Company Quick10K Filing
Meridian
Price17.69 EPS1
Shares6 P/E15
MCap113 P/FCF26
Net Debt-41 EBIT24
TEV73 TEV/EBIT3
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-09
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-30
10-Q 2019-09-30 Filed 2019-11-13
10-Q 2019-06-30 Filed 2019-08-14
10-Q 2019-03-31 Filed 2019-05-29
10-K 2018-12-31 Filed 2019-04-01
8-K 2020-11-09 Regulation FD, Exhibits
8-K 2020-10-22 Earnings, Other Events, Exhibits
8-K 2020-08-31 Other Events
8-K 2020-07-29 Regulation FD, Exhibits
8-K 2020-07-27 Earnings, Other Events, Exhibits
8-K 2020-06-11
8-K 2020-05-05
8-K 2020-04-27
8-K 2020-03-12
8-K 2020-02-05
8-K 2020-02-03
8-K 2020-01-27
8-K 2019-12-18
8-K 2019-10-24
8-K 2019-07-29
8-K 2019-05-29
8-K 2019-05-23
8-K 2019-05-23
8-K 2019-05-17
8-K 2019-04-11
8-K 2019-03-07
8-K 2019-01-25

MRBK 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 mrbk-20200930xex31d1.htm
EX-31.2 mrbk-20200930xex31d2.htm
EX-32 mrbk-20200930xex32.htm

Meridian Earnings 2020-09-30

Balance SheetIncome StatementCash Flow

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

Or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to               

Commission File Number: 000-55983

Graphic

(Exact name of registrant as specified in its charter)

Pennsylvania

83-1561918

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

9 Old Lincoln Highway, Malvern, Pennsylvania 19355

(Address of principal executive offices) (Zip Code)

(484) 568-5000

(Registrant’s telephone number, including area code)

Title of class

Trading Symbol

Name of exchange on which registered

Common Stock, $1 par value

MRBK

The NASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer 

Accelerated Filer 

Non-accelerated Filer 

Smaller Reporting Company 

Emerging Growth Company    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 8, 2020 there were 6,132,403 outstanding shares of the issuer’s common stock, par value $1.00 per share.

Table of Contents

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION

Item 1 Financial Statements (Unaudited)

3

Consolidated Balance Sheets – September 30, 2020 and December 31, 2019

3

Consolidated Statements of Income – Three and Nine Months Ended September 30, 2020 and 2019

4

Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2020 and 2019

5

Consolidated Statements of Stockholders’ Equity – Three and Nine Months Ended September 30, 2020 and 2019

6

Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2020 and 2019

8

Notes to Consolidated Financial Statements (Unaudited)

9

Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

37

Item 3 Quantitative and Qualitative Disclosures about Market Risk

57

Item 4 Controls and Procedures

58

PART II OTHER INFORMATION

Item 1 Legal Proceedings

59

Item 1A Risk Factors

59

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

61

Item 3 Defaults Upon Senior Securities

61

Item 4 Mine Safety Disclosures

61

Item 5 Other Information

61

Item 6 Exhibits

61

Signatures

63

Table of Contents

MERIDIAN CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

September 30, 

December 31, 

(dollars in thousands, except per share data)

    

2020

    

2019

Cash and due from banks

$

74,941

19,106

Federal funds sold

928

20,265

Cash and cash equivalents

75,869

39,371

Securities available-for-sale (amortized cost of $101,471 and $58,874 as of September 30, 2020 and December 31, 2019)

103,358

58,856

Securities held-to-maturity (fair value of $6,916 and $9,003 as of September 30, 2020 and December 31, 2019)

6,544

8,780

Equity investments

1,034

1,009

Mortgage loans held for sale (amortized cost of $220,381 and $33,363 as of September 30, 2020 and December 31, 2019), at fair value

225,150

33,704

Loans, net of fees and costs (includes $11,366 and $10,546 of loans at fair value, amortized cost of $10,849 and $10,186 as of September 30, 2020 and December 31, 2019)

1,306,846

964,710

Allowance for loan and lease losses

(16,573)

(9,513)

Loans, net of the allowance for loan and lease losses

1,290,273

955,197

Restricted investment in bank stock

7,650

8,072

Bank premises and equipment, net

8,065

8,636

Bank owned life insurance

12,069

11,859

Accrued interest receivable

4,666

3,148

Other real estate owned

120

Deferred income taxes

398

2,115

Goodwill

899

899

Intangible assets

3,668

3,874

Other assets

19,005

14,379

Total assets

$

1,758,648

1,150,019

Liabilities:

Deposits:

Noninterest bearing

$

193,851

139,450

Interest bearing

1,015,173

711,718

Total deposits

1,209,024

851,168

Short-term borrowings

104,239

123,676

Long-term debt

250,131

3,123

Subordinated debentures

40,814

40,962

Accrued interest payable

2,258

1,088

Other liabilities

20,350

9,307

Total liabilities

1,626,816

1,029,324

Stockholders’ equity:

Common stock, $1 par value. Authorized 10,000,000 shares; issued 6,450,353 and 6,407,685 as of September 30, 2020 and December 31, 2019

6,450

6,408

Surplus

80,981

80,255

Treasury stock - 320,000 and 3,375 shares at September 30, 2020 and December 31, 2019, respectively

(5,828)

(62)

Unearned common stock held by employee stock ownership plan

(2,000)

Retained earnings

50,775

34,097

Accumulated other comprehensive income (loss)

1,454

(3)

Total stockholders’ equity

131,832

120,695

Total liabilities and stockholders’ equity

$

1,758,648

1,150,019

See accompanying notes to the unaudited consolidated financial statements.

3

Table of Contents

MERIDIAN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three months ended

Nine months ended

September 30, 

September 30, 

(dollars in thousands, except per share data)

2020

    

2019

    

2020

    

2019

Interest income:

Loans, including fees

$

15,321

13,152

43,048

37,686

Securities:

Taxable

251

336

920

892

Tax-exempt

305

64

698

273

Cash and cash equivalents

3

38

63

136

Total interest income

15,880

13,590

44,729

38,987

Interest expense:

Deposits

2,235

3,633

8,064

10,584

Borrowings

930

683

2,687

1,731

Total interest expense

3,165

4,316

10,751

12,315

Net interest income

12,715

9,274

33,978

26,672

Provision for loan losses

3,956

705

7,139

938

Net interest income after provision for loan losses

8,759

8,569

26,839

25,734

Non-interest income:

Mortgage banking income

21,812

7,315

45,395

17,617

Wealth management income

951

922

2,825

2,698

SBA loan income

641

635

1,821

1,150

Earnings on investment in life insurance

70

74

210

218

Net change in the fair value of derivative instruments

3,028

6,346

(16)

Net change in the fair value of loans held-for-sale

2,932

54

4,424

(82)

Net change in the fair value of loans held-for-investment

93

(24)

174

390

Net loss on hedging activity

(2,637)

(300)

(7,363)

(792)

Net gain on sale of investment securities available-for-sale

1,290

74

1,345

212

Service charges

28

28

77

82

Other

852

431

1,718

1,179

Total non-interest income

29,060

9,209

56,972

22,656

Non-interest expenses:

Salaries and employee benefits

20,447

9,319

46,529

25,789

Occupancy and equipment

1,108

946

3,159

2,845

Loan expenses

492

192

1,100

472

Professional fees

681

820

2,118

2,000

Advertising and promotion

781

574

1,996

1,769

Data processing

460

343

1,260

990

Information technology

394

334

1,100

919

Pennsylvania bank shares tax

254

169

734

495

Other

1,217

850

3,156

3,701

Total non-interest expenses

25,834

13,547

61,152

38,980

Income before income taxes

11,985

4,231

22,659

9,410

Income tax expense

2,773

914

5,218

2,065

Net income

$

9,212

3,317

17,441

7,345

Basic earnings per common share

$

1.51

0.52

2.83

1.15

Diluted earnings per common share

$

1.51

0.52

2.82

1.14

See accompanying notes to the unaudited consolidated financial statements.

4

Table of Contents

MERIDIAN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

Three months ended

Nine months ended

September 30, 

September 30, 

(dollars in thousands)

    

2020

    

2019

2020

    

2019

Net income:

$

9,212

3,317

17,441

7,345

Other comprehensive income:

Net change in unrealized gains on investment securities available for sale:

Net unrealized gains arising during the period, net of tax expense of $144, $19, $761 and $220, respectively

304

64

2,489

767

Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of ($301), ($16), ($313), and ($46), respectively

(989)

(58)

(1,032)

(166)

Unrealized investment (losses) gains, net of tax (benefit) expense of $(157), $3, $448, and $174, respectively

(685)

6

1,457

601

Total other comprehensive (loss) income

(685)

6

1,457

601

Total comprehensive income

$

8,527

3,323

18,898

7,946

See accompanying notes to the unaudited consolidated financial statements.

5

Table of Contents

MERIDIAN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

Unearned

Accumulated

Common

Other

Common

Treasury

Stock -

Retained

Comprehensive

(dollars in thousands)

    

Stock

    

Surplus

    

Stock

ESOP

Earnings

    

Income (Loss)

    

Total

Balance, January 1, 2020

$

6,408

80,255

(62)

34,097

(3)

120,695

Comprehensive income:

Net income

2,516

2,516

Change in unrealized gains on securities available-for-sale, net of tax

429

429

Total comprehensive income

2,945

Common stock issued through share-based awards and exercises

6

26

32

Net purchase of treasury stock through publicly announced plans

63

(5,766)

(5,703)

Stock based compensation

64

64

Balance, March 31, 2020

$

6,414

80,408

(5,828)

36,613

426

118,033

Comprehensive income:

Net income

5,713

5,713

Change in unrealized gains on securities available-for-sale, net of tax

1,713

1,713

Total comprehensive income

7,426

Stock based compensation

59

59

Balance, June 30, 2020

$

6,414

80,467

(5,828)

42,326

2,139

125,518

Comprehensive income:

Net income

9,212

9,212

Change in unrealized gains on securities available-for-sale, net of tax

(685)

(685)

Total comprehensive income

8,527

Dividends paid or accrued, $0.125 per share

(763)

(763)

Shares purchased for ESOP plan (133,601)

(2,000)

(2,000)

Common stock issued through share-based awards and exercises

36

337

373

Stock based compensation

177

177

Balance, September 30, 2020

$

6,450

80,981

(5,828)

(2,000)

50,775

1,454

131,832

6

Table of Contents

Unearned

Accumulated

Common

Other

Common

Treasury

Stock -

Retained

Comprehensive

(dollars in thousands)

    

Stock

    

Surplus

    

Stock

    

ESOP

Earnings

    

Income (Loss)

    

Total

Balance, January 1, 2019

$

6,407

79,919

23,616

(390)

109,552

Comprehensive income:

Net income

2,006

2,006

Change in unrealized gains on securities available-for-sale, net of tax

373

373

Total comprehensive income

2,379

Stock based compensation

61

61

Balance, March 31, 2019

$

6,407

79,980

25,622

(17)

111,992

Comprehensive income:

Net income

2,022

2,022

Change in unrealized gains on securities available-for-sale, net of tax

222

222

Total comprehensive income

2,244

Stock based compensation

143

143

Balance, June 30, 2019

$

6,407

80,123

27,644

205

114,379

Comprehensive income:

Net income

3,317

3,317

Change in unrealized gains on securities available-for-sale, net of tax

6

6

Total comprehensive income

3,323

Common stock issued through share-based awards and exercises

1

7

8

Stock based compensation

62

62

Balance, September 30, 2019

$

6,408

80,192

30,961

211

117,772

See accompanying notes to the unaudited consolidated financial statements.

7

Table of Contents

MERIDIAN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine months ended

September 30, 

(dollars in thousands)

    

2020

    

2019

Net income

$

17,441

7,345

Adjustments to reconcile net income to net cash provided by operating activities:

Gain on sale of investment securities

(1,345)

(212)

Depreciation and amortization

(992)

1,581

Loss on disposal of premises and equipment

14

Net amortization of investment premiums and discounts

238

(22)

Provision for loan losses

7,139

938

Amortization of issuance costs on subordinated debt

83

Compensation expense for stock options

300

266

Net change in fair value of loans held for investment

(174)

(390)

Net change in fair value of loans held for sale

(4,424)

82

Net change in fair value of derivative instruments

(6,346)

16

Gain on sale of OREO

(6)

SBA loan income

(1,821)

(1,150)

Proceeds from sale of loans

1,356,637

432,831

Loans originated for sale

(1,498,264)

(421,092)

Mortgage banking income

(45,395)

(19,139)

Increase in accrued interest receivable

(1,518)

(266)

Increase in other assets