Segments

6 Months Ended

Jun. 30, 2025

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

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

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

Meridian’s mortgage banking segment (“Mortgage”) consists of 8 loan production offices throughout suburban Philadelphia and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and net hedging gains (losses), if any.

The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided.


	Segment Information
	Three Months Ended June 30, 2025								Three Months Ended June 30, 2024
(dollars in thousands)	Bank		Wealth		Mortgage		Total		Bank		Wealth		Mortgage		Total
Interest income	$	40,723	$	—	$	488	$	41,211	$	37,891	$	—	$	574	$	38,465
Interest expense	19,698		(63)		417		20,052		21,107		(36)		548		21,619
Net interest income	21,025		63		71		21,159		16,784		36		26		16,846
Provision for credit losses	3,803		—		—		3,803		2,680		—		—		2,680
Net interest income after provision	17,222		63		71		17,356		14,104		36		26		14,166

Non-interest Income:
Mortgage banking income	32		—		5,730		5,762		67		—		5,353		5,420
Wealth management income	—		1,492		—		1,492		—		1,444		—		1,444
SBA loan income	1,988		—		—		1,988		785		—		—		785
Gain on sale of MSRs	84		—		383		467		—		—		—		—
Net change in fair values	(15)		—		274		259		6		—		144		150
Net gain (loss) on hedging activity	—		—		16		16		—		—		(63)		(63)
Other	940		—		364		1,304		815		—		693		1,508
Non-interest income	3,029		1,492		6,767		11,288		1,673		1,444		6,127		9,244

Non-interest expense:
Salaries and employee benefits	8,343		653		4,183		13,179		6,724		537		4,176		11,437
Occupancy and equipment	727		3		307		1,037		740		30		460		1,230
Professional fees	1,019		51		94		1,164		896		9		124		1,029
Data processing and software	1,292		43		371		1,706		1,079		46		381		1,506
Advertising and promotion	1,053		99		125		1,277		790		83		116		989
Pennsylvania bank shares tax	264		5		—		269		269		5		—		274
Other	2,351		97		277		2,725		2,108		94		351		2,553
Non-interest expense	15,049		951		5,357		21,357		12,606		804		5,608		19,018
Income before income taxes	$	5,202	$	604	$	1,481	$	7,287	$	3,171	$	676	$	545	$	4,392

Total Assets	$	2,440,256	$	11,885	$	58,797	$	2,510,938	$	2,248,950	$	10,347	$	92,287	$	2,351,584


	Segment Information
	Six Months Ended June 30, 2025								Six Months Ended June 30, 2024
(Dollars in thousands)	Bank		Wealth		Mortgage		Total		Bank		Wealth		Mortgage		Total
Interest income	$	79,558	$	—	$	821	$	80,379	$	74,794	$	—	$	886	$	75,680
Interest expense	38,828		(73)		689		39,444		41,418		(30)		837		42,225
Net interest income	40,730		73		132		40,935		33,376		30		49		33,455
Provision for credit losses	9,015		—		—		9,015		5,546		—		—		5,546
Net interest income after provision	31,715		73		132		31,920		27,830		30		49		27,909

Non-interest Income:
Mortgage banking income	50		—		9,105		9,155		155		—		8,899		9,054
Wealth management income	—		3,027		—		3,027		1		2,760		—		2,761
SBA loan income	2,736		—		—		2,736		1,771		—		—		1,771
Gain on sale of MSRs	32		—		383		415		—		—		—		—
Net change in fair values	62		—		618		680		34		—		14		48
Net loss on hedging activity	—		—		37		37		—		—		(82)		(82)
Other	2,062		—		500		2,562		1,589		—		2,087		3,676
Non-interest income	4,942		3,027		10,643		18,612		3,550		2,760		10,918		17,228

Non-interest expense:
Salaries and employee benefits	15,393		1,213		7,958		24,564		13,333		1,109		7,568		22,010
Occupancy and equipment	1,521		10		844		2,375		1,473		63		927		2,463
Professional fees	1,696		62		169		1,927		1,656		17		854		2,527
Data processing and software	2,357		86		742		3,185		2,311		80		647		3,038
Advertising and promotion	1,645		192		219		2,056		1,360		165		212		1,737
Pennsylvania bank shares tax	529		9		—		538		538		10		—		548
Other	4,668		196		591		5,455		3,998		192		679		4,869
Non-interest expense	27,809		1,768		10,523		40,100		24,669		1,636		10,887		37,192
Income before income taxes	$	8,848	$	1,332	$	252	$	10,432	$	6,711	$	1,154	$	80	$	7,945

Total Assets	$	2,440,256	$	11,885	$	58,797	$	2,510,938	$	2,248,950	$	10,347	$	92,287	$	2,351,584

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Meridian Corp 10-Q