Meridian Corporation · NASDAQ:MRBK
Meridian — Investor Presentation (August 2021)
15 slides from Meridian's investor presentation, August 2021
Slide 1: 2nd QTR 2021 Investor Presentation
® 2nd 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: Company Snapshot
Company Snapshot 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 m
Slide 4: 2nd QTR Review
2 QTR Review 2QTR Overview Financial Highlights 2QTR 2021¹ Net income was $8.3 million for the quarter, or $1.33 Balance Sheet ($ in Millions) per diluted share, driven by loan and deposit growth. Total revenues of $39.2 million, resulting in ROE of 22.61% and ROA of 1.92% for 2Q 2021. 5th consecuti
Slide 5: Summary Income Statement
Summary Income Statement (dollars in thousands) Bank pre-tax, pre-provision income grew 59% Summary Income Statement 2Q 2021 1Q 2021 2Q 2020 when comparing 2Q 2021 to 2Q 2020 Net Interest Income $ 15,412 $ 15,120 $ 11,597 Provision for Loan Loss 96 599 1,631 Bank segment represents 72% of pre-tax, p
Slide 6: Net Interest Income Growth Trend
Net Interest Income Growth Trend $17,000 4.50% NIM excl PPP expanded 34bps since 2Q 2020 $15,000 3.97% 3.91% 3.91% 4.00% $13,000 3.72% 3.75% 3.94% 4.01% 3.67% 3.88% 3.61% 3.48% 3.41% 3.52% 3.70% 3.47% $11,000 3.70% 3.72% 3.72% 3.61% 3.50% 3.49% 3.59% 3.64% $9,000 3.27% 3.26% 3.00% $7,000 $5,000 2.50
Slide 7: Non-Interest Income
Non-Interest Income (Dollars in thousands) 2Q 2021 1Q 2021 Change Quarter ended June 30, 2021 Mortgage banking income (including FV changes) 17,880 23,550 (5,670) (% of total non-interest income) Wealth management income 1,163 1,136 27 SBA income 1,490 1,245 245 Mortgage banking income (including FV
Slide 8: Non-Interest Expense
Non-Interest Expense (Dollars in thousands) 2Q 2021 1Q 2021 Change Quarter ended June 30, 2021 Salaries and employee benefits 20,213 22,139 (1,926) (% of total non-interest expense) Occupancy and equipment 1,175 1,152 23 Salaries and employee benefits Professional fees 816 940 (124) Occupancy and eq
Slide 9: Asset Quality
Asset Quality June 30, 2021 Nonaccrual Loans / Loans2 (%) Reserves / Loans1 (%) 1.65% 1.65% 0.58% 0.56% 1.59% 0.52% 0.55% 1.58% 0.45% 0.54% 0.52% 0.43% 0.34% 1.27% 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 2017 2018 2019 1Q 20 2Q 20 3Q 20 4Q 2
Slide 10: Strong Capital Position
Strong Capital Position All capital ratios significantly Excess Capital (000s) exceed well capitalized regulatory requirements 250,000 14.2% Bank level - Community Banking 200,000 Leverage Ratio of 10.2% 60,952 9.0% 10.2% 11.4% compared to 150,000 minimum of 8.5% - 31,089 52,720 $44.3M excess capita
Slide 11: Time Deposit Repricing Opportunities
Time Deposit Repricing Opportunities June 30, 2021 $48M in time deposits matured during Q2 2021 Cost of CDs and cost of funds declined by 20 bps and 8 bps, respectively $54M in time deposits with a blended cost of 41 bps maturing over next 3 months Potential to renew upcoming brokered CD maturities
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 Balance Sheet Total Assets $ 856,035 $ 997,480 $ 1,150,019 $ 1,720,197 $ 1,743,977 $ 1,709,010 Loans 1 729,661 875,801 998,414 $ 1,513,963 1,524,799 1,495,0
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 Reconciliation of Net Interest Margin (TEY, exluding PPP loans and PPPLF borrowings) Net interest margin (TEY) 3.27%