Meridian Bank (MRBK) AI Stock Analysis

• Market Cap: $165.56M
• Dividend Yield: 3.41%
• Average Volume (3M): 104.84K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.12
• Revenue Growth: 12.41%
• EPS Growth: 34.20%
• Country: US
• Employees: 322
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.49
• Shares Outstanding: 11,285,278
• 10 Day Avg. Volume: 87,608
• 30 Day Avg. Volume: 104,840
• PEG Ratio: 0.65
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.49
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 9.17
• Enterprise Value/Ebitda: 10.66
• 1Y Price Target: $16.00
• Price Target Upside: 7.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• 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 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	197.37M	168.55M	130.44M	159.51M	149.57M
Gross Profit	100.94M	94.09M	109.36M	150.03M	127.61M
EBITDA	24.09M	19.44M	29.00M	41.49M	32.46M
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	105.67M	202.72M	173.74M	182.78M	157.75M
Total Debt	174.21M	191.73M	162.43M	81.85M	256.67M
Total Liabilities	2.21B	2.09B	1.91B	1.55B	1.58B
Stockholders Equity	171.52M	158.02M	153.28M	165.36M	141.62M
Cash Flow
Free Cash Flow	9.03M	17.03M	81.76M	159.75M	-159.21M
Operating Cash Flow	9.60M	18.85M	84.67M	165.12M	-158.47M
Investing Cash Flow	-165.00M	-164.19M	-393.15M	-140.51M	-370.70M
Financing Cash Flow	126.16M	163.64M	323.39M	-37.87M	526.54M

Meridian Bank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.87 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LARK	78 Outperform	$150.88M	10.52	11.80%	3.22%	15.79%	27.67%
BVFL	77 Outperform	$170.36M	15.63	5.31%	―	5.08%	-12.65%
MRBK	76 Outperform	$165.56M	10.44	9.64%	3.41%	12.41%	34.20%
PEBK	74 Outperform	$160.40M	9.42	12.69%	3.21%	6.08%	4.51%
FRAF	72 Outperform	$190.95M	13.15	9.88%	3.01%	15.18%	―
ATLO	68 Neutral	$162.08M	12.15	7.60%	4.79%	6.86%	44.54%
Sector *	58 Neutral	HK$92.47B	5.69	-3.20%	4.65%	5.50%	-56.25%

Meridian Bank Corporate Events

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.

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 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.