Meridian Corp (MRBK, Financial) released its Q3 2023 earnings report on October 27, 2023. The company reported a net income of $4.0 million and diluted earnings of $0.35 per share for the quarter ended September 30, 2023. The return on average assets and return on average equity for the third quarter of 2023 were 0.73% and 10.17%, respectively.
Financial Performance
The company's net interest margin was 3.29% for the third quarter of 2023, with a loan yield of 7.08%. Total assets at the end of Q3 2023 and Q2 2023 were $2.2 billion, compared to $1.9 billion at the end of Q3 2022. The third quarter saw overall commercial loan growth of $21.3 million, or 6.1% annualized, while residential and home equity loans increased by $15.1 million on a combined basis, or 19.2% annualized. Deposit growth for the third quarter was $26.0 million, or 6.0% annualized.
Dividend Announcement
On October 26, 2023, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable November 20, 2023 to shareholders of record as of November 13, 2023.
CEO Commentary
Christopher J. Annas, Chairman and CEO, commented on the company's performance,
We were pleased with our growth in the third quarter as we prioritize our asset mix to emphasize relationship-based credits. We continue to show growth in deposits, reduction in borrowings, and strengthening of our capital position. While our margin compressed slightly, we remain focused on high quality assets and prudent management of the balance sheet."
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's income, balance sheet, performance ratios, and other key financial metrics. The tables reveal a decrease in net income from $4.6 million in Q2 2023 to $4.0 million in Q3 2023. The decrease was driven by a lower level of non-interest income and a higher level of non-interest expense, partially offset by an increase in net interest income and lower loan loss provision.
Company Performance Analysis
Meridian Corp (MRBK, Financial) showed a strong performance in Q3 2023, with a net income of $4.0 million and a return on average equity of 10.17%. The company's total assets increased to $2.2 billion, compared to $1.9 billion in Q3 2022. Despite the challenging environment, the company has shown growth and commitment to the regions it serves.
Explore the complete 8-K earnings release (here) from Meridian Corp for further details.
