Meridian Bank (MRBK) AI Stock Analysis

• Market Cap: $153.93M
• Dividend Yield: 3.67%
• Average Volume (3M): 78.77K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.08
• Revenue Growth: 12.41%
• EPS Growth: 34.20%
• Country: US
• Employees: 322
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.21
• Shares Outstanding: 11,285,278
• 10 Day Avg. Volume: 177,978
• 30 Day Avg. Volume: 78,773
• PEG Ratio: -4.61
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.20
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 7.44
• 1Y Price Target: $16.00
• Price Target Upside: 16.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: $15.00 ▲(9.09%Upside)

Meridian Bank's overall stock score reflects a solid financial foundation and attractive valuation metrics, partly offset by technical challenges and recent earnings decline. The bank's stable financial performance and undervaluation make it appealing, but it faces short-term operational and market sentiment challenges.

Meridian Bank Business Overview & Revenue Model

Company Description

Meridian 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 Money

Meridian 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 revenue growth and a robust balance sheet with zero debt, indicating a stable financial position. However, efficiency in converting revenue into profit and cash flow has room for improvement, posing potential risks to sustaining current growth levels.

Income Statement

Meridian Bank demonstrated a strong revenue growth from $94 million in 2023 to $156 million in 2024, a 65.8% increase, reflecting robust business expansion. The gross profit margin remained high at 100% due to the banking industry's nature. However, the net profit margin was modest at 10.5%, and there was a decline from previous years, indicating increased expenses or lower efficiencies.

Balance Sheet

The company has a strong equity position with a zero-debt level in 2024, reflecting financial stability and low leverage risk. The equity ratio is 7.2%, indicating a balanced approach to financing. However, the return on equity declined to 9.5%, suggesting less efficient use of equity compared to prior periods.

Cash Flow

Free cash flow increased slightly to $532,000 in 2024, but the growth rate was minimal compared to previous substantial cash flow figures, indicating potential challenges in cash generation. The operating cash flow to net income ratio was low at 0.03, suggesting potential issues in converting income into cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.34M	94.09M	111.85M	151.10M	134.09M
Gross Profit	156.03M	94.09M	111.85M	151.10M	134.09M
EBITDA	0.00	0.00	0.00	0.00	0.00
Net Income	16.35M	13.24M	21.83M	35.59M	26.44M
Balance Sheet
Total Assets	2.39B	2.25B	2.06B	1.71B	1.72B
Cash, Cash Equivalents and Short-Term Investments	179.90M	56.70M	173.74M	182.78M	160.31M
Total Debt	54.74M	49.84M	162.43M	81.85M	313.08M
Total Liabilities	2.21B	2.09B	1.91B	541.56M	1.58B
Stockholders Equity	171.52M	158.02M	153.28M	1.17B	141.62M
Cash Flow
Free Cash Flow	9.03M	17.03M	81.76M	159.75M	-158.89M
Operating Cash Flow	9.60M	18.85M	84.67M	165.12M	-158.14M
Investing Cash Flow	-165.00M	-164.19M	-393.15M	-140.51M	-371.02M
Financing Cash Flow	126.16M	163.64M	323.39M	-37.87M	526.54M

Meridian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 13.75 is above the 20-day moving average (MA) of 12.52, above the 50-day MA of 13.18, and below the 200-day MA of 13.92, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 62.72 is Neutral, neither overbought nor oversold. The STOCH value of 83.00 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
LARK	77 Outperform	$155.44M	10.42	11.08%	3.12%	15.79%	27.67%
PEBK	75 Outperform	$158.71M	9.50	11.21%	2.75%	9.07%	4.44%
BVFL	73 Outperform	$164.88M	14.81	5.63%	―	4.10%	-23.42%
FRAF	71 Outperform	$163.31M	14.04	8.16%	3.60%	18.74%	-16.38%
MRBK	70 Outperform	$153.93M	9.59	9.64%	3.67%	12.41%	34.20%
ATLO	68 Neutral	$161.91M	14.32	6.52%	4.41%	8.65%	14.91%
Sector *	67 Neutral	¥713.20B	10.86	7.42%	3.37%	7.74%	16.12%

Meridian Bank Corporate Events

Meridian Bank Shareholders Elect Directors and Approve Proposals

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.

Meridian Bank Reports Q1 2025 Earnings Decline

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.