Meridian Corporation · NASDAQ:MRBK
Meridian — Q4 2022 Earnings Presentation
18 slides from Meridian's earnings presentation, Jan 31, 2023
Slide 1: Q4'2022 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 Q4'2022 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: Q4'2022 and YTD Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation Q4'2022 and YTD HIGHLIGHTS 1) As of and for the quarter ended and year ended December 31, 2022, per January 30, 2023 press release. 2) Includes PPP loans, loans held for sale and loans held for investment. 3)
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 $492 thousand, or 2.7%, Q4'2022 over Q3'2022 and up $7.0 million, or 11.1%, YTD 2022 over YTD 2021 • Bank segment represents 104.6% of pre-tax income for
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% 3.89% 4.07% 4.01% 3.93% 3.76% 3.82% 3.95% 3.99% 3.92% 0.07% 0.07% 0.12% 0.01% PPP Impact NIM Ex PPP Q4'2021 Q1'2022 Q2'2022 Q3'2022 Q4'2022 (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 $2.2 million or 21.8% from Q3'2022 • Mortgage banking revenue decreased from Q3'2022, down $2.9 million, or 38.1%, 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: Q4'22 margin yield flat at 2.67% quarter over quarter • Volume continues to be impacted by higher mortgage rates, lack of home inventory, and high property values. • Q3/Q4 expe
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 $214 thousand or 1.1% from Q3'2022 • Salaries and employee benefits decreased due to a decrease of $1.9 million for mortgage segment from to a further redu
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
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% 1.58% 1.52% 1.46% 1.38% 1.27% 1.20% 1.09% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 —% 0.50% 1.00% 1.50% ASSET QUALITY 1) Includes loans held for sale and held for investment. 2) NPL's down $1.8
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 9.95% compared to minimum of 9.0% - $18.8 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: Net Interest Margin and Yield Reconciliations Excluding PPP
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 17Meridian Corporation Net Interest Margin, (TEY), Excluding PPP Loans & PPPLF Borrowings Yield on Interest Earning Assets, (TEY), Excluding PPP income (dollars in thousands) Q4'2022 Q3'2022 Q2'2022 Q1'2022 Q4'2021 Net interest ma
Slide 18: 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 18Meridian Corporation (dollars in thousands) December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 Tangible common equity ratio - Consolidated: Total stockholders' equity (GAAP) $ 153,280 $ 151,161 $