Shore Bancshares (SHBI) 10-K 13 Mar 20 2019 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Feb. 29, 2020	Jun. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	SHORE BANCSHARES INC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,519,624
Entity Central Index Key	0001035092
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Voluntary Filers	No
Entity Public Float			$ 205,187,524
Entity Well-known Seasoned Issuer	No

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 18,465	$ 16,294
Interest-bearing deposits with other banks	76,506	50,931
Cash and cash equivalents	94,971	67,225
Investment securities:
Available-for-sale, at fair value	122,791	154,432
Held to maturity, at amortized cost - fair value of $8,654 (2019) and $6,000 (2018)	8,786	6,043
Equity securities, at fair value	1,342	1,269
Restricted securities	4,190	6,476
Loans	1,248,654	1,195,355
Less: allowance for credit losses	(10,507)	(10,343)
Loans, net	1,238,147	1,185,012
Premises and equipment, net	23,821	22,711
Goodwill	17,518	17,518
Other intangible assets, net	2,252	2,857
Other real estate owned, net	74	1,222
Right-of-use assets	4,771
Other assets	40,572	17,678
Assets of discontinued operations		633
TOTAL ASSETS	1,559,235	1,483,076
Deposits:
Noninterest-bearing	356,618	330,466
Interest-bearing	984,716	881,875
Total deposits	1,341,334	1,212,341
Short-term borrowings	1,226	60,812
Long-term borrowings	15,000	15,000
Lease liabilities	4,792
Other liabilities	4,081	8,415
Liabilities of discontinued operations		3,323
TOTAL LIABILITIES	1,366,433	1,299,891
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $.01 per share; shares authorized - 35,000,000; shares issued and outstanding - 12,500,372 (2019) and 12,749,497 (2018)	125	127
Additional paid in capital	61,045	65,434
Retained earnings	131,425	120,574
Accumulated other comprehensive income (loss)	207	(2,950)
TOTAL STOCKHOLDERS’ EQUITY	192,802	183,185
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,559,235	$ 1,483,076

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Investment securities held to maturity	$ 8,654	$ 6,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares, issued	12,500,372	12,749,497
Common stock, shares outstanding	12,500,372	12,749,497

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
INTEREST INCOME
Interest and fees on loans	$ 55,391	$ 51,332
Interest and dividends on investment securities:
Taxable	3,582	4,289
Interest on deposits with other banks	794	286
Total interest income	59,767	55,907
INTEREST EXPENSE
Interest on deposits	8,726	3,531
Interest on short-term borrowings	481	1,636
Interest on long-term borrowings	429	105
Total interest expense	9,636	5,272
NET INTEREST INCOME	50,131	50,635
Provision for credit losses	700	1,674
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	49,431	48,961
NONINTEREST INCOME
Service charges on deposit accounts	3,910	3,879
Trust and investment fee income	1,522	1,557
Other noninterest income	4,588	3,577
Total noninterest income	10,020	9,013
NONINTEREST EXPENSE
Salaries and wages	15,413	16,535
Employee benefits	5,283	4,001
Occupancy expense	2,758	2,622
Furniture and equipment expense	1,107	950
Data processing	3,790	3,331
Directors’ fees	479	556
Amortization of other intangible assets	605	866
FDIC insurance premium expense	344	771
Other real estate owned expenses, net	425	353
Legal and professional fees	2,223	1,981
Other noninterest expenses	5,130	4,865
Total noninterest expense	37,557	36,831
Income from continuing operations before income taxes	21,894	21,143
Income tax expense	5,610	5,380
Income from continuing operations	16,284	15,763
(Loss) income from discontinued operations before income taxes	(113)	1,421
Gain on sale of insurance agency		12,736
Income tax (benefit) expense	(27)	4,923
(Loss) income from discontinued operations	(86)	9,234
NET INCOME	$ 16,198	$ 24,997
Earnings per common share - Basic
Income from continuing operations	$ 1.28	$ 1.24
(Loss) income from discontinued operations	(0.01)	0.72
Net income	1.27	1.96
Earnings per common share - Diluted
Income from continuing operations	1.28	1.24
(Loss) income from discontinued operations	(0.01)	0.72
Net income	1.27	1.96
Dividends paid per common share (in dollars per share)	$ 0.42	$ 0.32

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 16,198	$ 24,997
Investment securities:
Unrealized holding gains (losses) on available-for-sale-securities	4,314	(2,308)
Tax effect	(1,178)	639
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity	29	30
Tax effect	(8)	(8)
Total other comprehensive income (loss)	3,157	(1,647)
Comprehensive income	$ 19,355	$ 23,350

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income(Loss)	Total
Balances at Dec. 31, 2017	$ 127	$ 65,256	$ 99,662	$ (1,309)	$ 163,736
Net Income			24,997		24,997
Other comprehensive income (loss)				(1,647)	(1,647)
Stock-based compensation		447			447
Exercise of options and vesting of restricted stock, net of shares surrendered		(269)
Cash dividends declared			(4,079)		(4,079)
Balances at Dec. 31, 2018	127	65,434	120,574	(2,950)	183,185
Cumulative effect adjustment (ASU 2016-01) | Accounting Standards Update 2016-01			(6)	6
Net Income			16,198		16,198
Other comprehensive income (loss)				3,157	3,157
Retirement of common stock	(3)	(4,449)			(4,452)
Stock-based compensation		149			149
Exercise of options and vesting of restricted stock, net of shares surrendered	1	(89)			(88)
Cash dividends declared			(5,347)		(5,347)
Balances at Dec. 31, 2019	$ 125	$ 61,045	$ 131,425	$ 207	$ 192,802

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 16,198	$ 24,997
Adjustments to reconcile net income to net cash provided by operating activities:
Net accretion of acquisition accounting estimates	(468)	(679)
Provision for credit losses	700	1,674
Depreciation and amortization	2,393	2,297
Net amortization of securities	512	649
Stock-based compensation expense	149	447
Deferred income tax expense (benefit)	241	(1,610)
Losses on sales and valuation adjustments on other real estate owned	417	290
Net (gain) on disposal of discontinued operations		(12,736)
Fair value adjustment on equity securities	(42)	5
Bank owned life insurance income	(443)	(73)
Net changes in:
Accrued interest receivable	(110)	164
Other assets	2,304	(3,258)
Accrued interest payable	(274)	539
Other liabilities	(7,834)	5,590
Net cash provided by operating activities	13,743	18,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and principal payments of investment securities available for sale	35,447	38,914
Proceeds from maturities and principal payments of investment securities held to maturity	1,282	228
Purchases of securities held to maturity	(4,000)
Purchases of equity securities	(31)	(616)
Net change in loans	(53,528)	(102,644)
Purchases of premises and equipment	(2,244)	(1,133)
Proceeds from sales of other real estate owned	731	378
Net redemption of restricted securities	2,286
Net purchases of restricted securities		(2,741)
Net proceeds from disposal of discontinued operations		25,159
Purchases of bank owned life insurance	(25,621)
Net cash (used in) investing activities	(45,678)	(42,455)
CASH FLOWS FROM FINANCING ACTIVITIES:
Noninterest-bearing deposits	26,152	2,144
Interest-bearing deposits	103,002	7,690
Short-term borrowings	(59,586)	39,078
Long-term borrowings		15,000
Common stock dividends paid	(5,347)	(4,079)
Retirement of common stock	(4,452)
Repurchase of shares for tax withholding on exercised options and vested restricted stock	(88)	(269)
Net cash provided by financing activities	59,681	59,564
Net increase in cash and cash equivalents	27,746	35,405
Cash and cash equivalents at beginning of period	67,225	31,820
Cash and cash equivalents at end of period	94,971	67,225
Supplemental cash flows information:
Interest paid	10,071	5,008
Income taxes paid	11,920	5,365
Lease liabilities arising from right-of-use assets	5,243
Transfers from loans to other real estate owned		96
Unrealized gain (loss) on securities available for sale	4,314	(2,308)
Amortization of unrealized loss on securities transferred from available for sale to held to maturity	$ 29	$ 30

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SHORE BANCSHARES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the Years Ended December 31, 2019 and 2018 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements include the accounts of Shore Bancshares, Inc. and its subsidiary (collectively referred to in these Notes as the “Company”), with all significant intercompany transactions eliminated. The investment in subsidiary is recorded on the Company’s books (Parent only) on the basis of its equity in the net assets of the subsidiary. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”). For purposes of comparability, certain reclassifications have been made to amounts previously reported to conform with the current period presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. Nature of Operations The Company engages in the banking business through Shore United Bank, a Maryland commercial bank with trust powers. The Company’s primary source of revenue is interest earned on commercial, real estate and consumer loans made to customers located in Maryland, Delaware and the Eastern Shore of Virginia. The Company engages in the trust services business through the trust department at Shore United Bank under the trade name Wye Financial & Trust. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the determination of the allowance for loan losses, fair values initially assigned in an acquisition and subsequent evaluations of the related goodwill and intangible assets for impairment. Investment Securities Available for Sale Investment securities available for sale are stated at estimated fair value based on quoted prices. They represent those debt securities which management may sell as part of its asset/liability management strategy or which may be sold in response to changing interest rates, changes in prepayment risk or other similar factors. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Premiums and discounts are amortized or accreted into interest income using the interest method over the lives of the individual securities. Interest on investment securities is recognized in interest income on an accrual basis. Net unrealized holding gains and losses on these securities are reported as accumulated other comprehensive income, a separate component of stockholders’ equity, net of related income taxes. Declines in the fair value of individual available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value and are reflected in earnings as realized losses. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. Investment Securities Held to Maturity Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company intends and has the ability to hold such securities until maturity. Declines in the fair value of individual held-to-maturity securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost. Equity Securities Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Restricted equity securities are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value. The entirety of any impairment on equity securities is recognized in earnings. Loans Loans are stated at their principal amount outstanding net of any deferred fees, premiums, discounts and costs and net of any partial charge-offs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual (i.e., interest income is no longer accrued) when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms when due. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Once the amount of impairment has been determined, the uncollectible portion is charged off. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on impaired loans unless the likelihood of further loss is remote or the impairment analysis yielded no impairment for the loan. The allowance for credit losses may include specific reserves related to impaired loans. Specific reserves remain until charge offs are made. Reserves for probable credit losses related to these loans are based on historical loss ratios and an analysis of qualitative factors and are included in the formula portion of the allowance for credit losses. See additional discussion below under the section, “Allowance for Credit Losses”. A loan is considered a troubled debt restructuring (“TDR”) if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the current underwriting guidelines of the Company’s banking subsidiary, the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. The Company does not participate in any specific government or Company sponsored loan modification programs. All TDR loan agreements are contracts negotiated with each of the borrowers. Allowance for Credit Losses The allowance for credit losses is maintained at a level believed adequate by management to absorb losses inherent in the loan portfolio as of the balance sheet date and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions and other observable data. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows or collateral value of impaired loans, estimated losses on pools of similar loans that are based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loans, or portions thereof, that are considered uncollectible are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. The criteria for charge offs are addressed in the Bank’s Collection and Workout Policy. Per the policy, the recognition of the loss of loans or portions of loans will occur when there is a reasonable probability of loss. When the amount of loss can be readily calculated, the loss will be recognized. In cases where a probable charge-off amount cannot be calculated, specific reserves will be maintained. A provision for credit losses is charged to income based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance for credit losses is an estimate of the losses that may be sustained in the loan portfolio. The allowance is based on two basic principles of accounting: (i) Topic 450, “ Contingencies ”, of the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”), which requires that losses be accrued when they are probable of occurring and estimable; and (ii) ASC Topic 310, “ Receivables ”, which requires that losses be accrued based on the differences between the loan balance and the value of collateral, present value of future cash flows or values that are observable in the secondary market. Management uses many factors to estimate the inherent loss that may be present in our loan portfolio, including economic conditions and trends, the value and adequacy of collateral, the volume and mix of the loan portfolio, and our internal loan processes. Actual losses could differ significantly from management’s estimates. In addition, GAAP itself may change from one previously acceptable method to another. Although the economics of transactions would be the same, the timing of events that would impact the transactions could change. Three basic components comprise our allowance for credit losses: (i) the specific allowance; (ii) the historical formula allowance; and (iii) the qualitative formula allowance. Each component is determined based on estimates that can and do change when the actual events occur. The specific allowance is established against impaired loans (i.e., nonaccrual loans and troubled debt restructurings (“TDRs”)) based on our assessment of the losses that may be associated with the individual loans. The specific allowance remains until charge-offs are made. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The historical formula allowance is used to estimate the loss on internally risk-rated loans, exclusive of those identified as impaired. Loans are grouped by type (construction, residential real estate, commercial real estate, commercial or consumer). Each loan type is assigned allowance factors based on management’s estimate of the risk, complexity and size of individual loans within a particular category using average historical charge-offs by segment over the last 16 quarters or 8 quarters. Loans identified as pass-watch, special mention, substandard, and doubtful are considered to have elevated credit risk. These loans are assigned higher allowance factors than favorably rated loans due to management’s concerns regarding collectability or management’s knowledge of particular elements regarding the borrower. The qualitative formula allowance captures losses that have impacted the portfolio but have yet to be recognized in either the specific or historical formula allowance. A pass-watch loan has adequate risk and may include loans which may have been upgraded from another higher risk category. A special mention loan has potential weaknesses that could result in a future loss to the Company if the weaknesses are realized. A substandard loan has certain deficiencies that could result in a future loss to the Company if these deficiencies are not corrected. A doubtful loan has enough risk that there is a high probability that the Company will sustain a loss. Management has significant discretion in making the adjustments inherent in the determination of the provision and allowance for credit losses, including in connection with the valuation of collateral, the estimation of a borrower’s prospects of repayment, and the establishment of the allowance factors in the formula allowance and unallocated allowance components of the allowance. The establishment of allowance factors is a continuing exercise, based on management’s ongoing assessment of the totality of all factors, including, but not limited to, delinquencies, loss history, trends in volume and terms of loans, effects of changes in lending policy, the experience and depth of management, national and local economic trends, concentrations of credit, the quality of the loan review system and the effect of external factors such as competition and regulatory requirements, and their impact on the portfolio. Allowance factors may change from period to period, resulting in an increase or decrease in the amount of the provision or allowance, based on the same volume and classification of loans. Changes in allowance factors will have a direct impact on the amount of the provision, and a corresponding effect on net income. Errors in management’s perception and assessment of these factors and their impact on the portfolio could result in the allowance not being adequate to cover losses in the portfolio, and may result in additional provisions or charge-offs. Premises and Equipment Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to 10 years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and 10 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the respective lease. Maintenance and repairs are charged to expense as incurred, while improvements which extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset. Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset. Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets are initially required to be recorded at fair value. Determining fair value is subjective, requiring the use of estimates, assumptions and management judgment. Goodwill is tested at least annually for impairment, usually during the fourth quarter, or on an interim basis if circumstances dictate. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. Impairment testing requires a qualitative assessment or that the fair value of each of the Company’s reporting units be compared to the carrying amount of its net assets, including goodwill. If the fair value of a reporting unit is less than book value, an expense may be required to write down the related goodwill to record an impairment loss. As of December 31, 2019, the Company had one reporting unit and operating segment (i.e., the Bank). During the fourth quarter of 2019 and 2018, goodwill and other intangible assets were subjected to the annual assessment for impairment. As a result of the assessment, it was determined that it was not more likely than not that the fair values of the Company’s reporting units were less than their carrying amounts so no impairment was recorded. Other Real Estate Owned Other real estate owned represents assets acquired in satisfaction of loans either by foreclosure or deeds taken in lieu of foreclosure. Properties acquired are recorded at fair value less estimated selling costs at the time of acquisition, establishing a new cost basis. Thereafter, costs incurred to operate or carry the properties as well as reductions in value as determined by periodic appraisals are charged to operating expense. Gains and losses resulting from the final disposition of the properties are included in noninterest expense. Borrowings Short-term and long-term borrowings are comprised primarily of FHLB borrowings. A portion of the Company’s short-term borrowings are repurchase agreements. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents. Income Taxes The Company and its subsidiary file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with required accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent on the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. The Company evaluates all positive and negative evidence before determining if a valuation allowance is deemed necessary regarding the realization of deferred tax assets. The Company recognizes accrued interest and penalties as a component of tax expense. Significant judgement is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The provision for income taxes includes the impact of reserve provisions and changes in the reserves that are considered appropriate as well as the related net interest and penalties. In addition, the Company is subject to the continuous examination of its income tax returns by the IRS and other tax authorities which may assert assessments against the Company. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and assessments to determine the adequacy of its provision for income taxes. The Company remains subject to examination for tax years ending on or after December 31, 2016. Basic and Diluted Earnings Per Common Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Included in this calculation due to dividend participation rights are restricted stock awards which have been granted. Diluted earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Cash and Cash Equivalents Cash and due from banks, interest-bearing deposits with other banks and federal funds sold are considered “cash and cash equivalents” for financial reporting purposes. Certain interest-bearing deposits with banks may exceed balances that are recoverable under Federal Deposit Insurance Corporation (“FDIC”) insurance. Balances in excess of FDIC insurance at December 31, 2019 were approximately $4.9 million. Share-Based Compensation The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. The fair value of restricted stock is determined based on the closing price of the Parent’s common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. The fair value of RSUs is initially valued based on the closing price of the Parent’s common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in each reporting period until settlement based on the quantity of awards for which it is probable that the performance conditions will be achieved. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent’s common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent’s common stock at the time of grant. Expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders’ equity. Fair Value The Company measures certain financial assets and liabilities at fair value, with the measurements made on a recurring or nonrecurring basis. Financial instruments measured at fair value on a recurring basis are investment securities available for sale. Impaired loans and other real estate owned are financial instruments measured at fair value on a nonrecurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In determining fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs, reducing subjectivity. See Note 21 for a further discussion of fair value. Advertising Costs Advertising costs are generally expensed as incurred. The Company incurred advertising costs for continuing operations of approximately $425 thousand for the year ended December 31, 2019 and $509 thousand for the year ended December 31, 2018. Comprehensive Income Unrealized gains and losses on available-for-sale securities and unrealized losses on securities transferred from AFS to HTM are the two components of accumulated other comprehensive income for the Company. There were no reclassifications from accumulated other comprehensive income (loss) in 2019 and 2018. Discontinued Operations During the year ended December 31, 2018, the Company completed the sale of its Insurance Agency, Avon Dixon (“Avon”), which represented the Company’s Insurance segment. In accordance with ASC 205‑20, the Company determined that the sale of Avon and the discontinued operation of the Company’s Premium Finance Company, Mubell Finance, LLC (“Mubell”), including assets and liabilities that will be sold or settled separately within one year met the criteria to be classified as a discontinued operation and the related operating results and financial condition have been presented as discontinued operations on the consolidated financial statements. See Note 2 for additional information. Unless otherwise indicated, information included in these notes to the consolidated financial statements is presented on a consolidated operations basis, which includes results from both continuing and discontinued operations, for all periods presented. Segment Reporting In connection with the sale of Avon and the discontinued operation of Mubell, which represented the Company’s Insurance segment, the Company reassessed its reportable operating segments. Based on this internal evaluation, the Company determined that its previously disclosed reportable segment, Insurance products and services, is no longer applicable. Accordingly, to better reflect how the Company is now managed and how information is reviewed by the chief operating decision maker, the Company’s chief executive officer, the Company determined that all services offered by the Company relate to Commercial Banking. As a result, the Company’s only reportable segment is Commercial Banking. Recent Accounting Standards ASU No. 2016-13 - In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . At this time, the Company has established a project management team which meets periodically to discuss and assign roles and responsibilities, key tasks to complete, and a general timeline to be followed for implementation. The team has been working with an advisory consultant and has purchased a vendor model for implementation. Historical data has been collected and uploaded to the new model and the team is in the process of finalizing the methodologies that will be utilized. The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. ASU No. 2017-04 – In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment

Sale of Subsidiary

Sale of Subsidiary	12 Months Ended
	Dec. 31, 2019
Sale of Subsidiary [Abstract]
Sale of Subsidiary	NOTE 2. SALE OF SUBSIDIARY Avon-Dixon Agency Sale On December 31, 2018, the Company completed the sale of specific assets and activities related to its Insurance Agency, Avon Dixon, LLC (“Avon”) to Alera Group Agency, LLC (“Alera”). Also, on this date the Company discontinued its operations of its Premium Finance Company, Mubell Finance, LLC (“Mubell”). Together, these companies are referred to as the “Insurance Subsidiaries”. The Insurance subsidiaries represented the Company’s insurance products and services segment, the activities of which related to originating, servicing and underwriting retail insurance policies. Assets sold to Alera included various intangible assets and a 40% interest in a segregated portfolio of Eastern Re. Ltd., a specialty reinsurance company. The Mubell Company, along with certain other assets and liabilities that were to be sold or settled separately within one year, were classified as discontinued operations in the accompanying Consolidated Balance Sheets and Consolidated Statements of Income. The specific assets acquired by Alera include, among other things, the insurance origination offices, insurance expirations, workforce and system procedures, trade names and goodwill. Alera has assumed certain obligations and liabilities of the Company under the acquired leases, and with respect to the employment of transferred employees. The Company received $25.2 million cash payment, upon the closing of the transaction. The following table summarizes the calculation of the net gain on disposal of discontinued operations: ($ in thousands) Year Ended December 31, 2018 Proceeds from the transaction $ 29,276 Compensation expense related to the transaction 2,588 Broker fees 935 Other transaction costs 594 Net cash proceeds 25,159 Net assets sold (12,423) Net gain on disposal $ 12,736 The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: Balance Sheets of Discontinued Operations December 31, December 31, ($ in thousands) 2019 2018 ASSETS Goodwill $ — $ 8 Other assets — 625 Assets of discontinued operations $ — $ 633 LIABILITIES Accrued expenses and other liabilities $ — $ 3,323 Liabilities of discontinued operations $ — $ 3,323 Statements of Income of Discontinued Operations For Year Ended December 31, ($ in thousands) 2019 2018 Noninterest income Net gain on disposal $ — $ 12,736 Insurance agency commissions — 9,006 All other income 15 335 Total noninterest income 15 22,077 Noninterest expense Salaries and wages 28 5,156 Employee benefits 7 1,173 Occupancy expense 14 428 Furniture and equipment 1 — Amortization of intangible assets — 47 Legal and professional fees 73 77 Other noninterest expenses 5 1,039 Total noninterest expense 128 7,920 (Loss) income from discontinued operations before income taxes (113) 14,157 Income tax (benefit) expense (27) 4,923 (Loss) income from discontinued operations $ (86) $ 9,234

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2019
Investment Securities [Abstract]
Investment Securities	NOTE 3. INVESTMENT SECURITIES The following table provides information on the amortized cost and estimated fair values of investment securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: December 31, 2019 U.S. Government agencies $ 23,854 $ 3 $ 31 $ 23,826 Mortgage-backed 98,638 574 247 98,965 Total $ 122,492 $ 577 $ 278 $ 122,791 December 31, 2018 U.S. Government agencies $ 34,285 $ 2 $ 651 $ 33,636 Mortgage-backed 124,162 115 3,481 120,796 Total $ 158,447 $ 117 $ 4,132 $ 154,432 The Company adopted ASU 2016‑01 effective January 1, 2018 and equity securities with an aggregate fair value of $1.3 million at December 31, 2019 and 2018 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $42 thousand for 2019 and $(5) thousand for 2018, respectively. Held-to-maturity securities: December 31, 2019 U.S. Government agencies $ 1,386 $ — $ 5 $ 1,381 States and political subdivisions 400 1 — 401 Other Debt securities 7,000 — 128 6,872 Total $ 8,786 $ 1 $ 133 $ 8,654 December 31, 2018 U.S. Government agencies $ 1,642 $ — $ 25 $ 1,617 States and political subdivisions 1,401 14 — 1,415 Other Debt securities 3,000 — 32 2,968 Total $ 6,043 $ 14 $ 57 $ 6,000 The following table provides information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2019 Available-for-sale securities: U.S. Government agencies $ 4,995 $ 5 $ 18,516 $ 26 $ 23,511 $ 31 Mortgage-backed 12,180 27 22,282 220 34,462 247 Total $ 17,175 $ 32 $ 40,798 $ 246 $ 57,973 $ 278 Held-to-maturity securities: U.S. Government agencies 1,381 5 — — 1,381 5 Other debt securities 3,905 95 2,967 33 6,872 128 Total $ 5,286 $ 100 $ 2,967 $ 33 $ 8,253 $ 133 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2018 Available-for-sale securities: U.S. Government agencies $ 1,079 $ 10 $ 32,362 $ 641 $ 33,441 $ 651 Mortgage-backed 13,981 261 99,904 3,220 113,885 3,481 Total $ 15,060 $ 271 $ 132,266 $ 3,861 $ 147,326 $ 4,132 Held-to-maturity securities: U.S. Government agencies — — 1,617 25 1,617 25 Other debt securities 2,968 32 — — 2,968 32 Total $ 2,968 $ 32 $ 1,617 $ 25 $ 4,585 $ 57 All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase and are not related to credit concerns. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were thirty-three available-for-sale securities in an unrealized loss position at December 31, 2019, of which twenty-six were mortgage-backed and seven were U.S. Government agencies. Three held-to-maturity securities were in an unrealized loss position at December 31, 2019, two corporate securities and one agency. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2019. Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 14,012 $ 14,005 $ — $ — Due after one year through five years 10,449 10,423 400 401 Due after five years through ten years 52,894 53,153 7,000 6,872 Due after ten years 45,137 45,210 1,386 1,381 Total $ 122,492 $ 122,791 $ 8,786 $ 8,654 The maturity dates for debt securities are determined using contractual maturity dates. The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio. December 31, 2019 December 31, 2018 Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Pledged available-for-sale securities $ 66,904 $ 67,142 $ 99,729 $ 97,170 There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2019 or 2018. Proceeds from sales of investment securities were $0 for the years ended December 31, 2019 and 2018, respectively. There were no gains on the sale or call of investment securities for the years ended December 31, 2019 and 2018. Gross losses on sales or calls were less than $1 thousand and $0 for the years ended December 31, 2019 and 2018, respectively.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2019
Loans and Allowance for Credit Losses [Abstract]
Loans and Allowance for Credit Losses	NOTE 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES The Company makes residential mortgage, commercial and consumer loans to customers primarily in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne’s County, Caroline County, Talbot County and Dorchester County in Maryland, Kent County, Delaware and in Accomack County, Virginia. The following table provides information about the principal classes of the loan portfolio at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Construction $ 99,829 $ 127,572 Residential real estate 442,506 429,560 Commercial real estate 586,562 523,427 Commercial 102,020 107,522 Consumer 17,737 7,274 Total loans 1,248,654 1,195,355 Allowance for credit losses (10,507) (10,343) Total loans, net $ 1,238,147 $ 1,185,012 In the normal course of banking business, loans are made to officers and directors and their affiliated interests. These loans are made on substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons who are not related to the Company and are not considered to involve more than the normal risk of collectability. As of December 31, 2019 and 2018, such loans outstanding, both direct and indirect (including guarantees), to directors, their associates and policy-making officers, totaled approximately $18.8 million and $13.2 million, respectively. During 2019 and 2018, loan additions were approximately $15.7 million and $1.9 million, respectively, and loan repayments were approximately $8.6 million and $2.6 million, respectively. Due to changes in the composition of related parties, $1.4 million of loans included in the total for the prior year end were no longer reported as related party loans at December 31, 2019. Net loan origination costs, included in balances above, totaled $1.8 million and $789 thousand as of December 31, 2019 and 2018, respectively. At December 31, 2019 and December 31, 2018 included in total loans were $79.2 million and $92.8 million in loans, respectively, acquired as part of the 2017 NWBI branch acquisition. These balances are presented net of the related discount which totaled $1.1 million at December 31, 2019 and $1.4 million at December 31, 2018. In the normal course of banking business, risks related to specific loan categories are as follows: Construction loans – Construction loans are offered primarily to builders and individuals to finance the construction of single family dwellings. In addition, the Bank periodically finances the construction of commercial projects. Credit risk factors include the borrower’s ability to successfully complete the construction on time and within budget, changing market conditions which could affect the value and marketability of projects, changes in the borrower’s ability or willingness to repay the loan and potentially rising interest rates which can impact both the borrower’s ability to repay and the collateral value. Residential real estate – Residential real estate loans are typically made to consumers and are secured by residential real estate. Credit risk arises from the borrower’s continuing financial stability, which can be adversely impacted by job loss, divorce, illness, or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Commercial real estate – Commercial real estate loans consist of both loans secured by owner occupied properties and non-owner occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. These loans are subject to adverse changes in the local economy and commercial real estate markets. Credit risk associated with owner occupied properties arises from the borrower’s financial stability and the ability of the borrower and the business to repay the loan. Non-owner occupied properties carry the risk of a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies which can adversely impact cash flow. Commercial – Commercial loans are secured or unsecured loans for business purposes. Loans are typically secured by accounts receivable, inventory, equipment and/or other assets of the business. Credit risk arises from the successful operation of the business which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Consumer – Consumer loans include home equity loans and lines, installment loans and personal lines of credit. Credit risk is similar to residential real estate loans above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2019 and 2018. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2019 Loans individually evaluated for impairment $ 41 $ 7,072 $ 12,006 $ 298 $ — $ 19,417 Loans collectively evaluated for impairment 99,788 435,434 574,556 101,722 17,737 1,229,237 Total loans $ 99,829 $ 442,506 $ 586,562 $ 102,020 $ 17,737 $ 1,248,654 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 395 $ 580 $ — $ — $ 975 Loans collectively evaluated for impairment 1,576 2,106 3,452 1,929 469 9,532 Total allowance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2018 Loans individually evaluated for impairment $ 2,893 $ 8,553 $ 13,532 $ 340 $ — $ 25,318 Loans collectively evaluated for impairment 124,679 421,007 509,895 107,182 7,274 1,170,037 Total loans $ 127,572 $ 429,560 $ 523,427 $ 107,522 $ 7,274 $ 1,195,355 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 320 $ 301 $ 104 $ 36 $ — $ 761 Loans collectively evaluated for impairment 2,342 2,052 2,973 1,913 302 9,582 Total allowance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 The allowance for loan losses was 0.84% of total loans at December 31, 2019, compared to 0.87% at December 31, 2018. The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2019 and 2018. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal. Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment December 31, 2019 Impaired nonaccrual loans: Construction $ — — — — — 1,076 — Residential real estate 2,660 678 1,797 215 2,052 2,691 — Commercial real estate 8,242 5,680 2,137 561 8,533 9,421 — Commercial 421 298 — — 301 313 — Consumer — — — — — — — Total $ 11,323 $ 6,656 $ 3,934 $ 776 $ 10,886 $ 13,501 $ — Impaired accruing TDRs: Construction $ 41 $ 41 $ — $ — $ 41 $ 46 $ 10 Residential real estate 4,041 2,583 1,458 180 4,052 4,157 171 Commercial real estate 3,419 2,748 671 19 3,438 3,496 125 Commercial — — — — — — — Consumer — — — — — — — Total $ 7,501 $ 5,372 $ 2,129 $ 199 $ 7,531 $ 7,699 $ 306 Other Impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 556 556 — — — — — Commercial real estate 770 770 — — — — — Commercial — — — — — — — Consumer — — — — — — — Total $ 1,326 $ 1,326 $ — $ — $ — $ — $ — Total impaired loans: Construction $ 41 $ 41 $ — $ — $ 41 $ 1,122 $ 10 Residential real estate 7,257 3,817 3,255 395 6,104 6,848 171 Commercial real estate 12,431 9,198 2,808 580 11,971 12,917 125 Commercial 421 298 — — 301 313 — Consumer — — — — — — — Total $ 20,150 $ 13,354 $ 6,063 $ 975 $ 18,417 $ 21,200 $ 306 Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2018 Impaired nonaccrual loans: Construction $ 3,219 $ 127 $ 2,715 $ 320 $ 2,932 $ 2,988 $ — Residential real estate 4,281 2,605 1,494 118 2,820 1,884 — Commercial real estate 10,029 9,307 67 67 4,283 2,149 — Commercial 445 — 340 36 329 336 — Consumer — — — — — — — Total $ 17,974 $ 12,039 $ 4,616 $ 541 $ 10,364 $ 7,357 $ — Impaired accruing TDRs: Construction $ 51 $ 51 $ — $ — $ 52 $ 866 $ 35 Residential real estate 4,454 1,440 3,014 183 4,585 4,606 125 Commercial real estate 4,158 1,286 2,872 37 4,164 4,416 149 Commercial — — — — — — — Consumer — — — — — — — Total $ 8,663 $ 2,777 $ 5,886 $ 220 $ 8,801 $ 9,888 $ 309 Total impaired loans: Construction $ 3,270 $ 178 $ 2,715 $ 320 $ 2,984 $ 3,854 $ 35 Residential real estate 8,735 4,045 4,508 301 7,405 6,490 125 Commercial real estate 14,187 10,593 2,939 104 8,447 6,565 149 Commercial 445 — 340 36 329 336 — Consumer — — — — — — — Total $ 26,637 $ 14,816 $ 10,502 $ 761 $ 19,165 $ 17,245 $ 309 The following tables provide a roll-forward for troubled debt restructurings as of and for the years ended December 31, 2019 and December 31, 2018. 1/1/2019 12/31/2019 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For year ended December 31, 2019 Accruing TDRs Construction $ 51 $ — $ (10) $ — $ — $ — $ 41 $ — Residential real estate 4,454 41 (101) — — (353) 4,041 180 Commercial real estate 4,158 — (739) — — — 3,419 19 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 8,663 $ 41 $ (850) $ — $ — $ (353) $ 7,501 $ 199 Nonaccrual TDRs Construction $ 2,798 $ — $ (1,402) $ (3) $ (1,393) $ — $ — $ — Residential real estate — — — — 1,393 — 1,393 113 Commercial real estate — — — — — — — — Commercial 320 — (21) — — — 299 — Consumer — — — — — — — — Total $ 3,118 $ — $ (1,423) $ (3) $ — $ — $ 1,692 $ 113 Total $ 11,781 $ 41 $ (2,273) $ (3) $ — $ (353) $ 9,193 $ 312 1/1/2018 12/31/2018 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For year ended December 31, 2018 Accruing TDRs Construction $ 3,972 $ — $ (229) $ (397) $ (695) $ (2,600) $ 51 $ — Residential real estate 4,536 — (85) — 541 (538) 4,454 183 Commercial real estate 4,818 — (441) — — (219) 4,158 37 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 13,326 $ — $ (755) $ (397) $ (154) $ (3,357) $ 8,663 $ 220 Nonaccrual TDRs Construction $ 2,878 $ — $ (163) $ — $ 83 $ — $ 2,798 $ 320 Residential real estate — — — (80) 80 — — — Commercial real estate 83 — — — (83) — — — Commercial 337 — (17) — — — 320 16 Consumer — — — — — — — — Total $ 3,298 $ — $ (180) $ (80) $ 80 $ — $ 3,118 $ 336 Total $ 16,624 $ — $ (935) $ (477) $ (74) $ (3,357) $ 11,781 $ 556 The following tables provide information on loans that were modified and considered TDRs during 2019 and 2018. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For year ended December 31, 2019 Construction — $ — $ — $ — Residential real estate 3 2,310 2,119 — Commercial real estate 1 2,152 1,531 — Commercial — — — — Consumer — — — — Total 4 $ 4,462 $ 3,650 $ — For year ended December 31, 2018 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ — During the year ended December 31, 2019, there was one new TDR and three previously recorded TDR’s which were modified. The following tables provide information on TDRs that defaulted during 2019 and 2018 within 12 months of their restructuring. Generally, a loan is considered in default when principal or interest is past due 90 days or more, the loan is placed on nonaccrual, charged-off, or there is a transfer to OREO or repossessed assets. Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For year ended December 31, 2019 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ — For year ended December 31, 2018 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ — Management uses risk ratings as part of its monitoring of the credit quality in the Company’s loan portfolio. Loans that are identified as special mention, substandard or doubtful are adversely rated. These loans and the pass/watch loans are assigned higher qualitative factors than favorably rated loans in the calculation of the formula portion of the allowance for credit losses. At December 31, 2019, there were no nonaccrual loans classified as special mention or doubtful and $10.6 million of nonaccrual loans were classified as substandard. Similarly, at December 31, 2018, there were no nonaccrual loans classified as special mention or doubtful and $16.7 million of nonaccrual loans were classified as substandard. The following tables provide information on loan risk ratings as of December 31, 2019 and 2018. Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2019 Construction $ 84,357 $ 13,068 $ 2,404 $ — $ — $ 99,829 Residential real estate 404,500 29,223 5,549 3,234 — 442,506 Commercial real estate 455,388 115,190 4,822 11,162 — 586,562 Commercial 80,816 20,130 746 328 — 102,020 Consumer 17,347 383 2 5 — 17,737 Total $ 1,042,408 $ 177,994 $ 13,523 $ 14,729 $ — $ 1,248,654 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2018 Construction $ 93,977 $ 30,735 $ — $ 2,860 $ — $ 127,572 Residential real estate 386,553 33,739 3,769 5,499 — 429,560 Commercial real estate 389,219 113,873 4,515 15,820 — 523,427 Commercial 90,777 15,727 642 376 — 107,522 Consumer 6,805 466 — 3 — 7,274 Total $ 967,331 $ 194,540 $ 8,926 $ 24,558 $ — $ 1,195,355 The following tables provide information on the aging of the loan portfolio as of December 31, 2019 and 2018. Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2019 Construction $ 99,234 $ 595 $ — $ — $ 595 $ — $ 99,829 Residential real estate 435,671 3,021 783 556 4,360 2,475 442,506 Commercial real estate 577,015 743 217 770 1,730 7,817 586,562 Commercial 101,476 246 — — 246 298 102,020 Consumer 17,680 57 — — 57 — 17,737 Total $ 1,231,076 $ 4,662 $ 1,000 $ 1,326 $ 6,988 $ 10,590 $ 1,248,654 Percent of total loans 98.6 % 0.4 % 0.1 % 0.1 % 0.6 % 0.8 % 100.0 % Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2018 Construction $ 124,535 $ 195 $ — $ — $ 195 $ 2,842 $ 127,572 Residential real estate 423,732 1,384 206 139 1,729 4,099 429,560 Commercial real estate 512,252 253 1,548 — 1,801 9,374 523,427 Commercial 107,089 83 10 — 93 340 107,522 Consumer 7,238 30 6 — 36 — 7,274 Total $ 1,174,846 $ 1,945 $ 1,770 $ 139 $ 3,854 $ 16,655 $ 1,195,355 Percent of total loans 98.3 % 0.2 % 0.1 % — % 0.3 % 1.4 % 100.0 % The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2019 and 2018. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total 2019 Allowance for credit losses: Beginning Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 Charge-offs (3) (646) — (411) (37) (1,097) Recoveries 18 27 206 306 4 561 Net charge-offs 15 (619) 206 (105) (33) (536) Provision (1,101) 767 749 85 200 700 Ending Balance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total 2018 Allowance for credit losses: Beginning Balance $ 2,460 $ 2,284 $ 2,594 $ 2,241 $ 202 $ 9,781 Charge-offs (397) (406) (240) (441) (27) (1,511) Recoveries 43 112 29 203 12 399 Net charge-offs (354) (294) (211) (238) (15) (1,112) Provision 556 363 694 (54) 115 1,674 Ending Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 Foreclosure Proceedings Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $23 thousand and $949 thousand as of December 31, 2019 and 2018. There were no residential real estate properties included in the balance of other real estate owned at December 31, 2019 and December 31, 2018. All accruing TDRs were in compliance with their modified terms. One loan was transferred to nonaccrual during 2018. Both performing and non-performing TDRs had no further commitments associated with them as of December 31, 2019 and December 31, 2018.

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Leases	NOTE 5. LEASES On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. As stated in the Company’s 2018 Form 10-K, the implementation of the new standard resulted in recognition of right-of-use assets and lease liabilities totaling $3.8 million at the date of adoption, which are primarily related to the Company’s lease of premises used in operations. Since adoption of the leasing standard in January 2019, the Company recognized additional right-of-use assets and lease liabilities of $1.4 million, primarily related to the lease of additional premises used in operations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably certain of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (Dollars in thousands) December 31, 2019 Lease liabilities $ 4,792 Right-of-use assets $ 4,771 Weighted average remaining lease term 11.76 years Weighted average discount rate 3.13 % For the year ended Lease cost (in thousands) December 31, 2019 Operating lease cost $ 620 Short-term lease cost — Total lease cost $ 620 Cash paid for amounts included in the measurement of lease liabilities $ 587 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: As of Lease payments due (in thousands) December 31, 2019 Twelve months ending December 31, 2020 $ 659 Twelve months ending December 31, 2021 627 Twelve months ending December 31, 2022 625 Twelve months ending December 31, 2023 589 Twelve months ending December 31, 2024 547 Thereafter 3,152 Total undiscounted cash flows $ 6,199 Discount 1,407 Lease liabilities $ 4,792

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2019
PREMISES AND EQUIPMENT [Abstract]
PREMISES AND EQUIPMENT [Abstract]	NOTE 6. PREMISES AND EQUIPMENT The following table provides information on premises and equipment for our continuing operations at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Land $ 8,509 $ 7,884 Buildings and land improvements 21,250 20,597 Furniture and equipment 7,354 6,387 37,113 34,868 Accumulated depreciation (13,292) (12,157) Total $ 23,821 $ 22,711 Depreciation expense of continuing operations totaled $1.1 million for 2019 and $1.0 million for 2018.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangibles [Abstract]
Goodwill and Other Intangibles	NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2019 and 2018. On December 31, 2018 the Company sold its insurance subsidiary, Avon Dixon, LLC and discontinued operations of its premium finance company, Mubell, LLC, which have been removed from the table. In addition, on May 19, 2017, the Bank acquired three branches located in Arbutus, Owings Mills and Elkridge, Maryland from NWBI. The purchase of these branches resulted in core deposit intangibles of $4.0 million and goodwill of $15.0 million. December 31, 2019 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,702) $ 2,252 5.7 Total other intangible assets $ 3,954 $ — $ (1,702) $ 2,252 December 31, 2018 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,097) $ 2,857 7.2 Total other intangible assets $ 3,954 $ — $ (1,097) $ 2,857 The aggregate amortization expense was $605 thousand and $866 thousand for the years ended December 31, 2019 and 2018, respectively. The following table provides information on current period and estimated future amortization expense for amortizable other intangible assets. (Dollars in thousands) Amortization 2020 $ 533 2021 461 2022 389 2023 317 2024 246 Thereafter 306 Total amortizing intangible assets $ 2,252

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2019
Other Assets [Abstract]
Other Assets	NOTE 8. OTHER ASSETS The Company had the following other assets at December 31, 2019 and 2018, excluding discontinued operations. (Dollars in thousands) 2019 2018 Accrued interest receivable $ 3,455 $ 3,345 Deferred income taxes 2,754 4,182 Prepaid expenses 1,157 1,067 Cash surrender value on life insurance 29,770 3,726 Income taxes receivable 175 — Other assets 3,261 5,358 Total $ 40,572 $ 17,678

Other Liabilities

Other Liabilities	12 Months Ended
	Dec. 31, 2019
Other Liabilities [Abstract]
Other Liabilities	NOTE 9. OTHER LIABILITIES The Company had the following other liabilities at December 31, 2019 and 2018, excluding discontinued operations. (Dollars in thousands) 2019 2018 Accrued interest payable $ 330 $ 604 Deferred compensation liability 1,401 1,040 Income taxes payable — 3,454 Other liabilities 2,350 3,317 Total $ 4,081 $ 8,415

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
DEPOSITS [Abstract]
DEPOSITS	NOTE 10. DEPOSITS The approximate amount of certificates of deposit of $250,000 or more was $38.9 million and $26.7 million at December 31, 2019 and 2018, respectively. The following table provides information on the approximate maturities of total time deposits at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Due in one year or less $ 126,055 $ 128,268 Due in one to three years 116,979 90,942 Due in three to five years 34,084 41,521 Total $ 277,118 $ 260,731 As of December 31, 2019 and 2018, deposits, both direct and indirect, to directors, their associates and policy-making officers, totaled approximately $5.5 million and $3.9 million, respectively. At December 31, 2019 we had no brokered deposits and $22.1 million at December 31, 2018.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2019
BORROWINGS [Abstract]
BORROWINGS	NOTE 11. BORROWINGS The Company may periodically borrow from a correspondent federal funds line of credit arrangement, under a secured reverse repurchase agreement, or from the Federal Home Loan Bank to meet short-term liquidity needs. The following table summarizes certain information on short-term borrowings for the years ended December 31, 2019 and 2018. 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Average for the Year Repurchase agreements $ 1,061 1.39 % $ 3,341 1.09 % FHLB Advances 17,378 2.68 73,970 2.16 Overnight Fed Funds purchased 14 2.86 — — At Year End Repurchase agreements $ 1,226 0.81 % $ 823 1.87 % FHLB Advances — — 59,989 2.63 Overnight Fed Funds purchased — — — — Securities sold under agreements to repurchase are securities sold to customers, at the customers’ request, under a “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated in the Company’s custodial accounts from other investment securities. The Bank had $15.0 million in federal funds lines of credit and a reverse repurchase agreement available on a short-term basis from correspondent banks at December 31, 2019 and 2018. In addition, the Bank had secured credit availability of approximately $270.1 million and $154.7 million from the Federal Home Loan Bank at December 31, 2019 and 2018, respectively. These lines of credit are paid for monthly on a fee basis of 0.09%. The Bank has pledged as collateral, under a blanket lien, all qualifying residential loans under borrowing agreements with the Federal Home Loan Bank. The Bank had no short-term borrowings from the Federal Home Loan Bank at December 31, 2019 and $60.0 million at December 31, 2018. At December 31, 2019, the Bank had $15.0 million of fixed rate long-term borrowings from the Federal Home Loan Bank, which carry an interest rate of 2.82% and mature in April 2020.

Benefit Plans

Benefit Plans	12 Months Ended
	Dec. 31, 2019
BENEFIT PLANS [Abstract]
BENEFIT PLANS	NOTE 12. BENEFIT PLANS 401(k) and Profit Sharing Plan The Company has a 401(k) and profit sharing plan covering substantially all full-time employees. The plan calls for matching contributions by the Company, and the Company makes discretionary contributions based on profits. Company contributions to this plan excluding discontinued operations and included in noninterest expense totaled $580 thousand and $532 thousand for 2019 and 2018, respectively.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2019
Stock-Based Compensation [Abstract]
Stock-Based Compensation	NOTE 13. STOCK-BASED COMPENSATION At the 2016 annual meeting, stockholders approved the Shore Bancshares, Inc. 2016 Stock and Incentive Plan (“2016 Equity Plan”), replacing the Shore Bancshares, Inc. 2006 Stock and Incentive Plan (“2006 Equity Plan”), which expired on that date. The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to three-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the “Long-term incentive plan” allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur. The 2016 Equity Plan originally reserved 750,000 shares of common stock for grant, and 636,465 shares remained available for grant at December 31, 2019. The following tables provide information on stock-based compensation expense for 2019 and 2018. December 31, (Dollars in thousands) 2019 2018 Stock-based compensation expense $ 149 $ 447 Excess tax benefits related to stock-based compensation 7 34 December 31, (Dollars in thousands) 2019 2018 Unrecognized stock-based compensation expense $ 35 $ 223 Weighted average period unrecognized expense is expected to be recognized 0.1 years 0.9 years The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Nonvested at beginning of period — $ — 15,913 $ 15.39 Granted 15,702 15.36 15,826 18.63 Vested — — (31,739) 17.05 Forfeited — — — — Nonvested at end of period 15,702 $ 15.36 — $ — The total fair value of restricted stock awards that vested was $0 thousand in 2019 and $585 thousand in 2018. Restricted stock units (RSUs) are similar to restricted stock, except the recipient does not receive the stock immediately, but instead receives it upon the terms and conditions of the Company’s long-term incentive plans which are subject to performance milestones achieved at the end of a three-year period. Each RSU cliff vests at the end of the three-year period and entitles the recipient to receive one share of common stock on a specified issuance date. The recipient does not have any stockholder rights, including voting rights, with respect to the shares underlying awarded RSUs until the recipient becomes the holder of those shares. In the second quarter of 2019, the Long-Term Incentive Plan culminating December 31, 2020 was terminated by the Board’s Compensation Committee and all outstanding RSUs were forfeited as presented in the table below. To replace this compensation incentive plan, the Compensation Committee elected to institute individual Supplemental Executive Retirement Plans (“SERPs”) which will be executed in the beginning of 2020, with the exception of three SERPs which began on July 19, 2019 for Lloyd L. Beatty, Jr., President and Chief Executive Officer, Edward C. Allen, Executive Vice President and Chief Financial Officer and Donna J. Stevens, Executive Vice President and Chief Operating Officer. These individuals also forfeited their RSUs in the LTI culminating December 31, 2019. During 2017, the Company entered into a long-term incentive program agreement with officers of the Company and its subsidiaries to award RSUs based on a performance metric to be achieved as of December 31, 2019. Assuming the performance metric is achieved, these awards will cliff vest on this date, in which the final number of common shares to be issued will be determined. The range of RSUs which could potentially be awarded at the end of the performance cycle is between 6,178 shares and 24,726 shares, assuming a certain performance metric is met. The table below presents management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle. The following table summarizes restricted stock units activity based on management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 38,562 $ 14.69 90,266 $ 12.08 Granted — — 11,194 17.36 Vested (15,577) 11.68 (40,423) 9.49 Forfeited (16,534) 16.78 (22,475) 16.55 Outstanding at end of period 6,451 $ 16.57 38,562 $ 14.69 The fair value of restricted stock units that vested during 2019 and 2018 was $241 thousand and $383 thousand, respectively. The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Exercise Shares Exercise Price Shares Prices Outstanding at beginning of period 27,249 $ 9.68 62,429 $ 8.47 Granted — — — — Exercised (15,578) 10.01 (35,180) 7.54 Expired/Cancelled — — — — Outstanding at end of period 11,671 $ 9.25 27,249 $ 9.68 Exercisable at end of period 11,671 $ 9.25 27,249 $ 9.68 There were no stock options granted during 2019 and 2018, respectively. The Company estimates the fair value of options using the Black-Scholes valuation model with weighted average assumptions for dividend yield, expected volatility, risk-free interest rate and expected lives (in years). The expected dividend yield is calculated by dividing the total expected annual dividend payout by the average stock price. The expected volatility is based on historical volatility of the underlying securities. The risk-free interest rate is based on the Federal Reserve Bank’s constant maturities daily interest rate in effect at grant date. The expected contract life of the options represents the period of time that the Company expects the awards to be outstanding based on historical experience with similar awards. At December 31, 2019, the aggregate intrinsic value of the options outstanding and exercisable under the 2016 Equity Plan was $95 thousand based on the $17.36 market value per share of Shore Bancshares, Inc.’s common stock at December 31, 2019. Similarly, the aggregate intrinsic value of the options outstanding and exercisable was $132 thousand at December 31, 2018. The intrinsic value of options exercised during 2019 was $72 thousand based on the $14.66 market value per share of the Company’s common stock at January 15, 2019. The intrinsic value of options exercised in 2018 was $376 thousand based on the $18.22 market value per share of the Company’s common stock at January 31, 2018. At December 31, 2019, the weighted average remaining contract life of options outstanding and exercisable was 4.8 years.

Deferred Compensation

Deferred Compensation	12 Months Ended
	Dec. 31, 2019
DEFERRED COMPENSATION [Abstract]
DEFERRED COMPENSATION	NOTE 14. DEFERRED COMPENSATION The Company has multiple deferred compensation agreements with current and former employees. The Executive Deferred Compensation Plan (the “Plan”) is reserved for members of management and highly compensated employees of the Company and the Bank. During 2019, the Plan was expanded to include additional officers who had not previously participated. The Plan permits a participant to elect, each year, to defer receipt of up to 100% of his or her salary and bonus to be earned in the following year. The Plan also permits the participant to defer the receipt of performance-based compensation not later than six months before the end of the period for which it is to be earned. The deferred amounts are credited to an account maintained on behalf of the participant and are invested at the discretion of each participant in certain deemed investment options selected by the Compensation Committee of the Board of the Company. The actual investments purchased are owned by the Company and held in a Rabbi Trust. The accounts of the Rabbi Trust are consolidated and the investments are included in other assets on the Consolidated Balance Sheets. The Company and the Bank may also make matching, mandatory and discretionary contributions for certain participants. A participant is fully vested at all times in the amounts that he or she elects to defer. Any contributions by the Company will vest over a five-year period. The following table provides information on Shore Bancshares, Inc.’s contributions and participant deferrals to the Plan for 2019 and 2018 and the related deferred compensation liability at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Deferred compensation contribution $ — $ — Elective deferrals 133 — Deferred compensation liability 363 268 During 2019, the Company introduced a new SERP plan for executive officers of the Company and the Bank. The related liability is unfunded; however, BOLI was purchased in order to offset the benefit costs. The following table provides information on the expense recognized during the year ended December 31, 2019, as well as the balance of the unfunded SERP liability and the cash surrender value of policies purchased to offset the SERP benefit cots as of December 31, 2019. The unfunded SERP liability and cash surrender value were included in other liabilities and other assets, respectively. (Dollars in thousands) 2019 Cash surrender value $ 26,721 Deferred compensation liability - SERP 347 SERP Expense 347 Lastly, in 2016, the Bank assumed agreements held by the former CNB Bank under which its former directors had elected to defer part of their fees and compensation while serving on the former Board of CNB. The amounts deferred were invested in insurance policies on the lives of the respective individuals. Amounts available under the policies are to be paid to the individuals as retirement benefits over future years. The following table includes information on the deferred compensation liability and cash surrender value at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Deferred compensation liability $ 691 $ 772 Cash surrender value 2,919 3,726

Other Expenses

Other Expenses	12 Months Ended
	Dec. 31, 2019
OTHER EXPENSES [Abstract]
OTHER EXPENSES	NOTE 15. OTHER EXPENSES The following table summarizes the Company’s other noninterest expenses for the years ended December 31, excluding discontinued operations: (Dollars in thousands) 2019 2018 Advertising and marketing $ 425 $ 509 Other customer expense 400 352 Other expense 2,220 1,888 Other loan expense 277 336 Software expense 1,001 934 Travel and entertainment expense 322 328 Trust professional fees 485 518 Total noninterest expense $ 5,130 $ 4,865

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 16. INCOME TAXES The following table provides information on components of income tax expense for continuing operations for each of the two years ended December 31. (Dollars in thousands) 2019 2018 Current tax expense: Federal $ 3,974 $ 4,110 State 1,395 1,167 5,369 5,277 Deferred income tax (benefit) expense: Federal 122 (120) State 119 223 241 103 Total income tax expense $ 5,610 $ 5,380 The U.S. Tax Cuts and Jobs Act (“Tax Act”) was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Among other things, the Tax Act reduced the U.S. statutory tax rate from 35% to 21% beginning in 2018. The following table provides a reconciliation of tax computed at the statutory federal tax rate to the actual tax expense for continuing operations for each of the two years ended December 31. 2019 2018 Tax at federal statutory rate 21 % 21 % Tax effect of: Tax-exempt income (1.0) (0.5) State income taxes, net of federal benefit 5.5 5.2 Other 0.1 (0.3) Actual income tax expense rate 25.6 % 25.4 % The following table provides information on significant components of the Company’s deferred tax assets and liabilities as of December 31. (Dollars in thousands) 2019 2018 Deferred tax assets: Allowance for credit losses $ 2,850 $ 2,797 Write-downs of other real estate owned 9 273 Nonaccrual loan interest 353 260 Unrealized losses on available-for-sale securities — 1,105 Unrealized losses on available-for-sale securities transferred to held to maturity 4 12 Other 735 605 Total deferred tax assets 3,951 5,052 Less valuation allowance (63) — Deferred tax assets net of valuation allowance 3,888 5,052 Deferred tax liabilities: Depreciation 198 238 Acquisition accounting adjustments 508 247 Deferred capital gain on branch sale 194 200 Unrealized gains on available-for-sale securities 74 — Other 160 185 Total deferred tax liabilities 1,134 870 Net deferred tax assets $ 2,754 $ 4,182

Earnings Per Common Share

Earnings Per Common Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 17. EARNINGS PER COMMON SHARE Basic earnings per common share is calculated by dividing net income available to (allocable to) common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated by dividing net income available to (allocable to) common stockholders by the weighted average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents (stock-based awards). The following table provides information relating to the calculation of earnings per common share. (In thousands, except per share data) 2019 2018 Net income from continuing operations $ 16,284 $ 15,763 Net (loss) income from discontinued operations (86) 9,234 Net Income $ 16,198 $ 24,997 Weighted average shares outstanding - Basic 12,725 12,739 Dilutive effect of common stock equivalents-options 5 12 Dilutive effect of common stock equivalents-restricted stock units — 2 Weighted average shares outstanding - Diluted 12,730 12,753 Basic earnings per common share Income from continuing operations $ 1.28 $ 1.24 (Loss) income from discontinued operations (0.01) 0.72 Net income $ 1.27 $ 1.96 Diluted earnings per common share Income from continuing operations $ 1.28 $ 1.24 (Loss) income from discontinued operations (0.01) 0.72 Net income $ 1.27 $ 1.96 For all periods presented, the calculations of diluted income per common share excluded no weighted average common stock equivalents because the effect of including them would have anti-dilutive.

Regulatory Capital Requirements

Regulatory Capital Requirements	12 Months Ended
	Dec. 31, 2019
REGULATORY CAPITAL REQUIREMENTS [Abstract]
REGULATORY CAPITAL REQUIREMENTS	NOTE 18. REGULATORY CAPITAL REQUIREMENTS Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Banks’ assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Banks’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Basel III The FRB and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s (“BCBS”) capital guidelines for U.S. banks. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Company. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets to 6.0%, require a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The final rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. At December 31, 2019 the capital conservation buffer was 2.50% and the Bank’s specific capital buffer was 5.87%. The phase-in period for the final rules began on January 1, 2015, with full compliance with all of the final rules’ requirements phased in over a multi-year schedule, ending on January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (leverage ratio). As of December 31, 2019, management believes that Shore United Bank met all capital adequacy requirements to which it was subject. As of December 31, 2019, the most recent notification from the Federal Reserve Bank categorized Shore Untied Bank, as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes would change the Bank’s classification. To be categorized as well capitalized, the Bank must maintain minimum common equity Tier 1, Tier 1 risk-based and total risk-based capital ratios, and Tier 1 leverage ratios, which are described below. The minimum ratios for capital adequacy purposes are 7.00%, 8.50%, 10.50% and 4.00% for the common equity Tier 1, Tier 1 risk-based capital, total risk-based capital and leverage ratios, respectively which include a capital conservation buffer of 2.50% respectively. To be categorized as well capitalized, a bank must maintain minimum ratios of 6.50%, 8.00%, 10.00% and 5.00% for its common equity Tier 1, Tier 1 risk-based capital, total risk-based capital and leverage ratios, respectively. The following tables present the capital amounts and ratios as of December 31, 2019 and 2018. Common Total Net Tier 1 Total Equity/ Risk- Risk- Adjusted Common Risk-Based Risk-Based Tier 1 (Dollars in thousands) Tier 1 Based Weighted Average Equity Capital Capital Leverage December 31, 2019 Capital Capital Assets Total Assets Tier 1 ratio Ratio Ratio Ratio Shore United Bank $ 163,206 $ 174,014 $ 1,254,980 $ 1,533,919 13.00 % 13.00 % 13.87 % 10.64 % Common Total Net Tier 1 Total Equity/ Risk- Risk- Adjusted Common Risk-Based Risk-Based Tier 1 (Dollars in thousands) Tier 1 Based Weighted Average Equity Capital Capital Leverage December 31, 2018 Capital Capital Assets Total Assets Tier 1 ratio Ratio Ratio Ratio Shore United Bank $ 140,265 $ 150,909 $ 1,185,050 $ 1,432,686 11.84 % 11.84 % 12.73 % 9.79 % In August of 2018 the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) directed the Federal Reserve Board (“FRB”) to revise the Small Bank Holding Company Policy Statement to raise the total consolidated asset limit in the Policy Statement from $1 billion to $3 billion. The Company was previously required to comply with the minimum capital requirements on a consolidated basis; however, the Company continues to meet the conditions of the revised policy statement and was, therefore, exempt from the consolidated capital requirements at December 31, 2019 and 2018. Bank and holding company regulations, as well as Maryland law, impose certain restrictions on dividend payments by the Bank, as well as restricting extensions of credit and transfers of assets between the Bank and the Company. At December 31, 2019, the Bank could pay dividends to the parent to the extent of its earnings so long as it maintained required capital ratios. The Bank paid $0 and $4.0 million of dividends to Shore Bancshares, Inc. for the years ended December 31, 2019 and 2018, respectively. Shore Bancshares, Inc. had no outstanding receivables from its subsidiary at December 31, 2019 or 2018.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	12 Months Ended
	Dec. 31, 2019
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	NOTE 19. ACCUMULATED OTHER COMPREHENSIVE INCOME The Company records unrealized holding gains (losses), net of tax, on investment securities available for sale as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The following table provides information on the changes in the components of accumulated other comprehensive income (loss) for 2019 and 2018. Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2018 $ (2,918) $ (32) $ (2,950) Other comprehensive income 3,136 21 3,157 Balance, December 31, 2019 $ 218 $ (11) $ 207 Balance, December 31, 2017 $ (1,255) $ (54) $ (1,309) Cumulative effect adjustment (ASU 2016-01) 6 — 6 Other comprehensive income (loss) (1,669) 22 (1,647) Balances, December 31, 2018 $ (2,918) $ (32) $ (2,950)

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements [Abstract]
Fair Value Measurements	NOTE 20. FAIR VALUE MEASUREMENTS Accounting guidance under GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This accounting guidance also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available for sale and equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, loans held for sale and other real estate owned (foreclosed assets). These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under fair value accounting guidance, assets and liabilities are grouped 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 their fair values. These hierarchy levels are: Level 1 inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Assets Measured at Fair Value on a Recurring Basis Investment Securities Available for Sale Fair value measurement for investment securities available for sale is based on quoted prices from an independent pricing service. The fair value measurements consider observable data that may include present value of future cash flows, prepayment assumptions, credit loss assumptions and other factors. The Company classifies its investments in U.S. Treasury securities, if any, as Level 1 in the fair value hierarchy, and it classifies its investments in U.S. Government agencies securities and mortgage-backed securities issued or guaranteed by U.S. Government sponsored entities as Level 2. Equity Securities Fair value measurement for equity securities is based on quoted market prices retrieved by the Company via on-line resources. Although these securities have readily available fair market values, the Company deems that they be classified as level 2 investments in the fair value hierarchy due to not being considered traded in a highly active market. The tables below present the recorded amount of assets measured at fair value on a recurring basis at December 31, 2019 and 2018. No assets were transferred from one hierarchy level to another during 2019 or 2018. Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019 Securities available for sale: U.S. Government agencies $ 23,826 $ — $ 23,826 $ — Mortgage-backed 98,965 — 98,965 — 122,791 — 122,791 — Equity 1,342 — 1,342 — Total $ 124,133 $ — $ 124,133 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018 Securities available for sale: U.S. Government agencies $ 33,636 $ — $ 33,636 $ — Mortgage-backed 120,796 — 120,796 — 154,432 — 154,432 — Equity 1,269 — 1,269 — Total $ 155,701 $ — $ 155,701 $ — Assets Measured at Fair Value on a Nonrecurring Basis Impaired Loans Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loan impairment is measured using the present value of expected cash flows, the loan’s observable market price or the fair value of the collateral (less selling costs) if the loans are collateral dependent and these are considered Level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable, discounted on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and the client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the factors identified above. Valuation techniques are consistent with those techniques applied in prior periods. Other Real Estate Owned (Foreclosed Assets) Foreclosed assets are adjusted for fair value upon transfer of loans to foreclosed assets. Subsequently, foreclosed assets are carried at the lower of carrying value and fair value. The estimated fair value for foreclosed assets included in Level 3 are determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to the initial recognition, the Company records the foreclosed asset as a non-recurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods. The following tables set forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis at December 31, 2019 and 2018, that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2019 Nonrecurring measurements: Impaired loans $ 2,489 Appraisal of collateral (1) Liquidation expense (2) 10% Impaired loans $ 2,599 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 74 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 31% Liquidation expense (2) 10% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2018 Nonrecurring measurements: Impaired loans $ 3,839 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense (2) 0% - 10% Impaired loans $ 5,902 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 1,222 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Fair Value of Financial Assets and Financial Liabilities The carrying amounts and estimated fair values of the Company’s financial instruments are presented in the following tables. Fair values for December 31, 2019 and December 31, 2018 were estimated using an exit price notion. December 31, 2019 December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 94,971 $ 94,971 $ 67,225 $ 67,225 Level 2 inputs Investment securities held to maturity $ 8,786 $ 8,654 $ 6,043 $ 6,000 Restricted securities 4,190 4,190 6,476 6,476 Cash surrender value on life insurance 29,770 29,770 3,726 3,726 Level 3 inputs Loans, net $ 1,238,147 $ 1,242,867 $ 1,185,012 $ 1,150,418 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 356,618 $ 356,618 $ 330,466 $ 330,466 Checking plus interest 302,227 302,227 239,809 239,809 Money market 262,050 262,050 232,613 232,613 Savings 143,322 143,322 148,723 148,723 Club 387 387 387 387 Brokered Deposits — — 22,084 22,075 Certificates of deposit, $100,000 or more 127,600 128,167 97,905 96,435 Other time 149,130 149,209 140,354 136,292 Short-term borrowings 1,226 1,226 60,812 60,812 Long-term borrowings 15,000 15,040 15,000 15,012

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	12 Months Ended
	Dec. 31, 2019
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]
Financial Instruments with Off-Balance Sheet Risk	NOTE 21. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, to meet the financing needs of its customers, the Bank is party to financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit and standby letters of credit. The Banks’ exposure to credit loss in the event of nonperformance by the other party to these financial instruments is represented by the contractual amount of the instruments. The Bank uses the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments. The Bank generally requires collateral or other security to support the financial instruments with credit risk. The amount of collateral or other security is determined based on management’s credit evaluation of the counterparty. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Letters of credit and other commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the letters of credit and commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The following table provides information on commitments outstanding as of December 31, 2019 and 2018. (Dollars in thousands) December 31, 2019 December 31, 2018 Commitments to extend credit $ 211,652 $ 210,463 Letters of credit 7,691 6,917 Total $ 219,343 $ 217,380 The Bank has established an reserve for off balance sheet credit exposures. The reserve is established as losses are estimated to have occurred through a loss for off balance sheet credit exposures charged to earnings. Losses are charged against the allowance when management believes the required funding of these exposures is uncollectible. While this evaluation is completed on a regular basis, it is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 22. RELATED PARTY TRANSACTIONS Shore Bancshares Inc. and its Bank subsidiary will periodically rent ballroom space and conference meeting space from the Tidewater Inn located in Easton, Maryland and the Chesapeake Beach Club and Resort located in Kent Island, Maryland to hold company meetings and events. A director of the board of Shore Bancshares Inc. holds a 61% interest in a limited liability company which owns the Tidewater Inn and 100% of the Chesapeake Beach Club and Resort. During 2019 and 2018, approximately $11 thousand and $27 thousand in expenses were paid for rental and catering services.

Contingencies

Contingencies	12 Months Ended
	Dec. 31, 2019
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 23. CONTINGENCIES In the normal course of business, Shore Bancshares, Inc. and its Bank subsidiary may become involved in litigation arising from banking, financial, and other activities. Management, after consultation with legal counsel, does not anticipate that the future liability, if any, arising out of current proceedings will have a material effect on the Company’s financial condition, operating results, or liquidity.

Parent Company Financial Inform

Parent Company Financial Information	12 Months Ended
	Dec. 31, 2019
PARENT COMPANY FINANCIAL INFORMATION [Abstract]
PARENT COMPANY FINANCIAL INFORMATION	NOTE 24. PARENT COMPANY FINANCIAL INFORMATION The following tables provide condensed financial information for Shore Bancshares, Inc. (Parent Company Only). Condensed Balance Sheets December 31, (Dollars in thousands) 2019 2018 Assets Cash $ 7,522 $ 26,583 Investment securities available for sale, at fair value — 918 Investment in subsidiaries 183,183 157,855 Premises and equipment, net — 3,772 Other assets 2,483 1,593 Total assets $ 193,188 $ 190,721 Liabilities Accrued interest payable $ — $ 1 Other liabilities 386 6,494 Short-term borrowings — 1,041 Total liabilities 386 7,536 Stockholders’ equity Common stock 125 127 Additional paid in capital 61,045 65,434 Retained earnings 131,425 120,574 Accumulated other comprehensive income (loss) 207 (2,950) Total stockholders’ equity 192,802 183,185 Total liabilities and stockholders’ equity $ 193,188 $ 190,721 Condensed Statements of Income For the Years Ended December 31, (Dollars in thousands) 2019 2018 Income Dividends from subsidiaries $ — $ 4,000 Management and other fees from subsidiaries 498 2,535 Gain on sale of subsidiary — 12,736 Other operating income 66 30 Total income 564 19,301 Expenses Interest expense 22 54 Salaries and employee benefits 111 1,626 Occupancy and equipment expense — 106 Other operating expenses 932 1,274 Total expenses 1,065 3,060 (Loss) income before income tax (benefit) expense and equity in undistributed net income of subsidiaries (501) 16,241 Income tax (benefit) expense (131) 4,298 (Loss) income before equity in undistributed net income of subsidiaries (370) 11,943 Equity in undistributed net income of subsidiaries 16,568 13,054 Net income $ 16,198 $ 24,997 Condensed Statements of Cash Flows For the Years Ended December 31, (Dollars in thousands) 2019 2018 Cash flows from operating activities: Net income $ 16,198 $ 24,997 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed net income of subsidiaries (16,568) (13,054) Depreciation and amortization — 469 Stock-based compensation expense 149 447 Gain on sale of subsidiary — (12,736) Net (increase) decrease in other assets (1,093) 1,001 Net (decrease) increase in other liabilities (6,109) 3,267 Net cash (used in) provided by operating activities (7,423) 4,391 Cash flows from investing activities: Proceeds from maturities and principal payments of investment securities available for sale — 187 Purchases of premises and equipment — (590) Purchase of bank owned life insurance (139) — Transfer to subsidiary (571) — Cash of subsidiary retained upon disposal — 726 Proceeds from sale of subsidiary — 25,159 Net cash (used in) provided by investing activities (710) 25,482 Cash flows from financing activities: (Decrease) increase in short-term borrowings (1,041) 375 Common stock dividends paid (5,347) (4,079) Retirement of common stock (4,452) — Repurchase of shares for tax withholding on exercised options and vested restricted stock (88) (269) Net cash used in financing activities (10,928) (3,973) Net (decrease) increase in cash and cash equivalents (19,061) 25,900 Cash and cash equivalents at beginning of year 26,583 683 Cash and cash equivalents at end of year $ 7,522 $ 26,583 Supplemental cash flow information: Transfer of building, available for sale securities and other assets to banking subsidiary $ 5,032 $ —

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2019
Revenue Recognition [Abstract]
Revenue Recognition	NOTE 25. REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014‑09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Trust and Investment Fee Income Trust and investment fee income are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Other Noninterest Income Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that rentals and renewals of safe deposit boxes will be recognized on a monthly basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for December 31, 2019 and 2018. December 31, (Dollars in thousands) 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 3,910 $ 3,879 Trust and investment fee income 1,522 1,557 Interchange income 2,678 2,441 Other noninterest income 1,354 990 Noninterest Income (in-scope of Topic 606) 9,464 8,867 Noninterest Income (out-of-scope of Topic 606) 556 146 Total Noninterest Income $ 10,020 $ 9,013 (1) Noninterest income associated with discontinued operations is reported in Note 2. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and December 31, 2018, the Company did not have any significant contract balances.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies [Abstract]
Nature of Operations	Nature of Operations The Company engages in the banking business through Shore United Bank, a Maryland commercial bank with trust powers. The Company’s primary source of revenue is interest earned on commercial, real estate and consumer loans made to customers located in Maryland, Delaware and the Eastern Shore of Virginia. The Company engages in the trust services business through the trust department at Shore United Bank under the trade name Wye Financial & Trust.
Use of Estimates	Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the determination of the allowance for loan losses, fair values initially assigned in an acquisition and subsequent evaluations of the related goodwill and intangible assets for impairment.
Investment Securities Available for Sale	Investment Securities Available for Sale Investment securities available for sale are stated at estimated fair value based on quoted prices. They represent those debt securities which management may sell as part of its asset/liability management strategy or which may be sold in response to changing interest rates, changes in prepayment risk or other similar factors. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Premiums and discounts are amortized or accreted into interest income using the interest method over the lives of the individual securities. Interest on investment securities is recognized in interest income on an accrual basis. Net unrealized holding gains and losses on these securities are reported as accumulated other comprehensive income, a separate component of stockholders’ equity, net of related income taxes. Declines in the fair value of individual available-for-sale securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value and are reflected in earnings as realized losses. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost.
Investment Securities Held to Maturity	Investment Securities Held to Maturity Investment securities held to maturity are stated at cost adjusted for amortization of premiums and accretion of discounts. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The Company intends and has the ability to hold such securities until maturity. Declines in the fair value of individual held-to-maturity securities below their cost that are other than temporary result in write-downs of the individual securities to their fair value. Factors affecting the determination of whether an other-than-temporary impairment has occurred include a downgrade of the security by a rating agency, a significant deterioration in the financial condition of the issuer, or a determination that management has the intent to sell the security or will be required to sell the security before recovery of its amortized cost.
Equity Securities	Equity Securities Equity securities with readily determinable fair values are carried at fair value, with changes in fair value reported in net income. Any equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Restricted equity securities are carried at cost and are periodically evaluated for impairment based on the ultimate recovery of par value. The entirety of any impairment on equity securities is recognized in earnings.
Loans	Loans Loans are stated at their principal amount outstanding net of any deferred fees, premiums, discounts and costs and net of any partial charge-offs. Interest income on loans is accrued at the contractual rate based on the principal amount outstanding. Fees charged and costs capitalized for originating loans are being amortized substantially on the interest method over the term of the loan. A loan is placed on nonaccrual (i.e., interest income is no longer accrued) when it is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more, unless the loan is well secured and in the process of collection. Any unpaid interest previously accrued on those loans is reversed from income. Interest payments received on nonaccrual loans are applied as a reduction of the loan principal balance unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered impaired if it is probable that the Company will not collect all principal and interest payments according to the loan’s contractual terms when due. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The impairment of a loan is measured at the present value of expected future cash flows using the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Generally, the Company measures impairment on such loans by reference to the fair value of the collateral. Once the amount of impairment has been determined, the uncollectible portion is charged off. Income on impaired loans is recognized on a cash basis, and payments are first applied against the principal balance outstanding (i.e., placing impaired loans on nonaccrual status). Generally, interest income is not recognized on impaired loans unless the likelihood of further loss is remote or the impairment analysis yielded no impairment for the loan. The allowance for credit losses may include specific reserves related to impaired loans. Specific reserves remain until charge offs are made. Reserves for probable credit losses related to these loans are based on historical loss ratios and an analysis of qualitative factors and are included in the formula portion of the allowance for credit losses. See additional discussion below under the section, “Allowance for Credit Losses”. A loan is considered a troubled debt restructuring (“TDR”) if a borrower is experiencing financial difficulties and a creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Loans are identified to be restructured when signs of impairment arise such as borrower interest rate reduction request, slowness to pay, or when an inability to repay becomes evident. The terms being offered are evaluated to determine if they are more liberal than those that would be indicated by policy or industry standards for similar, untroubled credits. In those situations where the terms or the interest rates are considered to be more favorable than industry standards or the current underwriting guidelines of the Company’s banking subsidiary, the loan is classified as a TDR. All loans designated as TDRs are considered impaired loans and may be on either accrual or nonaccrual status. In instances where the loan has been placed on nonaccrual status, six consecutive months of timely payments are required prior to returning the loan to accrual status. All loans classified as TDRs which are restructured and accrue interest under revised terms require a full and comprehensive review of the borrower’s financial condition, capacity for repayment, realistic assessment of collateral values, and the assessment of risk entered into any workout agreement. Current financial information on the borrower, guarantor, and underlying collateral is analyzed to determine if it supports the ultimate collection of principal and interest. For commercial loans, the cash flows are analyzed, both for the underlying project and globally. For consumer loans, updated salary, credit history and cash flow information is obtained. Current market conditions are also considered. Following a full analysis, the determination of the appropriate loan structure is made. The Company does not participate in any specific government or Company sponsored loan modification programs. All TDR loan agreements are contracts negotiated with each of the borrowers.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses is maintained at a level believed adequate by management to absorb losses inherent in the loan portfolio as of the balance sheet date and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions and other observable data. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows or collateral value of impaired loans, estimated losses on pools of similar loans that are based on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loans, or portions thereof, that are considered uncollectible are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. The criteria for charge offs are addressed in the Bank’s Collection and Workout Policy. Per the policy, the recognition of the loss of loans or portions of loans will occur when there is a reasonable probability of loss. When the amount of loss can be readily calculated, the loss will be recognized. In cases where a probable charge-off amount cannot be calculated, specific reserves will be maintained. A provision for credit losses is charged to income based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least quarterly and more often if deemed necessary. The allowance for credit losses is an estimate of the losses that may be sustained in the loan portfolio. The allowance is based on two basic principles of accounting: (i) Topic 450, “ Contingencies ”, of the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”), which requires that losses be accrued when they are probable of occurring and estimable; and (ii) ASC Topic 310, “ Receivables ”, which requires that losses be accrued based on the differences between the loan balance and the value of collateral, present value of future cash flows or values that are observable in the secondary market. Management uses many factors to estimate the inherent loss that may be present in our loan portfolio, including economic conditions and trends, the value and adequacy of collateral, the volume and mix of the loan portfolio, and our internal loan processes. Actual losses could differ significantly from management’s estimates. In addition, GAAP itself may change from one previously acceptable method to another. Although the economics of transactions would be the same, the timing of events that would impact the transactions could change. Three basic components comprise our allowance for credit losses: (i) the specific allowance; (ii) the historical formula allowance; and (iii) the qualitative formula allowance. Each component is determined based on estimates that can and do change when the actual events occur. The specific allowance is established against impaired loans (i.e., nonaccrual loans and troubled debt restructurings (“TDRs”)) based on our assessment of the losses that may be associated with the individual loans. The specific allowance remains until charge-offs are made. An impaired loan may show deficiencies in the borrower’s overall financial condition, payment history, support available from financial guarantors and/or the fair market value of collateral. The historical formula allowance is used to estimate the loss on internally risk-rated loans, exclusive of those identified as impaired. Loans are grouped by type (construction, residential real estate, commercial real estate, commercial or consumer). Each loan type is assigned allowance factors based on management’s estimate of the risk, complexity and size of individual loans within a particular category using average historical charge-offs by segment over the last 16 quarters or 8 quarters. Loans identified as pass-watch, special mention, substandard, and doubtful are considered to have elevated credit risk. These loans are assigned higher allowance factors than favorably rated loans due to management’s concerns regarding collectability or management’s knowledge of particular elements regarding the borrower. The qualitative formula allowance captures losses that have impacted the portfolio but have yet to be recognized in either the specific or historical formula allowance. A pass-watch loan has adequate risk and may include loans which may have been upgraded from another higher risk category. A special mention loan has potential weaknesses that could result in a future loss to the Company if the weaknesses are realized. A substandard loan has certain deficiencies that could result in a future loss to the Company if these deficiencies are not corrected. A doubtful loan has enough risk that there is a high probability that the Company will sustain a loss. Management has significant discretion in making the adjustments inherent in the determination of the provision and allowance for credit losses, including in connection with the valuation of collateral, the estimation of a borrower’s prospects of repayment, and the establishment of the allowance factors in the formula allowance and unallocated allowance components of the allowance. The establishment of allowance factors is a continuing exercise, based on management’s ongoing assessment of the totality of all factors, including, but not limited to, delinquencies, loss history, trends in volume and terms of loans, effects of changes in lending policy, the experience and depth of management, national and local economic trends, concentrations of credit, the quality of the loan review system and the effect of external factors such as competition and regulatory requirements, and their impact on the portfolio. Allowance factors may change from period to period, resulting in an increase or decrease in the amount of the provision or allowance, based on the same volume and classification of loans. Changes in allowance factors will have a direct impact on the amount of the provision, and a corresponding effect on net income. Errors in management’s perception and assessment of these factors and their impact on the portfolio could result in the allowance not being adequate to cover losses in the portfolio, and may result in additional provisions or charge-offs.
Premises and Equipment	Premises and Equipment Land is carried at cost and premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from three to 10 years for furniture, fixtures and equipment; three to five years for computer hardware and data handling equipment; and 10 to 40 years for buildings and building improvements. Land improvements are amortized over a period of 15 years and leasehold improvements are amortized over the term of the respective lease. Maintenance and repairs are charged to expense as incurred, while improvements which extend the useful life of an asset are capitalized and depreciated over the estimated remaining life of the asset. Long-lived assets are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Company recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset or liability. Goodwill and other intangible assets are initially required to be recorded at fair value. Determining fair value is subjective, requiring the use of estimates, assumptions and management judgment. Goodwill is tested at least annually for impairment, usually during the fourth quarter, or on an interim basis if circumstances dictate. Intangible assets that have finite lives are amortized over their estimated useful lives and also are subject to impairment testing. Impairment testing requires a qualitative assessment or that the fair value of each of the Company’s reporting units be compared to the carrying amount of its net assets, including goodwill. If the fair value of a reporting unit is less than book value, an expense may be required to write down the related goodwill to record an impairment loss. As of December 31, 2019, the Company had one reporting unit and operating segment (i.e., the Bank). During the fourth quarter of 2019 and 2018, goodwill and other intangible assets were subjected to the annual assessment for impairment. As a result of the assessment, it was determined that it was not more likely than not that the fair values of the Company’s reporting units were less than their carrying amounts so no impairment was recorded.
Other Real Estate Owned	Other Real Estate Owned Other real estate owned represents assets acquired in satisfaction of loans either by foreclosure or deeds taken in lieu of foreclosure. Properties acquired are recorded at fair value less estimated selling costs at the time of acquisition, establishing a new cost basis. Thereafter, costs incurred to operate or carry the properties as well as reductions in value as determined by periodic appraisals are charged to operating expense. Gains and losses resulting from the final disposition of the properties are included in noninterest expense.
Borrowings	Borrowings Short-term and long-term borrowings are comprised primarily of FHLB borrowings. A portion of the Company’s short-term borrowings are repurchase agreements. The repurchase agreements are securities sold to the Company’s customers, at the customers’ request, under a continuing “roll-over” contract that matures in one business day. The underlying securities sold are U.S. Government agency securities, which are segregated from the Company’s other investment securities by its safekeeping agents.
Income Taxes	Income Taxes The Company and its subsidiary file a consolidated federal income tax return. The Company accounts for income taxes using the liability method in accordance with required accounting guidance. Under this method, deferred tax assets and liabilities are determined by applying the applicable federal and state income tax rates to cumulative temporary differences. These temporary differences represent differences between financial statement carrying amounts and the corresponding tax bases of certain assets and liabilities. Deferred taxes result from such temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent on the generation of a sufficient level of future taxable income, recoverable taxes paid in prior years and tax planning strategies. The Company evaluates all positive and negative evidence before determining if a valuation allowance is deemed necessary regarding the realization of deferred tax assets. The Company recognizes accrued interest and penalties as a component of tax expense. Significant judgement is required in evaluating the Company’s uncertain tax positions and determining its provision for income taxes. The provision for income taxes includes the impact of reserve provisions and changes in the reserves that are considered appropriate as well as the related net interest and penalties. In addition, the Company is subject to the continuous examination of its income tax returns by the IRS and other tax authorities which may assert assessments against the Company. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and assessments to determine the adequacy of its provision for income taxes. The Company remains subject to examination for tax years ending on or after December 31, 2016.
Basic and Diluted Earnings Per Common Share	Basic and Diluted Earnings Per Common Share Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares outstanding and does not include the effect of any potentially dilutive common stock equivalents. Included in this calculation due to dividend participation rights are restricted stock awards which have been granted. Diluted earnings per share is calculated by dividing net income by the weighted-average number of shares outstanding, adjusted for the effect of any potentially dilutive common stock equivalents.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and due from banks, interest-bearing deposits with other banks and federal funds sold are considered “cash and cash equivalents” for financial reporting purposes. Certain interest-bearing deposits with banks may exceed balances that are recoverable under Federal Deposit Insurance Corporation (“FDIC”) insurance. Balances in excess of FDIC insurance at December 31, 2019 were approximately $4.9 million.
Share-Based Compensation	Share-Based Compensation The Company may grant share-based compensation to employees and non-employee directors in the form of restricted stock, restricted stock units and stock options. The fair value of restricted stock is determined based on the closing price of the Parent’s common stock on the date of grant. The Company recognizes compensation expense related to restricted stock on a straight-line basis over the vesting period for service-based awards, plus additional recognition of costs associated with accelerated vesting based on the projected attainment of Company performance measures. The fair value of RSUs is initially valued based on the closing price of the Parent’s common stock on the date of grant and is amortized in the statement of income over the vesting period. The RSUs are subsequently remeasured in each reporting period until settlement based on the quantity of awards for which it is probable that the performance conditions will be achieved. The fair value of stock options is estimated at the date of grant using the Black-Scholes option pricing model and related assumptions. The Company uses historical data to predict option exercise and employee termination behavior. Expected volatilities are based on the historical volatility of the Parent’s common stock. The expected term of options granted is derived from actual historical exercise activity and represents the period of time that options granted are expected to be outstanding. The risk-free rate is derived from the U.S. Treasury yield curve in effect at the time of grant based on the expected life of the option. The dividend yield is equal to the dividend yield of the Parent’s common stock at the time of grant. Expense related to stock options is recorded in the statements of income as a component of salaries and benefits for employees and as a component of other noninterest expense for non-employee directors, with a corresponding increase to capital surplus in shareholders’ equity.
Fair Value	Fair Value The Company measures certain financial assets and liabilities at fair value, with the measurements made on a recurring or nonrecurring basis. Financial instruments measured at fair value on a recurring basis are investment securities available for sale. Impaired loans and other real estate owned are financial instruments measured at fair value on a nonrecurring basis. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In determining fair value, the Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs, reducing subjectivity. See Note 21 for a further discussion of fair value.
Advertising Costs	Advertising Costs Advertising costs are generally expensed as incurred. The Company incurred advertising costs for continuing operations of approximately $425 thousand for the year ended December 31, 2019 and $509 thousand for the year ended December 31, 2018.
Comprehensive Income	Comprehensive Income Unrealized gains and losses on available-for-sale securities and unrealized losses on securities transferred from AFS to HTM are the two components of accumulated other comprehensive income for the Company. There were no reclassifications from accumulated other comprehensive income (loss) in 2019 and 2018.
Discontinued Operations	Discontinued Operations During the year ended December 31, 2018, the Company completed the sale of its Insurance Agency, Avon Dixon (“Avon”), which represented the Company’s Insurance segment. In accordance with ASC 205‑20, the Company determined that the sale of Avon and the discontinued operation of the Company’s Premium Finance Company, Mubell Finance, LLC (“Mubell”), including assets and liabilities that will be sold or settled separately within one year met the criteria to be classified as a discontinued operation and the related operating results and financial condition have been presented as discontinued operations on the consolidated financial statements. See Note 2 for additional information. Unless otherwise indicated, information included in these notes to the consolidated financial statements is presented on a consolidated operations basis, which includes results from both continuing and discontinued operations, for all periods presented.
Segment Reporting	Segment Reporting In connection with the sale of Avon and the discontinued operation of Mubell, which represented the Company’s Insurance segment, the Company reassessed its reportable operating segments. Based on this internal evaluation, the Company determined that its previously disclosed reportable segment, Insurance products and services, is no longer applicable. Accordingly, to better reflect how the Company is now managed and how information is reviewed by the chief operating decision maker, the Company’s chief executive officer, the Company determined that all services offered by the Company relate to Commercial Banking. As a result, the Company’s only reportable segment is Commercial Banking.
Recent Accounting Standards	Recent Accounting Standards ASU No. 2016-13 - In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. At the FASB’s October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022 . At this time, the Company has established a project management team which meets periodically to discuss and assign roles and responsibilities, key tasks to complete, and a general timeline to be followed for implementation. The team has been working with an advisory consultant and has purchased a vendor model for implementation. Historical data has been collected and uploaded to the new model and the team is in the process of finalizing the methodologies that will be utilized. The team is currently running a parallel simulation to its current incurred loss impairment model. The Company is continuing to evaluate the extent of the potential impact of this standard and continues to keep current on evolving interpretations and industry practices via webcasts, publications, conferences, and peer bank meetings. ASU No. 2017-04 – In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are U.S. Securities and Exchange Commission (SEC) filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The guidance is not expected to have a significant impact on the Company’s financial positions, results of operations or disclosures. ASU No. 2018-13 – In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2019-04 – In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various TRG Meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. ASU No. 2019-05 - In May 2019, the FASB issued ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.” The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. ASU No. 2019-11 - In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU addresses issues raised by stakeholders during the implementation of ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU 2016-13. The Company is currently assessing the impact that ASU 2019-11 will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes .” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 31, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2020-01 will have on its consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology.

Sale of Subsidiary (Tables)

Sale of Subsidiary (Tables)	12 Months Ended
	Dec. 31, 2019
Sale of Subsidiary [Abstract]
Net gain on disposal of discontinued operations	The following table summarizes the calculation of the net gain on disposal of discontinued operations: ($ in thousands) Year Ended December 31, 2018 Proceeds from the transaction $ 29,276 Compensation expense related to the transaction 2,588 Broker fees 935 Other transaction costs 594 Net cash proceeds 25,159 Net assets sold (12,423) Net gain on disposal $ 12,736
Financial information of discontinued operations	The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: Balance Sheets of Discontinued Operations December 31, December 31, ($ in thousands) 2019 2018 ASSETS Goodwill $ — $ 8 Other assets — 625 Assets of discontinued operations $ — $ 633 LIABILITIES Accrued expenses and other liabilities $ — $ 3,323 Liabilities of discontinued operations $ — $ 3,323 Statements of Income of Discontinued Operations For Year Ended December 31, ($ in thousands) 2019 2018 Noninterest income Net gain on disposal $ — $ 12,736 Insurance agency commissions — 9,006 All other income 15 335 Total noninterest income 15 22,077 Noninterest expense Salaries and wages 28 5,156 Employee benefits 7 1,173 Occupancy expense 14 428 Furniture and equipment 1 — Amortization of intangible assets — 47 Legal and professional fees 73 77 Other noninterest expenses 5 1,039 Total noninterest expense 128 7,920 (Loss) income from discontinued operations before income taxes (113) 14,157 Income tax (benefit) expense (27) 4,923 (Loss) income from discontinued operations $ (86) $ 9,234

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Investment Securities [Abstract]
Schedule of Available-for-Sale Securities Reconciliation	The following table provides information on the amortized cost and estimated fair values of investment securities. Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale securities: December 31, 2019 U.S. Government agencies $ 23,854 $ 3 $ 31 $ 23,826 Mortgage-backed 98,638 574 247 98,965 Total $ 122,492 $ 577 $ 278 $ 122,791 December 31, 2018 U.S. Government agencies $ 34,285 $ 2 $ 651 $ 33,636 Mortgage-backed 124,162 115 3,481 120,796 Total $ 158,447 $ 117 $ 4,132 $ 154,432
Schedule of Held-to-Maturity	The Company adopted ASU 2016‑01 effective January 1, 2018 and equity securities with an aggregate fair value of $1.3 million at December 31, 2019 and 2018 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $42 thousand for 2019 and $(5) thousand for 2018, respectively. Held-to-maturity securities: December 31, 2019 U.S. Government agencies $ 1,386 $ — $ 5 $ 1,381 States and political subdivisions 400 1 — 401 Other Debt securities 7,000 — 128 6,872 Total $ 8,786 $ 1 $ 133 $ 8,654 December 31, 2018 U.S. Government agencies $ 1,642 $ — $ 25 $ 1,617 States and political subdivisions 1,401 14 — 1,415 Other Debt securities 3,000 — 32 2,968 Total $ 6,043 $ 14 $ 57 $ 6,000
Available-For-Sale Securities and Held-to-Maturity, Continuous Unrealized Loss Position, Fair Value	The following table provides information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018. Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2019 Available-for-sale securities: U.S. Government agencies $ 4,995 $ 5 $ 18,516 $ 26 $ 23,511 $ 31 Mortgage-backed 12,180 27 22,282 220 34,462 247 Total $ 17,175 $ 32 $ 40,798 $ 246 $ 57,973 $ 278 Held-to-maturity securities: U.S. Government agencies 1,381 5 — — 1,381 5 Other debt securities 3,905 95 2,967 33 6,872 128 Total $ 5,286 $ 100 $ 2,967 $ 33 $ 8,253 $ 133 Less than More than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2018 Available-for-sale securities: U.S. Government agencies $ 1,079 $ 10 $ 32,362 $ 641 $ 33,441 $ 651 Mortgage-backed 13,981 261 99,904 3,220 113,885 3,481 Total $ 15,060 $ 271 $ 132,266 $ 3,861 $ 147,326 $ 4,132 Held-to-maturity securities: U.S. Government agencies — — 1,617 25 1,617 25 Other debt securities 2,968 32 — — 2,968 32 Total $ 2,968 $ 32 $ 1,617 $ 25 $ 4,585 $ 57
Schedule of Securities Debt Maturities	The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2019. Available for sale Held to maturity Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 14,012 $ 14,005 $ — $ — Due after one year through five years 10,449 10,423 400 401 Due after five years through ten years 52,894 53,153 7,000 6,872 Due after ten years 45,137 45,210 1,386 1,381 Total $ 122,492 $ 122,791 $ 8,786 $ 8,654
Amortized Cost and Estimated Fair Values of Securities	The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase. All pledged securities are in the available-for-sale investment portfolio. December 31, 2019 December 31, 2018 Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Pledged available-for-sale securities $ 66,904 $ 67,142 $ 99,729 $ 97,170

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses (Tables)	12 Months Ended
	Dec. 31, 2019
Receivables [Abstract]
Schedule of Financing Receivables	The following table provides information about the principal classes of the loan portfolio at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Construction $ 99,829 $ 127,572 Residential real estate 442,506 429,560 Commercial real estate 586,562 523,427 Commercial 102,020 107,522 Consumer 17,737 7,274 Total loans 1,248,654 1,195,355 Allowance for credit losses (10,507) (10,343) Total loans, net $ 1,238,147 $ 1,185,012
Allowance for Credit Losses on Financing Receivables	The following tables include impairment information relating to loans and the allowance for credit losses as of December 31, 2019 and 2018. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2019 Loans individually evaluated for impairment $ 41 $ 7,072 $ 12,006 $ 298 $ — $ 19,417 Loans collectively evaluated for impairment 99,788 435,434 574,556 101,722 17,737 1,229,237 Total loans $ 99,829 $ 442,506 $ 586,562 $ 102,020 $ 17,737 $ 1,248,654 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ — $ 395 $ 580 $ — $ — $ 975 Loans collectively evaluated for impairment 1,576 2,106 3,452 1,929 469 9,532 Total allowance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total December 31, 2018 Loans individually evaluated for impairment $ 2,893 $ 8,553 $ 13,532 $ 340 $ — $ 25,318 Loans collectively evaluated for impairment 124,679 421,007 509,895 107,182 7,274 1,170,037 Total loans $ 127,572 $ 429,560 $ 523,427 $ 107,522 $ 7,274 $ 1,195,355 Allowance for credit losses allocated to: Loans individually evaluated for impairment $ 320 $ 301 $ 104 $ 36 $ — $ 761 Loans collectively evaluated for impairment 2,342 2,052 2,973 1,913 302 9,582 Total allowance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343
Impaired Financing Receivables	The following tables provide information on impaired loans and any related allowance by loan class as of December 31, 2019 and 2018. The difference between the unpaid principal balance and the recorded investment is the amount of partial charge-offs that have been taken and interest paid on nonaccrual loans that has been applied to principal. Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded recorded (Dollars in thousands) balance allowance allowance allowance investment investment investment December 31, 2019 Impaired nonaccrual loans: Construction $ — — — — — 1,076 — Residential real estate 2,660 678 1,797 215 2,052 2,691 — Commercial real estate 8,242 5,680 2,137 561 8,533 9,421 — Commercial 421 298 — — 301 313 — Consumer — — — — — — — Total $ 11,323 $ 6,656 $ 3,934 $ 776 $ 10,886 $ 13,501 $ — Impaired accruing TDRs: Construction $ 41 $ 41 $ — $ — $ 41 $ 46 $ 10 Residential real estate 4,041 2,583 1,458 180 4,052 4,157 171 Commercial real estate 3,419 2,748 671 19 3,438 3,496 125 Commercial — — — — — — — Consumer — — — — — — — Total $ 7,501 $ 5,372 $ 2,129 $ 199 $ 7,531 $ 7,699 $ 306 Other Impaired accruing loans: Construction $ — $ — $ — $ — $ — $ — $ — Residential real estate 556 556 — — — — — Commercial real estate 770 770 — — — — — Commercial — — — — — — — Consumer — — — — — — — Total $ 1,326 $ 1,326 $ — $ — $ — $ — $ — Total impaired loans: Construction $ 41 $ 41 $ — $ — $ 41 $ 1,122 $ 10 Residential real estate 7,257 3,817 3,255 395 6,104 6,848 171 Commercial real estate 12,431 9,198 2,808 580 11,971 12,917 125 Commercial 421 298 — — 301 313 — Consumer — — — — — — — Total $ 20,150 $ 13,354 $ 6,063 $ 975 $ 18,417 $ 21,200 $ 306 Recorded Recorded Unpaid investment investment Quarter-to-date Year-to-date Interest principal with no with an Related average recorded average recorded income (Dollars in thousands) balance allowance allowance allowance investment investment recognized December 31, 2018 Impaired nonaccrual loans: Construction $ 3,219 $ 127 $ 2,715 $ 320 $ 2,932 $ 2,988 $ — Residential real estate 4,281 2,605 1,494 118 2,820 1,884 — Commercial real estate 10,029 9,307 67 67 4,283 2,149 — Commercial 445 — 340 36 329 336 — Consumer — — — — — — — Total $ 17,974 $ 12,039 $ 4,616 $ 541 $ 10,364 $ 7,357 $ — Impaired accruing TDRs: Construction $ 51 $ 51 $ — $ — $ 52 $ 866 $ 35 Residential real estate 4,454 1,440 3,014 183 4,585 4,606 125 Commercial real estate 4,158 1,286 2,872 37 4,164 4,416 149 Commercial — — — — — — — Consumer — — — — — — — Total $ 8,663 $ 2,777 $ 5,886 $ 220 $ 8,801 $ 9,888 $ 309 Total impaired loans: Construction $ 3,270 $ 178 $ 2,715 $ 320 $ 2,984 $ 3,854 $ 35 Residential real estate 8,735 4,045 4,508 301 7,405 6,490 125 Commercial real estate 14,187 10,593 2,939 104 8,447 6,565 149 Commercial 445 — 340 36 329 336 — Consumer — — — — — — — Total $ 26,637 $ 14,816 $ 10,502 $ 761 $ 19,165 $ 17,245 $ 309
Troubled Debt Restructurings on Financing Receivables	The following tables provide a roll-forward for troubled debt restructurings as of and for the years ended December 31, 2019 and December 31, 2018. 1/1/2019 12/31/2019 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For year ended December 31, 2019 Accruing TDRs Construction $ 51 $ — $ (10) $ — $ — $ — $ 41 $ — Residential real estate 4,454 41 (101) — — (353) 4,041 180 Commercial real estate 4,158 — (739) — — — 3,419 19 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 8,663 $ 41 $ (850) $ — $ — $ (353) $ 7,501 $ 199 Nonaccrual TDRs Construction $ 2,798 $ — $ (1,402) $ (3) $ (1,393) $ — $ — $ — Residential real estate — — — — 1,393 — 1,393 113 Commercial real estate — — — — — — — — Commercial 320 — (21) — — — 299 — Consumer — — — — — — — — Total $ 3,118 $ — $ (1,423) $ (3) $ — $ — $ 1,692 $ 113 Total $ 11,781 $ 41 $ (2,273) $ (3) $ — $ (353) $ 9,193 $ 312 1/1/2018 12/31/2018 TDR New Disbursements Charge- Reclassifications/ TDR Related (Dollars in thousands) Balance TDRs (Payments) offs Transfer In/(Out) Payoffs Balance Allowance For year ended December 31, 2018 Accruing TDRs Construction $ 3,972 $ — $ (229) $ (397) $ (695) $ (2,600) $ 51 $ — Residential real estate 4,536 — (85) — 541 (538) 4,454 183 Commercial real estate 4,818 — (441) — — (219) 4,158 37 Commercial — — — — — — — — Consumer — — — — — — — — Total $ 13,326 $ — $ (755) $ (397) $ (154) $ (3,357) $ 8,663 $ 220 Nonaccrual TDRs Construction $ 2,878 $ — $ (163) $ — $ 83 $ — $ 2,798 $ 320 Residential real estate — — — (80) 80 — — — Commercial real estate 83 — — — (83) — — — Commercial 337 — (17) — — — 320 16 Consumer — — — — — — — — Total $ 3,298 $ — $ (180) $ (80) $ 80 $ — $ 3,118 $ 336 Total $ 16,624 $ — $ (935) $ (477) $ (74) $ (3,357) $ 11,781 $ 556 The following tables provide information on loans that were modified and considered TDRs during 2019 and 2018. Premodification Postmodification outstanding outstanding Number of recorded recorded Related (Dollars in thousands) contracts investment investment allowance TDRs: For year ended December 31, 2019 Construction — $ — $ — $ — Residential real estate 3 2,310 2,119 — Commercial real estate 1 2,152 1,531 — Commercial — — — — Consumer — — — — Total 4 $ 4,462 $ 3,650 $ — For year ended December 31, 2018 Construction — $ — $ — $ — Residential real estate — — — — Commercial real estate — — — — Commercial — — — — Consumer — — — — Total — $ — $ — $ —
Troubled Debt Restructurings That Defaulted On Financing Receivables	During the year ended December 31, 2019, there was one new TDR and three previously recorded TDR’s which were modified. The following tables provide information on TDRs that defaulted during 2019 and 2018 within 12 months of their restructuring. Generally, a loan is considered in default when principal or interest is past due 90 days or more, the loan is placed on nonaccrual, charged-off, or there is a transfer to OREO or repossessed assets. Number of Recorded Related (Dollars in thousands) contracts investment allowance TDRs that subsequently defaulted: For year ended December 31, 2019 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ — For year ended December 31, 2018 Construction — $ — $ — Residential real estate — — — Commercial real estate — — — Commercial — — — Consumer — — — Total — $ — $ —
Financing Receivable Credit Quality Indicators	The following tables provide information on loan risk ratings as of December 31, 2019 and 2018. Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2019 Construction $ 84,357 $ 13,068 $ 2,404 $ — $ — $ 99,829 Residential real estate 404,500 29,223 5,549 3,234 — 442,506 Commercial real estate 455,388 115,190 4,822 11,162 — 586,562 Commercial 80,816 20,130 746 328 — 102,020 Consumer 17,347 383 2 5 — 17,737 Total $ 1,042,408 $ 177,994 $ 13,523 $ 14,729 $ — $ 1,248,654 Special (Dollars in thousands) Pass/Performing Pass/Watch Mention Substandard Doubtful Total December 31, 2018 Construction $ 93,977 $ 30,735 $ — $ 2,860 $ — $ 127,572 Residential real estate 386,553 33,739 3,769 5,499 — 429,560 Commercial real estate 389,219 113,873 4,515 15,820 — 523,427 Commercial 90,777 15,727 642 376 — 107,522 Consumer 6,805 466 — 3 — 7,274 Total $ 967,331 $ 194,540 $ 8,926 $ 24,558 $ — $ 1,195,355
Past Due Financing Receivables	The following tables provide information on the aging of the loan portfolio as of December 31, 2019 and 2018. Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2019 Construction $ 99,234 $ 595 $ — $ — $ 595 $ — $ 99,829 Residential real estate 435,671 3,021 783 556 4,360 2,475 442,506 Commercial real estate 577,015 743 217 770 1,730 7,817 586,562 Commercial 101,476 246 — — 246 298 102,020 Consumer 17,680 57 — — 57 — 17,737 Total $ 1,231,076 $ 4,662 $ 1,000 $ 1,326 $ 6,988 $ 10,590 $ 1,248,654 Percent of total loans 98.6 % 0.4 % 0.1 % 0.1 % 0.6 % 0.8 % 100.0 % Accruing 30‑59 days 60‑89 days Greater than Total (Dollars in thousands) Current past due past due 90 days past due Nonaccrual Total December 31, 2018 Construction $ 124,535 $ 195 $ — $ — $ 195 $ 2,842 $ 127,572 Residential real estate 423,732 1,384 206 139 1,729 4,099 429,560 Commercial real estate 512,252 253 1,548 — 1,801 9,374 523,427 Commercial 107,089 83 10 — 93 340 107,522 Consumer 7,238 30 6 — 36 — 7,274 Total $ 1,174,846 $ 1,945 $ 1,770 $ 139 $ 3,854 $ 16,655 $ 1,195,355 Percent of total loans 98.3 % 0.2 % 0.1 % — % 0.3 % 1.4 % 100.0 %
Consolidated Allowance for Credit Losses on Financing Receivables	The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for 2019 and 2018. Allocation of a portion of the allowance to one loan class does not preclude its availability to absorb losses in other loan classes. Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total 2019 Allowance for credit losses: Beginning Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343 Charge-offs (3) (646) — (411) (37) (1,097) Recoveries 18 27 206 306 4 561 Net charge-offs 15 (619) 206 (105) (33) (536) Provision (1,101) 767 749 85 200 700 Ending Balance $ 1,576 $ 2,501 $ 4,032 $ 1,929 $ 469 $ 10,507 Residential Commercial (Dollars in thousands) Construction real estate real estate Commercial Consumer Total 2018 Allowance for credit losses: Beginning Balance $ 2,460 $ 2,284 $ 2,594 $ 2,241 $ 202 $ 9,781 Charge-offs (397) (406) (240) (441) (27) (1,511) Recoveries 43 112 29 203 12 399 Net charge-offs (354) (294) (211) (238) (15) (1,112) Provision 556 363 694 (54) 115 1,674 Ending Balance $ 2,662 $ 2,353 $ 3,077 $ 1,949 $ 302 $ 10,343

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Information about leases	(Dollars in thousands) December 31, 2019 Lease liabilities $ 4,792 Right-of-use assets $ 4,771 Weighted average remaining lease term 11.76 years Weighted average discount rate 3.13 % For the year ended Lease cost (in thousands) December 31, 2019 Operating lease cost $ 620 Short-term lease cost — Total lease cost $ 620 Cash paid for amounts included in the measurement of lease liabilities $ 587
Operating lease liabilities	As of Lease payments due (in thousands) December 31, 2019 Twelve months ending December 31, 2020 $ 659 Twelve months ending December 31, 2021 627 Twelve months ending December 31, 2022 625 Twelve months ending December 31, 2023 589 Twelve months ending December 31, 2024 547 Thereafter 3,152 Total undiscounted cash flows $ 6,199 Discount 1,407 Lease liabilities $ 4,792

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
PREMISES AND EQUIPMENT [Abstract]
Schedule of Property Plant and Equipment	The following table provides information on premises and equipment for our continuing operations at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Land $ 8,509 $ 7,884 Buildings and land improvements 21,250 20,597 Furniture and equipment 7,354 6,387 37,113 34,868 Accumulated depreciation (13,292) (12,157) Total $ 23,821 $ 22,711

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangibles [Abstract]
Schedule of Components of Goodwill and Other Acquired Intangible Assets	The following table provides information on the significant components of goodwill and other acquired intangible assets at December 31, 2019 and 2018. On December 31, 2018 the Company sold its insurance subsidiary, Avon Dixon, LLC and discontinued operations of its premium finance company, Mubell, LLC, which have been removed from the table. In addition, on May 19, 2017, the Bank acquired three branches located in Arbutus, Owings Mills and Elkridge, Maryland from NWBI. The purchase of these branches resulted in core deposit intangibles of $4.0 million and goodwill of $15.0 million. December 31, 2019 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,702) $ 2,252 5.7 Total other intangible assets $ 3,954 $ — $ (1,702) $ 2,252 December 31, 2018 Weighted Gross Accumulated Net Average Carrying Impairment Accumulated Carrying Remaining Life (Dollars in thousands) Amount Charges Amortization Amount (in years) Goodwill $ 19,728 $ (1,543) $ (667) $ 17,518 — Other intangible assets Amortizable Core deposit intangible $ 3,954 $ — $ (1,097) $ 2,857 7.2 Total other intangible assets $ 3,954 $ — $ (1,097) $ 2,857
Future Amortization Expense for Amortizable Other Intangible Assets	The following table provides information on current period and estimated future amortization expense for amortizable other intangible assets. (Dollars in thousands) Amortization 2020 $ 533 2021 461 2022 389 2023 317 2024 246 Thereafter 306 Total amortizing intangible assets $ 2,252

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Other Assets [Abstract]
Schedule of Other Assets	The Company had the following other assets at December 31, 2019 and 2018, excluding discontinued operations. (Dollars in thousands) 2019 2018 Accrued interest receivable $ 3,455 $ 3,345 Deferred income taxes 2,754 4,182 Prepaid expenses 1,157 1,067 Cash surrender value on life insurance 29,770 3,726 Income taxes receivable 175 — Other assets 3,261 5,358 Total $ 40,572 $ 17,678

Other Liabilities (Tables)

Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Other Liabilities [Abstract]
Schedule of Other Liabilities	The Company had the following other liabilities at December 31, 2019 and 2018, excluding discontinued operations. (Dollars in thousands) 2019 2018 Accrued interest payable $ 330 $ 604 Deferred compensation liability 1,401 1,040 Income taxes payable — 3,454 Other liabilities 2,350 3,317 Total $ 4,081 $ 8,415

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
DEPOSITS [Abstract]
Schedule of Deposits	The following table provides information on the approximate maturities of total time deposits at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Due in one year or less $ 126,055 $ 128,268 Due in one to three years 116,979 90,942 Due in three to five years 34,084 41,521 Total $ 277,118 $ 260,731

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
BORROWINGS [Abstract]
Schedule of Short-term Borrowings	The following table summarizes certain information on short-term borrowings for the years ended December 31, 2019 and 2018. 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Average for the Year Repurchase agreements $ 1,061 1.39 % $ 3,341 1.09 % FHLB Advances 17,378 2.68 73,970 2.16 Overnight Fed Funds purchased 14 2.86 — — At Year End Repurchase agreements $ 1,226 0.81 % $ 823 1.87 % FHLB Advances — — 59,989 2.63 Overnight Fed Funds purchased — — — —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of Stock-Based Compensation	The following tables provide information on stock-based compensation expense for 2019 and 2018. December 31, (Dollars in thousands) 2019 2018 Stock-based compensation expense $ 149 $ 447 Excess tax benefits related to stock-based compensation 7 34 December 31, (Dollars in thousands) 2019 2018 Unrecognized stock-based compensation expense $ 35 $ 223 Weighted average period unrecognized expense is expected to be recognized 0.1 years 0.9 years
Schedule of Share-based Compensation, Stock Options Activity	The following table summarizes stock option activity for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Exercise Shares Exercise Price Shares Prices Outstanding at beginning of period 27,249 $ 9.68 62,429 $ 8.47 Granted — — — — Exercised (15,578) 10.01 (35,180) 7.54 Expired/Cancelled — — — — Outstanding at end of period 11,671 $ 9.25 27,249 $ 9.68 Exercisable at end of period 11,671 $ 9.25 27,249 $ 9.68
2016 and 2006 Plan [Member] | Restricted Stock Units [Member]
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity	The following table summarizes restricted stock units activity based on management’s evaluation of the probable number of common stock awards to be issued at the end of the performance cycle for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at beginning of period 38,562 $ 14.69 90,266 $ 12.08 Granted — — 11,194 17.36 Vested (15,577) 11.68 (40,423) 9.49 Forfeited (16,534) 16.78 (22,475) 16.55 Outstanding at end of period 6,451 $ 16.57 38,562 $ 14.69
Equity Plan 2016 [Member]
Schedule of Share-based Compensation, Restricted Stock and Units Award Activity	The following table summarizes restricted stock award activity for the Company under the 2016 Equity Plan for the two years ended December 31, 2019. Year Ended December 31, 2019 Year Ended December 31, 2018 Weighted Average Weighted Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Nonvested at beginning of period — $ — 15,913 $ 15.39 Granted 15,702 15.36 15,826 18.63 Vested — — (31,739) 17.05 Forfeited — — — — Nonvested at end of period 15,702 $ 15.36 — $ —

Deferred Compensation (Tables)

Deferred Compensation (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of Deferred Compensation Arrangement	The following table provides information on Shore Bancshares, Inc.’s contributions and participant deferrals to the Plan for 2019 and 2018 and the related deferred compensation liability at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Deferred compensation contribution $ — $ — Elective deferrals 133 — Deferred compensation liability 363 268
SERP Plan
Schedule of Deferred Compensation Arrangement in Other Assets and Other Liabilities	During 2019, the Company introduced a new SERP plan for executive officers of the Company and the Bank. The related liability is unfunded; however, BOLI was purchased in order to offset the benefit costs. The following table provides information on the expense recognized during the year ended December 31, 2019, as well as the balance of the unfunded SERP liability and the cash surrender value of policies purchased to offset the SERP benefit cots as of December 31, 2019. The unfunded SERP liability and cash surrender value were included in other liabilities and other assets, respectively. (Dollars in thousands) 2019 Cash surrender value $ 26,721 Deferred compensation liability - SERP 347 SERP Expense 347
Former Directors from CNB
Schedule of Deferred Compensation Arrangement in Other Assets and Other Liabilities	The following table includes information on the deferred compensation liability and cash surrender value at December 31, 2019 and 2018. (Dollars in thousands) 2019 2018 Deferred compensation liability $ 691 $ 772 Cash surrender value 2,919 3,726

Other Expenses (Tables)

Other Expenses (Tables)	12 Months Ended
	Dec. 31, 2019
OTHER EXPENSES [Abstract]
Schedule of Other Noninterest Expenses	The following table summarizes the Company’s other noninterest expenses for the years ended December 31, excluding discontinued operations: (Dollars in thousands) 2019 2018 Advertising and marketing $ 425 $ 509 Other customer expense 400 352 Other expense 2,220 1,888 Other loan expense 277 336 Software expense 1,001 934 Travel and entertainment expense 322 328 Trust professional fees 485 518 Total noninterest expense $ 5,130 $ 4,865

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
INCOME TAXES [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	(Dollars in thousands) 2019 2018 Current tax expense: Federal $ 3,974 $ 4,110 State 1,395 1,167 5,369 5,277 Deferred income tax (benefit) expense: Federal 122 (120) State 119 223 241 103 Total income tax expense $ 5,610 $ 5,380
Schedule of Effective Income Tax Rate Reconciliation	2019 2018 Tax at federal statutory rate 21 % 21 % Tax effect of: Tax-exempt income (1.0) (0.5) State income taxes, net of federal benefit 5.5 5.2 Other 0.1 (0.3) Actual income tax expense rate 25.6 % 25.4 %
Schedule of Deferred Tax Assets and Liabilities	(Dollars in thousands) 2019 2018 Deferred tax assets: Allowance for credit losses $ 2,850 $ 2,797 Write-downs of other real estate owned 9 273 Nonaccrual loan interest 353 260 Unrealized losses on available-for-sale securities — 1,105 Unrealized losses on available-for-sale securities transferred to held to maturity 4 12 Other 735 605 Total deferred tax assets 3,951 5,052 Less valuation allowance (63) — Deferred tax assets net of valuation allowance 3,888 5,052 Deferred tax liabilities: Depreciation 198 238 Acquisition accounting adjustments 508 247 Deferred capital gain on branch sale 194 200 Unrealized gains on available-for-sale securities 74 — Other 160 185 Total deferred tax liabilities 1,134 870 Net deferred tax assets $ 2,754 $ 4,182

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	(In thousands, except per share data) 2019 2018 Net income from continuing operations $ 16,284 $ 15,763 Net (loss) income from discontinued operations (86) 9,234 Net Income $ 16,198 $ 24,997 Weighted average shares outstanding - Basic 12,725 12,739 Dilutive effect of common stock equivalents-options 5 12 Dilutive effect of common stock equivalents-restricted stock units — 2 Weighted average shares outstanding - Diluted 12,730 12,753 Basic earnings per common share Income from continuing operations $ 1.28 $ 1.24 (Loss) income from discontinued operations (0.01) 0.72 Net income $ 1.27 $ 1.96 Diluted earnings per common share Income from continuing operations $ 1.28 $ 1.24 (Loss) income from discontinued operations (0.01) 0.72 Net income $ 1.27 $ 1.96

Regulatory Capital Requiremen_2

Regulatory Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2019
REGULATORY CAPITAL REQUIREMENTS [Abstract]
Schedule of Capital Amounts And Ratios	The following tables present the capital amounts and ratios as of December 31, 2019 and 2018. Common Total Net Tier 1 Total Equity/ Risk- Risk- Adjusted Common Risk-Based Risk-Based Tier 1 (Dollars in thousands) Tier 1 Based Weighted Average Equity Capital Capital Leverage December 31, 2019 Capital Capital Assets Total Assets Tier 1 ratio Ratio Ratio Ratio Shore United Bank $ 163,206 $ 174,014 $ 1,254,980 $ 1,533,919 13.00 % 13.00 % 13.87 % 10.64 % Common Total Net Tier 1 Total Equity/ Risk- Risk- Adjusted Common Risk-Based Risk-Based Tier 1 (Dollars in thousands) Tier 1 Based Weighted Average Equity Capital Capital Leverage December 31, 2018 Capital Capital Assets Total Assets Tier 1 ratio Ratio Ratio Ratio Shore United Bank $ 140,265 $ 150,909 $ 1,185,050 $ 1,432,686 11.84 % 11.84 % 12.73 % 9.79 %

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	12 Months Ended
	Dec. 31, 2019
Accumulated Other Comprehensive Income [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Unrealized gains (losses) on securities Unrealized transferred from Accumulated gains (losses) on Available-for-sale other available for sale to comprehensive (Dollars in thousands) securities Held-to-maturity income (loss) Balance, December 31, 2018 $ (2,918) $ (32) $ (2,950) Other comprehensive income 3,136 21 3,157 Balance, December 31, 2019 $ 218 $ (11) $ 207 Balance, December 31, 2017 $ (1,255) $ (54) $ (1,309) Cumulative effect adjustment (ASU 2016-01) 6 — 6 Other comprehensive income (loss) (1,669) 22 (1,647) Balances, December 31, 2018 $ (2,918) $ (32) $ (2,950)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements [Abstract]
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis	Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2019 Securities available for sale: U.S. Government agencies $ 23,826 $ — $ 23,826 $ — Mortgage-backed 98,965 — 98,965 — 122,791 — 122,791 — Equity 1,342 — 1,342 — Total $ 124,133 $ — $ 124,133 $ — Significant Other Significant Quoted Observable Unobservable Prices Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018 Securities available for sale: U.S. Government agencies $ 33,636 $ — $ 33,636 $ — Mortgage-backed 120,796 — 120,796 — 154,432 — 154,432 — Equity 1,269 — 1,269 — Total $ 155,701 $ — $ 155,701 $ —
Fair Value of Assets Measured on Nonrecurring Basis	Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2019 Nonrecurring measurements: Impaired loans $ 2,489 Appraisal of collateral (1) Liquidation expense (2) 10% Impaired loans $ 2,599 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 74 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 31% Liquidation expense (2) 10% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range December 31, 2018 Nonrecurring measurements: Impaired loans $ 3,839 Appraisal of collateral (1) Appraisal adjustments (2) 0% - 17% Liquidation expense (2) 0% - 10% Impaired loans $ 5,902 Discounted cash flow analysis (1) Discount rate 4% - 7.25% Other real estate owned $ 1,222 Appraisal of collateral (1) Appraisal adjustments (2) 15% - 40% Liquidation expense (2) 5% - 10% (1) Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), which generally include various level III inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Schedule of Estimated Fair Values of Financial Assets and Liabilities	December 31, 2019 December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair (Dollars in thousands) Amount Value Amount Value Financial assets Level 1 inputs Cash and cash equivalents $ 94,971 $ 94,971 $ 67,225 $ 67,225 Level 2 inputs Investment securities held to maturity $ 8,786 $ 8,654 $ 6,043 $ 6,000 Restricted securities 4,190 4,190 6,476 6,476 Cash surrender value on life insurance 29,770 29,770 3,726 3,726 Level 3 inputs Loans, net $ 1,238,147 $ 1,242,867 $ 1,185,012 $ 1,150,418 Financial liabilities Level 2 inputs Deposits: Noninterest-bearing demand $ 356,618 $ 356,618 $ 330,466 $ 330,466 Checking plus interest 302,227 302,227 239,809 239,809 Money market 262,050 262,050 232,613 232,613 Savings 143,322 143,322 148,723 148,723 Club 387 387 387 387 Brokered Deposits — — 22,084 22,075 Certificates of deposit, $100,000 or more 127,600 128,167 97,905 96,435 Other time 149,130 149,209 140,354 136,292 Short-term borrowings 1,226 1,226 60,812 60,812 Long-term borrowings 15,000 15,040 15,000 15,012

Financial Instruments with Of_2

Financial Instruments with Off-Balance Sheet Risk (Tables)	12 Months Ended
	Dec. 31, 2019
Financial Instruments With Off Balance Sheet Risk Disclosure [Abstract]
Schedule of Commitments Outstanding	(Dollars in thousands) December 31, 2019 December 31, 2018 Commitments to extend credit $ 211,652 $ 210,463 Letters of credit 7,691 6,917 Total $ 219,343 $ 217,380

Parent Company Financial Info_2

Parent Company Financial Information (Tables)	12 Months Ended
	Dec. 31, 2019
PARENT COMPANY FINANCIAL INFORMATION [Abstract]
Condensed Balance Sheet, Parent Only	(Dollars in thousands) 2019 2018 Assets Cash $ 7,522 $ 26,583 Investment securities available for sale, at fair value — 918 Investment in subsidiaries 183,183 157,855 Premises and equipment, net — 3,772 Other assets 2,483 1,593 Total assets $ 193,188 $ 190,721 Liabilities Accrued interest payable $ — $ 1 Other liabilities 386 6,494 Short-term borrowings — 1,041 Total liabilities 386 7,536 Stockholders’ equity Common stock 125 127 Additional paid in capital 61,045 65,434 Retained earnings 131,425 120,574 Accumulated other comprehensive income (loss) 207 (2,950) Total stockholders’ equity 192,802 183,185 Total liabilities and stockholders’ equity $ 193,188 $ 190,721
Condensed Statement of Operations, Parent Only	(Dollars in thousands) 2019 2018 Income Dividends from subsidiaries $ — $ 4,000 Management and other fees from subsidiaries 498 2,535 Gain on sale of subsidiary — 12,736 Other operating income 66 30 Total income 564 19,301 Expenses Interest expense 22 54 Salaries and employee benefits 111 1,626 Occupancy and equipment expense — 106 Other operating expenses 932 1,274 Total expenses 1,065 3,060 (Loss) income before income tax (benefit) expense and equity in undistributed net income of subsidiaries (501) 16,241 Income tax (benefit) expense (131) 4,298 (Loss) income before equity in undistributed net income of subsidiaries (370) 11,943 Equity in undistributed net income of subsidiaries 16,568 13,054 Net income $ 16,198 $ 24,997
Condensed Cash Flow, Parent Only	(Dollars in thousands) 2019 2018 Cash flows from operating activities: Net income $ 16,198 $ 24,997 Adjustments to reconcile net income to cash provided by operating activities: Equity in undistributed net income of subsidiaries (16,568) (13,054) Depreciation and amortization — 469 Stock-based compensation expense 149 447 Gain on sale of subsidiary — (12,736) Net (increase) decrease in other assets (1,093) 1,001 Net (decrease) increase in other liabilities (6,109) 3,267 Net cash (used in) provided by operating activities (7,423) 4,391 Cash flows from investing activities: Proceeds from maturities and principal payments of investment securities available for sale — 187 Purchases of premises and equipment — (590) Purchase of bank owned life insurance (139) — Transfer to subsidiary (571) — Cash of subsidiary retained upon disposal — 726 Proceeds from sale of subsidiary — 25,159 Net cash (used in) provided by investing activities (710) 25,482 Cash flows from financing activities: (Decrease) increase in short-term borrowings (1,041) 375 Common stock dividends paid (5,347) (4,079) Retirement of common stock (4,452) — Repurchase of shares for tax withholding on exercised options and vested restricted stock (88) (269) Net cash used in financing activities (10,928) (3,973) Net (decrease) increase in cash and cash equivalents (19,061) 25,900 Cash and cash equivalents at beginning of year 26,583 683 Cash and cash equivalents at end of year $ 7,522 $ 26,583 Supplemental cash flow information: Transfer of building, available for sale securities and other assets to banking subsidiary $ 5,032 $ —

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue Recognition [Abstract]
Noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for December 31, 2019 and 2018. December 31, (Dollars in thousands) 2019 2018 Noninterest Income In-scope of Topic 606: Service charges on deposit accounts $ 3,910 $ 3,879 Trust and investment fee income 1,522 1,557 Interchange income 2,678 2,441 Other noninterest income 1,354 990 Noninterest Income (in-scope of Topic 606) 9,464 8,867 Noninterest Income (out-of-scope of Topic 606) 556 146 Total Noninterest Income $ 10,020 $ 9,013 Noninterest income associated with discontinued operations is reported in Note 2.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)itemsegment	Dec. 31, 2018USD ($)	Jan. 01, 2019USD ($)
Significant Accounting Policies [Line Items]
Property, plant and equipment, depreciation methods	Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets.
Number of reporting units | item	1
Number of operating segments | segment	1
Tax at federal statutory rate	21.00%	21.00%
Cash and cash equivalents in excess of FDIC insurance	$ 4,900
Advertising expense	425	$ 509
Reclassification of gains recognized in net income (loss)	0	$ 0
Right-of-use assets	4,771		$ 3,800
Operating lease liability	$ 4,792		$ 3,800
Land Improvements [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	15 years
Minimum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	3 years
Minimum [Member] | Computer Hardware and Data Handling Equipment [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	3 years
Minimum [Member] | Building and Building Improvements [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	10 years
Maximum [Member] | Furniture, Fixtures and Equipment [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	10 years
Maximum [Member] | Computer Hardware and Data Handling Equipment [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	5 years
Maximum [Member] | Building and Building Improvements [Member]
Significant Accounting Policies [Line Items]
Property, plant and equipment, useful life	40 years

Sale of Subsidiary (Narrative)

Sale of Subsidiary (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds From Sale Of Insurance Agency, Discontinued Operations	$ 25,159
Discontinued Operations, Disposed of by Sale [Member] | Avon [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of investment in Eastern Re. Ltd transferred	40.00%
Net cash proceeds	$ 25,159
Proceeds From Sale Of Insurance Agency, Discontinued Operations	$ 25,200

Sale of Subsidiary (Calculation

Sale of Subsidiary (Calculation of net gain on disposal of discontinued operations) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposal	$ 12,736
Discontinued Operations, Disposed of by Sale [Member] | Avon [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from the transaction	29,276
Compensation expense related to the transaction	2,588
Broker fees	935
Other transaction costs	594
Net cash proceeds	25,159
Net assets sold	(12,423)
Net gain on disposal	$ 12,736

Sale of Subsidiary (Balance She

Sale of Subsidiary (Balance Sheets of Discontinued Operations) (Details) $ in Thousands	Dec. 31, 2018USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets of discontinued operations	$ 633
Liabilities of discontinued operations	3,323
Discontinued Operations, Disposed of by Sale [Member] | Avon [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Goodwill	8
Other assets	625
Assets of discontinued operations	633
Accrued expenses and other liabilities	3,323
Liabilities of discontinued operations	$ 3,323

Sale of Subsidiary (Statement o

Sale of Subsidiary (Statement of Operations of Discontinued Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Noninterest expense
(Loss) income from discontinued operations before income taxes	$ (113)	$ 1,421
Income tax (benefit) expense	(27)	4,923
(Loss) income from discontinued operations	(86)	9,234
Discontinued Operations, Disposed of by Sale [Member]
Noninterest income
Net gain on disposal		12,736
Insurance agency commissions		9,006
All other income	15	335
Total noninterest income	15	22,077
Noninterest expense
Salaries and wages	28	5,156
Employee benefits	7	1,173
Occupancy expense	14	428
Furniture and equipment	1
Amortization of intangible assets		47
Legal and professional fees	73	77
Other noninterest expense	5	1,039
Total noninterest expense	128	7,920
(Loss) income from discontinued operations before income taxes	(113)	14,157
Income tax (benefit) expense	(27)	4,923
(Loss) income from discontinued operations	$ (86)	$ 9,234

Investment Securities (Narrativ

Investment Securities (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)security	Dec. 31, 2018USD ($)
Proceeds from sale and maturity of marketable securities | $	$ 0	$ 0
Gain on sale of investments | $	$ 0	0
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions	33
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	3
Maximum [Member]
Loss on sale of investments | $	$ 1	$ 0
Mortgage-backed [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions	26
U.S. Government Agencies [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions	7
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Other Debt Securities [Member]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	2

Investment Securities (Amortize

Investment Securities (Amortized Cost and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	$ 122,492	$ 158,447
Available-for-sale securities, Gross Unrealized Gains	577	117
Available-for-sale securities, Gross Unrealized Losses	278	4,132
Available-for-sale, at fair value	122,791	154,432
Held-to-maturity Securities, Amortized Cost	8,786	6,043
Held-to-maturity securities, Gross Unrealized Gains	1	14
Held-to-maturity securities, Gross Unrealized Losses	133	57
Held-to-maturity securities, Estimated Fair Value	8,654	6,000
Equity securities, at fair value	1,342	1,269
Accounting Standards Update 2016-01
Schedule of Available-for-sale Securities [Line Items]
Equity securities, at fair value	1,300	1,300
Fair value adjustment recorded through earnings	42	(5)
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	23,854	34,285
Available-for-sale securities, Gross Unrealized Gains	3	2
Available-for-sale securities, Gross Unrealized Losses	31	651
Available-for-sale, at fair value	23,826	33,636
Held-to-maturity Securities, Amortized Cost	1,386	1,642
Held-to-maturity securities, Gross Unrealized Losses	5	25
Held-to-maturity securities, Estimated Fair Value	1,381	1,617
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	400	1,401
Held-to-maturity securities, Gross Unrealized Gains	1	14
Held-to-maturity securities, Estimated Fair Value	401	1,415
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, Amortized Cost	98,638	124,162
Available-for-sale securities, Gross Unrealized Gains	574	115
Available-for-sale securities, Gross Unrealized Losses	247	3,481
Available-for-sale, at fair value	98,965	120,796
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity Securities, Amortized Cost	7,000	3,000
Held-to-maturity securities, Gross Unrealized Losses	128	32
Held-to-maturity securities, Estimated Fair Value	$ 6,872	$ 2,968

Investment Securities (Gross Un

Investment Securities (Gross Unrealized Losses and Fair Value by Length of Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	$ 17,175	$ 15,060
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses	32	271
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value	40,798	132,266
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses	246	3,861
Available-for-sale securities, continuous unrealized loss position, fair value	57,973	147,326
Available-for-sale securities, continuous unrealized loss position, unrealized losses	278	4,132
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value	5,286	2,968
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses	100	32
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value	2,967	1,617
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses	33	25
Held-to-maturity securities, continuous unrealized loss position, fair value	8,253	4,585
Held-to-maturity securities, continuous unrealized loss position, unrealized losses	133	57
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	12,180	13,981
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses	27	261
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value	22,282	99,904
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses	220	3,220
Available-for-sale securities, continuous unrealized loss position, fair value	34,462	113,885
Available-for-sale securities, continuous unrealized loss position, unrealized losses	247	3,481
U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value	4,995	1,079
Available-for-sale securities, continuous unrealized loss position, less than 12 Months, unrealized losses	5	10
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, fair value	18,516	32,362
Available-for-sale securities, continuous unrealized loss position, more than 12 Months, unrealized losses	26	641
Available-for-sale securities, continuous unrealized loss position, fair value	23,511	33,441
Available-for-sale securities, continuous unrealized loss position, unrealized losses	31	651
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value	1,381
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses	5
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value		1,617
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses		25
Held-to-maturity securities, continuous unrealized loss position, fair value	1,381	1,617
Held-to-maturity securities, continuous unrealized loss position, unrealized losses	5	25
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, fair value	3,905	2,968
Held-to-maturity securities, continuous unrealized loss position, less than 12 Months, unrealized losses	95	32
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, fair value	2,967
Held-to-maturity securities, continuous unrealized loss position, more than 12 Months, unrealized losses	33
Held-to-maturity securities, continuous unrealized loss position, fair value	6,872	2,968
Held-to-maturity securities, continuous unrealized loss position, unrealized losses	$ 128	$ 32

Investment Securities (Amorti_2

Investment Securities (Amortized Cost and Estimated Fair Value by Maturity Date) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment Securities [Abstract]
Available for sale, Amortized Cost, Due in one year or less	$ 14,012
Available for sale, Amortized Cost, Due after one year through five years	10,449
Available for sale, Amortized Cost, Due after five years through ten years	52,894
Available for sale, Amortized Cost, Due after ten years	45,137
Available-for-sale securities, Amortized Cost	122,492	$ 158,447
Available for sale, Estimated Fair Value, Due in one year or less	14,005
Available for sale, Estimated Fair Value, Due after one year through five years	10,423
Available for sale, Estimated Fair Value, Due after five years through ten years	53,153
Available for sale, Estimated Fair Value, Due after ten years	45,210
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	122,791
Available-for-sale Securities, Debt Securities, Total	122,791	154,432
Held to maturity securities, Amortized Cost, Due after one year through five years	400
Held to maturity securities, Amortized Cost, Due after five years through ten years	7,000
Held to maturity securities, Amortized Cost, Due after ten years	1,386
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Amortized Cost	8,786
Held-to-maturity Securities, Amortized Cost	8,786	6,043
Held to maturity securities, Estimated Fair Value, Due after one year through five years	401
Held to maturity securities, Estimated Fair Value, Due after five years through ten years	6,872
Held to maturity securities, Estimated Fair Value, Due after ten years	1,381
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Fair Value	8,654
Held-to-maturity Securities, Fair Value, Total	$ 8,654	$ 6,000

Investment Securities (Amorti_3

Investment Securities (Amortized Cost and Estimated Fair Values of Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost, Total	$ 122,492	$ 158,447
Available-for-sale, Pledged available-for-sale securities, Estimated Fair Value	4,190	6,476
Collateral Pledged [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost, Total	66,904	99,729
Available-for-sale, Pledged available-for-sale securities, Estimated Fair Value	$ 67,142	$ 97,170

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)contract	Dec. 31, 2018USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and leases receivable, no longer reported as related party	$ 1,400
Financing receivable, modifications, post-modification recorded investment	$ 3,650
Financing receivable, modifications, number of contracts | contract	4
Financing receivable, recorded investment, nonaccrual status	$ 10,590	$ 16,655
Mortgage loans in process of foreclosure, amount	23	949
Loans and leases receivable, net amount, total	1,238,147	1,185,012
Loans	1,248,654	1,195,355
Financing receivable origination fee, net	1,800	789
Other real estate owned, net	$ 74	$ 1,222
Allowance from loan losses, as a percentage of total loans	0.84%	0.87%
Directors, Associates and Policy Making Officers [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and leases receivable, related parties	$ 18,800	$ 13,200
Loans and leases receivable, related parties, additions	15,700	1,900
Loans and leases receivable, related parties, proceeds	8,600	2,600
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing receivable, modifications, post-modification recorded investment	$ 2,119
Financing receivable, modifications, number of contracts | contract	3
Financing receivable, recorded investment, nonaccrual status	$ 2,475	4,099
Loans	442,506	429,560
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	17,737	7,274
Northwest Bank Branches [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable Net Of Discount	79,200	92,800
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Financing Receivable, Related Discount	1,100	1,400
Pass Performing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	1,042,408	967,331
Pass Performing [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	404,500	386,553
Pass Performing [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	17,347	6,805
Pass Watch [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	177,994	194,540
Pass Watch [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	29,223	33,739
Pass Watch [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	383	466
Special Mention [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	13,523	8,926
Special Mention [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	5,549	3,769
Special Mention [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	2
Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing receivable, recorded investment, nonaccrual status	10,600	16,700
Loans	14,729	24,558
Substandard [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	3,234	5,499
Substandard [Member] | Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans	$ 5	$ 3

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses (Loans by Class of Loan Portfolio) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 1,248,654	$ 1,195,355
Allowance for credit losses	(10,507)	(10,343)
Loans, net	1,238,147	1,185,012
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	99,829	127,572
Allowance for credit losses	(1,576)	(2,662)
Residential Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	442,506	429,560
Allowance for credit losses	(2,501)	(2,353)
Commercial Real Estate Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	586,562	523,427
Allowance for credit losses	(4,032)	(3,077)
Commercial Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	102,020	107,522
Allowance for credit losses	(1,929)	(1,949)
Consumer Portfolio Segment [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	17,737	7,274
Allowance for credit losses	$ (469)	$ (302)

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses (Allowance for Credit Losses on Loans Receivable with Impairment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	$ 19,417	$ 25,318
Loans collectively evaluated for impairment	1,229,237	1,170,037
Total loans	1,248,654	1,195,355
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	975	761
Loans collectively evaluated for impairment	9,532	9,582
Loans and Leases Receivable, Allowance, Total	10,507	10,343
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	41	2,893
Loans collectively evaluated for impairment	99,788	124,679
Total loans	99,829	127,572
Allowance for credit losses allocated to:
Loans individually evaluated for impairment		320
Loans collectively evaluated for impairment	1,576	2,342
Loans and Leases Receivable, Allowance, Total	1,576	2,662
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	7,072	8,553
Loans collectively evaluated for impairment	435,434	421,007
Total loans	442,506	429,560
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	395	301
Loans collectively evaluated for impairment	2,106	2,052
Loans and Leases Receivable, Allowance, Total	2,501	2,353
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	12,006	13,532
Loans collectively evaluated for impairment	574,556	509,895
Total loans	586,562	523,427
Allowance for credit losses allocated to:
Loans individually evaluated for impairment	580	104
Loans collectively evaluated for impairment	3,452	2,973
Loans and Leases Receivable, Allowance, Total	4,032	3,077
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	298	340
Loans collectively evaluated for impairment	101,722	107,182
Total loans	102,020	107,522
Allowance for credit losses allocated to:
Loans individually evaluated for impairment		36
Loans collectively evaluated for impairment	1,929	1,913
Loans and Leases Receivable, Allowance, Total	1,929	1,949
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans collectively evaluated for impairment	17,737	7,274
Total loans	17,737	7,274
Allowance for credit losses allocated to:
Loans collectively evaluated for impairment	469	302
Loans and Leases Receivable, Allowance, Total	$ 469	$ 302

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses (Effect on Loan Loss Provision as a Result of Changes in Methodology) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	$ 700	$ 1,674
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	767	363
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	749	694
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	85	(54)
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	200	115
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Provision for credit losses	$ (1,101)	$ 556

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses (Impaired Financing Receivables by Loan Class) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	$ 11,323	$ 17,974
Recorded investment with no allowance	6,656	12,039
Recorded investment with an allowance	3,934	4,616
Related allowance	776	541
Quarter-to-date average recorded investment	10,886	10,364
Year-to-date average recorded investment	13,501	7,357
Impaired Accruing Restructured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	7,501	8,663
Recorded investment with no allowance	5,372	2,777
Recorded investment with an allowance	2,129	5,886
Related allowance	199	220
Quarter-to-date average recorded investment	7,531	8,801
Year-to-date average recorded investment	7,699	9,888
Interest income recognized	306	309
Other Impaired Accruing Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	1,326
Recorded investment with no allowance	1,326
Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	20,150	26,637
Recorded investment with no allowance	13,354	14,816
Recorded investment with an allowance	6,063	10,502
Related allowance	975	761
Quarter-to-date average recorded investment	18,417	19,165
Year-to-date average recorded investment	21,200	17,245
Interest income recognized	306	309
Residential Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	2,660	4,281
Recorded investment with no allowance	678	2,605
Recorded investment with an allowance	1,797	1,494
Related allowance	215	118
Quarter-to-date average recorded investment	2,052	2,820
Year-to-date average recorded investment	2,691	1,884
Residential Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	4,041	4,454
Recorded investment with no allowance	2,583	1,440
Recorded investment with an allowance	1,458	3,014
Related allowance	180	183
Quarter-to-date average recorded investment	4,052	4,585
Year-to-date average recorded investment	4,157	4,606
Interest income recognized	171	125
Residential Portfolio Segment [Member] | Other Impaired Accruing Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	556
Recorded investment with no allowance	556
Residential Portfolio Segment [Member] | Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	7,257	8,735
Recorded investment with no allowance	3,817	4,045
Recorded investment with an allowance	3,255	4,508
Related allowance	395	301
Quarter-to-date average recorded investment	6,104	7,405
Year-to-date average recorded investment	6,848	6,490
Interest income recognized	171	125
Commercial Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	8,242	10,029
Recorded investment with no allowance	5,680	9,307
Recorded investment with an allowance	2,137	67
Related allowance	561	67
Quarter-to-date average recorded investment	8,533	4,283
Year-to-date average recorded investment	9,421	2,149
Commercial Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	3,419	4,158
Recorded investment with no allowance	2,748	1,286
Recorded investment with an allowance	671	2,872
Related allowance	19	37
Quarter-to-date average recorded investment	3,438	4,164
Year-to-date average recorded investment	3,496	4,416
Interest income recognized	125	149
Commercial Real Estate Portfolio Segment [Member] | Other Impaired Accruing Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	770
Recorded investment with no allowance	770
Commercial Real Estate Portfolio Segment [Member] | Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	12,431	14,187
Recorded investment with no allowance	9,198	10,593
Recorded investment with an allowance	2,808	2,939
Related allowance	580	104
Quarter-to-date average recorded investment	11,971	8,447
Year-to-date average recorded investment	12,917	6,565
Interest income recognized	125	149
Commercial Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	421	445
Recorded investment with no allowance	298
Recorded investment with an allowance		340
Related allowance		36
Quarter-to-date average recorded investment	301	329
Year-to-date average recorded investment	313	336
Commercial Portfolio Segment [Member] | Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	421	445
Recorded investment with no allowance	298
Recorded investment with an allowance		340
Related allowance		36
Quarter-to-date average recorded investment	301	329
Year-to-date average recorded investment	313	336
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance		3,219
Recorded investment with no allowance		127
Recorded investment with an allowance		2,715
Related allowance		320
Quarter-to-date average recorded investment		2,932
Year-to-date average recorded investment	1,076	2,988
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Accruing Restructured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	41	51
Recorded investment with no allowance	41	51
Quarter-to-date average recorded investment	41	52
Year-to-date average recorded investment	46	866
Interest income recognized	10	35
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Impaired Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	41	3,270
Recorded investment with no allowance	41	178
Recorded investment with an allowance		2,715
Related allowance		320
Quarter-to-date average recorded investment	41	2,984
Year-to-date average recorded investment	1,122	3,854
Interest income recognized	$ 10	$ 35

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses (Rollforward of TDRs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	$ 11,781	$ 16,624
New TDRs	41
Disbursements (Payments)	(2,273)	(935)
Charge offs	(3)	(477)
Reclassifications/Transfer In/(Out)		(74)
Payoffs	(353)	(3,357)
TDR ending balance	9,193	11,781
TDR, Related Allowance	312	556
Impaired Nonaccrual Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	3,118	3,298
Disbursements (Payments)	(1,423)	(180)
Charge offs	(3)	(80)
Reclassifications/Transfer In/(Out)		80
TDR ending balance	1,692	3,118
TDR, Related Allowance	113	336
Impaired Nonaccrual Loans [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Charge offs		(80)
Reclassifications/Transfer In/(Out)	1,393	80
TDR ending balance	1,393
TDR, Related Allowance	113
Impaired Nonaccrual Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance		83
Reclassifications/Transfer In/(Out)		(83)
Impaired Nonaccrual Loans [Member] | Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	320	337
Disbursements (Payments)	(21)	(17)
TDR ending balance	299	320
TDR, Related Allowance		16
Impaired Nonaccrual Loans [Member] | Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	2,798	2,878
Disbursements (Payments)	(1,402)	(163)
Charge offs	(3)
Reclassifications/Transfer In/(Out)	(1,393)	83
TDR ending balance		2,798
TDR, Related Allowance		320
Impaired Accruing Restructured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	8,663	13,326
New TDRs	41
Disbursements (Payments)	(850)	(755)
Charge offs		(397)
Reclassifications/Transfer In/(Out)		(154)
Payoffs	(353)	(3,357)
TDR ending balance	7,501	8,663
TDR, Related Allowance	199	220
Impaired Accruing Restructured Loans [Member] | Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	4,454	4,536
New TDRs	41
Disbursements (Payments)	(101)	(85)
Reclassifications/Transfer In/(Out)		541
Payoffs	(353)	(538)
TDR ending balance	4,041	4,454
TDR, Related Allowance	180	183
Impaired Accruing Restructured Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	4,158	4,818
Disbursements (Payments)	(739)	(441)
Payoffs		(219)
TDR ending balance	3,419	4,158
TDR, Related Allowance	19	37
Impaired Accruing Restructured Loans [Member] | Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
TDR beginning balance	51	3,972
Disbursements (Payments)	(10)	(229)
Charge offs		(397)
Reclassifications/Transfer In/(Out)		(695)
Payoffs		(2,600)
TDR ending balance	$ 41	$ 51

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)contract	Dec. 31, 2018USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of contracts | contract	4
Premodification outstanding recorded investment	$ 4,462
Postmodification outstanding recorded investment	3,650
Related allowance
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of contracts | contract	3
Premodification outstanding recorded investment	$ 2,310
Postmodification outstanding recorded investment	2,119
Related allowance
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of contracts | contract	1
Number of new contracts | contract	1
Premodification outstanding recorded investment	$ 2,152
Postmodification outstanding recorded investment	1,531
Related allowance
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses (Troubled Debt Restructurings With Subsequent Default) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance
Construction Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Related allowance

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	$ 1,248,654	$ 1,195,355
Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	1,042,408	967,331
Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	177,994	194,540
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	13,523	8,926
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	14,729	24,558
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	99,829	127,572
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	84,357	93,977
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	13,068	30,735
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	2,404
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating		2,860
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	442,506	429,560
Residential Portfolio Segment [Member] | Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	404,500	386,553
Residential Portfolio Segment [Member] | Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	29,223	33,739
Residential Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	5,549	3,769
Residential Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	3,234	5,499
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	586,562	523,427
Commercial Real Estate Portfolio Segment [Member] | Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	455,388	389,219
Commercial Real Estate Portfolio Segment [Member] | Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	115,190	113,873
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	4,822	4,515
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	11,162	15,820
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	102,020	107,522
Commercial Portfolio Segment [Member] | Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	80,816	90,777
Commercial Portfolio Segment [Member] | Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	20,130	15,727
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	746	642
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	328	376
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	17,737	7,274
Consumer Portfolio Segment [Member] | Pass Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	17,347	6,805
Consumer Portfolio Segment [Member] | Pass Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	383	466
Consumer Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	2
Consumer Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan Risk Rating	$ 5	$ 3

Loans and Allowance for Cred_12

Loans and Allowance for Credit Losses (Aging of Past Due Financing Receivables) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,231,076	$ 1,174,846
Total past due	6,988	3,854
Nonaccrual	10,590	16,655
Total loans	$ 1,248,654	$ 1,195,355
Percent of total loans, Current	98.60%	98.30%
Percent of total loans, Total past due	0.60%	0.30%
Percent of total loans, Nonaccrual	0.80%	1.40%
Percent of total loans, Total loans	100.00%	100.00%
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 4,662	$ 1,945
Percent of total loans, Total past due	0.40%	0.20%
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 1,000	$ 1,770
Percent of total loans, Total past due	0.10%	0.10%
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 1,326	$ 139
Percent of total loans, Total past due	0.10%
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 435,671	423,732
Total past due	4,360	1,729
Nonaccrual	2,475	4,099
Total loans	442,506	429,560
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,021	1,384
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	783	206
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	556	139
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	577,015	512,252
Total past due	1,730	1,801
Nonaccrual	7,817	9,374
Total loans	586,562	523,427
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	743	253
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	217	1,548
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	770
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	101,476	107,089
Total past due	246	93
Nonaccrual	298	340
Total loans	102,020	107,522
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	246	83
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		10
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	17,680	7,238
Total past due	57	36
Total loans	17,737	7,274
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	57	30
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due		6
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	99,234	124,535
Total past due	595	195
Nonaccrual		2,842
Total loans	99,829	127,572
Construction Loans [Member] | Commercial and Residential Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	$ 595	$ 195

Loans and Allowance for Cred_13

Loans and Allowance for Credit Losses (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Allowance for credit losses allocated to:
Beginning balance	$ 10,343	$ 9,781
Charge-offs	(1,097)	(1,511)
Recoveries	561	399
Net charge-offs	(536)	(1,112)
Provision	700	1,674
Ending balance	10,507	10,343
Commercial and Residential Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Allowance for credit losses allocated to:
Beginning balance	2,662	2,460
Charge-offs	(3)	(397)
Recoveries	18	43
Net charge-offs	15	(354)
Provision	(1,101)	556
Ending balance	1,576	2,662
Residential Portfolio Segment [Member]
Allowance for credit losses allocated to:
Beginning balance	2,353	2,284
Charge-offs	(646)	(406)
Recoveries	27	112
Net charge-offs	(619)	(294)
Provision	767	363
Ending balance	2,501	2,353
Commercial Real Estate Portfolio Segment [Member]
Allowance for credit losses allocated to:
Beginning balance	3,077	2,594
Charge-offs		(240)
Recoveries	206	29
Net charge-offs	206	(211)
Provision	749	694
Ending balance	4,032	3,077
Commercial Portfolio Segment [Member]
Allowance for credit losses allocated to:
Beginning balance	1,949	2,241
Charge-offs	(411)	(441)
Recoveries	306	203
Net charge-offs	(105)	(238)
Provision	85	(54)
Ending balance	1,929	1,949
Consumer Portfolio Segment [Member]
Allowance for credit losses allocated to:
Beginning balance	302	202
Charge-offs	(37)	(27)
Recoveries	4	12
Net charge-offs	(33)	(15)
Provision	200	115
Ending balance	$ 469	$ 302

Leases (Narrative) (Details)

Leases (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Right-of-use assets	$ 4,771	$ 3,800
Lease liabilities	$ 4,792	3,800
Additional Premises [Member]
Right-of-use assets		1,400
Lease liabilities		$ 1,400

Leases (Lease Information) (Det

Leases (Lease Information) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Lease liabilities	$ 4,792	$ 3,800
Right-of-use assets	$ 4,771	$ 3,800
Weighted average remaining lease term	11 years 9 months 4 days
Weighted average discount rate	3.13%

Leases (Lease cost) (Details)

Leases (Lease cost) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 620
Total lease cost	620
Cash paid for amounts included in the measurement of lease liabilities	$ 587

Leases (Lease Payments Due) (De

Leases (Lease Payments Due) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019
Leases [Abstract]
Twelve months ending December 31, 2020	$ 659
Twelve months ending December 31, 2021	627
Twelve months ending December 31, 2022	625
Twelve months ending December 31, 2023	589
Twelve months ending December 31, 2024	547
Thereafter	3,152
Total undiscounted cash flows	6,199
Discount	1,407
Lease liabilities	$ 4,792	$ 3,800

Premises and Equipment (Narrati

Premises and Equipment (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
PREMISES AND EQUIPMENT [Abstract]
Depreciation	$ 1.1	$ 1

Premises and Equipment (Schedul

Premises and Equipment (Schedule of Property Plant and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 37,113	$ 34,868
Accumulated depreciation	(13,292)	(12,157)
Total	23,821	22,711
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	8,509	7,884
Buildings and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	21,250	20,597
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 7,354	6,387
Parent Company [Member]
Property, Plant and Equipment [Line Items]
Total		$ 3,772

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	May 19, 2017
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 2,252	$ 2,857
Goodwill	17,518	17,518
Core Deposits Intangible [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net	$ 2,252	$ 2,857
Northwest Bank Branches [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 15,000
Northwest Bank Branches [Member] | Core Deposits Intangible [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, net			$ 4,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets (Schedule of Components of Goodwill and Other Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets [Line Items]
Goodwill, Gross	$ 19,728	$ 19,728
Accumulated Impairment Charges	(1,543)	(1,543)
Accumulated Amortization	(667)	(667)
Goodwill, Total	17,518	17,518
Other intangible assets, Amortizable, Gross Carrying Amount	3,954	3,954
Other intangible assets, Amortizable, Accumulated Amortization	(1,702)	(1,097)
Total amortizing intangible assets	2,252	2,857
Core Deposits Intangible [Member]
Goodwill and Intangible Assets [Line Items]
Other intangible assets, Amortizable, Gross Carrying Amount	3,954	3,954
Other intangible assets, Amortizable, Accumulated Amortization	(1,702)	(1,097)
Total amortizing intangible assets	$ 2,252	$ 2,857
Weighted Average Remaining Life (in years)	5 years 8 months 12 days	7 years 2 months 12 days

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets (Future Amortization Expense for Amortizable Other Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Other Intangibles [Abstract]
2020	$ 533
2021	461
2022	389
2023	317
2024	246
Thereafter	306
Total amortizing intangible assets	$ 2,252	$ 2,857

Other Assets (Schedule of Other

Other Assets (Schedule of Other Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Assets [Abstract]
Accrued interest receivable	$ 3,455	$ 3,345
Deferred income taxes	2,754	4,182
Prepaid expenses	1,157	1,067
Cash surrender value on life insurance	29,770	3,726
Income taxes receivable	175
Other assets	3,261	5,358
Total	$ 40,572	$ 17,678

Other Liabilities (Schedule of

Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities [Abstract]
Accrued interest payable	$ 330	$ 604
Other accounts payable	1,401	1,040
Deferred compensation liability		3,454
Income taxes payable	2,350	3,317
Total	$ 4,081	$ 8,415

Deposits (Narrative) (Details)

Deposits (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Certificate of deposit at or over $250,000	$ 38,900	$ 26,700
Deposits	1,341,334	1,212,341
Brokered deposits	0	22,100
Directors, Associates and Policy Making Officers [Member]
Deposits	$ 5,500	$ 3,900

Deposits (Schedule of Deposits)

Deposits (Schedule of Deposits) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
DEPOSITS [Abstract]
Time deposits maturity, Due in one year or less	$ 126,055	$ 128,268
Time deposits maturity, Due in one to three years	116,979	90,942
Time deposits maturity, Due in three to five years	34,084	41,521
Time Deposits, Total	$ 277,118	$ 260,731

Borrowings (Schedule of Short-t

Borrowings (Schedule of Short-term Borrowings) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Short-term borrowings, At Year End	$ 1,226	$ 60,812
Retail Repurchase Agreements [Member]
Short-term Debt [Line Items]
Short-term borrowings, Average for the Year	$ 1,061	$ 3,341
Short-term borrowings, weighted interest rate, Average for the Year	1.39%	1.09%
Short-term borrowings, At Year End	$ 1,226	$ 823
Short-term debt, weighted interest rate, At Year End	0.81%	1.87%
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Short-term borrowings, Average for the Year	$ 17,378	$ 73,970
Short-term borrowings, weighted interest rate, Average for the Year	2.68%	2.16%
Short-term borrowings, At Year End		$ 59,989
Short-term debt, weighted interest rate, At Year End		2.63%
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Short-term borrowings, Average for the Year	$ 14
Short-term borrowings, weighted interest rate, Average for the Year	2.86%

Borrowings (Narrative) (Details

Borrowings (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Short-term Debt, Total	$ 1,226	$ 60,812
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Long-term Federal Home Loan Bank Advances	$ 15,000
Debt Instrument, Interest Rate, Effective Percentage	2.82%
Debt Instrument, Maturity Date	Apr. 1, 2020
Line of Credit [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.09%	0.09%
Line of Credit [Member] | Federal Funds Line Of Credit And Reverse Repurchase Agreement [Member]
Short-term Debt [Line Items]
Short-term Debt, Total	$ 15,000	$ 15,000
Federal Home Loan Bank Advances [Member]
Short-term Debt [Line Items]
Short-term Debt, Total		59,989
Federal Home Loan Bank Advances [Member] | Secured Credit [Member]
Short-term Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 270,100	$ 154,700

Benefit Plans (Narrative) (Deta

Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
BENEFIT PLANS [Abstract]
Defined contribution plan, employer discretionary contribution amount	$ 580	$ 532

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 15, 2019	Jan. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share price	$ 17.36
Equity Plan 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award description	The Company may issue shares of common stock or grant other equity-based awards pursuant to the 2016 Equity Plan. Stock-based awards granted to date generally are time-based, vest in equal installments on each anniversary of the grant date and range over a one- to three-year period of time, and, in the case of stock options, expire 10 years from the grant date. As part of the 2016 Equity Plan, a performance equity incentive award program, known as the "Long-term incentive plan" allows participating officers of the Company to earn incentive awards of performance share/restricted stock units if certain pre-determined targets are achieved at the end of a three-year performance cycle. Stock-based compensation expense based on the grant date fair value is recognized ratably over the requisite service period for all awards and reflects forfeitures as they occur.
Equity Plan 2016 [Member] | Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award method used for valuation	fair value of options using the Black-Scholes valuation model
Share price				$ 14.66	$ 18.22
Options, Weighted average remaining contractual term	4 years 9 months 18 days
Options, outstanding intrinsic value	$ 95
Number of shares exercised, options	15,578	35,180
Options, exercised, intrinsic value	$ 72	$ 376
Options, exercisable, intrinsic value		$ 132
Equity Plan 2016 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted (in shares)	15,702	15,826
Other than options, vested, fair value	$ 0	$ 585
Equity Plan 2016 [Member] | Time Based Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for granting	750,000
Shares available to be granted	636,465
Award expiration	10 years
Equity Plan 2016 [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Number of shares entitled after performance condition period	1
Other than options, vested, fair value	$ 241	$ 383
Maximum [Member] | Equity Plan 2016 [Member] | Time Based Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Maximum [Member] | Equity Plan 2016 [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted (in shares)			24,726
Minimum [Member] | Equity Plan 2016 [Member] | Time Based Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Minimum [Member] | Equity Plan 2016 [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Granted (in shares)			6,178

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock-Based Compensation [Abstract]
Stock-based compensation expense	$ 149	$ 447
Excess tax benefits related to stock-based compensation	7	34
Unrecognized stock-based compensation expense	$ 35	$ 223
Weighted average period unrecognized expense is expected to be recognized	1 month 6 days	10 months 24 days

Stock-Based Compensation (Sch_2

Stock-Based Compensation (Schedule of Stock-Based Compensation, RS and RSU Award Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
2016 and 2006 Plan [Member] | Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Nonvested at beginning of period (in shares)	38,562	90,266
Number of Shares, Granted (in shares)		11,194
Number of Shares, Vested (in shares)	(15,577)	(40,423)
Number of Shares, Cancelled (in shares)	(16,534)	(22,475)
Number of Shares, Nonvested at end of period (in shares)	6,451	38,562
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share)	$ 14.69	$ 12.08
Weighted Average Grant Date Fair Value, Granted (in dollars per share)		17.36
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	11.68	9.49
Weighted Average Grant Date Fair Value, Cancelled (in dollars per share)	16.78	16.55
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share)	$ 16.57	$ 14.69
Equity Plan 2016 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Nonvested at beginning of period (in shares)		15,913
Number of Shares, Granted (in shares)	15,702	15,826
Number of Shares, Vested (in shares)		(31,739)
Number of Shares, Nonvested at end of period (in shares)	15,702
Weighted Average Grant Date Fair Value, Nonvested at beginning of period (in dollars per share)		$ 15.39
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	$ 15.36	18.63
Weighted Average Grant Date Fair Value, Vested (in dollars per share)		$ 17.05
Weighted Average Grant Date Fair Value, Nonvested at end of period (in dollars per share)	$ 15.36

Stock-Based Compensation (Sch_3

Stock-Based Compensation (Schedule of Stock Options Activity) (Details) - Employee Stock Option [Member] - Equity Plan 2016 [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Outstanding at beginning of period (in shares)	27,249	62,429
Number of shares, Exercised (in shares)	(15,578)	(35,180)
Number of shares, Outstanding at end of period (in shares)	11,671	27,249
Number of shares, Exercisable at end of period (in shares)	11,671	27,249
Weighted Average Grant Date Fair Value, Outstanding at beginning of period	$ 9.68	$ 8.47
Weighted Average Grant Date Fair Value, Exercised	10.01	7.54
Weighted Average Grant Date Fair Value, Outstanding at end of period	9.25	9.68
Weighted Average Exercise Price, Exercisable at end of period	$ 9.25	$ 9.68

Deferred Compensation (Narrativ

Deferred Compensation (Narrative) (Details) - Management and Highly Compensated Employees [Member] - Executive Deferred Compensation Plan [Member]	12 Months Ended
	Dec. 31, 2019
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Deferred compensation arrangement with individual, description	Company has multiple deferred compensation agreements with current and former employees. The Executive Deferred Compensation Plan (the "Plan") is reserved for members of management and highly compensated employees of the Company and the Bank. During 2019, the Plan was expanded to include additional officers who had not previously participated. The Plan permits a participant to elect, each year, to defer receipt of up to 100% of his or her salary and bonus to be earned in the following year. The Plan also permits the participant to defer the receipt of performance-based compensation not later than six months before the end of the period for which it is to be earned.
Employee percentage of salary, maximum	100.00%

Deferred Compensation (Schedule

Deferred Compensation (Schedule of Deferred Compensation Arrangement) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
DEFERRED COMPENSATION [Abstract]
Deferred compensation contribution
Elected Deferrals	133
Deferred compensation liability	$ 363	$ 268

Deferred Compensation (Schedu_2

Deferred Compensation (Schedule of Deferred Compensation Arrangement in Other Assets and Other Liabilities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash surrender value	$ 29,770	$ 3,726
Deferred compensation liability	363	268
SERP Plan
Cash surrender value	26,721
Deferred compensation liability	347
SERP Expense	347
Former Directors from CNB
Cash surrender value	2,919	3,726
Deferred compensation liability	$ 691	$ 772

Other Expenses (Schedule of Oth

Other Expenses (Schedule of Other Noninterest Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
OTHER EXPENSES [Abstract]
Advertising and marketing	$ 425	$ 509
Other customer expense	400	352
Other expense	2,220	1,888
Other loan expense	277	336
Software expense	1,001	934
Travel and entertainment expense	322	328
Trust professional fees	485	518
Total noninterest expense	$ 5,130	$ 4,865

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Tax at federal statutory rate	21.00%	21.00%
Income (loss) before taxes	$ 21,894	$ 21,143
Parent Company [Member]
Income (loss) before taxes	$ (501)	$ 16,241

Income Taxes (Schedule of Compo

Income Taxes (Schedule of Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Current tax expense:
Federal	$ 3,974	$ 4,110
State	1,395	1,167
Current income tax expense (benefit), total	5,369	5,277
Deferred income tax (benefit) expense:
Federal	122	(120)
State	119	223
Deferred income tax expense (benefit), total	241	103
Total income tax expense	$ 5,610	$ 5,380

Income Taxes (Schedule of Effec

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES [Abstract]
Tax at federal statutory rate	21.00%	21.00%
Tax effect of:
Tax-exempt income	1.00%	0.50%
State income taxes, net of federal benefit	5.50%	5.20%
Other	(0.10%)	0.30%
Actual income tax expense rate	25.60%	25.40%

Income Taxes (Schedule of Defer

Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Allowance for credit losses	$ 2,850	$ 2,797
Write-downs of other real estate owned	9	273
Nonaccrual loan interest	353	260
Unrealized losses on available-for-sale securities		1,105
Unrealized losses on available-for-sale securities transferred to held to maturity	4	12
Other	735	605
Total deferred tax assets	3,951	5,052
Less valuation allowance	(63)
Deferred tax assets net of valuation allowance	3,888	5,052
Deferred tax liabilities:
Depreciation	198	238
Acquisition accounting adjustments	508	247
Deferred capital gain on branch sale	194	200
Unrealized gains on available-for-sale securities	74
Other	160	185
Total deferred tax liabilities	1,134	870
Net deferred tax assets	$ 2,754	$ 4,182

Earnings Per Common Share (Calc

Earnings Per Common Share (Calculation of Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net income from continuing operations	$ 16,284	$ 15,763
Net (loss) income from discontinued operations	(86)	9,234
Net Income	$ 16,198	$ 24,997
Weighted average shares outstanding - Basic (in shares)	12,725,000	12,739,000
Dilutive effect of common stock equivalents-options	5,000	12,000
Dilutive effect of common stock equivalents-restricted stock units		2,000
Weighted average shares outstanding - Diluted (in shares)	12,730,000	12,753,000
Income from continuing operations	$ 1.28	$ 1.24
(Loss) income from discontinued operations	(0.01)	0.72
Net income per common share - basic	1.27	1.96
Income from continuing operations	1.28	1.24
(Loss) income from discontinued operations	(0.01)	0.72
Net income per common share - diluted	$ 1.27	$ 1.96
Weighted average common stock excluded from calculation of diluted EPS	0	0

Regulatory Capital Requiremen_3

Regulatory Capital Requirements (Narrative) (Details) - USD ($) $ in Millions	Jan. 01, 2019	Jan. 01, 2016	Dec. 31, 2019	Dec. 31, 2018
REGULATORY CAPITAL REQUIREMENTS [Abstract]
Capital conversation buffer (as a percent)		0.625%	2.50%
Bank specific capital conversation buffer (as a percent)			5.87%
Capital conservation buffer, Minimum ratios, as a percent			2.50%
Due to affiliate, current			$ 0	$ 0
Common Equity Tier 1 required for capital adequacy purposes, ratio (as a percent)			7.00%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets			8.50%
Capital Required for Capital Adequacy to Risk Weighted Assets			10.50%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets			4.00%
Common Equity Tier 1 required for well capitalized to risk weighted assets (as a percent)			6.50%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets			8.00%
Capital Required to be Well Capitalized to Risk Weighted Assets			10.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets			5.00%
Payment of dividends			$ 0	$ 4
Common equity Tier 1 capital to risk-weighted assets minimum ratio			4.50%
Common equity tier one risk based capital required for capital adequacy to risk weighted asset raised			6.00%
Common equity tier one risk based capital required for capital adequacy to risk weighted asset total			4.00%
Additional capital conservation buffer in percentage	0.625%
Capital conservation buffer in percentage final	2.50%

Regulatory Capital Requiremen_4

Regulatory Capital Requirements (Schedule of Capital Amount and Ratios) (Details) - Shore United Bank [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Tier One Risk Based Capital	$ 163,206	$ 140,265
Capital	174,014	150,909
Risk Weighted Assets	1,254,980	1,185,050
Adjusted Average Total Assets	$ 1,533,919	$ 1,432,686
Common Equity Tier 1 ratio	13.00%	11.84%
Tier 1 Risk-Based Capital Ratio	13.00%	11.84%
Total Risk-Based Capital Ratio	13.87%	12.73%
Tier 1 Leverage Ratio	10.64%	9.79%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	$ 183,185	$ 163,736
Other comprehensive income (loss)	3,157	(1,647)
Balances	192,802	183,185
Accumulated Other Comprehensive Income(Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	(2,950)	(1,309)
Other comprehensive income (loss)		(1,647)
Realized gain on sale of investment securities	3,157
Balances	207	(2,950)
Accumulated Other Comprehensive Income(Loss) | Accounting Standards Update 2016-01
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect adjustment (ASU 2016-01)		6
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	(2,918)	(1,255)
Other comprehensive income (loss)		(1,669)
Realized gain on sale of investment securities	3,136
Balances	218	(2,918)
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Accounting Standards Update 2016-01
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative effect adjustment (ASU 2016-01)		6
Unrealized Gains Losses On Securities Transferred From Available For Sale To Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	(32)	(54)
Other comprehensive income (loss)		22
Realized gain on sale of investment securities	21
Balances	$ (11)	$ (32)

Fair Value Measurements (Assets

Fair Value Measurements (Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment securities:
Investment securities available for sale, at fair value	$ 122,791	$ 154,432
Equity securities, at fair value	1,342	1,269
Total	124,133	155,701
Fair Value, Inputs, Level 2 [Member]
Investment securities:
Investment securities available for sale, at fair value	122,791	154,432
Equity securities, at fair value	1,342	1,269
Total	124,133	155,701
U.S. Government Agencies [Member]
Investment securities:
Investment securities available for sale, at fair value	23,826	33,636
U.S. Government Agencies [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities:
Investment securities available for sale, at fair value	23,826	33,636
Mortgage-backed [Member]
Investment securities:
Investment securities available for sale, at fair value	98,965	120,796
Mortgage-backed [Member] | Fair Value, Inputs, Level 2 [Member]
Investment securities:
Investment securities available for sale, at fair value	$ 98,965	$ 120,796

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value of Assets Measured on Nonrecurring Basis) (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Appraisal Of Collateral [Member]
Impaired loans:
Impaired loans	$ 2,489	$ 3,839
Other real estate owned	$ 74	$ 1,222
Appraisal Of Collateral [Member] | Maximum [Member]
Impaired loans:
Impaired loans, Appraisal adjustment, Range		17.00%
Impaired loans, Liquidation expense, Range		10.00%
Other real estate owned, Appraisal adjustment, Range	31.00%	40.00%
Other real estate owned, Liquidation expense, Range		10.00%
Appraisal Of Collateral [Member] | Minimum [Member]
Impaired loans:
Impaired loans, Appraisal adjustment, Range	10.00%	0.00%
Impaired loans, Liquidation expense, Range		0.00%
Other real estate owned, Appraisal adjustment, Range	0.00%	15.00%
Other real estate owned, Liquidation expense, Range	10.00%	5.00%
Discounted Cash Flow Analysis [Member]
Impaired loans:
Impaired loans	$ 2,599	$ 5,902
Discounted Cash Flow Analysis [Member] | Maximum [Member]
Impaired loans:
Impaired loans, Discount rate, Range	7.25%	7.25%
Discounted Cash Flow Analysis [Member] | Minimum [Member]
Impaired loans:
Impaired loans, Discount rate, Range	4.00%	4.00%

Fair Value Measurements (Estima

Fair Value Measurements (Estimated Fair Values of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets, Estimated Fair Value
Investment securities held to maturity	$ 8,654	$ 6,000
Fair Value, Inputs, Level 1 [Member] | Carrying Amount [Member]
Financial assets, Estimated Fair Value
Cash and cash equivalents	94,971	67,225
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member]
Financial assets, Estimated Fair Value
Cash and cash equivalents	94,971	67,225
Fair Value, Inputs, Level 2 [Member] | Carrying Amount [Member]
Financial assets, Estimated Fair Value
Investment securities held to maturity	8,786	6,043
Restricted securities	4,190	6,476
Cash surrender value on life insurance	29,770	3,726
Financial liabilities, Estimated Fair Value
Noninterest-bearing demand	356,618	330,466
Checking plus interest	302,227	239,809
Money market	262,050	232,613
Savings	143,322	148,723
Club	387	387
Bank Deposits		22,084
Certificates of deposit, $100,000 or more	127,600	97,905
Other time	149,130	140,354
Short-term borrowings	1,226	60,812
Long-term borrowings	15,000	15,000
Fair Value, Inputs, Level 2 [Member] | Estimated Fair Value [Member]
Financial assets, Estimated Fair Value
Investment securities held to maturity	8,654	6,000
Restricted securities	4,190	6,476
Cash surrender value on life insurance	29,770	3,726
Financial liabilities, Estimated Fair Value
Noninterest-bearing demand	356,618	330,466
Checking plus interest	302,227	239,809
Money market	262,050	232,613
Savings	143,322	148,723
Club	387	387
Bank Deposits		22,075
Certificates of deposit, $100,000 or more	128,167	96,435
Other time	149,209	136,292
Short-term borrowings	1,226	60,812
Long-term borrowings	15,040	15,012
Fair Value, Inputs, Level 3 [Member] | Carrying Amount [Member]
Financial assets, Estimated Fair Value
Loans, net	1,238,147	1,185,012
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value [Member]
Financial assets, Estimated Fair Value
Loans, net	$ 1,242,867	$ 1,150,418

Financial Instruments with Of_3

Financial Instruments with Off-Balance Sheet Risk (Schedule of Commitments Outstanding) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments outstanding	$ 219,343	$ 217,380
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments outstanding	211,652	210,463
Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments outstanding	$ 7,691	$ 6,917

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - Tidewater Inn [Member] - Director [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Operating Lease, Expense	$ 11
Operating leases, rent expense		$ 27
Avon [Member]
Ownership percentage, LLC	61.00%	61.00%

Parent Company Financial Info_3

Parent Company Financial Information (Condensed Balance Sheets, Parent Only) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Investment securities available for sale, at fair value	$ 122,791	$ 154,432
Premises and equipment, net	23,821	22,711
Other assets	40,572	17,678
TOTAL ASSETS	1,559,235	1,483,076
Liabilities
Other liabilities	4,081	8,415
Short-term borrowings	1,226	60,812
TOTAL LIABILITIES	1,366,433	1,299,891
Stockholders' equity
Common stock	125	127
Additional paid in capital	61,045	65,434
Retained earnings	131,425	120,574
Accumulated other comprehensive loss	207	(2,950)
Total stockholders' equity	192,802	183,185	$ 163,736
Total liabilities and stockholders' equity	1,559,235	1,483,076
Parent Company [Member]
Assets
Cash	7,522	26,583
Investment securities available for sale, at fair value		918
Investment in subsidiaries	183,183	157,855
Premises and equipment, net		3,772
Other assets	2,483	1,593
TOTAL ASSETS	193,188	190,721
Liabilities
Accrued interest payable		1
Other liabilities	386	6,494
Short-term borrowings		1,041
TOTAL LIABILITIES	386	7,536
Stockholders' equity
Common stock	125	127
Additional paid in capital	61,045	65,434
Retained earnings	131,425	120,574
Accumulated other comprehensive loss	207	(2,950)
Total stockholders' equity	192,802	183,185
Total liabilities and stockholders' equity	$ 193,188	$ 190,721

Parent Company Financial Info_4

Parent Company Financial Information (Condensed Statements of Income, Parent Only) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Expenses
Interest expense	$ 9,636	$ 5,272
Income from continuing operations before income taxes	21,894	21,143
Income tax expense (benefit)	5,610	5,380
Income before equity in undistributed net income of subsidiaries	16,284	15,763
NET INCOME	16,198	24,997
Parent Company [Member]
Dividends from subsidiaries		4,000
Management and other fees from subsidiaries	498	2,535
Gain on sale of subsidiary		12,736
Other operating income	66	30
Total income	564	19,301
Expenses
Interest expense	22	54
Salaries and employee benefits	111	1,626
Occupancy and equipment expense		106
Other operating expenses	932	1,274
Total expenses	1,065	3,060
Income from continuing operations before income taxes	(501)	16,241
Income tax expense (benefit)	(131)	4,298
Income before equity in undistributed net income of subsidiaries	(370)	11,943
Equity in undistributed net income of subsidiaries	16,568	13,054
NET INCOME	$ 16,198	$ 24,997

Parent Company Financial Info_5

Parent Company Financial Information (Condensed Statements of Cash Flows, Parent Only) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 16,198	$ 24,997
Adjustments to reconcile net income to cash provided by operating activities:
Stock-based compensation expense	149	447
Gain on sale of subsidiary		12,736
Net decrease in other assets	2,304	(3,258)
Net increase (decrease) in other liabilities	(7,834)	5,590
Net cash provided by operating activities	13,743	18,296
Cash flows from investing activities:
Proceeds from maturities and principal payments of investment securities available for sale	35,447	38,914
Purchases of premises and equipment	(2,244)	(1,133)
Purchases of bank owned life insurance	(25,621)
Net cash (used in) investing activities	(45,678)	(42,455)
Cash flows from financing activities:
Increase in short-term borrowings	(59,586)	39,078
Common stock dividends paid	0	(4,000)
Repurchase of shares for tax withholding on exercised options and vested restricted stock	(88)	(269)
Net cash provided by financing activities	59,681	59,564
Net increase in cash and cash equivalents	27,746	35,405
Cash and cash equivalents at beginning of period	67,225	31,820
Cash and cash equivalents at end of period	94,971	67,225
Parent Company [Member]
Cash flows from operating activities:
Net income	16,198	24,997
Adjustments to reconcile net income to cash provided by operating activities:
Equity in undistributed net income of subsidiaries	(16,568)	(13,054)
Depreciation and amortization		469
Stock-based compensation expense	149	447
Gain on sale of subsidiary		12,736
Net decrease in other assets	(1,093)	1,001
Net increase (decrease) in other liabilities	(6,109)	3,267
Net cash provided by operating activities	(7,423)	4,391
Cash flows from investing activities:
Proceeds from maturities and principal payments of investment securities available for sale		187
Purchases of premises and equipment		(590)
Purchases of bank owned life insurance	(139)
Transfer to subsidiary	(571)
Cash of subsidiary retained upon disposal		726
Proceeds from sale of subsidiary		25,159
Net cash (used in) investing activities	(710)	25,482
Cash flows from financing activities:
Increase in short-term borrowings	(1,041)	375
Common stock dividends paid	(5,347)	(4,079)
Retirement of common stock	(4,452)
Repurchase of shares for tax withholding on exercised options and vested restricted stock	(88)	(269)
Net cash provided by financing activities	(10,928)	(3,973)
Net increase in cash and cash equivalents	(19,061)	25,900
Cash and cash equivalents at beginning of period	26,583	683
Cash and cash equivalents at end of period	7,522	$ 26,583
Supplemental cash flow information:
Transfer of available for sale securities to banking subsidiary	$ 5,032

Revenue Recognition (Noninteres

Revenue Recognition (Noninterest Income) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue Recognition [Abstract]
Service charges on deposit accounts	$ 3,910	$ 3,879
Trust and investment fee income	1,522	1,557
Interchange Income	2,678	2,441
Other noninterest income	1,354	990
Noninterest Income (in-scope of Topic 606)	9,464	8,867
Noninterest Income (out-of-scope of Topic 606)	556	146
Total noninterest income	$ 10,020	$ 9,013