Meridian Bank (MRBK) AI Stock Analysis

• Market Cap: $153.82M
• Dividend Yield: 3.77%
• Average Volume (3M): 59.80K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.07
• Revenue Growth: 12.41%
• EPS Growth: 34.20%
• Country: US
• Employees: 322
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 11,285,278
• 10 Day Avg. Volume: 66,151
• 30 Day Avg. Volume: 59,797
• PEG Ratio: 0.28
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.00
• Price Target Upside: 20.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Meridian Bank shows strong financial stability with significant revenue growth and no debt, which supports its financial performance score. However, technical indicators suggest short-term weakness, and recent earnings reveal a decline in net income, posing challenges. The stock's low valuation and attractive dividend yield partially offset these concerns, making it a potentially appealing option for value investors despite current operational headwinds.

Meridian Bank Business Overview & Revenue Model

Company Description

Meridian Bank (MRBK) is a regional bank based in the United States, primarily serving the financial needs of individuals and businesses. The bank offers a comprehensive suite of services, including personal and commercial banking, mortgage lending, real estate financing, and wealth management solutions. Meridian Bank operates through a network of branches and online platforms, focusing on delivering personalized financial services to its clients.

How the Company Makes Money

Meridian Bank generates revenue through a variety of financial services and products. The primary revenue streams include interest income from loans and mortgages, fees from banking services, and income from wealth management and advisory services. The bank earns interest by lending out customer deposits at a higher interest rate than it pays on those deposits. Additionally, it collects fees for account maintenance, transaction services, and financial advisory. Strategic partnerships with financial technology firms and participation in regional economic activities also contribute to its earnings by enhancing customer engagement and expanding service offerings.

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, the efficiency of 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
156.03M	94.09M	111.85M	151.10M	134.09M
	Gross Profit
156.03M	94.09M	111.85M	151.10M	134.09M
	EBIT
147.97M	27.42M	45.44M	46.30M	34.54M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
16.35M	13.24M	21.83M	35.59M	26.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
179.90M	56.70M	173.74M	182.78M	160.31M
	Total Assets
2.39B	2.25B	2.06B	1.71B	1.72B
	Total Debt
54.74M	49.84M	162.43M	81.85M	313.08M
	Net Debt
-5.60M	-6.86M	124.04M	58.37M	276.33M
	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: Negative
• Last Price: 13.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 13.28 is below the 20-day moving average (MA) of 13.35, below the 50-day MA of 14.10, and below the 200-day MA of 13.60, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$176.48M	13.54	11.08%	2.72%	15.90%	27.67%
PEBK	74 Outperform	$157.45M	9.43	10.07%	2.82%	9.07%	4.44%
MRBK	68 Neutral	$153.82M	9.58	9.65%	3.77%	12.41%	34.20%
ATLO	67 Neutral	$157.27M	13.87	6.52%	5.33%	8.65%	15.26%
FRAF	66 Neutral	$171.53M	14.81	8.16%	3.32%	18.74%	―
BVFL	64 Neutral	$166.86M	14.81	5.63%	―	4.11%	-23.57%
Sector *	64 Neutral	$12.65B	9.74	8.04%	17044.64%	12.65%	-5.11%

Meridian Bank Corporate Events

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.

Spark’s Take on MRBK Stock

According to Spark, TipRanks’ AI Analyst, MRBK is a Neutral.

Meridian Bank’s financial performance is strong, characterized by significant revenue growth and a solid balance sheet with no debt. However, concerns about efficiency in profit and cash flow conversion slightly dampen the outlook. Technically, the stock is experiencing downward pressure, yet remains fairly valued with an attractive dividend yield.

To see Spark’s full report on MRBK stock, click here.