Meridian Corporation · NASDAQ:MRBK
Meridian — Investor Presentation (February 2020)
14 slides from Meridian's investor presentation, Feb 5, 2020
Slide 1: Investor Presentation February 2020
Investor Presentation February 2020 NASDAQ: MRBK ®
Slide 2: Forward-Looking Statements
2 Meridian Corporation Forward-Looking Statements Meridian Corporation (the “Company”) may from time to time make written or oral “forward-looking statements,” including statements contained in this presentation as well as the Company’s filings with the SEC, in its reports to stockholders and in oth
Slide 3: Company Highlights
3 Meridian Corporation Company Highlights Demonstrated organic growth engine in diversified loan segments, capitalizing on market disruption in the Delaware Valley tri-state market Financial services business model with significant noninterest income streams in Meridian Mortgage, SBA Lending and Mer
Slide 4: Company Snapshot
4 Meridian Corporation Company Snapshot 1) As of and for the quarter ended December 31, 2019, per January 27, 2020 press release 2) Includes loans held for sale and held for investment 3) Excludes loans at fair value Overview Financial Highlights¹ Balance Sheet ($ in Millions) Asset Quality (%) MRQ
Slide 5: Current Meridian Franchise Footprint
5 Meridian Corporation Current Meridian Franchise Footprint Source: S&P Global Market Intelligence Geographic Footprint Meridian Corporation Holding Company Meridian Bank 100% Owned Subsidiary Organizational Structure Meridian Wealth Partners 100% Owned Subsidiary Apex Realty 100% Owned Subsidiary M
Slide 6: Deep and Experienced Leadership
6 Meridian Corporation Deep and Experienced Leadership Meridian Bank Executive Management Chris Annas Chairman of the Board & CEO Founder, Chairman, President and Chief Executive Officer of the Bank since its opening in 2004 Held executive positions with various regional banks in the Delaware Valley
Slide 7: Overview of Business Lines
7 Meridian Corporation Overview of Business Lines Commercial & Industrial Lending – Lines of credit, term loans – Owner-occupied commercial mortgages Commercial Real Estate Lending – Investor-owned commercial mortgages – Construction loans – Land development loans Consumer Lending – Home equity loan
Slide 8: Consistent Balance Sheet Growth
8 Meridian Corporation $45.0 $52.9 $70.0 $101.4 $109.6 $120.7 2014 2015 2016 2017 2018 2019 $462.7 $490.6 $527.1 $627.1 $752.1 $851.2 2014 2015 2016 2017 2018 2019 $525.9 $584.4 $643.9 $729.7 $875.8 $998.4 2014 2015 2016 2017 2018 2019 $582.2 $663.3 $733.7 $856.0 $997.5 $1,151.0 2014 2015 2016 2017
Slide 9: Summary Income Statement
9 Meridian Corporation Summary Income Statement1 1) Decrease in 2017 profitability due to a decrease in net operating profit from mortgage division ($1.8M); 2017 tax reform resulted in a one-time charge to tax expense of $737K Source: S&P Global Market Intelligence Net Interest Income ($M) Non-inter
Slide 10: Pristine Asset Quality
10 Meridian Corporation Pristine Asset Quality 1) Nonperforming assets defined as loans 90+ days past due and still accruing, nonaccrual loans and leases and OREO, excluding performing TDRs 2) Excludes loans at fair value Source: S&P Global Market Intelligence NPAs¹ / Assets (%) Reserves / Loans2 (%
Slide 11: Balanced Loan Portfolio
11 Meridian Corporation $998.4 million total gross loans and leases as of December 31, 20191 – 13.7% CAGR since December 31, 2014 CRE concentration of 177.1% as of December 31, 2019 High-yielding loan mix – Average yield on loans of 5.51% for 2019 Balanced Loan Portfolio December 31, 2019 1) Total l
Slide 12: Commercial Loans by Industry
12 Meridian Corporation Commercial Loans by Industry December 31, 2019 Note: balance total does not include consumer loans, HELoC and 1st mortgages Source: Company documents Residential and Commercial Construction 16.7% Residential Real Estate Investment 16.2% Commercial Real Estate Investment 9.4%
Slide 13: Total Deposits and Deposit Composition
13 Meridian Corporation $851.2 million total deposits as of December 31, 2019 – 13.0% CAGR for total deposits since December 31, 2014 – 28.1% CAGR for noninterest-bearing deposits since December 31, 2014 Diversified deposit mix – 16.4% noninterest-bearing deposits / deposits – Average cost of total
Slide 14: Historical Financial Highlights
14 Meridian Corporation Historical Financial Highlights