Meridian's Q3 net income falls due to drop in non-interest income
MRBK•Meridian's net income fell 10.3%, while non-interest income declined 32% on lower mortgage and SBA loan income. Earnings per share were $0.43, net interest income was $23.44 million, and net interest margin improved to 3.77%.
1. Q3 results
Meridian's net income decreased 10.3%, driven largely by lower non-interest income and higher non-interest expense. Non-interest income fell 32% as mortgage banking income declined, fair value changes in loans were unfavorable, and SBA loan sales were reduced.
2. Interest income and outlook
Net interest income rose, and net interest margin improved to 3.77% from the prior quarter. The company expects improvements in its deposit franchise from treasury and payments team changes in 2027, and anticipates improvement in return on assets and return on equity in the coming year.
