Meridian's Q1 net income falls 34% from prior quarter on higher credit costs

Meridian

23/04/2026 22:23

Overview

U.S. community bank's Q1 net income fell 34% from prior qtr, nearly doubled yr/yr

Q1 pre-provision net revenue rose 21% yr/yr; net interest margin improved to 3.82%

Quarterly results impacted by lower non-interest income and higher credit costs

Outlook

Meridian expects SBA loan sale income to rebound towards year end

Result Drivers

NET INTEREST MARGIN - Margin improved to 3.82% due to deposit repricing and repositioning in the deposit base

NON-INTEREST INCOME DECLINE - Lower mortgage banking and SBA loan sale income reduced non-interest income

ELEVATED CREDIT COSTS - Higher charge-offs in SBA and leasing portfolios drove increased provision for credit losses

Company press release: ID:nGNX1qvTJ2

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Pre-provision net revenue
$10.10 mln
Q1 EPS
$0.39
Q1 Dividend
$0.14
Q1 Net Interest Margin
3.82%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Meridian Corp is $22.00, about 8.9% above its April 22 closing price of $20.20

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)