Meridian Bank reports Q4 EPS 77c, consensus 90c

Reports Q4 provision for loan losses increased $220,000 to $746,000. Q4 provision was the result of new loan growth as well as covering $933,000 in charge-offs on small ticket equipment leases, partially offset by improvements in certain qualitative factors and decreases in specific reserves due to payoffs on non-performing loans and other underlying credit quality improvements. Christopher J. Annas, Chairman and CEO commented, "Meridian’s Q4 revenue of $35.8M generated earnings of $4.6M, or 77c per diluted share. The bank fundamentals were very strong, with net interest margin of 3.93% and quarterly loan growth of 8%. Loan demand has been consistent within our customer base, and we also won a number of relationships from competitors. Reduced income from our ancillary businesses, mortgage and SBA hurt bottom line results. On an annual basis, we fared well in a tumultuous year. Loans grew 26%, led by commercial real estate and commercial/industrial. We also generated adjustable rate mortgages for the portfolio, in shorter maturity buckets. I’m very pleased with a 3.98% net interest margin for the year. The change from a flush deposit environment to rapid rate increases and deposit outflows has been a challenge. Credit quality is good, and we experienced some non-performing loan payoffs. Our branch lite and customer self-service model helps control expenses."