Meridian Corporation Reports Net Income of $5.7 Million, or $0.94 Per Diluted Share, in 2Q 2020 and Announces First Ever Quarterly Cash Dividend of $0.125 per Share

About this update from Meridian Corporation

[{"type":"text","content":"MALVERN, Pa., July 27, 2020 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:\n 2020 2020 2019 (Dollars in thousands, except per share data)2nd QTR 1st QTR 2nd QTR Income: Net income - consolidated$ 5,713 $ 2,516 $ 2,022 Diluted earnings per common share$ 0.94 $ 0.39 $ 0.31 “Highlighting our second quarter results was the extraordinary production in new purchase and refinance mortgage activity, driven by historically low interest rates. At the same time, SBA Paycheck Protection Program loans generated during the quarter substantially added to loan and deposit growth, which also contributed to strong second quarter earnings,” said Christopher J. Annas, Chairman and CEO. “The effect of the pandemic on our employees, customers and communities remains our primary concern, and we believe the full economic impact has yet to be realized. Since the start of the pandemic, we implemented limited branch hours and appointment scheduling for our customers, as well as remote working for employees to keep our communities safe. Our technology platform has allowed these functions to be seamless, as over 95% of our customers already utilize our online banking channels. With our strong capital base, leading technology and commitment to customer service, we will continue to help our customers navigate through this economic crisis. “We are closely watching certain modified loans and other loans we consider at risk due to the COVID-19 induced economic slowdown. Additionally, we added $1.6 million in loan loss provisions during the quarter to address the general deterioration in economic conditions, which is the same amount taken in the preceding quarter,” Annas continued. The allowance for loan losses to loans held for investment, excluding loans at fair value and PPP loans, increased to 1.27% of total loans at the end of the second quarter of 2020, compared to 1.10% three months earlier. “Demonstrating the strength of our Company, we are excited to begin paying a quarterly cash dividend of $0.125 per share to reward our shareholders a regular return on their investment. Initiating a quarterly cash dividend demonstrates our continued confidence in Meridian’s long-term prospects,” added Annas. COVID-19 Pandemic Response Update SBA Paycheck Protection Program. As of June 30, 2020 Meridian has assisted 928 clients in need of short-...

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