Meridian Corporation reported significant financial developments in its quarterly filing for the period ending September 30, 2024. Total assets increased by $141.5 million, or 6.3%, reaching $2.4 billion compared to $2.2 billion at the end of 2023. Total deposits also rose by $155.5 million, or 8.5%, totaling $1.98 billion, driven by a notable increase in interest-bearing deposits.

The company’s net income for the third quarter of 2024 was $4.7 million, or $0.42 per diluted share, reflecting an 18.4% increase from $4.0 million in the same quarter of 2023. However, net income for the nine months ended September 30, 2024, decreased to $10.7 million from $12.7 million in the prior year. The return on average assets improved to 0.80% from 0.73%, while the return on average equity rose to 11.41% from 10.17%.

Interest income for the third quarter increased to $40.3 million, up from $35.5 million in the same period last year, attributed to favorable rate impacts and increased loan volumes. Conversely, total interest expense rose to $22.1 million from $18.2 million, primarily due to higher costs associated with deposits and borrowings. The net interest margin decreased slightly to 3.20% from 3.29% year-over-year.

The provision for credit losses saw a significant increase, rising by $2.2 million in the third quarter compared to the same period in 2023, attributed to charge-offs and an uptick in non-performing loans. Total non-performing loans increased to $45.1 million, up from $33.8 million at the end of 2023, leading to a non-performing assets ratio of 1.97%.

Non-interest income for the third quarter increased by 33.9% to $10.8 million, driven by a $1.7 million rise in mortgage banking income. However, non-interest expenses also rose by 2.6% to $20.5 million, primarily due to increased salaries and employee benefits.

Meridian's total stockholders' equity increased to $167.5 million as of September 30, 2024, compared to $158.0 million at the end of 2023. The company declared a quarterly cash dividend of $0.125 per share, consistent with the previous year.

Overall, Meridian Corporation's financial performance reflects a mix of growth in assets and deposits, increased income, and rising provisions for credit losses, indicating a cautious approach to managing credit risk amid changing market conditions.