Overview

* Meridian Corp ( MRBK ) Q3 net income rises 19% qtr/qtr to $6.7 mln

* The bank holding firm's net interest margin improves to 3.77% in Q3

* Company declares $0.125 per share quarterly dividend

Outlook

* Meridian to capitalize on market acquisitions and reduced competition

* Company faces challenges with elevated non-performing loans

* Meridian sees strong loan growth in commercial and real estate segments

Result Drivers

* NET INTEREST MARGIN - Improved to 3.77% in Q3, contributing to higher net income

* LOAN GROWTH - Strong growth in commercial and real estate loans offset SBA loan sales and lease paydowns

* NON-INTEREST INCOME DECLINE - Decrease driven by lower SBA loan income and gains on sale of mortgage servicing rights

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $11.50

Revenue mln

Q3 EPS $0.58

Q3 $0.12

Dividend

Q3 Net 3.77%

Interest

Margin

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 ( MRBK ) is $19.00, about 22.7% above its October 21 closing price of $14.68

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)