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New words:
consulting, enable, home, incremental, investor, nondeductible, paragraph, prospective, Scope, slightly, transparency, understandability
Removed:
accrual, acquired, add, addressed, adequately, adversely, aggregate, amended, assessed, assessing, cancellable, cautionary, ceased, classification, collectability, collected, collective, collectively, company, component, confirmed, consecutive, consideration, consisted, contractually, cover, created, creation, cumulative, cycle, defaulted, delinquency, demonstrated, depending, derived, design, designation, designed, direct, directional, disposition, earlier, eliminate, emergence, enhance, estimating, event, exceed, expanded, extension, forgiven, governance, history, identifying, ii, iii, imminent, indefinite, inflation, installment, lessor, LGD, longer, migration, modeling, movement, mutual, national, Nonaccruing, overcame, PD, periodically, possession, premium, presently, previously, problem, qualitative, receive, recognition, recognize, relating, remain, renewal, replaced, resulted, retrospective, reversed, reversion, reviewed, Rule, security, segmentation, segmented, subtract, supportable, suspended, troubled, ultimate, unable, unconditionally, United, updated, utilization, vintage
Financial report summary
?Risks
- Recent and future bank failures may adversely affect the national, regional, and local business environment, results of operation, and capital.
- Our business and operations may be materially adversely affected by national and local market economic conditions.
- The value of the financial instruments we own may decline in the future.
- Our small business customers may lack the resources to weather a downturn in the economy.
- We may be adversely affected by risks associated with completed and potential acquisitions.
- Liquidity risks could affect operations and jeopardize our business, financial condition and results of operations
- The Corporation’s liquidity is dependent on dividends from the Bank.
- Loss of deposits could increase our funding costs.
- We may need to raise additional capital in the future, and such capital may not be available when needed or at all.
- We may not be able to implement our growth strategy or manage costs effectively, resulting in lower earnings or profitability.
- The occurrence of fraudulent activity, breaches or failures of our information security controls or cybersecurity-related incidents could have a material adverse effect on our business, financial condition or results of operations.
- We depend on information technology and telecommunications systems of third parties, and any systems failures, interruptions or data breaches involving these systems could adversely affect our operations and financial condition.
- We continually encounter technological change.
- We may not be able to attract and retain key personnel and other skilled employees.
- New lines of business, products, product enhancements or services may subject us to additional risks.
- We operate in a highly competitive and changing industry and market area and compete with both banks and non-banks.
- Our ability to maintain, attract and retain customer relationships is highly dependent on our reputation.
- Accounting standards periodically change and the application of our accounting policies and methods may require management to make estimates about matters that are uncertain.
- The Corporation’s controls and procedures may fail or be circumvented.
- We must effectively manage interest rate risk.
- Changes in interest rates could also reduce the value of our residential mortgage-related securities and MSRs, which could negatively affect our earnings.
- We must effectively manage the credit risks of our loan portfolio.
- Our business, profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money, securities or other assets or whose securities or obligations we hold.
- Our mortgage lending business may not provide us with significant non-interest income.
- Our SBA lending program is dependent upon the federal government and we face specific risks associated with originating SBA loans.
- We may be required to repurchase mortgage loans or indemnify buyers against losses in some circumstances, which could harm liquidity, results of operations and financial condition.
- We are subject to environmental liability risk associated with our lending activities and with the properties we own.
- Our business is significantly dependent on the real estate markets in which we operate, as a significant percentage of our loan portfolio is secured by real estate or mortgage loans originated for sale.
- An economic slowdown could impact Meridian Wealth division revenues.
- Changes in laws and regulations and the cost of regulatory compliance with new laws and regulations may adversely affect our operations and/or increase our costs of operations.
- We cannot predict the effect of legislative and regulatory initiatives, which could increase our costs of doing business and adversely affect our results of operations and financial condition.
- We are subject to capital adequacy requirements and may be subject to more stringent capital requirements.
- Our stock price, like many of our peers, may be volatile, and you could lose part or all of your investment as a result.
- Certain banking laws and certain provisions of our articles of incorporation may have an anti-takeover effect.
Management Discussion
- For the three months ended March 31, 2024 as compared to the same period in 2023, tax-equivalent interest income increased $6.3 million as favorable rate and volume changes contributed $3.3 million, and $3.0 million, respectively, to interest income. The favorable change in rates led to increased yields on loans held for sale (up 95 basis points) and loans held for investment (up 60 basis points) that favorably impact interest income by $3.1 million, overall. The loans held for investment average balances increased $160.9 million, leading to a favorable volume impact on interest income of $2.8 million, while the increase in loans held for sale average balances of $4.1 million had an small but favorable impact to interest income of $64 thousand. Growth in the loans held for investment portfolio was led by average balance increases in commercial real estate ($179.0 million), residential real estate ($29.7 million), home equity loans ($15.3 million), commercial loans ($8.6 million), and SBA loans ($7.6 million).