Meridian (MRBK) 10-Q9 Nov 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Nov. 08, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	000-55983
Entity Registrant Name	Meridian Corp
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	83-1561918
Entity Address, Address Line One	9 Old Lincoln Highway
Entity Address, City or Town	Malvern
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19355
City Area Code	484
Local Phone Number	568-5000
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	MRBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,132,403
Entity Central Index Key	0001750735
Amendment Flag	false
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Cash and due from banks	$ 74,941	$ 19,106
Federal funds sold	928	20,265
Cash and cash equivalents	75,869	39,371
Securities available-for-sale (amortized cost of $101,471 and $58,874 as of September 30, 2020 and December 31, 2019)	103,358	58,856
Securities held-to-maturity (fair value of $6,916 and $9,003 as of September 30, 2020 and December 31, 2019)	6,544	8,780
Equity investments	1,034	1,009
Mortgage loans held for sale (amortized cost of $220,381 and $33,363 as of September 30, 2020 and December 31, 2019), at fair value	225,150	33,704
Loans, net of fees and costs (includes $11,366 and $10,546 of loans at fair value, amortized cost of $10,849 and $10,186 as of September 30, 2020 and December 31, 2019)	1,306,846	964,710
Allowance for loan and lease losses	(16,573)	(9,513)
Loans, net of the allowance for loan and lease losses	1,290,273	955,197
Restricted investment in bank stock	7,650	8,072
Bank premises and equipment, net	8,065	8,636
Bank owned life insurance	12,069	11,859
Accrued interest receivable	4,666	3,148
Other real estate owned		120
Deferred income taxes	398	2,115
Goodwill	899	899
Intangible assets	3,668	3,874
Other assets	19,005	14,379
Total assets	1,758,648	1,150,019
Deposits:
Noninterest bearing	193,851	139,450
Interest bearing	1,015,173	711,718
Total deposits	1,209,024	851,168
Short-term borrowings	104,239	123,676
Long-term debt	250,131	3,123
Subordinated debentures	40,814	40,962
Accrued interest payable	2,258	1,088
Other liabilities	20,350	9,307
Total liabilities	1,626,816	1,029,324
Stockholders' equity:
Common stock, $1 par value. Authorized 10,000,000 shares; issued 6,450,353 and 6,407,685 as of September 30, 2020 and December 31, 2019	6,450	6,408
Surplus	80,981	80,255
Treasury stock - 320,000 and 3,375 shares at September 30, 2020 and December 31, 2019, respectively	(5,828)	(62)
Unearned common stock held by employee stock ownership plan	(2,000)
Retained earnings	50,775	34,097
Accumulated other comprehensive income (loss)	1,454	(3)
Total stockholders' equity	131,832	120,695
Total liabilities and stockholders' equity	$ 1,758,648	$ 1,150,019

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Available-for-sale, Amortized Cost	$ 101,471	$ 58,874
Securities held-to-maturity	6,916	9,003
Mortgage loans held for sale, amortized cost	220,381	33,363
Loans at fair value	11,366	10,546
Loans at amortized cost	$ 10,849	$ 10,186
Common stock, par value	$ 1	$ 1
Common stock, Authorized shares	10,000,000	10,000,000
Common Stock, Shares, Issued	6,450,353	6,407,685
Treasury stock shares held	320,000	3,375

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest income:
Loans, including fees	$ 15,321	$ 13,152	$ 43,048	$ 37,686
Securities:
Taxable	251	336	920	892
Tax-exempt	305	64	698	273
Cash and cash equivalents	3	38	63	136
Total interest income	15,880	13,590	44,729	38,987
Interest expense:
Deposits	2,235	3,633	8,064	10,584
Borrowings	930	683	2,687	1,731
Total interest expense	3,165	4,316	10,751	12,315
Net interest income	12,715	9,274	33,978	26,672
Provision for loan losses	3,956	705	7,139	938
Net interest income after provision for loan losses	8,759	8,569	26,839	25,734
Non-interest income:
Mortgage banking income	21,812	7,315	45,395	17,617
Wealth management income	951	922	2,825	2,698
SBA loan income	641	635	1,821	1,150
Earnings on investment in life insurance	70	74	210	218
Net change in the fair value of derivative instruments	3,028		6,346	(16)
Net change in the fair value of loans held-for-sale	2,932	54	4,424	(82)
Net change in the fair value of loans held-for-investment	93	(24)	174	390
Net loss on hedging activity	(2,637)	(300)	(7,363)	(792)
Net gain on sale of investment securities available-for-sale	1,290	74	1,345	212
Other	852	431	1,718	1,179
Total non-interest income	29,060	9,209	56,972	22,656
Non-interest expenses:
Salaries and employee benefits	20,447	9,319	46,529	25,789
Occupancy and equipment	1,108	946	3,159	2,845
Loan expenses	492	192	1,100	472
Professional fees	681	820	2,118	2,000
Advertising and promotion	781	574	1,996	1,769
Data processing	460	343	1,260	990
Information technology	394	334	1,100	919
Pennsylvania bank shares tax	254	169	734	495
Other	1,217	850	3,156	3,701
Total non-interest expenses	25,834	13,547	61,152	38,980
Income before income taxes	11,985	4,231	22,659	9,410
Income tax expense	2,773	914	5,218	2,065
Net income	$ 9,212	$ 3,317	$ 17,441	$ 7,345
Basic earnings per common share	$ 1.51	$ 0.52	$ 2.83	$ 1.15
Diluted earnings per common share	$ 1.51	$ 0.52	$ 2.82	$ 1.14
Wealth Management Income
Non-interest income:
Revenue from contracts with customers	$ 951	$ 922	$ 2,825	$ 2,698
Service Charges
Non-interest income:
Revenue from contracts with customers	$ 28	$ 28	$ 77	$ 82

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income:	$ 9,212	$ 3,317	$ 17,441	$ 7,345
Net change in unrealized gains on investment securities available for sale:
Net unrealized gains arising during the period, net of tax expense of $144, $19, $761 and $220, respectively	304	64	2,489	767
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of ($301), ($16), ($313), and ($46), respectively	(989)	(58)	(1,032)	(166)
Unrealized investment (losses) gains, net of tax (benefit) expense of $(157), $3, $448, and $174, respectively	(685)	6	1,457	601
Total other comprehensive (loss) income	(685)	6	1,457	601
Total comprehensive income	$ 8,527	$ 3,323	$ 18,898	$ 7,946

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Tax expense (benefit) on unrealized gains arising during the period	$ 144	$ 19	$ 761	$ 220
Tax expense (benefit) on reclassification adjustment for net gains on sales realized in net income	(301)	(16)	(313)	(46)
Tax expense (benefit) on unrealized investment gains (losses)	$ (157)	$ 3	$ 448	$ 174

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common stock	Surplus	Treasury Stock	Unearned Common Stock ESOP	Retained Earnings	Accumulated Other Comprehensive Income (loss)	Total
Balance beginning of the period (Footnote 1) at Dec. 31, 2018	$ 6,407	$ 79,919			$ 23,616	$ (390)	$ 109,552
Comprehensive income:
Net income					2,006		2,006
Change in unrealized gains on securities available-for-sale, net of tax						373	373
Total comprehensive income							2,379
Stock based compensation		61					61
Balance ending of the period at Mar. 31, 2019	6,407	79,980			25,622	(17)	111,992
Balance beginning of the period (Footnote 1) at Dec. 31, 2018	6,407	79,919			23,616	(390)	109,552
Comprehensive income:
Net income							7,345
Change in unrealized gains on securities available-for-sale, net of tax							601
Total comprehensive income							7,946
Balance ending of the period at Sep. 30, 2019	6,408	80,192			30,961	211	117,772
Balance beginning of the period (Footnote 1) at Mar. 31, 2019	6,407	79,980			25,622	(17)	111,992
Comprehensive income:
Net income					2,022		2,022
Change in unrealized gains on securities available-for-sale, net of tax						222	222
Total comprehensive income							2,244
Stock based compensation		143					143
Balance ending of the period at Jun. 30, 2019	6,407	80,123			27,644	205	114,379
Comprehensive income:
Net income					3,317		3,317
Change in unrealized gains on securities available-for-sale, net of tax						6	6
Total comprehensive income							3,323
Common stock issued through share-based awards and exercises	1	7					8
Stock based compensation		62					62
Balance ending of the period at Sep. 30, 2019	6,408	80,192			30,961	211	117,772
Balance beginning of the period (Footnote 1) at Dec. 31, 2019	6,408	80,255	$ (62)		34,097	(3)	120,695
Comprehensive income:
Net income					2,516		2,516
Change in unrealized gains on securities available-for-sale, net of tax						429	429
Total comprehensive income							2,945
Common stock issued through share-based awards and exercises	6	26					32
Net purchase of treasury stock through publicly announced plans		63	(5,766)				(5,703)
Stock based compensation		64					64
Balance ending of the period at Mar. 31, 2020	6,414	80,408	(5,828)		36,613	426	118,033
Balance beginning of the period (Footnote 1) at Dec. 31, 2019	6,408	80,255	(62)		34,097	(3)	120,695
Comprehensive income:
Net income							17,441
Change in unrealized gains on securities available-for-sale, net of tax							1,457
Total comprehensive income							18,898
Balance ending of the period at Sep. 30, 2020	6,450	80,981	(5,828)	$ (2,000)	50,775	1,454	131,832
Balance beginning of the period (Footnote 1) at Mar. 31, 2020	6,414	80,408	(5,828)		36,613	426	118,033
Comprehensive income:
Net income					5,713		5,713
Change in unrealized gains on securities available-for-sale, net of tax						1,713	1,713
Total comprehensive income							7,426
Stock based compensation		59					59
Balance ending of the period at Jun. 30, 2020	6,414	80,467	(5,828)		42,326	2,139	125,518
Comprehensive income:
Net income					9,212		9,212
Change in unrealized gains on securities available-for-sale, net of tax						(685)	(685)
Total comprehensive income							8,527
Dividends paid or accrued, $0.125 per share					(763)		(763)
Shares purchased for ESOP plan (133,601)				(2,000)			(2,000)
Common stock issued through share-based awards and exercises	36	337					373
Stock based compensation		177					177
Balance ending of the period at Sep. 30, 2020	$ 6,450	$ 80,981	$ (5,828)	$ (2,000)	$ 50,775	$ 1,454	$ 131,832

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Sep. 30, 2020$ / sharesshares
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Common Stock, Dividends, Per Share, Cash Paid \| $ / shares	$ 0.125
Shares purchased for ESOP plan (in shares) \| shares	(133,601)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	$ 17,441	$ 7,345
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of investment securities	(1,345)	(212)
Depreciation and amortization	(992)	1,581
Loss on disposal of premises and equipment		14
Net amortization of investment premiums and discounts	238	(22)
Provision for loan losses	7,139	938
Amortization of issuance costs on subordinated debt	83
Compensation expense for stock options	300	266
Net change in fair value of loans held for investment	(174)	(390)
Net change in fair value of loans held for sale	(4,424)	82
Net change in fair value of derivative instruments	(6,346)	16
Gain on sale of OREO	(6)
SBA loan income	(1,821)	(1,150)
Proceeds from sale of loans	1,356,637	432,831
Loans originated for sale	(1,498,264)	(421,092)
Mortgage banking income	(45,395)	(19,139)
Increase in accrued interest receivable	(1,518)	(266)
Increase in other assets	5,511	91
Earnings from investment in life insurance	(210)	(218)
Deferred income tax	1,274	(249)
Increase in accrued interest payable	1,170	364
Increase in other liabilities	9,054	3,629
Net cash (used) provided by operating activities	(161,648)	4,419
Activity in available-for-sale securities:
Maturities, repayments and calls	6,319	11,090
Sales	44,592	19,366
Purchases	(92,476)	(29,027)
Proceeds from sale of OREO	126
Settlement of forward contracts		(85)
Decrease in restricted stock	422	(1,235)
Net increase in loans	(339,459)	(104,640)
Purchases of premises and equipment	(651)	(634)
Net cash used in investing activities	(378,987)	(105,165)
Cash flows from financing activities:
Net increase in deposits	357,856	106,331
Increase (decrease) in short term borrowings	(31,928)	14,165
Decrease in short term borrowings with original maturity > 90 days	12,902
Repayment of acquistion note payable	(413)	(413)
Repayment of long term debt (Subordinated debt)		(63)
Proceeds from long term debt	247,008	(2,702)
Issuance costs on subordinated debt	(231)
Net purchase of treasury stock through publicly announced plans	(5,703)
Dividends paid	(763)
Purchase of common shares for ESOP	(2,000)
Share based awards and exercises	405	8
Net cash provided by financing activities	577,133	117,326
Net change in cash and cash equivalents	36,498	16,580
Cash and cash equivalents at beginning of period	39,371	23,952
Cash and cash equivalents at end of period	75,869	40,532
Supplemental disclosure of cash flow information:
Interest	9,581	11,951
Income taxes	2,490	1,539
Supplemental disclosure of cash flow information:
Transfers from loans and leases to real estate owned		120
Transfers from loans held for sale to loans held for investment		3,602
Net loans sold, not settled	$ (1,657)	$ (5,580)

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2020
Basis of Presentation
Basis of Presentation	The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. 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 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, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the Securities and Exchange Commission (including our Annual Report on Form 10-K for the year ended December 31, 2019) and, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 or for any other period. Impact of COVID-19 COVID-19 has adversely impacted a broad range of industries in which the Corporation’s customers operate and could impair their ability to fulfill their financial obligations to the Corporation. The continued spread of COVID-19 throughout the U.S. has caused significant disruption in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Corporation operates. Although the Corporation’s current estimates contemplate current conditions and how we expect them to change in the future, due to the prolonged impact that the COVID-19 has had on financial markets and the economy both locally and nationally, it is reasonably possible that this could materially affect these significant estimates and the Corporation’s results of operations and financial condition. The Corporation has continued to work with customers directly affected by COVID-19 since it was declared a pandemic, to provide short-term assistance in accordance with regulatory guidelines. While the Corporation has factored the ongoing impacts of COVID-19 into the allowance for loan and lease losses calculation as of September 30, 2020, should economic conditions continue to worsen, the Corporation could experience further increases in its required allowance for loan and lease losses and record additional provision for loan loss expense. It is possible that the Corporation’s asset quality measures could worsen at future measurement periods due to the continuing effects of COVID-19 may have on borrowers. COVID-19 could cause a further and sustained decline in the Corporation’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to perform goodwill and intangible asset impairment tests and result in an impairment charge being recorded for that period. In the event that the Corporation concludes that all or a portion of its goodwill or intangible assets are impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security, ( the “CARES Act”) was signed into law. It contained substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The CARES Act included the Paycheck Protection Program (the “PPP”), a $349 billion program designed to aid small and medium sized businesses through federally guaranteed loans distributed through banks. The Paycheck Protection Program and Health Care Enhancement Act (the “PPP/HCEA Act”) was signed into law on April 24, 2020. The PPP/HCEA Act authorized an additional $310 billion of funding under the CARES Act for loans among other provisions. On July 4, 2020, legislation was passed to extend the application period for the program through August 8, 2020. These loans are intended to cover eight weeks of payroll and other permitted expenses to help those businesses remain viable.

Earnings per Common Share

Earnings per Common Share	9 Months Ended
Earnings per Common Share	Sep. 30, 2020
Earnings per Common Share
Earnings per Common Share	(2) Earnings per Common Share 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. The difference between common shares issued and basic weighted average common shares outstanding, for purposes of calculating basic earnings per share, is a result of subtracting unallocated employee stock ownership plan (“ESOP”) shares. 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. Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2020 2019 2020 2019 Numerator: Net income available to common stockholders $ 9,212 3,317 $ 17,441 7,345 Denominator for basic earnings per share - weighted average shares outstanding 6,099 6,407 6,172 6,407 Effect of dilutive common shares 11 30 21 29 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,110 6,437 6,193 6,436 Basic earnings per share $ 1.51 0.52 $ 2.83 1.15 Diluted earnings per share $ 1.51 0.52 $ 2.82 1.14 Antidilutive shares excluded from computation of average dilutive earnings per share 265 199 192 199

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
Goodwill and Other Intangibles	Sep. 30, 2020
Goodwill and Other Intangibles
Goodwill and Other Intangibles	(3) Goodwill and Other Intangibles The Corporation’s goodwill and intangible assets are detailed below: Balance Balance Amortization December 31, Amortization September 30, Period (dollars in thousands) 2019 Expense 2020 (in years) Goodwill - Wealth $ 899 — 899 Indefinite Total Goodwill 899 — 899 Intangible assets - trade name 266 — 266 Indefinite Intangible assets - customer relationships 3,523 (154) 3,369 20 Intangible assets - non competition agreements 85 (52) 33 4 Total Intangible Assets 3,874 (206) 3,668 Total $ 4,773 (206) 4,567 Accumulated amortization on intangible assets was $956 thousand and $750 thousand as of September 30, 2020 and December 31, 2019, respectively. The Corporation performs an evaluation annually, or more frequently if a triggering event occurs, of whether any impairment of the goodwill and other intangible assets had occurred in accordance with ASC 350, “Intangibles - Goodwill and Other”. For the period from January 1, 2020 through September 30, 2020, the Corporation determined that no impairment existed.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 2020
Securities
Securities	(4) Securities The amortized cost and fair value of securities as of September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. asset backed securities $ 24,705 211 (172) 24,744 U.S. government agency mortgage-backed securities 3,919 192 — 4,111 U.S. government agency collateralized mortgage obligations 21,375 1,108 — 22,483 State and municipal securities 48,789 805 (255) 49,339 Corporate bonds 2,683 3 (5) 2,681 Total securities available-for-sale $ 101,471 2,319 (432) 103,358 Securities held to maturity: State and municipal securities 6,544 372 — 6,916 Total securities held-to-maturity $ 6,544 372 — 6,916 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. asset backed securities $ 11,967 — (101) 11,866 U.S. government agency mortgage-backed securities 5,457 66 (26) 5,497 U.S. government agency collateralized mortgage obligations 35,096 300 (173) 35,223 State and municipal securities 6,354 — (84) 6,270 Total securities available-for-sale $ 58,874 366 (384) 58,856 Securities held to maturity: State and municipal securities 8,780 223 — 9,003 Total securities held-to-maturity $ 8,780 223 — 9,003 At September 30, 2020, the Corporation had one U.S. government sponsored agency collateralized mortgage obligations, fourteen U.S. asset backed securities, fifteen State and municipal securities, and two Corporate bonds in unrealized loss positions. At December 31, 2019, the Corporation had nine U.S. asset backed securities, one U.S. Government sponsored agency mortgage-backed security, fifteen U.S. Government sponsored agency collateralized mortgage obligations, and six State and municipal securities in unrealized loss positions. Although the Corporation’s investment portfolio overall is in a net unrealized gain position at September 30, 2020, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and the Corporation does 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. At September 30, 2020 and December 31, 2019, no held to maturity securities held by the Corporation were in an unrealized loss position. Proceeds from the sale of available for sale investment securities totaled $26.4 million and $44.6 million for the three and nine months ended September 30, 2020, respectively, resulting in a gross gain on sale of $1.3 million thousand and no gross loss on sale for the three months ended September 30, 2020, and a gross gain on sale of $1.5 million and a gross loss on sale of $202 thousand for the nine months ended September 30, 2020. Proceeds from the sale of available for sale investment securities totaled $2.7 million and $19.4 million for the three and nine months ended September 30, 2019, respectively, resulting in a gross gain on sale of $74 thousand and no gross losses for the three months ended September 30, 2019, and gross gain on sale of $254 thousand and a gross loss on sale of $42 thousand for the nine months ended September 30, 2019. 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 September 30, 2020 and December 31, 2019: September 30, 2020 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. asset backed securities $ 10,704 (66) 8,085 (106) 18,789 (172) State and municipal securities 27,950 (255) — — 27,950 (255) Corporate bonds 1,245 (5) — — 1,245 (5) Total securities available-for-sale $ 39,899 (326) 8,085 (106) 47,984 (432) December 31, 2019 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. asset backed securities $ 11,866 (101) — — 11,866 (101) U.S. government agency mortgage-backed securities — — 1,636 (26) 1,636 (26) U.S. government agency collateralized mortgage obligations 16,283 (116) 3,108 (57) 19,391 (173) State and municipal securities 6,270 (84) — — 6,270 (84) Total securities available-for-sale $ 34,419 (301) 4,744 (83) 39,163 (384) The amortized cost and carrying value of securities at September 30, 2020 and December 31, 2019 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. September 30, 2020 December 31, 2019 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 $ — — — — $ — — — — Due after one year through five years — — 3,196 3,318 — — 4,242 4,311 Due after five years through ten years 8,590 8,568 3,348 3,598 1,329 1,324 4,538 4,692 Due after ten years 67,587 68,196 — — 16,992 16,812 — — Subtotal 76,177 76,764 6,544 6,916 18,321 18,136 8,780 9,003 Mortgage-related securities 25,294 26,594 — — 40,553 40,720 — — Total $ 101,471 103,358 6,544 6,916 $ 58,874 58,856 8,780 9,003

Loans Receivable

Loans Receivable	9 Months Ended
Loans Receivable	Sep. 30, 2020
Loans Receivable
Loans Receivable	(5) Loans Receivable Loans and leases outstanding at September 30, 2020 and December 31, 2019 are detailed by category as follows: September 30, December 31, (dollars in thousands) 2020 2019 Mortgage loans held for sale $ 225,150 33,704 Real estate loans: Commercial mortgage 460,952 362,590 Home equity lines and loans 71,400 81,583 Residential mortgage (1) 55,500 53,665 Construction 151,226 172,044 Total real estate loans 739,078 669,882 Commercial and industrial 256,452 273,301 Small business loans 44,280 21,616 Paycheck Protection Program loans 259,723 — Consumer 582 1,003 Leases, net 13,374 697 Total portfolio loans and leases 1,313,489 966,499 Total loans and leases $ 1,538,639 1,000,203 Loans with predetermined rates $ 720,791 293,114 Loans with adjustable or floating rates 817,848 707,089 Total loans and leases $ 1,538,639 1,000,203 Net deferred loan origination (fees) costs $ (6,643) (1,789) (1) Includes $11,366 and $10,546 of loans at fair value as of September 30, 2020 and December 31, 2019, respectively. Components of the net investment in leases at September 30, 2020 and December 31, 2019 are detailed as follows: September 30, December 31, (dollars in thousands) 2020 2019 Minimum lease payments receivable $ 16,306 729 Unearned lease income (2,932) (32) Total $ 13,374 697 Age Analysis of Past Due Loans and Leases The following tables present an aging of the Corporation’s loan and lease portfolio as of September 30, 2020 and December 31, 2019, respectively: Total 90+ days Accruing Nonaccrual September 30, 2020 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 $ — — — 460,285 460,285 667 460,952 0.14 % Home equity lines and loans — — — 70,737 70,737 663 71,400 0.93 Residential mortgage (1) 389 — 389 52,578 52,967 2,533 55,500 5.26 Construction — — — 151,226 151,226 — 151,226 — Commercial and industrial — — — 252,403 252,403 4,049 256,452 1.58 Small business loans — — — 44,280 44,280 — 44,280 — Paycheck Protection Program loans — — — 259,723 259,723 — 259,723 — Consumer — — — 582 582 — 582 — Leases 8 — 8 13,366 13,374 — 13,374 0.06 Total $ 397 — 397 1,305,180 1,305,577 7,912 1,313,489 0.63 % (1) Includes $11,366 of loans at fair value as of September 30, 2020 ($10,489 of current and $877 of nonaccrual). Total 90+ days Accruing Nonaccrual December 31, 2019 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 $ — — — 361,857 361,857 733 362,590 0.20 % Home equity lines and loans — — — 81,046 81,046 537 81,583 0.66 Residential mortgage (1) 4,675 — 4,675 47,446 52,121 1,544 53,665 11.59 Construction — — — 172,044 172,044 — 172,044 — Commercial and industrial 206 — 206 272,674 272,880 421 273,301 0.23 Small business loans — — — 21,616 21,616 — 21,616 — Consumer — — — 1,003 1,003 — 1,003 — Leases 162 — 162 535 697 — 697 23.24 Total $ 5,043 — 5,043 958,221 963,264 3,235 966,499 0.86 % (1) Includes $10,546 of loans at fair value as of December 31, 2019 ($9,056 of current, $786 of 30-89 days past due and $704 of nonaccrual).

Allowance for Loan Losses (the

Allowance for Loan Losses (the Allowance)	9 Months Ended
Allowance for Loan Losses (the Allowance)	Sep. 30, 2020
Allowance for Loan Losses (the Allowance)
Allowance for Loan Losses (the Allowance)	(6) Allowance for Loan Losses (the “Allowance”) The 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. 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 Allowance by Portfolio Segment The following tables detail the roll-forward of the Corporation’s Allowance, by portfolio segment, for the three and nine month periods ended September 30, 2020 and 2019, respectively: Balance, Balance, (dollars in thousands) June 30, 2020 Charge-offs Recoveries Provision September 30, 2020 Commercial mortgage $ 5,277 — — 1,658 6,935 Home equity lines and loans 672 (75) 2 (82) 517 Residential mortgage 346 — 1 (13) 334 Construction 2,019 — — 463 2,482 Commercial and industrial 3,606 (22) 4 1,450 5,038 Small business loans 747 — — 360 1,107 Consumer 4 — 1 (1) 4 Leases 35 — — 121 156 Total $ 12,706 (97) 8 3,956 16,573 Balance, Balance, (dollars in thousands) December 31, 2019 Charge-offs Recoveries Provision September 30, 2020 Commercial mortgage $ 3,426 — — 3,509 6,935 Home equity lines and loans 342 (89) 6 258 517 Residential mortgage 179 — 5 150 334 Construction 2,362 — — 120 2,482 Commercial and industrial 2,684 (31) 37 2,348 5,038 Small business loans 509 — — 598 1,107 Consumer 6 (10) 3 5 4 Leases 5 — — 151 156 Total $ 9,513 (130) 51 7,139 16,573 Balance, Balance, (dollars in thousands) June 30, 2019 Charge-offs Recoveries Provision September 30, 2019 Commercial mortgage $ 3,197 — 1 257 3,455 Home equity lines and loans 354 — 2 (28) 328 Residential mortgage 200 — 2 (30) 172 Construction 2,033 — — 136 2,169 Commercial and industrial 2,719 (30) 6 171 2,866 Small business loans 111 — — 198 309 Consumer 4 — 1 1 6 Leases 7 — — — 7 Total $ 8,625 (30) 12 705 9,312 Balance, Balance, (dollars in thousands) December 31, 2018 Charge-offs Recoveries Provision September 30, 2019 Commercial mortgage $ 3,209 — 6 240 3,455 Home equity lines and loans 323 — 10 (5) 328 Residential mortgage 191 — 4 (23) 172 Construction 1,627 — — 542 2,169 Commercial and industrial 2,612 (30) 328 (44) 2,866 Small business loans 78 — — 231 309 Consumer 3 — 3 — 6 Leases 10 — — (3) 7 Total $ 8,053 (30) 351 938 9,312 Allowance Allocated by Portfolio Segment The following tables detail the allocation of the allowance for loan and lease losses 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 September 30, 2020 and December 31, 2019. Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively September 30, 2020 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 6,935 6,935 $ 2,005 458,947 460,952 Home equity lines and loans 16 501 517 663 70,737 71,400 Residential mortgage — 334 334 1,648 42,486 44,134 Construction — 2,482 2,482 1,206 150,020 151,226 Commercial and industrial 1,565 3,473 5,038 4,726 251,726 256,452 Small business loans — 1,107 1,107 199 44,081 44,280 Paycheck Protection Program loans — — — — 259,723 259,723 Consumer — 4 4 — 582 582 Leases — 156 156 — 13,374 13,374 Total $ 1,581 14,992 16,573 $ 10,447 1,291,676 1,302,123 (1) Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2019 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 3,426 3,426 $ 2,138 360,452 362,590 Home equity lines and loans 46 296 342 536 81,047 81,583 Residential mortgage — 179 179 854 42,265 43,119 Construction — 2,362 2,362 1,247 170,797 172,044 Commercial and industrial 27 2,657 2,684 1,288 272,013 273,301 Small business loans 63 446 509 1,244 20,372 21,616 Consumer — 6 6 — 1,003 1,003 Leases — 5 5 — 697 697 Total $ 136 9,377 9,513 $ 7,307 948,646 955,953 (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 tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for loan and lease losses as of September 30, 2020 and December 31, 2019: September 30, 2020 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 441,090 16,260 3,602 — 460,952 Home equity lines and loans 70,251 — 1,149 — 71,400 Construction 142,420 8,806 — — 151,226 Commercial and industrial 220,760 22,950 9,019 3,723 256,452 Small business loans 41,548 — 2,732 — 44,280 Paycheck Protection Program loans 259,723 — — — 259,723 Total $ 1,175,792 48,016 16,502 3,723 1,244,033 December 31, 2019 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 353,724 5,821 3,045 — 362,590 Home equity lines and loans 81,046 — 537 — 81,583 Construction 170,823 1,221 — — 172,044 Commercial and industrial 251,320 9,648 12,333 — 273,301 Small business loans 20,351 — 1,265 — 21,616 Total $ 877,264 16,690 17,180 — 911,134 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 of September 30, 2020 and December 31, 2019. No troubled debt restructurings performing according to modified terms are included in performing residential mortgages below as of September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 42,486 1,648 44,134 $ 42,265 854 43,119 Consumer 582 — 582 1,003 — 1,003 Leases 13,374 — 13,374 697 — 697 Total $ 56,442 1,648 58,090 $ 43,965 854 44,819 There were five nonperforming residential mortgage loans at September 30, 2020 and five nonperforming residential mortgage loans at December 31, 2019 with a combined outstanding principal balance of $877 thousand and $839 thousand, respectively, which were carried at fair value and not included in the table above. Impaired Loans The following table details the recorded investment and principal balance of impaired loans by portfolio segment, and their related allowance for loan and lease losses. As of September 30, 2020 As of December 31, 2019 Recorded Principal Related Recorded Principal Related (dollars in thousands) investment balance allowance investment balance allowance Impaired loans with related allowance: Commercial and industrial 3,903 3,907 1,565 617 617 27 Small business loans — — — 1,002 1,002 63 Home equity lines and loans 99 106 16 461 461 46 Total 4,002 4,013 1,581 2,080 2,080 136 Impaired loans without related allowance: Commercial mortgage $ 2,005 2,035 — 2,138 2,173 — Commercial and industrial 823 897 — 671 718 — Small business loans 199 199 — 242 242 — Home equity lines and loans 564 581 — 75 75 — Residential mortgage 1,648 1,648 — 854 854 — Construction 1,206 1,206 — 1,247 1,248 — Total 6,445 6,566 — 5,227 5,310 — Grand Total $ 10,447 10,579 1,581 7,307 7,390 136 The following table details the average recorded investment and interest income recognized on impaired loans by portfolio segment. Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Average Average Average Average recorded recorded recorded recorded (dollars in thousands) investment investment investment investment Impaired loans with related allowance: Commercial and industrial $ 3,907 561 $ 1,766 566 Small business loans — — — — Home equity lines and loans 100 255 103 256 Total $ 4,007 816 $ 1,869 822 Impaired loans without related allowance: Commercial mortgage $ 2,080 2,220 $ 1,852 2,272 Commercial and industrial 874 597 700 602 Small business loans 208 259 220 262 Home equity lines and loans 564 - 575 - Residential mortgage 1,649 857 1,478 857 Construction 1,206 1,270 1,209 1,286 Total $ 6,581 5,203 $ 6,034 5,279 Grand Total $ 10,588 6,019 $ 7,903 6,101 Interest income recognized on performing impaired loans amounted to $139 thousand and $50 thousand for the three months ended September 30, 2020 and 2019, respectively, and $281 thousand and $152 thousand for the nine months ended September 30, 2020 and 2019, respectively. Troubled Debt Restructuring The restructuring of a loan is considered a “troubled debt restructuring” (“TDR”) 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 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 September 30, 2020 and December 31, 2019 are as follows: September 30, December 31, (dollars in thousands) 2020 2019 TDRs included in nonperforming loans and leases $ 246 319 TDRs in compliance with modified terms 3,428 3,599 Total TDRs $ 3,674 3,918 There were no loan and lease modification granted during the three months ended September 30, 2020 that was categorized as a TDR as noted in the table below. For the Nine Months Ended September 30, 2020 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage — $ — $ — $ — Land and Construction — — — — Commercial and industrial 1 58 58 — Total 1 $ 58 $ 58 $ — There were no loan and lease modifications granted during the three and nine months ended September 30, 2019 that was categorized as TDR’s. No loan and lease modifications granted during the three and nine months ended September 30, 2020 and 2019 subsequently defaulted during the same time period. COVID-19 Loan Modifications The following table details the loan modifications that the Corporation provided to loan customers as of September 30, 2020. September 30, 2020 Portfolio Total Active Loan Portfolio Balance Modifications Modifications Commercial mortgage $ 460,952 $ 86,591 $ 4,182 Commercial and industrial, including leases 269,826 24,362 200 Construction & land development 151,226 36,819 14,196 Home equity lines and loans 71,400 1,348 - Residential mortgage 44,134 4,800 558 Small business loans 44,280 144 - Consumer 582 - — Total $ 1,042,400 $ 154,064 $ 19,136 These loan modifications were made in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. Modifications granted to borrowers under this guidance that are related to COVID-19 are not required to be evaluated as troubled debt restructurings under ASC 310-40. These modified loans are classified as performing and are not considered past due. Loans are to be placed on non-accrual when it becomes apparent that payment of interest or recovery of all principal is questionable, and the COVID-19 related modification is no longer considered short-term or the modification is deemed ineffective. In total $111.0 million of commercial loans covering 146 borrowers and $36.8 million of construction loans for 35 borrowers were assisted with loan payment holidays

Short-Term Borrowings and Long

Short-Term Borrowings and Long -Term Debt	9 Months Ended
Short-Term Borrowings and Long -Term Debt	Sep. 30, 2020
Short-Term Borrowings and Long-Term Debt
Short-Term Borrowings and Long-Term Debt	(7) Short-Term Borrowings and Long-Term Debt The Corporation’s short-term borrowings generally consist of federal funds purchased and short-term borrowings extended under agreements with the Federal Home Loan Bank of Pittsburgh (“FHLB”). The Corporation has two unsecured Federal Funds borrowing facilities with correspondent banks: one of $24 million and one of $15 million. Federal funds purchased generally represent one-day borrowings. The Corporation had no Federal Funds purchased at September 30, 2020 and December 31, 2019. The Corporation also has a facility with the Federal Reserve Bank (“FRB”) of Philadelphia discount window of $10.6 million. This facility is fully secured by investment securities. There were $10 million in borrowings under this facility at September 30, 2020 and none at December 31, 2019. Short-term borrowings at September 30, 2020 and December 31, 2019 consisted of the following notes: Balance as of Maturity Interest September 30, December 31, (dollars in thousands) date rate 2020 2019 Open Repo Plus Weekly 05/28/2021 0.39 % 56,640 102,320 Federal Reserve Discount Window 09/30/2020 0.25 10,000 — Mid-term Repo-fixed 12/09/2020 0.42 3,752 — Mid-term Repo-fixed 01/13/2021 0.36 4,605 — Mid-term Repo-fixed 01/27/2021 0.23 5,465 — Mid-term Repo-fixed 03/09/2021 0.79 10,417 — Mid-term Repo-fixed 03/22/2021 0.88 10,238 — Mid-term Repo-fixed 06/28/2021 1.88 3,122 — Mid-term Repo-fixed 08/10/2020 2.76 — 5,000 Mid-term Repo-fixed 08/10/2020 1.59 — 5,144 Mid Term Repo Fixed Rate 09/11/2020 1.59 — 7,676 Mid Term Repo Fixed Rate 03/27/2020 2.03 — 3,123 Acquisition Purchase Note 04/01/2020 3.00 — 413 Total $ 104,239 123,676 As part of the CARES Act, the FRB of Philadelphia offered secured discounted borrowings to banks who originated PPP loans through the Paycheck Protection Program Liquidity Facility or PPPLF program. At September 30, 2020, the Corporation pledged $235.9 million of PPP loans to the FRB of Philadelphia to borrow $235.9 million of funds at a rate of 0.35%. Long-term debt at September 30, 2020 and December 31, 2019 consisted of the following notes: Balance as of Maturity Interest September 30, December 31, (dollars in thousands) date rate 2020 2019 PPPLF Advance Various 0.35 % 235,953 — Mid-term Repo-fixed 03/21/2022 0.92 $ 1,900 — Mid-term Repo-fixed 06/29/2022 0.32 7,392 3,123 Mid-term Repo-fixed 09/12/2022 0.23 4,886 — Total ` $ 250,131 3,123 The FHLB of Pittsburgh has also issued $129 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 2020. The Corporation has a maximum borrowing capacity with the FHLB of $615.3 million as of September 30, 2020 and $507.3 million as of December 31, 2019. 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.

Servicing Assets

Servicing Assets	9 Months Ended
Servicing Assets	Sep. 30, 2020
Servicing Assets
Servicing Assets	(8) Servicing Assets The Corporation sells certain residential mortgage loans and the guaranteed portion of certain small business loans (“SBA loans”) to third parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. When the Corporation sells a residential mortgage loan, it does not retain any portion of that loan and its continuing involvement in such transfers is limited to certain servicing responsibilities. While the Corporation may retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities. When the contractual servicing fees on loans sold with servicing retained are expected to be more than adequate compensation to a servicer for performing the servicing, a capitalized servicing asset is recognized. The Corporation accounts for the transfers and servicing of financial assets in accordance with ASC 860, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. Residential Mortgage Loans The mortgage servicing rights (“MSRs”) are amortized over the period of the estimated future net servicing life of the underlying assets. MSR’s are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the MSR. The Corporation serviced $298.7 million and $60.3 million of residential mortgage loans as of September 30, 2020 and December 31, 2019, respectively. During the three and nine months ended September 30, 2020, the Corporation recognized servicing fee income of $140 thousand and $247 thousand, respectively, compared to $25 thousand and $59 thousand during the three and nine months ended September 30, 2019, respectively. Changes in the MSR balance are summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Balance at beginning of the period $ 1,294 236 $ 446 232 Servicing rights capitalized 1,333 107 2,469 198 Amortization of servicing rights (90) (17) (173) (39) Change in valuation allowance 102 (12) (103) (77) Balance at end of the period $ 2,639 314 $ 2,639 314 Activity in the valuation allowance for MSR’s was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Valuation allowance, beginning of period $ (303) (65) $ (98) — Impairment — (12) (103) (77) Recovery 102 — — — Valuation allowance, end of period $ (201) (77) $ (201) (77) The Corporation uses assumptions and estimates in determining the fair value of MSRs. These assumptions include prepayment speeds and discount rates. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At September 30, 2020, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 12.00% and a discount rate equal to 9.00%. At December 31, 2019, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 13.08% and a discount rate equal to 9.00%. At September 30, 2020 and December 31, 2019, the sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, 2020 December 31, 2019 Fair value of residential mortgage servicing rights $ 2,639 $ 446 Weighted average life (years) 5.0 7.8 Prepayment speed 12.00% 13.08% Impact on fair value: 10% adverse change $ (99) $ (19) 20% adverse change (192) (37) Discount rate 9.00% 9.00% Impact on fair value: 10% adverse change $ (98) $ (14) 20% adverse change (189) (27) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. SBA Loans SBA loan servicing assets are amortized over the period of the estimated future net servicing life of the underlying assets. SBA loan servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the SBA loan servicing asset. The Corporation serviced $44.8 million and $18.0 million of SBA loans, as of September 30, 2020 and December 31, 2019, respectively. During the three and nine months ended September 30, 2020, the Corporation recognized servicing fee income of $49 thousand and $101 thousand, respectively. During the three and nine months ended September 30, 2019, the Corporation recognized servicing fee income of $8 thousand. Changes in the SBA loan servicing asset balance are summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Balance at beginning of the period $ 632 133 $ 337 — Servicing rights capitalized 183 198 524 331 Amortization of servicing rights (42) (6) (88) (6) Change in valuation allowance 14 (4) 14 (4) Balance at end of the period $ 787 321 $ 787 321 Activity in the valuation allowance for SBA loan servicing assets was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Valuation allowance, beginning of period $ (26) — $ (26) — Impairment — (4) — (4) Recovery 14 — 14 — Valuation allowance, end of period $ (12) (4) $ (12) (4) The Corporation uses assumptions and estimates in determining the fair value of SBA loan servicing rights. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At September 30, 2020, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 12.79%, and a discount rate equal to 6.57%. At December 31, 2019, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 10.77%, and a discount rate equal to 11.28%. At September 30, 2020 and December 31, 2019, the sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) September 30, 2020 December 31, 2019 Fair value of SBA loan servicing rights $ 889 $ 337 Weighted average life (years) 3.6 4.3 Prepayment speed 12.79% 10.77% Impact on fair value: 10% adverse change $ (36) $ (12) 20% adverse change (69) (23) Discount rate 6.57% 11.28% Impact on fair value: 10% adverse change $ (23) $ (9) 20% adverse change (46) (18) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the SBA servicing rights is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change.

Fair Value Measurements and Dis

Fair Value Measurements and Disclosures	9 Months Ended
Fair Value Measurements and Disclosures	Sep. 30, 2020
Fair Value Measurements and Disclosures
Fair Value Measurements and Disclosures	(9) Fair Value Measurements and Disclosures 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. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis. 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. Mortgage Loans Held for Sale The fair value of loans held for sale is based on secondary market prices. Mortgage Loans Held for Investment 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. Derivative Financial Instruments The fair values of forward commitments and interest rate swaps are 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. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 24,744 — 24,744 — U.S. government agency mortgage-backed securities 4,111 — 4,111 — U.S. government agency collateralized mortgage obligations 22,483 — 22,483 — State and municipal securities 49,339 — 49,339 — Corporate bonds 2,681 — 2,681 — Equity investments 1,034 — 1,034 — Mortgage loans held for sale 225,150 — 225,150 — Mortgage loans held for investment 11,366 — 11,366 — Interest rate lock commitments 7,798 — — 7,798 Forward commitments 57 — 57 — Customer derivatives - interest rate swaps 1,284 — 1,284 — Total $ 350,047 — 342,249 7,798 Liabilities Interest rate lock commitments 225 — — 225 Forward commitments 971 — 971 — Customer derivatives - interest rate swaps 1,413 — 1,413 — $ 2,609 — 2,384 225 December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 11,866 — 11,866 — U.S. government agency mortgage-backed securities 5,497 — 5,497 — U.S. government agency collateralized mortgage obligations 35,223 — 35,223 — State and municipal securities 6,270 — 6,270 — Investments in mutual funds 1,009 — 1,009 — Mortgage loans held for sale 33,704 — 33,704 — Mortgage loans held for investment 10,546 — 10,546 — Interest rate lock commitments 504 — — 504 Forward commitments 6 — 6 — Customer derivatives - interest rate swaps 382 — 382 — Total $ 105,007 — 104,503 504 Liabilities Interest rate lock commitments 157 — — 157 Forward commitments 119 — 119 — Customer derivatives - interest rate swaps 431 — 431 — $ 707 — 550 157 Financial assets measured at fair value on a nonrecurring basis, are considered Level 3 assets in the fair value hierarchy. The fair value used at September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 December 31, 2019 (dollars in thousands) Fair Value Fair Value Mortgage servicing rights $ 2,639 446 SBA loan servicing rights 632 337 Impaired loans (1) 2,421 804 Other real estate owned (2) — 120 Total $ 5,692 1,707 (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 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: Cash and Cash Equivalents The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. 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 reflective of an exit price. Loan Servicing Rights The Corporation estimates the fair value of mortgage servicing rights and SBA loan servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. These servicing rights are classified within Level 3 in the fair value hierarchy based upon management’s assessment of the inputs. The Corporation reviews the servicing rights portfolios on a quarterly basis for impairment. 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. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. 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. Short-Term Borrowings The carrying amounts of short-term borrowings approximate their fair values. Long-Term Debt Fair values of FHLB advances 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. 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. 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. The estimated fair values of the Corporation’s financial instruments at September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 December 31, 2019 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 75,869 75,869 39,371 39,371 Securities available-for-sale Level 2 103,358 103,358 58,856 58,856 Securities held-to-maturity Level 2 6,544 6,916 8,780 9,003 Equity investments Level 2 1,034 1,034 1,009 1,009 Mortgage loans held for sale Level 2 225,150 225,150 33,704 33,704 Loans receivable, net of the allowance for loan and lease losses Level 3 1,278,907 1,313,384 944,651 973,057 Mortgage loans held for investment Level 2 11,366 11,366 10,546 10,546 Interest rate lock commitments Level 3 7,798 7,798 504 504 Forward commitments Level 2 57 57 6 6 Restricted investment in bank stock NA 7,650 NA 8,072 NA Accrued interest receivable Level 3 4,666 4,666 3,148 3,148 Customer derivatives - interest rate swaps Level 2 1,284 1,284 382 382 Financial liabilities: Deposits Level 2 1,209,024 1,361,900 851,168 880,400 Short-term borrowings Level 2 104,239 104,239 123,676 123,678 Long-term debt Level 2 250,131 253,804 3,123 3,123 Subordinated debentures Level 2 40,814 39,674 40,962 40,962 Accrued interest payable Level 2 2,258 2,258 1,088 1,088 Interest rate lock commitments Level 3 225 225 157 157 Forward commitments Level 2 971 971 119 119 Customer derivatives - interest rate swaps Level 2 1,413 1,413 431 431 Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 377,885 7,798 327,788 504 Letters of credit Level 2 7,054 — 9,750 — 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 three and nine month peiods ended September 30, 2020 and 2019. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of the period $ 4,595 375 $ 504 310 Increase in value 3,203 (92) 7,294 (27) Balance at end of the period $ 7,798 283 $ 7,798 283 The following table details the valuation techniques for Level 3 interest rate lock commitments. Significant Fair Value Unobservable Range of Weighted Level 3 Valuation Technique Input Inputs Average September 30, 2020 $ 7,798 Market comparable pricing Pull through 1 - 99 % 85.38 % December 31, 2019 504 Market comparable pricing Pull through 1 - 99 93.41 Net realized gains of $3.2 million and net realized losses of $101 thousand due to changes in the fair value of interest rate lock commitments which are classified as Level 3 assets and liabilities for the three months ended September 30, 2020 and 2019, respectively, and net realized gains of $7.2 million and net realized losses $67 thousand for the nine months ended September 30, 2020 and 2019, 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	9 Months Ended
Derivative Financial Instruments	Sep. 30, 2020
Derivative Financial Instruments
Derivative Financial Instruments	(10) Derivative Financial Instruments 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. The fair value of 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. The fair value of interest rate derivatives are recorded within other assets/liabilities on the consolidated balance sheets. 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: September 30, 2020 December 31, 2019 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 497,093 7,798 47,660 504 Negative fair values Other liabilities 46,890 (225) 22,663 (157) Total 543,983 7,573 70,323 347 Forward Commitments Positive fair values Other assets 75,500 57 4,500 6 Negative fair values Other liabilities 215,500 (971) 58,250 (119) Total 291,000 (914) 62,750 (113) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 17,906 1,284 3,271 382 Negative fair values Other liabilities 17,906 (1,413) 3,271 (431) Total 35,812 (129) 6,542 (49) Total derivative financial instruments $ 870,795 6,530 139,615 185 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: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Interest Rate Lock Commitments $ 3,161 (102) $ 7,226 (68) Forward Commitments (129) 124 (801) 101 Customer Derivatives - Interest Rate Swaps (4) (22) (79) (48) Net fair value gains (losses) on derivative financial instruments $ 3,028 — $ 6,346 (15) Net realized losses on derivatives were ($2.6) million and ($300) thousand for the three months ended September 30, 2020 and 2019, respectively, and ($7.4) million and ($792) thousand for the nine months ended September 30, 2020 and 2019, respectively.

Segments

Segments	9 Months Ended
Segments	Sep. 30, 2020
Segments
Segments	(11) Segments ASC Topic 280 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the 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 investment securities, gains on the sale of loans, SBA income, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income. Meridian Wealth Partners (“Wealth”), is a registered investment advisor and wholly-owned subsidiary of the Bank, that provide 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 Mortgage’s (“Mortgage”) consists of 16 loan production offices located throughout the Delaware Valley and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and related net hedging gains. The table below summarizes income and expenses, directly attributable to each business line, which has been included in the statement of operations. Segment Information Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 12,104 (19) 630 12,715 $ 9,203 4 67 9,274 Provision for loan losses 3,956 — — 3,956 705 — — 705 Net interest income after provision 8,148 (19) 630 8,759 8,498 4 67 8,569 Non-interest Income Mortgage banking income 574 — 21,238 21,812 74 — 7,241 7,315 Wealth management income — 951 — 951 31 891 — 922 SBA income 641 — — 641 635 — — 635 Net change in fair values (4) — 6,057 6,053 (23) — 53 30 Net (loss) on hedging activity — — (2,637) (2,637) — — (300) (300) Other 2,045 — 195 2,240 534 — 73 607 Non-interest income 3,256 951 24,853 29,060 1,251 891 7,067 9,209 Non-interest expense 8,829 788 16,217 25,834 6,915 834 5,798 13,547 Income before income taxes $ 2,575 144 9,266 11,985 $ 2,834 61 1,336 4,231 Total Assets $ 1,525,883 5,399 227,366 1,758,648 $ 1,071,450 5,398 50,089 1,126,937 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 32,725 (24) 1,277 33,978 $ 26,437 68 167 26,672 Provision for loan losses 7,139 — — 7,139 938 — — 938 Net interest income after provision 25,586 (24) 1,277 26,839 25,499 68 167 25,734 Non-interest Income Mortgage banking income 973 — 44,422 45,395 175 — 17,442 17,617 Wealth management income — 2,825 — 2,825 110 2,588 — 2,698 SBA income 1,821 — — 1,821 1,150 — — 1,150 Net change in fair values (68) — 11,012 10,944 (49) — 341 292 Net (loss) on hedging activity — — (7,363) (7,363) — — (792) (792) Other 2,931 14 405 3,350 1,409 — 282 1,691 Non-interest income 5,657 2,839 48,476 56,972 2,795 2,588 17,273 22,656 Non-interest expense 23,341 2,363 35,448 61,152 20,312 2,268 16,400 38,980 Income before income taxes $ 7,902 452 14,305 22,659 $ 7,982 388 1,040 9,410 Total Assets $ 1,525,883 5,399 227,366 1,758,648 $ 1,071,450 5,398 50,089 1,126,937

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2020
Stockholders' Equity
Stockholders' Equity	(12) Stockholders’ Equity On August 31, 2020, the Corporation announced that the Meridian Corporation Employee Stock Ownership Plan Trust (together with the related employee stock ownership plan, the “ESOP”) had established a $2 million stock purchase authorization with no expiration date. Purchases are authorized to be made from time to time in either the open market or through privately negotiated transactions. The Corporation loaned the ESOP $2 million to facilitate the ESOP’s purchase of the shares. During September 2020 the ESOP purchased 133,601 shares of the Corporation’s common stock at an average price of $14.97 , using the full $2 million loan. The ESOP loan, which bears an interest rate of 1.17% , is to be repaid in annual installments commencing on December 31, 2020, and on the final day of each of the next nine calendar years. As of September 30, 2020 there were no shares commited to be released. On October 22, 2020, the Corporation’s Board of Directors declared a cash dividend of $0.125 per common share, payable on November 23, 2020 to shareholders of record as of November 9, 2020. During the third quarter of 2020, the Corporation paid or accrued, as applicable, a quarterly dividend of $0.125 per share. This dividend totaled $763 thousand, based on outstanding shares as of August 10, 2020 of 6,098,573.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2020
Recent Accounting Pronouncements
Recent Accounting Pronouncements	(13) Recent Accounting Pronouncements 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. 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 adoption of this standard on January 1, 2019 did not have a material impact on the Corporation’s consolidated financial statements and related disclosures. FASB ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting” Issued in June 2018, ASU 2018-07: Compensation - Stock Compensation (Topic 718), “ Improvements to Nonemployee Share-Based Payment Accounting The amendments in this update became effective for us January 1, 2020. The adoption did not have an impact on our consolidated financial statements and related disclosures as the Corporation did not and has not historically granted share based payment awards to nonemployees other than to the Corporation’s Board of Directors, who are treated as employees for share-based payment accounting. FASB ASU 2018-13, "Fair Value Measurement Disclosure Framework" Issued in August 2018, ASU 2018-13 modifies, adds and removes certain disclosures aimed to improve the overall usefulness of the disclosure requirements for fair value measurements. ASU 2018-13 was effective for the Corporation on January 1, 2020. Adoption is required on both a prospective and retrospective basis depending on the amendment. The adoption of this ASU did not have a material impact on our 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. In October 2019, the FASB approved a delay for the implementation of the ASU. Accordingly, as an emerging growth company, the Corporation’s effective date for the implementation of the ASU will be January 1, 2023. will adopt this ASU. 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. At this time the Corporation cannot yet estimate the impact to the consolidated financial statements. FASB ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” Issued in April 2019, ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The amendments to estimating expected credit losses (ASU 2016-13), in particular, how a company considers recoveries and extension options when estimating expected credit losses, are the most relevant to the Corporation. The ASU clarifies that (1) the estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. Management will consider the impact of ASU 2019-04 when considering the impact of ASU 2016-13 as discussed above. 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, 2020, and interim periods within the fiscal years beginning after December 15, 2021. 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 will adopt ASU 2016-2 and ASU 2018-11 as of January 1, 2021 and apply ASC 842 throughout 2021. 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 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 will adopt ASU 2017-08 as of December 31, 2020 and apply existing guidance throughout 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 applicable under the ASU but we will consider the impact of the ASU on future hedging strategies that may arise. The Corporation will adopt ASU 2017-12 as of December 31, 2020 and apply existing guidance throughout 2020. 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. FASB ASU 2018-15 (Topic 350), "Intangibles - Goodwill and Other - Internal-Use Software" Issued in August 2018, ASU 2018-15 provides clarity on capitalizing and expensing implementation costs for cloud computing arrangements in a service contract. If an implementation cost is capitalized, the cost should be recognized over the noncancellable term and periodically assessed for impairment. The guidance is effective in annual and interim periods in fiscal years beginning after December 15, 2020 and interim periods within annual periods beginning after December 15, 2021. Adoption should be applied retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Corporation does not expect the adoption of this ASU to have a material impact on our consolidated financial statements and related disclosures. FASB ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” Issued in December 2019, ASU 2019-12 adds new guidance to simplify accounting for income taxes, changes the accounting for certain income tax transactions and makes minor improvements to the codification. The guidance is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. Management has not yet determined what the impact of the adoption of this ASU will be on our consolidated financial statements and related disclosures. FASB ASU 2020-06, “Debt-Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Early adoption is permitted, but no earlier than for fiscal years beginning after Dec. 15, 2020.

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	9 Months Ended
Earnings per Common Share (Tables)	Sep. 30, 2020
Earnings per Common Share
Schedule of basic and diluted earnings per common share	Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands, except per share data) 2020 2019 2020 2019 Numerator: Net income available to common stockholders $ 9,212 3,317 $ 17,441 7,345 Denominator for basic earnings per share - weighted average shares outstanding 6,099 6,407 6,172 6,407 Effect of dilutive common shares 11 30 21 29 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,110 6,437 6,193 6,436 Basic earnings per share $ 1.51 0.52 $ 2.83 1.15 Diluted earnings per share $ 1.51 0.52 $ 2.82 1.14 Antidilutive shares excluded from computation of average dilutive earnings per share 265 199 192 199

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	9 Months Ended
Goodwill and Other Intangibles (Tables)	Sep. 30, 2020
Goodwill and Other Intangibles
Schedule of goodwill and intangibles assets related to acquisition	Balance Balance Amortization December 31, Amortization September 30, Period (dollars in thousands) 2019 Expense 2020 (in years) Goodwill - Wealth $ 899 — 899 Indefinite Total Goodwill 899 — 899 Intangible assets - trade name 266 — 266 Indefinite Intangible assets - customer relationships 3,523 (154) 3,369 20 Intangible assets - non competition agreements 85 (52) 33 4 Total Intangible Assets 3,874 (206) 3,668 Total $ 4,773 (206) 4,567

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2020
Securities
Schedule of amortized cost and fair value of securities	September 30, 2020 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. asset backed securities $ 24,705 211 (172) 24,744 U.S. government agency mortgage-backed securities 3,919 192 — 4,111 U.S. government agency collateralized mortgage obligations 21,375 1,108 — 22,483 State and municipal securities 48,789 805 (255) 49,339 Corporate bonds 2,683 3 (5) 2,681 Total securities available-for-sale $ 101,471 2,319 (432) 103,358 Securities held to maturity: State and municipal securities 6,544 372 — 6,916 Total securities held-to-maturity $ 6,544 372 — 6,916 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value Securities available-for-sale: U.S. asset backed securities $ 11,967 — (101) 11,866 U.S. government agency mortgage-backed securities 5,457 66 (26) 5,497 U.S. government agency collateralized mortgage obligations 35,096 300 (173) 35,223 State and municipal securities 6,354 — (84) 6,270 Total securities available-for-sale $ 58,874 366 (384) 58,856 Securities held to maturity: State and municipal securities 8,780 223 — 9,003 Total securities held-to-maturity $ 8,780 223 — 9,003
Schedule of investment gross unrealized loss in continuous unrealized loss position	September 30, 2020 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. asset backed securities $ 10,704 (66) 8,085 (106) 18,789 (172) State and municipal securities 27,950 (255) — — 27,950 (255) Corporate bonds 1,245 (5) — — 1,245 (5) Total securities available-for-sale $ 39,899 (326) 8,085 (106) 47,984 (432) December 31, 2019 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. asset backed securities $ 11,866 (101) — — 11,866 (101) U.S. government agency mortgage-backed securities — — 1,636 (26) 1,636 (26) U.S. government agency collateralized mortgage obligations 16,283 (116) 3,108 (57) 19,391 (173) State and municipal securities 6,270 (84) — — 6,270 (84) Total securities available-for-sale $ 34,419 (301) 4,744 (83) 39,163 (384)
Schedule of amortized cost and carrying value of held-to-maturity securities and available-for-sale securities by contractual maturity	September 30, 2020 December 31, 2019 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 $ — — — — $ — — — — Due after one year through five years — — 3,196 3,318 — — 4,242 4,311 Due after five years through ten years 8,590 8,568 3,348 3,598 1,329 1,324 4,538 4,692 Due after ten years 67,587 68,196 — — 16,992 16,812 — — Subtotal 76,177 76,764 6,544 6,916 18,321 18,136 8,780 9,003 Mortgage-related securities 25,294 26,594 — — 40,553 40,720 — — Total $ 101,471 103,358 6,544 6,916 $ 58,874 58,856 8,780 9,003

Loans Receivable (Tables)

Loans Receivable (Tables)	9 Months Ended
Loans Receivable (Tables)	Sep. 30, 2020
Loans Receivable
Summary of loans and leases outstanding	September 30, December 31, (dollars in thousands) 2020 2019 Mortgage loans held for sale $ 225,150 33,704 Real estate loans: Commercial mortgage 460,952 362,590 Home equity lines and loans 71,400 81,583 Residential mortgage (1) 55,500 53,665 Construction 151,226 172,044 Total real estate loans 739,078 669,882 Commercial and industrial 256,452 273,301 Small business loans 44,280 21,616 Paycheck Protection Program loans 259,723 — Consumer 582 1,003 Leases, net 13,374 697 Total portfolio loans and leases 1,313,489 966,499 Total loans and leases $ 1,538,639 1,000,203 Loans with predetermined rates $ 720,791 293,114 Loans with adjustable or floating rates 817,848 707,089 Total loans and leases $ 1,538,639 1,000,203 Net deferred loan origination (fees) costs $ (6,643) (1,789) (1) Includes $11,366 and $10,546 of loans at fair value as of September 30, 2020 and December 31, 2019, respectively.
Schedule of components of the net investment in leases	September 30, December 31, (dollars in thousands) 2020 2019 Minimum lease payments receivable $ 16,306 729 Unearned lease income (2,932) (32) Total $ 13,374 697
Schedule of age analysis of past due loans and leases	Total 90+ days Accruing Nonaccrual September 30, 2020 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 $ — — — 460,285 460,285 667 460,952 0.14 % Home equity lines and loans — — — 70,737 70,737 663 71,400 0.93 Residential mortgage (1) 389 — 389 52,578 52,967 2,533 55,500 5.26 Construction — — — 151,226 151,226 — 151,226 — Commercial and industrial — — — 252,403 252,403 4,049 256,452 1.58 Small business loans — — — 44,280 44,280 — 44,280 — Paycheck Protection Program loans — — — 259,723 259,723 — 259,723 — Consumer — — — 582 582 — 582 — Leases 8 — 8 13,366 13,374 — 13,374 0.06 Total $ 397 — 397 1,305,180 1,305,577 7,912 1,313,489 0.63 % (1) Includes $11,366 of loans at fair value as of September 30, 2020 ($10,489 of current and $877 of nonaccrual). Total 90+ days Accruing Nonaccrual December 31, 2019 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 $ — — — 361,857 361,857 733 362,590 0.20 % Home equity lines and loans — — — 81,046 81,046 537 81,583 0.66 Residential mortgage (1) 4,675 — 4,675 47,446 52,121 1,544 53,665 11.59 Construction — — — 172,044 172,044 — 172,044 — Commercial and industrial 206 — 206 272,674 272,880 421 273,301 0.23 Small business loans — — — 21,616 21,616 — 21,616 — Consumer — — — 1,003 1,003 — 1,003 — Leases 162 — 162 535 697 — 697 23.24 Total $ 5,043 — 5,043 958,221 963,264 3,235 966,499 0.86 % (1) Includes $10,546 of loans at fair value as of December 31, 2019 ($9,056 of current, $786 of 30-89 days past due and $704 of nonaccrual).

Allowance for Loan Losses (th_2

Allowance for Loan Losses (the Allowance) (Tables)	9 Months Ended
Allowance for Loan Losses (the Allowance) (Tables)	Sep. 30, 2020
Allowance for Loan Losses (the Allowance)
Roll-forward of allowance for loan and lease losses by portfolio segment	Balance, Balance, (dollars in thousands) June 30, 2020 Charge-offs Recoveries Provision September 30, 2020 Commercial mortgage $ 5,277 — — 1,658 6,935 Home equity lines and loans 672 (75) 2 (82) 517 Residential mortgage 346 — 1 (13) 334 Construction 2,019 — — 463 2,482 Commercial and industrial 3,606 (22) 4 1,450 5,038 Small business loans 747 — — 360 1,107 Consumer 4 — 1 (1) 4 Leases 35 — — 121 156 Total $ 12,706 (97) 8 3,956 16,573 Balance, Balance, (dollars in thousands) December 31, 2019 Charge-offs Recoveries Provision September 30, 2020 Commercial mortgage $ 3,426 — — 3,509 6,935 Home equity lines and loans 342 (89) 6 258 517 Residential mortgage 179 — 5 150 334 Construction 2,362 — — 120 2,482 Commercial and industrial 2,684 (31) 37 2,348 5,038 Small business loans 509 — — 598 1,107 Consumer 6 (10) 3 5 4 Leases 5 — — 151 156 Total $ 9,513 (130) 51 7,139 16,573 Balance, Balance, (dollars in thousands) June 30, 2019 Charge-offs Recoveries Provision September 30, 2019 Commercial mortgage $ 3,197 — 1 257 3,455 Home equity lines and loans 354 — 2 (28) 328 Residential mortgage 200 — 2 (30) 172 Construction 2,033 — — 136 2,169 Commercial and industrial 2,719 (30) 6 171 2,866 Small business loans 111 — — 198 309 Consumer 4 — 1 1 6 Leases 7 — — — 7 Total $ 8,625 (30) 12 705 9,312 Balance, Balance, (dollars in thousands) December 31, 2018 Charge-offs Recoveries Provision September 30, 2019 Commercial mortgage $ 3,209 — 6 240 3,455 Home equity lines and loans 323 — 10 (5) 328 Residential mortgage 191 — 4 (23) 172 Construction 1,627 — — 542 2,169 Commercial and industrial 2,612 (30) 328 (44) 2,866 Small business loans 78 — — 231 309 Consumer 3 — 3 — 6 Leases 10 — — (3) 7 Total $ 8,053 (30) 351 938 9,312
Schedule of allocation of the allowance for loan and lease losses	Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively September 30, 2020 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 6,935 6,935 $ 2,005 458,947 460,952 Home equity lines and loans 16 501 517 663 70,737 71,400 Residential mortgage — 334 334 1,648 42,486 44,134 Construction — 2,482 2,482 1,206 150,020 151,226 Commercial and industrial 1,565 3,473 5,038 4,726 251,726 256,452 Small business loans — 1,107 1,107 199 44,081 44,280 Paycheck Protection Program loans — — — — 259,723 259,723 Consumer — 4 4 — 582 582 Leases — 156 156 — 13,374 13,374 Total $ 1,581 14,992 16,573 $ 10,447 1,291,676 1,302,123 (1) Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2019 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 3,426 3,426 $ 2,138 360,452 362,590 Home equity lines and loans 46 296 342 536 81,047 81,583 Residential mortgage — 179 179 854 42,265 43,119 Construction — 2,362 2,362 1,247 170,797 172,044 Commercial and industrial 27 2,657 2,684 1,288 272,013 273,301 Small business loans 63 446 509 1,244 20,372 21,616 Consumer — 6 6 — 1,003 1,003 Leases — 5 5 — 697 697 Total $ 136 9,377 9,513 $ 7,307 948,646 955,953 (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	September 30, 2020 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 441,090 16,260 3,602 — 460,952 Home equity lines and loans 70,251 — 1,149 — 71,400 Construction 142,420 8,806 — — 151,226 Commercial and industrial 220,760 22,950 9,019 3,723 256,452 Small business loans 41,548 — 2,732 — 44,280 Paycheck Protection Program loans 259,723 — — — 259,723 Total $ 1,175,792 48,016 16,502 3,723 1,244,033 December 31, 2019 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 353,724 5,821 3,045 — 362,590 Home equity lines and loans 81,046 — 537 — 81,583 Construction 170,823 1,221 — — 172,044 Commercial and industrial 251,320 9,648 12,333 — 273,301 Small business loans 20,351 — 1,265 — 21,616 Total $ 877,264 16,690 17,180 — 911,134
Schedule of allocations based on the credit quality indicators	September 30, 2020 December 31, 2019 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 42,486 1,648 44,134 $ 42,265 854 43,119 Consumer 582 — 582 1,003 — 1,003 Leases 13,374 — 13,374 697 — 697 Total $ 56,442 1,648 58,090 $ 43,965 854 44,819
Schedule of recorded investment and principal balance of impaired loans	As of September 30, 2020 As of December 31, 2019 Recorded Principal Related Recorded Principal Related (dollars in thousands) investment balance allowance investment balance allowance Impaired loans with related allowance: Commercial and industrial 3,903 3,907 1,565 617 617 27 Small business loans — — — 1,002 1,002 63 Home equity lines and loans 99 106 16 461 461 46 Total 4,002 4,013 1,581 2,080 2,080 136 Impaired loans without related allowance: Commercial mortgage $ 2,005 2,035 — 2,138 2,173 — Commercial and industrial 823 897 — 671 718 — Small business loans 199 199 — 242 242 — Home equity lines and loans 564 581 — 75 75 — Residential mortgage 1,648 1,648 — 854 854 — Construction 1,206 1,206 — 1,247 1,248 — Total 6,445 6,566 — 5,227 5,310 — Grand Total $ 10,447 10,579 1,581 7,307 7,390 136
Schedule of average recorded investment on impaired loans	Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Average Average Average Average recorded recorded recorded recorded (dollars in thousands) investment investment investment investment Impaired loans with related allowance: Commercial and industrial $ 3,907 561 $ 1,766 566 Small business loans — — — — Home equity lines and loans 100 255 103 256 Total $ 4,007 816 $ 1,869 822 Impaired loans without related allowance: Commercial mortgage $ 2,080 2,220 $ 1,852 2,272 Commercial and industrial 874 597 700 602 Small business loans 208 259 220 262 Home equity lines and loans 564 - 575 - Residential mortgage 1,649 857 1,478 857 Construction 1,206 1,270 1,209 1,286 Total $ 6,581 5,203 $ 6,034 5,279 Grand Total $ 10,588 6,019 $ 7,903 6,101
Schedule of TDRs	TDRs at September 30, 2020 and December 31, 2019 are as follows: September 30, December 31, (dollars in thousands) 2020 2019 TDRs included in nonperforming loans and leases $ 246 319 TDRs in compliance with modified terms 3,428 3,599 Total TDRs $ 3,674 3,918
Schedule of loan and lease modifications granted	There were no loan and lease modification granted during the three months ended September 30, 2020 that was categorized as a TDR as noted in the table below. For the Nine Months Ended September 30, 2020 Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Related (dollar in thousands) Contracts Investment Investment Allowance Real Estate: Commercial mortgage — $ — $ — $ — Land and Construction — — — — Commercial and industrial 1 58 58 — Total 1 $ 58 $ 58 $ —
Schedule of loan modifications provided to loan customers	September 30, 2020 Portfolio Total Active Loan Portfolio Balance Modifications Modifications Commercial mortgage $ 460,952 $ 86,591 $ 4,182 Commercial and industrial, including leases 269,826 24,362 200 Construction & land development 151,226 36,819 14,196 Home equity lines and loans 71,400 1,348 - Residential mortgage 44,134 4,800 558 Small business loans 44,280 144 - Consumer 582 - — Total $ 1,042,400 $ 154,064 $ 19,136

Short-Term Borrowings and Long-

Short-Term Borrowings and Long-Term Debt (Tables)	9 Months Ended
Short-Term Borrowings and Long-Term Debt (Tables)	Sep. 30, 2020
Short-Term Borrowings and Long-Term Debt
Schedule of short term borrowings	Short-term borrowings at September 30, 2020 and December 31, 2019 consisted of the following notes: Balance as of Maturity Interest September 30, December 31, (dollars in thousands) date rate 2020 2019 Open Repo Plus Weekly 05/28/2021 0.39 % 56,640 102,320 Federal Reserve Discount Window 09/30/2020 0.25 10,000 — Mid-term Repo-fixed 12/09/2020 0.42 3,752 — Mid-term Repo-fixed 01/13/2021 0.36 4,605 — Mid-term Repo-fixed 01/27/2021 0.23 5,465 — Mid-term Repo-fixed 03/09/2021 0.79 10,417 — Mid-term Repo-fixed 03/22/2021 0.88 10,238 — Mid-term Repo-fixed 06/28/2021 1.88 3,122 — Mid-term Repo-fixed 08/10/2020 2.76 — 5,000 Mid-term Repo-fixed 08/10/2020 1.59 — 5,144 Mid Term Repo Fixed Rate 09/11/2020 1.59 — 7,676 Mid Term Repo Fixed Rate 03/27/2020 2.03 — 3,123 Acquisition Purchase Note 04/01/2020 3.00 — 413 Total $ 104,239 123,676
Schedule of long term debt	Balance as of Maturity Interest September 30, December 31, (dollars in thousands) date rate 2020 2019 PPPLF Advance Various 0.35 % 235,953 — Mid-term Repo-fixed 03/21/2022 0.92 $ 1,900 — Mid-term Repo-fixed 06/29/2022 0.32 7,392 3,123 Mid-term Repo-fixed 09/12/2022 0.23 4,886 — Total ` $ 250,131 3,123

Servicing Assets (Tables)

Servicing Assets (Tables)	9 Months Ended
Servicing Assets (Tables)	Sep. 30, 2020
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Balance at beginning of the period $ 1,294 236 $ 446 232 Servicing rights capitalized 1,333 107 2,469 198 Amortization of servicing rights (90) (17) (173) (39) Change in valuation allowance 102 (12) (103) (77) Balance at end of the period $ 2,639 314 $ 2,639 314
Schedule of valuation allowance for servicing assets	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Valuation allowance, beginning of period $ (303) (65) $ (98) — Impairment — (12) (103) (77) Recovery 102 — — — Valuation allowance, end of period $ (201) (77) $ (201) (77)
Schedule of sensitivity of fair value of servicing assets	(dollars in thousands) September 30, 2020 December 31, 2019 Fair value of residential mortgage servicing rights $ 2,639 $ 446 Weighted average life (years) 5.0 7.8 Prepayment speed 12.00% 13.08% Impact on fair value: 10% adverse change $ (99) $ (19) 20% adverse change (192) (37) Discount rate 9.00% 9.00% Impact on fair value: 10% adverse change $ (98) $ (14) 20% adverse change (189) (27)
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Balance at beginning of the period $ 632 133 $ 337 — Servicing rights capitalized 183 198 524 331 Amortization of servicing rights (42) (6) (88) (6) Change in valuation allowance 14 (4) 14 (4) Balance at end of the period $ 787 321 $ 787 321
Schedule of valuation allowance for servicing assets	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Valuation allowance, beginning of period $ (26) — $ (26) — Impairment — (4) — (4) Recovery 14 — 14 — Valuation allowance, end of period $ (12) (4) $ (12) (4)
Schedule of sensitivity of fair value of servicing assets	(dollars in thousands) September 30, 2020 December 31, 2019 Fair value of SBA loan servicing rights $ 889 $ 337 Weighted average life (years) 3.6 4.3 Prepayment speed 12.79% 10.77% Impact on fair value: 10% adverse change $ (36) $ (12) 20% adverse change (69) (23) Discount rate 6.57% 11.28% Impact on fair value: 10% adverse change $ (23) $ (9) 20% adverse change (46) (18)

Fair Value Measurements and D_2

Fair Value Measurements and Disclosures (Tables)	9 Months Ended
Fair Value Measurements and Disclosures (Tables)	Sep. 30, 2020
Fair Value Measurements and Disclosures
Schedule of financial assets measured at fair value on a recurring basis	September 30, 2020 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 24,744 — 24,744 — U.S. government agency mortgage-backed securities 4,111 — 4,111 — U.S. government agency collateralized mortgage obligations 22,483 — 22,483 — State and municipal securities 49,339 — 49,339 — Corporate bonds 2,681 — 2,681 — Equity investments 1,034 — 1,034 — Mortgage loans held for sale 225,150 — 225,150 — Mortgage loans held for investment 11,366 — 11,366 — Interest rate lock commitments 7,798 — — 7,798 Forward commitments 57 — 57 — Customer derivatives - interest rate swaps 1,284 — 1,284 — Total $ 350,047 — 342,249 7,798 Liabilities Interest rate lock commitments 225 — — 225 Forward commitments 971 — 971 — Customer derivatives - interest rate swaps 1,413 — 1,413 — $ 2,609 — 2,384 225 December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 11,866 — 11,866 — U.S. government agency mortgage-backed securities 5,497 — 5,497 — U.S. government agency collateralized mortgage obligations 35,223 — 35,223 — State and municipal securities 6,270 — 6,270 — Investments in mutual funds 1,009 — 1,009 — Mortgage loans held for sale 33,704 — 33,704 — Mortgage loans held for investment 10,546 — 10,546 — Interest rate lock commitments 504 — — 504 Forward commitments 6 — 6 — Customer derivatives - interest rate swaps 382 — 382 — Total $ 105,007 — 104,503 504 Liabilities Interest rate lock commitments 157 — — 157 Forward commitments 119 — 119 — Customer derivatives - interest rate swaps 431 — 431 — $ 707 — 550 157
Schedule of financial assets measured at fair value on non-recurring basis	September 30, 2020 December 31, 2019 (dollars in thousands) Fair Value Fair Value Mortgage servicing rights $ 2,639 446 SBA loan servicing rights 632 337 Impaired loans (1) 2,421 804 Other real estate owned (2) — 120 Total $ 5,692 1,707 (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 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	September 30, 2020 December 31, 2019 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 75,869 75,869 39,371 39,371 Securities available-for-sale Level 2 103,358 103,358 58,856 58,856 Securities held-to-maturity Level 2 6,544 6,916 8,780 9,003 Equity investments Level 2 1,034 1,034 1,009 1,009 Mortgage loans held for sale Level 2 225,150 225,150 33,704 33,704 Loans receivable, net of the allowance for loan and lease losses Level 3 1,278,907 1,313,384 944,651 973,057 Mortgage loans held for investment Level 2 11,366 11,366 10,546 10,546 Interest rate lock commitments Level 3 7,798 7,798 504 504 Forward commitments Level 2 57 57 6 6 Restricted investment in bank stock NA 7,650 NA 8,072 NA Accrued interest receivable Level 3 4,666 4,666 3,148 3,148 Customer derivatives - interest rate swaps Level 2 1,284 1,284 382 382 Financial liabilities: Deposits Level 2 1,209,024 1,361,900 851,168 880,400 Short-term borrowings Level 2 104,239 104,239 123,676 123,678 Long-term debt Level 2 250,131 253,804 3,123 3,123 Subordinated debentures Level 2 40,814 39,674 40,962 40,962 Accrued interest payable Level 2 2,258 2,258 1,088 1,088 Interest rate lock commitments Level 3 225 225 157 157 Forward commitments Level 2 971 971 119 119 Customer derivatives - interest rate swaps Level 2 1,413 1,413 431 431 Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 377,885 7,798 327,788 504 Letters of credit Level 2 7,054 — 9,750 —
Schedule of level 3 inputs reconciliation	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of the period $ 4,595 375 $ 504 310 Increase in value 3,203 (92) 7,294 (27) Balance at end of the period $ 7,798 283 $ 7,798 283
Schedule of measurement inputs	Significant Fair Value Unobservable Range of Weighted Level 3 Valuation Technique Input Inputs Average September 30, 2020 $ 7,798 Market comparable pricing Pull through 1 - 99 % 85.38 % December 31, 2019 504 Market comparable pricing Pull through 1 - 99 93.41

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
Derivative Financial Instruments (Tables)	Sep. 30, 2020
Derivative Financial Instruments
Summary of the notional amounts and fair values of derivative financial instruments	September 30, 2020 December 31, 2019 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 497,093 7,798 47,660 504 Negative fair values Other liabilities 46,890 (225) 22,663 (157) Total 543,983 7,573 70,323 347 Forward Commitments Positive fair values Other assets 75,500 57 4,500 6 Negative fair values Other liabilities 215,500 (971) 58,250 (119) Total 291,000 (914) 62,750 (113) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 17,906 1,284 3,271 382 Negative fair values Other liabilities 17,906 (1,413) 3,271 (431) Total 35,812 (129) 6,542 (49) Total derivative financial instruments $ 870,795 6,530 139,615 185
Summary of the fair value gains and losses on derivative financial instruments	Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2020 2019 2020 2019 Interest Rate Lock Commitments $ 3,161 (102) $ 7,226 (68) Forward Commitments (129) 124 (801) 101 Customer Derivatives - Interest Rate Swaps (4) (22) (79) (48) Net fair value gains (losses) on derivative financial instruments $ 3,028 — $ 6,346 (15)

Segment (Tables)

Segment (Tables)	9 Months Ended
Segment (Tables)	Sep. 30, 2020
Segments
Schedule of business segment financial information	Segment Information Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 12,104 (19) 630 12,715 $ 9,203 4 67 9,274 Provision for loan losses 3,956 — — 3,956 705 — — 705 Net interest income after provision 8,148 (19) 630 8,759 8,498 4 67 8,569 Non-interest Income Mortgage banking income 574 — 21,238 21,812 74 — 7,241 7,315 Wealth management income — 951 — 951 31 891 — 922 SBA income 641 — — 641 635 — — 635 Net change in fair values (4) — 6,057 6,053 (23) — 53 30 Net (loss) on hedging activity — — (2,637) (2,637) — — (300) (300) Other 2,045 — 195 2,240 534 — 73 607 Non-interest income 3,256 951 24,853 29,060 1,251 891 7,067 9,209 Non-interest expense 8,829 788 16,217 25,834 6,915 834 5,798 13,547 Income before income taxes $ 2,575 144 9,266 11,985 $ 2,834 61 1,336 4,231 Total Assets $ 1,525,883 5,399 227,366 1,758,648 $ 1,071,450 5,398 50,089 1,126,937 Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 32,725 (24) 1,277 33,978 $ 26,437 68 167 26,672 Provision for loan losses 7,139 — — 7,139 938 — — 938 Net interest income after provision 25,586 (24) 1,277 26,839 25,499 68 167 25,734 Non-interest Income Mortgage banking income 973 — 44,422 45,395 175 — 17,442 17,617 Wealth management income — 2,825 — 2,825 110 2,588 — 2,698 SBA income 1,821 — — 1,821 1,150 — — 1,150 Net change in fair values (68) — 11,012 10,944 (49) — 341 292 Net (loss) on hedging activity — — (7,363) (7,363) — — (792) (792) Other 2,931 14 405 3,350 1,409 — 282 1,691 Non-interest income 5,657 2,839 48,476 56,972 2,795 2,588 17,273 22,656 Non-interest expense 23,341 2,363 35,448 61,152 20,312 2,268 16,400 38,980 Income before income taxes $ 7,902 452 14,305 22,659 $ 7,982 388 1,040 9,410 Total Assets $ 1,525,883 5,399 227,366 1,758,648 $ 1,071,450 5,398 50,089 1,126,937

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income available to common stockholders	$ 9,212	$ 3,317	$ 17,441	$ 7,345
Denominator for basic earnings per share - weighted average shares outstanding	6,099	6,407	6,172	6,407
Effect of dilutive common shares	11	30	21	29
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	6,110	6,437	6,193	6,436
Basic earnings per share (in dollars per share)	$ 1.51	$ 0.52	$ 2.83	$ 1.15
Diluted earnings per share (in dollars per share)	$ 1.51	$ 0.52	$ 2.82	$ 1.14
Antidilutive shares excluded from computation of average dilutive earnings per share	265	199	192	199

Goodwill and Other Intangible_2

Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Goodwill and other intangibles rollforward
Goodwill, Beginning Balance	$ 899
Goodwill, Ending Balance	899
Amortization expense	(206)
Total Intangible Assets	3,668	$ 3,874
Total	4,567	4,773
Accumulated Amortization	956	$ 750
Impairment	0
Customer relationships
Goodwill and other intangibles rollforward
Finite-Lived Intangible Assets, Beginning Balance	3,523
Amortization expense	(154)
Finite-Lived Intangible Assets, Ending Balance	$ 3,369
Amortization Period	20 years
Non competition agreements
Goodwill and other intangibles rollforward
Finite-Lived Intangible Assets, Beginning Balance	$ 85
Amortization expense	(52)
Finite-Lived Intangible Assets, Ending Balance	$ 33
Amortization Period	4 years
Trade name
Goodwill and other intangibles rollforward
Indefinite-lived Intangible Assets (Excluding Goodwill), Beginning Balance	$ 266
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance	$ 266

Securities - Amortized cost and

Securities - Amortized cost and fair value (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Securities available-for-sale:
Amortized Cost	$ 101,471	$ 58,874
Available-for-sale, Gross Unrealized Gains	2,319	366
Available-for-sale, Gross Unrealized Losses	(432)	(384)
Securities available-for-sale	103,358	58,856
Securities held to maturity:
Held-to-maturity, Amortized Cost	6,544	8,780
Held-to-maturity, Gross Unrealized Gains	372	223
Fair Value	$ 6,916	$ 9,003
Number of securities deemed other-than-temporarily impaired \| security	0	0
U.S. asset backed securities
Securities available-for-sale:
Amortized Cost	$ 24,705	$ 11,967
Available-for-sale, Gross Unrealized Gains	211
Available-for-sale, Gross Unrealized Losses	(172)	(101)
Securities available-for-sale	$ 24,744	$ 11,866
Securities held to maturity:
Number of securities in unrealized loss positions \| security	14	9
U.S. government agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	$ 3,919	$ 5,457
Available-for-sale, Gross Unrealized Gains	192	66
Available-for-sale, Gross Unrealized Losses		(26)
Securities available-for-sale	4,111	$ 5,497
Securities held to maturity:
Number of securities in unrealized loss positions \| security		1
U.S. government agency collateralized mortgage obligations
Securities available-for-sale:
Amortized Cost	21,375	$ 35,096
Available-for-sale, Gross Unrealized Gains	1,108	300
Available-for-sale, Gross Unrealized Losses		(173)
Securities available-for-sale	$ 22,483	$ 35,223
Securities held to maturity:
Number of securities in unrealized loss positions \| security	1	15
State and municipal securities
Securities available-for-sale:
Amortized Cost	$ 48,789	$ 6,354
Available-for-sale, Gross Unrealized Gains	805
Available-for-sale, Gross Unrealized Losses	(255)	(84)
Securities available-for-sale	49,339	6,270
Securities held to maturity:
Held-to-maturity, Amortized Cost	6,544	8,780
Held-to-maturity, Gross Unrealized Gains	372	223
Fair Value	$ 6,916	$ 9,003
Number of securities in unrealized loss positions \| security	15	6
Corporate bonds
Securities available-for-sale:
Amortized Cost	$ 2,683
Available-for-sale, Gross Unrealized Gains	3
Available-for-sale, Gross Unrealized Losses	(5)
Securities available-for-sale	$ 2,681
Securities held to maturity:
Number of securities in unrealized loss positions \| security	2

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Securities
Proceeds from Sale of Debt Securities, Available-for-sale	$ 26,400	$ 2,700	$ 44,592	$ 19,366
Gross gain on sale of available for sale investments	1,300	74	1,500	254
Gross loss on sale of available for sale investments	0	$ 0	202	$ 42
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	39,899		39,899		$ 34,419
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	8,085		8,085		4,744
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	47,984		47,984		39,163
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	(326)		(326)		(301)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(106)		(106)		(83)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(432)		(432)		(384)
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value
Held-to-maturity securities, Continuous Unrealized Loss Position, Fair Value, Total	0		0		0
U.S. asset 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	10,704		10,704		11,866
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	8,085		8,085
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	18,789		18,789		11,866
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	(66)		(66)		(101)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(106)		(106)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(172)		(172)		(101)
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, 12 Months or Longer					1,636
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total					1,636
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer					(26)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total					(26)
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					16,283
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer					3,108
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total					19,391
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					(116)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer					(57)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total					(173)
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	27,950		27,950		6,270
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	27,950		27,950		6,270
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	(255)		(255)		(84)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(255)		(255)		$ (84)
Corporate bonds
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,245		1,245
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	1,245		1,245
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	(5)		(5)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ (5)		$ (5)

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	$ 101,471	$ 58,874
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	103,358	58,856
Contractual Maturities, Held-to-maturity, Amortized Cost
Amortized Cost	6,544	8,780
Contractual Maturities, Held-to-maturity, Fair Value
Fair Value	6,916	9,003
U.S. Asset Backed And State And Municipal Securities
Contractual Maturities, Available-for-sale, Amortized Cost
Due after five years through ten years	8,590	1,329
Due after ten years	67,587	16,992
Amortized Cost	76,177	18,321
Contractual Maturities, Available-for-sale, Fair Value
Due after five years through ten year	8,568	1,324
Due after ten years	68,196	16,812
Fair Value	76,764	18,136
Contractual Maturities, Held-to-maturity, Amortized Cost
Due after one year through five years	3,196	4,242
Due after five years through ten years	3,348	4,538
Amortized Cost	6,544	8,780
Contractual Maturities, Held-to-maturity, Fair Value
Due after one year through five years	3,318	4,311
Due after five years through ten years	3,598	4,692
Fair Value	6,916	9,003
Mortgage-related securities
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	25,294	40,553
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	$ 26,594	$ 40,720

Loans Receivable - Loans and le

Loans Receivable - Loans and leases outstanding by category (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans Receivable
Mortgage loans held for sale (amortized cost of $XXX and $33,363 as of June 30, 2020 and December 31, 2019), at fair value	$ 225,150	$ 33,704
Total portfolio loans and leases	1,313,489	966,499
Total loans and leases	1,538,639	1,000,203
Loans at fair value	11,366	10,546
Real estate loans
Loans Receivable
Total portfolio loans and leases	739,078	669,882
Commercial mortgage
Loans Receivable
Total portfolio loans and leases	460,952	362,590
Home equity lines and loans
Loans Receivable
Total portfolio loans and leases	71,400	81,583
Residential mortgage
Loans Receivable
Total portfolio loans and leases	55,500	53,665
Loans at fair value	11,366	10,546
Construction
Loans Receivable
Total portfolio loans and leases	151,226	172,044
Commercial and industrial, including leases
Loans Receivable
Total portfolio loans and leases	256,452	273,301
Small business loans
Loans Receivable
Total portfolio loans and leases	44,280	21,616
Paycheck Protection Program loans
Loans Receivable
Total portfolio loans and leases	259,723
Consumer
Loans Receivable
Total portfolio loans and leases	582	1,003
Leases
Loans Receivable
Total portfolio loans and leases	$ 13,374	$ 697

Loans Receivable - Loans and _2

Loans Receivable - Loans and leases outstanding by rate type (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans Receivable
Loans with predetermined rates	$ 720,791	$ 293,114
Loans with adjustable or floating rates	817,848	707,089
Total loans and leases	1,538,639	1,000,203
Net deferred loan origination (fees) costs	$ (6,643)	$ (1,789)

Loans Receivable - Components o

Loans Receivable - Components of the net investment in leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans Receivable
Minimum lease payments receivable	$ 16,306	$ 729
Unearned lease income	(2,932)	(32)
Total	$ 13,374	$ 697

Loans Receivable - Age analysis

Loans Receivable - Age analysis of past due loans and leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Age Analysis of Past Due Loans and Leases
Total past due	$ 397	$ 5,043
Current	1,305,180	958,221
Total Accruing Loans and leases	1,305,577	963,264
Nonaccrual loans and leases	7,912	3,235
Loans and Leases Receivable, Gross, Total	$ 1,313,489	$ 966,499
Delinquency percentage	0.63%	0.86%
Loans at fair value	$ 11,366	$ 10,546
Commercial mortgage
Age Analysis of Past Due Loans and Leases
Current	460,285	361,857
Total Accruing Loans and leases	460,285	361,857
Nonaccrual loans and leases	667	733
Loans and Leases Receivable, Gross, Total	$ 460,952	$ 362,590
Delinquency percentage	0.14%	0.20%
Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Current	$ 70,737	$ 81,046
Total Accruing Loans and leases	70,737	81,046
Nonaccrual loans and leases	663	537
Loans and Leases Receivable, Gross, Total	$ 71,400	$ 81,583
Delinquency percentage	0.93%	0.66%
Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due	$ 389	$ 4,675
Current	52,578	47,446
Total Accruing Loans and leases	52,967	52,121
Nonaccrual loans and leases	2,533	1,544
Loans and Leases Receivable, Gross, Total	$ 55,500	$ 53,665
Delinquency percentage	5.26%	11.59%
Loans at fair value	$ 11,366	$ 10,546
Construction
Age Analysis of Past Due Loans and Leases
Current	151,226	172,044
Total Accruing Loans and leases	151,226	172,044
Loans and Leases Receivable, Gross, Total	151,226	172,044
Commercial and industrial, including leases
Age Analysis of Past Due Loans and Leases
Total past due		206
Current	252,403	272,674
Total Accruing Loans and leases	252,403	272,880
Nonaccrual loans and leases	4,049	421
Loans and Leases Receivable, Gross, Total	$ 256,452	$ 273,301
Delinquency percentage	1.58%	0.23%
Small business loans
Age Analysis of Past Due Loans and Leases
Current	$ 44,280	$ 21,616
Total Accruing Loans and leases	44,280	21,616
Loans and Leases Receivable, Gross, Total	44,280	21,616
Paycheck Protection Program loans
Age Analysis of Past Due Loans and Leases
Current	259,723
Total Accruing Loans and leases	259,723
Loans and Leases Receivable, Gross, Total	259,723
Consumer
Age Analysis of Past Due Loans and Leases
Current	582	1,003
Total Accruing Loans and leases	582	1,003
Loans and Leases Receivable, Gross, Total	582	1,003
Leases
Age Analysis of Past Due Loans and Leases
Total past due	8	162
Current	13,366	535
Total Accruing Loans and leases	13,374	697
Loans and Leases Receivable, Gross, Total	$ 13,374	$ 697
Delinquency percentage	0.06%	23.24%
Current \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Loans at fair value	$ 10,489	$ 9,056
30-89 days past due
Age Analysis of Past Due Loans and Leases
Total past due	397	5,043
30-89 days past due \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due	389	4,675
Loans at fair value		786
30-89 days past due \| Commercial and industrial, including leases
Age Analysis of Past Due Loans and Leases
Total past due		206
30-89 days past due \| Leases
Age Analysis of Past Due Loans and Leases
Total past due	8	162
Nonaccrual \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Loans at fair value	$ 877	$ 704

Allowance for Loan Losses (th_3

Allowance for Loan Losses (the Allowance) - Roll-forward of allowance by portfolio segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	$ 12,706	$ 8,625	$ 9,513	$ 8,053
Charge-offs	(97)	(30)	(130)	(30)
Recoveries	8	12	51	351
Provision	3,956	705	7,139	938
Balance at end of period	16,573	9,312	16,573	9,312
Commercial mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	5,277	3,197	3,426	3,209
Recoveries		1		6
Provision	1,658	257	3,509	240
Balance at end of period	6,935	3,455	6,935	3,455
Home equity lines and loans
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	672	354	342	323
Charge-offs	(75)		(89)
Recoveries	2	2	6	10
Provision	(82)	(28)	258	(5)
Balance at end of period	517	328	517	328
Residential mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	346	200	179	191
Recoveries	1	2	5	4
Provision	(13)	(30)	150	(23)
Balance at end of period	334	172	334	172
Construction
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	2,019	2,033	2,362	1,627
Provision	463	136	120	542
Balance at end of period	2,482	2,169	2,482	2,169
Commercial and industrial, including leases
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	3,606	2,719	2,684	2,612
Charge-offs	(22)	(30)	(31)	(30)
Recoveries	4	6	37	328
Provision	1,450	171	2,348	(44)
Balance at end of period	5,038	2,866	5,038	2,866
Small business loans
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	747	111	509	78
Provision	360	198	598	231
Balance at end of period	1,107	309	1,107	309
Consumer
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	4	4	6	3
Charge-offs			(10)
Recoveries	1	1	3	3
Provision	(1)	1	5
Balance at end of period	4	6	4	6
Leases
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	35	7	5	10
Provision	121		151	(3)
Balance at end of period	$ 156	$ 7	$ 156	$ 7

Allowance for Loan Losses (th_4

Allowance for Loan Losses (the Allowance) - Allowance allocated by portfolio segment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	$ 1,581		$ 136
Allowance on loans and leases collectively evaluated for impairment	14,992		9,377
Total	16,573	$ 12,706	9,513	$ 9,312	$ 8,625	$ 8,053
Carrying value of loans and leases individually evaluated for impairment	10,447		7,307
Carrying value of loans and leases collectively evaluated for impairment	1,291,676		948,646
Total	1,302,123		955,953
Commercial mortgage
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	6,935		3,426
Total	6,935	5,277	3,426	3,455	3,197	3,209
Carrying value of loans and leases individually evaluated for impairment	2,005		2,138
Carrying value of loans and leases collectively evaluated for impairment	458,947		360,452
Total	460,952		362,590
Home equity lines and loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	16		46
Allowance on loans and leases collectively evaluated for impairment	501		296
Total	517	672	342	328	354	323
Carrying value of loans and leases individually evaluated for impairment	663		536
Carrying value of loans and leases collectively evaluated for impairment	70,737		81,047
Total	71,400		81,583
Residential mortgage
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	334		179
Total	334	346	179	172	200	191
Carrying value of loans and leases individually evaluated for impairment	1,648		854
Carrying value of loans and leases collectively evaluated for impairment	42,486		42,265
Total	44,134		43,119
Construction
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	2,482		2,362
Total	2,482	2,019	2,362	2,169	2,033	1,627
Carrying value of loans and leases individually evaluated for impairment	1,206		1,247
Carrying value of loans and leases collectively evaluated for impairment	150,020		170,797
Total	151,226		172,044
Commercial and industrial, including leases
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	1,565		27
Allowance on loans and leases collectively evaluated for impairment	3,473		2,657
Total	5,038	3,606	2,684	2,866	2,719	2,612
Carrying value of loans and leases individually evaluated for impairment	4,726		1,288
Carrying value of loans and leases collectively evaluated for impairment	251,726		272,013
Total	256,452		273,301
Small business loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment			63
Allowance on loans and leases collectively evaluated for impairment	1,107		446
Total	1,107	747	509	309	111	78
Carrying value of loans and leases individually evaluated for impairment	199		1,244
Carrying value of loans and leases collectively evaluated for impairment	44,081		20,372
Total	44,280		21,616
Paycheck Protection Program loans
Impaired Loans
Carrying value of loans and leases collectively evaluated for impairment	259,723
Total	259,723
Consumer
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	4		6
Total	4	4	6	6	4	3
Carrying value of loans and leases collectively evaluated for impairment	582		1,003
Total	582		1,003
Leases
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	156		5
Total	156	$ 35	5	$ 7	$ 7	$ 10
Carrying value of loans and leases collectively evaluated for impairment	13,374		697
Total	$ 13,374		$ 697

Allowance for Loan Losses (th_5

Allowance for Loan Losses (the Allowance) - Carrying value based on credit quality indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 1,244,033	$ 911,134
Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	1,175,792	877,264
Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	48,016	16,690
Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	16,502	17,180
Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,723
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	460,952	362,590
Commercial mortgage \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	441,090	353,724
Commercial mortgage \| Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	16,260	5,821
Commercial mortgage \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,602	3,045
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	71,400	81,583
Home equity lines and loans \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	70,251	81,046
Home equity lines and loans \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	1,149	537
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	151,226	172,044
Construction \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	142,420	170,823
Construction \| Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	8,806	1,221
Commercial and industrial, including leases \| Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	256,452	273,301
Commercial and industrial, including leases \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	220,760	251,320
Commercial and industrial, including leases \| Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	22,950	9,648
Commercial and industrial, including leases \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	9,019	12,333
Commercial and industrial, including leases \| Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,723
Small business 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	44,280	21,616
Small business loans \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	41,548	20,351
Small business loans \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	2,732	$ 1,265
Paycheck Protection Program 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	259,723
Paycheck Protection Program loans \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 259,723

Allowance for Loan Losses (th_6

Allowance for Loan Losses (the Allowance) - Carrying value based on performance status (Details) $ in Thousands	Sep. 30, 2020USD ($)loan	Dec. 31, 2019USD ($)loan
Loans and Leases by Credit Ratings
Troubled debt restructurings	$ 3,674	$ 3,918
Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	58,090	44,819
Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	56,442	43,965
Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	1,648	854
Residential mortgage \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	44,134	43,119
Residential mortgage \| Performing
Loans and Leases by Credit Ratings
Troubled debt restructurings	0	0
Carrying value of residential mortgage, consumer and leases	42,486	42,265
Residential mortgage \| Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 1,648	$ 854
Number of loans \| loan	5	5
Loans receivable, net of the allowance and lease losses	$ 877	$ 839
Consumer \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	582	1,003
Consumer \| Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	582	1,003
Leases \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	13,374	697
Leases \| Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 13,374	$ 697

Allowance for Loan Losses (th_7

Allowance for Loan Losses (the Allowance) - Impaired loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Impaired loans with related allowance:
Recorded investment	$ 4,002	$ 2,080
Principal balance	4,013	2,080
Related allowance	1,581	136
Impaired loans without related allowance:
Recorded investment	6,445	5,227
Principal balance	6,566	5,310
Grand Total
Recorded investment	10,447	7,307
Principal balance	10,579	7,390
Related allowance	1,581	136
Commercial mortgage
Impaired loans without related allowance:
Recorded investment	2,005	2,138
Principal balance	2,035	2,173
Commercial and industrial, including leases
Impaired loans with related allowance:
Recorded investment	3,903	617
Principal balance	3,907	617
Related allowance	1,565	27
Impaired loans without related allowance:
Recorded investment	823	671
Principal balance	897	718
Small business loans
Impaired loans with related allowance:
Recorded investment	199	1,002
Principal balance	199	1,002
Related allowance		63
Impaired loans without related allowance:
Recorded investment		242
Principal balance		242
Home equity lines and loans
Impaired loans with related allowance:
Recorded investment	99	461
Principal balance	106	461
Related allowance	16	46
Impaired loans without related allowance:
Recorded investment	564	75
Principal balance	581	75
Residential mortgage
Impaired loans without related allowance:
Recorded investment	1,648	854
Principal balance	1,648	854
Construction
Impaired loans without related allowance:
Recorded investment	1,206	1,247
Principal balance	$ 1,206	$ 1,248

Allowance for Loan Losses (th_8

Allowance for Loan Losses (the Allowance) - Impaired Loan Average Recorded Investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Impaired loans with related allowance:
Average recorded investment	$ 4,007	$ 816	$ 1,869	$ 822
Impaired loans without related allowance:
Average recorded investment	6,581	5,203	6,034	5,279
Grand Total
Average recorded investment	10,588	6,019	7,903	6,101
Interest income recognized on performing impaired loans	139	50	281	152
Commercial mortgage
Impaired loans without related allowance:
Average recorded investment	2,080	2,220	1,852	2,272
Commercial and industrial, including leases
Impaired loans with related allowance:
Average recorded investment	3,907	561	1,766	566
Impaired loans without related allowance:
Average recorded investment	874	597	700	602
Small business loans
Impaired loans without related allowance:
Average recorded investment	208	259	220	262
Home equity lines and loans
Impaired loans with related allowance:
Average recorded investment	100	255	103	256
Impaired loans without related allowance:
Average recorded investment	564		575
Residential mortgage
Impaired loans without related allowance:
Average recorded investment	1,649	857	1,478	857
Construction
Impaired loans without related allowance:
Average recorded investment	$ 1,206	$ 1,270	$ 1,209	$ 1,286

Allowance for Loan Losses (th_9

Allowance for Loan Losses (the Allowance) - Troubled debt restructuring (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Allowance for Loan Losses (the Allowance)
TDRs included in nonperforming loans and leases	$ 246	$ 319
TDRs in compliance with modified terms	3,428	3,599
Total TDRs	$ 3,674	$ 3,918

Allowance for Loan Losses (t_10

Allowance for Loan Losses (the Allowance) - Loan and lease modifications granted categorized as TDRs (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract
Loan and lease modifications
Number of Contracts \| contract	0	0	1	0
Pre-Modification Outstanding Recorded Investment			$ 58
Post-Modification Outstanding Recorded Investment			58
Loan and lease modifications granted and subsequently defaulted	$ 0	$ 0	$ 0	$ 0
Commercial and industrial, including leases
Loan and lease modifications
Number of Contracts \| contract			1
Pre-Modification Outstanding Recorded Investment			$ 58
Post-Modification Outstanding Recorded Investment			$ 58

Allowance for Loan Losses (t_11

Allowance for Loan Losses (the Allowance) - COVID-19 Loan modifications Programs (Details) $ in Thousands	Sep. 30, 2020USD ($)
COVID-19 Loan Modification Programs
Portfolio Balance	$ 1,042,400
Total Modifications	154,064
Active Modifications	19,136
Commercial mortgage
COVID-19 Loan Modification Programs
Portfolio Balance	460,952
Total Modifications	86,591
Active Modifications	4,182
Commercial and industrial, including leases
COVID-19 Loan Modification Programs
Portfolio Balance	269,826
Total Modifications	24,362
Active Modifications	200
Construction & land development
COVID-19 Loan Modification Programs
Portfolio Balance	151,226
Total Modifications	36,819
Active Modifications	14,196
Home equity lines and loans
COVID-19 Loan Modification Programs
Portfolio Balance	71,400
Total Modifications	1,348
Residential mortgage
COVID-19 Loan Modification Programs
Portfolio Balance	44,134
Total Modifications	4,800
Active Modifications	558
Small business loans
COVID-19 Loan Modification Programs
Portfolio Balance	44,280
Total Modifications	144
Consumer
COVID-19 Loan Modification Programs
Portfolio Balance	$ 582

Allowance for Loan Losses (t_12

Allowance for Loan Losses (the Allowance) - Non-TDR Loan modifications due to COVID-19 (Details) $ in Thousands	Jul. 15, 2020USD ($)item	Oct. 26, 2020USD ($)	Sep. 30, 2020USD ($)
Financing Receivable, Modifications [Line Items]
Portfolio Balance			$ 1,042,400
Commercial mortgage
Financing Receivable, Modifications [Line Items]
Active payment deferrals		$ 4,400
Commercial mortgage \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Amount of financing receivable modified as non-troubled debt restructuring loans	$ 111,000
Number of non-troubled debt restructurings (TDR) loans that have been modified \| item	146
Number of billing cycles of payment holidays \| item	3
Construction
Financing Receivable, Modifications [Line Items]
Active payment deferrals		14,200
Construction \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Amount of financing receivable modified as non-troubled debt restructuring loans	$ 36,800
Number of non-troubled debt restructurings (TDR) loans that have been modified \| item	35
Construction \| Payment Deferral \| Minimum
Financing Receivable, Modifications [Line Items]
Number of billing cycles of payment holidays \| item	3
Construction \| Payment Deferral \| Maximum
Financing Receivable, Modifications [Line Items]
Number of billing cycles of payment holidays \| item	6
Consumer
Financing Receivable, Modifications [Line Items]
Portfolio Balance			582
Consumer \| Payment Deferral \| Minimum
Financing Receivable, Modifications [Line Items]
Number of billing cycles of payment holidays \| item	3
Consumer \| Payment Deferral \| Maximum
Financing Receivable, Modifications [Line Items]
Number of billing cycles of payment holidays \| item	6
Residential mortgage and home equity loans \| Payment Deferral
Financing Receivable, Modifications [Line Items]
Amount of financing receivable modified as non-troubled debt restructuring loans	$ 6,200
Number of non-troubled debt restructurings (TDR) loans that have been modified \| item	25
Residential mortgage
Financing Receivable, Modifications [Line Items]
Portfolio Balance			$ 44,134
Active payment deferrals		$ 558

Short-Term Borrowings and Lon_2

Short-Term Borrowings and Long-Term Debt - Short-term borrowings (Details)	9 Months Ended
	Sep. 30, 2020USD ($)item	Dec. 31, 2019USD ($)
Short-Term Borrowings
Short term borrowings	$ 104,239,000	$ 123,676,000
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	24,000,000
Federal funds purchased, facility two \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	15,000,000
PPPLF Advance
Short-Term Borrowings
Short term borrowings	$ 235,900,000
Interest rate (as a percent)	0.35%
Open Repo Plus Weekly 0.39% Maturing On 05/28/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 56,640,000	102,320,000
Interest rate (as a percent)	0.39%
Mid-term Repo-fixed 2.76% Maturing On 08/10/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		5,000,000
Interest rate (as a percent)	2.76%
Mid-term Repo-fixed 1.59% Maturing On 08/10/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		5,144,000
Interest rate (as a percent)	1.59%
Mid-Term Repo Fixed Rate 1.59% Maturing On 09/11/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		7,676,000
Interest rate (as a percent)	1.59%
Federal Reserve discount window \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	$ 10,600,000
Short term borrowings	$ 10,000,000	0
Interest rate (as a percent)	0.25%
Mid-term Repo-fixed 0.42% Maturing On 12/09/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 3,752,000
Interest rate (as a percent)	0.42%
Mid Term Repo-fixed 0.36 Percent, Maturing On 01/13/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 4,605,000
Interest rate (as a percent)	0.36%
Mid Term Repo-fixed 0.23 Percent, Maturing On 01/27/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 5,465,000
Interest rate (as a percent)	0.23%
Mid-term Repo-fixed 0.79% Maturing On 03/09/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 10,417,000
Interest rate (as a percent)	0.79%
Mid-term Repo-fixed 0.88% Maturing On 03/22/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 10,238,000
Interest rate (as a percent)	0.88%
Mid Term Repo-fixed 1.88 Percent, Maturing On 06/28/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 3,122,000
Interest rate (as a percent)	1.88%
Mid-term Repo-fixed 2.03% Maturing On 03/27/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		3,123,000
Interest rate (as a percent)	2.03%
Acquisition Purchase Note 3.00% Maturing On 04/01/2020 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		$ 413,000
Interest rate (as a percent)	3.00%

Short-Term Borrowings and Lon_3

Short-Term Borrowings and Long-Term Debt - Long-term debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Long Term Debt
Long-term debt	$ 250,131	$ 3,123
PPPLF Advance
Long Term Debt
Fixed interest rate (as a percent)	0.35%
Long-term debt	$ 235,953
Federal Home Loan Bank of Pittsburgh \| Mid-term Repo-fixed Maturing On 03/21/2022
Long Term Debt
Fixed interest rate (as a percent)	0.92%
Long-term debt	$ 1,900
Federal Home Loan Bank of Pittsburgh \| Mid-term Repo-fixed Maturing On 06/29/2022
Long Term Debt
Fixed interest rate (as a percent)	0.32%
Long-term debt	$ 7,392	3,123
Federal Home Loan Bank of Pittsburgh \| Mid-term Repo-fixed Maturing On 09/12/2022
Long Term Debt
Fixed interest rate (as a percent)	0.23%
Long-term debt	$ 4,886
Federal Home Loan Bank of Pittsburgh \| Letters of credit
Long Term Debt
Proceeds from long term debt	129,000
Maximum borrowing capacity	$ 615,300	$ 507,300

Servicing Assets - Residential

Servicing Assets - Residential Mortgage Loans (Details) - Mortgage Servicing Rights - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Servicing Assets at Fair Value [Line Items]
Loans serviced	$ 298,700,000		$ 298,700,000		$ 60,300,000
Servicing fee income	140,000	$ 25,000	247,000	$ 59,000
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	1,294,000	236,000	446,000	232,000
Servicing rights capitalized	1,333,000	107,000	2,469,000	198,000
Amortization of servicing rights	(90,000)	(17,000)	(173,000)	(39,000)
Change in valuation allowance	102,000	(12,000)	(103,000)	(77,000)
Balance at end of the period	2,639,000	314,000	2,639,000	314,000
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	303,000	65,000	98,000
Impairment		(12,000)	(103,000)	(77,000)
Recovery	102,000
Valuation allowance, end of the period	$ 201,000	$ 77,000	$ 201,000	$ 77,000

Servicing Assets - MSR Sensitiv

Servicing Assets - MSR Sensitivity Analysis (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of residential mortgage servicing rights	$ 2,639	$ 446
Weighted average life (years)	5 years	7 years 9 months 18 days
Prepayment speed	12.00%	13.08%
Impact on fair value of a 10% adverse change in prepayment speed	$ (99)	$ (19)
Impact on fair value of a 20% adverse change in prepayment speed	$ (192)	$ (37)
Discount rate	9.00%	9.00%
Impact on fair value of a 10% adverse change in the discount rate	$ (98)	$ (14)
Impact on fair value of a 20% adverse change in the discount rate	$ (189)	$ (27)

Servicing Assets - SBA Loans (D

Servicing Assets - SBA Loans (Details) - SBA Loan Servicing Rights - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Servicing Assets at Fair Value [Line Items]
Loans serviced	$ 44,800,000		$ 44,800,000		$ 18,000,000
Servicing fee income	49,000	$ 8,000	101,000	$ 8,000
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	632,000	133,000	337,000
Servicing rights capitalized	183,000	198,000	524,000	331,000
Amortization of servicing rights	(42,000)	(6,000)	(88,000)	(6,000)
Change in valuation allowance	14,000	(4,000)	14,000	(4,000)
Balance at end of the period	787,000	321,000	787,000	321,000
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	(26,000)		(26,000)
Impairment		(4,000)		(4,000)
Recovery	14,000		14,000
Valuation allowance, end of the period	$ (12,000)	$ (4,000)	$ (12,000)	$ (4,000)

Servicing Assets - SBA Sensitiv

Servicing Assets - SBA Sensitivity Analysis (Details) - SBA Loan Servicing Rights - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Fair value of SBA loan servicing rights	$ 889	$ 337
Weighted average life (years)	3 years 7 months 6 days	4 years 3 months 18 days
Prepayment speed	12.79%	10.77%
Impact on fair value of a 10% adverse change in prepayment speed	$ (36)	$ (12)
Impact on fair value of a 20% adverse change in prepayment speed	$ (69)	$ (23)
Discount rate	6.57%	11.28%
Impact on fair value of a 10% adverse change in the discount rate	$ (23)	$ (9)
Impact on fair value of a 20% adverse change in the discount rate	$ (46)	$ (18)

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	Sep. 30, 2020	Dec. 31, 2019
Assets
Securities available-for-sale	$ 103,358	$ 58,856
Equity investments	1,034	1,009
Mortgage loans held-for-investment	11,366	10,546
U.S. asset backed securities
Assets
Securities available-for-sale	24,744	11,866
U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	4,111	5,497
U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	22,483	35,223
State and municipal securities
Assets
Securities available-for-sale	49,339	6,270
Corporate bonds
Assets
Securities available-for-sale	2,681
Level 3 \| Interest rate lock commitments
Assets
Derivative assets, Fair value	7,798	504
Recurring
Assets
Equity investments	1,034
Mortgage loans held-for-sale	225,150	33,704
Mortgage loans held-for-investment	11,366	10,546
Total	350,047	105,007
Liabilities
Total	2,609	707
Recurring \| U.S. asset backed securities
Assets
Securities available-for-sale	24,744	11,866
Recurring \| U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	4,111	5,497
Recurring \| U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	22,483	35,223
Recurring \| State and municipal securities
Assets
Securities available-for-sale	49,339	6,270
Recurring \| Corporate bonds
Assets
Securities available-for-sale	2,681
Recurring \| Investments in mutual funds
Assets
Securities available-for-sale		1,009
Recurring \| Interest rate lock commitments
Assets
Derivative assets, Fair value	7,798	504
Liabilities
Derivative Liability	225	157
Recurring \| Forward Commitments
Assets
Derivative assets, Fair value	57	6
Liabilities
Derivative Liability	971	119
Recurring \| Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	1,284	382
Liabilities
Derivative Liability	1,413	431
Recurring \| Level 2
Assets
Equity investments	1,034
Mortgage loans held-for-sale	225,150	33,704
Mortgage loans held-for-investment	11,366	10,546
Total	342,249	104,503
Liabilities
Total	2,384	550
Recurring \| Level 2 \| U.S. asset backed securities
Assets
Securities available-for-sale	24,744	11,866
Recurring \| Level 2 \| U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	4,111	5,497
Recurring \| Level 2 \| U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	22,483	35,223
Recurring \| Level 2 \| State and municipal securities
Assets
Securities available-for-sale	49,339	6,270
Recurring \| Level 2 \| Corporate bonds
Assets
Securities available-for-sale	2,681
Recurring \| Level 2 \| Investments in mutual funds
Assets
Securities available-for-sale		1,009
Recurring \| Level 2 \| Forward Commitments
Assets
Derivative assets, Fair value	57	6
Liabilities
Derivative Liability	971	119
Recurring \| Level 2 \| Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	1,284	382
Liabilities
Derivative Liability	1,413	431
Recurring \| Level 3
Assets
Total	7,798	504
Liabilities
Total	225	157
Recurring \| Level 3 \| Interest rate lock commitments
Assets
Derivative assets, Fair value	7,798	504
Liabilities
Derivative Liability	$ 225	$ 157

Fair Value Measurements and D_4

Fair Value Measurements and Disclosures - Financial assets measured at fair value on non-recurring basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	$ 2,639	$ 446
SBA loan servicing rights	632	337
Impaired loans	2,421	804
Other real estate owned		120
Total	$ 5,692	$ 1,707

Fair Value Measurements and D_5

Fair Value Measurements and Disclosures - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets:
Securities available-for-sale	$ 103,358	$ 58,856
Securities held-to-maturity	6,916	9,003
Equity investments	1,034	1,009
Mortgage loans held-for-investment	11,366	10,546
Carrying amount
Financial assets:
Restricted investment in bank stock	7,650	8,072
Level 1 \| Carrying amount
Financial assets:
Cash and cash equivalents	75,869	39,371
Level 1 \| Fair value
Financial assets:
Cash and cash equivalents	75,869	39,371
Level 2 \| Carrying amount
Financial assets:
Securities available-for-sale	103,358	58,856
Securities held-to-maturity	6,544	8,780
Equity investments	1,034	1,009
Mortgage loans held-for-sale	225,150	33,704
Mortgage loans held-for-investment	11,366	10,546
Financial liabilities:
Deposits	1,209,024	851,168
Short-term borrowings	104,239	123,676
Long-term debt	250,131	3,123
Subordinated debentures	40,814	40,962
Accrued interest payable	2,258	1,088
Level 2 \| Carrying amount \| Forward Commitments
Financial assets:
Derivative asset	57	6
Financial liabilities:
Derivatives	971	119
Level 2 \| Carrying amount \| Customer derivatives - interest rate swaps
Financial assets:
Derivative asset	1,284	382
Financial liabilities:
Derivatives	1,413	431
Level 2 \| Fair value
Financial assets:
Securities available-for-sale	103,358	58,856
Securities held-to-maturity	6,916	9,003
Equity investments	1,034	1,009
Mortgage loans held-for-sale	225,150	33,704
Mortgage loans held-for-investment	11,366	10,546
Financial liabilities:
Deposits	1,361,900	880,400
Short-term borrowings	104,239	123,678
Long-term debt	253,804	3,123
Subordinated debentures	39,674	40,962
Accrued interest payable	2,258	1,088
Level 2 \| Fair value \| Forward Commitments
Financial assets:
Derivative asset	57	6
Financial liabilities:
Derivatives	971	119
Level 2 \| Fair value \| Customer derivatives - interest rate swaps
Financial assets:
Derivative asset	1,284	382
Financial liabilities:
Derivatives	1,413	431
Level 3 \| Interest rate lock commitments
Financial assets:
Derivative asset	7,798	504
Level 3 \| Carrying amount
Financial assets:
Loans receivable, net of the allowance and lease losses	1,278,907	944,651
Accrued interest receivable	4,666	3,148
Level 3 \| Carrying amount \| Interest rate lock commitments
Financial assets:
Derivative asset	7,798	504
Financial liabilities:
Derivatives	225	157
Level 3 \| Fair value
Financial assets:
Loans receivable, net of the allowance and lease losses	1,313,384	973,057
Accrued interest receivable	4,666	3,148
Level 3 \| Fair value \| Interest rate lock commitments
Financial assets:
Derivative asset	7,798	504
Financial liabilities:
Derivatives	$ 225	$ 157

Fair Value Measurements and D_6

Fair Value Measurements and Disclosures - Off-balance sheet financial instruments (Details) - Level 2 - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Carrying amount \| Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 377,885	$ 327,788
Carrying amount \| Letters of credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	7,054	9,750
Fair value \| Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 7,798	$ 504

Fair Value Measurements and D_7

Fair Value Measurements and Disclosures - Fair value on a recurring basis (Details) - Interest rate lock commitments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of the period	$ 4,595	$ 375	$ 504	$ 310
Increase (decrease) in value	3,203	(92)	7,294	(27)
Balance at end of the period	$ 7,798	$ 283	$ 7,798	$ 283

Fair Value Measurements and D_8

Fair Value Measurements and Disclosures - Valuation Techniques for Level 3 interest rate lock (Details) - Interest rate lock commitments - Level 3 $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset	$ 7,798		$ 7,798		$ 504
Valuation technique extensible list	us-gaap:ValuationTechniqueConsensusPricingModelMember		us-gaap:ValuationTechniqueConsensusPricingModelMember		us-gaap:ValuationTechniqueConsensusPricingModelMember
Measurement input extensible list	mrbk:LoanOriginationSucessRateMember		mrbk:LoanOriginationSucessRateMember		mrbk:LoanOriginationSucessRateMember
Net realized gains (losses)	$ 3,200	$ (101)	$ 7,200	$ (67)
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1		1		1
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	99		99		99
Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	85.38		85.38		93.41

Derivative Financial Instrume_3

Derivative Financial Instruments - Notional amounts and fair values of derivative financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Derivative Financial Instruments
Notional Amount	$ 870,795	$ 139,615
Asset (Liability) Fair Value	6,530	185
Interest rate lock commitments
Derivative Financial Instruments
Notional Amount	543,983	70,323
Asset (Liability) Fair Value	7,573	347
Interest rate lock commitments \| Other Assets
Derivative Financial Instruments
Notional Amount	497,093	47,660
Asset (Liability) Fair Value	7,798	504
Interest rate lock commitments \| Other Liabilities
Derivative Financial Instruments
Notional Amount	46,890	22,663
Asset (Liability) Fair Value	(225)	(157)
Forward Commitments
Derivative Financial Instruments
Notional Amount	291,000	62,750
Asset (Liability) Fair Value	(914)	(113)
Forward Commitments \| Other Assets
Derivative Financial Instruments
Notional Amount	75,500	4,500
Asset (Liability) Fair Value	57	6
Forward Commitments \| Other Liabilities
Derivative Financial Instruments
Notional Amount	215,500	58,250
Asset (Liability) Fair Value	(971)	(119)
Customer derivatives - interest rate swaps
Derivative Financial Instruments
Notional Amount	35,812	6,542
Asset (Liability) Fair Value	(129)	(49)
Customer derivatives - interest rate swaps \| Other Assets
Derivative Financial Instruments
Notional Amount	17,906	3,271
Asset (Liability) Fair Value	1,284	382
Customer derivatives - interest rate swaps \| Other Liabilities
Derivative Financial Instruments
Notional Amount	17,906	3,271
Asset (Liability) Fair Value	$ (1,413)	$ (431)

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair value gains and losses on derivative financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instruments	$ 3,028		$ 6,346	$ (15)
Realized losses on derivatives	(2,637)	$ (300)	(7,363)	(792)
Interest rate lock commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instruments	3,161	(102)	7,226	(68)
Forward Commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value gains (losses) on derivative financial instruments	(129)	124	(801)	101
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 instruments	$ (4)	$ (22)	$ (79)	$ (48)

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segments (Details) $ in Thousands	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Office	Sep. 30, 2019USD ($)Office	Dec. 31, 2019USD ($)
Net-interest Income:
Net interest income	$ 12,715	$ 9,274	$ 33,978	$ 26,672
Provision for loan losses	3,956	705	7,139	938
Net interest income after provision for loan losses	8,759	8,569	26,839	25,734
Non-Interest Income:
Mortgage banking income	21,812	7,315	45,395	17,617
Wealth management income	951	922	2,825	2,698
SBA income	641	635	1,821	1,150
Net change in fair values	6,053	30	10,944	292
Net loss on hedging activity	(2,637)	(300)	(7,363)	(792)
Other	2,240	607	3,350	1,691
Total non-interest income	29,060	9,209	56,972	22,656
Non-interest expenses:
Total non-interest expenses	25,834	13,547	61,152	38,980
Income before income taxes	11,985	4,231	22,659	9,410
Total Assets	1,758,648	1,126,937	1,758,648	1,126,937	$ 1,150,019
Bank
Net-interest Income:
Net interest income	12,104	9,203	32,725	26,437
Provision for loan losses	3,956	705	7,139	938
Net interest income after provision for loan losses	8,148	8,498	25,586	25,499
Non-Interest Income:
Mortgage banking income	574	74	973	175
Wealth management income		31		110
SBA income	641	635	1,821	1,150
Net change in fair values	(4)	(23)	(68)	(49)
Other	2,045	534	2,931	1,409
Total non-interest income	3,256	1,251	5,657	2,795
Non-interest expenses:
Total non-interest expenses	8,829	6,915	23,341	20,312
Income before income taxes	2,575	2,834	7,902	7,982
Total Assets	1,525,883	1,071,450	1,525,883	1,071,450
Wealth
Net-interest Income:
Net interest income	(19)	4	(24)	68
Net interest income after provision for loan losses	(19)	4	(24)	68
Non-Interest Income:
Wealth management income	951	891	2,825	2,588
Other			14
Total non-interest income	951	891	2,839	2,588
Non-interest expenses:
Total non-interest expenses	788	834	2,363	2,268
Income before income taxes	144	61	452	388
Total Assets	5,399	5,398	$ 5,399	$ 5,398
Mortgage
Segments
Number of central loan production \| Office			16	16
Net-interest Income:
Net interest income	630	67	$ 1,277	$ 167
Net interest income after provision for loan losses	630	67	1,277	167
Non-Interest Income:
Mortgage banking income	21,238	7,241	44,422	17,442
Net change in fair values	6,057	53	11,012	341
Net loss on hedging activity	(2,637)	(300)	(7,363)	(792)
Other	195	73	405	282
Total non-interest income	24,853	7,067	48,476	17,273
Non-interest expenses:
Total non-interest expenses	16,217	5,798	35,448	16,400
Income before income taxes	9,266	1,336	14,305	1,040
Total Assets	$ 227,366	$ 50,089	$ 227,366	$ 50,089

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 22, 2020	Sep. 30, 2020	Sep. 30, 2020	Aug. 31, 2020	Aug. 10, 2020
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares purchased for ESOP plan (in shares)			(133,601)
Shares purchased for ESOP plan			$ 2,000
Cash dividend declared per common share	$ 0.125
Cash dividends paid			$ 0.125
Total dividends			$ 763
Common Stock, Shares, Outstanding					6,098,573
Meridian Corporation ESOP Trust
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
ESOP stock purchase authorized amount				$ 2,000
Amount loaned to ESOP				$ 2,000
Shares purchased for ESOP plan (in shares)		133,601
Shares purchased for ESOP average purchase price		$ 14.97
Shares purchased for ESOP plan		$ 2,000
Loans receivable interest rate		1.17%
Shares commited to be released		0	0