MALVERN, PA — Meridian Corporation (Nasdaq: MRBK) posted a solid performance in the fourth quarter of 2024, reporting a net income of $5.6 million, or $0.49 per diluted share. The year-end results showed net income of $16.3 million, marking a 23.4% increase from the prior year, with earnings per share reaching $1.45. The company also announced a quarterly cash dividend of $0.125 per common share, payable on February 18, 2025, to shareholders of record as of February 10, 2025.
Key metrics highlighted steady progress. The fourth-quarter net interest margin improved to 3.29%, supported by a loan yield of 7.17%. During the quarter, commercial loans grew by $34.8 million, or 2%, and deposits increased by $26.4 million, a 1% rise. Over the year, loans and deposits grew by 12% and 10%, respectively, showcasing Meridian’s capacity to attract business across various segments.
Christopher J. Annas, Chairman and CEO, emphasized the company’s improved performance compared to the previous quarter. “Our fourth quarter earnings showed significant improvement from the third quarter, increasing by 18.1% to $5.6 million, or $0.49 per share. For the year, net income increased 23.4% to $16.3 million, and $1.45 per share,” Annas said. “While we are pleased with the improvement, we are still working through the drastic rate shock brought on by the Fed, particularly in our net interest margin which is down 50 basis points from 2019 levels. The team is working diligently each day to return to historical spreads.”
Annas also highlighted exceptional loan growth across all key lending categories and improvements in the mortgage segment, which returned $4.1 million in pre-tax income compared to a loss in 2023, thanks largely to operational adjustments. The company’s wealth management segment also performed strongly, with pre-tax income doubling to $2.4 million due to increased assets under management and favorable market performance.
Meridian recorded a $4 million gain from the sale of residential mortgage loan servicing rights during the fourth quarter, contributing to a 22.6% increase in non-interest income. Despite challenges in mortgage banking income, higher gains from SBA loan sales along with other portfolio activities bolstered results.
The company remains focused on navigating market pressures including fluctuating interest rates, while continuing to find opportunities for growth. With $2.4 billion in total assets and a strong lending and deposit base, Meridian is well-positioned to serve its customers and drive shareholder value in the coming year.
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