CORRECTED-Meridian Corp's Q2 net income jumps 133% to $5.6 mln

Overview

• Meridian Q2 net income rises 133% from prior quarter to $5.6 mln

• Pre-provision net revenue up 57% from Q2 2024, reflecting healthy growth

• Net interest margin improves to 3.54%, loan yield rises to 7.24%

Outlook

• Meridian forecasts 8-10% loan growth for the year

• Company focused on reducing historically high non-performing loans

• Meridian sees economic uncertainties not impacting Philadelphia metro market yet

Result Drivers

• MARGIN IMPROVEMENT - Net interest margin improved to 3.54%, driven by higher loan yields and increased interest earning assets

• SBA LOAN SALES - Significant increase in SBA loan income due to higher volume of loan sales, contributing to non-interest income growth

• MORTGAGE SEASONALITY - Mortgage banking income rose sharply due to increased loan sales and improved margins, despite limited housing inventory

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Meridian Corp is $17.00, about 12.6% above its July 23 closing price of $14.85

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXbVx25y