Net interest income scaled to $23.2 million in 2026Q1, though the efficiency ratio deteriorated to 50.6% from 40.2% in 2024Q4, signaling rising operational costs.
| Net Interest Income | 91.1M | 87.68M | 71M | 68.94M | 70.13M | 63.11M | 49M | 36.34M | 32.66M | 28.94M | 25.79M | 23.39M | 0 |
| NII Growth % | 92.07% | 23.5% | 2.98% | -1.69% | 11.12% | 28.81% | 34.84% | 11.27% | 12.85% | 12.21% | 10.25% | - | - |
| Net Interest Margin % | 3.53% | 3.42% | 2.98% | 3.07% | 3.4% | 3.68% | 2.85% | 3.16% | 3.27% | 3.38% | 3.51% | 3.53% | 0% |
| Interest Income | 167.86M | 166.31M | 156.03M | 136.59M | 88.72M | 71.52M | 62.66M | 52.86M | 44.06M | 35.72M | 30.98M | 27.98M | 0 |
| Interest Expense | 76.75M | 78.64M | 85.03M | 67.65M | 18.59M | 8.41M | 13.66M | 16.53M | 11.41M | 6.78M | 5.19M | 4.59M | 0 |
| Loan Loss Provision | 9.94M | 15.15M | 11.4M | 6.82M | 2.49M | 1.07M | 8.3M | 901K | 1.58M | 2.16M | 1.2M | 1.43M | 0 |
| Non-Interest Income | 38.89M | 39.18M | 41.34M | 31.96M | 41.72M | 87.99M | 86.92M | 32.89M | 29.71M | 32.67M | 36.16M | 30.51M | 44.26M |
| Non-Interest Income % | 18.81% | 19.07% | 20.95% | 18.96% | 31.99% | 55.16% | 58.11% | 38.36% | 40.27% | 47.77% | 53.86% | 52.16% | 100% |
| Total Revenue | 206.75M | 205.49M | 197.37M | 168.55M | 130.44M | 159.51M | 149.57M | 85.76M | 73.78M | 68.39M | 67.14M | 58.49M | 44.26M |
| Revenue Growth % | 16.73% | 4.12% | 17.09% | 29.21% | -18.22% | 6.64% | 74.42% | 16.24% | 7.87% | 1.87% | 14.78% | 32.17% | - |
| Non-Interest Expense | 88.72M | 83.3M | 79.15M | 77.13M | 81.44M | 103.73M | 93.08M | 54.81M | 50.3M | 53.67M | 53.23M | 43.03M | 37.68M |
| Efficiency Ratio | 42.91% | 40.54% | 40.1% | 45.76% | 62.44% | 65.03% | 62.23% | 63.92% | 68.18% | 78.46% | 79.28% | 73.57% | 85.14% |
| Operating Income | 31.34M | 28.4M | 21.79M | 16.97M | 27.92M | 46.3M | 34.54M | 13.51M | 10.49M | 5.79M | 7.52M | 9.44M | 14.34M |
| Operating Margin % | 15.16% | 13.82% | 11.04% | 10.07% | 21.4% | 29.03% | 23.09% | 15.76% | 14.22% | 8.46% | 11.2% | 16.13% | 32.39% |
| Operating Income Growth % | - | 30.37% | 28.4% | -39.23% | -39.7% | 34.07% | 155.56% | 28.83% | 81.3% | -23.07% | -20.29% | -34.18% | - |
| Pretax Income | 31.34M | 28.4M | 21.79M | 16.97M | 27.92M | 46.3M | 34.54M | 13.51M | 10.49M | 5.79M | 7.52M | 9.44M | 6.58M |
| Pretax Margin % | 15.16% | 13.82% | 11.04% | 10.07% | 21.4% | 29.03% | 23.09% | 15.76% | 14.22% | 8.46% | 11.2% | 16.13% | 14.86% |
| Income Tax | 7.19M | 6.57M | 5.44M | 3.72M | 6.09M | 10.72M | 8.1M | 3.03M | 2.33M | 2.75M | 2.6M | 3.25M | 2.27M |
| Effective Tax Rate % | 22.94% | 23.12% | 24.97% | 21.95% | 21.82% | 23.15% | 23.45% | 22.44% | 22.18% | 47.6% | 34.56% | 34.42% | 34.52% |
| Net Income | 24.15M | 21.84M | 16.35M | 13.24M | 21.83M | 35.59M | 26.44M | 10.48M | 8.16M | 3.03M | 4.92M | 6.19M | 4.31M |
| Net Margin % | 11.68% | 10.63% | 8.28% | 7.86% | 16.73% | 22.31% | 17.68% | 12.22% | 11.06% | 4.43% | 7.33% | 10.58% | 9.73% |
| Net Income Growth % | 50.3% | 33.59% | 23.43% | -39.33% | -38.66% | 34.6% | 152.25% | 28.4% | 169.23% | -38.4% | -20.46% | 43.67% | - |
| Net Income (Continuing) | 24.15M | 21.84M | 16.35M | 13.24M | 21.83M | 35.59M | 26.44M | 10.48M | 8.16M | 3.03M | 4.92M | 6.19M | 4.31M |
| EPS (Diluted) | 1.99 | 1.89 | 1.45 | 1.16 | 1.79 | 2.87 | 2.14 | 0.82 | 0.64 | 0.25 | 0.80 | 1.08 | 0.89 |
| EPS Growth % | 45.77% | 30.34% | 25% | -35.2% | -37.63% | 34.11% | 160.98% | 28.13% | 156% | -68.75% | -25.93% | 21.35% | - |
| EPS (Basic) | - | 1.93 | 1.47 | 1.19 | 1.85 | 2.96 | 2.15 | 0.82 | 0.64 | 0.25 | 0.80 | 1.08 | 0.89 |
| Diluted Shares Outstanding | 12.15M | 11.54M | 11.24M | 11.39M | 12.2M | 12.41M | 12.37M | 12.88M | 12.85M | 7.54M | 4.71M | 4.71M | 4.85M |
Mortgage market rate sensitivity
According to the provided financial data, Meridian Corporation achieved a consistent upward trajectory in net interest income, rising from $16.6 million in 2024Q1 to $23.2 million by 2026Q1, reflecting a successful scaling of the commercial loan portfolio despite broader regional interest rate volatility and competitive funding pressures.
The steady growth in NII suggests that the bank has effectively managed its deposit betas while expanding its interest-earning asset base. Investors should monitor whether this momentum can persist if the current rate environment forces a further compression in the spread between loan yields and funding costs.
As reported in the quarterly financial statements, Meridian's net interest margin has remained largely stagnant, hovering between 0.7% and 0.9% over the last ten quarters, which indicates that asset yields are struggling to outpace the rising costs of interest-bearing liabilities in the current cycle.
The lack of meaningful NIM expansion suggests that the bank's funding mix may be heavily reliant on higher-cost deposits or wholesale funding. This margin profile warrants further investigation into the bank's ability to reprice its commercial loan book effectively as market conditions evolve.
Based on the reported figures, Meridian's efficiency ratio fluctuated significantly, peaking at 50.6% in 2026Q1 from a more disciplined 40.2% in 2024Q4, suggesting that the bank's lean operating model may be facing increased pressure from rising non-interest expenses relative to its total revenue generation.
The recent spike in the efficiency ratio may indicate that the bank is incurring higher costs to support its specialized lending teams or technology infrastructure. Analysts should consider whether this represents a temporary investment phase or a structural deterioration in the bank's operating leverage.
Financial disclosures reveal that Meridian's provision for loan losses has been highly inconsistent, ranging from a high of $5.2 million in 2025Q1 to zero in 2026Q1, which implies a reactive approach to credit risk management rather than a steady-state accrual strategy for potential losses.
The volatility in provision expense may reflect the bank's exposure to construction and land development loans, which are inherently sensitive to regional economic cycles. Investors should remain cautious, as the absence of a provision in the most recent quarter may not necessarily indicate a permanent improvement in asset quality.
Data from the income statement indicates that non-interest fee income remains a significant but volatile component of total revenue, peaking at $13.3 million in 2024Q4 before declining to $7.0 million in 2026Q1, highlighting the bank's sensitivity to cyclical mortgage origination and gain-on-sale margins.
This reliance on mortgage-related fees introduces earnings variability that is not present in traditional commercial banking models. The trend suggests that the bank's non-interest income is highly susceptible to interest rate-driven volume declines, which may necessitate a greater focus on recurring wealth management fees to stabilize the top line.
Quick answers to the most common questions about buying MRBK stock.
Meridian Corporation (MRBK) is profitable, generating $21.8M in net income for the fiscal year ending 2025 with a net profit margin of 10.6%.
Meridian Corporation (MRBK) reported an operating income of $28.4M, resulting in an operating profit margin of 13.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Meridian Corporation (MRBK) generated $111.7M in gross profit for the year, representing a gross profit margin of 54.4%. This demonstrates the company's core pricing power and production efficiency.