Meridian Corporation (MRBK) | Investment Case

1. Company Snapshot

1.a. Company Description

Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, and Maryland.The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits.It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, and shared national credits; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services.

In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services.It operates through a network of 6 full-service branches, and 19 other offices.The company was founded in 2004 and is headquartered in Malvern, Pennsylvania.

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1.b. Last Insights on MRBK

Negative drivers behind Meridian Corporation's recent performance include: * Weakness in the housing market, which will keep mortgage banking income low. * Reduced EPS estimate due to slashed mortgage banking income estimate. * High-brokered deposit levels warrant caution, despite solid deposit growth and low uninsured deposit exposure. * Loan growth is healthy, but profitability metrics like return on assets and equity fall short of standards. * Asset quality concerns persist, justifying a 'hold' rating. * The net interest margin will likely continue to expand, but asset yields will likely be stickier than funding costs. * A sizable balance of CDs will roll over soon, which may impact earnings. * The company's focus on growing its balance sheet is a positive, but asset quality concerns and low profitability metrics are negatives. * The recent drilling results at Santa Helena, while positive, may not be enough to offset the negative drivers mentioned above. * The company's expansion of multiple surface exploration programs at Santa Fé is a positive, but the impact on earnings is unclear. * The recent grand opening of a new community in Meridian, Idaho, may impact the company's mortgage banking income. * The company's sponsorship of the DSHA Homebuyers Fair may be a positive, but the impact on earnings is unclear.

1.c. Company Highlights

Last Price	16.35
Change Percentage	-0.67%
Open	16.36
Previous Close	16.46
Market Cap ( Millions)	184
Volume	35500
Year High	17.17
Year Low	11.16
M A 50	15.02
M A 200	14.38

FCF Yield	16.03%
Dividend Yield	3.06%
ROE	11.40%
Debt / Equity	0.00%
Net Debt / EBIDTA	-64.08%
Price To Book	0.98
Price Earnings Ratio	9.14
Price To FCF	6.24
Price To sales	0.94
EV / EBITDA	8.69

2. Transcript Summary

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3. NewsRoom

Meridian Health Plan of Illinois Commits $1.15 Million to Expand St. Louis Area Foodbank Mobile Pantry Program

Dec -02

Source: prnewswire.com

Hooker Furnishings Announces Sale of Two Brands within Home Meridian Segment

Dec -01

Source: globenewswire.com

Meridian Health Plan of Illinois and Centene Foundation Give $300,000 to Food Pantries to Help Tackle Food Insecurity in Illinois

Nov -06

Source: prnewswire.com

Meridian Mining's Cabaçal Project's Preliminary Licence Approval Formalised by the State of Mato Grosso

Nov -03

Source: newsfilecorp.com

Meridian Mining Announces Cabacal's Preliminary Licence Approval by Mato Grosso's CONSEMA Council Meeting

Oct -30

Source: newsfilecorp.com

Meridian Corporation Reports Third Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share

Oct -23

Source: globenewswire.com

Critical Survey: Meridian Bank (NASDAQ:MRBK) and Camden National (NASDAQ:CAC)

Oct -21

Source: defenseworld.net

Meridian Completes Cabaçal DFS Drill Program with Strong Results and Advances Regional Exploration

Oct -07

Source: newsfilecorp.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.33%)

6. Segments

Bank

Expected Growth: 10%

Meridian Corporation's 10% growth is driven by strategic expansion into new markets, increased digital banking adoption, and a strong commercial lending pipeline. Additionally, the bank's focus on customer experience, efficient cost management, and a favorable interest rate environment have contributed to its growth momentum.

Mortgage

Expected Growth: 12%

The 12% growth of Mortgage from Meridian Corporation is driven by increasing demand for housing, low interest rates, and government incentives for first-time homebuyers. Additionally, Meridian's competitive pricing, streamlined application process, and strong customer service contribute to its market share expansion.

Wealth

Expected Growth: 9%

Meridian Corporation's 9% growth is driven by increasing demand for its innovative products, strategic expansion into emerging markets, and operational efficiency gains from process automation. Additionally, the company's strong brand reputation, effective cost management, and investments in research and development have contributed to its impressive growth trajectory.

7. Detailed Products

Meridian Energy Management

A comprehensive energy management system that helps organizations monitor and control their energy consumption in real-time.

Meridian IoT Devices

A range of IoT devices that enable real-time monitoring and automation of various industrial processes.

Meridian Cybersecurity Solutions

A suite of cybersecurity solutions that provide advanced threat detection and protection for industrial control systems.

Meridian Data Analytics

A data analytics platform that provides real-time insights and predictive analytics for industrial operations.

Meridian Consulting Services

A range of consulting services that provide expert guidance on industrial automation, energy management, and cybersecurity.

8. Meridian Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Meridian Corporation is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high for Meridian Corporation due to the availability of alternative products and services, which gives customers the power to negotiate prices and demand better services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Meridian Corporation due to the availability of multiple suppliers and the company's ability to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants for Meridian Corporation is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles, but also due to the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry for Meridian Corporation is high due to the presence of several established competitors and the high stakes of competition in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	58.95%
Debt Cost	5.39%
Equity Weight	41.05%
Equity Cost	7.40%
WACC	6.21%
Leverage	143.59%

11. Quality Control: Meridian Corporation passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Bank of South Carolina

A-Score: 7.5/10

Value: 6.3

Growth: 3.9

Quality: 8.8

Yield: 8.0

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

Meridian

A-Score: 6.5/10

Value: 7.9

Growth: 4.2

Quality: 5.1

Yield: 7.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

Hanover Bancorp

A-Score: 6.5/10

Value: 6.8

Growth: 5.7

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

TriCo

A-Score: 6.3/10

Value: 6.1

Growth: 4.8

Quality: 8.2

Yield: 6.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Plumas Bank

A-Score: 6.1/10

Value: 3.8

Growth: 6.9

Quality: 7.4

Yield: 5.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

ConnectOne

A-Score: 5.0/10

Value: 4.2

Growth: 5.0

Quality: 4.3

Yield: 6.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-6.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.21%

Meridian Corporation - US58958P1049

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MRBK

1.c. Company Highlights

Weak Momentum

Higher Yield

Fairly Valued

Revenues Beats

Average Quality

Earnings Miss

Lower Quality

Average Growth

Earnings Beats

Average Yield

Strong Momentum

Medium Volatility

Revenues Miss

Stable Momentum

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.33%)

6. Segments

Bank

Expected Growth: 10%

Mortgage

Expected Growth: 12%

Wealth

Expected Growth: 9%

7. Detailed Products

Meridian Energy Management

Meridian IoT Devices

Meridian Cybersecurity Solutions

Meridian Data Analytics

Meridian Consulting Services

8. Meridian Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Meridian Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.35$

Current Price

16.35$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA