Slide 1: 2nd QTR 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 2nd QTR 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 consumer
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 New Florida Market - Comm. LPO • Serves Pennsylvania, New Jersey, DE & MD • Philadelphia MSA is 8th largest MSA in the US • Expansion into growing central Maryland
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: 2Q Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation 2Q HIGHLIGHTS 1) As of and for the quarter ended June 30, 2022, per August 1, 2022 press release. 2) Includes PPP loans, loans held for sale and loans held for investment. 3) Excludes loans at fair value, loa
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 (1) A non-GAAP measure. See Non-GAAP reconciliation in the Appendix. • Net interest income was up $1.5 million, or 9.5%, Q over Q, and up $3.1 million, or 10.00%, Y over Y • Bank segm
Slide 8: Net Interest Margin
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 Net Interest Margin Trend 3.70% 3.83% 3.83% 3.89% 4.07% 3.75% 3.73% 3.76% 3.82% 3.95% (0.05)% 0.10% 0.07% 0.07% 0.12% PPP Impact NIM Ex PPP Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 -0.50% 0
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 $2.7 million or 20.6% from 1Q2022 • Mortgage banking revenue decreased slightly from 1Q2022, down $154 thousand, or down $382 thousand when including the fair
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 Meridian Corporation MORTGAGE PERFORMANCE • Q2 Breakeven – Reduction in FTEs – Reduced Compensation – Stabilized Margin • Seasonally weaker in Q1 (red bar) • Margin: – Q2'22 margin yield (% of sold volume) up 5 bps over Q1'22 – Sl
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 decreased $1.7 million or 8.1% from 1Q2022 • Salaries/benefits expense was $12.9 million, a decrease of $2.4 million or 15.5%. $1.9 million of the decrease related t
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 Meridian Corporation LOAN PORTFOLIO DIVERSIFICATION 90% CommercialJune 30, 2022 12 13% 11% 10% 9% 8% 8% 6% 5% 4% 1% 3% 3% 3% 3% 1% 7% 4% Residential and Commercial Construction Commercial Real Estate Investment Manufacturing Resid
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 ASSET QUALITY 1) Excludes loans held for sale and, for 2Q 2021 to 2Q 2022, PPP loans. A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation. 2) Includes loans held for sale and held for invest
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 significantly exceed well capitalized regulatory requirements ◦ Bank level - Community Banking Leverage Ratio of 10.9% compared to minimum of 8.5% - $47.2M excess
Slide 15: Appendix
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 15Meridian Corporation APPENDIX
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: 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 17Meridian Corporation RECONCILIATION OF NON-GAAP 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-GA
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 Dollar Values in Thousands Reconciliation of PPP Related Non-GAAP Measures For the Quarter Ended 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 Reconciliation of Net Interest Mar