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

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MRBK

Meridian Bank

(NASDAQ:MRBK)

Rating:76Outperform
Price Target:
$16.50
▲(10.96%Upside)
MRBK shows strong financial health and positive technical indicators, contributing to a solid stock score. While the valuation is fair, recent corporate events indicate a need for cautious optimism, particularly in the mortgage sector. The declining EBIT margin and relatively high debt-to-equity ratio are areas for improvement.

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

Meridian Bank Business Overview & Revenue Model

Company DescriptionMeridian Bank (MRBK) is a community bank that provides a comprehensive range of financial services primarily to small and medium-sized businesses, professionals, and retail customers. Headquartered in Malvern, Pennsylvania, the bank operates in sectors such as commercial banking, retail banking, and mortgage banking. Meridian Bank offers products and services including commercial loans, residential mortgage loans, deposit accounts, cash management services, and wealth management solutions.
How the Company Makes MoneyMeridian Bank generates revenue through various streams, with interest income from loans and deposits being the primary source. The bank earns interest by lending money to customers in the form of commercial and residential loans and charging interest on these loans. Additionally, Meridian Bank collects fees from services such as wealth management, cash management, and transaction processing. Mortgage banking operations also contribute to the bank's revenue, with the bank earning origination and servicing fees. The bank's strategic partnerships with financial technology firms enhance its service offerings and customer reach, further supporting its revenue generation.

Meridian Bank Financial Statement Overview

Summary
Meridian Bank exhibits strong financial health with consistent revenue growth and solid cash flow performance. However, declining EBIT margins and a relatively high debt-to-equity ratio warrant attention. The bank is primarily stable but should monitor operational efficiency and leverage.
Income Statement
75
Positive
Meridian Bank shows a consistent revenue growth trend, with a notable increase in total revenue from $130.45 million in 2022 to $198.13 million in TTM 2025. Gross profit margin remains strong, reflecting effective cost management. However, a declining EBIT margin from 27.2% in 2022 to 10.8% in TTM 2025 indicates increased operational expenses or reduced operational efficiency. Still, the bank maintains a healthy net profit margin, which supports its profitability stance.
Balance Sheet
68
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of approximately 1.09 in TTM 2025. The equity ratio of 6.85% indicates a relatively low reliance on equity financing, which could be risky in the long run. Positive return on equity of around 9.27% in TTM 2025 suggests effective use of equity to generate profits, but the bank should be cautious about increasing leverage.
Cash Flow
82
Very Positive
Meridian Bank demonstrates strong cash flow management. Operating cash flow to net income ratio remains healthy, indicating efficient cash generation relative to net income. Free cash flow has grown significantly by over 238.0% from 2024 to TTM 2025, enhancing liquidity and providing greater financial flexibility for future investments or debt reduction.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue197.37M168.55M130.44M159.51M149.57M
Gross Profit100.94M94.09M109.36M150.03M127.61M
EBITDA24.09M19.44M29.00M41.49M32.46M
Net Income16.35M13.24M21.83M35.59M26.44M
Balance Sheet
Total Assets2.39B2.25B2.06B1.71B1.72B
Cash, Cash Equivalents and Short-Term Investments105.67M202.72M173.74M182.78M157.75M
Total Debt174.21M191.73M162.43M81.85M256.67M
Total Liabilities2.21B2.09B1.91B1.55B1.58B
Stockholders Equity171.52M158.02M153.28M165.36M141.62M
Cash Flow
Free Cash Flow9.03M17.03M81.76M159.75M-159.21M
Operating Cash Flow9.60M18.85M84.67M165.12M-158.47M
Investing Cash Flow-165.00M-164.19M-393.15M-140.51M-370.70M
Financing Cash Flow126.16M163.64M323.39M-37.87M526.54M

Meridian Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.87
Price Trends
50DMA
13.43
Positive
100DMA
13.55
Positive
200DMA
14.11
Positive
Market Momentum
MACD
0.47
Negative
RSI
66.67
Neutral
STOCH
75.25
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 14.87 is above the 20-day moving average (MA) of 14.07, above the 50-day MA of 13.43, and above the 200-day MA of 14.11, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 is Neutral, 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$150.88M10.5211.80%3.22%15.79%27.67%
77
Outperform
$170.36M15.635.31%5.08%-12.65%
76
Outperform
$165.56M10.449.64%3.41%12.41%34.20%
74
Outperform
$160.40M9.4212.69%3.21%6.08%4.51%
72
Outperform
$190.95M13.159.88%3.01%15.18%
68
Neutral
$162.08M12.157.60%4.79%6.86%44.54%
58
Neutral
HK$92.47B5.69-3.20%4.65%5.50%-56.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MRBK
Meridian Bank
14.87
3.71
33.24%
ATLO
Ames National
18.18
-2.46
-11.92%
LARK
Landmark Bancorp
26.19
7.22
38.06%
PEBK
Peoples Bancorp Of North Carolina
29.27
-1.64
-5.31%
FRAF
Franklin Financial Services
42.58
12.49
41.51%
BVFL
BV Financial, Inc.
16.17
2.13
15.17%

Meridian Bank Corporate Events

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.

The most recent analyst rating on (MRBK) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Meridian Bank stock, see the MRBK Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Meridian Bank Shareholders Elect Directors and Approve Proposals
Neutral
May 22, 2025

Meridian Bank held its Annual Meeting of Shareholders on May 22, 2025, during which shareholders elected three directors to the Board for a three-year term and approved a non-binding proposal on executive compensation. Additionally, the shareholders ratified the appointment of Crowe LLP as the independent registered public accounting firm for the year ending December 31, 2025.

The most recent analyst rating on (MRBK) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Meridian Bank stock, see the MRBK Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Meridian Bank Reports Q1 2025 Earnings Decline
Negative
Apr 30, 2025

On April 30, 2025, Meridian Corporation released its earnings for the first quarter of 2025, highlighting a net income of $2.4 million, down from $2.7 million in the same period of 2024. The bank reported a net interest income increase to $19.8 million from $16.6 million, while non-interest income decreased due to lower mortgage banking income and SBA income. The announcement reflects Meridian’s strategic focus on managing deposit costs and enhancing net interest margins, with implications for its financial performance and market positioning.

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: Jul 25, 2025