MALVERN, Pa. - Meridian Corporation (NASDAQ:MRBK), a regional bank with a market capitalization of $155.24 million, disclosed its financial results for the first quarter ended March 31, 2025, revealing a net income of $2.4 million, or $0.21 per diluted share. This figure is slightly below the net income of $2.7 million reported in the same period last year. However, pre-provision net revenue (PPNR) saw a significant increase of 30.2% from the first quarter of 2024, rising to $8.4 million. InvestingPro analysis shows the company trading at an attractive P/E ratio of 9.63, with analysts maintaining price targets between $18-19 per share.
The company’s net interest margin stood at 3.46% for the quarter, with a loan yield of 7.19%. Return on average assets and equity were reported at 0.40% and 5.57%, respectively. Total assets increased to $2.5 billion, up from $2.4 billion at the end of the previous quarter and $2.3 billion year-over-year. The company maintains a healthy dividend yield of 3.53%, supported by steady revenue growth of 7.27% over the last twelve months.
Commercial loans, excluding leases, grew by 3% over the quarter, and deposits saw a 6% increase. Non-interest-bearing deposits experienced a notable surge of 34%. The Board of Directors also declared a quarterly cash dividend of $0.125 per common share, payable on May 19, 2025, to shareholders of record as of May 12, 2025.
Christopher J. Annas, Chairman and CEO of Meridian, commented on the results, noting that while earnings were slightly down due to higher provisioning for distressed Small Business Administration (SBA) loans affected by rising rates, the company saw healthy business growth and controlled expenses. He also highlighted the progress in the remediation process for SBA loans and the consistent improvement in net interest margin over the last four quarters. According to InvestingPro, the company’s stock has demonstrated remarkable strength with a 63.86% return over the past year, suggesting strong investor confidence in management’s strategy. Subscribers can access 6 additional ProTips and comprehensive financial metrics for deeper analysis.
Meridian Wealth Partners continued to perform strongly, with a pre-tax income of $726 thousand for the quarter. The mortgage group, however, reported a larger pre-tax loss compared to the first quarter of 2024, mainly due to lower volume and a reduced loan officer count. Despite seasonal weakness, the company remains optimistic about loan originations due to an expected increase in home inventory in its markets.
This news is based on a press release statement from Meridian Corporation.
In other recent news, Meridian Bank has been in the spotlight following its latest earnings results. The bank reported an expansion in its net interest margin by 9 basis points quarter-over-quarter, surpassing expectations. This was accompanied by a notable growth in loans and deposits, which increased by 4% and 5% respectively. However, despite these positive indicators, the bank’s core earnings per share fell short of expectations due to higher provisions and an increase in net charge-offs. DA Davidson analyst Russell Gunther maintained a Buy rating for Meridian Bank, with a price target of $19.00, while adjusting the earnings per share forecast due to a less favorable outlook for mortgage banking. Gunther also highlighted the bank’s pre-provision net revenue performance, which was bolstered by an uptick in net interest income and fees. Nonetheless, this was somewhat offset by elevated operating expenses. The analyst noted that the bank’s potential for above-peer growth remains strong, even as its current trading price is considered low relative to its tangible book value.
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