Meridian Corporation · NASDAQ:MRBK
Meridian — Q3 2021 Earnings Presentation
15 slides from Meridian's earnings presentation, Nov 1, 2021
Slide 1: 3rd QTR 2021 Investor Presentation
® 3rd QTR 2021 INVESTOR PRESENTATION NASDAQ: MRBK
Slide 2: Forward-Looking Statements
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 Securities Litigation Reform Act of 1995. These forward-looking statements include statements
Slide 3: Who We Are
WHO WE ARE Profile and Business Lines Geographic Footprint Meridian specializes in business and industrial lending, retail and commercial Branches Mortgage LPOs real estate lending, electronic payments, along with a broad menu of high- yield depository products supported by robust online and mobile
Slide 4: What We Deliver
WHAT WE DELIVER Lending expertise in commercial/industrial, real estate & consumer with a consultative approach. Our experienced business bankers craft custom financial solutions to help our customers thrive. Demonstrated organic growth engine in diversified loan segments, capitalizing on sales cult
Slide 5: 3QTR Highlights
3QTR HIGHLIGHTS 3QTR Overview Financial Highlights 3QTR 2021¹ Net income was $9.4 million for the quarter, or $1.52 Balance Sheet ($ in Millions) per diluted share, driven by loan and deposit growth. Total revenues of $40.4 million, resulting in ROE of 24.07% and ROA of 2.15% for 3Q 2021. 6th consec
Slide 6: Summary Income Statement
SUMMARY INCOME STATEMENT (dollars in thousands) Bank pre-tax, pre-provision income grew 18% Summary Income Statement 3Q 2021 2Q 2021 3Q 2020 when comparing 3Q 2021 to 2Q 2021, down Net Interest Income $ 16,257 $ 15,412 $ 12,715 19% when comparing to 3Q 2020 Provision for Loan Loss 597 96 3,956 Bank
Slide 7: Net Interest Income Growth Trend
NET INTEREST INCOME GROWTH TREND NIM excl PPP expanded Net Interest Income 32 bps since Q2 2020 $18,000 3.73% 3.90% 3.83% $16,000 3.75% 3.80% 3.72% 3.67% 3.70% $14,000 3.59% 3.72% 3.61% 3.70% 3.49% 3.41% 3.60% $12,000 3.61% 3.47% 3.64% 3.50% $10,000 3.52% 3.40% 3.48% $8,000 3.30% 3.26% $6,000 3.27%
Slide 8: Non-Interest Income
NON-INTEREST INCOME (Dollars in thousands) 3Q 2021 2Q 2021 Change Quarter ended September 30, Mortgage banking income (including FV changes) 16,666 17,880 (1,214) 2021 Wealth management income 1,232 1,163 69 (% of total non-interest income) SBA income 2,688 1,490 1,198 Mortgage banking income (inclu
Slide 9: Non-Interest Expense
NON-INTEREST EXPENSE (Dollars in thousands) 3Q 2021 2Q 2021 Change Quarter ended September 30, 2021 Salaries and employee benefits 19,472 20,213 (741) (% of total non-interest expense) Occupancy and equipment 1,133 1,175 (42) Salaries and employee benefits Professional fees 873 816 57 Occupancy and
Slide 10: Asset Quality
ASSET QUALITY September 30, 2021 Nonaccrual Loans / Loans2 (%) Reserves / Loans1 (%) 1.59% 1.65% 1.65% 0.51% 0.49% 0.52% 0.45% 1.58% 0.42% 0.48% 0.39% 0.47% 1.27% 1.52% 0.46% 0.30% 1.10% 0.97% 0.96% 1.00% COVID-19 Impact to ALLL 2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 2017 2018 2019
Slide 11: Capitalization as of 9/30/2021
CAPITALIZATION AS OF 9/30/2021 All corporate capital ratios Excess Capital ($000s) significantly exceed well capitalized regulatory 250,000 requirements 14.7% Bank level - Community Banking 200,000 10.6% 10.6% 9.3% Leverage Ratio of $67,954 11.55% compared to minimum of 8.5% - 150,000 $38,003 $50.4M
Slide 12: Appendix
APPENDIX Meridian Corporation 12
Slide 13: Historical Financial Highlights
HISTORICAL FINANCIAL HIGHLIGHTS For the Year Ended Dollar Values in Thousands, Except Per Share Amounts 2017Y 2018Y 2019Y 2020Y 1Q 2021 2Q 2021 3Q 2021 Balance Sheet Total Assets $ 856,035 $ 997,480 $ 1,150,019 $ 1,720,197 $ 1,743,977 $ 1,709,010 $ 1,762,445 Loans 1 729,661 875,801 998,414 $ 1,513,9
Slide 14: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Tangible common equity to tangible assets Management uses the measure tangible common equity to tangible assets to assess our capital strength. We believe that this non-GAAP financial measure is useful to investors because, by removing the impact of our
Slide 15: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Dollar Values in Thousands For the Quarter Ended Reconciliation of PPP Related Non-GAAP Measures 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Reconciliation of Net Interest Margin (TEY, exluding PPP loans and PPPLF borrowings) Net interest margin (TEY