NasdaqGS:MRBK

Stock Analysis Report

Executive Summary

Meridian Corporation operates as the bank holding for Meridian Bank that provides commercial banking products and services for small and middle market businesses primarily in southeast Pennsylvania, Delaware, and southern New Jersey.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Meridian's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

NasdaqGS:MRBK

2.4%

US Banks

2.9%

US Market


1 Year Return

3.6%

NasdaqGS:MRBK

-14.8%

US Banks

0.2%

US Market

MRBK outperformed the Banks industry which returned -15.3% over the past year.

MRBK outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

MRBKIndustryMarket
7 Day-0.2%2.4%2.9%
30 Day5.9%-6.3%-2.3%
90 Day5.7%-2.1%3.1%
1 Year3.6%3.6%-12.4%-14.8%2.4%0.2%
3 Yearn/a41.7%32.0%41.7%32.4%
5 Yearn/a52.2%35.7%55.1%37.9%

Price Volatility Vs. Market

How volatile is Meridian's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Meridian undervalued based on future cash flows and its price relative to the stock market?

12.56x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Meridian's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Meridian's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Meridian is overvalued based on earnings compared to the US Banks industry average.

Meridian is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Meridian is good value based on expected growth next year.


Price Based on Value of Assets

Meridian is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Meridian expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Meridian's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).

Meridian's earnings are expected to grow by 16.6% yearly, however this is not considered high growth (20% yearly).

Meridian's revenue growth is expected to exceed the United States of America market average.

Meridian's earnings growth is expected to exceed the United States of America market average.

Meridian's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Meridian is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Meridian performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Meridian's year on year earnings growth rate has been positive over the past 5 years.

Meridian's 1-year earnings growth exceeds its 5-year average (100.5% vs 17%)

Meridian's earnings growth has exceeded the US Banks industry average in the past year (100.5% vs 33.2%).


Return on Equity

Meridian has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Meridian used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Meridian improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Meridian's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Meridian has an acceptable proportion of non-loan assets held.

Meridian has a sufficient allowance for bad loans.

Meridian's liabilities are made up of primarily low risk sources of funding.

Meridian's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Meridian are broadly funded by customer deposits.

Meridian has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Meridian's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Meridian's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Meridian's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Meridian has not reported any payouts.

Unable to verify if Meridian's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Meridian has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Meridian's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Chris Annas (63yo)

15.6yrs

Tenure

US$761,948

Compensation

Mr. Christopher J. Annas has been the founder, Chairman, President and CEO of Meridian Bank (“Meridian”) since 2004. Prior to starting Meridian, Mr. Annas has held executive positions with various communit ...


CEO Compensation Analysis

Chris's remuneration is higher than average for companies of similar size in United States of America.

Chris's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.6yrs

Average Tenure

62yo

Average Age

The average tenure for the Meridian management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.6yrs

Average Tenure

66yo

Average Age

The average tenure for the Meridian board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Meridian individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$5,16905 Aug 19
Christopher Annas
EntityIndividual
Role
Chief Executive Officer
Founder
Shares300
Max PriceUS$17.27
BuyUS$8,12305 Aug 19
Charles Kochka
EntityIndividual
Role
Other Key Executive
Executive VP & Chief Lending Officer
Shares689
Max PriceUS$11.79
BuyUS$10,50005 Aug 19
Robert Holland
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares600
Max PriceUS$17.50
BuyUS$5,04911 Jun 19
Robert Holland
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares300
Max PriceUS$16.83

Ownership Breakdown


Management Team

  • Denise Lindsay (52yo)

    Executive VP

    • Tenure: 10.6yrs
    • Compensation: US$367.77k
  • Chris Annas (63yo)

    Founder

    • Tenure: 15.6yrs
    • Compensation: US$761.95k
  • Charlie Kochka (62yo)

    Executive VP & Chief Lending Officer

    • Tenure: 2.6yrs
    • Compensation: US$278.83k
  • Edward Carpoletti

    Senior Vice President of Wealth Management

    • Tenure: 0.0yrs
  • Joseph Cafarchio (62yo)

    Executive VP & Chief Credit Officer

    • Tenure: 2.6yrs
    • Compensation: US$288.67k
  • Thomas Campbell

    Senior Vice President of Mortgage Lending

    • Tenure: 0.0yrs
  • Clarence Martindell

    Senior Vice President of CRE Lending

    • Tenure: 0.0yrs
  • James Nelsen

    Senior Vice President of Lending

    • Tenure: 0.0yrs
  • Randy McGarry (51yo)

    Chief Information Officer

    • Tenure: 0.0yrs
    • Compensation: US$209.77k
  • Jina Kim

    Executive Vice President of Human Resources

    • Tenure: 0.0yrs

Board Members

  • Denise Lindsay (52yo)

    Executive VP

    • Tenure: 10.6yrs
    • Compensation: US$367.77k
  • George Collier (72yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$21.25k
  • Chris Annas (63yo)

    Founder

    • Tenure: 15.6yrs
    • Compensation: US$761.95k
  • Robert Casciato (67yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$28.00k
  • Kenneth Slack (77yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$45.00k
  • Anthony Imbesi (45yo)

    Director

    • Tenure: 14.6yrs
    • Compensation: US$25.00k
  • Edward Hollin (65yo)

    Director

    • Tenure: 15.6yrs
    • Compensation: US$25.00k
  • Robert Holland (70yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$51.25k

Company Information

Meridian Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meridian Corporation
  • Ticker: MRBK
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$114.627m
  • Shares outstanding: 6.41m
  • Website: https://www.meridianbanker.com

Location

  • Meridian Corporation
  • 9 Old Lincoln Highway
  • Malvern
  • Pennsylvania
  • 19335
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRBKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2017

Biography

Meridian Corporation operates as the bank holding for Meridian Bank that provides commercial banking products and services for small and middle market businesses primarily in southeast Pennsylvania, Delawa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:50
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.