Meridian Bank (MRBK) AI Stock Analysis

• Market Cap: $198.45M
• Dividend Yield: 2.9%
• Average Volume (3M): 51.23K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.96
• Revenue Growth: 9.77%
• EPS Growth: 76.75%
• Country: US
• Employees: 322
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.58
• Shares Outstanding: 11,517,456
• 10 Day Avg. Volume: 46,276
• 30 Day Avg. Volume: 51,225
• PEG Ratio: 0.40
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 16.87
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 12.70
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $18.50 ▲(15.55% Upside)

Meridian Bank's strong financial performance and technical indicators suggest a positive outlook. The stock is undervalued with a low P/E ratio and offers an attractive dividend yield. The technical analysis indicates strong upward momentum, though caution is advised due to potential overbought conditions. The recent corporate event highlights robust earnings growth, further supporting the stock's positive trajectory.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the bank's ability to expand its market presence and enhance its financial stability over time.

Loan Growth

Robust loan growth in key segments enhances revenue potential and strengthens the bank's competitive position in the market.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and the ability to invest in growth opportunities, ensuring long-term sustainability.

Negative Factors

High Debt Levels

High debt levels require careful management to avoid financial strain, impacting the bank's ability to navigate economic downturns.

Nonperforming Loans

Nonperforming loans pose a risk to financial health, potentially affecting profitability and requiring strategic management to mitigate impacts.

Net Profit Margin

A modest net profit margin indicates potential inefficiencies, which could limit the bank's ability to maximize shareholder value over the long term.

Meridian Bank Business Overview & Revenue Model

Company Description

Meridian Bank (MRBK) is a banking institution that provides a variety of financial services primarily targeting individuals and small to medium-sized businesses. The bank operates in sectors such as commercial banking, consumer banking, and real estate finance. Its core products include personal and business loans, checking and savings accounts, mortgage services, and investment products, all aimed at fostering financial growth and stability for its clients.

How the Company Makes Money

Meridian Bank generates revenue primarily through interest income from loans and mortgages issued to customers. The bank charges interest on various financial products, including personal loans, business loans, and mortgages, which constitutes a significant portion of its earnings. Additionally, the bank earns fee income from account services, transaction fees, and investment products. Key partnerships with local businesses and real estate agencies enhance its loan origination capabilities and broaden its customer base. Moreover, the bank may also benefit from income generated through wealth management services and investment advisory, contributing to its overall financial performance.

Meridian Bank Financial Statement Overview

Summary

Meridian Bank demonstrates solid financial health with consistent revenue growth and effective cost management. While profitability margins are stable, there is room for improvement in net profit margins. 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	205.36M	197.37M	168.55M	130.44M	159.51M	149.57M
Gross Profit	109.76M	100.94M	94.09M	109.36M	150.03M	127.61M
EBITDA	28.09M	24.09M	19.44M	29.00M	41.49M	32.46M
Net Income	20.25M	16.35M	13.24M	21.83M	35.59M	26.44M
Balance Sheet
Total Assets	2.54B	2.39B	2.25B	2.06B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	206.87M	105.67M	202.72M	173.74M	182.78M	157.75M
Total Debt	0.00	174.21M	191.73M	162.43M	81.85M	256.67M
Total Liabilities	2.35B	2.21B	2.09B	1.91B	1.55B	1.58B
Stockholders Equity	188.03M	171.52M	158.02M	153.28M	165.36M	141.62M
Cash Flow
Free Cash Flow	28.09M	9.03M	17.03M	81.76M	159.75M	-159.21M
Operating Cash Flow	29.77M	9.60M	18.85M	84.67M	165.12M	-158.47M
Investing Cash Flow	-164.51M	-165.00M	-164.19M	-393.15M	-140.51M	-370.70M
Financing Cash Flow	142.38M	126.16M	163.64M	323.39M	-37.87M	526.54M

Meridian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.01 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 15.08, and above the 200-day MA of 14.21, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 77.00 is Negative, neither overbought nor oversold. The STOCH value of 92.73 is Negative, 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
UBFO	78 Outperform	$181.38M	15.74	8.41%	4.65%	-2.00%	-36.25%
PEBK	76 Outperform	$200.63M	11.99	11.73%	2.61%	4.52%	3.47%
MRBK	75 Outperform	$198.45M	9.74	11.39%	2.90%	9.77%	76.75%
ATLO	70 Outperform	$212.34M	13.28	8.35%	3.35%	5.89%	82.82%
OVBC	68 Neutral	$195.13M	13.78	8.95%	2.20%	10.35%	22.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CBFV	67 Neutral	$179.44M	88.84	1.78%	2.85%	-1.39%	-88.66%

Meridian Bank Corporate Events

Meridian Bank Reports Strong Q3 2025 Earnings Growth

Meridian Corporation, a financial services company, reported a significant increase in its third-quarter 2025 earnings, with net income rising by 19% to $6.7 million compared to the previous quarter. The company also declared a quarterly cash dividend of $0.125 per common share, payable on November 17, 2025. The improved financial performance was driven by a rise in net interest margin to 3.77% and strong loan growth in its commercial and real estate segments. Despite challenges with nonperforming loans, Meridian’s wealth and mortgage units remained profitable, and the company aims to capitalize on market acquisitions and reduced competition.