Meridian

MRBK

Market cap $209M

Meridian Bank (MRBK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Meridian Corporation remains a 'buy' as deposit growth, strong asset quality, and attractive valuation persist. MRBK's net interest income and net profits have shown robust growth, supported by rising deposits and loans. Valuation is compelling, with an 8.1x P/E and metrics favorably comparing to peers on book value and returns.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

MALVERN, Pa., Oct. 23, 2025 (GLOBE NEWSWIRE) -- Meridian Corporation (Nasdaq: MRBK) today reported:   Three Months Ended (Dollars in thousands, except per share data)(Unaudited) September 30, 2025   June 30, 2025   September 30, 2024 Income:           Net income $ 6,659   $ 5,592   $ 4,743 Diluted earnings per common share   0.58     0.49     0.42 Pre-provision net revenue (PPNR)(1)   11,523     11,090     8,527 (1) See Non-GAAP reconciliation in the Appendix   Net income for the quarter ended September 30, 2025 was $6.7 million, or $0.58 per diluted share, up $1.1 million, or 19%, from prior quarter.

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.