--- title: "Meridian Bank of Malvern PA | 8-K: FY2026 Q1 Revenue: USD 47.75 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/283881404.md" datetime: "2026-04-23T19:22:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283881404.md) - [en](https://longbridge.com/en/news/283881404.md) - [zh-HK](https://longbridge.com/zh-HK/news/283881404.md) --- # Meridian Bank of Malvern PA | 8-K: FY2026 Q1 Revenue: USD 47.75 M Revenue: As of FY2026 Q1, the actual value is USD 47.75 M. EPS: As of FY2026 Q1, the actual value is USD 0.39, missing the estimate of USD 0.475. EBIT: As of FY2026 Q1, the actual value is USD -17.12 M. ### Financial and Operational Metrics #### Quarterly Dividend Meridian Corporation’s Board of Directors declared a quarterly cash dividend of $0.14 per common share on April 23, 2026, payable on May 11, 2026, to shareholders of record as of May 4, 2026. #### Net Income Meridian Corporation reported net income of $4.7 million for the first quarter of 2026, a decrease of $2.5 million, or 34.4%, from the prior quarter. Compared to the first quarter of 2025, net income nearly doubled to $4,714 thousand from $2,399 thousand. #### Pre-provision Net Revenue (PPNR) Pre-provision net revenue for the first quarter of 2026 was $10.1 million, an improvement of $1.7 million, or 21%, from the first quarter of 2025. Total PPNR for Q1 2026 was $10,081 thousand, up from $8,357 thousand in Q1 2025. **Bank Segment**: PPNR was $10,513 thousand in Q1 2026, up from $8,860 thousand in Q1 2025. **Wealth Segment**: PPNR increased to $811 thousand in Q1 2026 from $726 thousand in Q1 2025. **Mortgage Segment**: PPNR was - $1,243 thousand in Q1 2026, compared to - $1,229 thousand in Q1 2025. #### Net Interest Margin and Related Metrics The net interest margin improved to 3.82% for the first quarter of 2026, compared to 3.77% in the prior quarter and 3.46% in Q1 2025. The loan yield declined to 7.03%, while the cost of funds declined to 3.04% over the same period. Interest income decreased by - $2.1 million quarter-over-quarter on a tax-equivalent basis, and interest expense decreased by - $1.7 million quarter-over-quarter. #### Operational Ratios Return on average assets (ROAA) for the first quarter of 2026 was 0.74%, compared to 0.40% in Q1 2025. Return on average equity (ROAE) was 9.44% for Q1 2026, significantly higher than 5.57% in Q1 2025. The efficiency ratio was 66.66% for Q1 2026, compared to 63.25% in Q4 2025 and 69.16% in Q1 2025. #### Total Assets Total assets stood at $2.6 billion ($2,579 million) as of March 31, 2026, an increase of $17.3 million, or 0.7%, from December 31, 2025. Total assets were $2,529 million at March 31, 2025. #### Loan Growth Commercial loans, excluding leases, increased by $17.9 million, or 1%, from the prior quarter. Portfolio loans grew by $15.0 million, or 0.7%, quarter-over-quarter. Commercial & industrial loans increased by $15.4 million (3.6% YTD growth) and construction loans by $12.8 million (3.9% YTD growth). These increases were partially offset by decreases in commercial mortgage loans (- $5.0 million or -0.6% YTD), SBA loan balances (- $5.3 million or -3.8% YTD), and lease financings (- $4.7 million or -10.2% YTD).Total Loans & Leases were $2,224 million as of Q1 2026, up from $2,100 million as of Q1 2025. #### Total Deposits Total deposits increased by $11.8 million, or 0.5%, quarter-over-quarter, primarily due to a $13.8 million increase in interest-bearing deposits. Non-interest bearing deposits decreased by - $1.9 million or -0.8%. Total deposits were $2,170 million as of Q1 2026, up from $2,129 million as of Q1 2025.Deposit composition includes 51% business accounts, 15% consumer accounts, 11% municipal deposits, and 23% brokered time deposits, with 20% of the entire deposit base being uninsured. #### Stockholders’ Equity Total stockholders’ equity increased by $3.2 million from December 31, 2025, to $202.9 million as of March 31, 2026 ($203 million). Changes included net income of $4.7 million and an increase of $424 thousand in other comprehensive income, partially offset by dividends paid of - $1.7 million. #### Provision for Credit Losses The overall provision for credit losses for the first quarter of 2026 increased by $712 thousand to $4.0 million ($3,999 thousand), up from $3.3 million in the fourth quarter of 2025. This increase was mainly due to a $373 thousand increase in net charge-offs and an increase in baseline ACL and qualitative reserve factors on certain loan portfolios. #### Non-interest Income Total non-interest income decreased by - $3.6 million, or -33.7%, quarter-over-quarter to $7,037 thousand in Q1 2026 from $10,615 thousand in Q4 2025. This was largely due to a - $1.2 million decrease in mortgage banking income (to $4,115 thousand from $6,001 thousand) and a - $1.1 million decline in SBA loan income (to $150 thousand from $1,285 thousand). A gain on sale of investment securities of $453 thousand in the prior quarter was not repeated. #### Non-interest Expense Total non-interest expense decreased by - $1.5 million, or -6.9%, quarter-over-quarter to $20,158 thousand in Q1 2026 from $21,658 thousand in Q4 2025. Salaries and employee benefits decreased by - $717 thousand, advertising and promotion costs decreased by - $252 thousand, and other expenses decreased by - $428 thousand. #### Asset Quality Non-performing loans increased by $656 thousand to $55.7 million at March 31, 2026, compared to $55.1 million at December 31, 2025. The ratio of non-performing loans to total loans remained unchanged at 2.50% at March 31, 2026. Net charge-offs increased to $3.9 million, or 0.18% of total average loans, for the quarter ended March 31, 2026, up from $3.5 million, or 0.16%, in the prior quarter. The ratio of allowance for credit losses to total loans held for investment was 1.00% as of March 31, 2026, consistent with December 31, 2025. Non-Performing Assets (NPAs) / Assets was 2.39% in Q1 2026. #### Capital Ratios The Community Bank Leverage Ratio for Meridian Bank was 9.69% at March 31, 2026. The Tier 1 leverage ratio for the Bank was 9.69%, the Common tier 1 risk-based capital ratio was 10.63%, and the Total risk-based capital ratio was 11.64% as of March 31, 2026. Tangible Equity / Tangible Assets was 7.75% as of Q1 2026, up from 6.73% as of Q1 2025. #### Investment Portfolio Composition Total Investment Securities represented 8.9% of total assets, with 86% available for sale (AFS) and 14% held-to-maturity (HTM). The portfolio duration was 3.74 years, with an average life of 4.90 years and a tax-equivalent yield of 3.83%. Post-tax AFS unrealized losses were - $4.9 million, or 1.97% of Tier 1 capital. #### Outlook / Guidance Meridian Corporation anticipates a rebound in SBA loan sale income towards year-end despite a significant decrease following a management change. The company expects increased mortgage originations this year if housing inventory continues to improve and remains confident in achieving another year of double-digit commercial loan growth. 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