Meridian Corporation Reports Net Income of $2.5 Million, or $0.39 Per Diluted Share, in 1Q 2020

About this update from Meridian Corporation

[{"type":"text","content":"MALVERN, Pa., April 27, 2020 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:\n 2020 2019 2019(Dollars in thousands, except per share data)1st QTR 4th QTR 1st QTRIncome: Net income - consolidated$2,516 $3,137 $2,006Diluted earnings per common share$0.39 $0.49 $0.31 “Our first quarter operating performance was excellent, with robust loan and deposit growth and significantly higher seasonal mortgage originations. However, our results were disrupted by the pandemic and the ensuing economic crisis that has become our highest priority,” said Christopher J. Annas, Chairman and CEO. “In mid-March we reacted to the pandemic by reducing branch lobby hours, setting appointment-only visits, and scheduling employees to work remotely. Over 95% of our customers already prioritize the online banking channels, so activity has been business as usual from an operational standpoint. Our lending teams have done an excellent job of reaching out to borrowers that have been affected by the economic decline and offering assistance as needed. We have worked with our business customers to file applications for the Paycheck Protection Program (“PPP”), satisfying nearly 100% of requests for over $195 million in loans in round one. In anticipation of potential future credit issues, we increased our loan loss provision by $1.6 million during the quarter, which is significantly higher than the quarterly provisions booked over the last few years. With our strong capital base, leading technology and commitment to customer service, we will continue to help our customers navigate through these challenging times.” Covid-19 Pandemic Response Industry Exposure. The governor of Pennsylvania has ordered all non-essential businesses to close, mandated Stay-at-Home orders, and closed schools and universities. While the economic impact of these steps is widespread, some industries will be most acutely affected by the current business decline. Meridian has identified various industries that are substantially impacted by these mandates: retail, hospitality, and residential spec construction. At March 31, 2020, Meridian’s exposure as a percent of the total loan portfolio to these industries was 3.2%, 2.4%, and 6.2%, respectively.SBA Payroll Protection Program. On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“...

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