Meridian Corporation · NASDAQ:MRBK
Meridian — Investor Presentation (July 2020)
22 slides from Meridian's investor presentation, Jul 29, 2020
Slide 1: 2nd QTR Investor Presentation
® 2nd QTR Investor Presentation NASDAQ: MRBK July 29, 2020
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: Company Highlights
Company Highlights Demonstrated organic growth engine in diversified loan segments, capitalizing on sales culture and big bank missteps in the Delaware Valley tri-state market. Financial services business model with significant non-interest income streams in Meridian Mortgage, SBA Lending and Meridi
Slide 4: Company Snapshot
Company Snapshot Overview Financial Highlights 2QTR 2020¹ State-chartered commercial bank established in Balance Sheet ($ in Millions) July 2004 and headquartered in suburban Main Assets $1,579 Line Philadelphia. Loans & Leases2 $1,381 Serves Pennsylvania, New Jersey, Delaware and Deposits $1,167 Ma
Slide 5: Current Meridian Franchise Footprint
Current Meridian Franchise Footprint Organizational Structure Geographic Footprint Meridian Corporation Holding Company Meridian Bank 100% Owned Subsidiary Meridian Land Meridian Wealth Settlement Partners 100% Owned Subsidiary Services 100% Owned Subsidiary Meridian Apex Realty Equipment 100% Owned
Slide 6: Deep and Experienced Leadership
Deep and Experienced Leadership Chris Annas Founder, Chairman, President and Chief Executive Officer of the Bank since its opening in 2004 Chairman of the Board Held executive positions with various regional banks in the Delaware Valley since 1986 President & CEO Over 35 years of banking experience
Slide 7: Overview of Business Lines
Overview of Business Lines Wealth Management and Core Banking Meridian Mortgage Advisory Services Commercial & Industrial Lending Mortgage originations were $715 Million AUM as of June 30, – Lines of credit, term loans $790 million for 2Q 2020 and 2020 – Owner-occupied commercial $603 million for YR
Slide 8: Consistent Balance Sheet Growth
Consistent Balance Sheet Growth Total Assets ($M) Loans and Leases1 ($M) $1,579.1 $1,380.7 $1,303.4 $1,129.1 $1,150.0 $998.4 $997.5 $875.8 $856.0 $729.7 $733.7 $643.9 $663.3 $584.4 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 Total Deposits ($M) Consolidated Equi
Slide 9: Summary Income Statement
Summary Income Statement1 Net Interest Income ($M) Non-interest Income ($M) $36.3 $42.8 $32.7 $36.1 $36.7 $28.9 $32.4 $33.1 $25.8 $23.4 $20.7 $11.6 $9.7 $10.4 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 Non-interest Expense ($M) Net Income ($M) $59.9 $57.7 $10.5
Slide 10: Capital Summary
Capital Summary Tangible Common Equity / Tangible Common Assets (%)1 Tier 1 Leverage Ratio (%) 13.52% 14.08% 10.53% 11.77% 11.27% 11.27% 13.22% 10.53% 10.12% 10.15% 12.37% 12.37% 9.54% 9.54% 8.73% 11.16% 11.16% 7.98% 7.68% 10.71% 7.98% 10.55% 9.67% 9.67% 9.80% 8.39% 8.39% 8.06% 2015 2016 2017 2018 2
Slide 11: Asset Quality
Asset Quality NPAs¹ / Assets (%) Reserves / Loans2 (%) 0.73% 1.27% 0.63% 0.51% 0.42% 1.10% 0.39% 0.47% 1.06% 1.00% 0.30% 0.90% 0.96% 0.97% 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 2015 2016 2017 2018 2019 1Q 2020 2Q 2020 Nonaccrual Loans / Loans (%) Net Chargeoffs / Average Loans (%) 0.83% 0.21% 0.1
Slide 12: Balanced Loan Portfolio
Balanced Loan Portfolio June 30, 2020 Total Loans: $1.4 Billion $1.4 Billion total gross loans and leases 5% as of June 30, 20201 18% 13% – $253.4 M net PPP loans CRE concentration of 183% as of June 23% 30, 2020 31% Average yield on loans of 4.48% for 2Q 10% 2020 Average yield on loans, excluding P
Slide 13: Commercial Loans by Industry
Commercial Loans by Industry June 30, 2020 Note: Balances do not include consumer loans; HELoC, and 1st mortgages. Meridian Source: Company documents Corporation 13
Slide 14: COVID-19 Response
COVID-19 Response ALLL Coverage by Portfolio Loan Assistance Programs Update Commercial: – Original payment holiday up to 3 billing cycles – 9 loan relationships ($50.7M) additional 3 months Construction: – PA moratorium on construction is now over – Previously lowered rates now returned to original
Slide 15: Shared National Credits
Shared National Credits Meridian Source: Company documents Corporation 15
Slide 16: Deposit Composition
Deposit Composition June 30, 2020 Total Deposits: $1.2 Billion 3% 18% $1.2B total deposits as of June 30, 2020 25% Diversified deposit mix 18% – 37% transaction accounts 36% – 19% noninterest-bearing deposits / deposits – Average cost of total deposits of 0.90% for 2Q 2020 Non-interest checking Inte
Slide 17: Time Deposit Repricing Opportunities
Time Deposit Repricing Opportunities $120,000,000.00 1.42% $271M time deposits 1.53% maturing over next 3 $100,000,000.00 quarters 1.49% Blended cost of CDs $80,000,000.00 maturing over 9 months is 1.48% $60,000,000.00 Potential to shed approx. 30bps on $40,000,000.00 1.05% time deposit costs each q
Slide 18: Investment Portfolio Composition
Investment Portfolio Composition Total Securities: $104.7 Million $104.7 million total investments as of 2% June 30, 2020 11% 19% – 93.7% available-for-sale – 6.3% held-to-maturity Average TEY of 2.69% year-to-date 27% 41% Unrealized gain $2.8 million at June 30, 2020 Conservative investment portfol
Slide 19: Appendix
Appendix Meridian Corporation 19
Slide 20: Historical Financial Highlights
Historical Financial Highlights Meridian Corporation 20
Slide 21: 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 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Meridian Corporation 22