MALVERN, Pa. - Meridian Corporation (NASDAQ: MRBK), currently trading at $15.67 and considered undervalued according to InvestingPro Fair Value metrics, disclosed its financial results, revealing an increase in net income for both the fourth quarter and the full year of 2024. The net income for the quarter ending December 31, 2024, was $5.6 million, or $0.49 per diluted share, and for the year, it reached $16.3 million, or $1.45 per diluted share. This represents an 18.1% growth from the previous quarter and a 23.4% increase year over year. The company's strong performance is reflected in its impressive 37% price return over the past six months.
The pre-tax, pre-provision income showed a positive trend as well, with a quarterly figure of $11.2 million and an annual total of $33.2 million. The net interest margin stood at 3.29% for the fourth quarter, with a loan yield of 7.17%. The annual net interest margin was slightly lower at 3.16%, with a loan yield of 7.28%.
The return on average assets and equity for the fourth quarter were 0.92% and 13.01%, respectively, marking improvements from the annual figures of 0.70% and 9.93%. During the same period, the company recognized a net gain of $4.0 million from the sale of residential mortgage loan servicing rights and a $317 thousand gain from the sale of an OREO property.
Total (EPA:TTEF) assets remained stable at $2.4 billion as of December 31, 2024, mirroring the count from September 30, 2024, and showing growth from $2.2 billion the previous year. Commercial loans, excluding leases, saw a 2% increase for the quarter and a 12% rise year over year. Deposit growth was also robust, with a 10% increase over the year. InvestingPro analysis highlights the company's high shareholder yield and strong return over the last three months, with additional ProTips available to subscribers.
The Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable on February 18, 2025, to shareholders of record as of February 10, 2025.
Christopher J. Annas, Chairman and CEO, expressed satisfaction with the quarterly and annual earnings improvement. He noted the challenges posed by the Federal Reserve's rate changes but was optimistic about the future, citing substantial growth in the bank's commercial real estate loans and the performance of the wealth management segment. With a market capitalization of $173.42 million and a competitive P/E ratio of 15.5, the company offers a notable dividend yield of 3.19%. For deeper insights into MRBK's financial health and growth potential, visit InvestingPro.
The company's financial results are based on a press release statement and reflect the corporation's performance up to the end of the 2024 fiscal year.
In other recent news, Meridian Corp disclosed its third-quarter financial performance, revealing 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 robust revenue performance, propelled by strong net interest income and fee revenues, led Piper Sandler to raise its price target for Meridian Bank (NASDAQ:MRBK) from $14.00 to $15.00, while maintaining a neutral rating. However, the bank's average loan growth was slightly below expectations, showing a modest increase of 1.3% from the previous quarter.
In addition to the third-quarter results, Meridian Bank's second-quarter earnings report displayed an EPS of $0.30, slightly missing the consensus estimate of $0.31. Despite this, the bank reported robust revenue, mainly due to strong net interest income and mortgage revenue. Following these results, Piper Sandler maintained a neutral rating on the company's stock and increased the price target from $11.00 to $13.00.
These recent developments reflect Meridian Bank's financial health and performance. The company's decision to release its financial statements and exhibits provides transparency into its operations and performance. Investors should note that these financial details are not filed but furnished, and will not be incorporated by reference into any future filings under the Securities or Exchange Acts, unless specified.
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