Slide 1: Q3'2022 Investor Presentation
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 NASDAQ: MRBK Q3'2022 Investor Presentation
Slide 2: Forward-Looking Statements
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 2Meridian 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 Se
Slide 3: Company Snapshot
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 3Meridian Corporation COMPANY SNAPSHOT (1) Includes home equity loans, residential mortgage loans held in portfolio and individual consumer loans. Profile and Business Lines • Core Banking: C&I, CRE, construction, SBA, and consume
Slide 4: Geographic Footprint
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 4Meridian Corporation GEOGRAPHIC FOOTPRINT Branches Mortgage LPOs • Serves Pennsylvania, New Jersey, DE & MD • Philadelphia MSA is 8th largest MSA in the US • Expansion into growing central Maryland MSA Regional Market • HQ in Mal
Slide 5: Investment Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 5Meridian Corporation INVESTMENT HIGHLIGHTS • Deliver strong balance sheet growth with above peer profitability. • "Go to" bank in the Delaware Valley - provides financial services across the lending spectrum. • Financial services
Slide 6: Q3'2022 Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation Q3'2022 HIGHLIGHTS 1) As of and for the quarter ended September 30, 2022, per October 31, 2022 press release. 2) Includes PPP loans, loans held for sale and loans held for investment. 3) A Non-GAAP measure. S
Slide 7: Summary Income Statement
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 7Meridian Corporation SUMMARY INCOME STATEMENT • Net interest income was up $475 thousand, or 2.7%, Q3'2022 over Q2'2022 and up $4.8 million, or 10.3%, YTD 2022 over YTD 2021 • Bank segment represents 100.6% of pre-tax, pre-provis
Slide 8: Net Interest Margin Trend
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 8Meridian Corporation Net Interest Margin Trend 3.83% 3.83% 3.89% 4.07% 4.01% 3.73% 3.76% 3.82% 3.95% 3.99% 0.10% 0.07% 0.07% 0.02% PPP Impact NIM Ex PPP Q3'2021 Q4'2021 Q1'2022 Q2'2022 Q3'2022 (0.50)% —% 0.50% 1.00% 1.50% 2.00% 2
Slide 9: Non-Interest Income
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 9Meridian Corporation NON-INTEREST INCOME Non-interest income decreased $179 thousand or 1.7% from Q2'2022 • Mortgage banking revenue decreased from Q2'2022, down $633 thousand, or 7.7%, including the fair value and hedging impact
Slide 10: Mortgage Performance
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 10Meridian Corporation MORTGAGE PERFORMANCE • Margin: ◦ Q3'22 margin yield 2.67%, up 43 bps over Q2'22 yield of 2.23% ◦ Q3'22 loans sold $251 million, down $57 million over Q2'22 • Volume continues to be impacted by: ◦ Higher mort
Slide 11: Non-Interest Expense
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 11Meridian Corporation NON-INTEREST EXPENSE Non-Interest Expense increased $0.6 million or 2.8% from Q2'2022 • Salaries and employee benefits expense was $13.4 million, an increase of $434 thousand, or 3.4%. $519 thousand of the i
Slide 12: Loan Portfolio Diversification
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 12Meridian Corporation LOAN PORTFOLIO DIVERSIFICATION 90% CommercialSeptember 30, 2022
Slide 13: Asset Quality
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 13Meridian Corporation 1.65% 1.65% 1.58% 1.52% 1.46% 1.38% 1.27% 1.20% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 0.00% 0.50% 1.00% 1.50% ASSET QUALITY 1) Includes loans held for sale and held for investment. 2) Excludes loan
Slide 14: Strong Capital Position
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 14Meridian Corporation STRONG CAPITAL POSITION • All capital ratios(1) exceed well capitalized regulatory requirements ◦ Bank level - Community Banking Leverage Ratio of 10.52% compared to minimum of 9.0% - $28.6 million of excess
Slide 15: Appendix - Historical Financial Highlights and Reconciliations of Non-GAAP Measures
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 15Meridian Corporation APPENDIX - HISTORICAL FINANCIAL HIGHLIGHTS AND RECONCILIATIONS OF NON-GAAP MEASURES
Slide 16: Historical Financial Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 16Meridian 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 Append
Slide 17: Pre-tax, Pre-provision Reconciliation
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 17Meridian Corporation Pre-tax, Pre-provision Reconciliation (dollars in thousands) Q3'2022 Q2'2022 Q1'2022 Q4'2021 Q3'2021 Income before income tax expense $ 7,463 $ 7,646 $ 7,089 $ 9,893 $ 12,301 Provision for loan losses 526 60
Slide 18: Reconciliation of Non-GAAP Measures
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 18Meridian Corporation RECONCILIATION OF NON-GAAP MEASURES Allowance For Loan Losses to Loans, Net of Fees and Costs, Excluding PPP Loans and Loans at Fair Value (dollars in thousands) September 30, 2022 June 30, 2022 March 31, 20
Slide 19: Tangible Common Equity Ratio Reconciliation
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 19Meridian Corporation (dollars in thousands) Q3'2022 Q2'2022 Q1'2022 2021 Y 2020 Y 2019Y Tangible common equity ratio - Consolidated: Total stockholders' equity (GAAP) $ 151,161 $ 156,087 $ 157,684 $ 165,360 $ 141,622 $ 120,695 L