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Meridian Bank (MRBK)
:MRBK
US Market
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Meridian Bank (MRBK) AI Stock Analysis

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MRBK

Meridian Bank

(NASDAQ:MRBK)

Rating:75Outperform
Price Target:
$16.50
▲(5.30% Upside)
Meridian Bank's strong financial performance and attractive valuation are the most significant factors driving its score. The positive technical indicators further support a stable outlook. The absence of earnings call data limits additional insights, but recent corporate events highlight strong earnings growth and strategic adaptability.

Meridian Bank (MRBK) vs. SPDR S&P 500 ETF (SPY)

Meridian Bank Business Overview & Revenue Model

Company DescriptionMeridian Bank (MRBK) is a financial institution based in the United States, primarily engaged in providing a wide range of banking services to both individual and commercial clients. The bank operates in sectors such as retail banking, commercial banking, and investment services. Core products include checking and savings accounts, loans, mortgages, and various investment products, catering to the diverse financial needs of its customers.
How the Company Makes MoneyMeridian 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue203.45M197.37M168.55M130.44M159.51M149.57M
Gross Profit106.33M100.94M94.09M109.36M150.03M127.61M
EBITDA25.01M24.09M19.44M29.00M41.49M32.46M
Net Income18.34M16.35M13.24M21.83M35.59M26.44M
Balance Sheet
Total Assets2.51B2.39B2.25B2.06B1.71B1.72B
Cash, Cash Equivalents and Short-Term Investments208.51M105.67M202.72M173.74M182.78M157.75M
Total Debt188.76M174.21M191.73M162.43M81.85M256.67M
Total Liabilities2.33B2.21B2.09B1.91B1.55B1.58B
Stockholders Equity178.02M171.52M158.02M153.28M165.36M141.62M
Cash Flow
Free Cash Flow37.09M9.03M17.03M81.76M159.75M-159.21M
Operating Cash Flow36.58M9.60M18.85M84.67M165.12M-158.47M
Investing Cash Flow-152.21M-165.00M-164.19M-393.15M-140.51M-370.70M
Financing Cash Flow141.74M126.16M163.64M323.39M-37.87M526.54M

Meridian Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.67
Price Trends
50DMA
14.36
Positive
100DMA
13.75
Positive
200DMA
14.26
Positive
Market Momentum
MACD
0.40
Negative
RSI
66.71
Neutral
STOCH
91.47
Negative
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 15.67 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 14.36, and above the 200-day MA of 14.26, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 66.71 is Neutral, neither overbought nor oversold. The STOCH value of 91.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MRBK.

Meridian Bank Risk Analysis

Meridian Bank disclosed 40 risk factors in its most recent earnings report. Meridian Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Meridian Bank Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$176.02M12.917.60%4.08%6.86%44.24%
79
Outperform
$171.48M10.0912.69%3.03%6.08%4.61%
78
Outperform
$166.39M16.195.31%5.08%-12.60%
77
Outperform
$154.18M9.4911.80%3.10%14.58%43.66%
75
Outperform
$177.54M11.049.64%3.18%12.41%34.20%
72
Outperform
$208.43M14.269.88%2.80%15.18%5.13%
68
Neutral
$17.88B11.6610.24%3.76%9.66%1.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MRBK
Meridian Bank
15.74
4.58
41.04%
ATLO
Ames National
19.61
2.24
12.90%
LARK
Landmark Bancorp
26.85
7.52
38.90%
PEBK
Peoples Bancorp Of North Carolina
31.36
4.36
16.15%
FRAF
Franklin Financial Services
46.45
15.25
48.88%
BVFL
BV Financial, Inc.
16.75
2.58
18.21%

Meridian Bank Corporate Events

Business Operations and StrategyFinancial Disclosures
Meridian Bank Reports Strong Q2 2025 Earnings Growth
Positive
Jul 28, 2025

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.

DividendsFinancial Disclosures
Meridian Bank Announces Quarterly Cash Dividend
Positive
Jul 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025