Back at the tail end of December of last year, I made the tough decision to downgrade Meridian Corporation (NASDAQ: MRBK ) from a ‘buy’ to a ‘hold’. Leading up to that point, shares of the company had risen by 18% atCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of ...

Group 1 - The company is reducing its mortgage banking income estimate due to a weak housing market [1] - The expected EPS for the company in 2025 has been revised down to $1.43 from a previous estimate of $1.67 [1]

For the transition period from __________ to __________ Or Commission File Number: 000-55983 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 (Exact name of registrant as specified in its charter) Pennsylvania 83-1561918 (S ...

Meridian Bank (MRBK) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this company would post earnings of $0.34 per share when it actually produced earnings of $0.49, delivering a surprise of 44.12%.Over the last four quarters, the company h ...

Exhibit 99.1 Meridian Corporation Reports First Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share. MALVERN, PA., April 25, 2025 — Meridian Corporation (Nasdaq: MRBK) today reported: | | | | Three Months Ended | | | | | --- | --- | --- | --- | --- | --- | --- | | | March 31, 2025 | | December 31, 2024 | | March 31, 2024 | | | (Dollars in thousands, except per share data)((Unaudited) | | | | | | | | Income: | | | | | | | | Net income | $ | 2,399 | $ | 5,600 | $ | 2,676 | | Dil ...

Core Insights - Meridian Corporation reported a net income of $2.4 million for Q1 2025, a decrease from $2.7 million in Q1 2024, while pre-provision net revenue (PPNR) increased by 30.2% to $8.4 million [1][2][5] - The company faced challenges due to higher provisioning related to distressed SBA loans, impacted by rising interest rates, but showed improvement in net interest margin, which reached 3.46% [2][5][6] Financial Performance - Net income for Q1 2025 was $2.4 million, or $0.21 per diluted share, down from $5.6 million, or $0.49 per diluted share in Q4 2024 [1][5][31] - PPNR increased by $1.9 million, or 30.2%, compared to Q1 2024 [5][31] - Total assets grew to $2.5 billion, a 6.0% increase from $2.4 billion at the end of Q4 2024 [18][21] Loan and Deposit Growth - Loan growth was annualized at 12%, with commercial loans increasing by $49.5 million, or 3% for the quarter [3][19] - Total deposits increased by $123.4 million, or 6.2%, with non-interest-bearing deposits rising by $82.6 million, or 34% [20][21] Non-Interest Income and Expenses - Total non-interest income decreased by $6.0 million, or 44.8%, primarily due to a lack of gains on the sale of mortgage servicing rights (MSRs) [15][16] - Non-interest expenses decreased by $2.7 million, or 12.5%, driven by reductions in salaries and employee benefits, occupancy costs, and professional fees [17][32] Asset Quality - Non-performing loans increased by $7.1 million to $52.2 million, with a ratio of non-performing loans to total loans rising to 2.49% [22][23] - The provision for credit losses increased to $5.2 million, reflecting the rise in non-performing loans [14][31] Wealth Management Performance - Meridian Wealth Partners reported pre-tax income of $726 thousand for the quarter, supported by a slight increase in assets under management [4]

Group 1 - Meridian Bank, founded in 2004, is a newcomer in the regional banking sector [1] - The bank has experienced growth over the last twenty years, establishing itself as a primary lender in the Delaware Valley [1]

Core Viewpoint - The analyst has revised their outlook on Meridian Corporation (NASDAQ: MRBK) due to the emergence of tariff issues and inflation uncertainty, moving from a previously dovish stance to a more cautious one [1]. Group 1 - The analyst previously expected a sharp fall in market interest rates but has changed this expectation based on new economic factors [1].

Corporate Structure and Operations - The Corporation operates through its wholly-owned subsidiary, Meridian Bank, providing a range of banking services across Pennsylvania, New Jersey, Delaware, Central Maryland, and Florida[22]. - The Bank operates four wholly-owned subsidiaries, including Meridian Wealth, which is a registered investment advisory firm[51]. - Meridian Wealth, a subsidiary, enhances the Corporation's capacity to provide comprehensive wealth management services to professionals and higher net worth individuals[27]. Financial Performance - Consolidated net income rose by $3.1 million, or 23.4%, for the year ended December 31, 2024[199]. - Basic earnings per share increased to $1.47 in 2024 from $1.19 in 2023[199]. - Diluted earnings per share rose to $1.45 in 2024 from $1.16 in 2023[199]. - Return on average assets improved to 0.70% in 2024 from 0.61% in 2023[199]. - Return on average equity increased to 9.93% in 2024 from 8.53% in 2023[199]. - Net interest income grew by $2.1 million, or 3.0%, due to higher levels of earning assets[199]. - Non-interest income surged by $9.4 million, or 29.3%, attributed to an improved mortgage banking environment[199]. Capital and Regulatory Compliance - Meridian Corporation is subject to extensive regulatory oversight from the FDIC, FRB, and PDBS, ensuring compliance with safety and soundness standards[46]. - Under Basel III Capital Rules, the minimum capital ratios required are 4.5% CET1 to risk-weighted assets and 6% Tier 1 capital to risk-weighted assets[64]. - The Capital Rules require an additional capital conservation buffer of 2.5% of CET1, resulting in effective minimum ratios of 7% CET1 to risk-weighted assets[66]. - The Bank adopted the community bank leverage ratio framework as its primary regulatory capital ratio, applicable to institutions with total consolidated assets of less than $10 billion[68]. - The FDIA mandates prompt corrective action for banks that do not meet minimum capital requirements, categorizing them into five capital tiers[70]. - The liquidity coverage ratio (LCR) requires the Bank to maintain high-quality liquid assets equal to expected net cash outflows for a 30-day period[70]. Loan and Deposit Growth - Total loans held for investment increased by $136.1 million, with significant growth in commercial real estate, construction, and small business loans, which collectively rose by $158.7 million[205]. - The loan portfolio grew by $137.8 million, or 7.3%, to $2.0 billion as of December 31, 2024, from $1.9 billion as of December 31, 2023[217]. - As of December 31, 2024, the company had $2.0 billion in deposits, which are subject to fluctuations due to various external factors[118]. Risk Management - The company must maintain adequate policies to combat money laundering and terrorist financing, as mandated by the USA PATRIOT Act, to avoid legal and reputational risks[98]. - The company faces liquidity risks that could impair its ability to meet financial commitments, particularly if customer deposits decrease due to alternative investment perceptions[115]. - The company’s operations are sensitive to economic conditions, particularly in its local markets, which could adversely affect loan repayment and overall profitability[108]. - Cybersecurity risks are actively managed through a comprehensive strategy involving regular assessments and training, although threats have been experienced[182]. Market and Economic Conditions - The median household income in the Philadelphia metropolitan area is $88,336, significantly higher than the national average of $62,843[31]. - The unemployment rate in the Philadelphia metropolitan area is 4.20%, while the median household income in the Baltimore metropolitan area is $105,582[32][31]. - The competitive landscape is intensifying, with larger institutions having greater resources, which may pressure the company's net interest margin[133]. Community Engagement - In 2024, the Corporation donated $546,000 to over 100 organizations across its service areas, demonstrating its commitment to community support[36]. Interest Rate and Economic Sensitivity - Changes in interest rates significantly impact mortgage-related revenues, with a decline in rates generally increasing demand for mortgage loans[144]. - The corporation's interest rate spread, net interest margin, and net interest income improved as interest-bearing liabilities repriced faster than interest-earning assets[139]. - Interest expense rose by $17.4 million year-over-year, primarily due to market interest rate increases and an increase of $178.0 million in average interest-bearing deposits[206]. Wealth Management - Wealth management revenues are primarily derived from investment advisory fees based on assets under management, which may decline due to market conditions or client withdrawals[164]. - Strong competition in the wealth management sector may hinder the company's ability to attract and retain clients, affecting overall financial results[166]. Compliance and Legal Risks - The company is required to comply with various federal and state consumer protection laws, which can result in significant liabilities if violated[84]. - The CFPB has broad authority to enforce consumer financial protection laws, particularly for institutions with assets of $10 billion or more[85]. - The company is subject to heightened independence requirements for its compensation committee as per the Dodd-Frank Act, which could affect governance practices[102].

Core Viewpoint - Meridian Bank (MRBK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Meridian Bank's Earnings Outlook - The upgrade reflects an improvement in Meridian Bank's underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2025, Meridian Bank is projected to earn $2.07 per share, representing a 42.8% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Meridian Bank has risen by 13.4% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - The upgrade to Zacks Rank 2 places Meridian Bank in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].