Core Viewpoint - Meridian Bank (MRBK) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an A for Value, indicating it is currently undervalued in the market [4][8]. Valuation Metrics - MRBK has a P/E ratio of 9.40, which is lower than the industry average of 11.13, suggesting it is undervalued compared to its peers [4]. - The stock's P/B ratio stands at 1.11, compared to the industry's average P/B of 1.34, further indicating its attractive valuation [5]. - MRBK's P/S ratio is 0.95, significantly lower than the industry average of 1.88, highlighting its potential as a value investment [6]. - The P/CF ratio for MRBK is 8.44, which is much lower than the industry's average P/CF of 25.19, reinforcing the notion that the stock is undervalued [7]. Earnings Outlook - The combination of MRBK's favorable valuation metrics and strong earnings outlook positions it as an impressive value stock in the current market [8].

Group 1: Earnings Performance - Meridian Bank reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing a significant increase from $0.05 per share a year ago, representing an earnings surprise of 44.12% [1] - The company posted revenues of $28.59 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.91%, compared to $25.06 million in the same quarter last year [2] - Over the last four quarters, Meridian Bank has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Meridian Bank shares have increased approximately 14.3% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.37 on revenues of $26.58 million, and for the current fiscal year, it is $1.75 on revenues of $115.19 million [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Banks - Northeast sector is currently in the top 18% of over 250 Zacks industries, suggesting a favorable environment for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5]

Financial Performance - Net income for Q4 2024 was $5.6 million, or $0.49 per diluted share, representing an 18.1% increase from Q3 2024[2] - For the full year 2024, net income increased 23.4% to $16.3 million, or $1.45 per diluted share[2] - Pre-tax, pre-provision income for Q4 2024 was $11.2 million, and $33.2 million for the full year[4] - Basic earnings per common share rose to $0.50 for the quarter, compared to $0.43 in the prior quarter[32] - Income before income tax expense for the three months ended December 31, 2024, was $7,596,000, compared to $6,245,000 for the previous quarter, representing an increase of 21.7%[40] Loan and Deposit Growth - Loan growth for 2024 was 12%, with commercial loans increasing by $177.1 million year over year[3] - Total deposits grew by $181.9 million, or 10%, year over year, with a quarterly increase of $26.4 million, or 1%[4] - Total deposits reached $2,005,368 million, up from $1,978,927 million in the previous quarter, marking an increase of 1.8%[34] - Portfolio loan growth was $22.8 million, or 1.1% quarter-over-quarter, with commercial mortgage loans increasing by $23.0 million, or 2.9%[19] Non-Interest Income and Expenses - Total non-interest income rose by $2.4 million, or 22.6%, quarter-over-quarter, totaling $13.3 million, driven by a $4.0 million gain on the sale of mortgage servicing rights[16] - Non-interest income for the quarter was $13,280 million, significantly higher than $10,831 million in the previous quarter, representing a growth of 22.5%[36] - Total non-interest expense was $21,411 million, up from $20,546 million in the prior quarter[32] Credit Quality and Provisions - The overall provision for credit losses for Q4 increased by $1.3 million to $3.6 million, up from $2.3 million in Q3[15] - Net charge-offs increased to $7.1 million for Q4, representing 0.34% of total average loans, up from 0.11% in Q3[23] - The ratio of allowance for credit losses to total loans held for investment decreased to 0.91% from 1.10% in the prior quarter[24] - Provision for credit losses increased to $3,572 million in Q4 2024 from $2,282 million in Q3 2024, indicating a rise of 56.5%[36] Equity and Capital Ratios - Total stockholders' equity increased by $4.1 million to $171.5 million, supported by net income of $5.6 million and dividends paid of $1.4 million[21] - Total stockholders' equity (GAAP) increased to $171,522,000 as of December 31, 2024, compared to $167,450,000 as of September 30, 2024, reflecting a growth of 1.3%[43] - Book value per common share increased to $15.26 from $14.91 in the previous quarter[30] - Tangible common equity to tangible assets ratio (non-GAAP) improved to 7.05% as of December 31, 2024, from 6.87% as of September 30, 2024[43] Operational Efficiency - The efficiency ratio improved to 65.72% from 70.67% in the previous quarter[30] - The efficiency ratio improved to 66% in Q4 2024 from 70% in Q3 2024, indicating better cost management[36] Regulatory and Operational Concerns - Regulatory costs are a concern for the company, with hopes for reduced burdens under the new administration[6] - Occupancy and equipment expenses rose by $1.0 million, primarily due to costs associated with the early termination of a lease[17]

Financial Performance - The company reported a fourth quarter net income of $5.6 million, an increase of 18.1% from the previous quarter, translating to $0.49 per diluted share [1][4][8] - For the full year, net income rose 23.4% to $16.3 million, or $1.45 per diluted share [1][4] - Pre-tax, pre-provision income for the fourth quarter was $11.2 million, and $33.2 million for the year [4] Loan and Deposit Growth - Loan growth for 2024 was exceptional at 12%, with contributions from commercial real estate, commercial and industrial (C&I), and Small Business Administration (SBA) lending [2] - Total deposits increased by $26.4 million, or 1%, quarter-over-quarter, and by $181.9 million, or 10%, year-over-year [21] Non-Interest Income - Non-interest income increased by $2.4 million, or 22.6%, quarter-over-quarter, driven by a $4.0 million gain on the sale of mortgage servicing rights [17] - SBA loan income saw a significant increase of 110.1%, reflecting higher levels of SBA loan sales [17] Non-Interest Expense - Total non-interest expense rose by $865 thousand, or 4.2%, primarily due to increased occupancy and equipment costs related to the early termination of a lease [18] - Salaries and employee benefits decreased by $400 thousand, while advertising and promotion expenses increased by 17% [18] Asset Quality - Non-performing loans decreased slightly to $45.1 million, resulting in a ratio of non-performing loans to total loans of 2.19% [23] - The company experienced net charge-offs of 0.34% of total average loans, up from 0.11% in the previous quarter, with total charge-offs reaching $7.1 million [24] Balance Sheet Highlights - Total assets remained stable at approximately $2.4 billion, with a slight decrease of $1.9 million from the previous quarter [19] - Stockholders' equity increased by $4.1 million to $171.5 million as of December 31, 2024 [22] Regulatory Environment - The company expressed optimism regarding the new administration's potential to reduce regulatory burdens, which could enhance operational efficiency and shareholder returns [6]

Company Overview - Meridian Bank (MRBK) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.34, reflecting a significant change of +580% [3] - Revenues are anticipated to reach $26.74 million, which is a 6.7% increase from the previous year [3] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Earnings ESP for Meridian Bank is -7.46%, suggesting a bearish outlook from analysts regarding the company's earnings prospects [10] Historical Performance - In the last reported quarter, Meridian Bank exceeded the expected EPS of $0.35 by delivering $0.42, resulting in a surprise of +20% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Comparative Analysis - First Mid Bancshares (FMBH), another player in the Zacks Banks - Northeast industry, is expected to report an EPS of $0.82, which represents a year-over-year decline of -12.8% [17] - FMBH's revenues are projected to be $81.65 million, up 3.1% from the previous year [17] - The consensus EPS estimate for FMBH has been revised up by 0.7% over the last 30 days, but it currently has an Earnings ESP of -2.74% [18]

Core Viewpoint - The article highlights Meridian Bank (MRBK) as a strong value investment opportunity, supported by various valuation metrics indicating it is currently undervalued compared to its industry peers [4][5][6][7][8]. Valuation Metrics - MRBK has a P/E ratio of 9.58, significantly lower than the industry average of 12.58, indicating potential undervaluation [4]. - The P/B ratio for MRBK stands at 1.14, compared to the industry average of 1.40, suggesting a favorable valuation [5]. - MRBK's P/S ratio is 1.02, while the industry average is 2, further supporting the notion of undervaluation [6]. - The P/CF ratio for MRBK is 11.05, which is attractive compared to the industry's average of 26.38, indicating a solid cash outlook [7]. Investment Outlook - Given the strength of its earnings outlook and the favorable valuation metrics, MRBK is positioned as one of the market's strongest value stocks [8].

Core Viewpoint - Meridian Bank (MRBK) is currently considered a strong value stock due to its favorable valuation metrics and earnings outlook [4][8]. Valuation Metrics - MRBK has a Forward P/E ratio of 8.06, significantly lower than the industry average of 12.42, indicating potential undervaluation [4]. - The P/B ratio for MRBK is 0.98, compared to the industry's average of 1.46, suggesting that the stock is trading below its book value [5]. - MRBK's P/S ratio stands at 0.85, while the industry average is 1.94, further supporting the notion of undervaluation [6]. - The P/CF ratio for MRBK is 8.84, in contrast to the industry's average of 27.97, highlighting a solid cash flow outlook [7]. Investment Outlook - Given the combination of MRBK's strong earnings outlook and its attractive valuation metrics, it is positioned as a compelling investment opportunity for value investors [8].

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 September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 000-55983 (Exact name of registrant as specified in its charter) Pennsylvania 83-156191 ...

Core Viewpoint - Wall Street anticipates flat earnings for Meridian Bank in the upcoming quarter, with a consensus EPS estimate of $0.35, unchanged from the previous year, while revenues are expected to rise by 5% to $26.57 million [2][6]. Group 1: Earnings Estimates - The consensus EPS estimate for Meridian Bank has remained unchanged over the last 30 days, indicating stability in analyst expectations [3]. - Meridian Bank's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.86%, suggesting a bullish outlook from analysts [6][7]. Group 2: Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [5]. - Meridian Bank currently holds a Zacks Rank of 2, reinforcing the likelihood of beating the consensus EPS estimate [7]. Group 3: Historical Performance - In the last reported quarter, Meridian Bank was expected to post earnings of $0.32 per share but delivered only $0.30, resulting in a surprise of -6.25% [8]. - Over the past four quarters, Meridian Bank has only beaten consensus EPS estimates once, indicating a mixed historical performance [8]. Group 4: Market Context - The Bancorp, a peer in the Zacks Banks - Northeast industry, is expected to report earnings of $1.12 per share, reflecting a year-over-year increase of +21.7%, with revenues projected to rise by 13.6% to $131.34 million [10]. - The Bancorp's recent EPS estimate has been revised down by 2.5%, and it currently has an Earnings ESP of 0.00% combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [10].

Group 1 - Meridian Corporation (NASDAQ: MRBK) is expected to see a significant increase in earnings due to anticipated interest rate cuts, which will enhance mortgage banking income [1] - Healthy loan growth is projected to further support the company's bottom line [1] - Earnings growth is forecasted at 16%, reaching $1.35 per share [1]