Meridian Corporation · NASDAQ:MRBK
Meridian — Q1 2022 Earnings Presentation
18 slides from Meridian's earnings presentation, May 6, 2022
Slide 1: 1st 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 1ˢᵗ 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. Geographic Footprint Branches Mortgage LPOs Regional Market • Serves Pennsylvania, Ne
Slide 4: Investment Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 4Meridian Corporation INVESTMENT HIGHLIGHTS • Financial services business model with significant non-interest income streams. • Demonstrated organic growth engine in diversified loan segments, capitalizing on sales culture and mar
Slide 5: 1Q Highlights
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 5Meridian Corporation 1Q HIGHLIGHTS 1) As of and for the quarter ended March 31, 2022, per May 2, 2022 press release. 2) Includes PPP loans, loans held for sale and loans held for investment. 3) Excludes loans at fair value, loans
Slide 6: Summary Income Statement
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation SUMMARY INCOME STATEMENT (1) A non-GAAP measure. See Non-GAAP reconciliation in the Appendix. • Bank pre-tax, pre-provision income grew 11% when comparing 1Q 2022 to 1Q 2021 • Bank segment represents 114% of
Slide 7: Net Interest Margin Management
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 7Meridian Corporation NET INTEREST MARGIN MANAGEMENT Net Interest Margin Trend 3.72% 3.70% 3.83% 3.83% 3.89% 3.64% 3.75% 3.73% 3.76% 3.82% 0.08% (0.05)% 0.10% 0.07% 0.07% PPP Impact NIM Ex PPP Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 20
Slide 8: Interest Sensitivity at March 31, 2022
239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 Meridian Corporation INTEREST SENSITIVITY at March 31, 2022 • 65% of loans are variable loans with 28% of loans repricing with prime. • 79% of deposits are core deposits; 21% of deposits are wholesale. • $439M of loans will repric
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 $4.0 million or 23.3% from 4Q2021 • Lower level of mortgage banking revenue (including fair value and hedging impacts) decreased $4.5 million. Decrease driven
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 • Mortgage business is cyclical and seasonal, but has been profitable every year (blue bar) by managing expenses • In 2020, added the MD mortgage group, effectively doubling originations •
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 $2.3 million or 9.7% from 4Q2021 • Salaries/benefits expense was $15.3 million, decrease of $1.7 million or 10.2%. $761 thousand related to the mortgage se
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% CommercialAt March 31, 2022 12
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 1Q 2021 to 1Q 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 11.2% 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 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 Reconciliation of Net Interest Mar