Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

January 26, 2024

Date of Report (Date of earliest event reported)

(Exact name of registrant as specified in its charter)

Pennsylvania

000-55983

83-1561918

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Ident. No.)

9 Old Lincoln Highway, Malvern, Pennsylvania

19355

(Address of principal executive offices)

(Zip Code)

(484) 568-5000

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol(s)

Name of each exchange on which registered:

Common Stock, $1 par value

MRBK

The NASDAQ Stock Market

Item 2.02. Results of Operations and Financial Condition.

On January 26, 2024 Meridian Corporation issued a press release discussing the Corporation’s Fourth Quarter 2023 Results. A copy is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto and incorporated by reference into Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibit attached hereto, shall not be deemed incorporated by reference into any of the Corporation’s reports or filings with the SEC under the Securities Exchange Act of 1933, as amended (the "Securities Act"), or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibit attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 7.01. Regulation FD Disclosures.

In connection with the issuance of its earnings for the three months ended December 31, 2023, Meridian Corporation has also made available on its website materials that contain supplemental information about the Corporation's financial results (“Earnings Supplement”). A copy of the earnings supplement is attached hereto as Exhibit 99.2 and is incorporated by reference in this Item 7.01. The information contained in this Item 7.01 of this Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01. Other Events.

Quarterly Dividend

On January 25, 2024, Meridian Corporation’s Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable February 20, 2024, to shareholders of record as of February 12, 2024.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is furnished herewith:

99.1 Press Release, issued January 26, 2024

99.2 Earnings Supplement, issued January 26, 2024

EXHIBIT INDEX



Exhibit No.						Description of Exhibit

99.1						Press Release, issued January 26, 2024

99.2						Earnings Supplement, issued January 26, 2024

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MERIDIAN CORPORATION
(Registrant)

Dated: January 26, 2024

By:

/s/ Denise Lindsay

Denise Lindsay

Executive Vice President and Chief Financial Officer

Exhibit 99.1

Meridian Corporation Reports Fourth Quarter 2023 Results and Announces a Quarterly Dividend of $0.125 per Common Share.

MALVERN, PA., January 26, 2024 — Meridian Corporation (Nasdaq: MRBK) today reported:


	Three Months Ended				Year Ended
(Dollars in thousands, except per share data)((Unaudited)	December 31, 2023		September 30, 2023		December 31, 2023		December 31, 2022
Income:
Net income	$	571	$	4,005	$	13,243	$	21,829
Diluted earnings per common share	$	0.05	$	0.35	$	1.16	$	1.79
Pre-tax, pre-provision income (1)	$	5,356	$	5,292	$	23,782	$	30,408
Pre-tax, pre-provision income - Bank (1)	$	5,757	$	6,399	$	27,751	$	31,004
(1) See Non-GAAP reconciliation in the Appendix

•Total assets at December 31, 2023 and September 30, 2023 were $2.2 billion, compared to $2.1 billion at December 31, 2022.

•Commercial loans, excluding leases, increased $15.7 million for the quarter and $114.6 million, or 9%, year over year.

•Pre-tax, pre-provision income for the Bank was $5.8 million for the quarter and $27.8 million for the year.

•Net interest margin was 3.18% for the fourth quarter of 2023, with a loan yield of 7.15%. Net interest margin was 3.35% with a loan yield of 6.94% for the year.

•On January 25, 2024, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable February 20, 2024 to shareholders of record as of February 12, 2024.

Christopher J. Annas, Chairman and CEO commented, “Meridian’s fourth quarter earnings totaled $571 thousand, which was down from the prior quarter. Contributing to the decline was a necessary additional provision for a non-performing commercial credit, which has experienced some deterioration. In addition, the historical rise in interest rates has had negative impact on our SBA and small-ticket leasing businesses, both of which required additional provisions. We are comfortable with the existing reserves and expect some resolution in the commercial credit in 2024. Annual loan growth in the core CRE, C&I and SBA portfolios was 9%, which reflects our continued outreach and a stable business environment in the Philadelphia metro region. Construction lending for residential and multi-family is still strong because of high housing demand, as housing inventory remains at historical lows.

Mr. Annas added, "Net interest margin was down from the prior quarter mostly due to higher deposit expense, as customers are increasingly rate conscious. We have adjusted well to the tumultuous environment created by the historic Federal Reserve interest rate moves, but the impact on margins continues.

The mortgage segment has been downsized throughout 2023 to match expected volumes. The lack of homes for sale remains the biggest issue, while the higher rates are less of a factor. We will continue to monitor the impact of market conditions on our mortgage operations and are prepared to make further adjustments if warranted."

Mr. Annas concluded, "Our continued growth results from being highly visible in our regions, and being the preferred bank in the Delaware Valley. If the forecasted rate declines materialize, the business environment should be robust."

Exhibit 99.1

Select Condensed Financial Information


	As of or for the quarter ended (Unaudited)
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(Dollars in thousands, except per share data)
Income:
Net income	$	571		$	4,005		$	4,645		$	4,021		$	4,557
Basic earnings per common share	0.05			0.36			0.42			0.36			0.40
Diluted earnings per common share	0.05			0.35			0.41			0.34			0.39
Net interest income	16,942			17,224			17,098			17,677			18,518

Balance Sheet:
Total assets	$	2,246,193		$	2,230,971		$	2,206,877		$	2,229,783		$	2,062,228
Loans, net of fees and costs	1,895,806			1,885,629			1,859,839			1,818,189			1,743,682
Total deposits	1,823,462			1,808,645			1,782,605			1,770,413			1,712,479
Non-interest bearing deposits	239,289			244,668			269,174			262,636			301,727
Stockholders' equity	158,022			155,114			153,962			153,049			153,280

Balance Sheet (Average Balances):
Total assets	$	2,219,340		$	2,184,384		$	2,166,574		$	2,088,599		$	1,962,915
Total interest earning assets	2,121,068			2,086,602			2,070,640			1,995,460			1,877,967
Loans, net of fees and costs	1,891,170			1,876,648			1,847,736			1,783,322			1,674,215
Total deposits	1,820,532			1,782,140			1,775,444			1,759,571			1,698,597
Non-interest bearing deposits	254,025			253,485			266,675			296,037			312,297
Stockholders' equity	157,210			156,271			154,179			153,179			151,791

Performance Ratios (Annualized):
Return on average assets	0.10		%	0.73		%	0.86		%	0.78		%	0.92		%
Return on average equity	1.44		%	10.17		%	12.08		%	10.65		%	11.91		%

Income Statement - Fourth Quarter 2023 Compared to Third Quarter 2023

Net income of $571 thousand for the fourth quarter decreased $3.4 million from $4.0 million for the third quarter mainly due to provisioning for general credit reserves, specific reserves on individually evaluated loans, and charge-offs. Net interest income decreased $288 thousand, or 1.6%, on a tax equivalent basis due to an increase in interest expense that out-paced the increase in interest income. Non-interest income increased $31 thousand or 0.4%, as fair value changes exceeded the lower level of gains on sale of mortgage loans. Non-interest expense decreased $315 thousand, or 1.6% due primarily to a decrease in salaries and benefits expense, partially offset by an increase in professional fees. Detailed explanations of the major categories of income and expense follow below.

Exhibit 99.1

Net Interest income

The rate/volume analysis table below analyzes dollar changes in the components of interest income and interest expense as they relate to the change in balances (volume) and the change in interest rates (rate) of tax-equivalent net interest income for the periods indicated and allocated by rate and volume. Changes in interest income and/or expense related to changes attributable to both volume and rate have been allocated proportionately based on the relationship of the absolute dollar amount of the change in each category.


	Quarter Ended
(dollars in thousands)	December 31, 2023		September 30, 2023		$ Change		% Change		Change due to rate		Change due to volume
Interest income:
Cash and cash equivalents	526		245		$	281	114.7	%	$	(3)	$	284

Investment securities - taxable	1,020		901		119		13.2	%	65		54
Investment securities - tax exempt (1)	402		410		(8)		(2.0)	%	4		(12)
Loans held for sale	400		456		(56)		(12.3)	%	36		(92)
Loans held for investment (1)	34,071		33,526		545		1.6	%	285		260
Total loans	34,471		33,982		489		1.4	%	321		168
Total interest income	$	36,419	$	35,538	$	881	2.5	%	$	387	$	494
Interest expense:
Interest-bearing demand deposits	$	1,476	$	1,488	$	(12)	(0.8)	%	$	51	$	(63)
Money market and savings deposits	7,384		6,755		629		9.3	%	328		301
Time deposits	7,946		7,300		646		8.8	%	495		151
Total deposits	16,806		15,543		1,263		8.1	%	874		389
Borrowings	1,816		2,086		(270)		(12.9)	%	(56)		(214)
Subordinated debentures	782		606		176		29.0	%	41		135
Total interest expense	19,404		18,235		1,169		6.4	%	859		310
Net interest income differential	$	17,015	$	17,303	$	(288)	(1.66)	%	$	(472)	$	184
(1) Reflected on a tax-equivalent basis.

Interest income increased $881 thousand quarter-over-quarter, on a tax equivalent basis, due to a higher yield on earning assets and higher levels of average earning assets. The yield on earnings assets rose 5 basis points during the period, while average earning assets increased by $34.5 million.

The yield on total loans increased 7 basis points and the yield on cash and investments increased 9 basis points combined. Average total loans, excluding residential loans for sale, increased $14.5 million. Construction, commercial real estate, and small business loans increased $19.3 million on average, combined, while home equity loans and residential real estate loans held in portfolio increased $15.9 million on average, combined.

Total interest expense increased $1.2 million, quarter-over-quarter, due primarily to market interest rate rises, and an increase in deposit average balances. Interest expense on deposits increased $1.3 million as total average deposits increased $37.9 million and the cost of interest-bearing deposits increased 23 basis points to 4.26%. Interest expense on borrowings decreased $270 thousand as the cost of borrowings decreased 14 basis points due to the positive carry on a $75 million pay fixed swap, and average borrowings decreased for the period, while the average balance of subordinated debentures increased for the period due to the $9.7 million raised in the prior quarter.

The net interest margin decreased 11 basis points to 3.18% as the cost of funds outpaced the increase in yield on earnings assets. The average balance on non-interest bearing deposits increased $540 thousand for the quarter which helped offset somewhat the impact of the increase in cost of funds.

Provision for Credit Losses

The overall provision for credit losses is comprised of provisioning for funded loans as well as unfunded loan commitments. The combined provision increased to $4.6 million for the fourth quarter, from $82 thousand for the third quarter, with the provision for unfunded loan commitments representing only $8 thousand of the combined provision. The increase in provision for funded loans was due to a $3.9 million increase in specific reserves on new, mainly small business loans, and existing non-accrual loans combined with provisioning for loan growth and charge-offs. $2.3 million of the increase in specific reserves related to a commercial loan relationship for which new information became available related to the value of the underlying collateral, and an estimate of disposition costs. This increase was partially offset by the impact of favorable changes in certain portfolio baseline loss rates and some macroeconomic factors underlying the funded loss model.

Exhibit 99.1

Non-interest income

The following table presents the components of non-interest income for the periods indicated:


	Quarter Ended
(Dollars in thousands)	December 31, 2023		September 30, 2023		$ Change		% Change
Mortgage banking income	$	3,394	$	4,819	$	(1,425)	(29.6)	%
Wealth management income	1,239		1,258		(19)		(1.5)	%
SBA loan income	1,022		982		40		4.1	%
Earnings on investment in life insurance	204		201		3		1.5	%
Net change in the fair value of derivative instruments	(126)		103		(229)		(222.3)	%
Net change in the fair value of loans held-for-sale	120		111		9		8.1	%
Net change in the fair value of loans held-for-investment	805		(570)		1,375		(241.2)	%
Net gain on hedging activity	(53)		82		(135)		(164.6)	%
Net loss on sale of investment securities available-for-sale	—		(3)		3		(100.0)	%
Other	1,512		1,103		409		37.1	%
Total non-interest income	$	8,117	$	8,086	$	31	0.4	%

Total non-interest income increased $31 thousand, or 0.4%, quarter-over-quarter as a result of an increase in the net change in fair values and an increase in other income, largely offset by lower mortgage banking income. Other income increased $409 thousand due to swap fee income and gains in fair value of equity securities. Mortgage banking income decreased $1.4 million, or 29.6% quarter-over-quarter, due to lower levels of mortgage loan originations, which decreased $39.8 million. In addition to lower volume, the gain on sale margin increased 5 basis points over the prior quarter. The fair value of loans held for investment increased $1.4 million due to the recent decline in interest rates.

SBA loan income increased $40 thousand, or 4.1%, quarter-over-quarter. While the value of SBA loans sold for the quarter-ended December 31, 2023 was $6.1 million, or 23.3%, less than the quarter-ended September 30, 2023, the gross margin on sale was 6.4% for the quarter-ended December 31, 2023 compared to 6.2% for the quarter-ended September 30, 2023. Also contributing to the increase in SBA loan income was a decrease in amortization expense and in servicing asset impairment.

Non-interest expense

The following table presents the components of non-interest expense for the periods indicated:


	Quarter Ended
(Dollars in thousands)	December 31, 2023		September 30, 2023		$ Change		% Change
Salaries and employee benefits	$	11,744	$	12,420	$	(676)	(5.4)	%
Occupancy and equipment	1,232		1,226		6		0.5	%
Professional fees	1,382		1,104		278		25.2	%
Advertising and promotion	931		848		83		9.8	%
Data processing and software	1,651		1,652		(1)		(0.1)	%
Pennsylvania bank shares tax	233		244		(11)		(4.5)	%
Other	2,530		2,524		6		0.2	%
Total non-interest expense	$	19,703	$	20,018	$	(315)	(1.6)	%

Salaries and employee benefits decreased $676 thousand overall, with bank and wealth segments combined having increased $332 thousand, and the mortgage segment decreased $1.0 million. Bank and wealth segment salaries and employee benefits were up due to increased full-time-equivalent employees, and expense related to the issuance of stock options during the quarter.

Professional fees increased $278 thousand during the current quarter due to an increase in loan and lease workout expenses and other legal expenses. Advertising and promotion expense increased $83 thousand from the prior quarter as a result of an increase in advertising and business development expense during the holiday season.

Balance Sheet - December 31, 2023 Compared to September 30, 2023

As of December 31, 2023, total assets increased $15.2 million, or 0.7%, to $2.2 billion from September 30, 2023. This increase was due to an increase in cash and cash equivalents and an increase in loans. Interest-bearing cash decreased $395 thousand, or 0.8%, to $46.6 million as of December 31, 2023, from September 30, 2023.

Portfolio loan growth was $10.0 million, or 0.5% quarter-over-quarter. Commercial mortgage loans increased $41.7 million, or 6.0%, commercial & industrial loans increased $3.0 million, or 1.0%, while residential real estate loans held in portfolio increased $4.3 million,

Exhibit 99.1

or 1.7%, and home equity lines and loans increased $2.4 million, or 3.3%. Partially offsetting portfolio loan growth were construction loans which decreased $30.2 million, or 10.9%, and lease financings that decreased $12.4 million, or 8.9% from September 30, 2023.

Total deposits increased $14.8 million, or 0.8% quarter-over-quarter, due largely to higher levels of certificates of deposits. Time deposits increased $24.6 million, or 3.7%, from retail and wholesale efforts as customers continue to opt for higher term interest rates. Money market accounts and savings accounts increased a combined $1.2 million while interest bearing demand deposits decreased $5.6 million. Non-interest bearing deposits decreased $5.4 million, reflecting typical business cash out at the end of the year for distributions and profit-sharing.

Consolidated stockholders’ equity of the Corporation increased by $2.9 million from September 30, 2023, to $158.0 million as of December 31, 2023. Changes to equity for the current quarter included net income of $571 thousand, $199 thousand in ESOP loan payments, an increase of a $2.9 million in other comprehensive income, partially offset by quarter dividends paid of $1.4 million. The Community Bank Leverage Ratio for the Bank was 9.46% at December 31, 2023.

Asset Quality Summary

The ratio of non-performing loans to total loans increased to 1.76% as of December 31, 2023, from 1.53% as of September 30, 2023, while the ratio of non-performing assets to total assets increased to 1.58% as of December 31, 2023, compared to 1.38% at September 30, 2023. Driving the increase in these ratios were total non-performing loans which increased $4.7 million from $29.1 million as of September 30, 2023, to $33.8 million as of December 31, 2023, due to risk rating downgrades of several SBA loans and small ticket equipment leases, partially offset by charge-offs of leases and SBA loans as of December 31, 2023.

Meridian realized net charge-offs of 0.11% of total average loans for the quarter ended December 31, 2023, compared with the quarter ended September 30, 2023 level of 0.05%, as net charge-offs increased to $2.2 million for the quarter ended December 31, 2023, compared to net-charge-offs of $913 thousand for the quarter ended September 30, 2023. Fourth quarter charge-offs were comprised of $1.2 million from small ticket equipment leases which are charged-off after becoming more than 120 days past due, and $890 thousand for an SBA loan. There were recoveries of $17 thousand, largely related to leases.

The ratio of allowance for credit losses to total loans held for investment, excluding loans at fair value (a non-GAAP measure, see reconciliation in the Appendix), was 1.17% as of December 31, 2023 compared to 1.05% as of September 30, 2023. As of December 31, 2023 there were specific reserves of $6.5 million against individually evaluated loans, an increase from $2.6 million as of September 30, 2023. The drivers of the increase related to a $2.3 million increase in a commercial loan relationship specific reserve for which new information became available related to the value of the underlying collateral, combined with the net impact of establishing $2.3 million in specific reserves on SBA loan relationships classified as non-performing, netted with the charge-off an SBA loan during the quarter that had a specific reserve of $890 thousand in the prior quarter.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “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 with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs

Exhibit 99.1

and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

Exhibit 99.1

MERIDIAN CORPORATION AND SUBSIDIARIES

FINANCIAL RATIOS (Unaudited)

(Dollar amounts and shares in thousands, except per share amounts)


	Quarter Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Earnings and Per Share Data:
Net income	$	571		$	4,005		$	4,645		$	4,021		$	4,557
Basic earnings per common share	$	0.05		$	0.36		$	0.42		$	0.36		$	0.40
Diluted earnings per common share	$	0.05		$	0.35		$	0.41		$	0.34		$	0.39
Common shares outstanding	11,183			11,178			11,178			11,305			11,466

Performance Ratios:
Return on average assets	0.10		%	0.73		%	0.86		%	0.78		%	0.92		%
Return on average equity	1.44			10.17			12.08			10.65			11.91
Net interest margin (tax-equivalent)	3.18			3.29			3.33			3.61			3.93

Yield on earning assets (tax-equivalent)	6.81			6.76			6.57			6.31			5.88

Cost of funds	3.81			3.63			3.39			2.83			2.07
Efficiency ratio	78.63		%	79.09		%	74.80		%	73.16		%	75.61		%

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans	0.11		%	0.05		%	0.05		%	0.08		%	0.05		%
Non-performing loans to total loans	1.76			1.53			1.44			1.25			1.20
Non-performing assets to total assets	1.58			1.38			1.32			1.11			1.11
Allowance for credit losses to:
Total loans held for investment	1.17			1.04			1.09			1.12			1.08
Total loans held for investment (excluding loans at fair value) (1)	1.17			1.05			1.10			1.13			1.09
Non-performing loans	65.48		%	67.61		%	73.97		%	88.41		%	88.66		%

Capital Ratios:
Book value per common share	$	14.13		$	13.88		$	13.77		$	13.54		$	13.37
Tangible book value per common share	$	13.78		$	13.53		$	13.42		$	13.18		$	13.01
Total equity/Total assets	7.04		%	6.95		%	6.98		%	6.86		%	7.43		%
Tangible common equity/Tangible assets - Corporation (1)	6.87			6.79			6.81			6.70			7.25
Tangible common equity/Tangible assets - Bank (1)	8.94			8.89			8.54			8.26			8.80

Tier 1 leverage ratio - Bank	9.46			9.65			9.22			9.32			9.95

Common tier 1 risk-based capital ratio - Bank	10.10			10.82			10.35			10.27			10.73

Tier 1 risk-based capital ratio - Bank	10.10			10.82			10.35			10.27			10.73

Total risk-based capital ratio - Bank	11.17		%	11.85		%	11.43		%	11.41		%	11.87		%
(1) See Non-GAAP reconciliation in the Appendix

Exhibit 99.1

MERIDIAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollar amounts and shares in thousands, except per share amounts)


	Three Months Ended						Year Ended
	December 31, 2023		September 30, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Interest income:
Loans and other finance receivables, including fees	$	34,469	$	33,980	$	26,440	$	130,081	$	84,627
Securities - taxable	1,020		901		821		3,873		2,420
Securities - tax-exempt	331		333		373		1,369		1,388
Cash and cash equivalents	526		245		129		1,266		286
Total interest income	36,346		35,459		27,763		136,589		88,721
Interest expense:
Deposits	16,806		15,543		8,215		57,819		15,397
Borrowings	2,598		2,692		1,030		9,828		3,196
Total interest expense	19,404		18,235		9,245		67,647		18,593
Net interest income	16,942		17,224		18,518		68,942		70,128
Provision for credit losses	4,628		82		746		6,815		2,488
Net interest income after provision for credit losses	12,314		17,142		17,772		62,127		67,640
Non-interest income:
Mortgage banking income	3,394		4,819		3,958		16,537		25,325
Wealth management income	1,239		1,258		1,061		4,928		4,733
SBA loan income	1,022		982		522		4,485		4,467
Earnings on investment in life insurance	204		201		140		789		553
Net change in the fair value of derivative instruments	(126)		103		10		91		(703)
Net change in the fair value of loans held-for-sale	120		111		249		32		(844)
Net change in the fair value of loans held-for-investment	805		(570)		91		132		(2,408)
Net gain on hedging activity	(53)		82		498		28		5,439
Net loss on sale of investment securities available-for-sale	—		(3)		—		(58)		—
Other	1,512		1,103		1,467		5,001		5,162
Total non-interest income	8,117		8,086		7,996		31,965		41,724
Non-interest expense:
Salaries and employee benefits	11,744		12,420		12,794		47,377		54,378
Occupancy and equipment	1,232		1,226		1,218		4,842		4,837
Professional fees	1,382		1,104		976		4,312		3,635
Advertising and promotion	931		848		996		3,730		4,336
Data processing and software	1,651		1,652		1,513		6,415		5,451
Pennsylvania bank shares tax	233		244		181		968		793
Other	2,530		2,524		2,369		9,481		8,014
Total non-interest expense	19,703		20,018		20,047		77,125		81,444
Income before income taxes	728		5,210		5,721		16,967		27,920
Income tax expense	157		1,205		1,164		3,724		6,091
Net income	$	571	$	4,005	$	4,557	$	13,243	$	21,829

Basic earnings per common share	$	0.05	$	0.36	$	0.40	$	1.19	$	1.85
Diluted earnings per common share	$	0.05	$	0.35	$	0.39	$	1.16	$	1.79

Basic weighted average shares outstanding	11,070		11,057		11,389		11,115		11,792
Diluted weighted average shares outstanding	11,206		11,363		11,795		11,387		12,204

Exhibit 99.1

MERIDIAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)

(Dollar amounts and shares in thousands, except per share amounts)


	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Assets:
Cash and due from banks	$	10,067	$	12,734	$	10,576	$	8,473	$	11,299
Interest-bearing deposits at other banks	46,630		47,025		36,290		100,030		27,092

Cash and cash equivalents	56,697		59,759		46,866		108,503		38,391
Securities available-for-sale, at fair value	146,019		122,218		126,668		142,933		135,346
Securities held-to-maturity, at amortized cost	35,781		36,232		36,463		36,525		37,479
Equity investments	2,121		2,019		2,097		2,110		2,086
Mortgage loans held for sale, at fair value	24,816		23,144		40,422		35,701		22,243
Loans and other finance receivables, net of fees and costs	1,895,806		1,885,629		1,859,839		1,818,189		1,743,682
Allowance for credit losses	(22,107)		(19,683)		(20,242)		(20,442)		(18,828)
Loans and other finance receivables, net of the allowance for credit losses	1,873,699		1,865,946		1,839,597		1,797,747		1,724,854
Restricted investment in bank stock	8,072		8,309		9,157		10,173		6,931
Bank premises and equipment, net	13,557		13,310		13,234		13,281		13,349
Bank owned life insurance	28,844		28,641		28,440		28,247		28,055
Accrued interest receivable	9,325		8,984		7,651		7,651		7,363
Other real estate owned	1,703		1,703		1,703		1,703		1,703
Deferred income taxes	4,201		4,993		4,258		4,017		3,936
Servicing assets	11,748		11,835		12,193		12,125		12,346
Goodwill	899		899		899		899		899
Intangible assets	2,971		3,022		3,073		3,124		3,175
Other assets	25,740		39,957		34,156		25,044		24,072
Total assets	$	2,246,193	$	2,230,971	$	2,206,877	$	2,229,783	$	2,062,228

Liabilities:
Deposits:
Non-interest bearing	$	239,289	$	244,668	$	269,174	$	262,636	$	301,727
Interest bearing
Interest checking	150,898		156,537		155,907		232,616		219,838
Money market and savings deposits	747,803		746,599		710,546		647,904		697,564
Time deposits	685,472		660,841		646,978		627,257		493,350
Total interest-bearing deposits	1,584,173		1,563,977		1,513,431		1,507,777		1,410,752
Total deposits	1,823,462		1,808,645		1,782,605		1,770,413		1,712,479
Borrowings	174,896		177,959		194,636		233,883		122,082

Subordinated debentures	49,836		50,079		40,348		40,319		40,346
Accrued interest payable	10,324		7,814		5,612		3,836		2,389
Other liabilities	29,653		31,360		29,714		28,283		31,652
Total liabilities	2,088,171		2,075,857		2,052,915		2,076,734		1,908,948

Stockholders’ equity:
Common stock	13,186		13,181		13,181		13,180		13,156
Surplus	80,325		79,731		79,650		79,473		79,072
Treasury stock	(26,079)		(26,079)		(26,079)		(24,512)		(21,821)
Unearned common stock held by employee stock ownership plan	(1,204)		(1,403)		(1,403)		(1,403)		(1,403)
Retained earnings	101,216		102,043		99,434		96,180		95,815
Accumulated other comprehensive loss	(9,422)		(12,359)		(10,821)		(9,869)		(11,539)
Total stockholders’ equity	158,022		155,114		153,962		153,049		153,280
Total liabilities and stockholders’ equity	$	2,246,193	$	2,230,971	$	2,206,877	$	2,229,783	$	2,062,228

Exhibit 99.1

MERIDIAN CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited)

(Dollar amounts and shares in thousands, except per share amounts)


	Three Months Ended
	December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
Interest income	$	36,346	$	35,459	$	33,836	$	30,947	$	27,763
Interest expense	19,404		18,235		16,738		13,270		9,245
Net interest income	16,942		17,224		17,098		17,677		18,518
Provision for credit losses	4,628		82		705		1,399		746
Non-interest income	8,117		8,086		9,124		6,638		7,996
Non-interest expense	19,703		20,018		19,615		17,789		20,047
Income before income tax expense	728		5,210		5,902		5,127		5,721
Income tax expense	157		1,205		1,257		1,106		1,164
Net Income	$	571	$	4,005	$	4,645	$	4,021	$	4,557

Basic weighted average shares outstanding	11,070		11,057		11,062		11,272		11,389
Basic earnings per common share	$	0.05	$	0.36	$	0.42	$	0.36	$	0.40

Diluted weighted average shares outstanding	11,206		11,363		11,304		11,656		11,795
Diluted earnings per common share	$	0.05	$	0.35	$	0.41	$	0.34	$	0.39


	Segment Information
	Three Months Ended December 31, 2023												Three Months Ended December 31, 2022
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	16,908		$	(15)		$	49		$	16,942		$	18,376		$	68		$	74		$	18,518
Provision for credit losses	4,628			—			—			4,628			746			—			—			746
Net interest income after provision	12,280			(15)			49			12,314			17,630			68			74			17,772
Non-interest income	2,051			1,239			4,827			8,117			1,291			1,061			5,644			7,996
Non-interest expense	13,202			957			5,544			19,703			12,939			918			6,190			20,047
Income (loss) before income taxes	$	1,129		$	267		$	(668)		$	728		$	5,982		$	211		$	(472)		$	5,721
Efficiency ratio	70		%	78		%	114		%	79		%	66		%	81		%	108		%	76		%

	Year Ended December 31, 2023												Year Ended December 31, 2022
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	68,835		$	(27)		$	134		$	68,942		$	68,570		$	697		$	861		$	70,128
Provision for credit losses	6,815			—			—			6,815			2,488			—			—			2,488
Net interest income after provision	62,020			(27)			134			62,127			66,082			697			861			67,640
Non-interest income	7,743			4,928			19,294			31,965			7,556			4,732			29,436			41,724
Non-interest expense	48,827			3,661			24,637			77,125			45,122			3,399			32,923			81,444
Income (loss) before income taxes	$	20,936		$	1,240		$	(5,209)		$	16,967		$	28,516		$	2,030		$	(2,626)		$	27,920
Efficiency ratio	64		%	75		%	127		%	76		%	59		%	63		%	109		%	73		%

MERIDIAN CORPORATION AND SUBSIDIARIES

APPENDIX: NON-GAAP MEASURES (Unaudited)

(Dollar amounts and shares in thousands, except per share amounts)

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.


	Pre-tax, Pre-provision Reconciliation
	Three Months Ended				Year Ended
(Dollars in thousands, except per share data)((Unaudited)	December 31, 2023		September 30, 2023		December 31, 2023		December 31, 2022
Income before income tax expense	$	728	$	5,210	$	16,967	$	27,920
Provision for credit losses	4,628		82		6,815		2,488
Pre-tax, pre-provision income	$	5,356	$	5,292	$	23,782	$	30,408


	Pre-tax, Pre-provision Reconciliation
	Three Months Ended				Year Ended
(Dollars in thousands, except per share data)((Unaudited)	December 31, 2023		September 30, 2023		December 31, 2023		December 31, 2022
Bank	$	5,757	$	6,399	$	27,751	$	31,004
Wealth	267		417		1,240		2,030
Mortgage	(668)		(1,524)		(5,209)		(2,626)
Pre-tax, pre-provision income	$	5,356	$	5,292	$	23,782	$	30,408


	Allowance For Loan Losses to Loans, Net of Fees and Costs, Excluding and Loans at Fair Value
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Allowance for credit losses (GAAP)	$	22,107		$	19,683		$	20,242		$	20,442		$	18,828

Loans, net of fees and costs (GAAP)	1,895,806			1,885,629			1,859,839			1,818,189			1,743,682

Less: Loans fair valued	(13,726)			(13,231)			(14,403)			(14,434)			(14,502)
Loans, net of fees and costs, excluding loans at fair value (non-GAAP)	$	1,882,080		$	1,872,398		$	1,845,436		$	1,803,755		$	1,729,180

Allowance for credit losses to loans, net of fees and costs (GAAP)	1.17		%	1.04		%	1.09		%	1.12		%	1.08		%
Allowance for credit losses to loans, net of fees and costs, excluding loans at fair value (non-GAAP)	1.17		%	1.05		%	1.10		%	1.13		%	1.09		%


	Tangible Common Equity Ratio Reconciliation - Corporation
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Total stockholders' equity (GAAP)	$	158,022		$	155,114		$	153,962		$	153,049		$	153,280
Less: Goodwill and intangible assets	(3,870)			(3,921)			(3,972)			(4,023)			(4,074)
Tangible common equity (non-GAAP)	154,152			151,193			149,990			149,026			149,206

Total assets (GAAP)	2,246,193			2,230,971			2,206,877			2,229,783			2,062,228
Less: Goodwill and intangible assets	(3,870)			(3,921)			(3,972)			(4,023)			(4,074)
Tangible assets (non-GAAP)	$	2,242,323		$	2,227,050		$	2,202,905		$	2,225,760		$	2,058,154
Tangible common equity to tangible assets ratio - Corporation (non-GAAP)	6.87		%	6.79		%	6.81		%	6.70		%	7.25		%


	Tangible Common Equity Ratio Reconciliation - Bank
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Total stockholders' equity (GAAP)	$	204,132		$	201,996		$	192,209		$	187,954		$	185,039
Less: Goodwill and intangible assets	(3,870)			(3,921)			(3,972)			(4,023)			(4,074)
Tangible common equity (non-GAAP)	200,262			198,075			188,237			183,931			180,965

Total assets (GAAP)	2,244,893			2,232,297			2,208,252			2,229,721			2,059,557
Less: Goodwill and intangible assets	(3,870)			(3,921)			(3,972)			(4,023)			(4,074)
Tangible assets (non-GAAP)	$	2,241,023		$	2,228,376		$	2,204,280		$	2,225,698		$	2,055,483
Tangible common equity to tangible assets ratio - Bank (non-GAAP)	8.94		%	8.89		%	8.54		%	8.26		%	8.80		%

	Tangible Book Value Reconciliation
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Book value per common share	$	14.13		$	13.88		$	13.77		$	13.54		$	13.37
Less: Impact of goodwill /intangible assets	0.35			0.35			0.35			0.36			0.36
Tangible book value per common share	$	13.78		$	13.53		$	13.42		$	13.18		$	13.01

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 NASDAQ: MRBK Q4'2023 Earnings Supplement

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 Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and the effects of inflation, a potential recession, among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward- looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 3Meridian Corporation MRBK INVESTMENT HIGHLIGHTS • "Go to" bank in the Delaware Valley - comfortably handles all but largest companies. • Technology driven with valuable customer base trained to solely use electronic channel. • Skilled management team with extensive in-market experience. • Strong sales culture that capitalizes on market disruption. • Demonstrated organic growth engine in diversified loan segments. • Financial services business model with significant non-interest revenue. • Historically well capitalized with strong net interest margin. • Excellent historical asset quality. • Strong net interest margin driven by loan yield. • Nationally recognized as a great place to work.

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 4Meridian Corporation GEOGRAPHIC FOOTPRINT • Serves PA, NJ, DE & MD • Philadelphia MSA is 8th largest in the US Regional Market • HQ in Malvern, PA • 6 full service branches • Main office in Wayne, PA • 10 mortgage loan production offices • Naples, FL • Reaches broad SW FL market ************************ Satellite Commercial Loan Production Office

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 5Meridian Corporation COMPANY SNAPSHOT (1) Includes home equity loans, residential mortgage loans held in portfolio and individual consumer loans. • Meridian is an innovative, growth oriented commercial bank serving the Tri-State area and the Baltimore /DC market. • We focus on customer success and helping to build the economics of our markets. • Meridian specializes in business and industrial lending, retail and commercial real estate lending, along with a broad menu of high- yielding depository products. • We deliver these services with great technology, supported by robust online and mobile access, and physical locations convenient to our customers. Cash & investments 11% C & I loans 27% CRE loans 29% Construction loans 13% Consumer loans (1) 14% Residential loans HFS 2% FF & E 0% Other assets 4% Asset Mix at December 31, 2023 Profile and Business Lines

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 6Meridian Corporation Q4'2023 HIGHLIGHTS 1) As of and for the quarter ended and year ended December 31, 2023, per January 26, 2024 press release. 2) Includes loans held for sale and loans held for investment. 3) A Non-GAAP measure. See Non-GAAP reconciliation in the Appendix. Financial Highlights ¹ Balance Sheet: • Portfolio loans grew $10.0 million, or 0.5% in Q4'23. - Y over Y up $157.8 million, or 9.1% • Commercial loans up $15.7 million, or 1.1% in Q4'23 - Y over Y up $114.6 million, or 8.7% • Deposits up $14.8 million in Q4'23. - Y over Y up $111.0 million, or 6.5% • Interest bearing deposits increased $20.2 million, - Y over Y up $173.4 million, or 12.3%. • Capital - 11.3% total RBC. • Bank CBLR - 9.5% • $9.7 million in sub debt raised Q3'23 Income Statement (Q4'23 v. Q3'23): • NII decreased $282 thousand; NIM 3.2%. • Provision for credit losses of $4.6 million. • MTG banking revenue down $1.4 million. • Non-interest expense down $315 thousand. • Bank pre-tax, pre-provision income of $5.8 million Balance Sheet ($ in Millions) Total Assets $ 2,246 Total Loans & Leases² $ 1,921 Deposits $ 1,823 Equity $ 158 Tangible Equity to Tangible Assets3 6.87 % Profitability (%) Q4'2023 FY 2023 ROE 1.44% 8.53% ROA 0.10% 0.61% NIM 3.18% 3.35% Asset Quality (%) ACL / Loans & Leases3 1.17% 4Q NCOs (recoveries) / Loans 0.11% Nonaccrual Loans / Loans 1.76 % Net Income & Share Data Q4'2023 FY 2023 (dollars in thousands, except for per share amounts) Net income $ 571 $ 13,243 Diluted earnings per share $ 0.05 $ 1.16 Price per common share $ 13.90 $ 13.90 Pre-tax, pre-provision income3 $ 5,356 $ 23,782 Pre-tax, pre-provision income - Bank3 $ 5,757 $ 27,751 Dividends per common share $ 0.125 $ 0.500 Dividend yield 0.9 % 3.6 % Payout ratio 250.0 % 42.0 %

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 7Meridian Corporation PRE-TAX, PRE-PROVISION INCOME BY SEGMENT Pre-tax, Pre-provision Income by Segment Q4'2023 Q3'2023 YR 2023 YR 2022 Bank $ 5,757 $ 6,399 $ 27,751 $ 31,004 Wealth 267 417 1,240 2,030 Mortgage (668) (1,524) (5,209) (2,626) Total Pre-tax Income $ 5,356 $ 5,292 $ 23,782 $ 30,408 % of Pre-tax, Pre-provision Income by Segment (Q4) 107.5% 5.0% Bank Wealth Mortgage % of Pre-tax, Pre-provision Income by Segment (YTD) 116.7% 5.2% Bank Wealth Mortgage

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 8Meridian Corporation NET INTEREST MARGIN • The net interest margin decreased 11 basis points to 3.18% as the cost of funds outpaced the increase in yield on earnings assets. • Interest income increased $881 thousand quarter-over-quarter, on a tax equivalent basis, due to a higher yield on earning assets and higher levels of average earning assets. • Total interest expense increased $1.2 million, quarter-over-quarter, due primarily to market interest rate rises, and an increase in deposit average balances. N IM Yield on E arning A ssets / C ost of Funds Net Interest Margin Trend 3.93% 3.61% 3.33% 3.29% 3.18% 5.88% 6.31% 6.57% 6.76% 6.81% 2.07% 2.83% 3.39% 3.63% 3.81% Net Interest Margin Yield on Earning Assets Cost of Funds Q4' 2022 Q1' 2023 Q2' 2023 Q3' 2023 Q4' 2023 3.00% 3.25% 3.50% 3.75% 4.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00%

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 increased $31 thousand or 0.4% • Mortgage banking income decreased $1.8 million, or 34.8%: • SBA loan income increased $40 thousand, or 4.1%: ◦ $20.1 million loans sold in Q4'2023, compared to $26.2 million in Q3'2023 ◦ Gross margin of 6.4% in Q4'2023, compared to 6.2% Q3'2023 • Other income increased $1.8 million, or 244.9%, due to a $1.4 million increase in the fair value on certain loans held-for- investment that are not included in mortgage banking income. (Dollars in thousands) Q4'2023 Q3'2023 $ Change Mortgage banking income 1 3,335 5,115 (1,780) SBA income 1,022 982 40 Wealth management income 1,239 1,258 (19) Other income 2,521 731 1,790 Total $ 8,117 $ 8,086 $ 31 Note 1 - includes FV change on mortgages HFS and related hedging derivatives. 41.1% 15.3% 12.6% 31.1% Mortgage banking income (incl. FV change) Wealth management income SBA income Other income (% of total non-interest income during Q4'2023)

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 10Meridian Corporation MORTGAGE PERFORMANCE • Fiscal year 2023 - unprecedented lack of homes for sale • Margin declined 44 basis points year over year • Mortgage loan origination volume down $445.3 million year over year Net Profit ($000s) $2,403 $20,899 $14,633 $(2,627) $(5,213) Revenue Expense Net profit 2019 2020 2021 2022 2023 $(25,000) $— $25,000 $50,000 $75,000 $100,000 Continued expense reductions: • Cumulative expense reduction of over $3.8 million. • Reducing FTEs, instituting pay cuts & other compensation changes, closing loan production offices. Cumulative Expense Reductions ($000s) $15 $336 $853 $1,593$1,636 $1,903 $2,673 $3,803 Cumulative expense reductions LTD Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 $— $1,000 $2,000 $3,000 $4,000

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 11Meridian Corporation MORTGAGE VOLUME & MARGIN TRENDS • Margin: 4Q 2023 margin of 2.76% up 5 bps from 2.71% for the prior quarter. • Purchase market comprised > 90% of the originations. • Volume continues to be impacted by lack of home inventory, higher mortgage rates, and high property values

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 12Meridian Corporation NON-INTEREST EXPENSE Non-Interest Expense down $315 thousand or 1.6% • Decreased salaries and benefits expense due to: ◦ Mortgage salaries down as loan origination and sales volumes down. Bank expense up due to increase in FTE's and incentive compensation. • Professional fees were up due to legal fees related to loan / OREO workouts. • Other expenses were up due primarily to seasonal increases in advertising and business development expense. (% of total non-interest expense during Q4'2023) (Dollars in thousands) Q4'2023 Q3'2023 $ Change Salaries and employee benefits 11,744 12,420 (676) Occupancy and equipment 1,232 1,226 6 Professional fees 1,382 1,104 278 Data processing and information 1,651 1,652 (1) Other 3,694 3,616 78 Total $ 19,703 $ 20,018 $ (315) 59.6% 6.3% 7.0% 8.4% 18.7% Salaries and employee benefits Occupancy and equipment Professional fees Data processing and information technology Other

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 13Meridian Corporation LOAN PORTFOLIO TRENDS Q4'2023 vs Q3'2023 (Dollars in thousands) December 31, 2023 September 30, 2023 Q over Q $ Change Annual Growth % Commercial mortgage 737,863 $ 696,124 $ 41,739 30.5 % Home equity lines and loans 76,287 73,844 2,443 28.4 % Residential mortgage 260,604 256,343 4,261 17.5 % Construction 246,440 276,590 (30,150) (9.4) % Commercial and industrial 234,359 231,511 2,848 1.2 % Shared national credits 68,532 68,350 182 0.3 % Small business loans 142,342 141,265 1,077 4.5 % Consumer 389 434 (45) (20.3) % Leases, net 126,597 138,963 (12,366) (8.9) % Total portfolio loans $ 1,893,413 $ 1,883,424 $ 9,989 9.1 % Commercial mortgage, 39% Home equity lines and loans, 4%Residential mortgage, 14% Construction , 13% Commercial and industrial, 12% Shared national credits, 4% Small business loans, 7% Leases, 7% Commercial - 82% Residential - 14% Home Equity - 4% • Portfolio loans grew $10.0 million in Q4'23, or 9.1% year over year. • Commercial CRE and construction loans combined grew $11.6 million in Q4'23, or 17.5% year over year. • Leases down $12.4 million in Q4'23, or 8.9% year over year due to reallocation of funds to: ◦ higher yielding portfolios ◦ relationship-based portfolios.

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 14Meridian Corporation Construction, 17.9% RE Investment , 22.5% Residential Mtg, 13.3%Other, 6.6% Manufacturing, 7.3% Retail Trade, 3.2% WholesaleTrade, 3.3% Health & Social Serv, 4.9% Professional Serv, 4.7% HELOC, 4.0% Leisure, 4.3% Science & Tech, 3.7% Admin & Support, 2.0% RE & Rental Lease, 1.0% Resi Construction, 0.5% Construction RE Investment Residential Mtg Other Manufacturing Retail Trade WholesaleTrade Health & Social Serv Professional Serv HELOC Leisure Science & Tech Admin & Support RE & Rental Lease Resi Construction Waste Mgmt & Remediation LOAN PORTFOLIO DIVERSIFICATION Total Loans $1.9 Billion 1 (as a % of total loans) (1) Included in RE Investment loans are $58.9 million (3% of total loans) non-owner occupied office space loans with an average loan size of $1.5 million.

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 15Meridian Corporation 1.38% 1.27% 1.20% 1.09% 1.13% 1.10% 1.05% 1.17% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 0.75% 1.00% 1.25% 1.50% ASSET QUALITY TRENDS 1) Includes loans held for sale and held for investment. 2) Excludes loans at fair value, which is a non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation 3) CECL standard adopted effective January 1, 2023, when we recorded an increase to allowance for credit losses of $1.6 million. Non-performing Loans & Assets Ratios(1) Net Charge-offs / Average Loans ACL / Loans (2)(3) 1.51% 1.46% 1.40% 1.20% 1.25% 1.44% 1.53% 1.76% 1.25% 1.24% 1.20% 1.11% 1.11% 1.32% 1.38% 1.58% NPLs / Loans NPAs / Assets Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 1.00% 1.25% 1.50% 1.75% 2.00% $546 $414 $357 $891 $1,453 $986 $913 $2,197 0.04% 0.04% 0.02% 0.05% 0.08% 0.05% 0.05% 0.11% Net C/O's ($) Net Charge-offs Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 0.00% 0.05% 0.10% 0.15% $— $1,000 $2,000 $3,000 $615 $602 $526 $746 $1,399 $705 $82 $4,628 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 $— $1,000 $2,000 $3,000 $4,000 $5,000 Provision for Credit Losses ($000s)

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 16Meridian Corporation DEPOSIT COMPOSITION Business Accounts, 58% Consumer Accounts, 11% Municipal Deposits, 8% Brokered Deposits, 23% Business Accounts Consumer Accounts Municipal Deposits Brokered Deposits Total Deposits $1.8 Billion • At December 31, 2023, 65% of business accounts and 89% of consumer accounts were fully insured by the FDIC. • The average business money market account balance was $424 thousand at December 31, 2023. • The municipal deposits are 100% insured or collateralized and brokered deposits are 100% FDIC insured. • The level of uninsured deposits for the entire deposit base was 21% at December 31, 2023. (as a % of total deposits)

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 17Meridian Corporation INVESTMENT PORTFOLIO COMPOSITION • Total investment securities 8.2% of total assets: – 81% Available for sale (AFS). – 19% Held-to-maturity (HTM). • 100% investment grade: – w/ 67% >AA or higher. • Average TEY of 3.23% year-to-date. • Portfolio duration - 4.3 years and average life - 5.4 years. • 12-month projected cash flow $22.4 million, or 12% of portfolio • Total net unrealized loss of $11.6 million: – HTM $1.1 million. – AFS $10.5 million. – AOCI $9.0 or 4.2% of Bank Tier 1 Capital. (1) Capital ratios reflect Meridian Bank ratios. US government agency 39.5% State & municipal - tax free 21.3% Other 11.1% US asset backed 9.2% State & municipal - taxable 17.8% Equity Securities 1.2% US government agency State & municipal - tax free Other US asset backed State & municipal - taxable Equity Securities Total Securities $183.8 million (as a % of total investments)

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 18Meridian Corporation STRONG BANK CAPITAL POSITION • All Bank capital ratios(1) exceed well capitalized regulatory requirements. ◦ Added $9.7 million of Corp. sub debt in Q3, $9 million dropped down to Bank as Tier 1 ◦ Community Banking Leverage Ratio of 9.46% compared to minimum of 9.0% ◦ $10.2 million of excess capital. • On January 25, 2024, the Board of Directors declared a Q4'2023 dividend of $0.125 per common share. Excess Capital (000s) $99,606 $43,986 $75,368 $24,460 9.46% 10.10% 10.10% 11.17% Regulatory Minimum Excess Capital Ratio Tier 1 Leverage Ratio ($) Tier 1 Risk Based Ratio ($) CE Tier 1 Ratio ($) Total Risk Based Ratio ($) $— $50,000 $100,000 $150,000 $200,000 $250,000 9.00% 10.00% 11.00% 12.00% 13.00% 14.00% (1) Capital ratios reflect Meridian Bank ratios.

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 19Meridian Corporation APPENDIX - HISTORICAL FINANCIAL HIGHLIGHTS AND RECONCILIATIONS 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 20Meridian 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). 3) A Non-GAAP measure. See Appendix for Non-GAAP to GAAP reconciliation. As of or the Quarter Ended As of or the Year Ended (dollars in thousands) Q4'2023 Q3'2023 Q4'2022 2023Y 2022Y 2021Y Balance Sheet Total Assets $ 2,246,193 $ 2,230,971 $ 2,062,228 $ 2,246,193 $ 2,062,228 $ 1,713,443 Loans (1) 1,920,622 1,908,773 1,765,925 1,920,622 1,765,925 1,467,339 Deposits 1,823,462 1,808,645 1,712,479 1,823,462 1,712,479 1,446,413 Gross Loans / Deposits 105.33 % 105.54 % 103.12 % 105.33 % 103.12 % 101.45 % Capital Total Equity $ 158,022 $ 155,114 $ 153,280 $ 158,022 $ 153,280 $ 165,360 Tangible Common Equity / Tangible Assets - HC (3) 6.87 % 6.79 % 7.25 % 6.87 % 7.25 % 9.42 % Tangible Common Equity / Tangible Assets - Bank (3) 8.94 8.89 8.80 8.94 8.80 11.54 Tier 1 Leverage Ratio - Bank 9.46 9.65 9.95 9.46 9.95 11.51 Total Capital Ratio - Bank 11.17 11.85 11.87 11.17 11.87 14.63 Commercial Real Estate Loans / Total RBC 255.9 % 261.3 % 232.8 % 255.9 % 232.8 % 167.2 % Earnings & Profitability Net Income $ 571 $ 4,005 $ 4,557 $ 13,243 $ 21,829 $ 35,585 ROA 0.10 % 0.73 % 0.92 % 0.61 % 1.18 % 2.06 % ROE 1.44 10.17 11.91 8.53 13.87 23.74 Net Interest Margin (NIM)(TEY) 3.18 3.29 3.93 3.35 3.98 3.77 Non-Int Inc. / Avg. Assets 1.45 1.47 1.62 1.48 2.26 5.09 Efficiency Ratio 78.63 % 79.09 % 75.61 % 76.43 % 72.81 % 68.65 % Asset Quality Nonaccrual Loans / Loans (1) 1.76 % 1.53 % 1.20 % 1.76 % 1.20 % 1.57 % NPAs / Assets 1.58 1.38 1.11 1.58 1.11 1.34 Reserves / Loans (2) (3) 1.17 1.05 1.09 1.17 1.09 1.46 NCOs / Average Loans 0.11 % 0.05 % 0.05 % 0.30 % 0.15 % 0.00 % Yield and Cost Yield on Earning Assets (TEY) 6.81 % 6.76 % 5.88 % 6.62 % 5.02 % 4.27 % Cost of Deposits 3.66 3.46 1.92 3.24 0.97 0.48 Cost of Interest-Bearing Liabilities 4.36 % 4.16 % 2.51 % 3.97 % 1.36 % 0.65 %

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 21Meridian Corporation Allowance For Credit Losses to Loans, Net of Fees and Costs, Excluding Loans at Fair Value (dollars in thousands) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Allowance for credit losses (GAAP) $ 22,107 $ 19,683 $ 20,242 $ 20,442 $ 18,828 Loans, net of fees and costs (GAAP) 1,895,806 1,885,629 1,859,839 1,818,189 1,743,682 Less: Loans fair valued (13,726) (13,231) (14,403) (14,434) (14,502) GAAP) $ 1,882,080 $ 1,872,398 $ 1,845,436 $ 1,803,755 $ 1,729,180 Allowance for credit losses to loans, net of fees and costs (GAAP) 1.17 % 1.04 % 1.09 % 1.12 % 1.08 % loans at fair value (non-GAAP) 1.17 % 1.05 % 1.10 % 1.13 % 1.09 % RECONCILIATION OF NON-GAAP MEASURES Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Pre-tax, Pre-provision Reconciliation Three Months Ended Year Ended (Dollars in thousands, except per share data) December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022 Income before income tax expense $ 728 $ 5,210 $ 16,967 $ 27,920 Provision for credit losses 4,628 82 6,815 2,488 Pre-tax, pre-provision income $ 5,356 $ 5,292 $ 23,782 $ 30,408 Bank $ 5,757 $ 6,399 $ 27,751 $ 31,004 Wealth 267 417 1,240 2,030 Mortgage (668) (1,524) (5,209) (2,626) Pre-tax, pre-provision income $ 5,356 $ 5,292 $ 23,782 $ 30,408

239 15 75 111 111 113 186 12 47 0 0 0 234 234 234 186 12 0 112 173 71 22Meridian Corporation (dollars in thousands) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Tangible common equity ratio - Consolidated: Total stockholders' equity (GAAP) $ 158,022 $ 155,114 $ 153,962 $ 153,049 $ 153,280 Less: Goodwill and intangible assets (3,870) (3,921) (3,972) (4,023) (4,074) Tangible common equity (non-GAAP) $ 154,152 $ 151,193 $ 149,990 $ 149,026 $ 149,206 Total assets (GAAP) $ 2,246,193 $ 2,230,971 $ 2,206,877 $ 2,229,783 $ 2,062,228 Less: Goodwill and intangible assets (3,870) (3,921) (3,972) (4,023) (4,074) Tangible assets (non-GAAP) $ 2,242,323 $ 2,227,050 $ 2,202,905 $ 2,225,760 $ 2,058,154 Tangible common equity ratio (non-GAAP) 6.87 % 6.79 % 6.81 % 6.70 % 7.25 % Tangible common equity ratio - Bank: Total stockholders' equity (GAAP) $ 204,132 $ 201,996 $ 192,209 $ 187,954 $ 185,039 Less: Goodwill and intangible assets (3,870) (3,921) (3,972) (4,023) (4,074) Tangible common equity (non-GAAP) $ 200,262 $ 198,075 $ 188,237 $ 183,931 $ 180,965 Total assets (GAAP) $ 2,244,893 $ 2,232,297 $ 2,208,252 $ 2,229,721 $ 2,059,557 Less: Goodwill and intangible assets (3,870) (3,921) (3,972) (4,023) (4,074) Tangible assets (non-GAAP) $ 2,241,023 $ 2,228,376 $ 2,204,280 $ 2,225,698 $ 2,055,483 Tangible common equity ratio (non-GAAP) 8.94 % 8.89 % 8.54 % 8.26 % 8.80 % RECONCILIATION OF NON-GAAP MEASURES

Cover	Jan. 26, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 26, 2024
Entity Registrant Name	Meridian Corp
Entity Incorporation, State or Country Code	PA
Entity File Number	000-55983
Entity Tax Identification Number	83-1561918
Entity Address, Address Line One	9 Old Lincoln Highway, Malvern, Pennsylvania
Entity Address, City or Town	Malvern
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19355
City Area Code	(484) 568-5000Registrant’s telephone number, including area code
Local Phone Number	(484) 568-5000Registrant’s telephone number, including area code
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	MRBK
Security Exchange Name	NASDAQ
Entity Central Index Key	0001750735
Amendment Flag	false