Meridian (MRBK) 10-Q14 May 212021 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 13, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
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	Non-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		6,171,550
Entity Central Index Key	0001750735
Amendment Flag	false
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Cash and due from banks	$ 23,072	$ 34,190
Federal funds sold	7,932	2,554
Cash and cash equivalents	31,004	36,744
Securities available-for-sale (amortized cost of $133,343 and $120,215 as of March 31, 2021 and December 31, 2020)	134,165	123,562
Securities held-to-maturity (fair value of $6,772 and $6,857 as of March 31, 2021 and December 31, 2020)	6,476	6,510
Equity investments	1,013	1,031
Mortgage loans held for sale (amortized cost of $169,925 and $225,007 as of March 31, 2021 and December 31, 2020), at fair value	170,248	229,199
Loans, net of fees and costs (includes $13,590 and $12,182 of loans at fair value, amortized cost of $13,007 and $11,514 as of March 31, 2021 and December 31, 2020)	1,354,551	1,284,764
Allowance for loan and lease losses	(18,376)	(17,767)
Loans, net of the allowance for loan and lease losses	1,336,175	1,266,997
Restricted investment in bank stock	5,114	7,861
Bank premises and equipment, net	8,080	7,777
Bank owned life insurance	12,204	12,138
Accrued interest receivable	5,567	5,482
Deferred income taxes	2,531	62
Servicing assets	8,278	5,617
Goodwill	899	899
Intangible assets	3,533	3,601
Other assets	18,690	12,717
Total assets	1,743,977	1,720,197
Deposits:
Non-interest bearing	257,730	203,843
Interest bearing	1,125,860	1,037,492
Total deposits	1,383,590	1,241,335
Short-term borrowings	26,376	106,862
Long-term debt	122,884	165,546
Subordinated debentures	40,701	40,671
Accrued interest payable	743	1,154
Other liabilities	26,178	23,007
Total liabilities	1,600,472	1,578,575
Stockholders' equity:
Common stock, $1 par value. Authorized 10,000,000 shares; issued 6,487,695 and 6,455,566 as of March 31, 2021 and December 31, 2020	6,488	6,456
Surplus	81,727	81,196
Treasury stock - 320,000 shares at March 31, 2021 and December 31, 2020	(5,828)	(5,828)
Unearned common stock held by employee stock ownership plan	(1,768)	(1,768)
Retained earnings	62,249	59,010
Accumulated other comprehensive income	637	2,556
Total stockholders' equity	143,505	141,622
Total liabilities and stockholders' equity	$ 1,743,977	$ 1,720,197

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Available-for-sale, Amortized Cost	$ 133,341	$ 120,215
Securities held-to-maturity	6,772	6,857
Mortgage loans held for sale, amortized cost	169,925	225,007
Loans at fair value	13,590	12,182
Loans at amortized cost	$ 13,007	$ 11,514
Common stock, par value	$ 1	$ 1
Common stock, Authorized shares	10,000,000	10,000,000
Common Stock, Shares, Issued	6,487,695	6,455,566
Treasury stock shares held	320,000	320,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Interest income:
Loans, including fees	$ 16,822	$ 13,270
Securities:
Taxable	273	364
Tax-exempt	353	102
Cash and cash equivalents	3	58
Total interest income	17,451	13,794
Interest expense:
Deposits	1,566	3,254
Borrowings	765	874
Total interest expense	2,331	4,128
Net interest income	15,120	9,666
Provision for loan losses	599	1,552
Net interest income after provision for loan losses	14,521	8,114
Non-interest income:
Mortgage banking income	24,100	6,793
SBA loan income	1,245	542
Earnings on investment in life insurance	66	70
Net change in the fair value of derivative instruments	(944)	954
Net change in the fair value of loans held-for-sale	(3,867)	860
Net change in the fair value of loans held-for-investment	(102)	(62)
Net gain (loss) on hedging activity	4,261	(1,425)
Net gain on sale of investment securities available-for-sale	48
Other	1,073	438
Total non-interest income	27,048	9,219
Non-interest expenses:
Salaries and employee benefits	22,139	9,884
Occupancy and equipment	1,152	924
Professional fees	940	667
Advertising and promotion	785	609
Data processing	616	344
Information technology	425	318
Pennsylvania bank shares tax	163	226
Other	2,043	1,090
Total non-interest expenses	28,263	14,062
Income before income taxes	13,306	3,271
Income tax expense	3,136	755
Net income	$ 10,170	$ 2,516
Basic earnings per common share	$ 1.70	$ 0.39
Diluted earnings per common share	$ 1.65	$ 0.39
Wealth Management Income
Non-interest income:
Revenue from contracts with customers	$ 1,136	$ 1,021
Service Charges
Non-interest income:
Revenue from contracts with customers	$ 32	$ 28

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income:	$ 10,170	$ 2,516
Net change in unrealized gains on investment securities available for sale:
Net unrealized (losses) gains arising during the period, net of tax expense of $(584), and $102, respectively	(1,883)	429
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $12, and $0, respectively	(36)
Unrealized investment (losses) gains, net of tax expense of $(572), and $102, respectively	(1,919)	429
Total other comprehensive (loss) income	(1,919)	429
Total comprehensive income	$ 8,251	$ 2,945

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Tax expense (benefit) on unrealized gains arising during the period	$ (592)	$ 102
Tax expense (benefit) on reclassification adjustment for net gains on sales realized in net income	12	0
Tax expense (benefit) on unrealized investment gains (losses)	$ (604)	$ 102

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 at Dec. 31, 2019	$ 6,408	$ 80,196	$ (3)		$ 34,097	$ (3)	$ 120,695
Comprehensive income:
Net income					2,516		2,516
Net change in unrealized gains (losses) 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	90					96
Net purchase of treasury stock through publicly announced plans			(5,703)				(5,703)
Balance ending of the period at Mar. 31, 2020	6,414	80,286	(5,706)		36,613	426	118,033
Balance beginning of the period at Dec. 31, 2020	6,456	81,196	(5,828)	$ (1,768)	59,010	2,556	141,622
Comprehensive income:
Net income					10,170		10,170
Net change in unrealized gains (losses) on securities available-for-sale, net of tax						(1,919)	(1,919)
Total comprehensive income							8,251
Dividends declared, $1.125 per share					(6,931)		(6,931)
Common stock issued through share-based awards and exercises	32	302					334
Stock based compensation		229					229
Balance ending of the period at Mar. 31, 2021	$ 6,488	$ 81,727	$ (5,828)	$ (1,768)	$ 62,249	$ 637	$ 143,505

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2021$ / shares
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Dividends declared	$ 1.125

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income	$ 10,170	$ 2,516
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Gain on sale of investment securities	(48)
Depreciation and amortization	(1,709)	160
Net amortization of investment premiums and discounts and change in fair value of equity securities	331	58
Provision for loan losses	599	1,552
Amortization of issuance costs on subordinated debt	30	24
Share-based compensation	229
Net change in fair value of derivative instruments	944	(954)
Net change in fair value of loans held for sale	3,867	(860)
Net change in fair value of loans held for investment	102	62
Gain on sale of OREO		(6)
Amortization and net impairment (recovery) of servicing rights	(45)	234
Capitalization of servicing rights, net	(2,616)	(343)
SBA loan income	(1,245)	(542)
Proceeds from sale of loans	803,858	188,452
Loans originated for sale	(724,675)	(254,862)
Mortgage banking income	(24,100)	(6,793)
Increase in accrued interest receivable	(85)	(135)
(Increase) decrease in other assets	(5,246)	8,587
Earnings from investment in life insurance	(66)	(70)
(Decrease) income in Deferred income tax	(1,865)	412
(Decrease) increase in accrued interest payable	(411)	490
Increase (decrease) in other liabilities	4,745	(660)
Net cash provided by (used in) operating activities	62,764	(62,678)
Activity in available-for-sale securities:
Maturities, repayments and calls	2,343	1,559
Sales	13,639	0
Purchases	(28,151)	(30,006)
Activity in held-to-maturity securities:
Maturities, repayments and calls		1,000
Proceeds from sale of OREO		126
Decrease (Increase) in restricted stock	2,747	(275)
Net increase in loans	(70,915)	(56,197)
Purchases of premises and equipment	(677)	(186)
Net cash used in investing activities	(81,014)	(83,979)
Cash flows from financing activities:
Net increase in deposits	142,255	142,585
(Decrease) in short-term borrowings	(5,465)	(18,169)
(Decrease) increase in short-term borrowings with original maturity > 90 days	(75,021)	24,200
Proceeds from long-term debt, net	(42,662)	1,900
Issuance costs on subordinated debt		(101)
Net purchase of treasury stock		(5,703)
Dividends paid	(6,931)
Share based awards and exercises	334	96
Net cash provided by financing activities	12,510	144,808
Net change in cash and cash equivalents	(5,740)	(1,849)
Cash and cash equivalents at beginning of period	36,744	39,371
Cash and cash equivalents at end of period	31,004	37,522
Supplemental disclosure of cash flow information:
Interest	2,742	3,638
Income taxes		145
Supplemental disclosure of cash flow information:
Transfers from loans held for sale to loans held for investment	2,390
Net loans sold, not settled	(4,432)	(206)
Investment security purchases, not settled	$ (1,188)	$ (2,757)

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2021
Basis of Presentation
Basis of Presentation	(1) 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, 2020) 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 months ended March 31, 2021 are not necessarily indicative of the results for the year ending December 31, 2020 or for any other period. Since COVID-19 was recognized as a pandemic by the World Health Organization (WHO) and a national emergency by the U.S. Government, it has caused a significant disruption in economic activity worldwide, including in market areas served by the Corporation. Estimates for the allowance for loan and lease losses at March 31, 2021 include probable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty involved in the measurement of these losses. If economic conditions deteriorate further, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Corporation.

Earnings per Common Share

Earnings per Common Share	3 Months Ended
Earnings per Common Share	Mar. 31, 2021
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 reduced by unearned ESOP Plan shares and treasury 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 and if restricted stock awards were vested. 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 March 31, (dollars in thousands, except per share data) 2021 2020 Numerator: Net income available to common stockholders $ 10,170 2,516 Denominator for basic earnings per share Weighted average shares outstanding 6,119 6,383 Average unearned ESOP shares (119) — Basic weighted averages shares outstanding 6,000 6,383 Effect of dilutive common shares 146 37 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,146 6,420 Basic earnings per share $ 1.70 0.39 Diluted earnings per share $ 1.65 0.39 Antidilutive shares excluded from computation of average dilutive earnings per share 22 202

Securities

Securities	3 Months Ended
Securities	Mar. 31, 2021
Securities
Securities	(3) Securities The amortized cost and fair value of securities as of March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 Gross Gross # of Securities Amortized unrealized unrealized Fair in unrealized (dollars in thousands) cost gains losses value loss position Securities available-for-sale: U.S. asset backed securities $ 26,828 458 (56) 27,230 7 U.S. government agency mortgage-backed securities 3,796 126 — 3,922 — U.S. government agency collateralized mortgage obligations 23,014 642 (137) 23,519 5 State and municipal securities 72,815 704 (871) 72,648 30 U.S. Treasuries 1,938 — (22) 1,916 1 Corporate bonds 4,950 17 (37) 4,930 4 Total securities available-for-sale $ 133,341 1,947 (1,123) 134,165 47 Securities held-to-maturity: State and municipal securities 6,476 296 — 6,772 — Total securities held-to-maturity $ 6,476 296 — 6,772 — December 31, 2020 Gross Gross # of Securities Amortized unrealized unrealized Fair in unrealized (dollars in thousands) cost gains losses value loss position Securities available-for-sale: U.S. asset backed securities $ 25,303 364 (75) 25,592 8 U.S. government agency mortgage-backed securities 3,854 192 — 4,046 — U.S. government agency collateralized mortgage obligations 23,010 916 (17) 23,909 1 State and municipal securities 63,848 2,025 (63) 65,810 3 Corporate bonds 4,200 7 (2) 4,205 2 Total securities available-for-sale $ 120,215 3,504 (157) 123,562 14 Securities held-to-maturity: State and municipal securities 6,510 347 — 6,857 — Total securities held-to-maturity $ 6,510 347 — 6,857 — Although the Corporation’s investment portfolio overall is in a net unrealized gain position at March 31, 2021, 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. As of March 31, 2021 and December 31, 2020, securities having a fair value of $63.6 million and $55.9 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at March 31, 2021 and December 31, 2020: March 31, 2021 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 $ 948 (24) 8,373 (32) 9,321 (56) U.S. government agency collateralized mortgage obligations 6,781 (137) — — 6,781 (137) State and municipal securities 47,927 (871) — — 47,927 (871) U.S. Treasuries 1,916 (22) 1,916 (22) Corporate bonds 2,913 (37) — — 2,913 (37) Total securities available-for-sale $ 60,485 (1,091) 8,373 (32) 68,858 (1,123) December 31, 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 $ 2,884 (4) 7,443 (71) 10,327 (75) U.S. government agency collateralized mortgage obligations 2,284 (17) — — 2,284 (17) State and municipal securities 4,163 (63) — — 4,163 (63) Corporate bonds 1,198 (2) — — 1,198 (2) Total securities available-for-sale $ 10,529 (86) 7,443 (71) 17,972 (157) The amortized cost and carrying value of securities at March 31, 2021 and December 31, 2020 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. March 31, 2021 December 31, 2020 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 — — 3,165 3,255 — — 3,181 3,288 Due after five years through ten years 14,077 13,963 3,311 3,517 12,035 12,095 3,329 3,569 Due after ten years 92,454 92,761 — — 81,316 83,512 — — Subtotal 106,531 106,724 6,476 6,772 93,351 95,607 6,510 6,857 Mortgage-related securities 26,810 27,441 — — 26,864 27,955 — — Total $ 133,341 134,165 6,476 6,772 $ 120,215 123,562 6,510 6,857 Proceeds from the sale of available for sale investment securities totaled $13.6 million for the period ended March 31, 2021, resulting in a gross gain on sale of $248 thousand and a gross loss on sale of $200 thousand for the year ended March 31, 2021. There were no sales of available for sale investment securities for the period ended March 31, 2020.

Loans Receivable

Loans Receivable	3 Months Ended
Loans Receivable	Mar. 31, 2021
Loans Receivable
Loans Receivable	(4) Loans Receivable Loans and leases outstanding at March 31, 2021 and December 31, 2020 are detailed by category as follows: March 31, December 31, (dollars in thousands) 2021 2020 Mortgage loans held for sale $ 170,248 229,199 Real estate loans: Commercial mortgage 517,421 485,103 Home equity lines and loans 55,578 64,987 Residential mortgage (1) 49,085 52,454 Construction 134,601 140,246 Total real estate loans 756,685 742,790 Commercial and industrial 261,421 261,750 Small business loans 62,373 49,542 Paycheck Protection Program loans ("PPP") 230,847 203,543 Main Street Lending Program Loans ("MSLP") 583 580 Consumer 469 511 Leases, net 46,670 31,040 Total portfolio loans and leases 1,359,048 1,289,756 Total loans and leases $ 1,529,296 1,518,955 Loans with predetermined rates $ 622,498 658,458 Loans with adjustable or floating rates 906,798 860,497 Total loans and leases $ 1,529,296 1,518,955 Net deferred loan origination (fees) costs $ (4,497) (4,992) (1) Includes $13,590 and $12,182 of loans at fair value as of March 31, 2021 and December 31, 2020, respectively. Components of the net investment in leases at March 31, 2021 and December 31, 2020 are detailed as follows: March 31, December 31, (dollars in thousands) 2021 2020 Minimum lease payments receivable $ 56,818 37,919 Unearned lease income (10,148) (6,879) Total $ 46,670 31,040 Age Analysis of Past Due Loans and Leases The following tables present an aging of the Corporation’s loan and lease portfolio as of March 31, 2021 and December 31, 2020, respectively: Total 90+ days Accruing Nonaccrual Total loans March 31, 2021 30-89 days past due and Total past Loans and loans and portfolio Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 517,421 517,421 — 517,421 — % Home equity lines and loans — — — 54,659 54,659 919 55,578 1.65 Residential mortgage (1) 640 — 640 45,730 46,370 2,715 49,085 6.84 Construction — — — 134,601 134,601 — 134,601 — Commercial and industrial — — — 257,510 257,510 3,911 261,421 1.50 Small business loans — — — 61,456 61,456 917 62,373 1.47 Paycheck Protection Program loans — — — 230,847 230,847 — 230,847 — Main Street Lending Program loans — — — 583 583 — 583 — Consumer — — — 469 469 — 469 — Leases 160 — 160 46,379 46,539 131 46,670 0.62 Total $ 800 — 800 1,349,655 1,350,455 8,593 1,359,048 0.69 % (1) Includes $13,590 of loans at fair value as of March 31, 2021 ($12,048 of current, $640 of 30-89 days past due, and $902 of nonaccrual). Total 90+ days Accruing Nonaccrual Total loans December 31, 2020 30-89 days past due and Total past Loans and loans and portfolio Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 482,042 482,042 3,061 485,103 0.63 % Home equity lines and loans — — — 64,128 64,128 859 64,987 1.32 Residential mortgage (1) 3,595 — 3,595 46,134 49,729 2,725 52,454 12.05 Construction — — — 140,246 140,246 — 140,246 — Commercial and industrial — — — 260,465 260,465 1,285 261,750 0.49 Small business loans — — — 49,542 49,542 — 49,542 — Paycheck Protection Program loans — — — 203,543 203,543 — 203,543 — Main Street Lending Program loans — — — 580 580 — 580 — Consumer — — — 511 511 — 511 — Leases 109 — 109 30,931 31,040 — 31,040 0.35 Total $ 3,704 — 3,704 1,278,122 1,281,826 7,930 1,289,756 0.90 % (1) Includes $12,182 of loans at fair value as of December 31, 2020 ($10,314 of current, $958 of 30-89 days past due and $910 of nonaccrual).

Allowance for Loan Losses (the

Allowance for Loan Losses (the Allowance)	3 Months Ended
Allowance for Loan Losses (the Allowance)	Mar. 31, 2021
Allowance for Loan Losses (the Allowance)
Allowance for Loan Losses (the Allowance)	(5) 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 month periods ended March 31, 2021 and 2020, respectively: Balance, Balance, (dollars in thousands) December 31, 2020 Charge-offs Recoveries Provision March 31, 2021 Commercial mortgage $ 7,451 — — 204 7,655 Home equity lines and loans 434 — 2 (126) 310 Residential mortgage 385 — 2 (73) 314 Construction 2,421 — — (110) 2,311 Commercial and industrial 5,431 — 5 (150) 5,286 Small business loans 1,259 — — 661 1,920 Consumer 4 — 1 (1) 4 Leases 382 — — 194 576 Total $ 17,767 — 10 599 18,376 Balance, Balance, (dollars in thousands) December 31, 2019 Charge-offs Recoveries Provision March 31, 2020 Commercial mortgage $ 3,426 — — 686 4,112 Home equity lines and loans 342 — 1 141 484 Residential mortgage 179 — 2 38 219 Construction 2,362 — — 19 2,381 Commercial and industrial 2,684 — 29 456 3,169 Small business loans 509 — — 216 725 Consumer 6 — 1 (3) 4 Leases 5 — — (1) 4 Total $ 9,513 — 33 1,552 11,098 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 March 31, 2021 and December 31, 2020. Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively March 31, 2021 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 7,655 7,655 $ 730 516,691 517,421 Home equity lines and loans 8 302 310 919 54,659 55,578 Residential mortgage 72 242 314 1,814 33,681 35,495 Construction — 2,311 2,311 1,206 133,395 134,601 Commercial and industrial 1,562 3,724 5,286 4,339 257,082 261,421 Small business loans 376 1,544 1,920 1,087 61,286 62,373 Paycheck Protection Program loans — — — — 230,847 230,847 Main Street Lending Program — — — — 583 583 Consumer — 4 4 — 469 469 Leases — 576 576 131 46,539 46,670 Total $ 2,018 16,358 18,376 $ 10,226 1,335,232 1,345,458 (1) Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2020 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 7,451 7,451 $ 1,606 483,497 485,103 Home equity lines and loans 9 425 434 921 64,066 64,987 Residential mortgage 73 312 385 1,817 38,455 40,272 Construction — 2,421 2,421 1,206 139,040 140,246 Commercial and industrial 1,563 3,868 5,431 4,645 257,105 261,750 Small business loans — 1,259 1,259 185 49,357 49,542 Paycheck Protection Program loans — — — — 203,543 203,543 Main Street Lending Program — — — — 580 580 Consumer — 4 4 — 511 511 Leases — 382 382 — 31,040 31,040 Total $ 1,645 16,122 17,767 $ 10,380 1,267,194 1,277,574 (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 March 31, 2021 and December 31, 2020: March 31, 2021 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 482,177 32,076 3,168 — 517,421 Home equity lines and loans 54,174 — 1,404 — 55,578 Construction 125,974 8,627 — — 134,601 Commercial and industrial 232,768 16,828 8,215 3,610 261,421 Small business loans 58,753 — 3,620 — 62,373 Paycheck Protection Program loans 230,847 — — — 230,847 Main Street Lending Program loans 583 — — — 583 Total $ 1,185,276 57,531 16,407 3,610 1,262,824 December 31, 2020 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 449,545 32,059 3,499 — 485,103 Home equity lines and loans 63,923 — 1,064 — 64,987 Construction 132,286 7,960 — — 140,246 Commercial and industrial 227,349 21,721 9,000 3,680 261,750 Small business loans 46,789 — 2,753 — 49,542 Paycheck Protection Program loans 203,543 — — — 203,543 Main Street Lending Program loans 580 — — — 580 Total $ 1,124,015 61,740 16,316 3,680 1,205,751 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 March 31, 2021 and December 31, 2020. No troubled debt restructurings performing according to modified terms are included in performing residential mortgages below as of March 31, 2021 and December 31, 2020. March 31, 2021 December 31, 2020 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 33,681 1,814 35,495 $ 38,457 1,815 40,272 Consumer 469 — 469 511 — 511 Leases 46,539 131 46,670 31,040 — 31,040 Total $ 80,689 1,945 82,634 $ 70,008 1,815 71,823 There were five nonperforming residential mortgage loans at March 31, 2021 and five nonperforming residential mortgage loans at December 31, 2020 with a combined outstanding principal balance of $902 thousand and $910 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 March 31, 2021 As of December 31, 2020 Recorded Principal Related Recorded Principal Related (dollars in thousands) investment balance allowance investment balance allowance Impaired loans with related allowance: Commercial and industrial 3,790 3,866 1,562 3,860 3,902 1,563 Small business loans 917 917 376 — — — Home equity lines and loans 94 104 8 95 105 9 Residential mortgage 688 688 72 689 689 73 Total 5,489 5,575 2,018 4,644 4,696 1,645 Impaired loans without related allowance: Commercial mortgage $ 730 730 — 1,606 1,642 — Commercial and industrial 549 630 — 785 862 — Small business loans 170 170 — 185 185 — Home equity lines and loans 825 839 — 826 839 — Residential mortgage 1,126 1,126 — 1,128 1,128 — Construction 1,206 1,206 — 1,206 1,206 — Leases 131 131 — — — — Total 4,737 4,832 — 5,736 5,862 — Grand Total $ 10,226 10,407 2,018 10,380 10,558 1,645 The following table details the average recorded investment and interest income recognized on impaired loans by portfolio segment. Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Average Interest Average Interest recorded Income recorded Income (dollars in thousands) investment Recognized investment Recognized Impaired loans with related allowance: Commercial and industrial $ 3,826 5 451 5 Small business loans 918 — — — Home equity lines and loans 95 — 458 — Residential mortgage 688 — — — Total $ 5,527 5 909 5 Impaired loans without related allowance: Commercial mortgage $ 735 8 2,129 21 Commercial and industrial 579 — 587 4 Small business loans 176 4 934 6 Home equity lines and loans 825 — 305 - Residential mortgage 1,127 — 3,806 - Construction 1,206 15 1,239 17 Leases 122 — — — Total $ 4,770 27 9,000 48 Grand Total $ 10,297 32 9,909 53 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 March 31, 2021 and December 31, 2020 are as follows: March 31, December 31, (dollars in thousands) 2021 2020 TDRs included in nonperforming loans and leases $ 239 244 TDRs in compliance with modified terms 2,534 3,362 Total TDRs $ 2,773 3,606 There were no loan and lease modifications granted during the three months ended March 31, 2021 or March 31, 2020 that were categorized as a TDR. No loan and lease modifications granted during the three months ended March 31, 2021 and 2020 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 March 31, 2021. March 31, 2021 December 31, 2020 Portfolio Active % of Portfolio Active % of Loan Portfolio Balance Modifications Portfolio Balance Balance Modifications Portfolio Balance Commercial mortgage $ 517,421 $ 24,341 4.7% $ 485,103 $ 19,836 4.1% Commercial and industrial, including leases 308,091 70 0.0% 292,790 — — Construction & land development 134,601 4,343 3.2% 140,246 4,343 3.1% Home equity lines and loans 55,578 — — 64,987 — — Residential mortgage 35,495 — — 40,272 — — Small business loans 62,373 — — 49,542 2,726 — Consumer 469 — — 511 — — Total $ 1,114,028 $ 28,754 2.6% $ 1,073,451 $ 26,905 2.5% In accordance with Section 4013 of the CARES Act, loan deferrals granted to customers that resulted from the impact of COVID-19 and who were not past due at the time of deferral were not considered trouble debt restructurings under ASC 310-40 as of March 31, 2021. This provision was extended to January 1, 2022 under the Consolidated Appropriations Act, 2021. Management continues to monitor these deferrals and has adequately considered these credits in the March 31, 2021 allowance for loan losses balance. 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.

Short-Term Borrowings and Long

Short-Term Borrowings and Long -Term Debt	3 Months Ended
Short-Term Borrowings and Long -Term Debt	Mar. 31, 2021
Short-Term Borrowings and Long-Term Debt
Short-Term Borrowings and Long-Term Debt	(6) 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 March 31, 2021 and December 31, 2020. The Corporation also has a facility with the Federal Reserve Bank (“FRB”) of Philadelphia discount window of $10.1 million. This facility is fully secured by investment securities. There were no borrowings under this at March 31, 2021 and $10 million at December 31, 2020. Short-term borrowings at March 31, 2021 and December 31, 2020 consisted of the following notes: Balance as of Maturity Interest March 31, December 31, (dollars in thousands) date rate 2021 2020 Open Repo Plus Weekly 05/28/2021 0.41 % — 60,416 Federal Reserve Discount Window 03/31/2021 0.25 — 10,000 Mid-term Repo-fixed 01/13/2021 0.36 — 4,605 Mid-term Repo-fixed 06/10/2021 0.10 6,376 6,376 Mid-term Repo-fixed 09/10/2021 0.11 10,000 10,000 Mid-term Repo-fixed 12/10/2021 0.16 10,000 10,000 Mid-term Repo-fixed 01/27/2021 0.23 — 5,465 Total $ 26,376 106,862 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. Advances from this facility are secured 100% by the aggregate face value of pools comprised of loans with common maturity dates. PPPLF advances mature concurrently with the loans in a given pool. At March 31, 2021, the Corporation pledged $110.6 million of PPP loans to the FRB of Philadelphia to borrow $110.6 million of funds at a rate of 0.35%. Long-term debt at March 31, 2021 and December 31, 2020 consisted of the following notes: Balance as of Maturity Interest March 31, December 31, (dollars in thousands) date rate 2021 2020 PPPLF Advances 2022 0.35 % 45,189 153,269 PPPLF Advances 2026 0.35 $ 65,417 — Mid-term Repo-fixed 06/29/2022 0.32 7,392 7,392 Mid-term Repo-fixed 09/12/2022 0.23 4,886 4,885 Total ` $ 122,884 165,546 The FHLB of Pittsburgh has also issued $154 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 2021. The Corporation has a maximum borrowing capacity with the FHLB of $546.7 million as of March 31, 2021 and $638.9 million as of December 31, 2020. 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	3 Months Ended
Servicing Assets	Mar. 31, 2021
Servicing Assets
Servicing Assets	(7) 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 $690.9 million and $506.0 million of residential mortgage loans as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021, the Corporation recognized servicing fee income of $358 thousand, compared to $183 thousand during the three months ended March 31, 2020. Changes in the MSR balance are summarized as follows: Three Months Ended March 31, (dollars in thousands) 2021 2020 Balance at beginning of the period $ 4,647 446 Servicing rights capitalized 2,342 184 Amortization of servicing rights (199) (33) Change in valuation allowance 328 (174) Balance at end of the period $ 7,118 423 Activity in the valuation allowance for MSR’s was as follows: Three Months Ended March 31, (dollars in thousands) 2021 2020 Valuation allowance, beginning of period $ (435) (98) Impairment — (174) Recovery 328 — Valuation allowance, end of period $ (107) (272) 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 March 31, 2021, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 7.21% and a discount rate equal to 9.00%. At December 31, 2020, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 9.39% and a discount rate equal to 9.00%. The prepayment speed assumption has declined from December 31, 2020 to March 31, 2021 as interest rates have started to increase and the number of mortgage refinancings have started to decline, while the discount rate assumption is unchanged over this period as the underlying credit quality of the loans sold in each period is relatively unchanged. At March 31, 2021 and December 31, 2020, 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) March 31, 2021 December 31, 2020 Fair value of residential mortgage servicing rights $ 7,258 $ 4,647 Weighted average life (years) 6.0 5.0 Prepayment speed 7.21% 9.39% Impact on fair value: 10% adverse change $ (250) $ (183) 20% adverse change (485) (354) Discount rate 9.00% 9.00% Impact on fair value: 10% adverse change $ (284) $ (168) 20% adverse change (547) (329) 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 $55.9 million of SBA loans, as of March 31, 2021 and December 31, 2020, respectively. Changes in the SBA loan servicing asset balance are summarized as follows: Three Months Ended March 31, (dollars in thousands) 2021 2020 Balance at beginning of the period $ 970 337 Servicing rights capitalized 274 159 Amortization of servicing rights (67) (19) Change in valuation allowance (17) (8) Balance at end of the period $ 1,160 469 Activity in the valuation allowance for SBA loan servicing assets was as follows: Three Months Ended March 31, (dollars in thousands) 2021 2020 Valuation allowance, beginning of period $ (39) (26) Impairment (17) (8) Recovery — — Valuation allowance, end of period $ (56) (34) 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 March 31, 2021, 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 14.09%, and a discount rate equal to 6.90%. At December 31, 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 12.73%, and a discount rate equal to 8.33%. At March 31, 2021 and December 31, 2020, 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) March 31, 2021 December 31, 2020 Fair value of SBA loan servicing rights $ 1,234 $ 1,010 Weighted average life (years) 3.6 3.7 Prepayment speed 14.09% 12.73% Impact on fair value: 10% adverse change $ (49) $ (37) 20% adverse change (94) (71) Discount rate 6.90% 8.33% Impact on fair value: 10% adverse change $ (32) $ (25) 20% adverse change (62) (49) 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	3 Months Ended
Fair Value Measurements and Disclosures	Mar. 31, 2021
Fair Value Measurements and Disclosures
Fair Value Measurements and Disclosures	(8) 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 March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 27,230 — 27,230 — U.S. government agency mortgage-backed securities 3,922 — 3,922 — U.S. government agency collateralized mortgage obligations 23,519 — 23,519 — State and municipal securities 72,648 — 72,648 — U.S. Treasuries 1,916 1,916 Corporate bonds 4,930 — 4,930 — Equity investments 1,013 — 1,013 — Mortgage loans held for sale 170,248 — 170,248 — Mortgage loans held for investment 13,590 — 13,590 — Interest rate lock commitments 3,285 — — 3,285 Forward commitments 1,832 — 1,832 — Customer derivatives - interest rate swaps 151 — 151 — Total $ 324,284 — 320,999 3,285 Liabilities Interest rate lock commitments 890 — — 890 Forward commitments 8 — 8 — Customer derivatives - interest rate swaps 155 — 155 — $ 1,053 — 163 890 December 31, 2020 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 25,592 — 25,592 — U.S. government agency mortgage-backed securities 4,046 — 4,046 — U.S. government agency collateralized mortgage obligations 23,909 — 23,909 — State and municipal securities 65,810 — 65,810 — Corporate bonds 4,205 — 4,205 — Equity investments 1,031 — 1,031 — Mortgage loans held for sale 229,199 — 229,199 — Mortgage loans held for investment 12,182 — 12,182 — Interest rate lock commitments 6,932 — — 6,932 Forward commitments — — — — Customer derivatives - interest rate swaps 1,118 — 1,118 — Total $ 374,024 — 367,092 6,932 Liabilities Interest rate lock commitments 100 — — 100 Forward commitments 1,572 — 1,572 — Customer derivatives - interest rate swaps 1,219 — 1,219 — $ 2,891 — 2,791 100 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 March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 (dollars in thousands) Fair Value Fair Value Mortgage servicing rights $ 7,118 4,647 SBA loan servicing rights 1,160 970 Impaired loans (1) 3,550 2,998 Total $ 11,828 8,615 (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. 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 March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 31,004 31,004 36,744 36,744 Securities available-for-sale Level 2 134,165 134,165 123,562 123,562 Securities held-to-maturity Level 2 6,476 6,772 6,510 6,857 Equity investments Level 2 1,013 1,013 1,031 1,031 Mortgage loans held for sale Level 2 170,248 170,248 229,199 229,199 Loans receivable, net of the allowance for loan and lease losses Level 3 1,340,961 1,352,643 1,272,582 1,289,776 Mortgage loans held for investment Level 2 13,590 13,590 12,182 12,182 Interest rate lock commitments Level 3 3,285 3,285 6,932 6,932 Forward commitments Level 2 1,832 1,832 — — Restricted investment in bank stock NA 5,114 NA 7,861 NA Accrued interest receivable Level 3 5,567 5,567 5,482 5,482 Customer derivatives - interest rate swaps Level 2 151 151 1,118 1,118 Financial liabilities: Deposits Level 2 1,383,590 1,470,200 1,241,335 1,392,500 Short-term borrowings Level 2 26,376 26,376 106,862 106,862 Long-term debt Level 2 122,884 124,450 165,546 168,000 Subordinated debentures Level 2 40,701 41,479 40,671 38,375 Accrued interest payable Level 2 743 743 1,154 1,154 Interest rate lock commitments Level 3 890 890 100 100 Forward commitments Level 2 8 8 1,572 1,572 Customer derivatives - interest rate swaps Level 2 155 155 1,219 1,219 Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 445,536 3,285 421,399 6,932 Letters of credit Level 2 8,730 — 8,928 — 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 month peiods ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 Balance at beginning of the period $ 6,932 504 (Decrease) increase in value (3,647) 3,517 Balance at end of the period $ 3,285 4,021 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 March 31, 2021 $ 3,285 Market comparable pricing Pull through 1 - 99 % 89.79 % December 31, 2020 6,932 Market comparable pricing Pull through 1 - 99 83.08 Net realized losses of $4.4 million and net realized gains of $3.3 million 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 March 31, 2021 and 2020, 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	3 Months Ended
Derivative Financial Instruments	Mar. 31, 2021
Derivative Financial Instruments
Derivative Financial Instruments	(9) 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: March 31, 2021 December 31, 2020 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 258,001 3,285 406,422 6,932 Negative fair values Other liabilities 92,007 (890) 22,406 (100) Total 350,008 2,395 428,828 6,832 Forward Commitments Positive fair values Other assets 161,000 1,832 — — Negative fair values Other liabilities 32,500 (8) 218,000 (1,572) Total 193,500 1,824 218,000 (1,572) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 36,408 151 20,979 1,118 Negative fair values Other liabilities 36,408 (155) 20,979 (1,219) Total 72,816 (4) 41,958 (101) Total derivative financial instruments $ 616,324 4,215 688,786 5,159 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 March 31, (dollars in thousands) 2021 2020 Interest Rate Lock Commitments $ (4,437) 3,342 Forward Commitments 3,396 (2,311) Customer Derivatives - Interest Rate Swaps 97 (77) Net fair value (losses) gains on derivative financial instruments $ (944) 954 Net realized gains on derivatives were $4.3 million for the three months ended March 31, 2021 and net realized losses on derivatives were $1.4 million for the three months ended March 31, 2020.

Segments

Segments	3 Months Ended
Segments	Mar. 31, 2021
Segments
Segments	(10) 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 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 Mortgage (“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 March 31, 2021 Three Months Ended March 31, 2020 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 14,500 (14) 634 15,120 $ 9,518 (2) 150 9,666 Provision for loan losses 599 — — 599 1,552 — — 1,552 Net interest income after provision 13,901 (14) 634 14,521 7,966 (2) 150 8,114 Non-interest Income Mortgage banking income 268 — 23,832 24,100 102 — 6,691 6,793 Wealth management income — 1,136 — 1,136 — 1,021 — 1,021 SBA income 1,245 — — 1,245 542 — — 542 Net change in fair values 98 — (5,011) (4,913) (65) — 1,817 1,752 Net gain (loss) on hedging activity — — 4,261 4,261 — — (1,425) (1,425) Other 712 — 507 1,219 445 — 91 536 Non-interest income 2,323 1,136 23,589 27,048 1,024 1,021 7,174 9,219 Non-interest expense 8,932 895 18,436 28,263 6,937 788 6,337 14,062 Income before income taxes $ 7,292 227 5,787 13,306 $ 2,053 231 987 3,271 Total Assets $ 1,578,721 6,092 159,164 1,743,977 $ 1,192,882 5,337 105,223 1,303,442

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2021
Stockholders' Equity
Stockholders' Equity	(11) Stockholders’ Equity On January 28, 2021, the Corporation announced that its Board of Directors declared a cash dividend of $0.125 per share, payable on February 22, 2021 to shareholders of record as of February 8, 2021. On February 16, 2021, the Corporation announced that its Board of Directors declared a special dividend of $1.00 per share. The special dividend was paid on March 15, 2021 to shareholders of record as of March 1, 2021. During the first quarter of 2021, the Corporation paid a quarterly dividend of $0.125 per share and the special dividend of $1.00 per share noted above. On April 22, 2021, the Corporation’s Board of Directors declared a cash dividend of $0.125 per common share, payable on May 17, 2021 to shareholders of record as of May 10, 2021. On April 26, 2021, the Corporation announced that its Board of Directors has authorized a stock repurchase plan pursuant to which the Corporation may repurchase up to $6 million of the company’s outstanding common stock, par value $1.00 per share. Stock will be purchased from time to time in the open market or through privately negotiated transactions, or otherwise, at the discretion of management of the company in accordance with legal requirements. This program is subject to applicable regulatory protocol.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2021
Recent Accounting Pronouncements
Recent Accounting Pronouncements	(12) 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 our initial public 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 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. The Corporation is currently determining under which method we 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. In June 2020, the FASB approved a delay for the implementation of the ASU. Accordingly, the amendments in this update are effective for the Corporation for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Under ASU 2016-02, the Corporation will recognize a right-of-use asset and a lease obligation liability on the consolidated statement of financial condition, which will increase the Corporation’s assets and liabilities. The Corporation is evaluating other potential impacts of ASU 2016-02 on its consolidated financial statements. FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The guidance under ASC-848 will be available for a limited time, generally through December 31, 2022. The Corporation expects to adopt the LIBOR transition relief allowed under this standard. 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. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. FASB ASU 2020-06, “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)	3 Months Ended
Earnings per Common Share (Tables)	Mar. 31, 2021
Earnings per Common Share
Schedule of basic and diluted earnings per common share	Three Months Ended March 31, (dollars in thousands, except per share data) 2021 2020 Numerator: Net income available to common stockholders $ 10,170 2,516 Denominator for basic earnings per share Weighted average shares outstanding 6,119 6,383 Average unearned ESOP shares (119) — Basic weighted averages shares outstanding 6,000 6,383 Effect of dilutive common shares 146 37 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 6,146 6,420 Basic earnings per share $ 1.70 0.39 Diluted earnings per share $ 1.65 0.39 Antidilutive shares excluded from computation of average dilutive earnings per share 22 202

Securities (Tables)

Securities (Tables)	3 Months Ended
Securities (Tables)	Mar. 31, 2021
Securities
Schedule of amortized cost and fair value of securities	March 31, 2021 Gross Gross # of Securities Amortized unrealized unrealized Fair in unrealized (dollars in thousands) cost gains losses value loss position Securities available-for-sale: U.S. asset backed securities $ 26,828 458 (56) 27,230 7 U.S. government agency mortgage-backed securities 3,796 126 — 3,922 — U.S. government agency collateralized mortgage obligations 23,014 642 (137) 23,519 5 State and municipal securities 72,815 704 (871) 72,648 30 U.S. Treasuries 1,938 — (22) 1,916 1 Corporate bonds 4,950 17 (37) 4,930 4 Total securities available-for-sale $ 133,341 1,947 (1,123) 134,165 47 Securities held-to-maturity: State and municipal securities 6,476 296 — 6,772 — Total securities held-to-maturity $ 6,476 296 — 6,772 — December 31, 2020 Gross Gross # of Securities Amortized unrealized unrealized Fair in unrealized (dollars in thousands) cost gains losses value loss position Securities available-for-sale: U.S. asset backed securities $ 25,303 364 (75) 25,592 8 U.S. government agency mortgage-backed securities 3,854 192 — 4,046 — U.S. government agency collateralized mortgage obligations 23,010 916 (17) 23,909 1 State and municipal securities 63,848 2,025 (63) 65,810 3 Corporate bonds 4,200 7 (2) 4,205 2 Total securities available-for-sale $ 120,215 3,504 (157) 123,562 14 Securities held-to-maturity: State and municipal securities 6,510 347 — 6,857 — Total securities held-to-maturity $ 6,510 347 — 6,857 —
Schedule of investment gross unrealized loss in continuous unrealized loss position	March 31, 2021 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 $ 948 (24) 8,373 (32) 9,321 (56) U.S. government agency collateralized mortgage obligations 6,781 (137) — — 6,781 (137) State and municipal securities 47,927 (871) — — 47,927 (871) U.S. Treasuries 1,916 (22) 1,916 (22) Corporate bonds 2,913 (37) — — 2,913 (37) Total securities available-for-sale $ 60,485 (1,091) 8,373 (32) 68,858 (1,123) December 31, 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 $ 2,884 (4) 7,443 (71) 10,327 (75) U.S. government agency collateralized mortgage obligations 2,284 (17) — — 2,284 (17) State and municipal securities 4,163 (63) — — 4,163 (63) Corporate bonds 1,198 (2) — — 1,198 (2) Total securities available-for-sale $ 10,529 (86) 7,443 (71) 17,972 (157)
Schedule of amortized cost and carrying value of held-to-maturity securities and available-for-sale securities by contractual maturity	March 31, 2021 December 31, 2020 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 — — 3,165 3,255 — — 3,181 3,288 Due after five years through ten years 14,077 13,963 3,311 3,517 12,035 12,095 3,329 3,569 Due after ten years 92,454 92,761 — — 81,316 83,512 — — Subtotal 106,531 106,724 6,476 6,772 93,351 95,607 6,510 6,857 Mortgage-related securities 26,810 27,441 — — 26,864 27,955 — — Total $ 133,341 134,165 6,476 6,772 $ 120,215 123,562 6,510 6,857

Loans Receivable (Tables)

Loans Receivable (Tables)	3 Months Ended
Loans Receivable (Tables)	Mar. 31, 2021
Loans Receivable
Summary of loans and leases outstanding	March 31, December 31, (dollars in thousands) 2021 2020 Mortgage loans held for sale $ 170,248 229,199 Real estate loans: Commercial mortgage 517,421 485,103 Home equity lines and loans 55,578 64,987 Residential mortgage (1) 49,085 52,454 Construction 134,601 140,246 Total real estate loans 756,685 742,790 Commercial and industrial 261,421 261,750 Small business loans 62,373 49,542 Paycheck Protection Program loans ("PPP") 230,847 203,543 Main Street Lending Program Loans ("MSLP") 583 580 Consumer 469 511 Leases, net 46,670 31,040 Total portfolio loans and leases 1,359,048 1,289,756 Total loans and leases $ 1,529,296 1,518,955 Loans with predetermined rates $ 622,498 658,458 Loans with adjustable or floating rates 906,798 860,497 Total loans and leases $ 1,529,296 1,518,955 Net deferred loan origination (fees) costs $ (4,497) (4,992) (1) Includes $13,590 and $12,182 of loans at fair value as of March 31, 2021 and December 31, 2020, respectively.
Schedule of components of the net investment in leases	March 31, December 31, (dollars in thousands) 2021 2020 Minimum lease payments receivable $ 56,818 37,919 Unearned lease income (10,148) (6,879) Total $ 46,670 31,040
Schedule of age analysis of past due loans and leases	Total 90+ days Accruing Nonaccrual Total loans March 31, 2021 30-89 days past due and Total past Loans and loans and portfolio Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 517,421 517,421 — 517,421 — % Home equity lines and loans — — — 54,659 54,659 919 55,578 1.65 Residential mortgage (1) 640 — 640 45,730 46,370 2,715 49,085 6.84 Construction — — — 134,601 134,601 — 134,601 — Commercial and industrial — — — 257,510 257,510 3,911 261,421 1.50 Small business loans — — — 61,456 61,456 917 62,373 1.47 Paycheck Protection Program loans — — — 230,847 230,847 — 230,847 — Main Street Lending Program loans — — — 583 583 — 583 — Consumer — — — 469 469 — 469 — Leases 160 — 160 46,379 46,539 131 46,670 0.62 Total $ 800 — 800 1,349,655 1,350,455 8,593 1,359,048 0.69 % (1) Includes $13,590 of loans at fair value as of March 31, 2021 ($12,048 of current, $640 of 30-89 days past due, and $902 of nonaccrual). Total 90+ days Accruing Nonaccrual Total loans December 31, 2020 30-89 days past due and Total past Loans and loans and portfolio Delinquency (dollars in thousands) past due still accruing due Current leases leases and leases percentage Commercial mortgage $ — — — 482,042 482,042 3,061 485,103 0.63 % Home equity lines and loans — — — 64,128 64,128 859 64,987 1.32 Residential mortgage (1) 3,595 — 3,595 46,134 49,729 2,725 52,454 12.05 Construction — — — 140,246 140,246 — 140,246 — Commercial and industrial — — — 260,465 260,465 1,285 261,750 0.49 Small business loans — — — 49,542 49,542 — 49,542 — Paycheck Protection Program loans — — — 203,543 203,543 — 203,543 — Main Street Lending Program loans — — — 580 580 — 580 — Consumer — — — 511 511 — 511 — Leases 109 — 109 30,931 31,040 — 31,040 0.35 Total $ 3,704 — 3,704 1,278,122 1,281,826 7,930 1,289,756 0.90 % (1) Includes $12,182 of loans at fair value as of December 31, 2020 ($10,314 of current, $958 of 30-89 days past due and $910 of nonaccrual).

Allowance for Loan Losses (th_2

Allowance for Loan Losses (the Allowance) (Tables)	3 Months Ended
Allowance for Loan Losses (the Allowance) (Tables)	Mar. 31, 2021
Allowance for Loan Losses (the Allowance)
Roll-forward of allowance for loan and lease losses by portfolio segment	Balance, Balance, (dollars in thousands) December 31, 2020 Charge-offs Recoveries Provision March 31, 2021 Commercial mortgage $ 7,451 — — 204 7,655 Home equity lines and loans 434 — 2 (126) 310 Residential mortgage 385 — 2 (73) 314 Construction 2,421 — — (110) 2,311 Commercial and industrial 5,431 — 5 (150) 5,286 Small business loans 1,259 — — 661 1,920 Consumer 4 — 1 (1) 4 Leases 382 — — 194 576 Total $ 17,767 — 10 599 18,376 Balance, Balance, (dollars in thousands) December 31, 2019 Charge-offs Recoveries Provision March 31, 2020 Commercial mortgage $ 3,426 — — 686 4,112 Home equity lines and loans 342 — 1 141 484 Residential mortgage 179 — 2 38 219 Construction 2,362 — — 19 2,381 Commercial and industrial 2,684 — 29 456 3,169 Small business loans 509 — — 216 725 Consumer 6 — 1 (3) 4 Leases 5 — — (1) 4 Total $ 9,513 — 33 1,552 11,098
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 March 31, 2021 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 7,655 7,655 $ 730 516,691 517,421 Home equity lines and loans 8 302 310 919 54,659 55,578 Residential mortgage 72 242 314 1,814 33,681 35,495 Construction — 2,311 2,311 1,206 133,395 134,601 Commercial and industrial 1,562 3,724 5,286 4,339 257,082 261,421 Small business loans 376 1,544 1,920 1,087 61,286 62,373 Paycheck Protection Program loans — — — — 230,847 230,847 Main Street Lending Program — — — — 583 583 Consumer — 4 4 — 469 469 Leases — 576 576 131 46,539 46,670 Total $ 2,018 16,358 18,376 $ 10,226 1,335,232 1,345,458 (1) Allowance on loans and leases Carrying value of loans and leases Individually Collectively Individually Collectively December 31, 2020 evaluated evaluated evaluated evaluated (dollars in thousands) for impairment for impairment Total for impairment for impairment Total Commercial mortgage $ — 7,451 7,451 $ 1,606 483,497 485,103 Home equity lines and loans 9 425 434 921 64,066 64,987 Residential mortgage 73 312 385 1,817 38,455 40,272 Construction — 2,421 2,421 1,206 139,040 140,246 Commercial and industrial 1,563 3,868 5,431 4,645 257,105 261,750 Small business loans — 1,259 1,259 185 49,357 49,542 Paycheck Protection Program loans — — — — 203,543 203,543 Main Street Lending Program — — — — 580 580 Consumer — 4 4 — 511 511 Leases — 382 382 — 31,040 31,040 Total $ 1,645 16,122 17,767 $ 10,380 1,267,194 1,277,574 (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	March 31, 2021 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 482,177 32,076 3,168 — 517,421 Home equity lines and loans 54,174 — 1,404 — 55,578 Construction 125,974 8,627 — — 134,601 Commercial and industrial 232,768 16,828 8,215 3,610 261,421 Small business loans 58,753 — 3,620 — 62,373 Paycheck Protection Program loans 230,847 — — — 230,847 Main Street Lending Program loans 583 — — — 583 Total $ 1,185,276 57,531 16,407 3,610 1,262,824 December 31, 2020 Special (dollars in thousands) Pass mention Substandard Doubtful Total Commercial mortgage $ 449,545 32,059 3,499 — 485,103 Home equity lines and loans 63,923 — 1,064 — 64,987 Construction 132,286 7,960 — — 140,246 Commercial and industrial 227,349 21,721 9,000 3,680 261,750 Small business loans 46,789 — 2,753 — 49,542 Paycheck Protection Program loans 203,543 — — — 203,543 Main Street Lending Program loans 580 — — — 580 Total $ 1,124,015 61,740 16,316 3,680 1,205,751
Schedule of allocations based on the credit quality indicators	March 31, 2021 December 31, 2020 (dollars in thousands) Performing Nonperforming Total Performing Nonperforming Total Residential mortgage $ 33,681 1,814 35,495 $ 38,457 1,815 40,272 Consumer 469 — 469 511 — 511 Leases 46,539 131 46,670 31,040 — 31,040 Total $ 80,689 1,945 82,634 $ 70,008 1,815 71,823
Schedule of recorded investment and principal balance of impaired loans	As of March 31, 2021 As of December 31, 2020 Recorded Principal Related Recorded Principal Related (dollars in thousands) investment balance allowance investment balance allowance Impaired loans with related allowance: Commercial and industrial 3,790 3,866 1,562 3,860 3,902 1,563 Small business loans 917 917 376 — — — Home equity lines and loans 94 104 8 95 105 9 Residential mortgage 688 688 72 689 689 73 Total 5,489 5,575 2,018 4,644 4,696 1,645 Impaired loans without related allowance: Commercial mortgage $ 730 730 — 1,606 1,642 — Commercial and industrial 549 630 — 785 862 — Small business loans 170 170 — 185 185 — Home equity lines and loans 825 839 — 826 839 — Residential mortgage 1,126 1,126 — 1,128 1,128 — Construction 1,206 1,206 — 1,206 1,206 — Leases 131 131 — — — — Total 4,737 4,832 — 5,736 5,862 — Grand Total $ 10,226 10,407 2,018 10,380 10,558 1,645
Schedule of average recorded investment on impaired loans	Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Average Interest Average Interest recorded Income recorded Income (dollars in thousands) investment Recognized investment Recognized Impaired loans with related allowance: Commercial and industrial $ 3,826 5 451 5 Small business loans 918 — — — Home equity lines and loans 95 — 458 — Residential mortgage 688 — — — Total $ 5,527 5 909 5 Impaired loans without related allowance: Commercial mortgage $ 735 8 2,129 21 Commercial and industrial 579 — 587 4 Small business loans 176 4 934 6 Home equity lines and loans 825 — 305 - Residential mortgage 1,127 — 3,806 - Construction 1,206 15 1,239 17 Leases 122 — — — Total $ 4,770 27 9,000 48 Grand Total $ 10,297 32 9,909 53
Schedule of TDRs	March 31, December 31, (dollars in thousands) 2021 2020 TDRs included in nonperforming loans and leases $ 239 244 TDRs in compliance with modified terms 2,534 3,362 Total TDRs $ 2,773 3,606
Schedule of loan modifications provided to loan customers	March 31, 2021 December 31, 2020 Portfolio Active % of Portfolio Active % of Loan Portfolio Balance Modifications Portfolio Balance Balance Modifications Portfolio Balance Commercial mortgage $ 517,421 $ 24,341 4.7% $ 485,103 $ 19,836 4.1% Commercial and industrial, including leases 308,091 70 0.0% 292,790 — — Construction & land development 134,601 4,343 3.2% 140,246 4,343 3.1% Home equity lines and loans 55,578 — — 64,987 — — Residential mortgage 35,495 — — 40,272 — — Small business loans 62,373 — — 49,542 2,726 — Consumer 469 — — 511 — — Total $ 1,114,028 $ 28,754 2.6% $ 1,073,451 $ 26,905 2.5%

Short-Term Borrowings and Long-

Short-Term Borrowings and Long-Term Debt (Tables)	3 Months Ended
Short-Term Borrowings and Long-Term Debt (Tables)	Mar. 31, 2021
Short-Term Borrowings and Long-Term Debt
Schedule of short term borrowings	Balance as of Maturity Interest March 31, December 31, (dollars in thousands) date rate 2021 2020 Open Repo Plus Weekly 05/28/2021 0.41 % — 60,416 Federal Reserve Discount Window 03/31/2021 0.25 — 10,000 Mid-term Repo-fixed 01/13/2021 0.36 — 4,605 Mid-term Repo-fixed 06/10/2021 0.10 6,376 6,376 Mid-term Repo-fixed 09/10/2021 0.11 10,000 10,000 Mid-term Repo-fixed 12/10/2021 0.16 10,000 10,000 Mid-term Repo-fixed 01/27/2021 0.23 — 5,465 Total $ 26,376 106,862
Schedule of long term debt	Balance as of Maturity Interest March 31, December 31, (dollars in thousands) date rate 2021 2020 PPPLF Advances 2022 0.35 % 45,189 153,269 PPPLF Advances 2026 0.35 $ 65,417 — Mid-term Repo-fixed 06/29/2022 0.32 7,392 7,392 Mid-term Repo-fixed 09/12/2022 0.23 4,886 4,885 Total ` $ 122,884 165,546

Servicing Assets (Tables)

Servicing Assets (Tables)	3 Months Ended
Servicing Assets (Tables)	Mar. 31, 2021
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Three Months Ended March 31, (dollars in thousands) 2021 2020 Balance at beginning of the period $ 4,647 446 Servicing rights capitalized 2,342 184 Amortization of servicing rights (199) (33) Change in valuation allowance 328 (174) Balance at end of the period $ 7,118 423
Schedule of valuation allowance for servicing assets	Three Months Ended March 31, (dollars in thousands) 2021 2020 Valuation allowance, beginning of period $ (435) (98) Impairment — (174) Recovery 328 — Valuation allowance, end of period $ (107) (272)
Schedule of sensitivity of fair value of servicing assets	(dollars in thousands) March 31, 2021 December 31, 2020 Fair value of residential mortgage servicing rights $ 7,258 $ 4,647 Weighted average life (years) 6.0 5.0 Prepayment speed 7.21% 9.39% Impact on fair value: 10% adverse change $ (250) $ (183) 20% adverse change (485) (354) Discount rate 9.00% 9.00% Impact on fair value: 10% adverse change $ (284) $ (168) 20% adverse change (547) (329)
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Schedule of servicing assets	Three Months Ended March 31, (dollars in thousands) 2021 2020 Balance at beginning of the period $ 970 337 Servicing rights capitalized 274 159 Amortization of servicing rights (67) (19) Change in valuation allowance (17) (8) Balance at end of the period $ 1,160 469
Schedule of valuation allowance for servicing assets	Three Months Ended March 31, (dollars in thousands) 2021 2020 Valuation allowance, beginning of period $ (39) (26) Impairment (17) (8) Recovery — — Valuation allowance, end of period $ (56) (34)
Schedule of sensitivity of fair value of servicing assets	(dollars in thousands) March 31, 2021 December 31, 2020 Fair value of SBA loan servicing rights $ 1,234 $ 1,010 Weighted average life (years) 3.6 3.7 Prepayment speed 14.09% 12.73% Impact on fair value: 10% adverse change $ (49) $ (37) 20% adverse change (94) (71) Discount rate 6.90% 8.33% Impact on fair value: 10% adverse change $ (32) $ (25) 20% adverse change (62) (49)

Fair Value Measurements and D_2

Fair Value Measurements and Disclosures (Tables)	3 Months Ended
Fair Value Measurements and Disclosures (Tables)	Mar. 31, 2021
Fair Value Measurements and Disclosures
Schedule of financial assets measured at fair value on a recurring basis	March 31, 2021 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 27,230 — 27,230 — U.S. government agency mortgage-backed securities 3,922 — 3,922 — U.S. government agency collateralized mortgage obligations 23,519 — 23,519 — State and municipal securities 72,648 — 72,648 — U.S. Treasuries 1,916 1,916 Corporate bonds 4,930 — 4,930 — Equity investments 1,013 — 1,013 — Mortgage loans held for sale 170,248 — 170,248 — Mortgage loans held for investment 13,590 — 13,590 — Interest rate lock commitments 3,285 — — 3,285 Forward commitments 1,832 — 1,832 — Customer derivatives - interest rate swaps 151 — 151 — Total $ 324,284 — 320,999 3,285 Liabilities Interest rate lock commitments 890 — — 890 Forward commitments 8 — 8 — Customer derivatives - interest rate swaps 155 — 155 — $ 1,053 — 163 890 December 31, 2020 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 25,592 — 25,592 — U.S. government agency mortgage-backed securities 4,046 — 4,046 — U.S. government agency collateralized mortgage obligations 23,909 — 23,909 — State and municipal securities 65,810 — 65,810 — Corporate bonds 4,205 — 4,205 — Equity investments 1,031 — 1,031 — Mortgage loans held for sale 229,199 — 229,199 — Mortgage loans held for investment 12,182 — 12,182 — Interest rate lock commitments 6,932 — — 6,932 Forward commitments — — — — Customer derivatives - interest rate swaps 1,118 — 1,118 — Total $ 374,024 — 367,092 6,932 Liabilities Interest rate lock commitments 100 — — 100 Forward commitments 1,572 — 1,572 — Customer derivatives - interest rate swaps 1,219 — 1,219 — $ 2,891 — 2,791 100
Schedule of financial assets measured at fair value on non-recurring basis	March 31, 2021 December 31, 2020 (dollars in thousands) Fair Value Fair Value Mortgage servicing rights $ 7,118 4,647 SBA loan servicing rights 1,160 970 Impaired loans (1) 3,550 2,998 Total $ 11,828 8,615 (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.
Schedule of estimated fair values of financial instruments	March 31, 2021 December 31, 2020 Fair Value Carrying Carrying (dollars in thousands) Hierarchy Level amount Fair value amount Fair value Financial assets: Cash and cash equivalents Level 1 $ 31,004 31,004 36,744 36,744 Securities available-for-sale Level 2 134,165 134,165 123,562 123,562 Securities held-to-maturity Level 2 6,476 6,772 6,510 6,857 Equity investments Level 2 1,013 1,013 1,031 1,031 Mortgage loans held for sale Level 2 170,248 170,248 229,199 229,199 Loans receivable, net of the allowance for loan and lease losses Level 3 1,340,961 1,352,643 1,272,582 1,289,776 Mortgage loans held for investment Level 2 13,590 13,590 12,182 12,182 Interest rate lock commitments Level 3 3,285 3,285 6,932 6,932 Forward commitments Level 2 1,832 1,832 — — Restricted investment in bank stock NA 5,114 NA 7,861 NA Accrued interest receivable Level 3 5,567 5,567 5,482 5,482 Customer derivatives - interest rate swaps Level 2 151 151 1,118 1,118 Financial liabilities: Deposits Level 2 1,383,590 1,470,200 1,241,335 1,392,500 Short-term borrowings Level 2 26,376 26,376 106,862 106,862 Long-term debt Level 2 122,884 124,450 165,546 168,000 Subordinated debentures Level 2 40,701 41,479 40,671 38,375 Accrued interest payable Level 2 743 743 1,154 1,154 Interest rate lock commitments Level 3 890 890 100 100 Forward commitments Level 2 8 8 1,572 1,572 Customer derivatives - interest rate swaps Level 2 155 155 1,219 1,219 Notional Notional Off-balance sheet financial instruments: amount Fair value amount Fair value Commitments to extend credit Level 2 $ 445,536 3,285 421,399 6,932 Letters of credit Level 2 8,730 — 8,928 —
Schedule of level 3 inputs reconciliation	Three Months Ended March 31, 2021 2020 Balance at beginning of the period $ 6,932 504 (Decrease) increase in value (3,647) 3,517 Balance at end of the period $ 3,285 4,021
Schedule of measurement inputs	Significant Fair Value Unobservable Range of Weighted Level 3 Valuation Technique Input Inputs Average March 31, 2021 $ 3,285 Market comparable pricing Pull through 1 - 99 % 89.79 % December 31, 2020 6,932 Market comparable pricing Pull through 1 - 99 83.08

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
Derivative Financial Instruments (Tables)	Mar. 31, 2021
Derivative Financial Instruments
Summary of the notional amounts and fair values of derivative financial instruments	March 31, 2021 December 31, 2020 (dollars in thousands) Balance Sheet Line Item Notional Asset Notional Asset Interest Rate Lock Commitments Positive fair values Other assets $ 258,001 3,285 406,422 6,932 Negative fair values Other liabilities 92,007 (890) 22,406 (100) Total 350,008 2,395 428,828 6,832 Forward Commitments Positive fair values Other assets 161,000 1,832 — — Negative fair values Other liabilities 32,500 (8) 218,000 (1,572) Total 193,500 1,824 218,000 (1,572) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets 36,408 151 20,979 1,118 Negative fair values Other liabilities 36,408 (155) 20,979 (1,219) Total 72,816 (4) 41,958 (101) Total derivative financial instruments $ 616,324 4,215 688,786 5,159
Summary of the fair value gains and losses on derivative financial instruments	Three Months Ended March 31, (dollars in thousands) 2021 2020 Interest Rate Lock Commitments $ (4,437) 3,342 Forward Commitments 3,396 (2,311) Customer Derivatives - Interest Rate Swaps 97 (77) Net fair value (losses) gains on derivative financial instruments $ (944) 954

Segment (Tables)

Segment (Tables)	3 Months Ended
Segment (Tables)	Mar. 31, 2021
Segments
Schedule of business segment financial information	Segment Information Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 14,500 (14) 634 15,120 $ 9,518 (2) 150 9,666 Provision for loan losses 599 — — 599 1,552 — — 1,552 Net interest income after provision 13,901 (14) 634 14,521 7,966 (2) 150 8,114 Non-interest Income Mortgage banking income 268 — 23,832 24,100 102 — 6,691 6,793 Wealth management income — 1,136 — 1,136 — 1,021 — 1,021 SBA income 1,245 — — 1,245 542 — — 542 Net change in fair values 98 — (5,011) (4,913) (65) — 1,817 1,752 Net gain (loss) on hedging activity — — 4,261 4,261 — — (1,425) (1,425) Other 712 — 507 1,219 445 — 91 536 Non-interest income 2,323 1,136 23,589 27,048 1,024 1,021 7,174 9,219 Non-interest expense 8,932 895 18,436 28,263 6,937 788 6,337 14,062 Income before income taxes $ 7,292 227 5,787 13,306 $ 2,053 231 987 3,271 Total Assets $ 1,578,721 6,092 159,164 1,743,977 $ 1,192,882 5,337 105,223 1,303,442

Earnings per Common Share (Deta

Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income available to common stockholders	$ 10,170	$ 2,516
Denominator for basic earnings per share - weighted average shares outstanding	6,119	6,383
Average unearned ESOP shares	(119)
Basic weighted averages shares outstanding	6,000	6,383
Effect of dilutive common shares	146	37
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	6,146	6,420
Basic earnings per share (in dollars per share)	$ 1.70	$ 0.39
Diluted earnings per share (in dollars per share)	$ 1.65	$ 0.39
Antidilutive shares excluded from computation of average dilutive earnings per share	22	202

Securities - Amortized cost and

Securities - Amortized cost and fair value (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)security	Dec. 31, 2020USD ($)security
Securities available-for-sale:
Amortized Cost	$ 133,341	$ 120,215
Available-for-sale, Gross Unrealized Gains	1,947	3,504
Available-for-sale, Gross Unrealized Losses	(1,123)	(157)
Fair value	134,165	123,562
Securities held to maturity:
Held-to-maturity, Amortized Cost	6,476	6,510
Held-to-maturity, Gross Unrealized Gains	296	347
Fair Value	$ 6,772	$ 6,857
Number of securities in unrealized loss positions \| security	47	14
Number of securities deemed other-than-temporarily impaired \| security	0
Securities pledged as collateral fair value	$ 63,600	$ 55,900
U.S. asset backed securities
Securities available-for-sale:
Amortized Cost	26,828	25,303
Available-for-sale, Gross Unrealized Gains	458	364
Available-for-sale, Gross Unrealized Losses	(56)	(75)
Fair value	$ 27,230	$ 25,592
Securities held to maturity:
Number of securities in unrealized loss positions \| security	7	8
U.S. government agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	$ 3,796	$ 3,854
Available-for-sale, Gross Unrealized Gains	126	192
Fair value	3,922	4,046
U.S. government agency collateralized mortgage obligations
Securities available-for-sale:
Amortized Cost	23,014	23,010
Available-for-sale, Gross Unrealized Gains	642	916
Available-for-sale, Gross Unrealized Losses	(137)	(17)
Fair value	$ 23,519	$ 23,909
Securities held to maturity:
Number of securities in unrealized loss positions \| security	5	1
State and municipal securities
Securities available-for-sale:
Amortized Cost	$ 72,815	$ 63,848
Available-for-sale, Gross Unrealized Gains	704	2,025
Available-for-sale, Gross Unrealized Losses	(871)	(63)
Fair value	72,648	65,810
Securities held to maturity:
Held-to-maturity, Amortized Cost	6,476	6,510
Held-to-maturity, Gross Unrealized Gains	296	347
Fair Value	$ 6,772	$ 6,857
Number of securities in unrealized loss positions \| security	30	3
Corporate bonds
Securities available-for-sale:
Amortized Cost	$ 4,950	$ 4,200
Available-for-sale, Gross Unrealized Gains	17	7
Available-for-sale, Gross Unrealized Losses	(37)	(2)
Fair value	$ 4,930	$ 4,205
Securities held to maturity:
Number of securities in unrealized loss positions \| security	4	2
U.S. Treasuries
Securities available-for-sale:
Amortized Cost	$ 1,938
Available-for-sale, Gross Unrealized Losses	(22)
Fair value	$ 1,916
Securities held to maturity:
Number of securities in unrealized loss positions \| security	1

Securities - Continuous Unreali

Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Securities
Proceeds from Sale of Debt Securities, Available-for-sale	$ 13,639	$ 0
Gross gain on sale of available for sale investments	248
Gross loss on sale of available for sale investments	200
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	60,485		$ 10,529
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	8,373		7,443
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	68,858		17,972
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	(1,091)		(86)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(32)		(71)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(1,123)		(157)
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	948		2,884
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, 12 Months or Longer	8,373		7,443
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	9,321		10,327
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	(24)		(4)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, 12 Months or Longer	(32)		(71)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(56)		(75)
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	6,781		2,284
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	6,781		2,284
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	(137)		(17)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(137)		(17)
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	47,927		4,163
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	47,927		4,163
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	(871)		(63)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(871)		(63)
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	2,913		1,198
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	2,913		1,198
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	(37)		(2)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	(37)		$ (2)
U.S. Treasuries
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Less than 12 Months	1,916
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	1,916
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	(22)
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses, Total	$ (22)

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	$ 133,341	$ 120,215
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	134,165	123,562
Contractual Maturities, Held-to-maturity, Amortized Cost
Amortized Cost	6,476	6,510
Contractual Maturities, Held-to-maturity, Fair Value
Fair Value	6,772	6,857
U.S. Asset Backed And State And Municipal Securities
Contractual Maturities, Available-for-sale, Amortized Cost
Due after five years through ten years	14,077	12,035
Due after ten years	92,454	81,316
Amortized Cost	106,531	93,351
Contractual Maturities, Available-for-sale, Fair Value
Due after five years through ten year	13,963	12,095
Due after ten years	92,761	83,512
Fair Value	106,724	95,607
Contractual Maturities, Held-to-maturity, Amortized Cost
Due after one year through five years	3,165	3,181
Due after five years through ten years	3,311	3,329
Amortized Cost	6,476	6,510
Contractual Maturities, Held-to-maturity, Fair Value
Due after one year through five years	3,255	3,288
Due after five years through ten years	3,517	3,569
Fair Value	6,772	6,857
Mortgage-related securities
Contractual Maturities, Available-for-sale, Amortized Cost
Amortized Cost	26,810	26,864
Contractual Maturities, Available-for-sale, Fair Value
Fair Value	$ 27,441	$ 27,955

Loans Receivable - Loans and le

Loans Receivable - Loans and leases outstanding by category (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans Receivable
Mortgage loans held for sale	$ 170,248	$ 229,199
Total portfolio loans and leases	1,359,048	1,289,756
Total loans and leases	1,529,296	1,518,955
Loans at fair value	13,590	12,182
Real estate loans
Loans Receivable
Total portfolio loans and leases	756,685	742,790
Commercial mortgage
Loans Receivable
Total portfolio loans and leases	517,421	485,103
Home equity lines and loans
Loans Receivable
Total portfolio loans and leases	55,578	64,987
Residential mortgage
Loans Receivable
Total portfolio loans and leases	49,085	52,454
Loans at fair value	13,590	12,182
Construction
Loans Receivable
Total portfolio loans and leases	134,601	140,246
Commercial and industrial, including leases
Loans Receivable
Total portfolio loans and leases	261,421	261,750
Small business loans
Loans Receivable
Total portfolio loans and leases	62,373	49,542
Paycheck Protection Program loans ("PPP")
Loans Receivable
Total portfolio loans and leases	230,847	203,543
MainStreet Lending Program Loans ("PPP")
Loans Receivable
Total portfolio loans and leases	583	580
Consumer
Loans Receivable
Total portfolio loans and leases	469	511
Leases
Loans Receivable
Total portfolio loans and leases	$ 46,670	$ 31,040

Loans Receivable - Loans and _2

Loans Receivable - Loans and leases outstanding by rate type (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans Receivable
Loans with predetermined rates	$ 622,498	$ 658,458
Loans with adjustable or floating rates	906,798	860,497
Total loans and leases	1,529,296	1,518,955
Net deferred loan origination (fees) costs	$ (4,497)	$ (4,992)

Loans Receivable - Components o

Loans Receivable - Components of the net investment in leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Loans Receivable
Minimum lease payments receivable	$ 56,818	$ 37,919
Unearned income	10,148	6,879
Total	$ 46,670	$ 31,040

Loans Receivable - Age analysis

Loans Receivable - Age analysis of past due loans and leases (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Age Analysis of Past Due Loans and Leases
Total past due		$ 800	$ 3,704
Current		1,349,655	1,278,122
Total Accruing Loans and leases		1,350,455	1,281,826
Nonaccrual loans and leases		8,593	7,930
Loans and Leases Receivable, Gross, Total		$ 1,359,048	$ 1,289,756
Delinquency percentage		0.69%	0.90%
Loans at fair value		$ 13,590	$ 12,182
Commercial mortgage
Age Analysis of Past Due Loans and Leases
Current		517,421	482,042
Total Accruing Loans and leases		517,421	482,042
Nonaccrual loans and leases			3,061
Loans and Leases Receivable, Gross, Total		517,421	$ 485,103
Delinquency percentage			0.63%
Home equity lines and loans
Age Analysis of Past Due Loans and Leases
Current		54,659	$ 64,128
Total Accruing Loans and leases		54,659	64,128
Nonaccrual loans and leases		919	859
Loans and Leases Receivable, Gross, Total		$ 55,578	$ 64,987
Delinquency percentage		1.65%	1.32%
Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due		$ 640	$ 3,595
Current		45,730	46,134
Total Accruing Loans and leases		46,370	49,729
Nonaccrual loans and leases		2,715	2,725
Loans and Leases Receivable, Gross, Total		$ 49,085	$ 52,454
Delinquency percentage		6.84%	12.05%
Loans at fair value		$ 13,590	$ 12,182
Construction
Age Analysis of Past Due Loans and Leases
Current		134,601	140,246
Total Accruing Loans and leases		134,601	140,246
Loans and Leases Receivable, Gross, Total		134,601	140,246
Commercial and industrial, including leases
Age Analysis of Past Due Loans and Leases
Current		257,510	260,465
Total Accruing Loans and leases		257,510	260,465
Nonaccrual loans and leases		3,911	1,285
Loans and Leases Receivable, Gross, Total		$ 261,421	$ 261,750
Delinquency percentage		1.50%	0.49%
Small business loans
Age Analysis of Past Due Loans and Leases
Current		$ 61,456	$ 49,542
Total Accruing Loans and leases		61,456	49,542
Nonaccrual loans and leases		917
Loans and Leases Receivable, Gross, Total		$ 62,373	49,542
Delinquency percentage		1.47%
Paycheck Protection Program loans ("PPP")
Age Analysis of Past Due Loans and Leases
Current		$ 230,847	203,543
Total Accruing Loans and leases		230,847	203,543
Loans and Leases Receivable, Gross, Total		230,847	203,543
MainStreet Lending Program Loans ("PPP")
Age Analysis of Past Due Loans and Leases
Current		583	580
Total Accruing Loans and leases		583	580
Loans and Leases Receivable, Gross, Total		583	580
Consumer
Age Analysis of Past Due Loans and Leases
Current		469	511
Total Accruing Loans and leases		469	511
Loans and Leases Receivable, Gross, Total		469	511
Leases
Age Analysis of Past Due Loans and Leases
Total past due		160	109
Current		46,379	30,931
Total Accruing Loans and leases		46,539	31,040
Nonaccrual loans and leases		131
Loans and Leases Receivable, Gross, Total		$ 46,670	$ 31,040
Delinquency percentage		0.62%	0.35%
Current \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Loans at fair value		$ 12,048	$ 10,314
30-89 days past due
Age Analysis of Past Due Loans and Leases
Total past due		800	3,704
30-89 days past due \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Total past due		640	3,595
Loans at fair value	$ 640		958
30-89 days past due \| Leases
Age Analysis of Past Due Loans and Leases
Total past due		160	109
Nonaccrual \| Residential mortgage
Age Analysis of Past Due Loans and Leases
Loans at fair value		$ 902	$ 910

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
	Mar. 31, 2021	Mar. 31, 2020
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	$ 17,767	$ 9,513
Recoveries	10	33
Provision	599	1,552
Balance at end of period	18,376	11,098
Commercial mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	7,451	3,426
Provision	204	686
Balance at end of period	7,655	4,112
Home equity lines and loans
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	434	342
Recoveries	2	1
Provision	(126)	141
Balance at end of period	310	484
Residential mortgage
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	385	179
Recoveries	2	2
Provision	(73)	38
Balance at end of period	314	219
Construction
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	2,421	2,362
Provision	(110)	19
Balance at end of period	2,311	2,381
Commercial and industrial, including leases
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	5,431	2,684
Recoveries	5	29
Provision	(150)	456
Balance at end of period	5,286	3,169
Small business loans
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	1,259	509
Provision	661	216
Balance at end of period	1,920	725
Consumer
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	4	6
Recoveries	1	1
Provision	(1)	(3)
Balance at end of period	4	4
Leases
Roll-Forward of Allowance for Loan and Lease Losses by Portfolio Segment
Balance at beginning of period	382	5
Provision	194	(1)
Balance at end of period	$ 576	$ 4

Allowance for Loan Losses (th_4

Allowance for Loan Losses (the Allowance) - Allowance allocated by portfolio segment (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	$ 2,018	$ 1,645
Allowance on loans and leases collectively evaluated for impairment	16,358	16,122
Total	18,376	17,767	$ 11,098	$ 9,513
Carrying value of loans and leases individually evaluated for impairment	10,226	10,380
Carrying value of loans and leases collectively evaluated for impairment	1,335,232	1,267,194
Total	1,345,458	1,277,574
Commercial mortgage
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	7,655	7,451
Total	7,655	7,451	4,112	3,426
Carrying value of loans and leases individually evaluated for impairment	730	1,606
Carrying value of loans and leases collectively evaluated for impairment	516,691	483,497
Total	517,421	485,103
Home equity lines and loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	8	9
Allowance on loans and leases collectively evaluated for impairment	302	425
Total	310	434	484	342
Carrying value of loans and leases individually evaluated for impairment	919	921
Carrying value of loans and leases collectively evaluated for impairment	54,659	64,066
Total	55,578	64,987
Residential mortgage
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	72	73
Allowance on loans and leases collectively evaluated for impairment	242	312
Total	314	385	219	179
Carrying value of loans and leases individually evaluated for impairment	1,814	1,817
Carrying value of loans and leases collectively evaluated for impairment	33,681	38,455
Total	35,495	40,272
Construction
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	2,311	2,421
Total	2,311	2,421	2,381	2,362
Carrying value of loans and leases individually evaluated for impairment	1,206	1,206
Carrying value of loans and leases collectively evaluated for impairment	133,395	139,040
Total	134,601	140,246
Commercial and industrial, including leases
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	1,562	1,563
Allowance on loans and leases collectively evaluated for impairment	3,724	3,868
Total	5,286	5,431	3,169	2,684
Carrying value of loans and leases individually evaluated for impairment	4,339	4,645
Carrying value of loans and leases collectively evaluated for impairment	257,082	257,105
Total	261,421	261,750
Small business loans
Impaired Loans
Allowance on loans and leases individually evaluated for impairment	376
Allowance on loans and leases collectively evaluated for impairment	1,544	1,259
Total	1,920	1,259	725	509
Carrying value of loans and leases individually evaluated for impairment	1,087	185
Carrying value of loans and leases collectively evaluated for impairment	61,286	49,357
Total	62,373	49,542
Paycheck Protection Program loans ("PPP")
Impaired Loans
Carrying value of loans and leases collectively evaluated for impairment	230,847	203,543
Total	230,847	203,543
MainStreet Lending Program Loans ("PPP")
Impaired Loans
Carrying value of loans and leases collectively evaluated for impairment	583	580
Total	583	580
Consumer
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	4	4
Total	4	4	4	6
Carrying value of loans and leases collectively evaluated for impairment	469	511
Total	469	511
Leases
Impaired Loans
Allowance on loans and leases collectively evaluated for impairment	576	382
Total	576	382	$ 4	$ 5
Carrying value of loans and leases individually evaluated for impairment	131
Carrying value of loans and leases collectively evaluated for impairment	46,539	31,040
Total	$ 46,670	$ 31,040

Allowance for Loan Losses (th_5

Allowance for Loan Losses (the Allowance) - Carrying value based on credit quality indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 1,262,824	$ 1,205,751
Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	1,185,276	1,124,015
Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	57,531	61,740
Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	16,407	16,316
Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,610	3,680
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	517,421	485,103
Commercial mortgage \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	482,177	449,545
Commercial mortgage \| Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	32,076	32,059
Commercial mortgage \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,168	3,499
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	55,578	64,987
Home equity lines and loans \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	54,174	63,923
Home equity lines and loans \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	1,404	1,064
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	134,601	140,246
Construction \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	125,974	132,286
Construction \| Special mention
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	8,627	7,960
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	261,421	261,750
Commercial and industrial, including leases \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	232,768	227,349
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	16,828	21,721
Commercial and industrial, including leases \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	8,215	9,000
Commercial and industrial, including leases \| Doubtful
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,610	3,680
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	62,373	49,542
Small business loans \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	58,753	46,789
Small business loans \| Substandard
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	3,620	2,753
Paycheck Protection Program loans ("PPP") \| Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	230,847	203,543
Paycheck Protection Program loans ("PPP") \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	230,847	203,543
MainStreet Lending Program Loans ("PPP") \| Evaluated based on credit quality indicators
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	583	580
MainStreet Lending Program Loans ("PPP") \| Pass
Loans and Leases by Credit Ratings
Carry value of loans and leases excluding residential mortgage, consumer and leases	$ 583	$ 580

Allowance for Loan Losses (th_6

Allowance for Loan Losses (the Allowance) - Carrying value based on performance status (Details) $ in Thousands	Mar. 31, 2021USD ($)loan	Dec. 31, 2020USD ($)loan
Loans and Leases by Credit Ratings
Troubled debt restructurings	$ 2,773	$ 3,606
Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	82,634	71,823
Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	80,689	70,008
Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	1,945	1,815
Residential mortgage \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	35,495	40,272
Residential mortgage \| Performing
Loans and Leases by Credit Ratings
Troubled debt restructurings	0	0
Carrying value of residential mortgage, consumer and leases	33,681	38,457
Residential mortgage \| Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 1,814	$ 1,815
Number of loans \| loan	5	5
Loans receivable, net of the allowance and lease losses	$ 902	$ 910
Consumer \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	469	511
Consumer \| Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	469	511
Leases \| Evaluated by performance status
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	46,670	31,040
Leases \| Performing
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	46,539	$ 31,040
Leases \| Nonperforming
Loans and Leases by Credit Ratings
Carrying value of residential mortgage, consumer and leases	$ 131

Allowance for Loan Losses (th_7

Allowance for Loan Losses (the Allowance) - Impaired loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Impaired loans with related allowance:
Recorded investment	$ 5,489	$ 4,644
Principal balance	5,575	4,696
Related allowance	2,018	1,645
Impaired loans without related allowance:
Recorded investment	4,737	5,736
Principal balance	4,832	5,862
Grand Total
Recorded investment	10,226	10,380
Principal balance	10,407	10,558
Related allowance	2,018	1,645
Commercial mortgage
Impaired loans without related allowance:
Recorded investment	730	1,606
Principal balance	730	1,642
Commercial and industrial, including leases
Impaired loans with related allowance:
Recorded investment	3,790	3,860
Principal balance	3,866	3,902
Related allowance	1,562	1,563
Impaired loans without related allowance:
Recorded investment	549	785
Principal balance	630	862
Small business loans
Impaired loans with related allowance:
Recorded investment	917
Principal balance	917
Related allowance	376
Impaired loans without related allowance:
Recorded investment	170	185
Principal balance	170	185
Home equity lines and loans
Impaired loans with related allowance:
Recorded investment	94	95
Principal balance	104	105
Related allowance	8	9
Impaired loans without related allowance:
Recorded investment	825	826
Principal balance	839	839
Residential mortgage
Impaired loans with related allowance:
Recorded investment	688	689
Principal balance	688	689
Related allowance	72	73
Impaired loans without related allowance:
Recorded investment	1,126	1,128
Principal balance	1,126	1,128
Construction
Impaired loans without related allowance:
Recorded investment	1,206	1,206
Principal balance	1,206	$ 1,206
Leases
Impaired loans with related allowance:
Recorded investment	131
Principal balance	$ 131

Allowance for Loan Losses (th_8

Allowance for Loan Losses (the Allowance) - Impaired Loan Average Recorded Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Impaired loans with related allowance:
Average recorded investment	$ 5,527	$ 909
Interest income recognized	5	5
Impaired loans without related allowance:
Average recorded investment	4,770	9,000
Interest income recognized	27	48
Grand Total
Average recorded investment	10,297	9,909
Total interest income recognized on impaired loans	32	53
Commercial mortgage
Impaired loans without related allowance:
Average recorded investment	735	2,129
Interest income recognized	8	21
Commercial and industrial, including leases
Impaired loans with related allowance:
Average recorded investment	3,826	451
Interest income recognized	5	5
Impaired loans without related allowance:
Average recorded investment	579	587
Interest income recognized		4
Small business loans
Impaired loans with related allowance:
Average recorded investment	918
Impaired loans without related allowance:
Average recorded investment	176	934
Interest income recognized	4	6
Home equity lines and loans
Impaired loans with related allowance:
Average recorded investment	95	458
Impaired loans without related allowance:
Average recorded investment	825	305
Residential mortgage
Impaired loans with related allowance:
Average recorded investment	688
Impaired loans without related allowance:
Average recorded investment	1,127	3,806
Construction
Impaired loans without related allowance:
Average recorded investment	1,206	1,239
Interest income recognized	15	$ 17
Leases
Impaired loans without related allowance:
Average recorded investment	$ 122

Allowance for Loan Losses (th_9

Allowance for Loan Losses (the Allowance) - Troubled debt restructuring (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Allowance for Loan Losses (the Allowance)
TDRs included in nonperforming loans and leases	$ 239	$ 244
TDRs in compliance with modified terms	2,534	3,362
Total TDRs	$ 2,773	$ 3,606

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
	Mar. 31, 2021USD ($)contract	Mar. 31, 2020USD ($)contract
Allowance for Loan Losses (the Allowance)
Number of Contracts \| contract	0	0
Loan and lease modifications granted and subsequently defaulted \| $	$ 0	$ 0

Allowance for Loan Losses (t_11

Allowance for Loan Losses (the Allowance) - COVID-19 Loan modifications Programs (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
COVID-19 Loan Modification Programs
Portfolio Balance	$ 1,114,028	$ 1,073,451
Active Modifications	$ 28,754	$ 26,905
Percentage of Loan Portfolio	2.60%	2.50%
Commercial mortgage
COVID-19 Loan Modification Programs
Portfolio Balance	$ 517,421	$ 485,103
Active Modifications	$ 24,341	$ 19,836
Percentage of Loan Portfolio	4.70%	4.10%
Commercial and industrial, including leases
COVID-19 Loan Modification Programs
Portfolio Balance	$ 308,091	$ 292,790
Active Modifications	$ 70
Percentage of Loan Portfolio	0.00%
Construction & land development
COVID-19 Loan Modification Programs
Portfolio Balance	$ 134,601	140,246
Active Modifications	$ 4,343	$ 4,343
Percentage of Loan Portfolio	3.20%	3.10%
Home equity lines and loans
COVID-19 Loan Modification Programs
Portfolio Balance	$ 55,578	$ 64,987
Residential mortgage
COVID-19 Loan Modification Programs
Portfolio Balance	35,495	40,272
Small business loans
COVID-19 Loan Modification Programs
Portfolio Balance	62,373	49,542
Active Modifications		2,726
Consumer
COVID-19 Loan Modification Programs
Portfolio Balance	$ 469	$ 511

Short-Term Borrowings and Lon_2

Short-Term Borrowings and Long-Term Debt - Short-term borrowings (Details)	3 Months Ended
	Mar. 31, 2021USD ($)item	Dec. 31, 2020USD ($)
Short-Term Borrowings
Short term borrowings	$ 26,376,000	$ 106,862,000
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
Open Repo Plus Weekly 0.41 Percent Maturing On 05/28/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings		60,416,000
Interest rate (as a percent)	0.41%
Federal Reserve discount window \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Maximum borrowing capacity	$ 10,100,000
Short term borrowings	$ 0	10,000,000
Interest rate (as a percent)	0.25%
PPPLF Advance
Short-Term Borrowings
Advances secured percentage	100.00%
Short term borrowings	$ 110,600,000
Interest rate (as a percent)	0.35%
Mid-term Repo-fixed 0.36%, 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 0.10%, Maturing On 06/10/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 6,376,000	6,376,000
Interest rate (as a percent)	0.10%
Mid-term Repo-fixed 0.11%, Maturing On 09/10/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 10,000,000	10,000,000
Interest rate (as a percent)	0.11%
Mid-term Repo-fixed 0.16%, Maturing On 12/10/2021 \| Federal Home Loan Bank of Pittsburgh
Short-Term Borrowings
Short term borrowings	$ 10,000,000	10,000,000
Interest rate (as a percent)	0.16%
Mid-term Repo-fixed 0.23%, 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%

Short-Term Borrowings and Lon_3

Short-Term Borrowings and Long-Term Debt - Long-term debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Long Term Debt
Long-term debt	$ 122,884	$ 165,546
PPPLF Advances
Long Term Debt
Fixed interest rate (as a percent)	0.35%
Long-term debt	$ 45,189	153,269
PPPLF Advances 2026
Long Term Debt
Fixed interest rate (as a percent)	0.35%
Long-term debt	$ 65,417
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	7,392
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	4,885
Federal Home Loan Bank of Pittsburgh \| Letters of credit
Long Term Debt
Proceeds from long term debt	154,000
Maximum borrowing capacity	$ 546,700	$ 638,900

Servicing Assets - Residential

Servicing Assets - Residential Mortgage Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	$ 5,617,000
Balance at end of the period	8,278,000
Mortgage Servicing Rights
Servicing Assets at Fair Value [Line Items]
Loans serviced	690,900,000		$ 506,000,000
Servicing fee income	358,000	$ 183,000
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	4,647,000	446,000
Servicing rights capitalized	2,342,000	184,000
Amortization of servicing rights	(199,000)	(33,000)
Change in valuation allowance	328,000	(174,000)
Balance at end of the period	7,118,000	423,000
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	435,000	98,000
Impairment		(174,000)
Recovery	328,000
Valuation allowance, end of the period	$ 107,000	$ 272,000

Servicing Assets - MSR Sensitiv

Servicing Assets - MSR Sensitivity Analysis (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
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	$ 7,258	$ 4,647
Weighted average life (years)	6 years	5 years
Prepayment speed	7.21%	9.39%
Impact on fair value of a 10% adverse change in prepayment speed	$ (250)	$ (183)
Impact on fair value of a 20% adverse change in prepayment speed	$ (485)	$ (354)
Discount rate	9.00%	9.00%
Impact on fair value of a 10% adverse change in the discount rate	$ (284)	$ (168)
Impact on fair value of a 20% adverse change in the discount rate	$ (547)	$ (329)

Servicing Assets - SBA Loans (D

Servicing Assets - SBA Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	$ 5,617
Balance at end of the period	8,278
SBA Loan Servicing Rights
Servicing Assets at Fair Value [Line Items]
Loans serviced	44,800		$ 55,900
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Balance at beginning of the period	970	$ 337
Servicing rights capitalized	274	159
Amortization of servicing rights	(67)	(19)
Change in valuation allowance	(17)	(8)
Balance at end of the period	1,160	469
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	(39)	(26)
Impairment	(17)	(8)
Valuation allowance, end of the period	$ (56)	$ (34)

Servicing Assets - SBA Sensitiv

Servicing Assets - SBA Sensitivity Analysis (Details) - SBA Loan Servicing Rights - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
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	$ 1,234	$ 1,010
Weighted average life (years)	3 years 7 months 6 days	3 years 8 months 12 days
Prepayment speed	14.09%	12.73%
Impact on fair value of a 10% adverse change in prepayment speed	$ (49)	$ (37)
Impact on fair value of a 20% adverse change in prepayment speed	$ (94)	$ (71)
Discount rate	6.90%	8.33%
Impact on fair value of a 10% adverse change in the discount rate	$ (32)	$ (25)
Impact on fair value of a 20% adverse change in the discount rate	$ (62)	$ (49)

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	Mar. 31, 2021	Dec. 31, 2020
Assets
Securities available-for-sale	$ 134,165	$ 123,562
Equity investments	1,013	1,031
Mortgage loans held-for-investment	13,590	12,182
U.S. asset backed securities
Assets
Securities available-for-sale	27,230	25,592
U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	3,922	4,046
U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	23,519	23,909
State and municipal securities
Assets
Securities available-for-sale	72,648	65,810
Corporate bonds
Assets
Securities available-for-sale	4,930	4,205
Level 3 \| Interest rate lock commitments
Assets
Derivative assets, Fair value	3,285	6,932
Recurring
Assets
Equity investments	1,013	1,031
Mortgage loans held-for-sale	170,248	229,199
Mortgage loans held-for-investment	13,590	12,182
Total	324,284	374,024
Liabilities
Total	1,053	2,891
Recurring \| U.S. asset backed securities
Assets
Securities available-for-sale	27,230	25,592
Recurring \| U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	3,922	4,046
Recurring \| U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	23,519	23,909
Recurring \| State and municipal securities
Assets
Securities available-for-sale	72,648	65,810
Recurring \| U.S. Treasuries
Assets
Securities available-for-sale	1,916
Recurring \| Corporate bonds
Assets
Securities available-for-sale	4,930	4,205
Recurring \| Interest rate lock commitments
Assets
Derivative assets, Fair value	3,285	6,932
Liabilities
Derivative Liability	890	100
Recurring \| Forward Commitments
Assets
Derivative assets, Fair value	1,832
Liabilities
Derivative Liability	8	1,572
Recurring \| Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	151	1,118
Liabilities
Derivative Liability	155	1,219
Recurring \| Level 2
Assets
Equity investments	1,013	1,031
Mortgage loans held-for-sale	170,248	229,199
Mortgage loans held-for-investment	13,590	12,182
Total	320,999	367,092
Liabilities
Total	163	2,791
Recurring \| Level 2 \| U.S. asset backed securities
Assets
Securities available-for-sale	27,230	25,592
Recurring \| Level 2 \| U.S. government agency mortgage-backed securities
Assets
Securities available-for-sale	3,922	4,046
Recurring \| Level 2 \| U.S. government agency collateralized mortgage obligations
Assets
Securities available-for-sale	23,519	23,909
Recurring \| Level 2 \| State and municipal securities
Assets
Securities available-for-sale	72,648	65,810
Recurring \| Level 2 \| U.S. Treasuries
Assets
Securities available-for-sale	1,916
Recurring \| Level 2 \| Corporate bonds
Assets
Securities available-for-sale	4,930	4,205
Recurring \| Level 2 \| Forward Commitments
Assets
Derivative assets, Fair value	1,832
Liabilities
Derivative Liability	8	1,572
Recurring \| Level 2 \| Customer derivatives - interest rate swaps
Assets
Derivative assets, Fair value	151	1,118
Liabilities
Derivative Liability	155	1,219
Recurring \| Level 3
Assets
Total	3,285	6,932
Liabilities
Total	890	100
Recurring \| Level 3 \| Interest rate lock commitments
Assets
Derivative assets, Fair value	3,285	6,932
Liabilities
Derivative Liability	$ 890	$ 100

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	Mar. 31, 2021	Dec. 31, 2020
Financial assets measured at fair value on a nonrecurring basis
Mortgage servicing rights	$ 7,118	$ 4,647
SBA loan servicing rights	1,160	970
Impaired loans	3,550	2,998
Total	$ 11,828	$ 8,615

Fair Value Measurements and D_5

Fair Value Measurements and Disclosures - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financial assets:
Securities available-for-sale	$ 134,165	$ 123,562
Securities held-to-maturity	6,772	6,857
Equity investments	1,013	1,031
Mortgage loans held-for-investment	13,590	12,182
Carrying amount
Financial assets:
Restricted investment in bank stock	5,114	7,861
Level 1 \| Carrying amount
Financial assets:
Cash and cash equivalents	31,004	36,744
Level 1 \| Fair value
Financial assets:
Cash and cash equivalents	31,004	36,744
Level 2 \| Carrying amount
Financial assets:
Securities available-for-sale	134,165	123,562
Securities held-to-maturity	6,476	6,510
Equity investments	1,013	1,031
Mortgage loans held-for-sale	170,248	229,199
Mortgage loans held-for-investment	13,590	12,182
Financial liabilities:
Deposits	1,383,590	1,241,335
Short-term borrowings	26,376	106,862
Long-term debt	122,884	165,546
Subordinated debentures	40,701	40,671
Accrued interest payable	743	1,154
Level 2 \| Carrying amount \| Forward Commitments
Financial assets:
Derivative asset	1,832
Financial liabilities:
Derivatives	8	1,572
Level 2 \| Carrying amount \| Customer derivatives - interest rate swaps
Financial assets:
Derivative asset	151	1,118
Financial liabilities:
Derivatives	155	1,219
Level 2 \| Fair value
Financial assets:
Securities available-for-sale	134,165	123,562
Securities held-to-maturity	6,772	6,857
Equity investments	1,013	1,031
Mortgage loans held-for-sale	170,248	229,199
Mortgage loans held-for-investment	13,590	12,182
Financial liabilities:
Deposits	1,470,200	1,392,500
Short-term borrowings	26,376	106,862
Long-term debt	124,450	168,000
Subordinated debentures	41,479	38,375
Accrued interest payable	743	1,154
Level 2 \| Fair value \| Forward Commitments
Financial assets:
Derivative asset	1,832
Financial liabilities:
Derivatives	8	1,572
Level 2 \| Fair value \| Customer derivatives - interest rate swaps
Financial assets:
Derivative asset	151	1,118
Financial liabilities:
Derivatives	155	1,219
Level 3 \| Interest rate lock commitments
Financial assets:
Derivative asset	3,285	6,932
Level 3 \| Carrying amount
Financial assets:
Loans receivable, net of the allowance and lease losses	1,340,961	1,272,582
Accrued interest receivable	5,567	5,482
Level 3 \| Carrying amount \| Interest rate lock commitments
Financial assets:
Derivative asset	3,285	6,932
Financial liabilities:
Derivatives	890	100
Level 3 \| Fair value
Financial assets:
Loans receivable, net of the allowance and lease losses	1,352,643	1,289,776
Accrued interest receivable	5,567	5,482
Level 3 \| Fair value \| Interest rate lock commitments
Financial assets:
Derivative asset	3,285	6,932
Financial liabilities:
Derivatives	$ 890	$ 100

Fair Value Measurements and D_6

Fair Value Measurements and Disclosures - Off-balance sheet financial instruments (Details) - Level 2 - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Carrying amount \| Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 445,536	$ 421,399
Carrying amount \| Letters of credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	8,730	8,928
Fair value \| Commitments to extend credit
Off-balance sheet financial instruments:
Off-balance sheet financial instruments	$ 3,285	$ 6,932

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
	Mar. 31, 2021	Mar. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at beginning of the period	$ 6,932	$ 504
(Decrease) Increase in value	(3,647)	3,517
Balance at end of the period	$ 3,285	$ 4,021

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
	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset	$ 3,285		$ 6,932
Valuation technique extensible list	us-gaap:ValuationTechniqueConsensusPricingModelMember		us-gaap:ValuationTechniqueConsensusPricingModelMember
Measurement input extensible list	mrbk:LoanOriginationSucessRateMember		mrbk:LoanOriginationSucessRateMember
Net realized gains (losses)	$ (4,400)	$ 3,300
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	1		1
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	99		99
Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	89.79		83.08

Derivative Financial Instrume_3

Derivative Financial Instruments - Notional amounts and fair values of derivative financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivative Financial Instruments
Notional Amount	$ 616,324	$ 688,786
Asset (Liability) Fair Value	4,215	5,159
Interest rate lock commitments
Derivative Financial Instruments
Notional Amount	350,008	428,828
Asset (Liability) Fair Value	2,395	6,832
Interest rate lock commitments \| Other Assets
Derivative Financial Instruments
Notional Amount	258,001	406,422
Asset (Liability) Fair Value	3,285	6,932
Interest rate lock commitments \| Other Liabilities
Derivative Financial Instruments
Notional Amount	92,007	22,406
Asset (Liability) Fair Value	(890)	(100)
Forward Commitments
Derivative Financial Instruments
Notional Amount	193,500	218,000
Asset (Liability) Fair Value	1,824	(1,572)
Forward Commitments \| Other Assets
Derivative Financial Instruments
Notional Amount	161,000
Asset (Liability) Fair Value	1,832
Forward Commitments \| Other Liabilities
Derivative Financial Instruments
Notional Amount	32,500	218,000
Asset (Liability) Fair Value	(8)	(1,572)
Customer derivatives - interest rate swaps
Derivative Financial Instruments
Notional Amount	72,816	41,958
Asset (Liability) Fair Value	(4)	(101)
Customer derivatives - interest rate swaps \| Other Assets
Derivative Financial Instruments
Notional Amount	36,408	20,979
Asset (Liability) Fair Value	151	1,118
Customer derivatives - interest rate swaps \| Other Liabilities
Derivative Financial Instruments
Notional Amount	36,408	20,979
Asset (Liability) Fair Value	$ (155)	$ (1,219)

Derivative Financial Instrume_4

Derivative Financial Instruments - Fair value gains and losses on derivative financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	$ (944)	$ 954
Realized losses on derivatives	4,261	(1,425)
Interest rate lock commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	(4,437)	3,342
Forward Commitments
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	3,396	(2,311)
Customer derivatives - interest rate swaps
Summary of the fair value gains and losses on derivative financial instruments
Net fair value (losses) gains on derivative financial instruments	$ 97	$ (77)

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended
Segments (Details) $ in Thousands	Mar. 31, 2021USD ($)Office	Mar. 31, 2020USD ($)Office	Dec. 31, 2020USD ($)
Net-interest Income:
Net interest income	$ 15,120	$ 9,666
Provision for loan losses	599	1,552
Net interest income after provision for loan losses	14,521	8,114
Non-Interest Income:
Mortgage banking income	24,100	6,793
Wealth management income	1,136	1,021
SBA income	1,245	542
Net change in fair values	(4,913)	1,752
Net gain (loss) on hedging activity	4,261	(1,425)
Other	1,219	536
Total non-interest income	27,048	9,219
Non-interest expenses:
Total non-interest expenses	28,263	14,062
Income before income taxes	13,306	3,271
Total Assets	1,743,977	1,303,442	$ 1,720,197
Bank
Net-interest Income:
Net interest income	14,500	9,518
Provision for loan losses	599	1,552
Net interest income after provision for loan losses	13,901	7,966
Non-Interest Income:
Mortgage banking income	268	102
SBA income	1,245	542
Net change in fair values	98	(65)
Other	712	445
Total non-interest income	2,323	1,024
Non-interest expenses:
Total non-interest expenses	8,932	6,937
Income before income taxes	7,292	2,053
Total Assets	1,578,721	1,192,882
Wealth
Net-interest Income:
Net interest income	(14)	(2)
Net interest income after provision for loan losses	(14)	(2)
Non-Interest Income:
Wealth management income	1,136	1,021
Total non-interest income	1,136	1,021
Non-interest expenses:
Total non-interest expenses	895	788
Income before income taxes	227	231
Total Assets	$ 6,092	$ 5,337
Mortgage
Segments
Number of central loan production \| Office	16	16
Net-interest Income:
Net interest income	$ 634	$ 150
Net interest income after provision for loan losses	634	150
Non-Interest Income:
Mortgage banking income	23,832	6,691
Net change in fair values	(5,011)	1,817
Net gain (loss) on hedging activity	4,261	(1,425)
Other	507	91
Total non-interest income	23,589	7,174
Non-interest expenses:
Total non-interest expenses	18,436	6,337
Income before income taxes	5,787	987
Total Assets	159,164	105,223
Wealth Management Income
Non-Interest Income:
Revenue from contracts with customers	$ 1,136	$ 1,021

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 22, 2021	Feb. 16, 2021	Jan. 28, 2021	Mar. 31, 2021	Apr. 26, 2021	Dec. 31, 2020
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Cash dividend declared per common share			$ 0.125
Cash dividends paid				$ 0.125
Total dividends				$ 6,931
Common Stock, Special Dividends, Per Share, Declared		$ 1
Common stock special dividend paid				$ 1
Common Stock, Par or Stated Value Per Share				$ 1		$ 1
Subsequent event
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Cash dividend declared per common share	$ 0.125
Stock Repurchase Program, Authorized Amount					$ 6,000
Common Stock, Par or Stated Value Per Share					$ 1