Meridian Corporation Reports Net Income of $9.2 Million, or $1.51 Per Diluted Share, in 3Q 2020 and Declares Quarterly Cash Dividend of $0.125 Per Share

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[{"type":"text","content":"MALVERN, Pa., Oct. 26, 2020 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:\n 2020 2020 2020 2019 (Dollars in thousands, except per share data)3rd QTR 2nd QTR 1st QTR 3rd QTR Income: Net income - consolidated$ 9,212 $ 5,713 $ 2,516 $ 3,317 Diluted earnings per common share$ 1.51 $ 0.94 $ 0.39 $ 0.52 “Meridian achieved historic earnings for the third quarter, with annualized return on average equity of 29.30% and annualized return on average assets of 2.29%. This resulted from cyclical and seasonally-high mortgage production, as well as growth in our core commercial loan business, including SBA loan and sale activities,” said Christopher J. Annas, Chairman and CEO. “The strength in housing throughout our markets in PA/NJ/DE/MD has provided lending opportunities in our construction business, and tremendous demand in mortgage. Despite the pandemic, our consistent outreach efforts are resulting in double digit commercial loan growth, which includes our new leasing business. We have also benefited from executing PPP loans for non-customers who bring their other business to us.” “The mortgage business, which we expanded this year by bringing on a high-performing team in the MD/DC region, has been profitable for us each year since inception in 2010. It’s been a good hedge recently, as declining rates boost the refinance and purchase business while it narrowed our net interest margin. With an estimated $10 trillion in refi-eligible mortgage loans remaining, we think the business can stay robust for the next few quarters.” “We are closely watching certain modified loans and other loans we consider at risk due to the COVID-19 induced economic slowdown. We added $4.0 million in loan loss provisions during the quarter to address the general deterioration in economic conditions,” Annas continued. The ratio of allowance for loan losses to total loans held for investment, was 1.27% as of September 30, 2020, up from the 0.98% recorded as of December 31, 2019. The ratio of allowance for loan losses to total loans held for investment, excluding loans at fair value and PPP loans (a non-GAAP measure), was 1.59% as of September 30, 2020, up from the 1.00% recorded as of December 31, 2019. COVID-19 Pandemic Response Update SBA Paycheck Protection Program. As of September 30, 2020, Meridian has assisted 928 clients in need of s...

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