Meridian Corp (MRBK) Stock Forecast & Price Target

Meridian Corp is positioned for a positive financial outlook, with Wealth Management revenue projected to grow by 7-8% year-over-year in 2026, supported by recent staffing additions and expected future hires. The bank reported a notable increase in pre-provision net revenue (PPNR), rising 7.0% to $12.2 million, alongside a solid loan growth of 2.2% quarter-over-quarter, resulting in net interest income (NII) growth, which exceeded expectations. Furthermore, the company anticipates a gradual increase in net interest margin (NIM) driven by declining deposit costs and a strategic shift toward higher-yield commercial and industrial loans, suggesting robust future profitability.

Meridian Corp's financial outlook remains concerning due to ongoing elevated losses in its Leasing and SBA portfolio, which have contributed to a weakening credit quality. Despite a stable net interest margin (NIM) of 3.77%, the bank's projected earnings per share (EPS) estimates have been revised downward for both 2026 and 2027, indicating a lack of growth momentum. Additionally, the anticipated moderation in SBA income and the potential impact of external factors, including a general reduction in bank stock performance and mortgage banking trends, further exacerbate the company's financial uncertainties.