Meridian's Q1 net income falls 34% from prior quarter on higher credit costs

Meridian Corporation

Meridian Corporation

MRBK

0.00


Overview

  • U.S. community bank's Q1 net income fell 34% from prior qtr, nearly doubled yr/yr

  • Q1 pre-provision net revenue rose 21% yr/yr; net interest margin improved to 3.82%

  • Quarterly results impacted by lower non-interest income and higher credit costs


Outlook

  • Meridian expects SBA loan sale income to rebound towards year end


Result Drivers

  • NET INTEREST MARGIN - Margin improved to 3.82% due to deposit repricing and repositioning in the deposit base

  • NON-INTEREST INCOME DECLINE - Lower mortgage banking and SBA loan sale income reduced non-interest income

  • ELEVATED CREDIT COSTS - Higher charge-offs in SBA and leasing portfolios drove increased provision for credit losses


Company press release: ID:nGNX1qvTJ2


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Pre-provision net revenue

$10.10 mln

Q1 EPS

$0.39

Q1 Dividend

$0.14

Q1 Net Interest Margin

3.82%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for Meridian Corp is $22.00, about 8.9% above its April 22 closing price of $20.20

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


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