Meridian Reports 72% Q1 Net Income Drop to $2M, PPNR Up 21%
Meridian Corporation revised its Q1 2026 results after a loan status change lowered net income by 72% to $2.0 million ($0.17 per share) from $7.2 million in the prior quarter. Pre-provision net revenue improved 21% to $10.1 million year-over-year, net interest margin rose to 3.82%, and the board declared a $0.14 dividend.
1. Revised First Quarter 2026 Results
Meridian revised its Q1 2026 results after recognizing a loan status change from its lead participant bank, ensuring consistency with its forthcoming Form 10-Q. Net income fell 72% quarter-over-quarter to $2.0 million, or $0.17 per diluted share, down from $7.2 million in Q4 2025.
2. Revenue and Margin Trends
Pre-provision net revenue reached $10.1 million, a 21% increase from Q1 2025, driven by disciplined lending and cost controls. Net interest margin improved to 3.82% as loan yield moderated to 7.03% and cost of funds declined to 3.04%, reflecting favorable funding dynamics.
3. Balance Sheet and Dividend
Total assets held steady at $2.58 billion, while commercial loans excluding leases grew by $14.1 million, or 1%, sequentially. The board declared a quarterly cash dividend of $0.14 per share, payable May 11, 2026 to shareholders of record as of May 4, 2026.