Meridian Q1 profit falls 16% as $3.9M commercial mortgage charge-off drives credit losses

Filed May 11, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 9, 2025 · ~1 min read

Key Changes

• high

  Net income declined 16% YoY to $2.0M ($0.17/share) as net charge-offs tripled to $7.8M (0.35% of loans), driven by a $3.9M loss on a purchased commercial mortgage participation secured by Class A office property and $2.5M in SBA charge-offs.

  MD&A: Net Income & Credit Losses verify on EDGAR →
• high

  Return on equity fell to 4.02% from 5.57% YoY, marking the second consecutive year of profitability decline as credit costs and operating expenses outpace revenue growth.

  MD&A: Profitability Metrics verify on EDGAR →
• high

  Non-performing assets rose to 2.51% of total assets from 2.07% a year earlier, while allowance coverage slipped to 0.98% from 1.01%, suggesting reserves are not keeping pace with deteriorating credit quality.

  MD&A: Asset Quality verify on EDGAR →