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Segments
 12 Months Ended
Dec. 31, 2020
Segments  
Segments

(22)Segments

ASC Topic 280 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations.

Our Banking segment (“Bank”) consists of commercial and retail banking. The Banking segment generates interest income from its lending (including leasing) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale of available for sale investment securities, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income.

Meridian Wealth (“Wealth”), a registered investment advisor and wholly-owned subsidiary of the Bank, provides a comprehensive array of wealth management services and products and the trusted guidance to help its clients and our banking customers prepare for the future. The unit generates non-interest income through advisory fees.

Meridian’s mortgage banking segment (“Mortgage”) consists of one central loan production facility and several retail and profit sharing loan production offices located throughout suburban Philadelphia and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale.  The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and related net hedging gains (losses).

The table below summarizes income and expenses, directly attributable to each business line, which has been included in the statement of operations.

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Year Ended December 31, 2020

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Year Ended December 31, 2019

(Dollars in thousands)

    

Bank

    

Wealth

    

Mortgage

    

Total

    

Bank

    

Wealth

    

Mortgage

    

Total

Net interest income

​

$

46,997

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(48)

​

2,047

​

48,996

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$

36,019

​

65

​

252

​

36,336

Provision for loan losses

​

​

8,302

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—

​

—

​

8,302

​

​

901

​

—

​

—

​

901

Net interest income after provision

​

​

38,695

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(48)

​

2,047

​

40,694

​

​

35,118

​

65

​

252

​

35,435

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​

​

​

​

​

​

​

​

​

​

​

Non-interest Income

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mortgage banking income

​

​

1,632

​

—

​

74,829

​

76,461

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​

268

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—

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25,741

​

26,009

Wealth management income

​

​

—

​

3,854

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—

​

3,854

​

​

92

​

3,532

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—

​

3,624

SBA income

​

​

2,572

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—

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—

​

2,572

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​

1,401

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—

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—

​

1,401

Net change in fair values

​

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(40)

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—

​

9,185

​

9,145

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(29)

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—

​

518

​

489

Net (loss) on hedging activity

​

​

—

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—

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(9,400)

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(9,400)

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​

(21)

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—

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(795)

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(816)

Other

​

​

3,524

​

14

​

748

​

4,286

​

​

1,835

​

—

​

351

​

2,186

Non-interest income

​

​

7,688

​

3,868

​

75,362

​

86,918

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​

3,546

​

3,532

​

25,815

​

32,893

Non-interest expense

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​

33,351

​

3,213

​

56,512

​

93,076

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​

27,884

​

3,266

​

23,664

​

54,814

Income before income taxes

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$

13,032

​

607

​

20,897

​

34,536

​

$

10,780

​

331

​

2,403

​

13,514

Total Assets

​

$

1,488,312

​

5,479

​

226,406

​

1,720,197

​

$

1,112,862

​

5,234

​

31,923

​

1,150,019

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