Meridian Bank (MRBK) AI Stock Analysis

• Market Cap: $162.29M
• Dividend Yield: 3.48%
• Average Volume (3M): 68.13K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.13
• Revenue Growth: 12.20%
• EPS Growth: 71.87%
• Country: US
• Employees: 322
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.49
• Shares Outstanding: 11,301,228
• 10 Day Avg. Volume: 58,139
• 30 Day Avg. Volume: 68,131
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 12.60
• 1Y Price Target: $15.00
• Price Target Upside: 4.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: $15.00 ▲(4.46% Upside)

Meridian Bank's stock score is primarily driven by its solid financial performance and attractive valuation. The bank shows consistent revenue growth and effective cost management, although there is room for improvement in profitability margins. The stock's low P/E ratio and healthy dividend yield enhance its appeal. However, technical analysis indicates bearish momentum, which is a significant risk factor. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Meridian Bank Business Overview & Revenue Model

Company Description

Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, and shared national credits; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services. It operates through a network of 6 full-service branches, and 19 other offices. The company was founded in 2004 and is headquartered in Malvern, Pennsylvania.

How the Company Makes Money

Meridian Bank generates revenue through several key streams, primarily from interest income on loans and mortgages provided to customers. This interest income constitutes a significant portion of the bank's earnings. Additionally, the bank earns non-interest income from service fees associated with checking and savings accounts, as well as fees from investment services and other financial products. The bank may also engage in wealth management and advisory services that contribute to its revenue. Partnerships with other financial institutions and service providers can enhance its offerings and create additional revenue opportunities. The bank's overall financial performance is influenced by interest rate trends, economic conditions, and regulatory factors affecting the banking sector.

Meridian Bank Financial Statement Overview

Summary

Meridian Bank demonstrates solid financial health with consistent revenue growth and effective cost management. The balance sheet reflects a balanced leverage position, though high debt levels warrant careful monitoring. Cash flow generation is strong, but the conversion of income to cash could be enhanced.

Income Statement

Meridian Bank shows a consistent revenue growth trend with a TTM revenue growth rate of 2.46%. The gross profit margin remains strong at 52.26%, indicating efficient cost management. However, the net profit margin is relatively modest at 9.01%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The bank maintains a balanced debt-to-equity ratio of 1.06, indicating a moderate level of leverage. Return on equity is healthy at 10.63%, showcasing effective utilization of shareholder funds. The equity ratio is stable, reflecting a solid capital structure, although the high debt levels could pose potential risks if not managed carefully.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 21.60% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio is robust at 101.38%, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.45M	197.37M	168.55M	130.44M	159.51M	149.57M
Gross Profit	106.33M	100.94M	94.09M	109.36M	150.03M	127.61M
EBITDA	25.01M	24.09M	19.44M	29.00M	41.49M	32.46M
Net Income	18.34M	16.35M	13.24M	21.83M	35.59M	26.44M
Balance Sheet
Total Assets	2.51B	2.39B	2.25B	2.06B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	208.51M	105.67M	202.72M	173.74M	182.78M	157.75M
Total Debt	188.76M	174.21M	191.73M	162.43M	81.85M	256.67M
Total Liabilities	2.33B	2.21B	2.09B	1.91B	1.55B	1.58B
Stockholders Equity	178.02M	171.52M	158.02M	153.28M	165.36M	141.62M
Cash Flow
Free Cash Flow	37.09M	9.03M	17.03M	81.76M	159.75M	-159.21M
Operating Cash Flow	36.58M	9.60M	18.85M	84.67M	165.12M	-158.47M
Investing Cash Flow	-152.21M	-165.00M	-164.19M	-393.15M	-140.51M	-370.70M
Financing Cash Flow	141.74M	126.16M	163.64M	323.39M	-37.87M	526.54M

Meridian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRBK, the sentiment is Positive. The current price of 14.36 is below the 20-day moving average (MA) of 15.05, below the 50-day MA of 15.31, and above the 200-day MA of 14.34, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRBK.

Meridian Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBK	75 Outperform	$164.27M	9.13	12.69%	3.16%	6.08%	4.61%
ATLO	71 Outperform	$180.47M	10.92	8.35%	3.94%	5.89%	82.56%
UBFO	69 Neutral	$157.29M	13.72	8.41%	5.33%	-2.00%	-35.93%
OVBC	68 Neutral	$171.20M	12.22	9.04%	2.48%	14.16%	24.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBFV	64 Neutral	$159.24M	14.87	7.97%	3.13%	20.82%	-48.08%
MRBK	63 Neutral	$162.29M	8.73	10.77%	3.48%	12.20%	71.87%

Meridian Bank Corporate Events

Meridian Bank Reports Strong Q2 2025 Earnings Growth

On July 28, 2025, Meridian Corporation released its earnings for the second quarter of 2025, showing significant growth in net income and earnings per share compared to the same period in 2024. The bank reported a net income of $5.592 million, up from $3.326 million, and a diluted earnings per share of $0.49, an increase from $0.30. The financial results indicate a strong performance in net interest income and non-interest income, with notable contributions from mortgage banking and SBA income. Additionally, the bank’s strategic focus on deposit repricing has improved its net interest margin, reflecting its ability to adapt to changing market conditions.

Meridian Bank Announces Quarterly Cash Dividend

On July 24, 2025, Meridian Corporation announced a quarterly cash dividend of $0.125 per common share, payable on August 18, 2025. The company reported a significant increase in net income for the second quarter of 2025, reaching $5.6 million, a 133% rise from the previous quarter. This growth was attributed to improved margins, SBA loan sales, and seasonal mortgage activity. Despite challenges in the mortgage sector due to limited housing inventory, Meridian’s overall performance was strong, with a focus on reducing nonperforming loans and expanding market penetration.