Meridian CorpMRBK
Meridian Corp Segments Disclosure
Segments
The Corporation’s reportable segments are determined by the Chief Executive Officer, who is designated as the chief operating decision maker, based upon information provided about the Corporation’s products and services offered, primarily distinguished between banking, wealth management, and mortgage banking operations. They are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The chief operating decision maker evaluates the financial performance of the Corporation’s business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Corporation’s segments and in the determination of allocating resources. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance of each segment. All operations are domestic.
Our Banking segment (“Bank”) consists of commercial and consumer banking. Segment income before income taxes is used to assess the performance of the banking segment by monitoring the margin between interest income and interest expense. The Banking segment generates interest income from its lending and investing activities and is dependent on the gathering of 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 SBA loans, sales 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. Interest expense, provisions for credit losses, and payroll provide the significant expenses in the banking operation.
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. Segment income before income taxes is used to assess the performance of the wealth segment by monitoring the generation of wealth management income as the wealth segment generates non-interest income through advisory fees. The cost of marketing, business development, and payroll provide the significant expenses in wealth.
Meridian’s mortgage banking segment (“Mortgage”) consists of 7 loan production offices throughout suburban Philadelphia and Maryland. Segment income before income taxes is used to assess the performance of the mortgage banking segment by monitoring the gains received on loan sales. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and related net hedging gains (losses). The cost of loans sales and payroll provide the significant expenses in mortgage banking.
The table below summarizes income and expenses, directly attributable to each business line, which has been included in the statement of operations. Total assets for each segment is also provided.
| Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 164,474 | $ | — | $ | 1,840 | $ | 166,314 | $ | 153,809 | $ | — | $ | 2,218 | $ | 156,027 | |||||||||||||||||||||||||||||||
| Interest expense | 77,295 | (176) | 1,517 | 78,636 | 83,103 | (146) | 2,074 | 85,031 | |||||||||||||||||||||||||||||||||||||||
| Net interest income | 87,179 | 176 | 323 | 87,678 | 70,706 | 146 | 144 | 70,996 | |||||||||||||||||||||||||||||||||||||||
| Provision for loan losses | 15,152 | — | — | 15,152 | 11,400 | — | — | 11,400 | |||||||||||||||||||||||||||||||||||||||
| Net interest income after provision | 72,027 | 176 | 323 | 72,526 | 59,306 | 146 | 144 | 59,596 | |||||||||||||||||||||||||||||||||||||||
| Non-interest Income: | |||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage banking income | 185 | — | 20,598 | 20,783 | 188 | — | 20,856 | 21,044 | |||||||||||||||||||||||||||||||||||||||
| Wealth management income | — | 6,316 | — | 6,316 | 1 | 5,734 | — | 5,735 | |||||||||||||||||||||||||||||||||||||||
| SBA income | 5,452 | — | — | 5,452 | 3,458 | — | — | 3,458 | |||||||||||||||||||||||||||||||||||||||
| Gain on sale of MSRs | 20 | — | 383 | 403 | — | — | 3,992 | 3,992 | |||||||||||||||||||||||||||||||||||||||
| Net loss on sale of loans | (434) | — | — | (434) | 15 | — | — | 15 | |||||||||||||||||||||||||||||||||||||||
| Net change in fair values | 228 | — | 1,114 | 1,342 | (23) | — | 242 | 219 | |||||||||||||||||||||||||||||||||||||||
| Net gain on hedging activity | (1) | — | (150) | (151) | 1 | — | (88) | (87) | |||||||||||||||||||||||||||||||||||||||
| Other | 4,798 | — | 671 | 5,469 | 3,936 | 1 | 3,026 | 6,963 | |||||||||||||||||||||||||||||||||||||||
| Non-interest income | 10,248 | 6,316 | 22,616 | 39,180 | 7,576 | 5,735 | 28,028 | 41,339 | |||||||||||||||||||||||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 31,385 | 2,928 | 16,967 | 51,280 | 27,891 | 2,252 | 17,125 | 47,268 | |||||||||||||||||||||||||||||||||||||||
| Occupancy and equipment | 3,154 | 29 | 1,393 | 4,576 | 3,307 | 237 | 2,432 | 5,976 | |||||||||||||||||||||||||||||||||||||||
| Professional fees | 3,556 | 174 | 365 | 4,095 | 3,598 | 40 | 1,129 | 4,767 | |||||||||||||||||||||||||||||||||||||||
| Data processing and software | 5,342 | 175 | 1,514 | 7,031 | 4,577 | 169 | 1,398 | 6,144 | |||||||||||||||||||||||||||||||||||||||
| Advertising and promotion | 3,000 | 409 | 468 | 3,877 | 2,465 | 362 | 466 | 3,293 | |||||||||||||||||||||||||||||||||||||||
| Pennsylvania bank shares tax | 999 | 17 | — | 1,016 | 953 | 19 | — | 972 | |||||||||||||||||||||||||||||||||||||||
| Other | 9,851 | 423 | 1,155 | 11,429 | 8,793 | 427 | 1,509 | 10,729 | |||||||||||||||||||||||||||||||||||||||
| Non-interest expense | 57,287 | 4,155 | 21,862 | 83,304 | 51,584 | 3,506 | 24,059 | 79,149 | |||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | 24,988 | $ | 2,337 | $ | 1,077 | $ | 28,402 | $ | 15,298 | $ | 2,375 | $ | 4,113 | $ | 21,786 | |||||||||||||||||||||||||||||||
| Total Assets | $ | 2,484,836 | $ | 13,059 | $ | 64,100 | $ | 2,561,995 | $ | 2,337,092 | $ | 10,893 | $ | 37,882 | $ | 2,385,867 | |||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Apr 1, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.