Meridian Bank reports Q2 EPS 41c, consensus 38c

The provision for credit losses decreased to $705 thousand for the second quarter from $1.4 million for the first quarter. The favorable decline of $694 thousand was largely due to a $467 thousand decline in charge-offs period over period, as well as the improvement in certain qualitative factors considered in our allowance for credit losses. As of June 30, 2023, total assets decreased $22.9 million, or 1.0%, to $2.2 billion from March 31, 2023. Christopher Annas, Chairman and CEO commented, “Meridian’s second quarter revenue of $43.0 million generated earnings of $4.6 million, or $0.41 per diluted share. Annual loan growth in the core CRE, C&I and SBA portfolios are expected to again approach 15%. These groups also bring deposits and other referrals, which enhances overall yields. Construction lending for residential and multi-family is still robust because of high demand, as for-sale homes are at historical lows. Credit has not deteriorated meaningfully in any segment and we remain diligent with our credit process and diversification.”