Meridian Corporation: Still A Buy Despite A Downward Revision Of Earnings

Summary

• The apparent weakness in the housing market will keep mortgage banking income low.
• I’ve reduced my EPS estimate because I’ve slashed my mortgage banking income estimate.
• The net interest margin will likely continue to expand, as asset yields will likely be stickier than funding costs. Further, a sizable balance of CDs will roll over soon.
• I’m maintaining a buy rating because of a 7.8% expected price upside and 3.8% dividend yield.

courtneyk

I’m reducing my mortgage banking income estimate for Meridian Corporation (NASDAQ:MRBK) amid a weak housing market. As a result, I’m now expecting the company to report an EPS of $1.43 for 2025, down from my previous estimate of $1.67 given in my

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.