Business
Meridian Corporation Reports Net Income of $2.0 Million, or $0.31 Per Diluted Share, in 1Q 2019
MALVERN, Pa., May 23, 2019 /PRNewswire/ -- Meridian Corporation (Nasdaq: MRBK) today reported net income of $2.0 million, or $0.31 per diluted share for the
About this update from Meridian Corporation
[{"type":"text","content":"MALVERN, Pa., May 23, 2019 /PRNewswire/ -- Meridian Corporation (Nasdaq: MRBK) today reported net income of $2.0 million, or $0.31 per diluted share for the first quarter of 2019, which generated a return on average assets and return on average equity of 0.83% and 7.32%, respectively. Meridian also reported a prior period adjustment of $315 thousand, net of tax, or $0.05 per diluted share for expenses related to mortgage loan state licensing issues.\n\"Meridian had a strong first quarter as earnings improved 58% to $2.0 million compared to 1Q 2018,\" said Christopher J. Annas, Chairman and CEO. \"Loan balances were 16.5% higher at the end of the first quarter compared to a year ago, contributing to our higher profitability. Net income and retained earnings were negatively affected by a combined $486 thousand in current and prior periods associated with a previously announced licensing issue in Maryland where mortgages were originated. We delayed filing our first quarter 2019 financial results as a result of this matter and expect to file our Form 10-Q on or about May 24, 2019. With this licensing issue behind us, the mortgage division looks to have a profitable year.\"\n\"The SBA and private banking teams both generated loans in the first quarter after joining Meridian in late 2018, and we are excited about their prospects going forward. In particular, the SBA team is addressing a market that Meridian did not participate in, and the loan growth and potential loan sale income should more than offset their expense in 2019.\" \n\"Our Delaware Valley market has favorable population trends according to recent studies, which are contributing to better economics in housing and small business formation. We participate deeply in both these segments and are excited about continued strength in 2020 and beyond.\" \nSelect Condensed Financial Information\nReconciliation of Non-GAAP Financial Measures\nMeridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate performance trends and the adequacy of common equity. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation o...