Meridian

MRBK

Market cap $159M

Meridian's balance sheet and earnings have shown strong growth, with deposits and loan books expanding and net income rising significantly year-over-year. Asset quality has improved to a satisfactory level, though some non-performing loan metrics remain elevated and warrant ongoing attention for risk. The stock remains attractively valued, trading at a low P/E multiple compared to peers, and has outperformed the S&P 500 since my last review.

MALVERN, Pa., July 24, 2025 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:   Three Months Ended (Dollars in thousands, except per share data) (Unaudited) June 30,  2025   March 31,  2025   June 30,  2024 Income:           Net income $ 5,592   $ 2,399   $ 3,326 Diluted earnings per common share   0.49     0.21     0.30 Pre-provision net revenue (PPNR) (1)   11,090     8,357     7,072 (1) See Non-GAAP reconciliation in the Appendix                       Net income for the quarter ended June 30, 2025 was $5.6 million, or $0.49 per diluted share, up $3.2 million, or 133%, from prior quarter.

Meridian Corporation remains cheap on valuation and continues to grow its balance sheet, but asset quality concerns persist, justifying my 'hold' rating. Deposit growth is solid, and uninsured deposit exposure is below my risk threshold, but high-brokered deposit levels warrant caution. Loan growth is healthy with minimal office exposure, but profitability metrics like return on assets and equity fall short of my standards.

The apparent weakness in the housing market will keep mortgage banking income low. I've reduced my EPS estimate because I've slashed my mortgage banking income estimate. The net interest margin will likely continue to expand, as asset yields will likely be stickier than funding costs. Further, a sizable balance of CDs will roll over soon.

WILMINGTON, DELAWARE / ACCESS Newswire / June 9, 2025 / Meridian Bank announced it will be the exclusive Platinum Sponsor of the Delaware State Housing Authority (DSHA) Homebuyers Fair "Destination Homeownership," to be held at the University of Delaware's Clayton Hall Conference Center, 100 Hollowell Dr., Newark, DE, on June 21, 2025, from 9:00am-3:00pm. "Destination Homeownership" is designed as a resource for Delawareans looking to buy their first home, their next home, and for others who are considering a move to the First State.

Meridian Bank (MRBK) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.24 per share a year ago.

MALVERN, Pa., April 25, 2025 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:   Three Months Ended (Dollars in thousands, except per share data)((Unaudited) March 31, 2025   December 31, 2024   March 31, 2024 Income:           Net income $ 2,399   $ 5,600   $ 2,676 Diluted earnings per common share $ 0.21   $ 0.49   $ 0.24 Pre-provision net revenue (PPNR) (1) $ 8,357   $ 11,167   $ 6,419 (1) See Non-GAAP reconciliation in the Appendix                       Net income for the quarter ended March 31, 2025 was $2.4 million, or $0.21 per diluted share.

Meridian Bank, founded in 2004, has grown significantly within the Delaware Valley, focusing on business, industrial, retail, and commercial lending. Headquartered in Malvern, PA, the bank employs a lean growth model, strategically placing branches to minimize overhead costs. Meridian emphasizes customer satisfaction and client relationships, driving growth through referrals and maintaining a consumer-friendly outlook.

Due to changes in my interest rate outlook, I have reduced my mortgage banking income estimate but raised my net interest margin estimate. I'm now expecting an EPS of $1.67, down from my previous estimate of $1.69. I'm expecting earnings to grow by 15% this year, thanks to expected net interest margin expansion and loan growth.

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