Major Estimate Revision • May 06
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from US$2.30 to US$2.00 per share. Revenue forecast steady at US$137.3m. Net income forecast to grow 8.3% next year vs 12% growth forecast for Banks industry in the US. Consensus price target reaffirmed at US$22.00. Share price fell 2.3% to US$17.95 over the past week. Major Estimate Revision • May 05
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from US$2.30 to US$2.00 per share. Revenue forecast steady at US$137.3m. Net income forecast to grow 8.3% next year vs 13% growth forecast for Banks industry in the US. Consensus price target reaffirmed at US$22.00. Share price fell 9.0% to US$17.37 over the past week. Announcement • Apr 28
Meridian Corporation and Meridian Bank Announces Appointment of Ken Warriner to Board of Directors, Effective April 27, 2026 Meridian Corporation and Meridian Bank announced that Ken Warriner has been appointed to an open position on its Board of Directors and its principal subsidiary, Meridian Bank, effective immediately on April 27, 2026. Warriner currently serves as Senior Director of Finance and Administration of the Naples Airport Authority (NAA) in Naples, Florida, where he began his aviation career in 2018. In this role, he oversees accounting, information technology, procurement, risk management and investment activities for the Authority. Warriner has also served as a member of Meridian’s Advisory Council in Florida since 2022. Prior to joining the NAA, Warriner spent 16 years in the healthcare industry with a Fortune 500 company, where he held roles as Assistant Corporate Controller and Chief Financial Officer for several hospitals in Florida and Mississippi. He began his career in public accounting with PricewaterhouseCoopers and is a licensed Certified Public Accountant, holding a degree from Baylor University. Declared Dividend • Apr 27
First quarter dividend of US$0.14 announced Shareholders will receive a dividend of US$0.14. Ex-date: 4th May 2026 Payment date: 11th May 2026 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 14% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 13% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 25
Meridian Corporation Reports Net Charge-Offs for the First Quarter Ended March 31, 2026 Meridian Corporation reported net charge-offs for the First Quarter Ended March 31, 2026. For the quarter, Net charge-offs increased to $3.9 million, or 0.18% of total average loans for the quarter ended March 31, 2026, compared to net charge-offs of $3.5 million, or 0.16%, for the quarter ended December 31, 2025. First quarter charge-offs consisted of $2.5 million in SBA loans, $149 thousand in commercial loans, $856 thousand in finance receivables, and $745 thousand of small ticket equipment leases. Partially offsetting first quarter charge-offs were recoveries of $407 thousand, mainly related to leases. Reported Earnings • Apr 24
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: US$0.40 (up from US$0.21 in 1Q 2025). Revenue: US$26.2m (up 20% from 1Q 2025). Net income: US$4.71m (up 97% from 1Q 2025). Profit margin: 18% (up from 11% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates by 18%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 07
Meridian Corporation, Annual General Meeting, May 28, 2026 Meridian Corporation, Annual General Meeting, May 28, 2026. Location: 9 old lincoln highway, malvern, pa, 19355, United States Reported Earnings • Mar 16
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$1.93 (up from US$1.47 in FY 2024). Revenue: US$111.7m (up 11% from FY 2024). Net income: US$21.8m (up 34% from FY 2024). Profit margin: 20% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.64% (up from 3.16% in FY 2024). Non-performing loans: 2.54% (up from 2.23% in FY 2024). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 3.8%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has increased by 12% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Feb 03
Price target increased by 7.3% to US$22.00 Up from US$20.50, the current price target is an average from 2 analysts. New target price is 8.4% above last closing price of US$20.30. Stock is up 22% over the past year. The company is forecast to post earnings per share of US$2.30 for next year compared to US$1.93 last year. Declared Dividend • Feb 02
Fourth quarter dividend increased to US$0.14 Dividend of US$0.14 is 12% higher than last year. Ex-date: 9th February 2026 Payment date: 17th February 2026 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (27% payout ratio) and is expected to be well covered in 3 years' time (25% forecast payout ratio). The dividend has increased by an average of 14% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 36% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 30
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$1.93 (up from US$1.47 in FY 2024). Revenue: US$111.7m (up 11% from FY 2024). Net income: US$21.8m (up 34% from FY 2024). Profit margin: 20% (up from 16% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 3.8%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 6% per year. Declared Dividend • Oct 27
Third quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 10th November 2025 Payment date: 17th November 2025 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 5 years and payments have been stable during that time. Earnings per share has grown by 1.3% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 24
Third quarter 2025 earnings released: EPS: US$0.59 (vs US$0.43 in 3Q 2024) Third quarter 2025 results: EPS: US$0.59 (up from US$0.43 in 3Q 2024). Revenue: US$30.2m (up 13% from 3Q 2024). Net income: US$6.66m (up 40% from 3Q 2024). Profit margin: 22% (up from 18% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Oct 16
New major risk - Revenue and earnings growth Earnings have declined by 16% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Recent Insider Transactions Derivative • Aug 10
Independent Director exercised options to buy US$153k worth of stock. On the 7th of August, George Collier exercised options to buy 11k shares at a strike price of around US$7.62, costing a total of US$80k. This transaction amounted to 19% of their direct individual holding at the time of the trade. Since March 2025, George has owned 67.64k shares directly. Company insiders have collectively bought US$237k more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • Jul 30
Second quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 11th August 2025 Payment date: 18th August 2025 Dividend yield will be 3.4%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 24% over the next year, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Jul 29
Price target increased by 12% to US$19.00 Up from US$17.00, the current price target is provided by 1 analyst. New target price is 28% above last closing price of US$14.87. Stock is up 28% over the past year. The company is forecast to post earnings per share of US$1.73 for next year compared to US$1.47 last year. Reported Earnings • Jul 25
Second quarter 2025 earnings: EPS and revenues exceed analyst expectations Second quarter 2025 results: EPS: US$0.50 (up from US$0.30 in 2Q 2024). Revenue: US$28.6m (up 22% from 2Q 2024). Net income: US$5.59m (up 68% from 2Q 2024). Profit margin: 20% (up from 14% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.4%. Earnings per share (EPS) also surpassed analyst estimates by 17%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. New Risk • Jul 03
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$13.75, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 11x in the Banks industry in the US. Total returns to shareholders of 5.9% over the past three years. Major Estimate Revision • May 02
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$120.9m to US$119.2m. EPS estimate also fell from US$1.72 per share to US$1.54 per share. Net income forecast to grow 20% next year vs 13% growth forecast for Banks industry in the US. Consensus price target down from US$18.50 to US$17.00. Share price fell 2.3% to US$13.63 over the past week. Declared Dividend • Apr 28
First quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 12th May 2025 Payment date: 19th May 2025 Dividend yield will be 3.6%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 15% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 25% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 27
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: US$0.21 (down from US$0.24 in 1Q 2024). Revenue: US$21.9m (flat on 1Q 2024). Net income: US$2.40m (down 10% from 1Q 2024). Profit margin: 11% (down from 12% in 1Q 2024). Revenue missed analyst estimates by 3.0%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Apr 07
Meridian Corporation, Annual General Meeting, May 22, 2025 Meridian Corporation, Annual General Meeting, May 22, 2025. Location: 9 old lincoin highway, pa 19355, malvern United States Reported Earnings • Mar 18
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$1.47 (up from US$1.19 in FY 2023). Revenue: US$100.9m (up 7.3% from FY 2023). Net income: US$16.3m (up 23% from FY 2023). Profit margin: 16% (up from 14% in FY 2023). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.16% (down from 3.35% in FY 2023). Non-performing loans: 2.23% (up from 1.79% in FY 2023). Revenue exceeded analyst estimates by 5.4%. Earnings per share (EPS) also surpassed analyst estimates by 9.8%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Feb 22
Meridian Corporation has filed a Follow-on Equity Offering. Meridian Corporation has filed a Follow-on Equity Offering.
Security Name: Common Stock
Security Type: Common Stock
Securities Offered: 1,000,000 Price Target Changed • Jan 28
Price target increased by 13% to US$18.00 Up from US$16.00, the current price target is an average from 2 analysts. New target price is 9.4% above last closing price of US$16.46. Stock is up 29% over the past year. The company is forecast to post earnings per share of US$1.70 for next year compared to US$1.47 last year. Declared Dividend • Jan 27
Fourth quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 10th February 2025 Payment date: 18th February 2025 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (34% payout ratio) and is expected to be well covered in 3 years' time (26% forecast payout ratio). The dividend has increased by an average of 15% per year over the past 5 years and payments have been stable during that time. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jan 24
Meridian Corporation Declares Quarterly Dividend , Payable on February 18, 2025 Meridian Corporation declared a quarterly cash dividend of $0.125 per common share, payable February 18, 2025 to shareholders of record as of February 10, 2025. Price Target Changed • Dec 19
Price target increased by 13% to US$18.00 Up from US$16.00, the current price target is an average from 2 analysts. New target price is 24% above last closing price of US$14.50. Stock is up 8.5% over the past year. The company is forecast to post earnings per share of US$1.29 for next year compared to US$1.19 last year. Valuation Update With 7 Day Price Move • Nov 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$16.65, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Banks industry in the US. Total returns to shareholders of 14% over the past three years. Price Target Changed • Oct 29
Price target increased by 10% to US$16.00 Up from US$14.50, the current price target is an average from 2 analysts. New target price is 15% above last closing price of US$13.97. Stock is up 40% over the past year. The company is forecast to post earnings per share of US$1.31 for next year compared to US$1.19 last year. Declared Dividend • Oct 28
Third quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 12th November 2024 Payment date: 19th November 2024 Dividend yield will be 3.7%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 44% over the next year, which should provide support to the dividend and adequate earnings cover. New Risk • Oct 27
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Reported Earnings • Oct 25
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: US$0.43 (up from US$0.36 in 3Q 2023). Revenue: US$26.8m (up 6.2% from 3Q 2023). Net income: US$4.74m (up 18% from 3Q 2023). Profit margin: 18% (up from 16% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 9.5%. Earnings per share (EPS) also surpassed analyst estimates by 20%. Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Price Target Changed • Aug 28
Price target increased by 7.7% to US$14.00 Up from US$13.00, the current price target is an average from 2 analysts. New target price is 21% above last closing price of US$11.60. Stock is down 0.9% over the past year. The company is forecast to post earnings per share of US$1.25 for next year compared to US$1.19 last year. Declared Dividend • Jul 31
Second quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 12th August 2024 Payment date: 19th August 2024 Dividend yield will be 4.3%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 36% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 28
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: US$0.30 (down from US$0.42 in 2Q 2023). Revenue: US$23.4m (down 8.3% from 2Q 2023). Net income: US$3.33m (down 28% from 2Q 2023). Profit margin: 14% (down from 18% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) missed analyst estimates by 4.3%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Jul 27
Meridian Corporation Announces Quarterly Dividend, Payable on August 19, 2024 On July 25, 2024, the Board of Directors of Meridian Corporation declared a quarterly cash dividend of $0.125 per common share, payable August 19, 2024 to shareholders of record as of August 12, 2024. Declared Dividend • May 01
First quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 10th May 2024 Payment date: 20th May 2024 Dividend yield will be 5.7%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 19% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 23% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 28
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: EPS: US$0.24 (down from US$0.36 in 1Q 2023). Revenue: US$21.7m (down 5.2% from 1Q 2023). Net income: US$2.68m (down 33% from 1Q 2023). Profit margin: 12% (down from 18% in 1Q 2023). Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) missed analyst estimates by 1.4%. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Announcement • Apr 27
Meridian Corporation Announces Quarterly Dividend of $0.125 Per Common Share, Payable May 20, 2024 Meridian Corporation announced that on April 25, 2024, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable May 20, 2024 to shareholders of record as of May 13, 2024. New Risk • Apr 16
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$99.6m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (US$99.6m market cap). Announcement • Apr 16
Meridian Bank Announces Appointment of Patrick Hart as Senior Vice President, Commercial Lending Meridian Bank announced the appointment of Patrick Hart to the position of Senior Vice President, Commercial Lending. As part of the bank’s Chester County team, he’ll partner with commercial and industrial organizations throughout that community. Hart received his undergraduate degree in accounting from Drexel University, followed by an MBA in finance from Drexel. He has spent his entire 25-year banking career in the Greater Philadelphia region, serving with community banks and larger regional institutions. He brings expertise in both the credit and lending areas to his position at Meridian. Hart resides in Southern Chester County with his wife Claudine and two daughters, Juliana and Grace. Announcement • Apr 05
Meridian Corporation, Annual General Meeting, May 21, 2024 Meridian Corporation, Annual General Meeting, May 21, 2024, at 10:00 US Eastern Standard Time. Location: Corporate Headquarters, located at 9 Old Lincoln Highway Malvern, PA, 19355 Malvern Pennsylvania United States Agenda: To consider election of two directors as “Class A” directors of the Board, to serve a three-year term expiring in 2027; to consider A non-binding say-on-pay proposal to approve the compensation of the Corporation’s named executive officers; to consider The ratification of the appointment of Crowe LLP as the Corporation’s independent auditor for the fiscal year ending December 31, 2024; and to consider other business matters. Reported Earnings • Mar 19
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$1.19 (down from US$1.85 in FY 2022). Revenue: US$94.1m (down 14% from FY 2022). Net income: US$13.2m (down 39% from FY 2022). Profit margin: 14% (down from 20% in FY 2022). The decrease in margin was driven by lower revenue. Net interest margin (NIM): 3.35% (down from 3.98% in FY 2022). Non-performing loans: 1.79% (up from 1.22% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to US$9.68, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 10x in the Banks industry in the US. Negligible returns to shareholders over past three years. Upcoming Dividend • Feb 02
Upcoming dividend of US$0.13 per share at 4.4% yield Eligible shareholders must have bought the stock before 09 February 2024. Payment date: 20 February 2024. Trailing yield: 4.4%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.2%). Declared Dividend • Jan 31
Fourth quarter dividend of US$0.13 announced Shareholders will receive a dividend of US$0.13. Ex-date: 9th February 2024 Payment date: 20th February 2024 Dividend yield will be 4.1%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by earnings (42% payout ratio) and is expected to be well covered in 3 years' time (30% forecast payout ratio). The dividend has increased by an average of 19% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 37% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 28
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: US$1.19 (down from US$1.85 in FY 2022). Revenue: US$94.1m (down 14% from FY 2022). Net income: US$13.2m (down 39% from FY 2022). Profit margin: 14% (down from 20% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$12.69, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 10x in the Banks industry in the US. Total returns to shareholders of 57% over the past three years. Upcoming Dividend • Nov 03
Upcoming dividend of US$0.13 per share at 4.9% yield Eligible shareholders must have bought the stock before 10 November 2023. Payment date: 20 November 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 4.9%. Lower than top quartile of American dividend payers (5.3%). Higher than average of industry peers (4.0%). Price Target Changed • Nov 01
Price target decreased by 7.5% to US$12.33 Down from US$13.33, the current price target is an average from 3 analysts. New target price is 23% above last closing price of US$10.00. Stock is down 35% over the past year. The company is forecast to post earnings per share of US$1.41 for next year compared to US$1.85 last year. Reported Earnings • Oct 29
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: US$0.36 (down from US$0.49 in 3Q 2022). Revenue: US$25.2m (down 9.0% from 3Q 2022). Net income: US$4.01m (down 31% from 3Q 2022). Profit margin: 16% (down from 21% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.4%. Earnings per share (EPS) also missed analyst estimates by 7.1%. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Oct 14
Meridian Bank Announces Executive Changes Meridian Bank announced the retirement of Joseph Cafarchio, Chief Credit Officer, effective October 13, 2023. Mr. Cafarchio has served in the position since Meridian’s inception in 2004. Prior to joining Meridian, Joe had a long career in the Philadelphia-area banking community, including positions with National Penn Bank, Stonebridge Bank and the Philadelphia Federal Reserve, where he started his career after graduating from Wharton. Before entering the financial world, he pursued his other professional passion as a saxophonist in a nationally touring band. While at Meridian, Joe often combined these two areas of talent by breaking out his horn to the delight of all at Meridian employee and customer events. Mr. Cafarchio will be succeeded in his role as Chief Credit Officer by Andy Fox. Price Target Changed • Aug 04
Price target increased by 14% to US$13.33 Up from US$11.67, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$12.78. Stock is down 11% over the past year. The company is forecast to post earnings per share of US$1.53 for next year compared to US$1.85 last year. Upcoming Dividend • Aug 04
Upcoming dividend of US$0.13 per share at 4.0% yield Eligible shareholders must have bought the stock before 11 August 2023. Payment date: 21 August 2023. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (4.7%). Higher than average of industry peers (3.4%). Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2023 results: EPS: US$0.42 (down from US$0.49 in 2Q 2022). Revenue: US$25.5m (down 6.7% from 2Q 2022). Net income: US$4.65m (down 22% from 2Q 2022). Profit margin: 18% (down from 22% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) exceeded analyst estimates by 7.0%. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 4.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. New Risk • Jun 29
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.6% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Recent Insider Transactions • May 11
Independent Director recently bought US$86k worth of stock On the 9th of May, Robert Casciato bought around 10k shares on-market at roughly US$8.63 per share. This transaction amounted to 4.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$591k more in shares than they have sold in the last 12 months. Price Target Changed • May 06
Price target decreased by 17% to US$12.33 Down from US$14.83, the current price target is an average from 3 analysts. New target price is 43% above last closing price of US$8.60. Stock is down 46% over the past year. The company is forecast to post earnings per share of US$1.59 for next year compared to US$1.85 last year. Reported Earnings • May 03
First quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2023 results: EPS: US$0.36 (down from US$0.46 in 1Q 2022). Revenue: US$22.9m (down 20% from 1Q 2022). Net income: US$4.02m (down 27% from 1Q 2022). Profit margin: 18% (down from 19% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.8%. Earnings per share (EPS) exceeded analyst estimates by 5.2%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 2.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to US$9.47, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 8x in the Banks industry in the US. Total returns to shareholders of 59% over the past three years. Price Target Changed • Mar 27
Price target decreased by 7.4% to US$16.67 Down from US$18.00, the current price target is an average from 3 analysts. New target price is 26% above last closing price of US$13.20. Stock is down 19% over the past year. The company is forecast to post earnings per share of US$1.80 for next year compared to US$1.85 last year. Reported Earnings • Mar 20
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: US$3.70 (down from US$5.91 in FY 2021). Revenue: US$109.4m (down 27% from FY 2021). Net income: US$21.8m (down 39% from FY 2021). Profit margin: 20% (down from 24% in FY 2021). The decrease in margin was driven by lower revenue. Net interest margin (NIM): 3.98% (up from 3.77% in FY 2021). Non-performing loans: 1.22% (down from 1.66% in FY 2021). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 28% per year. Recent Insider Transactions • Mar 19
Independent Director recently bought US$82k worth of stock On the 15th of March, Robert Casciato bought around 3k shares on-market at roughly US$27.19 per share. This transaction amounted to 3.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$377k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Mar 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$26.75, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 8x in the Banks industry in the US. Total returns to shareholders of 143% over the past three years. Recent Insider Transactions Derivative • Mar 08
Executive VP exercised options to buy US$95k worth of stock. On the 6th of March, Denise Lindsay exercised options to buy 3k shares at a strike price of around US$17.01, costing a total of US$51k. This transaction amounted to 9.2% of their direct individual holding at the time of the trade. Since June 2022, Denise has owned 60.85k shares directly. Company insiders have collectively bought US$540k more than they sold, via options and on-market transactions, in the last 12 months.