Today, Meridian Corp, listed as NASDAQ:MRBK, disclosed its financial results for the third quarter ending September 30, 2024. The company made this information available through an Earnings Supplement on its website, alongside its latest 8-K filing with the Securities and Exchange Commission (SEC).
The financial details, which are not filed but furnished, will not be deemed "filed" for purposes of Section 18 of the Exchange Act, nor will they be incorporated by reference into any future filings under the Securities or Exchange Acts, unless specified.
The Earnings Supplement, dated October 31, 2024, provides investors and the public with additional insights into Meridian Corp's financial performance over the past quarter. This Pennsylvania-based national commercial bank operates under the organization name 02 Finance.
Meridian Corp's decision to release its financial statements and exhibits comes as part of its regulatory disclosures, offering transparency into its operations and performance. The company, with its principal executive offices located at 9 Old Lincoln Highway, Malvern, Pennsylvania, has made it clear that this information is intended to provide stakeholders with a comprehensive understanding of its financial health.
In other recent news, Meridian Bank (NASDAQ:MRBK)'s third-quarter earnings report showcased an earnings per share (EPS) of $0.42, surpassing both Piper Sandler's estimate of $0.34 and the consensus estimate of $0.35. This led Piper Sandler to increase its price target for Meridian Bank from $14.00 to $15.00, while maintaining a neutral rating. The bank's robust revenue was highlighted, with net interest income exceeding expectations, bolstered by a strong net interest margin, and fee revenues outperforming analyst predictions due to heightened mortgage banking activity.
The bank's credit provisioning for the quarter aligned with projections, and net charge-offs were reported at 46 basis points. However, average loan growth was lower than expected, with a modest increase of 1.3% from the last quarter. Piper Sandler's revised earnings estimate for Meridian Bank reflects an improved net interest margin forecast, tempered by anticipated increases in credit costs.
In other recent developments, Meridian Bank's second-quarter earnings report showed an EPS of $0.30, slightly missing the consensus estimate of $0.31. Despite this, the bank reported robust revenue, exceeding expectations primarily due to strong net interest income and mortgage revenue. Piper Sandler maintained a neutral rating on the company's stock, raising the price target from $11.00 to $13.00 following these results.
InvestingPro Insights
Meridian Corp's (NASDAQ:MRBK) recent financial disclosure aligns with several key metrics and trends highlighted by InvestingPro. The company's stock has shown remarkable strength, with InvestingPro data indicating a significant 56.22% price total return over the past six months and a 22.47% return in the last three months. This performance has pushed the stock to trade near its 52-week high, with the current price at 98.53% of that peak.
InvestingPro Tips suggest that MRBK has been profitable over the last twelve months, which is consistent with the company's decision to release its latest earnings report. The P/E ratio of 13.77 indicates that investors are paying a moderate price for the company's earnings, potentially reflecting confidence in its financial health.
Despite the strong stock performance, InvestingPro Tips also highlight that MRBK suffers from weak gross profit margins. This could be an area of focus for investors analyzing the newly released financial results. Additionally, with a dividend yield of 3.55%, MRBK may appeal to income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Meridian Corp, providing deeper insights into the company's financial position and market performance.
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