID-19 pandemic related payment deferral arrangements at any time
3 Represents the portion of portfolio balance as of December 31, 2020 that have
active deferral arrangements
21 Meridian
Corporation
Allowance for Loan Losses
December 31, 2020
ALLL Coverage by Portfolio ALLL Coverage Ratios
•Provision for loan losses was $1.2 million for 4Q 2020
• ALLL to non-performing loans ratio increased to 224.8%
• ALLL to total loans* ratio increased to 1.65% at December
31, 2020, up from 1.59% at September 30, 2020, and up
from 1.00% at December 31, 2019
1.00%
1.10%
1.27%
1.59% 1.65%
0.34%
0.58% 0.54% 0.52% 0.52%
0.30%
0.51% 0.47% 0.45% 0.46%
281.2%
168.3% 170.6% 209.5% 224.8%
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
4Q 19 1Q 20 2Q 20 3Q 20 4Q 20
Allowance Ratios
Allowance for loan losses / Total loans held for investment
Non-performing loans/Total loans
Non-performing assets/Total assets
Alowance for loan losses/Non-performing loans
(dollars in thousands)
Loan Portfolio* Portfolio
Balance ALLL Coverage
Commercial mortgage 485,684 $ 7,463 $ 1.54%
Commercial and industrial 292,791 5,814 1.99%
Constr & land development 139,972 2,421 1.73%
Home equity 64,986 434 0.67%
Residential mortgage 40,272 372 0.92%
Small business 49,542 1,259 2.54%
Consumer 511 4 0.76%
Total 1,073,758 $ 17,767 $ 1.65%
*Excluding PPP loans and loans at fair value
December 31, 2020
(SBA)
22 Meridian
Corporation
Investment Portfolio Composition
December 31, 2020
Source: Company documents
$131.1 million total investments as of
December 31, 2020
– 95.0% available-for-sale
– 5.0% held-to-maturity
Average TEY of 2.35% year-to-date
Realized gains of $1.3 million in 3Q
Unrealized gain $2.3 million at
December 31, 2020
Conservative investment portfolio
– 100% investment grade
Total Securities: $131.1 Million
21%
26% 39%
11%
3%
US asset backed US government agency
State & municipal - tax free State & municipal - taxable
Other
23 Meridian
Corporation
$1.2B total deposits as of December 31,
2020
Diversified deposit mix
– 33% transaction accounts
– 16% noninterest-bearing deposits to
total deposits
– Average cost of total deposits of
0.61% for 4Q 2020
Deposit Composition
December 31, 2020
Source: Company documents
Total Deposits: $1.2 Billion
16%
17%
46%
19%
2%
Non-interest-bearing deposits Interest checking accounts
Money market/savings accounts Time deposits
Jumbo time deposits
24 Meridian
Corporation
Time Deposit Repricing Opportunities
December 31, 2020
Source: Company documents
$96M time deposits
matured during Q4 2020
Cost of CDs and cost of
funds improved by 39
bps and 11 bps,
respectively
$73M time deposits with
a blended cost of 1.47%
is maturing over next 3
months
Potential to shed
another 25 bps on total
time deposit cost, next
quarter $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
1-3
MONTHS
3-6
MONTHS
6-9
MONTHS
9-12
MONTHS
12-18
MONTHS
18-24
MONTHS
>2 YRS >3 YRS
0.55%
0.37%
0.33%
0.18%
0.41% 0.07% 0.12%
1.47%
25 Meridian
Corporation
Appendix
26 Meridian
Corporation
Historical Financial Highlights
1) Includes loans held for sale and held for investment.
2) Includes loans held for investment (excluding loans at fair value and PPP loans).
3) A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation.
Note: 2015-2017 Financials are at bank level; Meridian Corporation Holding Company formed 3Q2018.
Dollar Values in Thousands, Except Per Share Amounts 2017Y 2018Y 2019Y 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20
Balance Sheet
Total Assets $ 856,035 $ 997,480 $ 1,150,019 $ 1,150,019 1,303,442 $ 1,579,083 $ 1,758,648 $ 1,720,197 $
Loans1 729,661 875,801 998,414 998,414 1,129,067 1,380,659 1,531,996 1,513,963
Deposits 627,109 752,130 851,168 851,168 993,753 1,166,697 1,209,024 1,241,335
Gross Loans / Deposits 116.35% 116.44% 117.30% 117.30% 113.62% 118.34% 126.71% 121.96%
Capital
Total Equity $ 101,363 $ 109,552 $ 120,695 $ 120,695 $ 118,033 125,518 $ 131,832 $ 141,622 $
Tangible Common Equity / Tangible Assets - HC 3 11.27% 10.53% 10.12% 10.12% 8.73% 7.68% 7.26% 7.99%
Tangible Common Equity / Tangible Assets - Bank 3 11.27% 10.53% 13.52% 13.52% 11.77% 10.15% 9.51% 10.25%
Tier 1 Leverage Ratio - HC 12.37% 11.16% 10.55% 10.55% 9.80% 8.06% 8.77% 8.96%
Tier 1 Leverage Ratio - Bank 12.37% 11.16% 14.08% 14.08% 13.22% 10.71% 11.53% 11.54%
Total Capital Ratio - HC 15.53% 13.66% 16.10% 16.10% 14.80% 14.91% 14.71% 14.55%
Total Capital Ratio - Bank 15.53% 13.66% 16.09% 16.09% 14.84% 14.91% 14.75% 14.54%
Commercial Real Estate Loans / Total RBC 155.83% 183.80% 176.97% 176.97% 196.49% 182.99% 183.92% 172.15%
Earnings & Profitability
Net Income $ 3,032 $ 8,163 $ 10,481 $ 3,137 $ 2,516 $5,713 9,212 $ 8,997 $
ROAA 0.39% 0.90% 1.01% 1.13% 0.87% 1.56% 2.29% 2.09%
ROAE 3.97% 7.77% 9.09% 10.41% 8.40% 19.16% 29.30% 27.68%
Net Interest Margin (NIM)(TEY) 3.93% 3.80% 3.65% 3.61% 3.49% 3.27% 3.26% 3.59%
NIM (TEY, excluding PPP loans and PPPLF borrowings)3 3.93% 3.80% 3.65% 3.61% 3.49% 3.41% 3.47% 3.52%
Non-Int Inc. / Avg. Assets 4.69% 3.58% 3.19% 3.20% 3.60% 5.63% 7.23% 6.97%
Efficiency Ratio 87.8% 81.4% 79.2% 77.4% 74.5% 70.2% 62.0% 71.0%
Asset Quality
Nonaccrual Loans / Loans 0.43% 0.45% 0.34% 0.34% 0.58% 0.54% 0.52% 0.52%
NPAs / Assets 0.42% 0.39% 0.30% 0.30% 0.51% 0.47% 0.45% 0.46%
Reserves / Loans2, 3 0.96% 0.97% 1.00% 1.00% 1.10% 1.27% 1.59% 1.65%
NCOs / Average Loans 0.13% 0.03% (0.06%) (0.03%) 0.00% 0.00% 0.01% 0.00%
Yield and Cost
Yield on Earning Assets (TEY) 4.83% 5.14% 5.30% 5.18% 4.98% 4.24% 4.07% 4.28%
Yield on Earning Assets (TEY), excluding PPP loans)3 4.83% 5.14% 5.30% 5.18% 4.98% 4.50% 4.39% 4.27%
Cost of Deposits 0.79% 1.29% 1.67% 1.53% 1.41% 0.90% 0.75% 0.61%
Cost of Interest-Bearing Liabilities 1.16% 1.69% 2.10% 1.99% 1.87% 1.30% 1.09% 0.95%
For the Quarter Ended For the Year Ended
27 Meridian
Corporation
Reconciliation of Non-GAAP Financial Measures
Tangible common equity to tangible assets
Management uses the measure tangible common equity to tangible assets to assess our capital strength. We believe that this non-GAAP financial measure is useful to
investors because, by removing the impact of our preferred stock, goodwill and other intangible assets, it allows investors to more easily assess our capital adequacy.
This non-GAAP financial measure should not be considered a substitute for any regulatory capital ratios and may not be comparable to other similarly titled measures
used by other companies. The table below provides the non-GAAP reconciliation for our tangible common equity to tangible assets:
(dollars in thousands)
Meridian Corporation 2017Y 2018Y 2019Y 1Q 20 2Q 20 3Q 20 4Q 20
Tangible common equity ratio:
Total stockholders' equity 101,363 109,552 120,695 118,033 125,518 131,832 141,622
Less:
Goodwill 899 899 899 899 899 899 899
Intangible assets 4,596 4,147 3,874 3,805 3,737 3,669 3,601
Tangible common equity 95,869 104,507 115,922 113,329 120,882 127,264 137,122
Total assets 856,035 997,480 1,150,019 1,303,442 1,579,083 1,758,648 1,720,197
Less:
Goodwill 899 899 899 899 899 899 899
Intangible assets 4,596 4,147 3,874 3,805 3,737 3,669 3,601
Tangible assets $ 850,540 992,434 1,145,246 1,298,738 1,574,447 1,754,080 1,715,697
Tangible common equity ratio 11.27% 10.53% 10.12% 8.73% 7.68% 7.26% 7.99%
(dollars in thousands)
Meridian Bank 2017Y 2018Y 2019Y 1Q 20 2Q 20 3Q 20 4Q 20
Tangible common equity ratio:
Total stockholders' equity 101,363 109,552 159,643 157,544 164,446 171,298 180,288
Less:
Goodwill 899 899 899 899 899 899 899
Intangible assets 4,596 4,147 3,874 3,805 3,737 3,669 3,601
Tangible common equity 95,869 104,507 154,870 152,840 159,810 166,730 175,788
Total assets 856,035 997,480 1,149,979 1,303,282 1,579,083 1,758,244 1,720,166
Less:
Goodwill 899 899 899 899 899 899 899
Intangible assets 4,596 4,147 3,874 3,805 3,737 3,669 3,601
Tangible assets $ 850,540 992,434 1,145,206 1,298,578 1,574,447 1,753,676 1,715,666
Tangible common equity ratio 11.27% 10.53% 13.52% 11.77% 10.15% 9.51% 10.25%
28 Meridian
Corporation
Reconciliation of Non-GAAP Financial Measures
Dollar Values in Thousands
1Q 20 2Q 20 3Q 20 4Q 20
Reconciliation of Net Interest Margin (TEY, exluding PPP loans and PPPLF borrowings)
Net interest margin (TEY) 3.49% 3.27% 3.26% 3.59%
Impact of PPP loans and PPPLF borrowings — 0.14% 0.21% (0.07%)
Net interest margin (TEY, excluding PPP loans and PPPLF borrowings) 3.49% 3.41% 3.47% 3.52%
Reconciliation of Reserves / Loans
Allowance for loan losses / Total loans held for investment 1.08% 1.01% 1.27% 1.38%
Less: Impact of loans held for investment - fair valued 0.02% 0.00% 0.00% 0.00%
Less: Impact of PPP loans — 0.26% 0.32% 0.27%
Allowance / Total loans held for investment (excl. loans at fair value and PPP loans) 1.10% 1.27% 1.59% 1.65%
Reconciliation of Yield on Earning Assets
Yield on earning assets (TEY) 4.98% 4.24% 4.07% 4.28%
Impact of PPP loans — 0.26% 0.32% (0.01%)
Yield on earning assets (TEY, excluding PPP loans) 4.98% 4.50% 4.39% 4.27%
1Q 20 2Q 20 3Q 20 4Q 20
Income before inocme tax expense 3,271 7,403 11,985 11,877
Add: Provision for loan losses 1,552 1,631 3,956 1,163
Pre-tax, pre-provision income $4,823 $9,034 $15,941 $13,040
Reconciliation of PPP Related Non-GAAP Measures
Reconciliation of Pre-tax, Pre-Provision Non-GAAP Measure
For the Quarter Ended
For the Quarter Ended
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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