Meridian (MRBK) 10-K 1 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 29, 2019	Jun. 30, 2018
Document And Entity Information Abstract
Entity Registrant Name	Meridian Corp
Entity Central Index Key	0001750735
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 109,936,427
Entity Common Stock, Shares Outstanding		6,406,795
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Cash and due from banks	$ 23,159	$ 24,893
Federal funds sold	793	10,613
Cash and cash equivalents	23,952	35,506
Securities available-for-sale (amortized cost of $50,942 and $40,393 as of December 31, 2018 and December 31, 2017)	50,428	40,006
Securities held-to-maturity (fair value of $12,655 and $12,869 as of December 31, 2018 and December 31, 2017)	12,741	12,861
Mortgage loans held for sale (amortized cost of $33,934 and $34,673 as of December 31, 2018 and December 31, 2017)	37,695	35,024
Loans, net of fees and costs (includes $11,422 and $9,972 of loans at fair value, amortized cost of $11,466 and $9,788 as of December 31, 2018 and December 31, 2017)	838,106	694,637
Allowance for loan and lease losses	(8,053)	(6,709)
Loans, net of the allowance for loan and lease losses	830,053	687,928
Restricted investment in bank stock	7,002	6,814
Bank premises and equipment, net	9,638	9,741
Bank owned life insurance	11,569	11,269
Accrued interest receivable	2,889	2,536
Other real estate owned	0	437
Deferred income taxes	1,636	1,312
Goodwill and intangible assets	5,046	5,495
Other assets	4,739	7,106
Total assets	997,388	856,035
Deposits:
Noninterest bearing	126,150	100,454
Interest-bearing	625,980	526,655
Total deposits	752,130	627,109
Short-term borrowings	114,300	99,750
Long-term debt	6,238	8,863
Subordinated debentures	9,239	13,308
Accrued interest payable	305	216
Other liabilities	5,309	5,426
Total liabilities	887,521	754,672
Stockholders’ equity:
Preferred stock, no stated par value. Authorized 5,000,000 shares; No shares outstanding in 2018 and 2017.
Common stock, $1 par value. Authorized 10,000,000 shares; issued and outstanding 6,406,795 and 6,392,287 as of December 31, 2018 and December 31, 2017	6,407	6,392
Surplus	79,919	79,501
Retained earnings	23,931	15,768
Accumulated other comprehensive loss	(390)	(298)
Total stockholders’ equity	109,867	101,363
Total liabilities and stockholders’ equity	$ 997,388	$ 856,035

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Available-for-sale, Amortized Cost	$ 50,942	$ 40,393
Securities held-to-maturity	12,655	12,869
Mortgage loans held for sale, amortized cost	37,337	34,673
Loans receivable, net	11,422	10,157
Loans at amortized cost	$ 11,466	$ 9,972
Preferred stock, no par value	$ 0	$ 0
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 1	$ 1
Common stock, Authorized shares	10,000,000	10,000,000
Common Stock, Shares, Issued	6,406,795	6,406,795
Common Stock, Shares, Outstanding	6,392,287	6,392,287

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Interest income:
Loans, including fees	$ 42,694	$ 34,667
Securities:
Taxable	797	519
Tax-exempt	451	453
Cash and cash equivalents	122	81
Total interest income	44,064	35,720
Interest expense:
Deposits	9,227	4,627
Borrowings	2,180	2,155
Total interest expense	11,407	6,782
Net interest income	32,657	28,938
Provision for loan losses	1,577	2,161
Net interest income after provision for loan losses	31,080	26,777
Non-interest Income
Mortgage banking income	26,187	32,836
Wealth management income	3,917	2,872
Earnings on investment in life insurance	300	276
Net change in the fair value of derivative instruments	(161)	(427)
Net change in the fair value of loans held-for-sale	7	41
Net change in the fair value of loans held-for-investment	(214)	73
Gain on sale of investment securities available-for-sale		26
Service charges	115	87
Other	2,204	916
Total non-interest income	32,355	36,700
Non-interest Expense
Salaries and employee benefits	34,794	39,126
Occupancy and equipment	3,779	3,799
Loan expenses	2,643	4,025
Professional fees	2,162	2,125
Advertising and promotion	2,355	2,248
Data processing	1,261	1,162
Information technology	1,107	1,077
Communications	886	942
Other	3,958	3,187
Total non-interest expenses	52,945	57,691
Income before income taxes	10,490	5,786
Income tax expense	2,327	2,754
Net income	8,163	3,032
Dividends on preferred stock		(1,167)
Net income for common stockholders	$ 8,163	$ 1,865
Basic earnings per common share	$ 1.28	$ 0.50
Diluted earnings per common share	$ 1.27	$ 0.49

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income:	$ 8,163	$ 3,032
Net change in unrealized gains on investment securities available for sale:
Net unrealized (losses) gains arising during the period, net of tax (benefit) expense of ($47), ($19), ($141) and $147, respectively	(92)	76
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $0, $0, $0, and $1, respectively		(17)
Unrealized investment gains (losses), net of tax expense (benefit) of ($47), ($19), ($141) and $148, respectively	(92)	59
Total other comprehensive income	(92)	59
Total comprehensive income	$ 8,071	$ 3,091

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Tax (benefit) expense on unrealized (losses) gains arising during the period	$ (37)	$ 40
Tax expense on reclassification adjustment for net gains on sales realized in net income	0	(9)
Tax (benefit) expense on unrealized investment gains (losses)	$ (37)	$ 31

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Preferred Stock	Common stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (loss)	Total
Balance beginning of the period at Dec. 31, 2016	$ 12,845	$ 3,685	$ 39,887	$ 13,854	$ (308)	$ 69,963
Comprehensive income:
Net income				3,032		3,032
Adjustments due to adoption of ASU 2018-02				49	(49)
Change in unrealized gains on securities available-for-sale, net of tax					59	59
Total comprehensive income						3,091
Preferred stock repurchases	$ (12,845)					(12,845)
Dividends, Preferred Stock, Total				(1,167)		(1,167)
Issuance of common stock		2,706	39,402			42,108
Share-based awards and exercises		1	9			10
Compensation expense related to stock option grants			203			203
Balance ending of the period at Dec. 31, 2017		6,392	79,501	15,768	(298)	101,363
Comprehensive income:
Net income				8,163		8,163
Change in unrealized gains on securities available-for-sale, net of tax					(92)	(92)
Total comprehensive income						8,071
Share-based awards and exercises		15	125			140
Compensation expense related to stock option grants			293			293
Balance ending of the period at Dec. 31, 2018		$ 6,407	$ 79,919	$ 23,931	$ (390)	$ 109,867

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	$ 8,163	$ 3,032
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of investment securities		(26)
Depreciation and amortization	1,422	963
Provision for loan losses	1,577	2,161
Compensation expense for stock options	293	203
Net change in fair value of loans held for sale	(7)	(41)
Net change in fair value of derivative instruments	161	427
Net change in fair value of contingent assets	177
Gain on sale of OREO	(57)
Proceeds from sale of loans	660,344	726,147
Loans originated for sale	(633,219)	(688,721)
Mortgage banking income	(26,187)	(32,836)
Increase in accrued interest receivable	(353)	(413)
Increase in other assets	(402)	(792)
Earnings from investment in life insurance	(300)	(276)
Deferred income tax benefit	(293)	(66)
Increase in accrued interest payable	89	22
(Decrease) Increase in other liabilities	(378)	695
Net cash provided by operating activities	11,030	10,479
Activity in available-for-sale securities:
Maturities, repayments and calls	6,070	4,073
Sales		1,115
Purchases	(17,094)	(12,597)
Activity in held-to-maturity securities:
Maturities, repayments and calls		1,541
Proceeds from sale of OREO	494	58
Settlement of forward contracts	109	452
Acquisition of wealth management company		(3,225)
(Decrease) increase in restricted stock	(188)	541
Net increase in loans	(146,119)	(93,190)
Purchases of premises and equipment	(1,639)	(2,410)
Proceeds from settlement of loans	2,766
Purchase of bank owned life insurance		(5,999)
Net cash used in investing activities	(155,601)	(109,641)
Cash flows from financing activities:
Net increase in deposits	125,021	99,973
Increase (decrease) in short term borrowings	12,750	(11,803)
Repayments of long term debt (FHLB advances)		(162)
Repayment of long term debt (Acquisition note)	(825)	(250)
Repayment of long term debt (subordinated debt)	(4,069)	(68)
Issuance of common stock		42,108
Share based awards and exercises	140	10
Redemption of preferred stock		(12,845)
Dividends paid on preferred stock		(1,167)
Net cash provided by financing activities	133,017	115,796
Net change in cash and cash equivalents	(11,554)	16,634
Cash and cash equivalents at beginning of period	35,506	18,872
Cash and cash equivalents at end of period	23,952	35,506
Supplemental disclosure of cash flow information:
Interest	11,318	6,760
Income taxes	$ 2,735	2,754
Supplemental disclosure of cash flow information:
Transfers from loans and leases to real estate owned		(495)
Acquisition note payable		2,475
Net loan assets purchased, not settled		$ 2,766

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(1) Summary of (a) Nature of Operations Meridian Corporation (the “Corporation”) was incorporated on June 8, 2009, by and at the direction of the board of directors of Meridian Bank (the “Bank”) for the sole purpose of acquiring the Bank and serving as the Bank’s parent bank holding company. On August 24, 2018, the Corporation acquired the Bank in a merger and reorganization effected under Pennsylvania law and in accordance with the terms of a Plan of Merger and Reorganization dated April 26, 2018 (the “Agreement”). Pursuant to the Agreement, on August 24, 2018 at 5:00 p.m. all of the outstanding shares of the Bank’s $1.00 par value common stock formerly held by its shareholders was converted into and exchanged for one newly issued share of the Corporation’s par value common stock, and the Bank became a subsidiary of the Corporation. Because the Bank and the Corporation were entities under common control, this exchange of shares between entities under common control resulted in the retrospective combination of the Bank and the Corporation for all periods presented as if the combination had been in effect since inception of common control. As the Corporation had no assets, liabilities, revenues, expenses or operations prior to August 24, 2018, the historical financial statements of the Bank are the historical financial statements of the combined entity. The Corporation operates in a highly competitive market area that includes local, national and regional banks as competitors along with savings banks, credit unions, insurance companies, trust companies and registered investment advisors. The Corporation and its subsidiaries are regulated by many regulatory agencies including the Securities and Exchange Commission (“SEC”), Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve and the Pennsylvania Department of Banking. The Bank was incorporated on March 16, 2004 under the laws of the Commonwealth of Pennsylvania and is a Pennsylvania state-chartered bank. The Bank commenced operations on July 8, 2004 and is a full-service bank providing personal and business lending and deposit services through 6 full-service banking offices in Pennsylvania and 13 mortgage loan production offices throughout the Delaware Valley. The Bank and Corporation are headquartered in Malvern, Pennsylvania, located in the western suburbs of Philadelphia and serves southeastern Pennsylvania and the rest of the Delaware Valley. (b) Basis of Presentation The accounting policies of the Corporation conform to U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include accounts of the Corporation and its wholly owned subsidiary, the Bank, and the wholly owned subsidiaries of the Bank: APEX Realty LLC; Meridian Wealth Partners LLC; and Meridian Land Settlement Services LLC. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Amounts subject to significant estimates are items such as the allowance for loan and lease losses and lending related commitments, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill and intangible assets. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2019, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Certain prior year amounts have been reclassified to conform to the current year’s presentation. (c) Significant Concentrations of Credit Risk Most of the Corporation’s activities are with customers located within the tri-state area of Pennsylvania, Delaware and New Jersey. Footnote 5 discusses the types of securities that the Corporation invests in. Footnote 6 discusses types of lending that the Corporation engages in. Although the Corporation has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. The Corporation does not have any significant concentrations to any one industry or customer, however there is significant concentration of commercial real estate-backed loans, amounting to 37% and 36% of total loans held for investment, as of December 31, 2018 and December 31, 2017, respectively. (d) Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased or sold for one day periods. Cash balances required to meet regulatory reserve requirements of the Federal Reserve Board amounted to $1.5 million at December 31, 2018. (e) Securities Management determines the appropriate classification of debt securities at the time of purchase and re‑evaluates such designation as of each balance sheet date. Securities classified as available‑for‑sale are those securities that the Corporation intends to hold for an indefinite period of time but not necessarily to maturity. Securities available‑for‑sale are carried at fair value. Any decision to sell a security classified as available‑for‑sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Corporation’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Securities classified as held to maturity are those debt securities the Corporation has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed on a level yield basis. The Corporation’s accounting policy specifies that (a) if the Corporation does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other‑than‑temporarily impaired, unless there is a credit loss. When the Corporation does not intend to sell the security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other‑than‑temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Corporation did not recognize any other‑than‑temporary impairment charges during the years ended December 31, 2018 and 2017. (f) Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Corporation generally amortizes these amounts over the contractual life of the loan. Loans that were originated by the Corporation and intended for sale in the secondary market to permanent investors, but were either repurchased or unsalable due to defect, are held for the foreseeable future or until maturity or payoff, but are carried at fair value. The accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and charged against current year income. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. (g) Allowance for Loan and Lease Losses The allowance for loan and lease losses (“ALLL” or “Allowance”) is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the Allowance, and subsequent recoveries, if any, are credited to the Allowance. All, or part, of the principal balance of loans receivable are charged off to the Allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Charge-offs for retail consumer loans are generally made for any balance not adequately secured after 120 cumulative days past due. The Allowance is maintained at a level considered adequate to provide for losses that are probable and estimable. Management’s periodic evaluation of the adequacy of the Allowance is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s Allowance and may require the Corporation to recognize additions to the Allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The Allowance consists of general and specific components. The general component covers non-classified loans, as well as, non-impaired classified loans and is based on historical loss experience adjusted for qualitative factors. The specific component relates to loans that are classified as doubtful, substandard, and are on non-accrual and have been deemed impaired. Loan classifications are determined based on various assessments such as the borrower’s overall financial condition, payment history, repayment sources, guarantors and value of collateral. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case‑by‑case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. For commercial and construction loans, impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral adjusted for cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous residential mortgage and consumer loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual loans of this nature for impairment disclosures, unless such loans are troubled and the subject of a restructuring agreement. Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. No portion of the Allowance is restricted to any individual loan or groups of loans, and the entire Allowance is available to absorb any and all loan losses. (h) Mortgage Banking Activities and Mortgage Loans Held for Sale The Corporation’s mortgage banking division operates 1 3 offices in the tri-state area of Pennsylvania, Delaware and New Jersey. The mortgage banking division originates FHA insured and conventional mortgages and sells these loans to various investors in the secondary market. Mortgage loans originated by the Corporation and intended for sale in the secondary market to permanent investors are carried at fair value and are classified as mortgage loans held for sale on the balance sheet. Gains and losses on loan sales are recorded in mortgage banking income. The Corporation enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Corporation protects itself from changes in interest rates through the use of best efforts forward sale contracts, whereby the Corporation commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. The Corporation also commits to loan sales through a mandatory sales channel which are economically hedged by the future sale of mortgage-backed securities to third-party counterparties to mitigate the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. By entering into best efforts commitments and economically hedging the mandatory commitments, the Corporation limits its exposure to loss and its realization of significant gains related to its rate lock commitments due to changes in interest rates. The Corporation utilizes a third-party model which determines the fair value of rate lock commitments and forward sale contracts by using investor quotes while taking into consideration the probability that the rate lock commitments will close. Net derivative assets and liabilities are recorded within other assets or other liabilities, respectively, on the consolidated balance sheets, with changes in fair value during the period recorded within net change in the fair value of derivative instruments on the consolidated statements of income. (i) Mortgage Servicing The Corporation sells substantially all of the residential mortgage loans we originate to third parties; however, the Corporation may retain the servicing rights related to some of these loans. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received in return for these services. Gains on the sale of these loans are based on the specific identification method. (j) Other real estate owned (OREO) is comprised of property acquired through a foreclosure proceeding or acceptance of a deed‑in‑lieu of foreclosure. The Corporation acquires OREO through the wholly owned subsidiary of the Bank, Apex Realty. OREO is recorded at the lower of cost or fair value, or the loan amount net of estimated selling costs, at the date of foreclosure. The cost basis of OREO is its recorded value at the time of acquisition. After acquisition, valuations are periodically performed by management and subsequent changes in the valuation allowance are charged to OREO expense. Revenues, such as rental income, and holding expenses are included in other income and other expenses, respectively. The Corporation had $0 and $437 thousand of OREO at December 31, 2018 and 2017, respectively. (k) Restricted Investment in Bank Stock Restricted bank stock is principally comprised of stock in the Federal Home Loan Bank of Pittsburgh (FHLB). Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. As of December 31, 2018, and 2017, the Corporation had an investment of $6.9 million and $6.8 million, respectively, related to the FHLB stock. Also included in restricted stock is Atlantic Central Bankers Bank (primary correspondent bank) stock in the amount of $50 thousand as of December 31, 2018 and 2017. All restricted stock is carried at cost. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB restricted stock as of December 31, 2018 or 2017. (l) Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. (m) Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. The costs of maintenance and repairs are expensed as incurred; while major replacements, improvements and additions are capitalized. Depreciation expense is computed on the straight‑line method over the estimated useful lives of the related assets or, for leasehold improvements, over the effective life of the related lease if less than the estimated useful life. (n) Advertising Costs The Corporation follows the policy of charging the costs of advertising to expense as incurred. (o) Employee Benefit Plans The Corporation has a 401(k) Plan (the Plan) and an Employee Stock Ownership Plan (ESOP). All employees are eligible to participate in the Plan and ESOP after they have attained the age of 21 and have also completed 3 consecutive months of service. Employees must participate in the Plan to be eligible for participation in the ESOP. The employees may contribute to the Plan up to the maximum percentage allowable by law of their compensation. The Corporation may make a discretionary matching contribution to the Plan and the ESOP. Full vesting in the Corporation’s contribution to the Plan and ESOP is over a three‑year period. The Corporation’s contribution to the Plan and ESOP was $577 thousand and $332 thousand, respectively for the year ended December 31, 2018 and $661 thousand and $330 thousand, respectively for the year ended December 31, 2017. During the year ended December 31, 2018, no shares were purchased by the ESOP, while for the year ended December 31, 2017, 4,462 shares were purchased by the ESOP at an average market value of $17.50. Shares in the ESOP that are committed to be released to employees are treated as outstanding shares in the Corporation’s computation of earnings per share. There were 36,619 shares in the ESOP as of December 31, 2018. Shares in the ESOP would be impacted by any stock dividends and stock splits in the same manner as all other outstanding common shares of the Corporation. (p) Income Taxes Deferred income taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating losses and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and net operating loss carry-forwards and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Corporation follows accounting guidance related to accounting for uncertainty in income taxes. Under the “more likely than not” threshold guidelines, the Corporation believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2018, and 2017, the Corporation had no material unrecognized tax benefits or accrued interest and penalties. The Corporation’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Corporation is no longer subject to examination by federal, state and local taxing authorities for years before January 1, 2015. (q) Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share‑based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share‑based compensation arrangements including stock options and restricted share plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded‑vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. A Black‑Scholes model is used to estimate the fair value of stock options, while the market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. (r) Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available‑for‑sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. The components of other comprehensive income (loss) for the years ended December 31, 2018 and 2017 consist of unrealized holding gains and (losses) arising during the year on available‑for‑sale securities. (s) Off‑Balance Sheet Financial Instruments In the ordinary course of business, the Corporation has entered into off‑balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the balance sheet when they are funded. (t) Derivative Financial Instruments The Corporation recognizes all derivative financial instruments related to its mortgage banking activities on its balance sheet at fair value. The Corporation utilizes investor quotes to determine the fair value of interest rate lock commitment derivatives and market pricing to determine the fair value of forward security purchase commitment derivatives. All changes in fair value of derivative instruments are recognized in earnings. The Corporation enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. The interest rate swaps are recognized on the Corporation’s balance sheet at fair value. Under these agreements, the Corporation originates variable-rate loans with customers in addition to interest rate swap agreements, which serve to effectively swap the customers’ variable-rate loans into fixed-rate loans. The Corporation then enters into corresponding swap agreements with swap dealer counterparties to economically hedge its exposure on the variable and fixed components of the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820. (u) Initial Public Offering The Corporation’s initial public offering closed on November 7, 2017 and a total of 2,352,941 shares of common stock were sold at $17.00 per share. The Corporation received gross proceeds of $40.0 million for the shares of common stock sold in the offering. On November 10, 2017 the underwriters associated with the initial public offering exercised their option to purchase additional shares of common stock. The Bank received additional gross proceeds of $6.0 million for the 352,941 shares of common stock sold from the exercise of the underwriters’ option. Total proceeds, net of issuance costs, amounted to $42.1 million. Following completion of the public offering, the Corporation became a publicly traded bank with the common stock listed on The NASDAQ Global Select Market under the symbol “MRBK”.

Earnings per Common Share

Earnings per Common Share	12 Months Ended
	Dec. 31, 2018
Earnings per Common Share
Earnings per Common Share	(2) Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution computed pursuant to the treasury stock method that could occur if stock options were exercised and converted into common stock. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive. All weighted average shares, actual shares and per share information in the financial statements have been adjusted retroactively for the effect of stock dividends and splits. Year Ended December 31, (dollars in thousands, except per share data) 2018 2017 Numerator: Net income available to common stockholders $ 8,163 1,865 Denominator for basic earnings per share - weighted average shares outstanding 6,397 3,743 Effect of dilutive common shares 30 27 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,427 3,770 Basic earnings per share $ 1.28 0.50 Diluted earnings per share $ 1.27 0.49 Antidilutive shares excluded from computation of average dilutive earnings per share 126 50

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2018
Business Combinations
Business Combinations	(3) HJ Wealth Management, LLC (“HJ Wealth”) The acquisition of HJ Wealth, a Pennsylvania-based wealth management firm, was completed on April 5, 2017. Immediately after the acquisition, HJ Wealth was merged into a new single member LLC, Meridian Wealth Partners, LLC. The consideration paid by the Corporation was $5.7 million, of which $3.2 million was paid at closing, with a note payable of $2.5 million bearing interest at 3%. Interest and principal payments are due quarterly through April 1, 2020. The note payable may be reduced if certain contractual considerations are not met. The cost of the acquisition was $114 thousand for professional fees, which were expensed. The acquisition enhanced the Corporation’s ability to offer comprehensive wealth management and fiduciary services to clients and the goodwill is related to expected synergies between the respective customer bases. In connection with the HJ Wealth acquisition, the following table details the consideration paid, the fair value of identifiable assets acquired as of the date of acquisition and the resulting goodwill recorded: (dollars in thousands) Consideration Paid: Cash paid at closing $ 3,025 Purchaser note 2,475 Seller fees paid by buyer 200 Value of consideration 5,700 Assets acquired: Intangible assets - trade name 266 Intangible assets - customer relationships 4,083 Intangible assets - non competition agreements 275 Contingent asset 177 Total assets 4,801 Goodwill resulting from acquisition of HJ Wealth $ 899 No liabilities were assumed in connection with the HJ Wealth acquisition. All goodwill associated with the acquisition of HJ Wealth is included in the Wealth segment in footnote 22 to the consolidated financial statements. The contingent asset was established to represent the potential reduction of the acquisition note payable that could have been required if the revenue target of HJ Wealth over the first 18 months after acquisition was not met.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	12 Months Ended
	Dec. 31, 2018
Goodwill and Other Intangibles
Goodwill and Other Intangibles	(4) The Corporation’s goodwill and intangible assets related to the acquisition of HJ Wealth, LLC in April 2017 are detailed below: Balance Balance Amortization December 31, Amortization Fair Value December 31, Period (dollars in thousands) 2017 Expense Adjustment 2018 (in years) Goodwill - Wealth $ 899 — — 899 Indefinite Total Goodwill 899 — — 899 Intangible assets - trade name 266 — — 266 Indefinite Intangible assets - customer relationships 3,930 (203) — 3,727 20 Intangible assets - non competition agreements 223 (69) — 154 4 Contingent asset 177 (177) — N/A Total Intangible Assets 4,596 (272) (177) 4,147 Total $ 5,495 (272) (177) 5,046 Accumulated amortization on intangible assets was $477 thousand and $205 thousand as of December 31, 2018 and 2017, respectively. The contingent asset was marked to fair value on a quarterly basis for 18 months after the closing date. During the third quarter of 2018 the fair value of the contingent asset was marked to $0 as we determined it no longer had value due to the revenue earned in the 18 months following the acquisition of HJ Wealth exceeding the target discussed above in footnote 3. In accordance with ASC Topic 350, the Corporation performed a qualitative assessment of goodwill and identifiable intangible assets as of December 31, 2018 and determined it was more likely than not that the fair value of the Corporation, including the wealth reporting unit where the goodwill and identifiable intangible assets are held, was more than its carrying amount. Future schedule of amortization (in thousands): 2019 $ 273 2020 273 2021 221 2022 204 2023 204 Thereafter 2,706 $ 3,881

Securities

Securities	12 Months Ended
	Dec. 31, 2018
Securities
Securities	(5) The amortized cost and approximate fair value of securities as of December 31, 2018 and 2017 are as follows: December 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. government agency mortgage-backed securities $ 24,092 45 (271) 23,866 U.S. government agency collateralized mortgage obligations 14,754 52 (142) 14,664 State and municipal securities 11,096 22 (199) 10,919 Investments in mutual funds 1,000 — (21) 979 Total securities available-for-sale $ 50,942 119 (633) 50,428 Securities held to maturity: U.S. Treasuries $ 1,991 — (13) 1,978 State and municipal securities 10,750 17 (90) 10,677 Total securities held-to-maturity $ 12,741 17 (103) 12,655 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. government agency mortgage-backed securities $ 21,439 19 (190) 21,268 U.S. government agency collateralized mortgage obligations 7,875 2 (99) 7,778 State and municipal securities 10,079 14 (134) 9,959 Investments in mutual funds 1,000 1 — 1,001 Total securities available-for-sale $ 40,393 36 (423) 40,006 Securities held to maturity: U.S. Treasuries $ 1,978 — (8) 1,970 State and municipal securities 10,883 86 (70) 10,899 Total securities held-to-maturity $ 12,861 86 (78) 12,869 At December 31, 2018, the Corporation had two U.S. Treasuries, twenty-four U.S. Government sponsored agency mortgage‑backed securities, twelve U.S. Government sponsored agency collateralized mortgage obligations, twenty-six State and municipal securities, and one mutual fund in unrealized loss positions. At December 31, 2017, the Corporation had thirteen U.S. Government agency securities, two U.S. Government sponsored agency collateralized mortgage obligations and fourteen State and municipal securities in unrealized loss positions. As of December 31, 2018, the temporary impairment is primarily the result of changes in market interest rates subsequent to purchase and the Corporation did not intend to sell these securities prior to recovery and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities are deemed to be other‑than‑temporarily impaired. As of December 31, 2018 and 2017, securities having a fair value of $20.6 million and $22.6 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at December 31, 2018 and 2017: December 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses Securities available-for-sale: U.S. government agency mortgage-backed securities $ 2,354 (6) 15,223 (265) 17,577 (271) U.S. government agency collateralized mortgage obligations 2,636 (14) 5,620 (128) 8,256 (142) State and municipal securities 957 (11) 8,746 (188) 9,703 (199) Investments in mutual funds 980 (21) — — 980 (21) Total securities available-for-sale $ 6,927 (52) 29,589 (581) 36,516 (633) Securities held-to-maturity: U.S. Treasuries $ — — 1,978 (13) 1,978 (13) State and municipal securities 1,545 (5) 4,783 (85) 6,328 (90) Total securities held-to-maturity $ 1,545 (5) 6,761 (98) 8,306 (103) December 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses Securities available-for-sale: U.S. government agency mortgage-backed securities $ 9,788 (28) 7,854 (162) 17,642 (190) U.S. government agency collateralized mortgage obligations 6,732 (81) 860 (18) 7,592 (99) State and municipal securities 6,147 (57) 2,818 (77) 8,965 (134) Total securities available-for-sale $ 22,667 (166) 11,532 (257) 34,199 (423) Securities held-to-maturity: U.S. Treasuries $ 1,962 (8) — — 1,962 (8) State and municipal securities 4,851 (70) — — 4,851 (70) Total securities held-to-maturity $ 6,813 (78) — — 6,813 (78) The amortized cost and carrying value of securities at December 31, 2018 and 2017 are shown below by contractual maturities. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. December 31, 2018 December 31, 2017 Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Amortized Fair Amortized Fair (dollars in thousands) cost value cost value cost value cost value Investment securities: Due in one year or less $ 906 902 1,991 1,978 $ — — — — Due after one year through five years 1,236 1,226 3,154 3,148 2,206 2,189 3,803 3,791 Due after five years through ten years 6,411 6,290 7,596 7,529 3,500 3,436 7,180 7,156 Due after ten years 2,543 2,501 — — 4,374 4,333 1,878 1,922 Subtotal 11,096 10,919 12,741 12,655 10,080 9,958 12,861 12,869 Mortgage-related securities 38,846 38,530 — — 29,313 29,047 — — Mutual funds with no stated maturity 1,000 979 — — 1,000 1,001 — — Total $ 50,942 50,428 12,741 12,655 $ 40,393 40,006 12,861 12,869

Allowance for Loan and Lease Lo

Allowance for Loan and Lease Losses (the Allowance)	12 Months Ended
	Dec. 31, 2018
Allowance for Loan Losses (the Allowance)
Allowance for Loan Losses (the Allowance)	(7) The Allowance is established through provisions for loan and lease losses charged against income. Loans deemed to be uncollectible are charged against the Allowance, and subsequent recoveries, if any, are credited to the Allowance. The Allowance is maintained at a level considered adequate to provide for losses that are probable and estimable. Management’s periodic evaluation of the adequacy of the Allowance is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. Roll-Forward of the Allowance by Portfolio Segment The following tables detail the roll‑forward of the Corporation’s Allowance, by portfolio segment, as of December 31, 2018 and 2017, respectively: Balance, Balance, (dollars in thousands) December 31, 2017 Charge-offs Recoveries Provision December 31, 2018 Commercial mortgage $ 2,434 — 7 768 3,209 Home Equity lines and loans 280 (221) 18 246 323 Residential mortgage 82 — 61 48 191 Construction 1,689 — — (62) 1,627 Commercial and industrial 2,214 (244) 142 578 2,690 Consumer 5 — 4 (6) 3 Leases 5 — — 5 10 Total $ 6,709 (465) 232 1,577 8,053 Balance, Balance, (dollars in thousands) December 31, 2016 Charge-offs Recoveries Provision December 31, 2017 Commercial mortgage $ 2,038 (119) 218 297 2,434 Home Equity lines and loans 460 (42) 48 (186) 280 Residential mortgage 85 — 130 (133) 82 Construction 690 — — 999 1,689 Commercial and industrial 1,973 (1,338) 221 1,358 2,214 Consumer 2 — 5 (2) 5 Leases 5 — — — 5 Unallocated 172 — — (172) — Total $ 5,425 (1,499) 622 2,161 6,709 The Allowance Allocated by Portfolio Segment The following table details the allocation of the Allowance and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2018 respectively: Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2018 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 3,209 3,209 $ 1,929 323,464 325,393 Home Equity lines and loans — 323 323 83 82,203 82,286 Residential mortgage — 191 191 969 40,969 41,938 Construction — 1,627 1,627 1,281 115,625 116,906 Commercial and industrial 103 2,587 2,690 1,537 258,269 259,806 Consumer — 3 3 — 701 701 Leases — 10 10 — 1,335 1,335 Total $ 103 7,950 8,053 $ 5,799 822,566 828,365 (1) (1) Excludes deferred fees and loans carried at fair value. The following table details the allocation of the Allowance and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2017 respectively: Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2017 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 2,434 2,434 $ 1,533 261,608 263,141 Home Equity lines and loans — 280 280 137 83,902 84,039 Residential mortgage — 82 82 249 22,154 22,403 Construction — 1,689 1,689 260 104,710 104,970 Commercial and industrial 1 2,213 2,214 2,506 207,490 209,996 Consumer — 5 5 — 1,022 1,022 Leases — 5 5 — 762 762 Total $ 1 6,708 6,709 $ 4,685 681,648 686,333 (1) (1) Excludes deferred fees and loans carried at fair value. Loans and Leases by Credit Ratings As part of the process of determining the Allowance to the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by Management. The results of these reviews are reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: · Pass – Loans considered to be satisfactory with no indications of deterioration. · Special mention – Loans classified as special mention have a potential weakness that deserves Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. · Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. · Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loan balances classified as doubtful have been reduced by partial charge-offs and are carried at their net realizable values. The following table details the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of December 31, 2018 and 2017, respectively: December 31, 2018 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 320,130 3,713 1,550 — 325,393 Home equity lines and loans 82,121 — 165 — 82,286 Construction 114,249 2,657 — — 116,906 Commercial and industrial 239,181 12,620 7,975 30 259,806 Total $ 755,681 18,990 9,690 30 784,391 December 31, 2017 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 258,337 3,917 887 — 263,141 Home equity lines and loans 83,902 — 137 — 84,039 Construction 103,118 1,852 — — 104,970 Commercial and industrial 194,784 13,997 448 767 209,996 Total $ 640,141 19,766 1,472 767 662,146 In addition to credit quality indicators as shown in the above tables, Allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status as December 31, 2018 and 2017, respectively. No troubled debt restructurings performing according to modified terms are included in performing residential mortgages below for the twelve months ended December 31, 2018 and 2017, respectively. December 31, 2018 December 31, 2017 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 40,969 969 41,938 $ 22,154 249 22,403 Consumer 701 — 701 1,022 — 1,022 Leases 1,335 — 1,335 762 — 762 Total $ 43,005 969 43,974 $ 23,938 249 24,187 There were six nonperforming residential mortgage loans at December 31, 2018 and four at December 31, 2017 with a combined outstanding principal balance of $1.9 million and $826 thousand, respectively, which were carried at fair value and not included in the table above. Impaired Loans The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized for the periods. At December 31, 2018 At December 31, 2017 Average Average Recorded Principal Related recorded Recorded Principal Related recorded (dollars in thousands) investment balance allowance investment investment balance allowance investment Impaired loans with related allowance: Commercial mortgage $ — — — — — — — — Commercial and industrial 676 679 103 680 124 491 1 173 Home equity lines and loans — — — — — — — — Residential mortgage — — — — — — — — Construction — — — — — — — — Total 676 679 103 680 124 491 1 173 Impaired loans without related allowance: Commercial mortgage $ 1,929 2,379 — 1,982 1,534 2,025 — 1,537 Commercial and industrial 861 945 — 885 1,907 3,180 — 2,945 Home equity lines and loans 83 89 — 84 137 137 — 137 Residential mortgage 969 978 — 978 249 249 — 249 Construction 1,281 1,281 — 1,293 260 260 — 267 Total 5,123 5,672 — 5,222 4,087 5,851 — 5,135 Grand Total $ 5,799 6,351 103 5,902 4,211 6,342 1 5,308 Interest income recognized on performing impaired loans amounted to $327 thousand and $248 thousand for the twelve months ended December 31, 2018 and 2017, respectively. Troubled Debt Restructuring The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal. The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. The determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. The balance of TDRs at December 31, 2018 and 2017 are as follows: December 31, December 31, (dollars in thousands) 2018 2017 TDRs included in nonperforming loans and leases $ 1,219 741 TDRs in compliance with modified terms 3,047 1,900 Total TDRs $ 4,266 2,641 The following table presents information regarding loan and lease modifications granted during the year ended December 31, 2018 that were categorized as TDRs: For the Year Ended December 31, 2018 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage 1 $ 796 $ 796 $ — Land and Construction 1 1,628 1,628 — Commercial and industrial 3 549 549 63 Total 5 $ 2,973 $ 2,973 $ 63 The following table presents information regarding loan and lease modifications granted during the year ended December 31, 2017 that were categorized as TDRs: For the Year Ended December 31, 2017 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage 1 $ 177 $ 177 $ — Commercial and industrial 1 165 165 — Total 2 $ 342 $ 342 $ — No loan and lease modifications granted during the twelve months ended December 31, 2018 and 2017 subsequently defaulted during the same time period. The following table presents information regarding the number of contracts by type of loan and lease modifications made for the twelve months ended December 31, 2018 and 2017: For the Year Ended For the Year Ended December 31, 2018 December 31, 2017 Interest Rate Interest Rate Loan Term Change and Loan Loan Term Change and Loan Extension Term Extension Extension Term Extension Real Estate: Commercial mortgage 1 — 1 — Land and Construction 1 — — — Commercial and industrial 2 1 — 1 Total 4 1 1 1

Bank Premises and Equipment

Bank Premises and Equipment	12 Months Ended
	Dec. 31, 2018
Bank Premises and Equipment
Bank Premises and Equipment	(8) The components of premises and equipment at December 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Building $ 3,824 3,824 Leasehold improvements 3,013 2,200 Land 600 600 Land Improvements 215 215 Furniture, fixtures and equipment 2,447 2,230 Computer equipment and data processing software 6,211 5,588 Construction in process 118 130 Less: accumulated depreciation (6,790) (5,048) Total $ 9,638 9,741 Total depreciation expense for the years ended December 31, 2018 and 2017 totaled $ 1.7 million and $1.4 million , respectively .

Deposits

Deposits	12 Months Ended
	Dec. 31, 2018
Deposits:
Deposits	(9) The components of deposits at December 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Demand, noninterest bearing $ 126,150 100,454 Demand, interest-bearing 114,610 81,872 Savings accounts 3,097 303 Money market accounts 229,557 226,070 Time deposits 278,716 218,410 Total $ 752,130 627,109 The aggregate amount of time deposits in denominations over $250 thousand were $233.7 million and $147.8 milllion as of December 31, 2018 and 2017, respectively. At December 31, 2018, the scheduled maturities of time deposits are as follows (in thousands): 2019 $ 252,816 2020 13,604 2021 10,678 2022 465 2023 1,153 $ 278,716

Short-Term Borrowings and Long

Short-Term Borrowings and Long -Term Debt	12 Months Ended
	Dec. 31, 2018
Short-Term Borrowings and Long-Term Debt
Short-Term Borrowings and Long-Term Debt	(10) The Corporation’s short‑term borrowings generally consist of federal funds purchased and short‑term borrowings extended under agreements with Federal Home Loan Bank of Pittsburgh. The Corporation has two Federal Funds borrowing facilities with correspondent banks: one of $15 million and one of $24 million, respectively, which are both unsecured. Federal funds purchased generally represent one‑day borrowings. The Corporation had no Federal funds purchased at December 31, 2018 or December 31, 2017, respectively. The Corporation also has a facility with the Federal Reserve discount window of $10.4 million that is fully secured by investment securities and loans. There were no borrowings under this facility at December 31, 2018. Short‑term borrowings as of December 31, 2018 consisted of short‑term advances from FHLB of Pittsburgh in the amount of $112.5 million with interest at 2.62%, and $1.8 million with an original term of 4 years and interest at 1.70%. Short‑term borrowings as of December 31, 2017 consisted of short‑term advances from FHLB of Pittsburgh in the amount of $93.8 million with interest at 1.54%, $1.2 million with an original terms of 2 years and interest at 0.97% and $2.5 million with an original term of 5 years and interest at 1.92%, $1 million with an original term of 4 years and interest of 1.68%, and $1.3 million with an original term of 4 years and interest at 1.55%. Long‑term debt at December 31, 2018 consisted of the following fixed rate notes with the FHLB of Pittsburgh: Balance as of Maturity Interest December 31, December 31, (dollars in thousands) date rate 2018 2017 Mid-term Repo-fixed 06/26/19 1.70 % — 1,800 Mid-term Repo-fixed 08/10/20 2.76 % 5,000 5,000 Acquisition Purchase Note 04/01/20 3.00 % 1,238 2,063 $ 6,238 8,863 The FHLB of Pittsburgh had issued $45.1 million of letters of credit to the Corporation for the benefit of the Corporation’s public deposit funds and loan customers. These letters of credit expire throughout 2019. The Corporation has a maximum borrowing capacity with the FHLB of Pittsburgh of $437.2 million and $380.2 million as of December 31, 2018 and 2017, respectively. All advances and letters of credit from the FHLB are secured by a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.

Subordinated Debentures

Subordinated Debentures	12 Months Ended
	Dec. 31, 2018
Subordinated Debentures
Subordinated Debentures	(11) In December 2008, the Corporation issued $550,000 of mandatory convertible unsecured subordinated debentures (2008 Debentures). The 2008 Debentures have a maturity date of December 18, 2023 and interest on the 2008 Debentures is paid quarterly at 6%. The 2008 Debentures are convertible into 1.05 shares of the Corporation’s common stock for every $15 in principal amount of the 2008 Debentures automatically on such date, if any, as accumulated losses of the Corporation first exceed the sum of the retained earnings and capital surplus accounts of the Corporation. The 2008 Debentures began to repay principal in eight equal installments which commenced in December of 2016. As of December 31, 2018, $ 343,750 of the 2008 Debentures remained outstanding, after pay downs of $68,750 during 2018. In December 2011, the Corporation issued $1,425,000 of mandatory convertible unsecured subordinated debentures (2011 Debentures). The 2011 Debentures have a maturity date of December 31, 2026 and interest on the 2011 Debentures is paid quarterly at 6%. The 2011 Debentures are convertible into 1 share of the Corporation’s common stock for every $17 in principal amount of the 2011 Debentures automatically on such date, if any, as accumulated losses of the Corporation first exceed the sum of the retained earnings and capital surplus accounts of the Corporation. As of December 31, 2018, $ 925,000 of the 2011 Debentures remained outstanding, after pay downs of $500 thousand during 2018. In April 2013, the Corporation issued $1,370,000 of mandatory convertible unsecured subordinated debentures (2013 Debentures). The 2013 Debentures have a maturity date of December 31, 2028 and interest on the 2013 Debentures is paid quarterly at 6.5%. The 2013 Debentures are convertible into 1 share of the Corporation’s common stock for every $22 in principal amount of the 2013 Debentures automatically on such date, if any, as accumulated losses of the Corporation first exceed the sum of the retained earnings and capital surplus accounts of the Corporation. As of December 31, 2018, $ 870,000 of the 2013 Debentures remained outstanding, after pay downs of $500 thousand during 2018. In June, August and September 2014, the Corporation issued $3,000,000, $100,000 and $7,000,000 of non-convertible unsecured subordinated debentures (2014 Debentures). The 2014 Debentures have maturity dates of June 30, 2024, June 30, 2024 and September 30, 2024, respectively. Interest on all three tranches of the 2014 Debentures is paid quarterly at 7.25%. As of December 31, 2018, $ 7,100,000 of the 2014 Debentures remained outstanding after pay downs of $3 million during 2018. Upon formation of the bank holding company as described in detail in footnote 1, the Corporation assumed these Debentures that were originally issued by the Bank. The 2008, 2011, 2013 and 2014 Debentures are includable as Tier 2 capital for determining the Corporation’s compliance with regulatory capital requirements (see footnote 19). Upon conversion, the 2008, 2011 and 2013 Debentures become Tier 1 Capital.

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2018
Preferred Stock.
Preferred Stock	(12) In October 2008, the United States Treasury Department announced a voluntary Capital Purchase Program, a part of the Troubled Asset Relief Program (TARP), to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. Meridian Bank received approval for these capital funds. On February 13, 2009, the Bank entered into a Letter Agreement with the United States Department of the Treasury pursuant to which the Bank issued and sold to the Treasury (i) 6,200 shares of the Bank’s Series 2009A Preferred Stock and (ii) a warrant to purchase 310 shares of the Bank’s Series 2009B Preferred Stock for an aggregate purchase price of $6.2 million in cash (TARP funds). The warrant was exercised as a cashless exercise on February 13, 2009 and 310 shares of Series 2009B Preferred Stock were issued on that date. Series 2009A Preferred Stock paid cumulative dividends of 5% per annum for the first five years and pay 9% per annum thereafter. Series 2009B Preferred Stock pays dividends of 9% per annum. On December 3, 2009, the Bank entered into a second agreement with the United States Department of the Treasury pursuant to which the Bank issued and sold to the Treasury 6,335 shares of the Bank’s Series 2009 C Preferred Stock for $6,335,000. There were no warrants issued with the Series 2009C Preferred Stock and the Series 2009 C Preferred Stock paid dividends of 5% per annum for the first five years and pays 9% per annum thereafter. On March 7, 2014, Meridian Bank participated in the United States Treasury Department auction in which all 12,845 shares were sold to private investors. The rate and term of the shares remain the same, while the Treasury Department standards in regards to executive compensation limitations and corporate governance are no longer applicable. All series of the preferred stock qualified as Tier 1 capital while outstanding. All 12,845 preferred shares were redeemed by the Bank in December 2017. No preferred stock was outstanding at December 31, 2018 or 2017.

Lease Commitments

Lease Commitments	12 Months Ended
	Dec. 31, 2018
Lease Commitments
Lease Commitments	(13) The Corporation leases seventeen branch spaces from third parties under operating lease agreements expiring at different periods through December 2026. Under all current agreements, the Corporation is responsible for its portion of real estate taxes, utilities, insurance, and repairs and maintenance. Total rental expense for the years ended December 31, 2018 and 2017 was $1.4 million and $1.7 million, respectively. Future minimum lease payments by year and in the aggregate, under these lease agreements, are as follows: Future minimum lease payments (dollars in thousands) 2019 $ 1,239 2020 927 2021 878 2022 717 2023 608 Thereafter 3,159 $ 7,528

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2018
Stock-Based Compensation
Stock-Based Compensation	(14) The Corporation has issued stock options under the Meridian Bank 2004 Stock Option Plan (2004 Plan). The 2004 Plan authorized the Board of Directors to grant options up to an aggregate of 446,091 shares, as adjusted for the 5% stock dividends in 2012, 2014 and 2016 to officers, other employees and directors of the Corporation. No additional shares are available for future grants. The shares granted under the 2004 Plan to directors are nonqualified options. The shares granted under the 2004 Plan to officers and other employees are incentive stock options, and are subject to the limitations under Section 422 of the Internal Revenue Code. The Corporation has issued stock options under the Meridian Bank 2016 Equity Incentive Plan (2016 Plan), which was amended on May 24, 2018 to authorize the Board of Directors to grant options up to an aggregate of 686,900 shares, adjusted for the 2016 5% stock dividend. A total of 128,450 shares have been granted under the 2016 plan through December 31, 2018. Shares granted under the 2016 Plan to directors are nonqualified options, while shares granted to officers and other employees are incentive stock options, and are subject to the limitations under Section 422 of the Internal Revenue Code. Stock-based compensation cost is measured at the grant date, based on the fair value of the award and is recognized as an expense over the vesting period. The fair value of stock option grants is determined using the Black-Scholes pricing model. The assumptions necessary for the calculation of the fair value are expected life of options, annual volatility of stock price, risk-free interest rate and annual dividend yield. All awards granted under the 2016 Plan to date have a term that does not exceed ten years and vest 25% upon grant and become fully exercisable after three years of service from the grant date. The following table provides information about options outstanding as of December 31, 2018 and 2017: Weighted Weighted Average Average Exercise Grant Date Shares Price Fair Value Outstanding at December 31, 2016 169,358 $ 13.70 $ 3.97 Exercised (1,037) 9.88 3.53 Granted 48,750 19.00 4.05 Expired (3,187) 10.19 3.06 Forfeited (1,969) 14.22 4.38 Outstanding at December 31, 2017 211,915 14.99 4.00 Exercised (14,508) 12.43 3.44 Granted 79,450 17.70 5.49 Expired — — — Forfeited (2,787) 17.94 4.27 Outstanding at December 31, 2018 274,070 15.88 4.46 Exercisable at December 31, 2018 169,492 14.89 4.24 Nonvested at December 31, 2018 104,578 $ 17.48 $ 4.82 The weighted average remaining contractual life of the outstanding stock options at December 31, 2018 is 7.5 years. The range of exercise prices is $9.88 to $19.00. The aggregate intrinsic value of options outstanding and exercisable was $484 thousand as of December 31, 2018. The fair value of each option granted in 2018 was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following weighted average assumptions: dividend yield of 0.0%, risk‑free interest rate of between 2.84% and 3.06%, expected life of 5.75 years, and expected volatility of between 19.68% and 26.11% based on an average of the Corporation’s share price since going public and the expected volatility of similar public financial institutions in the Corporation’s market area for the period before the Corporation went public. The weighted average fair value of options granted in 2018 was $4.87 to $5.52 per share. The fair value of each option granted in 2017 was estimated on the date of grant using the Black‑Scholes option‑pricing model with the following weighted average assumptions: dividend yield of 0.0%, risk‑free interest rate of 2.17%, expected life of 7 years, and expected volatility of 19.70%. The volatility percentage was based on the average expected volatility of similar public financial institutions in the Corporation’s market area. The weighted average fair value of options granted in 2017 was $4.05 per share. Total stock compensation cost for the twelve months ended December 31, 2018 and December 31, 2017 was $293 thousand and $203 thousand, respectively. During the twelve months ended December 31, 2018, the Corporation received $128 thousand from the exercise of stock options. There were no tax benefits recognized related to stock compensation cost for the twelve months ended December 31, 2018. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the year ended December 31, 2018, we recognized actual forfeitures of 2,787 shares of stock options that were granted to officers and other employees. As of December 31, 2018, there was $362 thousand of unrecognized compensation cost related to nonvested stock options. This cost will be recognized over a weighted average period of 1.30 years.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Taxes
Federal Income Taxes	(15) The components of the federal and state income tax expense for the years ended December 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Federal: Current $ 2,413 2,612 Deferred (288) (51) 2,125 2,561 State: Current 207 208 Deferred (5) (15) 202 193 Totals $ 2,327 2,754 A reconciliation of the statutory income tax at 21% and 34% to the income tax expense included in the statement of operations is as follows for 2018 and 2017, respectively: (dollars in thousands) 2018 2017 Federal income tax at statutory rate $ 2,203 21.0 % 1,967 34.0 % State tax expense, net of federal benefit 160 1.5 127 2.0 Adjustment of net deferred tax assets for enacted change in tax laws and rate — — 737 12.5 Tax exempt interest (92) (0.9) (156) (2.7) Bank owned life insurance (63) (0.6) (94) (1.6) Incentive stock options 52 0.5 60 1.0 Stock offering costs — — 45 0.8 Other 67 0.6 68 1.6 Effective income tax rate $ 2,327 22.1 % 2,754 47.6 % The components of the net deferred tax asset at December 31, 2018 and 2017 are as follows: (dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan and lease losses $ 1,802 1,518 Intangibles 74 37 Accrued retirement 380 330 Unrealized loss on available for sale securities 118 87 Deferred rent 155 170 Mortgage repurchase reserve 15 31 Other 77 43 2,621 2,216 Deferred tax liabilities: Property and equipment (524) (571) Mortgage pipeline fair-value adjustment (80) (79) Hedge instrument fair-value adjustment (16) (53) Prepaid expenses (131) (88) Deferred loan costs (234) (113) (985) (904) Net deferred tax asset $ 1,636 1,312 The effective tax rates for the twelve-month periods ended December 31, 2018 and 2017 were 22.1% and 47.6% respectively. The decrease in rate from 47.6% to 22.1% between 2017 and 2018 was directly related to the passage of H.R.1, formerly known as the Tax Cuts and Jobs Act (the Act) on December 22, 2017. The Act lowered the top federal corporate rate from 35% to 21%. In accordance with GAAP, this required the re-measurement, in the period including the enactment, of the Corporation’s net deferred tax asset to reflect the rate at which they will be recognized in future periods. The result was a $737 thousand one-time charge to income tax expense for the twelve-month period ended December 31, 2017. Under ASC 740, Income Taxes, the effect of income tax law changes on deferred taxes should be recognized as a component of income tax expense related to continuing operations in the period in which the law is enacted. This requirement applies not only to items initially recognized in continuing operations, but also to items initially recognized in other comprehensive income. During 2018 we did not recognize income tax expense related to tax reform. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets. As of December 31, 2018, the Corporation had an investment in low income housing tax credits of $1.8 million on which it recognized tax credits of $109 thousand, amortization of $155 thousand and tax benefits from losses of $39 thousand during the year ended December 31, 2018.

Transactions with Executive Off

Transactions with Executive Officers, Directors and Principal Stockholders	12 Months Ended
	Dec. 31, 2018
Transactions with Executive Officers, Directors and Principal Stockholders
Transactions with Executive Officers, Directors and Principal Stockholders	(16) The Corporation has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal stockholders, their immediate families and affiliated companies (commonly referred to as related parties). Loans receivable from related parties totaled $3.5 million and $1.4 million at December 31, 2018 and 2017, respectively. Advances and repayments during 2018 totaled $5.6 million and $3.5 million respectively. Advances and repayments during 2017 totaled $2.4 million and $2.6 million respectively. Deposits of related parties totaled $17.8 million and $8.0 million at December 31, 2018 and 2017, respectively. Subordinated debt held by related parties totaled $616 thousand and $1.2 million at December 31, 2018 and 2017, respectively. The Corporation paid legal fees of $32 thousand and $45 thousand to a law firm of a director for the years ended December 31, 2018 and 2017, respectively.

Financial Instruments with Off

Financial Instruments with Off Balance Sheet Risk, Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Financial Instruments with Off‑Balance Sheet Risk, Commitments and Contingencies
Financial Instruments with Off‑Balance Sheet Risk, Commitments and Contingencies	(17) The Corporation is a party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on‑balance sheet instruments. A summary of the Corporation’s financial instrument commitments at December 31, 2018 and 2017 is as follows: (dollars in thousands) 2018 2017 Commitments to grant loans and commitments under lines of credit $ 290,614 220,180 Letters of credit 5,158 1,809 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Corporation evaluates each customer’s credit worthiness on a case‑by‑case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Outstanding letters of credit written are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Corporation requires collateral supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of December 31, 2018 and 2017 for guarantees under standby letters of credit issues is not material. Included in commitments to grant loans are mortgage loan commitments of $33.4 million and $45.8 million in 2018 and 2017, respectively, which included interest rate lock commitments. These rate lock commitments represent an agreement to extend credit to a mortgage loan applicant whereby the interest rate on the loan is set prior to funding. The loan commitment binds the Corporation to lend funds to a potential borrower at the specified rate, regardless of whether interest rates change between the commitment date and the loan funding date. The Corporation’s loan commitments generally range between 30 and 90 days; however, the borrower is not obligated to obtain the loans. As such, these commitments are subject to interest rate risk and related price risk during the period from interest rate lock commitment through the loan funding date or expiration date. The Corporation economically hedges its mandatory sales channel using the forward sale of mortgage-backed securities, in addition to best-efforts forward sale commitments to substantially eliminate these risks. At December 31, 2018 and 2017, the Corporation had a notional amount of $26.5 million and $38.8 million, respectively. At December 31, 2018 and 2017, the Corporation had best efforts forward sale commitments to sell loans amounting to $9.3 million and $10.2 million, respectively. The Corporation is only obligated to settle the forward sale commitment if the loan closes in accordance with the terms of the interest rate lock commitment. The Corporation’s forward sale commitments generally expire within 90 days. Loans sold under FHA or investor programs are subject to repurchase or indemnification if they fail to meet the origination criteria of those programs. In addition, loans sold to investors may be subject to repurchase or indemnification if the loan is two or three months delinquent during a set period that usually varies from the first six months to a year after the loan is sold. At December 31, 2018 there were no indemnification or repurchase requests pending. Although repurchases and losses have been infrequent, repurchase reserves of $68 thousand and $138 thousand were recorded as of December 31, 2018 and 2017. There were no such repurchases for the year ended December 31, 2018.

Recent Litigation

Recent Litigation	12 Months Ended
	Dec. 31, 2018
Recent Litigation
Recent Litigation	(18) In the ordinary course of business, the Corporation and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of banking, employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Corporation and its subsidiaries. In the ordinary course of business, the Corporation and its subsidiaries are also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, and local agencies, the Corporation and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of their activities. Based on the information currently available, the Corporation believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders. On November 21, 2017 several former employees of the mortgage-banking division of Meridian Bank filed a complaint in the United States District Court for the Eastern District of Pennsylvania, Juan Jordan et al. v. Meridian Bank, et. al., purporting to be a class and collective action seeking unpaid and overtime wages under the Fair Labor Standards Act of 1938, the New Jersey Wage and Hour Law, and the Pennsylvania Minimum Wage Act of 1968 on behalf of similarly situated plaintiffs. On June 4, 2018 plaintiffs filed an amended complaint, to which Meridian answered, denying the claims and presenting affirmative defenses. Presently before the court is plaintiffs’ motion to conditionally certify the case as a collective action, which preliminary motion Meridian has opposed, and which motion remains pending. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, success on the merits, the Bank has recorded a $200 thousand reserve as a reasonable estimate for possible losses that may result from this action. This estimate may change from time to time, and actual losses, if any, could vary.

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2018
Regulatory Matters
Regulatory Matters	(19) The Bank and the Corporation are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Corporation must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off‑balance sheet items as calculated under regulatory accounting practices. The Bank’s and the Corporation’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk‑weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Corporation to maintain minimum amounts and ratios (set forth below) of total and Tier 1 capital (as defined in the regulations) to risk‑weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2018, that the Bank and the Corporation meets all capital adequacy requirements to which it is subject. As of December 31, 2018, the Federal Deposit Insurance Corporation categorized the Bank and the Corporation as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s and the Corporation’s category. The Bank is subject to certain restrictions on the amount of dividends that it may declare and pay to the Corporation due to regulatory considerations. The Pennsylvania Banking Code provides that cash dividends may be declared and paid only out of accumulated net earnings. The Banks’s and the Corporation’s actual capital amounts and ratios at December 31, 2018 and 2017 are presented below: December 31, 2018 To be well capitalized under For capital adequacy prompt corrective action Actual purposes * provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 122,577 $ 71,577 $ 89,472 Common equity tier 1 capital (to risk-weighted assets) 105,196 40,262 58,157 Tier 1 capital (to risk-weighted assets) 105,196 53,683 71,577 Tier 1 capital (to average assets) 105,196 37,578 46,972 December 31, 2017 To be well capitalized under For capital adequacy prompt corrective action Actual purposes * provisions (dollars in thousands): Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 117,239 $ 60,376 $ 75,469 Common equity tier 1 capital (to risk-weighted assets) 101,661 33,961 49,055 Tier 1 capital (to risk-weighted assets) 97,084 45,282 60,376 Tier 1 capital (to average assets) 97,084 31,582 39,478 * Does not include capital conservation buffer of 1.250% for 2017 and 1.875% for 201 8

Fair Value Measurements and Dis

Fair Value Measurements and Disclosures	12 Months Ended
	Dec. 31, 2018
Fair Value Measurements and Disclosures
Fair Value Measurements and Disclosures	(20) The Corporation uses fair value measurements to record fair value adjustments to certain assets and liabilities. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Corporation’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Corporation groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2018 and 2017 are as follows: December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: U.S. government agency mortgage-backed securities $ 23,866 — 23,866 — U.S. government agency collateralized mortgage obligations 14,664 — 14,664 — State and municipal securities 10,919 — 10,919 — Investments in mutual funds and other equity securities 979 — 979 — Mortgage loans held-for-sale 37,695 — 37,695 — Mortgage loans held-for-investment 11,422 — 11,422 — Interest rate lock commitments 310 — — 310 Customer derivatives - Interest rate swaps 141 — 141 — Total $ 99,996 — 99,686 310 December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: U.S. government agency mortgage-backed securities $ 21,268 — 21,268 — U.S. government agency collateralized mortgage obligations 7,778 — 7,778 — State and municipal securities 9,959 — 9,959 — Investments in mutual funds and other equity securities 1,001 — 1,001 — Mortgage loans held-for-sale 35,024 — 35,024 — Mortgage loans held-for-investment 9,972 — 9,972 — Interest rate lock commitments 344 — — 344 Total $ 85,346 — 85,002 344 Assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2018 and 2017 are as follows: December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans (1) $ 5,799 — — 5,799 Other real estate owned (2) — — — — Total $ 5,799 — — 5,799 December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans (1) $ 4,685 — — 4,685 Other real estate owned (2) 437 — — 437 Total $ 5,122 — — 5,122 (1) Impaired loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third‑party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. (2) Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices or appraised value of the property. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. Appraised values may be discounted based on management’s expertise, historical knowledge, changes in market conditions from the time of valuation and/or estimated costs to sell. Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Corporation’s balance sheet. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair value of the Corporation’s financial instruments: (a) Cash and Cash Equivalents The carrying amounts reported in the balance sheet for cash and short‑term instruments approximate those assets’ fair values. (b) Securities The fair value of securities available‑for‑sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. (c) Mortgage Loans Held-for-Sale The fair value of loans held for sale is based on secondary market prices. (d) Loans Receivable The fair value of loans receivable is estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate‑risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value below is not reflective of an exit price. (e) The fair value of mortgage loans held for investment is based on the price secondary markets are currently offering for similar loans using observable market data . (f) Impaired Loans Impaired loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third‑party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. (g) Restricted Investment in Bank Stock The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities. (h) Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. (i) Deposit Liabilities The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed‑rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. (j) Short‑Term Borrowings The carrying amounts of short‑term borrowings approximate their fair values. (k) Long‑Term Debt Fair values of FHLB advances and the acquisition purchase note payable are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. (l) Subordinated Debt Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. (m) Off‑Balance Sheet Financial Instruments Off-balance sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments and as a result they are not included in the table below. Fair values assigned to the notional value of interest rate lock commitments and forward sale contracts are based on market quotes. (n) Derivative Financial Instruments The f air value of forward commitments and interest rate swaps is based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The estimated fair values of the Corporation’s financial instruments at December 31, 2018 and 2017 are as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 23,952 23,952 35,506 35,506 Securities available-for-sale Level 2 50,428 50,428 40,006 40,006 Securities held-to-maturity Level 2 12,741 12,655 12,861 12,869 Mortgage loans held-for-sale Level 2 37,695 37,695 35,024 35,024 Loans receivable, net Level 3 818,631 820,512 677,956 669,852 Mortgage loans held-for-investment Level 2 11,422 11,422 9,972 9,972 Interest rate lock commitments Level 3 310 310 344 344 Restricted investment in bank stock Level 3 7,002 7,002 6,814 6,814 Accrued interest receivable Level 3 2,889 2,889 2,536 2,536 Customer derivatives - Interest rate swaps Level 2 141 141 — — Financial liabilities: Deposits Level 2 752,130 744,300 627,109 626,635 Short-term borrowings Level 2 114,300 114,300 99,750 99,750 Long-term debt Level 2 6,238 6,240 8,863 8,865 Subordinated debentures Level 2 9,239 9,396 13,308 12,883 Accrued interest payable Level 2 305 305 216 216 Interest rate lock commitments Level 3 40 40 34 34 Forward commitments Level 2 176 176 75 75 Customer derivatives - Interest rate swaps Level 2 161 161 — — Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 290,614 310 220,180 344 Letters of credit Level 2 5,158 — 1,809 — The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the years ended December 31, 2018 and 2017. Year Ended December 31, 2018 2017 Balance at beginning of the period $ 344 721 (Decrease) increase in value (34) (377) Balance at end of the period $ 310 344 Significant Valuation Techniques for Level 3 interest rate lock Fair Value Unobservable Range of Weighted commitments as of December 31, 2018 Level 3 Valuation Technique Input Inputs Average Interest rate lock commitments $ 310 Market comparable pricing Pull through 1 - 99 % 89.27 % Gains of $40 thousand and $367 thousand due to changes in the fair value of interest rate lock commitments which are classified as Level 3 assets and liabilities for the twelve months ended December 31, 2018 and 2017, respectively, are recorded in non-interest income as net change in the fair value of derivative instruments in the Corporation’s consolidated statements of income.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Derivative Financial Instruments	(21) Risk Management Objective of Using Derivatives The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally related to the Corporation’s loan portfolio. Mortgage Banking Derivatives In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans or interest rate locks at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Interest rate lock commitments and forward commitments are recorded within other assets/liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within net change in the fair value of derivative instruments on the unaudited consolidated statements of income. Customer Derivatives – Interest Rate Swaps Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers to swap a fixed rate product for a variable rate product, or vice versa. The Corporation executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Corporation executes with a third party, such that the Corporation minimizes its net interest rate risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The following table presents a summary of the notional amounts and fair values of derivative financial instruments: December 31, 2018 December 31, 2017 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 27,188 310 38,574 344 Negative fair values Other liabilities 6,218 (40) 7,201 (34) Net interest rate lock commitments 33,406 270 45,775 310 Forward Commitments Positive fair values Other assets — — 6,500 5 Negative fair values Other liabilities 26,500 (176) 32,250 (80) Net forward commitments 26,500 (176) 38,750 (75) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 3,330 141 — — Negative fair values Other liabilities 3,330 (161) — — Net customer derivatives - interest rate swaps 6,660 (20) — — Net derivative fair value asset $ 66,566 74 84,525 235 Interest rate lock commitments are considered Level 3 in the fair value hierarchy, while the forward commitments and interest rate swaps are considered Level 2 in the fair value hierarchy. The following table presents a summary of the fair value gains and losses on derivative financial instruments: Year Ended December 31, (dollars in thousands) 2018 2017 Interest Rate Lock Commitments $ (40) (367) Forward Commitments (101) (60) Customer Derivatives - Interest Rate Swaps (20) — Net fair value gains (losses) on derivative financial instrument $ (161) (427) Realized gains/(losses) on derivatives were $627 thousand and ($724) thousand for the year ended December 31, 2018 and 2017, respectively, and are included in other non-interest income in the consolidated statements of income.

Segments

Segments	12 Months Ended
	Dec. 31, 2018
Segments
Segments	(22) 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 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, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income. Meridian 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 the Delaware Valley. 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. The table below summarizes income and expenses, directly attributable to each business line, which has been included in the statement of operations. Year Ended December 31, 2018 Year Ended December 31, 2017 (dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 31,807 289 561 32,657 $ 28,381 148 409 28,938 Provision for loan losses (1,577) — — (1,577) (2,161) — — (2,161) Net interest income after provision 30,230 289 561 31,080 26,220 148 409 26,777 Non-interest Income Mortgage banking income 124 — 26,063 26,187 128 — 32,708 32,836 Wealth management income 200 3,717 — 3,917 223 2,649 — 2,872 Net change in fair values — — (368) (368) — — (313) (313) Other 1,641 — 978 2,619 1,374 — (69) 1,305 Total non-interest income 1,965 3,717 26,673 32,355 1,725 2,649 32,326 36,700 Non-interest Expense Salaries and employee benefits 13,803 1,897 19,094 34,794 13,322 1,338 24,466 39,126 Occupancy and equipment 2,114 131 1,534 3,779 2,200 79 1,520 3,799 Professional fees 1,709 21 432 2,162 1,435 130 560 2,125 Advertising and promotion 1,197 432 726 2,355 1,061 322 865 2,248 Other 5,285 752 3,818 9,855 5,226 441 4,726 10,393 Total non-interest expense 24,108 3,233 25,604 52,945 23,244 2,310 32,137 57,691 Operating Margin $ 8,087 773 1,630 10,490 $ 4,701 487 598 5,786 Total Assets $ 951,132 6,146 40,110 997,388 $ 813,437 6,201 36,397 856,035

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2018
Recent Accounting Pronouncements
Recent Accounting Pronouncements	(23) As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), the Bank is permitted an extended transition period for complying with new or revised accounting standards affecting public companies. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1,070,000,000 or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of this offering, (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the fiscal year in which the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year. We have elected to take advantage of this extended transition period, which means that the financial statements included herein, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period under the JOBS Act. If we do so, we will prominently disclose this decision in the first periodic report following our decision, and such decision is irrevocable. As a filer under the JOBS Act, we will implement new accounting standards subject to the effective dates required for non-public entities. Adopted Pronouncements in 2018: FASB Accounting Standards update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting” In March 2016, the FASB issued ASU 2016-09, ‘‘Improvements to Employee Share-Based Payment Accounting.’’ This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Effective January of 2018, the Corporation adopted the pronouncement. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the year ended December 31, 2018, we recognized actual forfeitures of 2,787 shares of stock options that were granted to officers and other employees. FASB ASU 2017‑04 (Topic 350), “Intangibles – Goodwill and Others” Issued in January 2017, ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation. The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017, using the prospective method of adoption. The Corporation elected to early adopt this standard on December 31, 2018, on a prospective basis, with no impact to the consolidated financial statements or related disclosures at the time of adoption. Pronouncements Not Effective as of December 31, 2018: FASB ASU 2014‑09 (Topic 606), “Revenue from Contracts with Customers” Issued in May 2014, ASU 2014‑09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015‑14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014‑09 by one year. In March 2016, the FASB issued ASU 2016‑ 08”, “Principal versus Agent Considerations (Reporting Gross versus Net),” which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016‑20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” and 2016‑12, “Narrow-Scope Improvements and Practical Expedients”, both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public companies for annual reporting periods beginning after December 15, 2017, but early adoption is permitted. Early adoption is permitted only as of annual reporting periods after December 15, 2016. The standard permits the use of either the ‘retrospective’ or ‘retrospectively with the cumulative effect’ transition method. For non-public companies, the ASC updates are effective for annual reporting periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019. The Corporation’s revenue is the sum of net interest income and non-interest income. The scope of the guidance excludes nearly all net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. The Corporation performed a review and determined that the majority of non-interest income revenue streams are within the scope of the new standard. Non-interest income streams that are out of scope of the new standard include BOLI, sales of investment securities, mortgage banking activities, and certain items within service charges and other income. Management is reviewing contracts related to service charges on deposits, investment advisory commissions and fee income, and certain items within other service charges and other income, however our preliminary evaluation of revenue streams that are in the scope of this ASU suggests that adoption of this guidance is not expected to have a material impact on our consolidated statement of income. The Corporation expects to adopt this ASU as of December 31, 2019 and has not yet determined the impact to our Consolidated Financial Statements. FASB ASU 2017-05 (Topic 610), “ Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” Issued in February 2017, ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and insubstance nonfinancial asset should be derecognized when the counterparty obtains control of it. The Corporation plans to adopt this ASU at the same time we adopt ASU 2014-09. FASB ASU 2017‑01 (Topic 805), “Business Combinations” Issued in January 2017, ASU 2017‑01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. ASU 2017‑01 is effective for public companies for annual periods beginning after December 15, 2017 including interim periods within those periods, while for non-public companies the ASU is effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The Corporation does not anticipate the adoption of this ASU to have a material impact on its consolidated financial statements and related disclosures. FASB ASU 2016‑15 (Topic 320), “Classification of Certain Cash Receipts and Cash Payments” Issued in August 2016, ASU 2016‑15 provides guidance on eight specific cash flow issues and their disclosure in the consolidated statements of cash flows. The issues addressed include debt prepayment, settlement of zero-coupon debt, contingent consideration in business combinations, proceeds from settlement of insurance claims, proceeds from settlement of BOLI, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the Predominance principle. ASU 2016‑15 is effective for public companies for the annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted. For non-public companies ASU 2016‑15 is effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. The Corporation does not anticipate the adoption of this ASU to have a material impact on its consolidated financial statements and related disclosures. FASB ASU 2016‑13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” Issued in June 2016, ASU 2016‑13 significantly changes how companies measure and recognize credit impairment for many financial assets. This ASU requires businesses and other organizations to measure the current expected credit losses (“CECL”) on financial assets, such as loans, net investments in leases, certain debt securities, bond insurance and other receivables. The amendments affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. Current GAAP requires an incurred loss methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The amendments in this ASU replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonableness and supportable information to inform credit loss estimates. An entity should apply the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (modified retrospective approach). Acquired credit impaired loans for which the guidance in Accounting Standards Codification (ASC) Topic 310-30 has been previously applied should prospectively apply the guidance in this ASU. A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. ASU 2016‑13 is effective for public companies for the annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted. For non-public companies the ASU is effective for fiscal years and interim periods beginning after December 15, 2021, or January 1, 2022 for the Corporation. The Corporation has assembled a cross-functional team from Finance, Credit, and IT that is leading the implementation efforts to evaluate the impact of this guidance on the Corporation's consolidated financial statements and related disclosures, internal systems, accounting policies, processes and related internal controls. FASB ASU 2016‑02 (Topic 842), “Leases” Issued in February 2016, ASU 2016‑02 revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016‑02 is effective for public companies for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. For non-public companies the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within the fiscal years beginning after December 31, 2020. In July 2018 ASU 2018-11 was issued which creates a new, optional transition method for implementing ASU 2016-02 and a lessor practical expedient for separating lease and non-lease components and has the same effective date as ASU 2016-02. Under the optional transition method of ASU 2018-11, the Corporation may initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Corporation is evaluating the effects that ASU 2016‑02 and ASU 2018-11 will have on its consolidated financial statements and related disclosures. FASB ASU 2016‑01 (Subtopic 825‑10), “Financial Instruments – Overall, Recognition and Measurement of Financial Assets and Financial Liabilities” Issued in January 2016, ASU 2016‑01 provides that equity investments will be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. For public companies, ASU 2016‑01 will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For non-public companies the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within the fiscal years beginning after December 31, 2019. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. ASU 2018‑03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825‑10) clarifies certain aspects of ASU 2016‑01 and has the same effective dates for non-public companies. The Corporation is evaluating the effects that ASU 2016‑01 and ASU 2018‑03 will have on its consolidated financial statements and related disclosures upon our adoption as of December 31, 2019. FASB ASU 2017‑08 (Subtopic 310‑20), “Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities” Issued in March 2017, ASU 2017‑08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendment requires the premium to be amortized to the earliest call date. The amendment does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. For non-public companies the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within the fiscal years beginning after December 31, 2020. The Corporation is evaluating the effect that ASU 2017‑08 will have on its consolidated financial statements and related disclosures. FASB ASU 2017‑12 (Subtopic 815), “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities” Issued in August 2017, ASU 2017‑12 better aligns hedge accounting with an organization’s risk management activities in the financial statements. In addition, the ASU simplifies the application of hedge accounting guidance in areas where practice issues exist. Specifically, the proposed ASU eases the requirements for effectiveness testing, hedge documentation and application of the shortcut and the critical terms match methods. Entities would be permitted to designate contractually specified components as the hedged risk in a cash flow hedge involving the purchase or sale of nonfinancial assets or variable rate financial instruments. In addition, entities would no longer separately measure and report hedge ineffectiveness. Also, entities, may choose refined measurement techniques to determine the changes in fair value of the hedged item in fair value hedges of benchmark interest rate risk. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early application is permitted in any interim period after issuance of the ASU for existing hedging relationships on the date of adoption and the effect of adoption should be reflected as of the beginning of the fiscal year of adoption (that is, the initial application date). The Corporation has evaluated ASU 2017‑12, and has determined it has no current hedging strategies for which it plans to implement the ASU but we will consider the impact of the ASU on future hedging strategies that may arise. FASB ASU 2018-16 (Subtopic 815), “ Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes” In October 2018 ASU 2018-16 was issued. The new guidance applies to all entities that elect to apply hedge accounting to benchmark interest rate hedges under Topic 815. It permits the use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes in addition to the existing applicable rates. The guidance is required to be adopted concurrently with ASU 2017-12, on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after adoption. The Corporation does not anticipate the adoption of this ASU to have a material impact on its consolidated financial statements and related disclosures.

Parent Company Financial Statem

Parent Company Financial Statements	12 Months Ended
	Dec. 31, 2018
Parent Company Financial Statements
Parent Company Financial Statements	(24) The condensed financial statements of the Corporation (parent company only) are presented below. These statements should be read in conjunction with the Notes to the Consolidated Financial Statements. A. Condensed Balance Sheets December 31, December 31, (dollars in thousands, except per share data) 2018 2017 Investments in subsidiaries 109,867 — Total assets $ 109,867 — Stockholders’ equity: Common stock, $1 par value. Authorized 10,000,000 shares; issued and outstanding 6,406,795 and 6,392,287 as of December 31, 2018 and December 31, 2017 6,407 — Surplus 79,919 — Retained earnings 23,931 — Accumulated other comprehensive loss (390) — Total stockholders’ equity 109,867 — Total liabilities and stockholders’ equity $ 109,867 — B. Condensed Statements of Income Year ended December 31, (dollars in thousands, except per share data) 2018 2017 Dividends from subsidiaries $ — — Net interest and other income — — Total operating income — — Expenses — — Income before equity in undistributed income of subsidiaries — — Equity in undistributed income of subsidiaries 8,163 — Income before income taxes 8,163 — Income tax (benefit) expense — — Net income 8,163 — Total other comprehensive income (92) — Total comprehensive income $ 8,071 C. Condensed Statements of Cash Flows Year ended December 31, (dollars in thousands) 2018 2017 Net income $ 8,163 — Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (8,163) — Net cash provided by operating activities — — Cash flows from investing activities: Net cash used in investing activities — — Cash flows from financing activities: Net cash provided by financing activities — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — —

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Summary of Significant Accounting Policies
Nature of Operations	(a) Nature of Operations Meridian Corporation (the “Corporation”) was incorporated on June 8, 2009, by and at the direction of the board of directors of Meridian Bank (the “Bank”) for the sole purpose of acquiring the Bank and serving as the Bank’s parent bank holding company. On August 24, 2018, the Corporation acquired the Bank in a merger and reorganization effected under Pennsylvania law and in accordance with the terms of a Plan of Merger and Reorganization dated April 26, 2018 (the “Agreement”). Pursuant to the Agreement, on August 24, 2018 at 5:00 p.m. all of the outstanding shares of the Bank’s $1.00 par value common stock formerly held by its shareholders was converted into and exchanged for one newly issued share of the Corporation’s par value common stock, and the Bank became a subsidiary of the Corporation. Because the Bank and the Corporation were entities under common control, this exchange of shares between entities under common control resulted in the retrospective combination of the Bank and the Corporation for all periods presented as if the combination had been in effect since inception of common control. As the Corporation had no assets, liabilities, revenues, expenses or operations prior to August 24, 2018, the historical financial statements of the Bank are the historical financial statements of the combined entity. The Corporation operates in a highly competitive market area that includes local, national and regional banks as competitors along with savings banks, credit unions, insurance companies, trust companies and registered investment advisors. The Corporation and its subsidiaries are regulated by many regulatory agencies including the Securities and Exchange Commission (“SEC”), Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve and the Pennsylvania Department of Banking. The Bank was incorporated on March 16, 2004 under the laws of the Commonwealth of Pennsylvania and is a Pennsylvania state-chartered bank. The Bank commenced operations on July 8, 2004 and is a full-service bank providing personal and business lending and deposit services through 6 full-service banking offices in Pennsylvania and 13 mortgage loan production offices throughout the Delaware Valley. The Bank and Corporation are headquartered in Malvern, Pennsylvania, located in the western suburbs of Philadelphia and serves southeastern Pennsylvania and the rest of the Delaware Valley.
Basis of Presentation	(b) Basis of Presentation The accounting policies of the Corporation conform to U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include accounts of the Corporation and its wholly owned subsidiary, the Bank, and the wholly owned subsidiaries of the Bank: APEX Realty LLC; Meridian Wealth Partners LLC; and Meridian Land Settlement Services LLC. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Amounts subject to significant estimates are items such as the allowance for loan and lease losses and lending related commitments, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill and intangible assets. Although our current estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that in 2019, actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Certain prior year amounts have been reclassified to conform to the current year’s presentation.
Significant Concentrations of Credit Risk	(c) Significant Concentrations of Credit Risk Most of the Corporation’s activities are with customers located within the tri-state area of Pennsylvania, Delaware and New Jersey. Footnote 5 discusses the types of securities that the Corporation invests in. Footnote 6 discusses types of lending that the Corporation engages in. Although the Corporation has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. The Corporation does not have any significant concentrations to any one industry or customer, however there is significant concentration of commercial real estate-backed loans, amounting to 37% and 36% of total loans held for investment, as of December 31, 2018 and December 31, 2017, respectively.
Presentation of Cash Flows	(d) Presentation of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased or sold for one day periods. Cash balances required to meet regulatory reserve requirements of the Federal Reserve Board amounted to $1.5 million at December 31, 2018.
Securities	(e) Securities Management determines the appropriate classification of debt securities at the time of purchase and re‑evaluates such designation as of each balance sheet date. Securities classified as available‑for‑sale are those securities that the Corporation intends to hold for an indefinite period of time but not necessarily to maturity. Securities available‑for‑sale are carried at fair value. Any decision to sell a security classified as available‑for‑sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Corporation’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Securities classified as held to maturity are those debt securities the Corporation has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed on a level yield basis. The Corporation’s accounting policy specifies that (a) if the Corporation does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other‑than‑temporarily impaired, unless there is a credit loss. When the Corporation does not intend to sell the security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other‑than‑temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Corporation did not recognize any other‑than‑temporary impairment charges during the years ended December 31, 2018 and 2017.
Loans Receivable	(f) Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Corporation generally amortizes these amounts over the contractual life of the loan. Loans that were originated by the Corporation and intended for sale in the secondary market to permanent investors, but were either repurchased or unsalable due to defect, are held for the foreseeable future or until maturity or payoff, but are carried at fair value. The accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and charged against current year income. Interest received on nonaccrual loans generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt.
Allowance for Loan and Lease Losses	(g) Allowance for Loan and Lease Losses The allowance for loan and lease losses (“ALLL” or “Allowance”) is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the Allowance, and subsequent recoveries, if any, are credited to the Allowance. All, or part, of the principal balance of loans receivable are charged off to the Allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Charge-offs for retail consumer loans are generally made for any balance not adequately secured after 120 cumulative days past due. The Allowance is maintained at a level considered adequate to provide for losses that are probable and estimable. Management’s periodic evaluation of the adequacy of the Allowance is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s Allowance and may require the Corporation to recognize additions to the Allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The Allowance consists of general and specific components. The general component covers non-classified loans, as well as, non-impaired classified loans and is based on historical loss experience adjusted for qualitative factors. The specific component relates to loans that are classified as doubtful, substandard, and are on non-accrual and have been deemed impaired. Loan classifications are determined based on various assessments such as the borrower’s overall financial condition, payment history, repayment sources, guarantors and value of collateral. A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case‑by‑case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. For commercial and construction loans, impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral adjusted for cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous residential mortgage and consumer loans are collectively evaluated for impairment. Accordingly, the Corporation does not separately identify individual loans of this nature for impairment disclosures, unless such loans are troubled and the subject of a restructuring agreement. Loans whose terms are modified are classified as troubled debt restructurings if the Corporation grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. No portion of the Allowance is restricted to any individual loan or groups of loans, and the entire Allowance is available to absorb any and all loan losses.
Mortgage Banking Activities and Mortgage Loans Held for Sale	(h) Mortgage Banking Activities and Mortgage Loans Held for Sale The Corporation’s mortgage banking division operates 1 3 offices in the tri-state area of Pennsylvania, Delaware and New Jersey. The mortgage banking division originates FHA insured and conventional mortgages and sells these loans to various investors in the secondary market. Mortgage loans originated by the Corporation and intended for sale in the secondary market to permanent investors are carried at fair value and are classified as mortgage loans held for sale on the balance sheet. Gains and losses on loan sales are recorded in mortgage banking income. The Corporation enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Corporation protects itself from changes in interest rates through the use of best efforts forward sale contracts, whereby the Corporation commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. The Corporation also commits to loan sales through a mandatory sales channel which are economically hedged by the future sale of mortgage-backed securities to third-party counterparties to mitigate the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. By entering into best efforts commitments and economically hedging the mandatory commitments, the Corporation limits its exposure to loss and its realization of significant gains related to its rate lock commitments due to changes in interest rates. The Corporation utilizes a third-party model which determines the fair value of rate lock commitments and forward sale contracts by using investor quotes while taking into consideration the probability that the rate lock commitments will close. Net derivative assets and liabilities are recorded within other assets or other liabilities, respectively, on the consolidated balance sheets, with changes in fair value during the period recorded within net change in the fair value of derivative instruments on the consolidated statements of income. (i) Mortgage Servicing The Corporation sells substantially all of the residential mortgage loans we originate to third parties; however, the Corporation may retain the servicing rights related to some of these loans. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received in return for these services. Gains on the sale of these loans are based on the specific identification method.
Other Real Estate Owned	(j) Other real estate owned (OREO) is comprised of property acquired through a foreclosure proceeding or acceptance of a deed‑in‑lieu of foreclosure. The Corporation acquires OREO through the wholly owned subsidiary of the Bank, Apex Realty. OREO is recorded at the lower of cost or fair value, or the loan amount net of estimated selling costs, at the date of foreclosure. The cost basis of OREO is its recorded value at the time of acquisition. After acquisition, valuations are periodically performed by management and subsequent changes in the valuation allowance are charged to OREO expense. Revenues, such as rental income, and holding expenses are included in other income and other expenses, respectively. The Corporation had $0 and $437 thousand of OREO at December 31, 2018 and 2017, respectively.
Restricted Investment in Bank Stock	(k) Restricted Investment in Bank Stock Restricted bank stock is principally comprised of stock in the Federal Home Loan Bank of Pittsburgh (FHLB). Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. As of December 31, 2018, and 2017, the Corporation had an investment of $6.9 million and $6.8 million, respectively, related to the FHLB stock. Also included in restricted stock is Atlantic Central Bankers Bank (primary correspondent bank) stock in the amount of $50 thousand as of December 31, 2018 and 2017. All restricted stock is carried at cost. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB restricted stock as of December 31, 2018 or 2017.
Transfers of Financial Assets	(l) Transfers of Financial Assets Transfers of financial assets, including loan and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Bank Premises and Equipment	(m) Bank Premises and Equipment Bank premises and equipment are stated at cost less accumulated depreciation. The costs of maintenance and repairs are expensed as incurred; while major replacements, improvements and additions are capitalized. Depreciation expense is computed on the straight‑line method over the estimated useful lives of the related assets or, for leasehold improvements, over the effective life of the related lease if less than the estimated useful life.
Advertising Costs	(n) Advertising Costs The Corporation follows the policy of charging the costs of advertising to expense as incurred.
Employee Benefit Plans	(o) Employee Benefit Plans The Corporation has a 401(k) Plan (the Plan) and an Employee Stock Ownership Plan (ESOP). All employees are eligible to participate in the Plan and ESOP after they have attained the age of 21 and have also completed 3 consecutive months of service. Employees must participate in the Plan to be eligible for participation in the ESOP. The employees may contribute to the Plan up to the maximum percentage allowable by law of their compensation. The Corporation may make a discretionary matching contribution to the Plan and the ESOP. Full vesting in the Corporation’s contribution to the Plan and ESOP is over a three‑year period. The Corporation’s contribution to the Plan and ESOP was $577 thousand and $332 thousand, respectively for the year ended December 31, 2018 and $661 thousand and $330 thousand, respectively for the year ended December 31, 2017. During the year ended December 31, 2018, no shares were purchased by the ESOP, while for the year ended December 31, 2017, 4,462 shares were purchased by the ESOP at an average market value of $17.50. Shares in the ESOP that are committed to be released to employees are treated as outstanding shares in the Corporation’s computation of earnings per share. There were 36,619 shares in the ESOP as of December 31, 2018. Shares in the ESOP would be impacted by any stock dividends and stock splits in the same manner as all other outstanding common shares of the Corporation.
Income Taxes	(p) Income Taxes Deferred income taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating losses and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and net operating loss carry-forwards and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Corporation follows accounting guidance related to accounting for uncertainty in income taxes. Under the “more likely than not” threshold guidelines, the Corporation believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2018, and 2017, the Corporation had no material unrecognized tax benefits or accrued interest and penalties. The Corporation’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Corporation is no longer subject to examination by federal, state and local taxing authorities for years before January 1, 2015.
Stock Compensation Plans	(q) Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share‑based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share‑based compensation arrangements including stock options and restricted share plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded‑vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. A Black‑Scholes model is used to estimate the fair value of stock options, while the market price of the Corporation’s common stock at the date of grant is used for restricted stock awards.
Comprehensive Income	(r) Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available‑for‑sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. The components of other comprehensive income (loss) for the years ended December 31, 2018 and 2017 consist of unrealized holding gains and (losses) arising during the year on available‑for‑sale securities.
Off Balance Sheet Financial Instruments	(s) Off‑Balance Sheet Financial Instruments In the ordinary course of business, the Corporation has entered into off‑balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the balance sheet when they are funded.
Derivative Financial Instruments	(t) Derivative Financial Instruments The Corporation recognizes all derivative financial instruments related to its mortgage banking activities on its balance sheet at fair value. The Corporation utilizes investor quotes to determine the fair value of interest rate lock commitment derivatives and market pricing to determine the fair value of forward security purchase commitment derivatives. All changes in fair value of derivative instruments are recognized in earnings. The Corporation enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. The interest rate swaps are recognized on the Corporation’s balance sheet at fair value. Under these agreements, the Corporation originates variable-rate loans with customers in addition to interest rate swap agreements, which serve to effectively swap the customers’ variable-rate loans into fixed-rate loans. The Corporation then enters into corresponding swap agreements with swap dealer counterparties to economically hedge its exposure on the variable and fixed components of the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820.
Initial Public Offering	(u) Initial Public Offering The Corporation’s initial public offering closed on November 7, 2017 and a total of 2,352,941 shares of common stock were sold at $17.00 per share. The Corporation received gross proceeds of $40.0 million for the shares of common stock sold in the offering. On November 10, 2017 the underwriters associated with the initial public offering exercised their option to purchase additional shares of common stock. The Bank received additional gross proceeds of $6.0 million for the 352,941 shares of common stock sold from the exercise of the underwriters’ option. Total proceeds, net of issuance costs, amounted to $42.1 million. Following completion of the public offering, the Corporation became a publicly traded bank with the common stock listed on The NASDAQ Global Select Market under the symbol “MRBK”.

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	12 Months Ended
	Dec. 31, 2018
Earnings per Common Share
Schedule of basic and diluted earnings per common share	Year Ended December 31, (dollars in thousands, except per share data) 2018 2017 Numerator: Net income available to common stockholders $ 8,163 1,865 Denominator for basic earnings per share - weighted average shares outstanding 6,397 3,743 Effect of dilutive common shares 30 27 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,427 3,770 Basic earnings per share $ 1.28 0.50 Diluted earnings per share $ 1.27 0.49 Antidilutive shares excluded from computation of average dilutive earnings per share 126 50

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2018
Business Combinations
Schedule of consideration paid, the fair value of identifiable assets acquired as of the date of acquisition and the resulting goodwill recorded	(dollars in thousands) Consideration Paid: Cash paid at closing $ 3,025 Purchaser note 2,475 Seller fees paid by buyer 200 Value of consideration 5,700 Assets acquired: Intangible assets - trade name 266 Intangible assets - customer relationships 4,083 Intangible assets - non competition agreements 275 Contingent asset 177 Total assets 4,801 Goodwill resulting from acquisition of HJ Wealth $ 899

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Other Intangibles
Schedule of goodwill and intangibles assets related to acquisition	Balance Balance Amortization December 31, Amortization Fair Value December 31, Period (dollars in thousands) 2017 Expense Adjustment 2018 (in years) Goodwill - Wealth $ 899 — — 899 Indefinite Total Goodwill 899 — — 899 Intangible assets - trade name 266 — — 266 Indefinite Intangible assets - customer relationships 3,930 (203) — 3,727 20 Intangible assets - non competition agreements 223 (69) — 154 4 Contingent asset 177 (177) — N/A Total Intangible Assets 4,596 (272) (177) 4,147 Total $ 5,495 (272) (177) 5,046
Schedule of future amortization	Future schedule of amortization (in thousands): 2019 $ 273 2020 273 2021 221 2022 204 2023 204 Thereafter 2,706 $ 3,881

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2018
Securities
Schedule of amortized cost and fair value of securities	December 31, 2018 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. government agency mortgage-backed securities $ 24,092 45 (271) 23,866 U.S. government agency collateralized mortgage obligations 14,754 52 (142) 14,664 State and municipal securities 11,096 22 (199) 10,919 Investments in mutual funds 1,000 — (21) 979 Total securities available-for-sale $ 50,942 119 (633) 50,428 Securities held to maturity: U.S. Treasuries $ 1,991 — (13) 1,978 State and municipal securities 10,750 17 (90) 10,677 Total securities held-to-maturity $ 12,741 17 (103) 12,655 December 31, 2017 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. government agency mortgage-backed securities $ 21,439 19 (190) 21,268 U.S. government agency collateralized mortgage obligations 7,875 2 (99) 7,778 State and municipal securities 10,079 14 (134) 9,959 Investments in mutual funds 1,000 1 — 1,001 Total securities available-for-sale $ 40,393 36 (423) 40,006 Securities held to maturity: U.S. Treasuries $ 1,978 — (8) 1,970 State and municipal securities 10,883 86 (70) 10,899 Total securities held-to-maturity $ 12,861 86 (78) 12,869
Schedule of investment unrealized loss in continuous unrealized loss position	December 31, 2018 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses Securities available-for-sale: U.S. government agency mortgage-backed securities $ 2,354 (6) 15,223 (265) 17,577 (271) U.S. government agency collateralized mortgage obligations 2,636 (14) 5,620 (128) 8,256 (142) State and municipal securities 957 (11) 8,746 (188) 9,703 (199) Investments in mutual funds 980 (21) — — 980 (21) Total securities available-for-sale $ 6,927 (52) 29,589 (581) 36,516 (633) Securities held-to-maturity: U.S. Treasuries $ — — 1,978 (13) 1,978 (13) State and municipal securities 1,545 (5) 4,783 (85) 6,328 (90) Total securities held-to-maturity $ 1,545 (5) 6,761 (98) 8,306 (103) December 31, 2017 Less than 12 Months 12 Months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses Securities available-for-sale: U.S. government agency mortgage-backed securities $ 9,788 (28) 7,854 (162) 17,642 (190) U.S. government agency collateralized mortgage obligations 6,732 (81) 860 (18) 7,592 (99) State and municipal securities 6,147 (57) 2,818 (77) 8,965 (134) Total securities available-for-sale $ 22,667 (166) 11,532 (257) 34,199 (423) Securities held-to-maturity: U.S. Treasuries $ 1,962 (8) — — 1,962 (8) State and municipal securities 4,851 (70) — — 4,851 (70) Total securities held-to-maturity $ 6,813 (78) — — 6,813 (78)
Schedule of amortized cost and fair value of held-to-maturity securities and available-for-sale securities by contractual maturity	December 31, 2018 December 31, 2017 Available-for-sale Held-to-maturity Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Amortized Fair Amortized Fair (dollars in thousands) cost value cost value cost value cost value Investment securities: Due in one year or less $ 906 902 1,991 1,978 $ — — — — Due after one year through five years 1,236 1,226 3,154 3,148 2,206 2,189 3,803 3,791 Due after five years through ten years 6,411 6,290 7,596 7,529 3,500 3,436 7,180 7,156 Due after ten years 2,543 2,501 — — 4,374 4,333 1,878 1,922 Subtotal 11,096 10,919 12,741 12,655 10,080 9,958 12,861 12,869 Mortgage-related securities 38,846 38,530 — — 29,313 29,047 — — Mutual funds with no stated maturity 1,000 979 — — 1,000 1,001 — — Total $ 50,942 50,428 12,741 12,655 $ 40,393 40,006 12,861 12,869

Loans Receivable (Tables)

Loans Receivable (Tables)	12 Months Ended
	Dec. 31, 2018
Loans Receivable
Summary of loans and leases outstanding	(dollars in thousands) 2018 2017 Mortgage loans held for sale $ 37,695 35,024 Real estate loans: Commercial mortgage 325,393 263,141 Home equity lines and loans 82,286 84,039 Residential mortgage (1) 53,360 32,375 Construction 116,906 104,970 Total real estate loans 577,945 484,525 Commercial and industrial 259,806 209,996 Consumer 701 1,022 Leases, net 1,335 762 Total portfolio loans and leases 839,787 696,305 Total loans and leases $ 877,482 731,329 Loans with predetermined rates $ 264,376 202,317 Loans with adjustable or floating rates 613,106 529,012 Total loans and leases $ 877,482 731,329 Net deferred loan origination (fees) costs $ (1,681) (1,668) (1) Includes $11,422 and $10,157 of loans at fair value as of December 31, 2018 and 2017, respectively.
Schedule of components of the net investment in leases	(dollars in thousands) 2018 2017 Minimum lease payments receivable $ 1,420 793 Unearned lease income (85) (31) Total $ 1,335 762
Schedule of age analysis of past due loans and leases	Total 90+ days Accruing Nonaccrual December 31, 2018 30-89 days past due and Total past Loans and loans and Total loans Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 324,169 324,169 1,224 325,393 0.38 % Home equity lines and loans 348 — 348 81,855 82,203 83 82,286 0.52 Residential mortgage (1) 195 — 195 51,018 51,213 2,147 53,360 4.39 Construction — — — 116,906 116,906 — 116,906 — Commercial and industrial 217 — 217 259,112 259,329 477 259,806 0.27 Consumer — — — 701 701 — 701 — Leases 49 — 49 1,286 1,335 — 1,335 3.67 Total $ 809 — 809 835,047 835,856 3,931 839,787 0.56 % (1) Includes $11,422 of loans at fair value as of December 31, 2018 ($10,098 of current, $187 of 30-89 days past due and $1,137 of nonaccrual). Total 90+ days Accruing Nonaccrual December 31, 2017 30-89 days past due and Total past Loans and loans and Total loans Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 262,727 262,727 414 263,141 0.16 % Home equity lines and loans 142 — 142 83,760 83,902 137 84,039 0.33 Residential mortgage (1) 734 — 734 30,557 31,291 1,084 32,375 5.62 Construction — — — 104,785 104,785 185 104,970 0.18 Commercial and industrial — — — 208,670 208,670 1,326 209,996 0.63 Consumer — — — 1,022 1,022 — 1,022 — Leases 87 11 98 664 762 — 762 12.86 Total $ 963 11 974 692,185 693,159 3,146 696,305 0.59 % (1) Includes $10,157 of loans at fair value as of December 31, 2017 ($9,334 of current and $823 of nonaccrual).

Allowance for Loan and Lease _2

Allowance for Loan and Lease Losses (the Allowance) (Tables)	12 Months Ended
	Dec. 31, 2018
Allowance for Loan Losses (the Allowance)
Roll-forward of allowance for loan and lease losses by portfolio segment	Balance, Balance, (dollars in thousands) December 31, 2017 Charge-offs Recoveries Provision December 31, 2018 Commercial mortgage $ 2,434 — 7 768 3,209 Home Equity lines and loans 280 (221) 18 246 323 Residential mortgage 82 — 61 48 191 Construction 1,689 — — (62) 1,627 Commercial and industrial 2,214 (244) 142 578 2,690 Consumer 5 — 4 (6) 3 Leases 5 — — 5 10 Total $ 6,709 (465) 232 1,577 8,053 Balance, Balance, (dollars in thousands) December 31, 2016 Charge-offs Recoveries Provision December 31, 2017 Commercial mortgage $ 2,038 (119) 218 297 2,434 Home Equity lines and loans 460 (42) 48 (186) 280 Residential mortgage 85 — 130 (133) 82 Construction 690 — — 999 1,689 Commercial and industrial 1,973 (1,338) 221 1,358 2,214 Consumer 2 — 5 (2) 5 Leases 5 — — — 5 Unallocated 172 — — (172) — Total $ 5,425 (1,499) 622 2,161 6,709
Schedule of allocation of the allowance for loan and lease losses	The following table details the allocation of the Allowance and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2018 respectively: Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2018 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 3,209 3,209 $ 1,929 323,464 325,393 Home Equity lines and loans — 323 323 83 82,203 82,286 Residential mortgage — 191 191 969 40,969 41,938 Construction — 1,627 1,627 1,281 115,625 116,906 Commercial and industrial 103 2,587 2,690 1,537 258,269 259,806 Consumer — 3 3 — 701 701 Leases — 10 10 — 1,335 1,335 Total $ 103 7,950 8,053 $ 5,799 822,566 828,365 (1) (1) Excludes deferred fees and loans carried at fair value. The following table details the allocation of the Allowance and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of December 31, 2017 respectively: Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2017 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 2,434 2,434 $ 1,533 261,608 263,141 Home Equity lines and loans — 280 280 137 83,902 84,039 Residential mortgage — 82 82 249 22,154 22,403 Construction — 1,689 1,689 260 104,710 104,970 Commercial and industrial 1 2,213 2,214 2,506 207,490 209,996 Consumer — 5 5 — 1,022 1,022 Leases — 5 5 — 762 762 Total $ 1 6,708 6,709 $ 4,685 681,648 686,333 (1) (1) Excludes deferred fees and loans carried at fair value.
Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators	December 31, 2018 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 320,130 3,713 1,550 — 325,393 Home equity lines and loans 82,121 — 165 — 82,286 Construction 114,249 2,657 — — 116,906 Commercial and industrial 239,181 12,620 7,975 30 259,806 Total $ 755,681 18,990 9,690 30 784,391 December 31, 2017 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 258,337 3,917 887 — 263,141 Home equity lines and loans 83,902 — 137 — 84,039 Construction 103,118 1,852 — — 104,970 Commercial and industrial 194,784 13,997 448 767 209,996 Total $ 640,141 19,766 1,472 767 662,146
Schedule of allocations based on the credit quality indicators	December 31, 2018 December 31, 2017 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 40,969 969 41,938 $ 22,154 249 22,403 Consumer 701 — 701 1,022 — 1,022 Leases 1,335 — 1,335 762 — 762 Total $ 43,005 969 43,974 $ 23,938 249 24,187
Schedule of recorded investment and principal balance of impaired loans	At December 31, 2018 At December 31, 2017 Average Average Recorded Principal Related recorded Recorded Principal Related recorded (dollars in thousands) investment balance allowance investment investment balance allowance investment Impaired loans with related allowance: Commercial mortgage $ — — — — — — — — Commercial and industrial 676 679 103 680 124 491 1 173 Home equity lines and loans — — — — — — — — Residential mortgage — — — — — — — — Construction — — — — — — — — Total 676 679 103 680 124 491 1 173 Impaired loans without related allowance: Commercial mortgage $ 1,929 2,379 — 1,982 1,534 2,025 — 1,537 Commercial and industrial 861 945 — 885 1,907 3,180 — 2,945 Home equity lines and loans 83 89 — 84 137 137 — 137 Residential mortgage 969 978 — 978 249 249 — 249 Construction 1,281 1,281 — 1,293 260 260 — 267 Total 5,123 5,672 — 5,222 4,087 5,851 — 5,135 Grand Total $ 5,799 6,351 103 5,902 4,211 6,342 1 5,308
Schedule of balances of TDRs	December 31, December 31, (dollars in thousands) 2018 2017 TDRs included in nonperforming loans and leases $ 1,219 741 TDRs in compliance with modified terms 3,047 1,900 Total TDRs $ 4,266 2,641
Schedule of loan and lease modifications granted	The following table presents information regarding loan and lease modifications granted during the year ended December 31, 2018 that were categorized as TDRs: For the Year Ended December 31, 2018 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage 1 $ 796 $ 796 $ — Land and Construction 1 1,628 1,628 — Commercial and industrial 3 549 549 63 Total 5 $ 2,973 $ 2,973 $ 63 The following table presents information regarding loan and lease modifications granted during the year ended December 31, 2017 that were categorized as TDRs: For the Year Ended December 31, 2017 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage 1 $ 177 $ 177 $ — Commercial and industrial 1 165 165 — Total 2 $ 342 $ 342 $ —
Schedule of types of loan and lease modifications	For the Year Ended For the Year Ended December 31, 2018 December 31, 2017 Interest Rate Interest Rate Loan Term Change and Loan Loan Term Change and Loan Extension Term Extension Extension Term Extension Real Estate: Commercial mortgage 1 — 1 — Land and Construction 1 — — — Commercial and industrial 2 1 — 1 Total 4 1 1 1

Bank Premises and Equipment (Ta

Bank Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Bank Premises and Equipment
Schedule of components of premises and equipment, net of depreciation	(dollars in thousands) 2018 2017 Building $ 3,824 3,824 Leasehold improvements 3,013 2,200 Land 600 600 Land Improvements 215 215 Furniture, fixtures and equipment 2,447 2,230 Computer equipment and data processing software 6,211 5,588 Construction in process 118 130 Less: accumulated depreciation (6,790) (5,048) Total $ 9,638 9,741

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2018
Deposits:
Summary of components of deposits	(dollars in thousands) 2018 2017 Demand, noninterest bearing $ 126,150 100,454 Demand, interest-bearing 114,610 81,872 Savings accounts 3,097 303 Money market accounts 229,557 226,070 Time deposits 278,716 218,410 Total $ 752,130 627,109
Scheduled maturities of time deposits	At December 31, 2018, the scheduled maturities of time deposits are as follows (in thousands): 2019 $ 252,816 2020 13,604 2021 10,678 2022 465 2023 1,153 $ 278,716

Short-Term Borrowings and Long-

Short-Term Borrowings and Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2018
Short-Term Borrowings and Long-Term Debt
Schedule of long term debt	Balance as of Maturity Interest December 31, December 31, (dollars in thousands) date rate 2018 2017 Mid-term Repo-fixed 06/26/19 1.70 % — 1,800 Mid-term Repo-fixed 08/10/20 2.76 % 5,000 5,000 Acquisition Purchase Note 04/01/20 3.00 % 1,238 2,063 $ 6,238 8,863

Lease Commitments (Tables)

Lease Commitments (Tables)	12 Months Ended
	Dec. 31, 2018
Lease Commitments
Schedule of Future minimum lease payments	Future minimum lease payments (dollars in thousands) 2019 $ 1,239 2020 927 2021 878 2022 717 2023 608 Thereafter 3,159 $ 7,528

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2018
Stock-Based Compensation
Summary of stock option activity	Weighted Weighted Average Average Exercise Grant Date Shares Price Fair Value Outstanding at December 31, 2016 169,358 $ 13.70 $ 3.97 Exercised (1,037) 9.88 3.53 Granted 48,750 19.00 4.05 Expired (3,187) 10.19 3.06 Forfeited (1,969) 14.22 4.38 Outstanding at December 31, 2017 211,915 14.99 4.00 Exercised (14,508) 12.43 3.44 Granted 79,450 17.70 5.49 Expired — — — Forfeited (2,787) 17.94 4.27 Outstanding at December 31, 2018 274,070 15.88 4.46 Exercisable at December 31, 2018 169,492 14.89 4.24 Nonvested at December 31, 2018 104,578 $ 17.48 $ 4.82

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Taxes
Summary of components of the federal and state income tax expense	(dollars in thousands) 2018 2017 Federal: Current $ 2,413 2,612 Deferred (288) (51) 2,125 2,561 State: Current 207 208 Deferred (5) (15) 202 193 Totals $ 2,327 2,754
Schedule of reconciliation of the statutory income tax	(dollars in thousands) 2018 2017 Federal income tax at statutory rate $ 2,203 21.0 % 1,967 34.0 % State tax expense, net of federal benefit 160 1.5 127 2.0 Adjustment of net deferred tax assets for enacted change in tax laws and rate — — 737 12.5 Tax exempt interest (92) (0.9) (156) (2.7) Bank owned life insurance (63) (0.6) (94) (1.6) Incentive stock options 52 0.5 60 1.0 Stock offering costs — — 45 0.8 Other 67 0.6 68 1.6 Effective income tax rate $ 2,327 22.1 % 2,754 47.6 %
Summary of net deferred tax assets	(dollars in thousands) 2018 2017 Deferred tax assets: Allowance for loan and lease losses $ 1,802 1,518 Intangibles 74 37 Accrued retirement 380 330 Unrealized loss on available for sale securities 118 87 Deferred rent 155 170 Mortgage repurchase reserve 15 31 Other 77 43 2,621 2,216 Deferred tax liabilities: Property and equipment (524) (571) Mortgage pipeline fair-value adjustment (80) (79) Hedge instrument fair-value adjustment (16) (53) Prepaid expenses (131) (88) Deferred loan costs (234) (113) (985) (904) Net deferred tax asset $ 1,636 1,312

Financial Instruments with Of_2

Financial Instruments with Off Balance Sheet Risk, Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Financial Instruments with Off‑Balance Sheet Risk, Commitments and Contingencies
Schedule of financial instrument commitments	(dollars in thousands) 2018 2017 Commitments to grant loans and commitments under lines of credit $ 290,614 220,180 Letters of credit 5,158 1,809

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2018
Regulatory Matters
Schedule of corporation’s actual capital amounts and ratios.	December 31, 2018 To be well capitalized under For capital adequacy prompt corrective action Actual purposes * provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 122,577 $ 71,577 $ 89,472 Common equity tier 1 capital (to risk-weighted assets) 105,196 40,262 58,157 Tier 1 capital (to risk-weighted assets) 105,196 53,683 71,577 Tier 1 capital (to average assets) 105,196 37,578 46,972 December 31, 2017 To be well capitalized under For capital adequacy prompt corrective action Actual purposes * provisions (dollars in thousands): Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) $ 117,239 $ 60,376 $ 75,469 Common equity tier 1 capital (to risk-weighted assets) 101,661 33,961 49,055 Tier 1 capital (to risk-weighted assets) 97,084 45,282 60,376 Tier 1 capital (to average assets) 97,084 31,582 39,478 * Does not include capital conservation buffer of 1.250% for 2017 and 1.875% for 201 8

Fair Value Measurements and D_2

Fair Value Measurements and Disclosures (Tables)	12 Months Ended
	Dec. 31, 2018
Fair Value Measurements and Disclosures
Schedule of financial assets measured at fair value on a recurring basis	December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: U.S. government agency mortgage-backed securities $ 23,866 — 23,866 — U.S. government agency collateralized mortgage obligations 14,664 — 14,664 — State and municipal securities 10,919 — 10,919 — Investments in mutual funds and other equity securities 979 — 979 — Mortgage loans held-for-sale 37,695 — 37,695 — Mortgage loans held-for-investment 11,422 — 11,422 — Interest rate lock commitments 310 — — 310 Customer derivatives - Interest rate swaps 141 — 141 — Total $ 99,996 — 99,686 310 December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: U.S. government agency mortgage-backed securities $ 21,268 — 21,268 — U.S. government agency collateralized mortgage obligations 7,778 — 7,778 — State and municipal securities 9,959 — 9,959 — Investments in mutual funds and other equity securities 1,001 — 1,001 — Mortgage loans held-for-sale 35,024 — 35,024 — Mortgage loans held-for-investment 9,972 — 9,972 — Interest rate lock commitments 344 — — 344 Total $ 85,346 — 85,002 344
Schedule of financial assets measured at fair value on non-recurring basis	December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans (1) $ 5,799 — — 5,799 Other real estate owned (2) — — — — Total $ 5,799 — — 5,799 December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans (1) $ 4,685 — — 4,685 Other real estate owned (2) 437 — — 437 Total $ 5,122 — — 5,122 (1) Impaired loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third‑party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. (2) Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices or appraised value of the property. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. Appraised values may be discounted based on management’s expertise, historical knowledge, changes in market conditions from the time of valuation and/or estimated costs to sell.
Schedule of estimated fair values of financial instruments	December 31, 2018 December 31, 2017 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 23,952 23,952 35,506 35,506 Securities available-for-sale Level 2 50,428 50,428 40,006 40,006 Securities held-to-maturity Level 2 12,741 12,655 12,861 12,869 Mortgage loans held-for-sale Level 2 37,695 37,695 35,024 35,024 Loans receivable, net Level 3 818,631 820,512 677,956 669,852 Mortgage loans held-for-investment Level 2 11,422 11,422 9,972 9,972 Interest rate lock commitments Level 3 310 310 344 344 Restricted investment in bank stock Level 3 7,002 7,002 6,814 6,814 Accrued interest receivable Level 3 2,889 2,889 2,536 2,536 Customer derivatives - Interest rate swaps Level 2 141 141 — — Financial liabilities: Deposits Level 2 752,130 744,300 627,109 626,635 Short-term borrowings Level 2 114,300 114,300 99,750 99,750 Long-term debt Level 2 6,238 6,240 8,863 8,865 Subordinated debentures Level 2 9,239 9,396 13,308 12,883 Accrued interest payable Level 2 305 305 216 216 Interest rate lock commitments Level 3 40 40 34 34 Forward commitments Level 2 176 176 75 75 Customer derivatives - Interest rate swaps Level 2 161 161 — — Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 290,614 310 220,180 344 Letters of credit Level 2 5,158 — 1,809 —
Schedule of level 3 inputs reconciliation	Year Ended December 31, 2018 2017 Balance at beginning of the period $ 344 721 (Decrease) increase in value (34) (377) Balance at end of the period $ 310 344
Schedule of measurement inputs	Significant Valuation Techniques for Level 3 interest rate lock Fair Value Unobservable Range of Weighted commitments as of December 31, 2018 Level 3 Valuation Technique Input Inputs Average Interest rate lock commitments $ 310 Market comparable pricing Pull through 1 - 99 % 89.27 %

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative Financial Instruments
Summary of the notional amounts and fair values of derivative financial instruments	December 31, 2018 December 31, 2017 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 27,188 310 38,574 344 Negative fair values Other liabilities 6,218 (40) 7,201 (34) Net interest rate lock commitments 33,406 270 45,775 310 Forward Commitments Positive fair values Other assets — — 6,500 5 Negative fair values Other liabilities 26,500 (176) 32,250 (80) Net forward commitments 26,500 (176) 38,750 (75) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 3,330 141 — — Negative fair values Other liabilities 3,330 (161) — — Net customer derivatives - interest rate swaps 6,660 (20) — — Net derivative fair value asset $ 66,566 74 84,525 235
Summary of the fair value gains and losses on derivative financial instruments	Year Ended December 31, (dollars in thousands) 2018 2017 Interest Rate Lock Commitments $ (40) (367) Forward Commitments (101) (60) Customer Derivatives - Interest Rate Swaps (20) — Net fair value gains (losses) on derivative financial instrument $ (161) (427)

Segment (Tables)

Segment (Tables)	12 Months Ended
	Dec. 31, 2018
Segments
Schedule of business segment financial information	Year Ended December 31, 2018 Year Ended December 31, 2017 (dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 31,807 289 561 32,657 $ 28,381 148 409 28,938 Provision for loan losses (1,577) — — (1,577) (2,161) — — (2,161) Net interest income after provision 30,230 289 561 31,080 26,220 148 409 26,777 Non-interest Income Mortgage banking income 124 — 26,063 26,187 128 — 32,708 32,836 Wealth management income 200 3,717 — 3,917 223 2,649 — 2,872 Net change in fair values — — (368) (368) — — (313) (313) Other 1,641 — 978 2,619 1,374 — (69) 1,305 Total non-interest income 1,965 3,717 26,673 32,355 1,725 2,649 32,326 36,700 Non-interest Expense Salaries and employee benefits 13,803 1,897 19,094 34,794 13,322 1,338 24,466 39,126 Occupancy and equipment 2,114 131 1,534 3,779 2,200 79 1,520 3,799 Professional fees 1,709 21 432 2,162 1,435 130 560 2,125 Advertising and promotion 1,197 432 726 2,355 1,061 322 865 2,248 Other 5,285 752 3,818 9,855 5,226 441 4,726 10,393 Total non-interest expense 24,108 3,233 25,604 52,945 23,244 2,310 32,137 57,691 Operating Margin $ 8,087 773 1,630 10,490 $ 4,701 487 598 5,786 Total Assets $ 951,132 6,146 40,110 997,388 $ 813,437 6,201 36,397 856,035

Parent Company Financial Stat_2

Parent Company Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2018
Parent Company Financial Statements
Schedule of parent only consolidated balance sheets	December 31, December 31, (dollars in thousands, except per share data) 2018 2017 Investments in subsidiaries 109,867 — Total assets $ 109,867 — Stockholders’ equity: Common stock, $1 par value. Authorized 10,000,000 shares; issued and outstanding 6,406,795 and 6,392,287 as of December 31, 2018 and December 31, 2017 6,407 — Surplus 79,919 — Retained earnings 23,931 — Accumulated other comprehensive loss (390) — Total stockholders’ equity 109,867 — Total liabilities and stockholders’ equity $ 109,867 —
Schedule of parent only consolidated statements of operations	Year ended December 31, (dollars in thousands, except per share data) 2018 2017 Dividends from subsidiaries $ — — Net interest and other income — — Total operating income — — Expenses — — Income before equity in undistributed income of subsidiaries — — Equity in undistributed income of subsidiaries 8,163 — Income before income taxes 8,163 — Income tax (benefit) expense — — Net income 8,163 — Total other comprehensive income (92) — Total comprehensive income $ 8,071
Schedule of parent only consolidated statements of cash flows	Year ended December 31, (dollars in thousands) 2018 2017 Net income $ 8,163 — Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (8,163) — Net cash provided by operating activities — — Cash flows from investing activities: Net cash used in investing activities — — Cash flows from financing activities: Net cash provided by financing activities — — Net change in cash and cash equivalents — — Cash and cash equivalents at beginning of period — — Cash and cash equivalents at end of period $ — —

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Nature of Operations (Details)	12 Months Ended
	Dec. 31, 2018Office$ / shares	Dec. 31, 2018item$ / shares	Aug. 24, 2018$ / shares	Dec. 31, 2017$ / shares
Business Acquisition [Line Items]
Common stock, par value	$ 1	$ 1		$ 1
Number of full-service offices | Office	6
Number of mortgage loan production offices	13	13
Meridian Bank
Business Acquisition [Line Items]
Common stock, par value			$ 1

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Significant Concentrations of Credit Risk (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Assets Total | Credit Concentration Risk
Concentration Risk [Line Items]
Total loans (as a percent)	37.00%	36.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash Flows, Allowance for Loan Losses and Mortgage Banking Activities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)Office	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Presentation of Cash Flows
Cash balances	$ 1,500	$ 1,500	$ 1,500
Allowance for Loan Losses
Cumulative days past due for charge off for retail consumer loans	120 days
Mortgage Banking Activities and Mortgage Loans Held for Sale
Number of mortgage loan production offices		13	13
Other real estate owned
Other real estate owned	$ 0	$ 0	$ 0	$ 437
Minimum
Mortgage Banking Activities and Mortgage Loans Held for Sale
Loan commitment to sale duration	30 days
Maximum
Mortgage Banking Activities and Mortgage Loans Held for Sale
Loan commitment to sale duration	120 days

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Restricted Investment in Bank Stock (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Federal Home Loan Bank (FHLB)
Restricted Investment in Bank Stock
FHLB stock	$ 6,900	$ 6,800
Investment impairment	0	0
Atlantic Central Bankers Bank
Restricted Investment in Bank Stock
Investment	$ 50	$ 50

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Employee Benefit Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Employee Benefit Plans
Age	21 years
Minimum service term	3 months
Vesting period	3 years
Employer contribution under 401(k) plan	$ 577,000	$ 661,000
Employer contribution under ESOP	$ 332,000	$ 330,000
Shares purchased under ESOP	0	4,462
Average market value of shares purchased under ESOP		$ 17.50
Shares held by ESOP	36,619

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 10, 2017	Nov. 07, 2017	Dec. 31, 2017
Subsidiary, Sale of Stock [Line Items]
Proceeds from the sale of common stock net of issuance costs			$ 42,108
IPO
Subsidiary, Sale of Stock [Line Items]
Shares of common stock		2,352,941
Share Price		$ 17
Gross proceeds from the sale of common stock		$ 40,000
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Shares of common stock	352,941
Gross proceeds from the sale of common stock	$ 6,000
Proceeds from the sale of common stock net of issuance costs			$ 42,100

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income available to common stockholders	$ 8,163	$ 1,865
Denominator for basic earnings per share - weighted average shares outstanding	6,397	3,743
Effect of dilutive common shares	30	27
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	6,427	3,770
Basic earnings per share (in dollars per share)	$ 1.28	$ 0.50
Diluted earnings per share (in dollars per share)	$ 1.27	$ 0.49
Antidilutive shares excluded from computation of average dilutive earnings per share	126	50

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Apr. 05, 2017	Dec. 31, 2017
Consideration Paid:
Consideration paid at closing		$ 3,225
Interest rate (as a percent)	3.00%
HJ Wealth
Consideration Paid:
Business acquisition costs	$ 114
Cash paid at closing	3,025
Purchaser note	2,475
Seller fees paid by buyer	200
Value of consideration	5,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Contingent asset	177
Total assets	4,801
Goodwill resulting from acquisition of HJ Wealth	899
Liabilities assumed	$ 0
Contingent asset measurement period	18 months
HJ Wealth | Trade name
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Intangible assets - trade name	$ 266
HJ Wealth | Customer relationships
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Intangible assets	4,083
HJ Wealth | Non competition agreements
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Intangible assets - trade name	$ 275

Goodwill and Other Intangible_2

Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Goodwill and intangible assets related to the acquisition
Finite-Lived Intangible Assets, Net, Ending Balance	$ 3,881
Accumulated Amortization	477		$ 205
Grand total	5,046		5,495
HJ Wealth
Goodwill and intangible assets related to the acquisition
Goodwill, Beginning Balance	899
Goodwill, Ending Balance	899
Amortization expense	(272)
Contingent assets beginning balance	177
Fair Value Adjustment	(177)
Total Intangible Assets	4,147		4,596
Grand total	5,046		$ 5,495
Contingent asset		$ 0
HJ Wealth | Trade name
Goodwill and intangible assets related to the acquisition
Indefinite-lived Intangible Assets (Excluding Goodwill), Beginning Balance	266
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance	266
HJ Wealth | Customer relationships
Goodwill and intangible assets related to the acquisition
Finite-Lived Intangible Assets, Net, Beginning Balance	3,930
Amortization expense	(203)
Finite-Lived Intangible Assets, Net, Ending Balance	$ 3,727
Amortization Period	20 years
HJ Wealth | Non competition agreements
Goodwill and intangible assets related to the acquisition
Finite-Lived Intangible Assets, Net, Beginning Balance	$ 223
Amortization expense	(69)
Finite-Lived Intangible Assets, Net, Ending Balance	$ 154
Amortization Period	4 years

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Future Amortization (Details) $ in Thousands	Dec. 31, 2018USD ($)
Goodwill and Other Intangibles
2019	$ 273
2020	273
2021	221
2022	204
2023	204
Thereafter	2,706
Total future amortization	$ 3,881

Securities - Amortized cost and

Securities - Amortized cost and fair value (Details) $ in Thousands	Dec. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
Securities available-for-sale:
Available-for-sale, Amortized Cost	$ 50,942	$ 40,393
Available-for-sale, Gross Unrealized Gains	119	36
Available-for-sale, Gross Unrealized (Losses)	(633)	(423)
Available-for-sale, Fair Value	50,428	40,006
Securities held to maturity:
Held-to-maturity, Amortized Cost	12,741	12,861
Held-to-maturity, Gross Unrealized Gains	17	86
Held-to-maturity, Gross Unrealized (Losses)	(103)	(78)
Fair Value	12,655	12,869
Securities pledged as collateral fair value	20,600	22,600
U.S. government agency mortgage-backed securities
Securities available-for-sale:
Available-for-sale, Amortized Cost	24,092	21,439
Available-for-sale, Gross Unrealized Gains	45	19
Available-for-sale, Gross Unrealized (Losses)	(271)	(190)
Available-for-sale, Fair Value	$ 23,866	21,268
Securities held to maturity:
Number of securities in unrealized loss positions | security	24
U.S. government agency collateralized mortgage obligations
Securities available-for-sale:
Available-for-sale, Amortized Cost	$ 14,754	7,875
Available-for-sale, Gross Unrealized Gains	52	2
Available-for-sale, Gross Unrealized (Losses)	(142)	(99)
Available-for-sale, Fair Value	$ 14,664	$ 7,778
Securities held to maturity:
Number of securities in unrealized loss positions | security	12	2
State and municipal securities
Securities available-for-sale:
Available-for-sale, Amortized Cost	$ 11,096	$ 10,079
Available-for-sale, Gross Unrealized Gains	22	14
Available-for-sale, Gross Unrealized (Losses)	(199)	(134)
Available-for-sale, Fair Value	10,919	9,959
Securities held to maturity:
Held-to-maturity, Amortized Cost	10,750	10,883
Held-to-maturity, Gross Unrealized Gains	17	86
Held-to-maturity, Gross Unrealized (Losses)	(90)	(70)
Fair Value	$ 10,677	$ 10,899
Number of securities in unrealized loss positions | security	26	14
Investments in mutual funds and other equity securities
Securities available-for-sale:
Available-for-sale, Amortized Cost	$ 1,000	$ 1,000
Available-for-sale, Gross Unrealized Gains		1
Available-for-sale, Gross Unrealized (Losses)	(21)
Available-for-sale, Fair Value	$ 979	1,001
Securities held to maturity:
Number of securities in unrealized loss positions | security	1
U.S. Treasuries
Securities held to maturity:
Held-to-maturity, Amortized Cost	$ 1,991	1,978
Held-to-maturity, Gross Unrealized (Losses)	(13)	(8)
Fair Value	$ 1,978	$ 1,970
Number of securities in unrealized loss positions | security	2	13

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	$ 6,927	$ 22,667
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	29,589	11,532
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	36,516	34,199
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	(52)	(166)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(581)	(257)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(633)	(423)
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,545	6,813
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	6,761
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Total	8,306	6,813
Debt securities, Held-to-maturity securities, Continuous unrealized loss position, accumulated loss
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(5)	(78)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(98)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(103)	(78)
U.S. government agency mortgage-backed securities
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	2,354	9,788
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	15,223	7,854
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	17,577	17,642
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	(6)	(28)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(265)	(162)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(271)	(190)
U.S. government agency collateralized mortgage obligations
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	2,636	6,732
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	5,620	860
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	8,256	7,592
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	(14)	(81)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(128)	(18)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(142)	(99)
State and municipal securities
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	957	6,147
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	8,746	2,818
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	9,703	8,965
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	(11)	(57)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(188)	(77)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(199)	(134)
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,545	4,851
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	4,783
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Total	6,328	4,851
Debt securities, Held-to-maturity securities, Continuous unrealized loss position, accumulated loss
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(5)	(70)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(85)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(90)	(70)
Investments in mutual funds and other equity securities
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	980
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	980
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Less than 12 Months	(21)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(21)
U.S. Treasuries
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months		1,962
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	1,978
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Total	1,978	1,962
Debt securities, Held-to-maturity securities, Continuous unrealized loss position, accumulated loss
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(8)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(13)
Held-to-maturity securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ (13)	$ (8)

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	$ 50,942	$ 40,393
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	50,428	40,006
Contractual Maturities, Held-to-maturity, Amortized Cost
Amortized Cost	12,741	12,861
Contractual Maturities, Held-to-maturity, Fair Value
Fair Value	12,655	12,869
State and municipal securities
Contractual Maturities, Available-for-sale, Amortized Cost
Due in one year or less	906
Due after one year through five years	1,236	2,206
Due after five years through ten years	6,411	3,500
Due after ten years	2,543	4,374
Amortized Cost	11,096	10,080
Contractual Maturities, Available-for-sale, Fair Value
Due in one year or less	902
Due after one year through five years	1,226	2,189
Due after five years through ten year	6,290	3,436
Due after ten years	2,501	4,333
Fair Value	10,919	9,958
Contractual Maturities, Held-to-maturity, Amortized Cost
Due in one year or less	1,991
Due after one year through five years	3,154	3,803
Due after five years through ten years	7,596	7,180
Due after ten years		1,878
Amortized Cost	10,750	10,883
Contractual Maturities, Held-to-maturity, Fair Value
Due in one year or less	1,978
Due after one year through five years	3,148	3,791
Due after five years through ten years	7,529	7,156
Due after ten years		1,922
Fair Value	10,677	10,899
Mortgage-related securities
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	38,846	29,313
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	38,530	29,047
Investments in mutual funds and other equity securities
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	1,000	1,000
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	$ 979	$ 1,001

Loans Receivable - Loans and le

Loans Receivable - Loans and leases outstanding by category (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Loans Receivable
Mortgage loans held for sale	$ 37,695	$ 35,024
Total portfolio loans and leases	839,787	696,305
Total loans and leases	877,482	731,329
Net deferred loan origination (fees) costs	(1,681)	(1,668)
Residential mortgage
Loans Receivable
Residential mortgage fair value	11,422	10,157
Commercial and industrial
Loans Receivable
Total portfolio loans and leases	259,806	209,996
Consumer
Loans Receivable
Total portfolio loans and leases	701	1,022
Leases, net
Loans Receivable
Total portfolio loans and leases	1,335	762
Real estate loans
Loans Receivable
Total portfolio loans and leases	577,945	484,525
Real estate loans | Commercial mortgage
Loans Receivable
Total portfolio loans and leases	325,393	263,141
Real estate loans | Home equity lines and loans
Loans Receivable
Total portfolio loans and leases	82,286	84,039
Real estate loans | Residential mortgage
Loans Receivable
Total portfolio loans and leases	53,360	32,375
Real estate loans | Construction
Loans Receivable
Total portfolio loans and leases	$ 116,906	$ 104,970

Loans Receivable - Loans and _2

Loans Receivable - Loans and leases outstanding by rate type (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Loans Receivable
Loans with predetermined rates	$ 264,376	$ 202,317
Loans with adjustable or floating rates	613,106	529,012
Total loans and leases	877,482	731,329
Net deferred loan origination (fees) costs	$ (1,681)	$ (1,668)

Loans Receivable - Components o

Loans Receivable - Components of the net investment in leases (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Loans Receivable
Minimum lease payments receivable	$ 1,420	$ 793
Unearned lease income	(85)	(31)
Total	$ 1,335	$ 762

Loans Receivable - Age analysis

Loans Receivable - Age analysis of past due loans and leases (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Age Analysis of Past Due Loans and Leases
Total past due	$ 809	$ 974
Current	835,047	692,185
Total Accruing Loans and leases	835,856	693,159
Nonaccrual loans and leases	3,931	3,146
Loans and Leases Receivable, Gross, Total	$ 839,787	$ 696,305
Delinquency percentage	0.56%	0.59%
Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage fair value	$ 11,422	$ 10,157
Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total past due	217
Current	259,112	208,670
Total Accruing Loans and leases	259,329	208,670
Nonaccrual loans and leases	477	1,326
Loans and Leases Receivable, Gross, Total	$ 259,806	$ 209,996
Delinquency percentage	0.27%	0.63%
Consumer
Age Analysis of Past Due Loans and Leases
Current	$ 701	$ 1,022
Total Accruing Loans and leases	701	1,022
Loans and Leases Receivable, Gross, Total	701	1,022
Leases, net
Age Analysis of Past Due Loans and Leases
Total past due	49	98
Current	1,286	664
Total Accruing Loans and leases	1,335	762
Loans and Leases Receivable, Gross, Total	$ 1,335	$ 762
Delinquency percentage	3.67%	12.86%
Real estate loans
Age Analysis of Past Due Loans and Leases
Loans and Leases Receivable, Gross, Total	$ 577,945	$ 484,525
Real estate loans | Commercial mortgage
Age Analysis of Past Due Loans and Leases
Current	324,169	262,727
Total Accruing Loans and leases	324,169	262,727
Nonaccrual loans and leases	1,224	414
Loans and Leases Receivable, Gross, Total	$ 325,393	$ 263,141
Delinquency percentage	0.38%	0.16%
Real estate loans | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total past due	$ 348	$ 142
Current	81,855	83,760
Total Accruing Loans and leases	82,203	83,902
Nonaccrual loans and leases	83	137
Loans and Leases Receivable, Gross, Total	$ 82,286	$ 84,039
Delinquency percentage	0.52%	0.33%
Real estate loans | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due	$ 195	$ 734
Current	51,018	30,557
Total Accruing Loans and leases	51,213	31,291
Nonaccrual loans and leases	2,147	1,084
Loans and Leases Receivable, Gross, Total	$ 53,360	$ 32,375
Delinquency percentage	4.39%	5.62%
Real estate loans | Construction
Age Analysis of Past Due Loans and Leases
Current	$ 116,906	$ 104,785
Total Accruing Loans and leases	116,906	104,785
Nonaccrual loans and leases		185
Loans and Leases Receivable, Gross, Total	116,906	$ 104,970
Delinquency percentage		0.18%
Current | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage fair value	10,098	$ 9,334
30-89 days past due
Age Analysis of Past Due Loans and Leases
Total past due	809	963
30-89 days past due | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage fair value	187
30-89 days past due | Commercial and industrial
Age Analysis of Past Due Loans and Leases
Total past due	217
30-89 days past due | Leases, net
Age Analysis of Past Due Loans and Leases
Total past due	49	87
30-89 days past due | Real estate loans | Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Total past due	348	142
30-89 days past due | Real estate loans | Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due	195	734
90+days past due and still accruing
Age Analysis of Past Due Loans and Leases
Total past due		11
90+days past due and still accruing | Leases, net
Age Analysis of Past Due Loans and Leases
Total past due		11
Nonaccrual | Residential mortgage
Age Analysis of Past Due Loans and Leases
Residential mortgage fair value	$ 1,137	$ 823

Allowance for Loan and Lease _3

Allowance for Loan and Lease Losses (the "Allowance") - Roll-forward of allowance by portfolio segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	$ 6,709	$ 5,425
Charge-offs		(1,499)
Recoveries		622
Provision	1,577	2,161
Balance at end of period	8,053	6,709
Commercial mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	2,434	2,038
Charge-offs		(119)
Recoveries	7	218
Provision	768	297
Balance at end of period	3,209	2,434
Home equity lines and loans
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	280	460
Charge-offs	(221)	(42)
Recoveries	18	48
Provision	246	(186)
Balance at end of period	323	280
Residential mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	82	85
Recoveries	61	130
Provision	48	(133)
Balance at end of period	191	82
Construction
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	1,689	690
Provision	(62)	999
Balance at end of period	1,627	1,689
Commercial and industrial
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	2,214	1,973
Charge-offs	(244)	(1,338)
Recoveries	142	221
Provision	578	1,358
Balance at end of period	2,690	2,214
Consumer
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	5	2
Recoveries	4	5
Provision	(6)	(2)
Balance at end of period	3	5
Leases, net
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	5	5
Provision	5
Balance at end of period	10	5
Unallocated
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	6,709	172
Charge-offs	(465)
Recoveries	232
Provision	1,577	(172)
Balance at end of period	$ 8,053	$ 6,709

Allowance for Loan and Lease _4

Allowance for Loan and Lease Losses (the "Allowance") - Allowance allocated by portfolio segment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	$ 103	$ 1
Allowance on loans and leases collectively evaluated for impairment	7,950	6,708
Total	8,053	6,709	$ 5,425
Carrying value of loans and leases individually evaluated for impairment	5,799	4,685
Carrying value of loans and leases collectively evaluated for impairment	822,566	681,648
Total	828,365	686,333
Commercial mortgage
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	3,209	2,434
Total	3,209	2,434	2,038
Carrying value of loans and leases individually evaluated for impairment	1,929	1,533
Carrying value of loans and leases collectively evaluated for impairment	323,464	261,608
Total	325,393	263,141
Home equity lines and loans
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	323	280
Total	323	280	460
Carrying value of loans and leases individually evaluated for impairment	83	137
Carrying value of loans and leases collectively evaluated for impairment	82,203	83,902
Total	82,286	84,039
Residential mortgage
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	191	82
Total	191	82	85
Carrying value of loans and leases individually evaluated for impairment	969	249
Carrying value of loans and leases collectively evaluated for impairment	40,969	22,154
Total	41,938	22,403
Construction
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	1,627	1,689
Total	1,627	1,689	690
Carrying value of loans and leases individually evaluated for impairment	1,281	260
Carrying value of loans and leases collectively evaluated for impairment	115,625	104,710
Total	116,906	104,970
Commercial and industrial
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	103	1
Allowance on loans and leases collectively evaluated for impairment	2,587	2,213
Total	2,690	2,214	1,973
Carrying value of loans and leases individually evaluated for impairment	1,537	2,506
Carrying value of loans and leases collectively evaluated for impairment	258,269	207,490
Total	259,806	209,996
Consumer
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	3	5
Total	3	5	2
Carrying value of loans and leases collectively evaluated for impairment	701	1,022
Total	701	1,022
Leases, net
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	10	5
Total	10	5	5
Carrying value of loans and leases collectively evaluated for impairment	1,335	762
Total	1,335	762
Unallocated
Impaired Loans
Total	$ 8,053	$ 6,709	$ 172

Allowance for Loan and Lease _5

Allowance for Loan and Lease Losses (the "Allowance") - Carrying value based on credit quality indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 784,391	$ 662,146
Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	755,681	640,141
Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	18,990	19,766
Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	9,690	1,472
Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	30	767
Commercial mortgage | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	325,393	263,141
Commercial mortgage | Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	320,130	258,337
Commercial mortgage | Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,713	3,917
Commercial mortgage | Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	1,550	887
Home equity lines and loans | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	82,286	84,039
Home equity lines and loans | Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	82,121	83,902
Home equity lines and loans | Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	165	137
Construction | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	116,906	104,970
Construction | Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	114,249	103,118
Construction | Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	2,657	1,852
Commercial and industrial | Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	259,806	209,996
Commercial and industrial | Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	239,181	194,784
Commercial and industrial | Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	12,620	13,997
Commercial and industrial | Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	7,975	448
Commercial and industrial | Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 30	$ 767

Allowance for Loan and Lease _6

Allowance for Loan and Lease Losses (the "Allowance") - Carrying value based on performance status (Details) $ in Thousands	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Loans and Leases by Credit Ratings
Troubled debt restructurings	$ 4,266	$ 2,641
Carrying value of residential mortgage, consumer and leases	43,974	24,187
Loans receivable, net	11,422	10,157
Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	43,005	23,938
Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	969	249
Residential mortgage
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	41,938	22,403
Residential mortgage | Performing
Loans and Leases by Credit Ratings
Troubled debt restructurings	0	0
Carrying value of residential mortgage, consumer and leases	40,969	22,154
Residential mortgage | Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 969	$ 249
Number of loans	6	4
Loans receivable, net	$ 1,900	$ 826
Consumer
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	701	1,022
Consumer | Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	701	1,022
Leases, net
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	1,335	762
Leases, net | Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 1,335	$ 762

Allowance for Loan and Lease _7

Allowance for Loan and Lease Losses (the "Allowance") - Impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Impaired loans with related allowance:
Recorded investment	$ 676	$ 124
Principal balance	679	491
Related allowance	103	1
Average recorded investment	680	173
Impaired loans without related allowance:
Recorded investment	5,123	4,087
Principal balance	5,672	5,851
Average recorded investment	5,222	5,135
Grand Total
Recorded investment	5,799	4,211
Principal balance	6,351	6,342
Related allowance	103	1
Average recorded investment	5,902	5,308
Interest income recognized on performing impaired loans	327	248
Commercial mortgage
Impaired loans without related allowance:
Recorded investment	1,929	1,534
Principal balance	2,379	2,025
Average recorded investment	1,982	1,537
Commercial and industrial
Impaired loans with related allowance:
Recorded investment	676	124
Principal balance	679	491
Related allowance	103	1
Average recorded investment	680	173
Impaired loans without related allowance:
Recorded investment	861	1,907
Principal balance	945	3,180
Average recorded investment	885	2,945
Home equity lines and loans
Impaired loans without related allowance:
Recorded investment	83	137
Principal balance	89	137
Average recorded investment	84	137
Residential mortgage
Impaired loans without related allowance:
Recorded investment	969	249
Principal balance	978	249
Average recorded investment	978	249
Construction
Impaired loans without related allowance:
Recorded investment	1,281	260
Principal balance	1,281	260
Average recorded investment	$ 1,293	$ 267

Allowance for Loan and Lease _8

Allowance for Loan and Lease Losses (the "Allowance") - Troubled debt restructuring (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for Loan Losses (the Allowance)
TDRs included in nonperforming loans and leases	$ 1,219	$ 741
TDRs in compliance with modified terms	3,047	1,900
Total TDRs	$ 4,266	$ 2,641

Allowance for Loan and Lease _9

Allowance for Loan and Lease Losses (the "Allowance") - Loan and lease modifications granted categorized as TDRs (Details)	12 Months Ended
	Dec. 31, 2018USD ($)contract	Dec. 31, 2017USD ($)contract
Loan and lease modifications
Number of Contracts | contract	5	2
Pre-Modification Outstanding Recorded Investment	$ 2,973	$ 342
Post-Modification Outstanding Recorded Investment	2,973	342
Related Allowance	63
Loan and lease modifications granted and subsequently defaulted	$ 0	$ 0
Commercial mortgage
Loan and lease modifications
Number of Contracts | contract	1	1
Pre-Modification Outstanding Recorded Investment	$ 796	$ 177
Post-Modification Outstanding Recorded Investment	$ 796	$ 177
Land and Construction
Loan and lease modifications
Number of Contracts | contract	1
Pre-Modification Outstanding Recorded Investment	$ 1,628
Post-Modification Outstanding Recorded Investment	$ 1,628
Commercial and industrial
Loan and lease modifications
Number of Contracts | contract	3	1
Pre-Modification Outstanding Recorded Investment	$ 549	$ 165
Post-Modification Outstanding Recorded Investment	549	$ 165
Related Allowance	$ 63

Allowance for Loan and Lease_10

Allowance for Loan and Lease Losses (the "Allowance") - Loan and lease modifications made by type (Details) - contract	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Loan and lease modifications
Number of Contracts	5	2
Loan Term Extension
Loan and lease modifications
Number of Contracts	4	1
Interest Rate Change and Loan Term Extension
Loan and lease modifications
Number of Contracts	1	1
Commercial mortgage
Loan and lease modifications
Number of Contracts	1	1
Commercial mortgage | Loan Term Extension
Loan and lease modifications
Number of Contracts	1	1
Land and Construction
Loan and lease modifications
Number of Contracts	1
Land and Construction | Loan Term Extension
Loan and lease modifications
Number of Contracts	1
Commercial and industrial
Loan and lease modifications
Number of Contracts	3	1
Commercial and industrial | Loan Term Extension
Loan and lease modifications
Number of Contracts	2
Commercial and industrial | Interest Rate Change and Loan Term Extension
Loan and lease modifications
Number of Contracts	1	1

Bank Premises and Equipment (De

Bank Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Bank Premises and Equipment
Less: accumulated depreciation	$ (6,790)	$ (5,048)
Total	9,638	9,741
Depreciation	1,700	1,400
Building
Bank Premises and Equipment
Property, Plant and Equipment, Gross	3,824	3,824
Leasehold improvements
Bank Premises and Equipment
Property, Plant and Equipment, Gross	3,013	2,200
Land
Bank Premises and Equipment
Property, Plant and Equipment, Gross	600	600
Land Improvements
Bank Premises and Equipment
Property, Plant and Equipment, Gross	215	215
Furniture, fixtures and equipment
Bank Premises and Equipment
Property, Plant and Equipment, Gross	2,447	2,230
Computer equipment and data processing software
Bank Premises and Equipment
Property, Plant and Equipment, Gross	6,211	5,588
Construction in process
Bank Premises and Equipment
Property, Plant and Equipment, Gross	$ 118	$ 130

Deposits - Components of deposi

Deposits - Components of deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deposits:
Demand, noninterest bearing	$ 126,150	$ 100,454
Demand, interest-bearing	114,610	81,872
Savings accounts	3,097	303
Money market accounts	229,557	226,070
Time Deposits	278,716	218,410
Total deposits	752,130	627,109
Time deposits over FDIC Insurance Limit	$ 233,700	$ 147,800

Deposits - Scheduled maturities

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Scheduled maturities
2019	$ 252,816
2020	13,604
2021	10,678
2022	465
2023	1,153
Time Deposits, Total	$ 278,716	$ 218,410

Short-Term Borrowings and Lon_2

Short-Term Borrowings and Long-Term Debt - Short-term borrowings (Details)	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)	Apr. 05, 2017
Short-Term Borrowings
Short term borrowings	$ 114,300,000	$ 99,750,000
Interest rate (as a percent)			3.00%
Federal funds purchased | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Number of borrowing facilities | item	2
Short term borrowings	$ 0	0
Federal funds purchased, facility one | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	15,000,000
Federal funds purchased, facility two | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	24,000,000
Federal Reserve discount window | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	10,400,000
Short term borrowings	0
Short-term debt borrowings with interest rate 2.62% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 112,500,000
Interest rate (as a percent)	2.62%
Short-term borrowing with interest rate 1.70% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 1,800,000
Interest rate (as a percent)	1.70%
Duration of debt (in years)	4 years
Short-term borrowing with interest rate 1.54%
Short-Term Borrowings
Short term borrowings		$ 93,800,000
Short-term borrowing with interest rate 1.54% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Interest rate (as a percent)		1.54%
Short-term borrowing with interest rate 0.97% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		$ 1,200,000
Interest rate (as a percent)		0.97%
Duration of debt (in years)		2 years
Short-term borrowing with interest rate 1.92% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		$ 2,500,000
Interest rate (as a percent)		1.92%
Duration of debt (in years)		5 years
Short-term borrowing with interest rate 1.68% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		$ 1,000,000
Interest rate (as a percent)		1.68%
Duration of debt (in years)		4 years
Short-term borrowing with interest rate 1.55% | Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		$ 1,300,000
Interest rate (as a percent)		1.55%
Duration of debt (in years)		4 years

Short-Term Borrowings and Lon_3

Short-Term Borrowings and Long-Term Debt - Long-term debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Long Term Debt
Long-term debt	$ 6,238	$ 8,863
Federal Home Loan Bank of Pittsburgh | Mid-term Repo-fixed Maturing On 06/26/2019
Long Term Debt
Fixed interest rate (as a percent)	1.70%
Long-term debt		$ 1,800
Federal Home Loan Bank of Pittsburgh | Mid-term Repo-fixed Maturing On 08/10/2020
Long Term Debt
Fixed interest rate (as a percent)	2.76%	2.76%
Long-term debt	$ 5,000	$ 5,000
Federal Home Loan Bank of Pittsburgh | Acquisition Purchase Note
Long Term Debt
Fixed interest rate (as a percent)	3.00%	3.00%
Long-term debt	$ 1,238	$ 2,063
Federal Home Loan Bank of Pittsburgh | Line of credit
Long Term Debt
Maximum borrowing capacity	437,200	$ 380,200
Federal Home Loan Bank of Pittsburgh | Letters of credit
Long Term Debt
Proceeds from long term debt	$ 45,100

Subordinated Debentures (Detail

Subordinated Debentures (Details)	1 Months Ended			12 Months Ended
	Apr. 30, 2013USD ($)	Dec. 31, 2011USD ($)	Dec. 31, 2008USD ($)installment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2014tranche	Sep. 30, 2014USD ($)	Aug. 31, 2014USD ($)	Jun. 30, 2014USD ($)
Subordinated Borrowing [Line Items]
Debenture outstanding				$ 9,239,000	$ 13,308,000
Repayments of debt				4,069,000	$ 68,000
2008 Debentures
Subordinated Borrowing [Line Items]
Debt issued			$ 550,000
Conversion ratio			0.07
Interest rate			6.00%
Debenture outstanding				343,750
Repayments of debt				68,750
Number of equal principal installments | installment			8
2011 Debentures
Subordinated Borrowing [Line Items]
Debt issued		$ 1,425,000
Conversion ratio		0.0588
Interest rate		6.00%
Debenture outstanding				925,000
Repayments of debt				500,000
2013 Debentures
Subordinated Borrowing [Line Items]
Debt issued	$ 1,370,000
Conversion ratio	0.0455
Interest rate	6.50%
Debenture outstanding				870,000
Repayments of debt				500,000
2014 Debentures
Subordinated Borrowing [Line Items]
Debt issued							$ 7,000,000	$ 100,000	$ 3,000,000
Interest rate						7.25%
Debenture outstanding				7,100,000
Repayments of debt				$ 3,000,000
Number of tranches | tranche						3

Preferred Stock (Details)

Preferred Stock (Details) - USD ($)	Dec. 03, 2014	Mar. 07, 2014	Feb. 13, 2014	Dec. 03, 2009	Feb. 13, 2009	Dec. 31, 2017	Dec. 31, 2017	Dec. 31, 2018
Shares issued during period, values							$ 42,108,000
Stock redeemed						12,845
Preferred stock outstanding						$ 0	$ 0	$ 0
Private investors
Preferred stock sold		12,845
Series 2009 A Preferred Stock
Shares issued during period					6,200
Shares issued during period, values					$ 6,200,000
Period for which cumulative dividend per annum is paid					5 years
Dividend rate			9.00%		5.00%
Series 2009 B Preferred Stock
Shares issued during period					310
Warrants to purchase shares					310
Dividend rate					9.00%
Series 2009 C Preferred Stock
Shares issued during period				6,335
Shares issued during period, values				$ 6,335,000
Period for which cumulative dividend per annum is paid				5 years
Dividend rate	9.00%			5.00%

Lease Commitments (Details)

Lease Commitments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Lease Commitments
Number of branch spaces leased | item	17
Operating Leases, Rent Expense	$ 1,400	$ 1,700
Future minimum lease payments
2019	1,239
2020	927
2021	878
2022	717
2023	608
Thereafter	3,159
Total	$ 7,528

Stock-Based Compensation - 2016

Stock-Based Compensation - 2016 Plan (Details) - shares	7 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Stock-Based Compensation
Granted		79,450	48,750
2016 Plan
Stock-Based Compensation
Shares authorized	686,900	686,900
Stock dividend percentage	5.00%
Granted		128,450
Term of award		10 years
Vesting percentage		25.00%
Vesting period		3 years
2004 Plan
Stock-Based Compensation
Shares authorized	446,091	446,091
Stock dividend percentage		5.00%
Number of shares available for future grants	0	0

Stock-Based Compensation - prov

Stock-Based Compensation - provides information about options outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Shares
Outstanding, at the beginning of the period	211,915	169,358
Exercised	(14,508)	(1,037)
Granted	79,450	48,750
Expired		(3,187)
Forfeited	(2,787)	(1,969)
Outstanding, at the end of the period	274,070	211,915
Exercisable at the end of the period	169,492
Nonvested at the end of the period	104,578
Weighted Average Exercise Price
Outstanding, at the beginning of the period	$ 14.99	$ 13.70
Exercised	12.43	9.88
Granted	17.70	19
Expired		10.19
Forfeited	17.94	14.22
Outstanding, at the end of the period	15.88	14.99
Exercisable at the end of the period	14.89
Nonvested at the end of the period	17.48
Weighted Average Grant Date Fair Value
Outstanding, at the beginning of the period	4	3.97
Exercised	3.44	3.53
Granted	5.49	4.05
Expired		3.06
Forfeited	4.27	4.38
Outstanding, at the end of the period	4.46	4
Exercisable at December 31, 2018	4.24
Nonvested at December 31, 2018	$ 4.82
Weighted average remaining contractual life	7 years 6 months
Range of exercise prices, lower limit	$ 9.88
Range of exercise prices, upper limit	$ 19
Aggregate intrinsic value of options outstanding	$ 484
Aggregate intrinsic value of options exercisable	$ 484
Employee stock option
Weighted Average Grant Date Fair Value
Granted		$ 4.05

Stock-Based Compensation - weig

Stock-Based Compensation - weighted average assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2008
Stock-based compensation fair value assumptions
Weighted average fair value of options granted	$ 5.49	$ 4.05
Proceeds from exercise of stock options	$ 128
Forfeited	2,787	1,969
ASU 2016-09
Stock-based compensation fair value assumptions
Forfeited	2,787		2,787
Employee stock option
Stock-based compensation fair value assumptions
Expected dividends	0.00%	0.00%
Risk-free rate		2.17%
Expected life	5 years 9 months	7 years
Expected volatility		19.70%
Weighted average fair value of options granted		$ 4.05
Total stock compensation cost	$ 293	$ 203
Tax benefits recognized related to stock compensation cost	0
Unrecognized compensation cost	$ 362
Weighted average period in which the unrecognized compensation cost will be recognized	1 year 3 months 18 days
Employee stock option | Minimum
Stock-based compensation fair value assumptions
Risk-free rate	2.84%
Expected volatility	19.68%
Weighted average fair value of options granted	$ 4.87
Employee stock option | Maximum
Stock-based compensation fair value assumptions
Risk-free rate	3.06%
Expected volatility	26.11%
Weighted average fair value of options granted	$ 5.52

Income Taxes - federal and stat

Income Taxes - federal and state (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Federal:
Current	$ 2,413	$ 2,612
Deferred	(288)	(51)
Total	2,125	2,561
State:
Current	207	208
Deferred	(5)	(15)
Total	202	193
Totals	$ 2,327	$ 2,754

Income Taxes - Reconciliation (

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Federal income tax at statutory rate	$ 2,203	$ 1,967
State tax expense, net of federal benefit	160	127
Adjustment of net deferred tax assets for enacted change in tax laws and rate		737
Tax exempt interest	(92)	(156)
Bank owned life insurance	(63)	(94)
Incentive stock options	52	60
Stock offering costs		45
Other	67	68
Totals	$ 2,327	$ 2,754
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income tax at statutory rate (as a percent)	21.00%	34.00%
State tax expense, net of federal benefit (as a percent)	1.50%	2.00%
Adjustment of net deferred tax assets for enacted change in tax laws and rate (as a percent)		12.50%
Tax exempt interest (as a percent)	(0.90%)	(2.70%)
Bank owned life insurance (as a percent)	(0.60%)	(1.60%)
Incentive stock options (as a percent)	0.50%	1.00%
Stock offering costs (as a percent)		0.80%
Other (as a percent)	0.60%	1.60%
Effective income tax rate (as a percent)	22.10%	47.60%
Maximum
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income tax at statutory rate (as a percent)		35.00%

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for loan and lease losses	$ 1,802	$ 1,518
Intangibles	74	37
Accrued retirement	380	330
Unrealized loss on available for sale securities	118	87
Deferred rent	155	170
Mortgage repurchase reserve	15	31
Other	77	43
Total	2,621	2,216
Deferred tax liabilities:
Property and equipment	(524)	(571)
Mortgage pipeline fair-value adjustment	(80)	(79)
Hedge instrument fair-value adjustment	(16)	(53)
Prepaid expenses	(131)	(88)
Deferred loan costs	(234)	(113)
Total	(985)	(904)
Total	1,636	1,312
Tax law change		$ 737
Investment in low income housing tax credits	1,800
Tax credit recognized	109
Tax credit, amortization	155
Tax benefit from losses	$ 39

Transactions with Executive O_2

Transactions with Executive Officers, Directors and Principal Stockholders (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Transactions with Executive Officers, Directors and Principal Stockholders
Loans receivable from related parties	$ 3,500	$ 1,400
Advances from related party	5,600	2,400
Repayments to related party	3,500	2,600
Deposits of related parties	17,800	8,000
Subordinated debt held by related parties	616	1,200
Legal fees	$ 32	$ 45

Financial Instruments with Of_3

Financial Instruments with Off Balance Sheet Risk, Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Notional Amount	$ 66,566,000	$ 84,525,000
Delinquency period of loan	6 months
Indemnification or Repurchase of loan	$ 0
Provision for loan losses	68,000	138,000
Repurchase of loans	$ 0
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Repurchase or Indemnification Term of Loan	2 months
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Repurchase or Indemnification Term of Loan	3 months
Commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments	$ 290,614,000	220,180,000
Mortgage Loans Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments	$ 33,400,000	45,800,000
Mortgage Loans Commitments | Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitment term	30 days
Mortgage Loans Commitments | Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitment term	90 days
Letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet financial instruments	$ 5,158,000	1,809,000
Commitment term	12 months
Forward Commitments
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitment term	90 days
Notional Amount	$ 26,500,000	38,750,000
Forward Sale Of Mortgage Backed Securities
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Notional Amount	26,500,000	38,800,000
Forward Best Effort Sale Commitment
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Notional Amount	$ 9,300,000	$ 10,200,000

Recent Litigation (Details)

Recent Litigation (Details) $ in Thousands	Dec. 31, 2018USD ($)
Recent Litigation
Litigation reserve	$ 200

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Total capital (to risk-weighted assets)
Actual, Amount	$ 122,577	$ 117,239
For capital adequacy purpose, Amount	71,577	60,376
To be well capitalized under prompt corrective action provisions, Amount	$ 89,472	$ 75,469
Actual, Ratio	13.70%	15.53%
For capital adequacy purpose, Ratio	8.00%	8.00%
To be well capitalized under prompt corrective action provisions, Ratio	10.00%	10.00%
Common equity tier 1 capital (to risk-weighted assets)
Actual, Amount	$ 105,196	$ 101,661
For capital adequacy purpose, Amount	40,262	33,961
To be well capitalized under prompt corrective action provisions, Amount	$ 58,157	$ 49,055
Actual, Ratio	11.76%	12.86%
For capital adequacy purpose, Ratio	4.50%	4.50%
To be well capitalized under prompt corrective action provisions, Ratio	6.50%	6.50%
Tier 1 capital (to risk-weighted assets)
Actual, Amount	$ 105,196	$ 97,084
For capital adequacy purpose, Amount	53,683	45,282
To be well capitalized under prompt corrective action provisions, Amount	$ 71,577	$ 60,376
Actual, Ratio	11.76%	12.86%
For capital adequacy purpose, Ratio	6.00%	6.00%
To be well capitalized under prompt corrective action provisions, Ratio	8.00%	8.00%
Tier 1 capital (to average assets)
Actual, Amount	$ 105,196	$ 97,084
For capital adequacy purpose, Amount	37,578	31,582
To be well capitalized under prompt corrective action provisions, Amount	$ 46,972	$ 39,478
Actual, Ratio	11.20%	12.37%
For capital adequacy purpose, Ratio	4.00%	4.00%
To be well capitalized under prompt corrective action provisions, Ratio	5.00%	5.00%
Capital conservation buffer (as a percent)	1.875%	1.25%

Fair Value Measurements and D_3

Fair Value Measurements and Disclosures - Financial assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Measurements and Disclosures
Securities available for sale	$ 50,428	$ 40,006
State and municipal securities
Fair Value Measurements and Disclosures
Securities available for sale	10,919	9,958
Investments in mutual funds and other equity securities
Fair Value Measurements and Disclosures
Securities available for sale	979	1,001
Level 3 | Interest rate lock commitments
Fair Value Measurements and Disclosures
Derivative assets, Fair value	310
Recurring
Fair Value Measurements and Disclosures
Mortgage loans held-for-sale	37,695	35,024
Mortgage loans held-for-investment	11,422	9,972
Total	99,996	85,346
Recurring | U.S. government agency mortgage-backed securities
Fair Value Measurements and Disclosures
Securities available for sale	23,866	21,268
Recurring | U.S. government agency collateralized mortgage obligations
Fair Value Measurements and Disclosures
Securities available for sale	14,664	7,778
Recurring | State and municipal securities
Fair Value Measurements and Disclosures
Securities available for sale	10,919	9,959
Recurring | Investments in mutual funds and other equity securities
Fair Value Measurements and Disclosures
Securities available for sale	979	1,001
Recurring | Interest rate lock commitments
Fair Value Measurements and Disclosures
Derivative assets, Fair value	310	344
Recurring | Customer derivatives - Interest rate swaps
Fair Value Measurements and Disclosures
Derivative assets, Fair value	141
Recurring | Level 2
Fair Value Measurements and Disclosures
Mortgage loans held-for-sale	37,695	35,024
Mortgage loans held-for-investment	11,422	9,972
Total	99,686	85,002
Recurring | Level 2 | U.S. government agency mortgage-backed securities
Fair Value Measurements and Disclosures
Securities available for sale	23,866	21,268
Recurring | Level 2 | U.S. government agency collateralized mortgage obligations
Fair Value Measurements and Disclosures
Securities available for sale	14,664	7,778
Recurring | Level 2 | State and municipal securities
Fair Value Measurements and Disclosures
Securities available for sale	10,919	9,959
Recurring | Level 2 | Investments in mutual funds and other equity securities
Fair Value Measurements and Disclosures
Securities available for sale	979	1,001
Recurring | Level 2 | Customer derivatives - Interest rate swaps
Fair Value Measurements and Disclosures
Derivative assets, Fair value	141
Recurring | Level 3
Fair Value Measurements and Disclosures
Total	310	344
Recurring | Level 3 | Interest rate lock commitments
Fair Value Measurements and Disclosures
Derivative assets, Fair value	$ 310	$ 344

Fair Value Measurements and D_4

Fair Value Measurements and Disclosures - Financial assets measured at fair value on non-recurring basis (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial assets measured at fair value on a nonrecurring basis
Impaired loans	$ 5,799	$ 4,685
Other real estate owned		437
Total	5,799	5,122
Level 3
Financial assets measured at fair value on a nonrecurring basis
Impaired loans	5,799	4,685
Other real estate owned		437
Total	$ 5,799	$ 5,122

Fair Value Measurements and D_5

Fair Value Measurements and Disclosures - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financial assets:
Securities available-for-sale	$ 50,428	$ 40,006
Securities held-to-maturity	12,655	12,869
Loans receivable, net	11,422	10,157
Level 1 | Carrying amount
Financial assets:
Cash and cash equivalents	23,952	35,506
Level 1 | Fair value
Financial assets:
Cash and cash equivalents	23,952	35,506
Level 2 | Carrying amount
Financial assets:
Securities available-for-sale	50,428	40,006
Securities held-to-maturity	12,741	12,861
Mortgage loans held-for-sale	37,695	35,024
Mortgage loans held-for-investment	11,422	9,972
Financial liabilities:
Deposits	752,130	627,109
Short-term borrowings	114,300	99,750
Long-term debt	6,238	8,863
Subordinated debentures	9,239	13,308
Accrued interest payable	305	216
Level 2 | Carrying amount | Forward Commitments
Financial liabilities:
Derivatives	176	75
Level 2 | Carrying amount | Customer derivatives - Interest rate swaps
Financial assets:
Derivative asset	141
Financial liabilities:
Derivatives	161
Level 2 | Fair value
Financial assets:
Securities available-for-sale	50,428	40,006
Securities held-to-maturity	12,655	12,869
Mortgage loans held-for-sale	37,695	35,024
Mortgage loans held-for-investment	11,422	9,972
Financial liabilities:
Deposits	744,300	626,635
Short-term borrowings	114,300	99,750
Long-term debt	6,240	8,865
Subordinated debentures	9,396	12,883
Accrued interest payable	305	216
Level 2 | Fair value | Forward Commitments
Financial liabilities:
Derivatives	176	75
Level 2 | Fair value | Customer derivatives - Interest rate swaps
Financial assets:
Derivative asset	141
Financial liabilities:
Derivatives	161
Level 3 | Interest rate lock commitments
Financial assets:
Derivative asset	310
Level 3 | Carrying amount
Financial assets:
Loans receivable, net	818,631	677,956
Restricted investment in bank stock	7,002	6,814
Accrued interest receivable	2,889	2,536
Level 3 | Carrying amount | Interest rate lock commitments
Financial assets:
Derivative asset	310	344
Financial liabilities:
Derivatives	40	34
Level 3 | Fair value
Financial assets:
Loans receivable, net	820,512	669,852
Restricted investment in bank stock	7,002	6,814
Accrued interest receivable	2,889	2,536
Level 3 | Fair value | Interest rate lock commitments
Financial assets:
Derivative asset	310	344
Financial liabilities:
Derivatives	$ 40	$ 34

Fair Value Measurements and D_6

Fair Value Measurements and Disclosures - Off-balance sheet financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 290,614	$ 220,180
Letters of credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	5,158	1,809
Carrying amount | Level 2 | Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	290,614	220,180
Carrying amount | Level 2 | Letters of credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	5,158	1,809
Fair value | Level 2 | Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 310	$ 344

Fair Value Measurements and D_7

Fair Value Measurements and Disclosures - Fair Value Level 3 Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of the period	$ 344	$ 721
(Decrease) increase in value	(34)	(377)
Balance at end of the period	$ 310	$ 344

Fair Value Measurements and D_8

Fair Value Measurements and Disclosure - Valuation Techniques (Details) - Level 3 - Interest rate lock commitments	12 Months Ended
	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset	$ 310,000
Derivative Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueConsensusPricingModelMember
Derivative Asset, Measurement Input [Extensible List]	mrbk:LoanOriginationSucessRateMember
Gain in fair value of derivative asset	$ 40,000	$ 367,000
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	99
Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	89.27

Derivative Financial Instrume_3

Derivative Financial Instruments - Notional amounts and fair values of derivative financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Derivative Financial Instruments
Notional Amount	$ 66,566	$ 84,525
Asset (Liability) Fair Value	74	235
Interest rate lock commitments
Derivative Financial Instruments
Notional Amount	33,406	45,775
Asset (Liability) Fair Value	270	310
Interest rate lock commitments | Other Assets
Derivative Financial Instruments
Notional Amount	27,188	38,574
Asset (Liability) Fair Value	310	344
Interest rate lock commitments | Other Liabilities
Derivative Financial Instruments
Notional Amount	6,218	7,201
Asset (Liability) Fair Value	(40)	(34)
Forward Commitments
Derivative Financial Instruments
Notional Amount	26,500	38,750
Asset (Liability) Fair Value	(176)	(75)
Forward Commitments | Other Assets
Derivative Financial Instruments
Notional Amount		6,500
Asset (Liability) Fair Value		5
Forward Commitments | Other Liabilities
Derivative Financial Instruments
Notional Amount	26,500	32,250
Asset (Liability) Fair Value	(176)	$ (80)
Customer derivatives - Interest rate swaps
Derivative Financial Instruments
Notional Amount	6,660
Asset (Liability) Fair Value	(20)
Customer derivatives - Interest rate swaps | Other Assets
Derivative Financial Instruments
Notional Amount	3,330
Asset (Liability) Fair Value	141
Customer derivatives - Interest rate swaps | Other Liabilities
Derivative Financial Instruments
Notional Amount	3,330
Asset (Liability) Fair Value	$ (161)

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair value gains and losses on derivative financial instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instrument	$ (161)	$ (427)
Realized gains/(losses) on derivatives	627	(724)
Interest rate lock commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instrument	(40)	(367)
Forward Commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instrument	(101)	$ (60)
Customer derivatives - Interest rate swaps
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instrument	$ (20)

Segment (Details)

Segment (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)loanfacility	Dec. 31, 2017USD ($)
Segments
Number of central loan production facilities | loanfacility	1
Non-interest Income
Net interest income	$ 32,657	$ 28,938
Provision for loan losses	(1,577)	(2,161)
Net interest income after provision	31,080	26,777
Non-interest Income
Mortgage banking income	26,187	32,836
Wealth management income	3,917	2,872
Net change in fair values	(368)	(313)
Other	2,619	1,305
Total non-interest income	32,355	36,700
Non-interest Expense
Salaries and employee benefits	34,794	39,126
Occupancy and equipment	3,779	3,799
Professional fees	2,162	2,125
Advertising and promotion	2,355	2,248
Other	9,855	10,393
Total non-interest expenses	52,945	57,691
Operating Margin	10,490	5,786
Total Assets	997,388	856,035
Bank
Non-interest Income
Net interest income	31,807	28,381
Provision for loan losses	(1,577)	(2,161)
Net interest income after provision	30,230	26,220
Non-interest Income
Mortgage banking income	124	128
Wealth management income	200	223
Other	1,641	1,374
Total non-interest income	1,965	1,725
Non-interest Expense
Salaries and employee benefits	13,803	13,322
Occupancy and equipment	2,114	2,200
Professional fees	1,709	1,435
Advertising and promotion	1,197	1,061
Other	5,285	5,226
Total non-interest expenses	24,108	23,244
Operating Margin	8,087	4,701
Total Assets	951,132	813,437
Wealth
Non-interest Income
Net interest income	289	148
Net interest income after provision	289	148
Non-interest Income
Wealth management income	3,717	2,649
Total non-interest income	3,717	2,649
Non-interest Expense
Salaries and employee benefits	1,897	1,338
Occupancy and equipment	131	79
Professional fees	21	130
Advertising and promotion	432	322
Other	752	441
Total non-interest expenses	3,233	2,310
Operating Margin	773	487
Total Assets	6,146	6,201
Mortgage
Non-interest Income
Net interest income	561	409
Net interest income after provision	561	409
Non-interest Income
Mortgage banking income	26,063	32,708
Net change in fair values	(368)	(313)
Other	978	(69)
Total non-interest income	26,673	32,326
Non-interest Expense
Salaries and employee benefits	19,094	24,466
Occupancy and equipment	1,534	1,520
Professional fees	432	560
Advertising and promotion	726	865
Other	3,818	4,726
Total non-interest expenses	25,604	32,137
Operating Margin	1,630	598
Total Assets	$ 40,110	$ 36,397

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2008
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Forfeited	2,787	1,969
ASU 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Forfeited	2,787		2,787

Parent Company Financial Stat_3

Parent Company Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Condensed Balance Sheet Statements, Captions [Line Items]
Total assets	$ 997,388	$ 856,035
Stockholders’ equity:
Common stock, $1 par value. Authorized 10,000,000 shares; issued and outstanding 6,406,795 and 6,392,287 as of December 31, 2018 and December 31, 2017	6,407	6,392
Surplus	79,919	79,501
Retained earnings	23,931	15,768
Accumulated other comprehensive loss	(390)	(298)
Total stockholders’ equity	109,867	101,363
Total liabilities and stockholders’ equity	$ 997,388	$ 856,035
Common stock, par value	$ 1	$ 1
Common stock, Authorized shares	10,000,000	10,000,000
Common Stock, Shares, Issued	6,406,795	6,406,795
Common Stock, Shares, Outstanding	6,392,287	6,392,287
Parent Company | Reportable Legal Entities
Condensed Balance Sheet Statements, Captions [Line Items]
Investment in subsidiaries	$ 109,867
Total assets	109,867
Stockholders’ equity:
Common stock, $1 par value. Authorized 10,000,000 shares; issued and outstanding 6,406,795 and 6,392,287 as of December 31, 2018 and December 31, 2017	6,407
Surplus	79,919
Retained earnings	23,931
Accumulated other comprehensive loss	(390)
Total stockholders’ equity	109,867
Total liabilities and stockholders’ equity	$ 109,867
Common stock, par value	$ 1	$ 1
Common stock, Authorized shares	10,000,000	10,000,000
Common Stock, Shares, Issued	6,406,795	6,392,287
Common Stock, Shares, Outstanding	6,406,795	6,392,287

Parent Company Financial Stat_4

Parent Company Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Income Statements, Captions [Line Items]
Total operating income	$ 44,064	$ 35,720
Expenses	11,407	6,782
Income before income taxes	10,490	5,786
Income tax (benefit) expense	2,327	2,754
Net income	8,163	3,032
Total other comprehensive income	(92)	59
Total comprehensive income	8,071	$ 3,091
Parent Company | Reportable Legal Entities
Condensed Income Statements, Captions [Line Items]
Equity in undistributed income of subsidiaries	8,163
Income before income taxes	8,163
Net income	8,163
Total other comprehensive income	(92)
Total comprehensive income	$ 8,071

Parent Company Financial Stat_5

Parent Company Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Condensed Cash Flow Statements, Captions [Line Items]
Net income	$ 8,163	$ 3,032
Adjustments to reconcile net income to net cash provided by operating activities:
Net cash provided by operating activities	11,030	10,479
Cash flows from investing activities:
Net cash used in investing activities	(155,601)	(109,641)
Cash flows from financing activities:
Net cash provided by financing activities	133,017	115,796
Net change in cash and cash equivalents	(11,554)	16,634
Cash and cash equivalents at beginning of period	35,506	18,872
Cash and cash equivalents at end of period	23,952	$ 35,506
Parent Company | Reportable Legal Entities
Condensed Cash Flow Statements, Captions [Line Items]
Net income	8,163
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	$ (8,163)