Partners Bancorp (PTRS) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 07, 2019
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity Registrant Name	Delmar Bancorp
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,985,321
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000832090
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 31,483	$ 24,347
Interest bearing deposits in other financial institutions	29,143	4,093
Federal funds sold	15,458	1,254
Cash and cash equivalents	76,084	29,694
Securities available for sale, at fair value	55,854	51,300
Loans, less allowance for credit losses of $7,054 at September 30, 2019 and $7,063 at December 31, 2018	626,607	625,513
Accrued interest receivable on loans and investment securities	2,098	2,103
Premises and equipment, at cost, less accumulated depreciation	10,134	10,048
Federal Home Loan Bank stock, at cost	2,761	2,652
Atlantic Central Bankers Bank stock, at cost	131	131
Other investments	1,571	1,537
Deferred tax asset	2,892	4,829
Other real estate owned	3,641	3,660
Core deposit intangible	843	1,069
Goodwill	5,237	5,237
Other assets	4,990	1,643
Total assets	792,843	739,416
Deposits:
Non interest bearing demand	202,983	185,476
NOW	56,138	54,481
Savings and money market	124,722	123,949
Time, $100,000 or more	127,998	115,030
Other time	148,560	135,990
Deposits, Total	660,401	614,926
Accrued interest payable on deposits	567	392
Short-term borrowings		7,000
Long-term borrowings	48,995	43,489
Notes payable	6,500	6,500
Other liabilities	4,821	1,121
Total liabilities	721,284	673,428
COMMITMENTS, CONTINGENCIES & SUBSEQUENT EVENT
STOCKHOLDERS’ EQUITY
Common stock, par value $.01, authorized 20,000,000 shares, issued and outstanding 9,985,321 as of September 30, 2019 and December 31, 2018	100	100
Surplus	29,486	29,470
Retained earnings	41,335	37,149
Accumulated other comprehensive income (loss), net of tax	638	(731)
Total stockholders’ equity	71,559	65,988
Total liabilities and stockholders’ equity	$ 792,843	$ 739,416

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Allowance for credit losses	$ 7,054	$ 7,063
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,985,321	9,985,321
Common stock, shares outstanding	9,985,321	9,985,321

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
INTEREST INCOME ON:
Loans, including fees	$ 8,688	$ 8,109	$ 25,916	$ 22,696
Investment securities:
Taxable	171	158	518	465
Exempt from Federal income tax	154	137	445	411
Federal funds sold	58	48	81	86
Other interest income	215	140	527	360
TOTAL INTEREST INCOME	9,286	8,592	27,487	24,018
INTEREST EXPENSE ON:
Deposits	1,556	1,006	4,388	2,658
Borrowings	435	396	1,274	1,117
TOTAL INTEREST EXPENSE	1,991	1,402	5,662	3,775
NET INTEREST INCOME	7,295	7,190	21,825	20,243
Provision for credit losses	300	300	900	825
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	6,995	6,890	20,925	19,418
OTHER INCOME:
Service charges on deposit accounts	295	341	861	987
Gain on sale of investment securities	97		97
Gains on disposal of other assets		8		9
Other income	739	434	1,771	1,335
TOTAL OTHER INCOME	1,131	783	2,729	2,331
OTHER EXPENSES:
Salaries and employee benefits	2,788	2,696	8,459	8,165
Premises and equipment	897	785	2,732	2,347
Amortization of core deposit intangible	76	126	226	294
(Gains) losses on other real estate owned	44	41	38	142
Other expenses	1,726	1,545	5,097	5,368
TOTAL OTHER EXPENSES	5,531	5,193	16,552	16,316
INCOME BEFORE TAXES ON INCOME	2,595	2,480	7,102	5,433
Federal and state income taxes	810	592	2,167	1,485
NET INCOME	$ 1,785	$ 1,888	$ 4,935	$ 3,948
Earnings per common share
Basic	$ 0.179	$ 0.189	$ 0.494	$ 0.411

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
NET INCOME	$ 1,785	$ 1,888	$ 4,935	$ 3,948
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX:
Unrealized holding gains (losses) on securities available for sale arising during the period	259	(369)	1,863	(1,340)
Deferred income tax (liabilities) benefits	(69)	98	(494)	355
Other comprehensive income (loss), net of tax	190	(271)	1,369	(985)
TOTAL OTHER COMPREHENSIVE (LOSS) INCOME	190	(271)	1,369	(985)
COMPREHENSIVE INCOME	$ 1,975	$ 1,617	$ 6,304	$ 2,963

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balances at Dec. 31, 2017	$ 82	$ 16,622	$ 32,615	$ (253)	$ 49,066
COMPREHENSIVE INCOME
Net income			3,948		3,948
Other comprehensive loss, net of tax:
Unrealized holding gains (losses) on securities available for sale arising during the period				(985)	(985)
Other comprehensive income, net of tax					(985)
TOTAL COMPREHENSIVE INCOME					2,963
Cash dividends			(698)		(698)
Issuance of common stock upon exercise of stock options		12			12
Common stock issued to shareholders of Liberty Bell Bank	18	12,781			12,799
Stock-based compensation expense recognized in earnings, net of employee tax obligation		26			26
Balances at Sep. 30, 2018	100	29,441	35,865	(1,238)	64,168
Balances at Jun. 30, 2018	100	29,427	34,226	(967)	62,786
COMPREHENSIVE INCOME
Net income			1,888		1,888
Other comprehensive loss, net of tax:
Unrealized holding gains (losses) on securities available for sale arising during the period				(271)	(271)
Other comprehensive income, net of tax					(271)
TOTAL COMPREHENSIVE INCOME					1,617
Cash dividends			(249)		(249)
Common stock issued to shareholders of Liberty Bell Bank		4			4
Stock-based compensation expense recognized in earnings, net of employee tax obligation		10			10
Balances at Sep. 30, 2018	100	29,441	35,865	(1,238)	64,168
Balances at Dec. 31, 2018	100	29,470	37,149	(731)	65,988
COMPREHENSIVE INCOME
Net income			4,935		4,935
Other comprehensive loss, net of tax:
Unrealized holding gains (losses) on securities available for sale arising during the period				1,369	1,369
Other comprehensive income, net of tax					1,369
TOTAL COMPREHENSIVE INCOME					6,304
Cash dividends			(749)		(749)
Stock-based compensation expense recognized in earnings, net of employee tax obligation		16			16
Balances at Sep. 30, 2019	100	29,486	41,335	638	71,559
Balances at Jun. 30, 2019	100	29,481	39,800	448	69,829
COMPREHENSIVE INCOME
Net income			1,785		1,785
Other comprehensive loss, net of tax:
Unrealized holding gains (losses) on securities available for sale arising during the period				190	190
Other comprehensive income, net of tax					190
TOTAL COMPREHENSIVE INCOME					1,975
Cash dividends			(250)		(250)
Stock-based compensation expense recognized in earnings, net of employee tax obligation		5			5
Balances at Sep. 30, 2019	$ 100	$ 29,486	$ 41,335	$ 638	$ 71,559

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Cash dividends per share	$ 0.025	$ 0.025	$ 0.075	$ 0.070

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,935	$ 3,948
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses and unfunded commitments	900	825
Depreciation	864	654
Amortization and accretion	368	461
Net gains on sales of assets	(97)
Net losses on other real estate owned, including write-downs	45	143
Deferred income tax expenses	1,444	737
Stock-based compensation expense, net of employee tax obligation	16	26
Changes in assets and liabilities:
(Increase) decrease in accrued interest receivable	5	(111)
(Increase) decrease in other assets	(3,383)	679
Increase in accrued interest payable	176	77
Increase (decrease) in other liabilities	3,699	(1,253)
Net cash provided by operating activities	8,972	6,186
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of securities available for sale	(12,084)	(8,162)
Proceeds from maturities and paydowns of securities available for sale	9,348	4,743
Proceeds from sales of securities available for sale		2,591
Net increase in loans	(2,204)	(32,130)
Cash received in the purchase of Liberty Bell Bank		11,831
Purchases of premises and equipment	(950)	(1,264)
Cash paid to shareholders of Liberty Bell Bank		(4,471)
Proceeds from the sales of foreclosed assets	184	734
Proceeds from sales of Federal Home Loan Bank stock	810	551
Purchase of Federal Home Loan Bank stock	(919)	(451)
Net cash used by investing activities	(5,815)	(26,028)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in demand, NOW, money market, and savings deposits, net	19,938	(146)
Cash received for the exercise of stock options		12
Increase in time deposits, net	25,538	18,492
Proceeds from borrowings to fund acquisition of Liberty Bell Bank, net of loan costs		4,450
Decrease in borrowings, net	(1,494)	(494)
Dividends paid	(749)	(647)
Net cash provided by financing activities	43,233	21,667
Net increase in cash and cash equivalents	46,390	1,825
Cash and cash equivalents, beginning	29,694	32,582
Cash and cash equivalents, ending	76,084	34,407
Supplementary cash flow information:
Interest paid	5,486	3,663
Income taxes paid	922	1,454
Total appreciation (depreciation) on securities available for sale	1,863	(1,340)
SUPPLEMENTARY NON-CASH INVESTING ACTIVITIES
Fair value of assets acquired, net of cash and cash equivalents		139,701
Fair value of liabilities assumed, net of cash and cash equivalents		139,500
Value of shares provided to Liberty Bell Bank stockholders		12,798
Loans converted to other real estate owned	$ 209	$ 379

Nature of Business and Its Sign

Nature of Business and Its Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Nature of Business and Its Significant Accounting Policies
Nature of Business and Its Significant Accounting Policies	Note 1. Nature of Business and Its Significant Accounting Policies Delmar Bancorp is a bank holding company which owns all the outstanding shares of capital stock of The Bank of Delmarva, a commercial bank operating in Wicomico and Worcester counties in Maryland, Sussex County in Delaware, and Camden and Burlington counties in New Jersey. The Bank provides financial services to individual and corporate customers, and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain Federal and state agencies and undergoes periodic examinations by those regulatory authorities. The accounting policies of the Bank conform to generally accepted accounting principles and practices within the banking industry. Significant accounting policies not disclosed elsewhere in the consolidated financial statements are as follows: Principles of Consolidation: The consolidated financial statements include the accounts of Delmar Bancorp, a bank holding company (the Company); its wholly owned subsidiary — The Bank of Delmarva (the “Bank”), a commercial bank engaged in general commercial banking operations in Maryland, Delaware and New Jersey; Delmarva Real Estate Holdings, LLC., a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; Davie Circle, LLC, a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; Delmarva BK Holdings, LLC, a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; DHB Development, LLC, of which the Bank holds a 40.55% interest, and is a real estate holding company; West Nithsdale Enterprises, LLC, of which the Bank holds a 10% interest, and is a real estate holding company; and FBW, LLC, of which the Bank holds 50% interest, and is also a real estate holding company. All significant intercompany accounts and transactions have been eliminated. Financial Statement Presentation: The unaudited interim consolidated financial statements do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholder's equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position at September 30, 2019 and December 31, 2018, the results of its operations and its cash flows for the nine months ended September 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, or for any other period. Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted within the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Adoption of New Accounting Standard: On January 1, 2019, the Company adopted ASU No. 2016-02, "Leases", utilizing the effective date method under the modified retrospective approach. The Company currently leases seven of its office leases under operating leases and one under a finance lease. The Company's present value of future lease payments, measured on a discounted basis, as of January 1, 2019 was $3.6 million, which was recorded as a right-of-use asset included in other assets with an offsetting liability included in other liabilities on the consolidated balance sheet. Additional disclosures related to lease commitments are provided in Note 5. Securities Available for Sale: Marketable debt and equity securities not classified as held to maturity are classified as available for sale. Securities available for sale are acquired as part of the Bank's asset/liability management strategy and may be sold in response to changes in interest rates, loan demand, changes in prepayment risk, and other factors. Securities available for sale are carried at fair value as determined by quoted market prices. Unrealized gains or losses based on the difference between amortized cost and fair value are reported in other comprehensive income, net of deferred tax. Realized gains and losses, using the specific identification method, are included as a separate component of other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Additionally, declines in the fair value of individual investment securities below their cost that are other than temporary are reflected as realized losses in the consolidated statements of income. Loans and the Allowance for Credit Losses: Loans are generally carried at the amount of unpaid principal, adjusted for unearned loan fees, which are amortized over the term of the loan using the effective interest rate method. Interest on loans is accrued based on the principal amounts outstanding. It is the Bank's policy to discontinue the accrual of interest when a loan is specifically determined to be impaired or when principal or interest is delinquent for ninety days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Cash collections on such loans are applied as reductions of the loan principal balance and no interest income is recognized on those loans until the principal balance has been collected. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. The carrying value of impaired loans is based on the present value of the loan's expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, the value of the underlying collateral, and current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions. Determination of the allowance is inherently subjective, as it requires significant estimates, including the amounts and timing on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least monthly and more often if deemed necessary. The allowance for credit losses typically consists of an allocated component and an unallocated component. The allocated component of the allowance for credit losses reflects expected losses resulting from analyses developed through specific credit allocations for individual loans and historical loss experience for each loan category. The specific credit allocations are based on regular analyses of all loans over a fixed‑dollar amount where the internal credit rating is at or below a predetermined classification. The historical loan loss element is determined statistically using a loss migration analysis that examines loss experience and the related internal gradings of loans charged off over a current 3 year period. The loss migration analysis is performed quarterly and loss factors are updated regularly based on actual experience. The allocated component of the allowance for credit losses also includes consideration of concentrations and changes in portfolio mix and volume. Any unallocated portion of the allowance reflects management's estimate of probable inherent but undetected losses within the portfolio due to uncertainties in economic conditions, delays in obtaining information, including unfavorable information about a borrower's financial condition, the difficulty in identifying triggering events that correlate perfectly to subsequent loss rates, and risk factors that have not yet manifested themselves in loss allocation factors. In addition, the unallocated allowance includes a component that explicitly accounts for the inherent imprecision in loan loss migration models. The historical losses used in the migration analysis may not be representative of actual unrealized losses inherent in the portfolio. It is management's intent to continually refine the methodology for the allowance for credit losses in an attempt to directly allocate potential losses in the loan portfolio under ASC Topic 310 and minimize the unallocated portion of the allowance for credit losses. Loan Charge‑off Policies Loans are generally fully or partially charged down to the fair value of securing collateral when: - management deems the asset to be uncollectible - repayment is deemed to be made beyond the reasonable time frames - the asset has been classified as a loss by internal or external review - the borrower has filed bankruptcy and the loss becomes evident owing to a lack of assets Acquired Loans Loans acquired in connections with business combinations are recorded at their acquisition‑date fair value with no carry over of related allowance for credit losses. Any allowance for loan loss on these pools reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition‑date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans, including the impact of any accretable yield. Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310‑30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments will not be collected. At acquisition, the Company considers several factors as indicator that an acquired loan has evidence of deterioration in credit quality. These factors include; loans 90 days or more past due, loans with an internal risk grade of substandard or below, loans classified as non‑accrual by the acquired institution, and loans that have been previously modified in a troubled debt restructuring. Under the ASC 310‑30 model, the excess of cash flows expected to be collected at acquisition over recorded fair value is referred to as the accretable yield and is the interest component of expected cash flow. The accretable yield is recognized into income over the remaining life of the loan if the timing and/or amount of cash flows expected to be collected can be reasonable estimated (the accretion method). If the timing or amount of cash flows expected to be collected cannot be reasonably estimated, the cost recovery method of income recognition is used. The difference between the loan's total scheduled principal and interest payment over all cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the non‑accretable difference. The non‑accretable difference represents contractually required principal and interest payments which the Company does not expect to collect. Over the life of the loan, management continues to estimate cash flows expected to be collected. Decreases in expected cash flows are recognized as impairments through a charge to the provision for loan losses resulting in an increase in the allowance for loan losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized as interest income on a prospective basis over the loan's remaining life. Acquired loans that were not individually determined to be purchased with deteriorated credit quality are accounted for in accordance with ASC 310‑20, Nonrefundable Fees and Other Costs (ASC 310‑20), whereby the premium or discount derived from the fair market value adjustment, on a loan‑by‑loan or pooled basis, is recognized into interest income on a level yield basis over the remaining expected life of the loan or pool. Other Real Estate Owned (OREO): OREO comprises properties acquired in partial or total satisfaction of problem loans. The properties are recorded at the lower of cost or fair value at the date acquired. Losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. Subsequent write‑downs that may be required and expenses of operation are included in other expenses. Gains and losses realized from the sale of OREO are included in other income. At September 30, 2019 there were seven properties with a combined estimated value of $ 3.6 million included in other real estate owned, and at December 31, 2018 there were nine properties with a combined estimated value of $3.7 million. Intangible Assets and Amortization: During the first quarter of 2018 the Bank acquired Liberty Bell Bank. ASC 350, Intangibles‑Goodwill and Other (ASC 350), prescribes accounting for intangible assets subsequent to initial recognition. Acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to the acquisition are amortized (see Note 12). Accounting for Stock Based Compensation: The Company follows ASC 718‑10, Compensation — Stock Compensation for accounting and reporting for stock‑based compensation plans. ASC 718‑10 defines a fair value at grant date to be used for measuring compensation expense for stock‑based compensation plans to be recognized in the statement of income. Earnings Per Share: Basic earnings per common share are determined by dividing net income adjusted for preferred stock dividends declared and/or accumulated and accretion of warrants by the weighted average number of shares outstanding for each year, giving retroactive effect to stock splits and dividends. Calculations of diluted earnings per common share include the average dilutive common stock equivalents outstanding during the year, unless they are anti‑dilutive. Dilutive common equivalent shares consist of stock options calculated using the treasury stock method and restricted stock awards (See Note 8).

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2019
Investment Securities
Investment Securities	Note 2. Investment Securities Securities available for sale are as follows: September 30, 2019 Dollars in Thousands Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Obligations of U.S. Government agencies and corporations $ 8,184 $ 187 $ 8 $ 8,363 Obligations of States and political subdivisions 24,636 725 29 25,332 Mortgage-backed securities 20,665 120 78 20,707 Equity securities 1,500 — 48 1,452 $ 54,985 $ 1,032 $ 163 $ 55,854 December 31, 2018 Dollars in Thousands Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Obligations of U.S. Government agencies and corporations $ 9,469 $ 47 $ 96 $ 9,420 Obligations of States and political subdivisions 21,383 139 426 21,096 Mortgage-backed securities 19,942 15 553 19,404 Equity securities 1,500 — 120 1,380 $ 52,294 $ 201 $ 1,195 $ 51,300 Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2019 and December 31, 2018, are as follows: September 30, 2019 Dollars in Thousands Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations $ 999 $ 2 $ 2,997 $ 6 $ 3,996 $ 8 Mortgage-backed securities 5,496 21 4,754 57 10,250 78 Obligations of States and political subdivisions 2,522 29 253 — 2,775 29 Equity Securities — — 1,452 48 1,452 48 Total securities with unrealized losses $ 9,017 $ 52 $ 9,456 $ 111 $ 18,473 $ 163 December 31, 2018 Dollars in Thousands Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations $ 3,973 $ 18 $ 5,927 $ 78 $ 9,900 $ 96 Mortgage-backed securities 5,485 111 13,440 442 18,924 553 Obligations of States and political subdivisions 9,119 81 11,977 345 21,096 426 Equity Securities — — 1,380 120 1,380 120 Total securities with unrealized losses $ 18,577 $ 209 $ 32,724 $ 985 $ 51,300 $ 1,195 For individual securities classified as either available for sale or held to maturity, the Bank must determine whether a decline in fair value below the amortized cost basis is other than temporary. In estimating other‑than‑temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near‑term prospects of the issuer, and (iii) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. If the decline in fair value is considered to be other than temporary, the cost basis of the individual security shall be written down to the fair value as a new cost basis and the amount of the write‑down shall be included in earnings (that is, accounted for as a realized loss). Contractual maturities of investment securities at September 30, 2019 are shown below. Actual maturities may differ from contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage‑backed securities have no stated maturity and primarily reflect investments in various Pass‑through and Participation Certificates issued by the Federal National Mortgage Association and the Government National Mortgage Association. Repayment of mortgage‑backed securities is affected by the contractual repayment terms of the underlying mortgages collateralizing these obligations and the current level of interest rates. The following is a summary of maturities, calls, or repricing of securities available for sale: September 30, 2019 Securities Available for Sale Dollars in Thousands Amortized Fair Cost Value Due in one year or less $ 3,023 $ 3,018 Due after one year through five years 2,491 2,489 Due after five years through ten years 12,680 13,139 Due after ten years or more 16,126 16,502 Mortgage-backed, due in monthly installments 20,665 20,706 $ 54,985 $ 55,854

Loans, Allowance for Credit Los

Loans, Allowance for Credit Losses and Impaired Loans	9 Months Ended
	Sep. 30, 2019
Loans, Allowance for Credit Losses and Impaired Loans
Loans, Allowance for Credit Losses and Impaired Loans	Note 3. Loans, Allowance for Credit Losses and Impaired Loans Major categories of loans as of September 30, 2019 and December 31, 2018 are as follows: (Dollars in thousands) At September 30, 2019 At December 31, 2018 Originated Loans Other real estate secured $ 369,039 $ 356,141 1 - 4 Family residential secured 120,160 116,771 Other 51,643 48,960 540,842 521,872 Acquired Loans Other real estate secured $ 56,698 $ 70,080 1 - 4 Family residential secured 23,120 29,532 Other 13,669 12,420 93,487 112,032 Total Loans Other real estate secured $ 425,737 $ 426,221 1 - 4 Family residential secured 143,280 146,303 Other 65,312 61,379 634,329 633,903 Less: Unamortized discounts on acquired loans (668) (1,327) Less: Allowance for loan losses (7,054) (7,063) $ 626,607 $ 625,513 Allowance for Loan Losses Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Bank has segmented the loan portfolio into the following classifications: · Other Real Estate Secured o Commercial Real Estate o Construction and Land Development o Farmland o Multifamily · 1 – 4 Family Residential Secured · Other o Commercial and Industrial o Consumer Loans o Other Loans Each of these segments are reviewed and analyzed quarterly using the weighted average historical charge‑offs over a current three year period for their respective segments as well as the following qualitative factors: · Changes in the levels and trends in delinquencies, non‑accruals, classified assets and troubled debt restructurings · Changes in the nature and volume of the portfolio · Effects of any changes in lending policies, procedures, including underwriting standards and collections, charge off and recovery practices · Changes in the experience, depth and ability of management · Changes in the national and local economic conditions and developments, including the condition of various market segments · Changes in the concentration of credits within each pool · Changes in the quality of the Bank's loan review system and the degree of oversight by the Board · Changes in external factors such as competition and the legal environment. The above factors result in a FAS 5, as codified in FASB ASC 450‑10‑ 20, calculated reserve for environmental factors. All credit exposures graded at a rating of “5”, “6”, “7” or “8” with outstanding balances less than or equal to $250,000 and credit exposures graded at a rating of “1”, “2”, “3” or “4” are reviewed and analyzed quarterly using the weighted average historical charge‑offs over a current three year period as a percentage of total charge‑offs for the same period for their respective segments as well as the qualitative factors discussed above. The weighted average historical percentage is further adjusted based on delinquency risk trend assessments and concentration risk assessments. All credit exposures graded at a rating of “5”, “6”, “7” or “8” with outstanding balances greater than $250,000 are to be reviewed no less than quarterly for the purpose of determining if a specific allocation is needed for that credit. The determination for a specific reserve is measured based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases management uses the current fair value of the collateral, less selling cost when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the loan is less than the recorded investment in the loan (net of previous charge‑offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge‑off to the allowance. The establishment of a specific reserve does not necessarily mean that the credit with the specific reserve will definitely incur loss at the reserve level. It is only an estimation of potential loss based upon anticipated events. A specific reserve will not be established unless loss elements can be determined and quantified based on known facts. The total allowance reflects management's estimate of loan losses inherent in the loan portfolio as of September 30, 2019 and December 31, 2018. The following tables include impairment information relating to loans and the allowance for credit losses as of September 30, 2019 and and December 31, 2018: Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total September 30, 2019 Individually evaluated for impairment: Balance in allowance $ 47 $ 251 $ 639 $ — $ 937 Related loan balance 14,114 4,102 1,218 — 19,434 Collectively evaluated for impairment: Balance in allowance $ 4,346 $ 1,210 $ 102 $ 459 $ 6,117 Related loan balance 411,215 139,084 63,928 — 614,227 Note: The balances above include unamortized discounts on acquired loans of $668,000. Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total December 31, 2018 Individually evaluated for impairment: Balance in allowance $ 278 $ 586 $ 178 $ — $ 1,042 Related loan balance 14,947 8,775 1,732 — 25,454 Collectively evaluated for impairment: Balance in allowance $ 3,998 $ 1,057 $ 476 $ 490 $ 6,021 Related loan balance 410,527 137,192 59,403 — 607,122 Note: The balances above include unamortized discounts on acquired loans of $1.3 million. The following tables provide a summary of the activity in the allowance for credit losses allocated by loan class for the the three and nine months ended September 30, 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. September 30, 2019 Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total Quarter Ended Beginning Balance $ 4,359 $ 1,343 $ 634 $ 730 $ 7,066 Charge-offs — — (454) — (454) Recoveries 84 24 34 — 142 Provision (50) 94 527 (271) 300 Ending Balance 4,393 1,461 741 459 7,054 Nine Months Ended Beginning Balance 4,276 1,643 654 490 7,063 Charge-offs (421) (198) (632) — (1,251) Recoveries 97 165 80 — 342 Provision 441 (149) 639 (31) 900 Ending Balance 4,393 1,461 741 459 7,054 September 30, 2018 Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total Quarter Ended Beginning Balance $ 4,434 $ 1,887 $ 444 $ 331 $ 7,096 Charge-offs (143) — (84) — (227) Recoveries 9 19 28 — 56 Provision 142 29 29 100 300 Ending Balance 4,442 1,935 417 431 7,225 Nine Months Ended Beginning Balance 3,858 1,744 536 565 6,703 Charge-offs (347) (52) (202) — (601) Recoveries 77 143 78 — 298 Provision 854 100 5 (134) 825 Ending Balance 4,442 1,935 417 431 7,225 The Bank had an unallocated amount (overage) of approximately $459,000 in the allowance that is reflected in the above table as of September 30, 2019. The Bank had an unallocated amount (overage) of approximately $431,000 in the allowance that is reflected in the above table as of September 30, 2018. Management is comfortable with this amount as they feel it is adequate to absorb additional inherent but as yet unidentified losses in the loan portfolio. Credit Quality Information The following table represents credit exposures by creditworthiness category at September 30, 2019 and December 31, 2018. The use of creditworthiness categories to grade loans permits management to estimate a portion of credit risk. The Bank's internal creditworthiness is based on experience with similarly graded credits. Loans that trend upward toward higher credit grades typically have less credit risk and loans that migrate downward typically have more credit risk. The Bank's internal risk ratings are as follows: 1 Excellent — minimal risk. Normally supported by pledged deposits, United States government securities, etc. 2 Superior — low risk. All of the risks associated with this credit based on each of the bank's creditworthiness criteria are minimal. 3 Good — moderately low risk. Most of the risks associated with this credit based on each of the bank's creditworthiness criteria are minimal. 4 Fair/Watch — moderate risk. The weighted overall risk associated with this credit based on each of the bank's creditworthiness criteria is acceptable. 5 Marginal — moderately high risk. (possesses deficiencies which corrective action by the bank would remedy; potential watch list) 6 Substandard — The bank is inadequately protected and there exists the distinct possibility of sustaining some loss if not corrected. 7 Doubtful — Weaknesses make collection or liquidation in full, based on currently existing facts, improbable. 8 Loss — Of little value; not warranted as a bankable asset. Non‑accruals In general, a loan will be placed on non‑accrual status at the end of the reporting month in which the interest or principal is past due more than 90 days. Exceptions to the policy are those loans that are in the process of collection and are well-secured. A well‑secured loan is secured by collateral with sufficient market value to repay principal and all accrued interest. A summary of loans by risk rating is as follows: 1 - 4 Family Other Real Residential September 30, 2019 Estate Secured Secured Other Total Dollars in Thousands Excellent $ 1,098 $ — $ 6,357 $ 7,455 Superior 3,851 254 1,874 5,979 Good 404,785 136,693 53,530 595,008 Fair 7,968 2,977 1,619 12,564 Marginal — — — — Substandard 7,628 3,261 1,766 12,655 TOTAL $ 425,330 $ 143,185 $ 65,146 $ 633,661 Non-Accrual $ 2,806 $ 2,107 $ 214 $ 5,127 Troubled debt restructures $ 8,178 $ 2,443 $ 166 $ 10,787 Breakdown of TDRs TDRs on Non-accrual $ 1,120 $ 918 $ 166 $ 2,204 TDRs Past Due 30-89 — 213 — 213 Performing TDRs 7,058 1,312 — 8,370 TOTAL $ 8,178 $ 2,443 $ 166 $ 10,787 Total Non-performing TDR accounts $ 1,120 $ 1,131 $ 166 $ 2,417 1 - 4 Family Other Real Residential December 31, 2018 Estate Secured Secured Other Total Dollars in Thousands Excellent $ 1,143 $ — $ 9,756 $ 10,899 Superior 7,523 267 2,015 9,805 Good 402,092 133,401 45,802 581,295 Fair 8,084 4,598 2,106 14,788 Marginal 407 112 268 787 Substandard 7,071 7,589 343 15,003 TOTAL $ 426,319 $ 145,967 $ 60,290 $ 632,576 Non-Accrual $ 4,423 $ 4,547 $ 178 $ 9,148 Troubled debt restructures $ 10,341 $ 7,269 $ 206 $ 17,816 Breakdown of TDRs TDRs on Non-accrual $ 2,546 $ 3,290 $ 175 $ 6,012 TDRs Past Due 30-89 640 — 31 671 Performing TDRs 7,155 3,979 — 11,134 TOTAL $ 10,341 $ 7,269 $ 206 $ 17,816 Total Non-performing TDR accounts $ 3,186 $ 3,290 $ 206 $ 6,682 The following table includes an aging analysis of the recorded investment of past due financing receivables as of September 30, 2019 and December 31, 2018: Recorded Investment Greater than Total >90 Days 30 - 59 Days 60 - 89 Days 90 Days Total Current Financing Past Due At September 30, 2019 Past Due* Past Due** Past Due*** Past Due Balance Receivables and Accruing Dollars in Thousands Other Real Estate Secured $ 569 $ — $ 2,005 $ 2,574 $ 423,163 $ 425,737 $ — 1 - 4 Family Residential 1,696 619 616 2,931 140,349 143,280 — Other 158 20 — 178 65,134 65,312 — TOTAL $ 2,423 $ 639 $ 2,621 $ 5,683 $ 628,646 $ 634,329 $ — * Includes $ 1.2 million of non‑accrual loans. ** Includes $ 117,000 of non-accrual loans. *** Includes $2.6 million of nonacrual loans. Total financing receivable balances do not include unamortized discounts of $668,000. Recorded Investment Greater than Total >90 Days 30 - 59 Days 60 - 89 Days 90 Days Total Current Financing Past Due At December 31, 2018 Past Due Past Due Past Due* Past Due Balance Receivables and Accruing Dollars in Thousands Other Real Estate Secured $ 876 $ 1,742 $ 3,129 $ 5,747 $ 420,474 $ 426,221 $ 338 1 - 4 Family Residential 1,292 383 1,722 3,397 142,906 146,303 — Other 1,035 33 268 1,336 60,043 61,379 268 TOTAL $ 3,203 $ 2,158 $ 5,119 $ 10,480 $ 623,423 $ 633,903 $ 606 * Includes $4.5 million of non‑accrual loans. Total financing receivable balances do not include unamortized discounts of $1.3 million. Impaired Loans Impaired loans are defined as non‑accrual loans, troubled debt restructurings, purchase credit impaired loans (“PCI”) and loans risk rated a “6” or above. When management identifies a loan as impaired, the impairment is measured for potential loss based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases management used the current fair value of the collateral, less selling cost when foreclosure is probable, instead of discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge‑offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge‑off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on non‑accrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on non‑accrual status, contractual interest is credited to interest income when received, under the cash basis method. The following table includes the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable. Management determined the specific reserve in the allowance based on the present value of expected future cash flows, discounted at the loan's effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the specific allowance recorded. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on non‑accrual status, all payments are applied to principal, under the cost recovery method. Unpaid Interest Average Recorded Principal Income Specific Recorded September 30, 2019 Investment Balance Recognized Reserve Investment Dollars in Thousands Impaired loans with specific reserves: Other Real Estate Secured $ 2,278 $ 2,278 $ 188 $ 47 $ 2,777 1 - 4 Family Residential Secured 738 738 — 251 2,343 Other 214 214 11 639 129 Total impaired loans with specific reserves $ 3,230 $ 3,230 $ 199 $ 937 $ 5,249 Impaired loans with no specific reserve: Other Real Estate Secured $ 12,339 $ 12,815 $ 768 $ — $ 12,594 1 - 4 Family Residential Secured 4,261 5,041 158 — 5,011 Other 2,325 2,325 110 — 2,065 Total impaired loans with no specific reserve $ 18,925 $ 20,181 $ 1,036 — — $ 19,670 TOTAL $ 22,155 $ 23,411 $ 1,235 $ 937 $ 24,919 Total impaired loans of $ 22.2 million at September 30, 2019 include PCI loan balances of $810,000 , which are net of a discount of $257,000 . Total impaired loans also included $1 .9 million of loans which did not meet the criteria whereby an individual evaluation for impairment was required. These loans were pooled with all other loans not requiring an evaluation for individual impairment and reviewed and analyzed using the weighted average historical charge‑offs over a current three year period for their respective segments along with the qualitative factors stated previously in this disclosure, to result in a ASC 450‑10‑20 (FAS 5) calculated reserve. Unpaid Interest Average Recorded Principal Income Specific Recorded December 31, 2018 Investment Balance Recognized Reserve Investment Dollars in Thousands Impaired loans with specific reserves: Other Real Estate Secured $ 3,276 $ 3,276 $ 246 $ 412 $ 3,690 1 - 4 Family Residential Secured 3,947 4,075 174 586 4,989 Other 44 44 2 44 22 Total impaired loans with specific reserves $ 7,267 $ 7,395 $ 422 $ 1,042 $ 8,701 Impaired loans with no specific reserve: Other Real Estate Secured $ 12,849 $ 13,905 $ 1,016 $ — $ 10,691 1 - 4 Family Residential Secured 5,761 7,011 256 — 3,902 Other 1,805 1,805 112 — 1,080 Total impaired loans with no specific reserve $ 20,415 $ 22,721 $ 1,384 $ — $ 15,672 TOTAL $ 27,682 $ 30,116 $ 1,806 $ 1,042 $ 24,374 All acquired loans were initially recorded at fair value at the acquisition date. The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows: Dollars in Thousands September 30, 2019 December 31, 2018 Accountable for under ASC 310-30 (PCI loans) Outstanding balance $ 1,067 $ 1,692 Carrying amount 810 1,110 Accountable for under ASC 310-20 (non-PCI loans) Outstanding balance $ 92,420 $ 110,340 Carrying amount 92,009 109,595 Total acquired loans Outstanding balance $ 93,487 $ 112,032 Carrying amount 92,819 110,705 The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310‑20: Dollars in Thousands September 30, 2019 December 31, 2018 Balance at beginning of period $ 745 $ — Acquisitions — 1,703 Accretion (335) (958) Balance at end of period $ 410 $ 745 During the three and nine months ended September 30, 2019, the Company recorded $24,000 and $80,000, respectively in accretion on acquired loans accounted for under ASC 310-30. During the three and nine months ended September 30, 2018, the Company recorded $33,000 and $65,000, respectively in accretion on acquired loans accounted for under ASC 310-30. Non‑accretable yield on purchased credit impaired loans was $232,000 and $463,000 at September 30, 2019 and December 31, 2018, respectively. Concentration of Risk: The Bank makes loans to customers located primarily within Wicomico and Worcester Counties, Maryland, Sussex County, Delaware and Camden and Burlington Counties, New Jersey. A substantial portion of its loan portfolio consists of residential and commercial real estate mortgages. The Bank had no commitments to loan additional funds to the borrowers of restructured, impaired, or non‑accrual loans as of September 30, 2019 and December 31, 2018.

Credit Facilities

Credit Facilities	9 Months Ended
	Sep. 30, 2019
Credit Facilities
Credit Facilities	Note 4. Credit Facilities The Bank owns capital stock of the Federal Home Loan Bank of Atlanta (FHLB) as a condition for a $1 92.4 million convertible advance credit facility from the FHLB. As of September 30, 2019 the Bank had remaining credit availability of $143.4 million under this facility. The following table details the long-term advances the Company had outstanding with the FHLB at September 30, 2019 and December 31, 2018: September 30, 2019 Dollars in Thousands Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid 15,000 2.09 % June 2020 Fixed, paid monthly Fixed rate hybrid 5,000 3.04 % November 2020 Fixed, paid monthly Fixed rate hybrid 5,000 2.91 % November 2020 Fixed, paid quarterly Fixed rate hybrid 6,000 2.44 % April 2021 Fixed, paid quarterly Convertible* 10,000 2.68 % May 2021 Fixed, paid quarterly Fixed rate hybrid 5,000 3.15 % October 2022 Fixed, paid quarterly Principal reducing credit 1,500 1.62 % March 2023 Fixed, paid quarterly Principal reducing credit 1,495 1.99 % March 2026 Fixed, paid quarterly Total long-term advances 48,995 December 31, 2018 Dollars in Thousands Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid 15,000 1.51 % June 2019 Fixed, paid monthly Fixed rate hybrid 5,000 3.04 % November 2020 Fixed, paid monthly Fixed rate hybrid 5,000 2.91 % November 2020 Fixed, paid quarterly Convertible* 10,000 2.68 % May 2021 Fixed, paid quarterly Fixed rate hybrid 5,000 3.15 % October 2022 Fixed, paid quarterly Principal reducing credit 1,821 1.62 % March 2023 Fixed, paid quarterly Principal reducing credit 1,668 1.99 % March 2026 Fixed, paid quarterly Total long-term advances 43,489 * The FHLB has the option of converting the rate on this long-term borrowing to a three month LIBOR-based floating rate in May 2020. Average short‑term borrowing under FHLB approximated $ 3.2 million and $1.4 million for the nine months ended September 30, 2019 and the year ended December 31, 2018, respectively. The Bank has pledged a portion of its residential and commercial mortgage loan portfolio as collateral for these credit facilities. Principal balances outstanding on these pledged loans totaled approximately $15 7.2 million and $135.3 million at September 30, 2019 and December 31, 2018, respectively. In addition to the FHLB credit facility, in October 2015, the Company entered into a subordinated loan agreement for an aggregate principal amount of $2.0 million. Interest‑only payments are due quarterly at 6.71% per annum, and the outstanding principal balance matures in October 2025. In January 2018, the Company entered into a subordinated loan agreement for an aggregate principal amount of $4.5 million to fund the acquisition of Liberty Bell Bank, net of loan costs. Interest‑only payments are due quarterly at 6.875% per annum, and the outstanding principal balance matures in April 2028. The proceeds of these long‑term borrowings were generally used to purchase higher yielding investment securities, fund additional loans, redeem preferred stock, or fund acquisitions. Additionally, the Bank has secured credit availability of $5.0 million with a correspondent bank and an unsecured credit availability of $5.0 million with a correspondent bank for short‑term liquidity needs, if necessary. The secured facility must be collateralized by specific securities at the time of any usage. At September 30, 2019 and December 31, 2018, there were no borrowings outstanding under these credit agreements. Maturities on long‑term debt over the next five years are as follows (dollars in thousands): 2019 $ 165 2020 25,659 2021 16,659 2022 5,659 2023 337

Lease Commitments

Lease Commitments	9 Months Ended
	Sep. 30, 2019
Lease Commitments
Lease Commitments	Note 5. Lease Commitments The Bank adopted ASU 2016-02, Leases (Topic 842), on January 1, 2019, using a modified-retrospective approach, whereby comparative periods were not restated. No cumulative effect adjustment to the opening balance of retained earnings was required. The Bank also elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things allowed the Bank to carry forward the historical lease classifications. Additionally, the Bank elected the hindsight practical expedient to determine the lease term for existing leases. The Bank leases eight locations for administrative offices and branch locations. Seven leases were classified as operating leases and one as a finance lease. Leases with an initial term of 12 months or less as well as leases with a discounted present value of future cash flows below $25,000 are not recorded on the balance sheet and the related lease expense is recognized over the lease term. The Bank elected to use the practical expedient to not recognize short-term leases on the consolidated balance sheet and instead account for them as executory contracts. Certain leases include options to renew, with renewal terms that can extend the lease term, typically for five years. Lease assets and liabilities include related options that are reasonably certain of being exercised. The Bank has determined that it will place a limit on exercises of available lease renewal options that would extend the lease term up to a maximum of fifteen years, including the initial term. The depreciable life of leased assets are limited by the expected lease term. Adoption of this standard resulted in the Company recognizing a right of use asset and a corresponding lease liability of $3.6 million on January 1, 2019. Supplemental lease information at or for the nine months ended September 30, 2019 is as follows: Balance Sheet Dollars in Thousands Right-of-use asset classified as premises and equipment $ 3,274 Lease liability classified as other liabilities 3,314 Income Statement Operating lease cost classified as premises and equipment $ 364 Weighted average lease term, in years 7.55 Weighted average discount rate (1) 3.28 % Operating cash flows $ 376 (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the Federal Home Loan Bank of Atlanta for a term correlating to the remaining life of each lease. Management believes this rate closely mirrors its incremental borrowing rate for similar terms. A maturity analysis of the Company's lease liabilities at September 30, 2019 was as follows: Dollars in Thousands One year or less $ 468 One to three years 772 Three to five years 714 Over 5 years 2,002 Total lease payments 3,956 Less: Interest (642) Present value of lease liabilities $ 3,314

Stock Option Plans

Stock Option Plans	9 Months Ended
	Sep. 30, 2019
Stock Option Plans
Stock Option Plans	Note 6. Stock Option Plans Delmar Bancorp Stock Option Plan The Bank had employee and director stock option plans and had reserved shares of stock for issuance thereunder. Options granted under these plans had a ten‑year life with a four‑year vesting period that began one year after date of grant, and were exercisable at a price equal to the fair value of the Company's stock on the date of the grant. Each award from all plans was evidenced by an award agreement that specifies the option price, the duration of the option, the number of shares to which the option pertains, and such other provisions as the grantor determines. The plan term ended in 2014, therefore no new options can be granted. No stock options were exercised during the the nine months ended September 30, 2019. All remaining stock options expired during the second quarter of 2019. Liberty Bell Bank Stock Option Plans In 2004 Liberty Bell Bank adopted the 2004 Incentive Stock Option Plan and the 2004 Non‑Qualified Stock Option Plan, which were stock‑based incentive compensation plans (the Plans). In February 2014 the Plans expired pursuant to their terms. Options under these plans had a 10 year life and vested over 5 years. Remaining options under these plans became fully vested with the approval by the board of directors of Liberty signing the Agreement of Merger with Delmar Bancorp in July 2017. In accordance with the terms of the Agreement of Merger between Delmar and Liberty, the Plan was assumed by Delmar, and the options were converted into and became an option to purchase an adjusted number of shares of the common stock of Delmar at an adjusted exercise price per share. The number of shares was determined by multiplying the number of shares of Liberty common stock for which the option was exercisable by the number of shares of Delmar common stock into which shares of Liberty common stock were convertible in the Merger, which was 0.2857 (the “Conversion Ratio”), rounded to the next lower whole share. The exercise price was determined by dividing the exercise price per share of Liberty common stock by the Conversion Ratio, rounded up to the nearest cent. At the effective time of the merger there were 48,225 options outstanding at an exercise price of $1.18. These shares were converted to 13,771 options outstanding at an exercise price of $4.14. Remaining options for 8,709 shares were outstanding as follows: Employees Directors Average Average Shares Price Amount Shares Price Amount September 30, 2019 2,355 $ 4.14 $ 9,750 6,354 $ 4.14 $ 26,306 As stated in Note 1, the Company follows ASC Topic 718‑10 which requires that stock‑based compensation to employees and directors be recognized as compensation cost in the income statement based on their fair values on the measurement date, which, for the Company, is the date of the grant. All stock option expenses had been fully recognized prior to 2018. No stock options were exercised or forfeited during the nine months ended September 30, 2019. All remaining stock options expire during the first quarter of 2023.

Restricted Stock Plan

Restricted Stock Plan	9 Months Ended
	Sep. 30, 2019
Restricted Stock Plan
Restricted Stock Plan	Note 7. Restricted Stock Plan The Bank had an employee and director restricted stock plan and reserved 405,805 shares of stock for issuance thereunder. The Company adopted the Plan, pursuant to which employee and directors of the Company could acquire shares of common stock. The Plan was adopted by the Company's Board of Directors in April 2014, and was subject to the right of the Board of Directors to terminate the Plan at any time, terminated on June 30, 2018. The termination of the Plan, either at the scheduled termination date or before such date, did not affect any award issued prior to termination. As of September 30, 2019 non‑vested restricted stock awards totaling 6,000 were outstanding as follows: Employees Weighted Average Shares Fair Value Nonvested Awards December 31, 2018 9,000 $ 7.30 Vested in 2019 (3,000) 7.30 Nonvested Awards September 30, 2019 6,000 $ 7.30 As stated in Note 1, the Company follows ASC Topic 718‑10 which requires that restricted stock‑based compensation to employees and directors be recognized as compensation cost in the income statement based on their fair values on the measurement date. The fair value of restricted stock granted is equal to the underlying fair value of the stock. As a result of applying the provisions of ASC Topic 718‑10, during the three and nine months ended September 30, 2018 the Company recognized restricted stock‑based compensation expense of $ 10,000 , or $7,000 net of tax, and $ 26,000 , or $ 19,000 net of tax, respectively, related to the 2014 restricted stock awards. During the three and nine months ended September 30, 2019 the Company recognized stock‑based compensation expense of $5,000 or $4,000 net of tax, and $16,000, or $12,000 net of tax, respectively, related to the 2014 restricted stock awards. Unrecognized restricted stock‑based compensation expense related to 2014 restricted stock awards totaled approximately $31,000 at September 30, 2019. The remaining period over which this unrecognized expense is expected to be recognized is approximately two years.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share
Earnings Per Share	Note 8. Earnings Per Share Diluted earnings per share are calculated as follows: Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income applicable to basic earnings per common share $ 1,785 $ 1,888 $ 4,935 $ 3,948 Weighted average shares outstanding 9,985 9,976 9,985 9,595 Basic earnings per share $ 0.179 $ 0.189 $ 0.494 $ 0.411 Effect of dilutive securities: Weighted average shares outstanding under options Delmar 2004 stock option plan (1) — 23 10 28 Weighted average exercise price per share $ — $ 7.54 $ 9.05 $ 9.55 Assumed proceeds on exercise $ — $ 173 $ 91 $ 267 Average market value per share $ 7.42 $ 7.79 $ 7.34 $ 7.47 Weighted average shares outstanding under options Liberty 2004 stock option plan 12 14 12 12 Weighted average exercise price per share $ 3.98 $ 4.01 $ 3.98 $ 4.02 Assumed proceeds on exercise $ 48 $ 56 $ 48 $ 48 Average market value per share $ 7.42 $ 7.79 $ 7.34 $ 7.47 Less: Treasury stock purchased with assumed proceeds from exercise $ 6 $ 7 $ 6 $ 6 Weighted average shares outstanding under restricted stock plans (2) 9 14 9 10 Diluted weighted average shares and common stock equivalents 10,000 9,997 10,000 9,611 Diluted earnings per share $ 0.179 $ 0.189 $ 0.494 $ 0.411 (1) Options were excluded from the calculation of dilutive earnings per share because they are anti‑dilutive. (2) Includes vested shares not yet issued and nonvested shares as of September 30.

Regulatory Capital Requirements

Regulatory Capital Requirements	9 Months Ended
	Sep. 30, 2019
Regulatory Capital Requirements
Regulatory Capital Requirements	Note 9. Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by 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 Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital adequacy guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off‑balance‑sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (as defined in the regulations) of total and Tier I capital to risk‑weighted assets, Tier I capital to average assets, and beginning in 2015, common equity Tier I capital to risk‑weighted assets. Management believes as of September 30, 2019 that the Company and the Bank meet all capital adequacy requirements to which they are subject. As of September 30, 2019, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk‑based, Tier I risk‑based, Tier I leverage and, beginning in 2015, common equity Tier I risk‑based ratios. There are no conditions or events since that notification that management believes have changed the Bank's category. The Common Equity Tier I, Tier I and Total capital ratios are calculated by dividing the respective capital amounts by risk‑weighted assets. Risk‑weighted assets are calculated based on regulatory requirements and include total assets, with certain exclusions, allocated by risk weight category, and certain off‑balance‑sheet items, among other things. The leverage ratio is calculated by dividing Tier I capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. When fully phased in on January 1, 2019, the Basel III Capital Rules required the Bank and Bancorp to maintain (i) a minimum ratio of Common Equity Tier I capital to risk‑weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier I capital ratio as that buffer is phased in, effectively resulting in a minimum ratio of Common Equity Tier I capital to risk‑weighted assets of at least 7.0% upon full implementation), (ii) a minimum ratio of Tier I capital to risk‑weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier I capital ratio as that buffer is phased in, effectively resulting in a minimum Tier I capital ratio of 8.5% upon full implementation), (iii) a minimum ratio of Total capital (that is, Tier I plus Tier 2) to risk‑weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier I capital to average quarterly assets. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reached 2.5% on January 1, 2019). The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Bank or Bancorp. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk‑weighted capital ratios. Banking institutions with a ratio of Common Equity Tier I capital to risk‑weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The following table presents actual and required capital ratios as of September 30, 2019 and December 31, 2018 for the Bank and Company under the Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of September 30, 2019 and December 31, 2018 based on the phase‑in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules were fully phased‑in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. A comparison of the Company's and the Bank's capital amounts and ratios as of September 30, 2019 and December 31, 2018 with the minimum requirements are presented below. To Be Well Capitalized For Capital Under Prompt Adequacy Corrective Action In Thousands Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019 Total Capital Ratio (To Risk Weighted Assets) Delmar Bancorp $ 78,392 12.6 % $ 65,525 10.5 % $ — N/A The Bank of Delmarva 77,192 12.4 % 65,469 10.5 % 62,351 10.0 % Tier I Capital Ratio (To Risk Weighted Assets) Delmar Bancorp 64,573 10.3 % 53,044 8.5 % — N/A The Bank of Delmarva 69,873 11.2 % 52,999 8.5 % 49,881 8.0 % Common Equity Tier I Ratio (To Risk Weighted Assets) Delmar Bancorp 64,573 10.3 % 43,683 7.0 % — N/A The Bank of Delmarva 69,873 11.2 % 43,646 7.0 % 40,528 6.5 % Tier I Leverage Ratio (To Average Assets) Delmar Bancorp 64,573 8.3 % 31,052 4.0 % — N/A The Bank of Delmarva 69,873 9.0 % 31,052 4.0 % 38,814 5.0 % As of December 31, 2018 Total Capital Ratio (To Risk Weighted Assets) Delmar Bancorp $ 72,344 11.8 % $ 60,466 9.9 % $ — N/A The Bank of Delmarva 71,498 11.7 % 60,425 9.9 % 61,190 10.0 % Tier I Capital Ratio (To Risk Weighted Assets) Delmar Bancorp 58,516 9.6 % 48,220 7.9 % — N/A The Bank of Delmarva 64,170 10.5 % 48,187 7.9 % 48,952 8.0 % Common Equity Tier I Ratio (To Risk Weighted Assets) Delmar Bancorp 58,516 9.6 % 39,035 6.4 % — N/A The Bank of Delmarva 64,170 10.5 % 39,009 6.4 % 39,774 6.5 % Tier I Leverage Ratio (To Average Assets) Delmar Bancorp 58,516 8.0 % 29,377 4.0 % — N/A The Bank of Delmarva 64,170 8.7 % 29,377 4.0 % 36,721 5.0 % Banking regulations also limit the amount of dividends that may be paid without prior approval of the Bank's regulatory agencies. Regulatory approval is required to pay dividends, which exceed the Bank's net profits for the current year plus its retained net profits for the preceding two years.

Fair Values of Financial Instru

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2019
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 10. Fair Values of Financial Instruments The following table shows the estimated fair value and the related carrying values of the Company's financial instruments at September 30, 2019 and December 31, 2018. Items that are not financial instruments are not included. September 30, December 31, Dollars are in thousands 2019 2018 Estimated Estimated Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 31,483 $ 31,483 $ 24,347 $ 24,347 Interest bearing deposits 29,143 29,143 4,093 4,093 Federal funds sold 15,458 15,458 1,254 1,254 Securities: Available for sale 55,854 55,854 51,300 51,300 Loans, net of allowance for credit losses 626,607 612,003 625,513 604,290 Accrued interest receivable 2,098 2,098 2,103 2,103 Federal Home Loan Bank stock 2,761 2,761 2,652 2,652 Atlantic Central Bankers stock 131 131 131 131 Other investments 1,571 1,571 1,537 1,537 Financial liabilities: Deposits $ 660,401 $ 629,813 $ 614,926 $ 570,509 Accrued interest payable 567 567 392 392 FHLB advances and note payable 55,495 56,065 56,989 56,979 Unrecognized financial instruments: Commitments to extend credit $ 104,101 $ 104,101 $ 114,395 $ 114,395 Standby letters of credit 1,853 1,853 3,276 3,276 For purposes of the above disclosures of estimated fair value, the following assumptions were used. Cash and cash equivalents: The estimated fair value for cash and due from banks, interest‑bearing deposits in other banks, and Federal funds purchased is considered to approximate cost because of their short‑term nature. Investment securities: Estimated fair values are based on quoted market prices for actual or similar instruments or estimated using discounted cash flows. The discounts used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the audit risk, overhead costs, and optionality of such investments. Loans: The estimated fair value for certain homogeneous categories of loans, such as residential mortgages, is based on the quoted market price for securities backed by similar loans, adjusted for differences in loan characteristics. The estimated fair value of other loans is determined by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Deposits: The estimated fair value of deposits with no stated maturity, such as noninterest‑bearing demand deposits, savings, NOW accounts and money market accounts, is equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The fair value of certificates of deposit is based on the rates currently offered for deposits of similar maturities and using a discounted cash flow analysis. The fair value estimates do not include the benefit that results from the low‑cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. Borrowings: The fair value of long‑term fixed rate borrowings is estimated by discounting future cash flows using current interest rates currently offered for similar financial instruments. Unrecognized financial instruments: The fair value of unrecognized financial instruments would be estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the current interest rates, and the present creditworthiness of the customers. Other assets and liabilities: Other assets and liabilities of the Bank that are not defined as financial instruments are not included in the above disclosures, such as property and equipment. Also, non‑financial instruments typically not recognized in the financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earnings power of core deposit accounts, the trained work force, customer goodwill, and similar items. The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company's financial instruments not disclosed elsewhere as of September 30, 2019 and December 31, 2018. This table excludes financial instruments for which the carrying amount approximates fair value. Dollars are in thousands Fair Value Hierarchy Carrying Fair Amount Value Level 1 Level 2 Level 3 September 30, 2019 Financial assets: Loans, net $ 626,607 $ 612,003 $ — $ — $ 612,003 Financial liabilities: Deposits $ 660,401 $ 629,813 $ — $ 629,813 $ — FHLB advances and notes payable 55,495 56,065 — 56,065 — December 31, 2018 Financial assets: Loans, net $ 625,513 $ 604,290 $ — $ — $ 604,290 Financial liabilities: Deposits $ 614,926 $ 570,509 $ — $ 570,509 $ — FHLB advances and notes payable 56,989 56,979 — 56,979 —

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Fair Value Measurements	Note 11. Fair Value Measurements Effective January 1, 2008, the Company adopted ASC 820‑10 Fair Value Measurements and Disclosures which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investments securities) or on a nonrecurring basis (for example, impaired loans). ASC Topic 820 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. ASC Topic 820 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 standard describes three levels of inputs that may be used to measure fair value Fair Value Hierarchy Level 1 — Quoted prices in active markets for identical assets or liabilities Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) Level 3 — Significant unobservable inputs (including the Bank's own assumptions in determining the fair value of assets or liabilities) In determining the appropriate levels, the Bank performs a detailed analysis of assets and liabilities that are subject to ASC Topic 820. The following table presents fair value measurements on a recurring basis as of September 30, 2019 and December 31, 2018: Fair Dollars are in thousands Level 1 Level 2 Level 3 Value September 30, 2019 Securities available for sale: Obligations of U.S. Government agencies $ — $ 8,363 $ — $ 8,363 Obligations of States and political subdivisions — 25,332 — 25,332 Mortgage-backed securities — 20,707 — 20,707 Equity securities — 1,452 — 1,452 Total securities available for sale $ — $ 55,854 $ — $ 55,854 December 31, 2018 Securities available for sale: Obligations of U.S. Government agencies $ — $ 9,420 $ — $ 9,420 Obligations of States and political subdivisions — 21,096 — 21,096 Mortgage-backed securities — 19,404 — 19,404 Equity securities — 1,380 — 1,380 Total securities available for sale $ — $ 51,300 $ — $ 51,300 Securities available for sale are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments, which are considered level 2 inputs. For these securities, management obtains fair value measurements from an independent pricing service. The Bank may also be required, from time to time, to measure certain other financial and non‑financial assets and liabilities at fair value on a non‑recurring basis in accordance with GAAP. The following table presents all fair value measurements on a non‑recurring basis as of September 30, 2019 and December 31, 2018: Dollars are in thousands Fair September 30, 2019 Level 1 Level 2 Level 3 Value Impaired loans $ — $ — $ 21,218 $ 21,218 OREO — 3,641 — 3,641 Total $ — $ 3,641 $ 21,218 $ 24,859 December 31, 2018 Impaired loans $ — $ — $ 26,640 $ 26,640 OREO — 3,660 — 3,660 Total $ — $ 3,660 $ 26,640 $ 30,300 Measured on a Non‑Recurring Basis: Financial Assets and Liabilities The Bank is predominantly a cash flow lender with real estate serving as collateral on a majority of loans. Loans which are deemed to be impaired financial assets are primarily valued on a nonrecurring basis at the fair values of the underlying real estate collateral. The Bank determines such fair values from independent appraisals, which management considers level 3 inputs. Non Financial Assets and Non Financial Liabilities The Company has no non‑financial assets and non‑financial liabilities measured at fair value on a recurring basis. Certain non‑financial assets and non‑financial liabilities typically measured at fair value on a non‑recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non‑financial assets and non‑financial liabilities measured at fair value in a goodwill impairment test, and intangible assets and other non‑financial long‑lived assets measured at fair value for impairment assessment. Foreclosed real estate were adjusted to their fair values, resulting in an impairment charge, which was included in earnings for the period. Foreclosed real estate, which are considered to be non‑financial assets, have been valued using a market approach at the time they are recorded in OREO. The values were determined using current market prices of similar real estate assets, which the Bank considers to be level 2 inputs.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 12. Goodwill and Intangible Assets The Company accounts for goodwill and other intangible assets in accordance with ASC Topic 350, “Intangibles — Goodwill and Other.” The Company records the excess of cost acquired entities over the fair value of identifiable tangible and intangible assets acquired, less liabilities assumed, as goodwill. The Company amortizes acquired intangible assets with definite useful economic lives over their useful economic lives. On a periodic basis, management assesses whether events or changes in circumstances indicate that the carrying amount of the intangible assets may be impaired. The Company does not amortize goodwill or any acquired intangible assets with an indefinite useful economic life, but reviews them for impairment on an annual basis, or when events or changes in circumstances indicate that the carrying amounts may be impaired. The Company has performed the required goodwill impairment test and has determined that goodwill was not impaired as of December 31, 2018. Goodwill: The Company acquired goodwill in the purchase of Liberty Bell Bank (see Note 13). The following table provides changes in goodwill for the the nine months ended September 30, 2019 and the year ended December 31, 2018: September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 5,237 $ — Liberty Bell Bank acquisition — 5,237 Impairment — — Balance at the end of the period $ 5,237 $ 5,237 Core Deposit Intangible: The Company acquired a core deposit intangible in the acquisition of Liberty Bell Bank. The Company utilizes the double declining balance method of amortization, in which the straight line amortization rate is doubled and applied to the remaining unamortized portion of the intangible asset. The amortization method changes to the straight line method of amortization when the straight line amortization amount exceeds the amount that would be calculated under the double declining balance method. The core deposit intangible is amortized over seven years. The following table provides changes in the core deposit intangible for the the nine months ended September 30, 2019, and the year ended December 31, 2018: September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 1,069 $ — Liberty Bell Bank acquisition — 1,489 Accumulated amortization (226) (420) Balance at the end of the period $ 843 $ 1,069 The Company recorded amortization expense related to the core deposit intangible of $ 76,000 and $126,000 during the three months ended September 30, 2019 and 2018, respectively, and $226,000 and $294,000 during the nine months ended September 30, 2019 and 2018, respectively. Remaining amortization on the core deposit intangible is $76,000 through December 31, 2019 and $216,000, $155,000, $128,000, $128,000, and $140,000 for the years ended December 31, 2020, 2021, 2022, 2023, and 2024 and thereafter, respectively. Deposits Purchased Premium: The Company paid a deposit premium in the acquisition of Liberty Bell Bank, which is included in the balances of time deposits on the balance sheets. The premium amount is amortized as a reduction in interest expense over the life of the acquired time deposits. The premium on deposits will be amortized over five years. The following table provides changes in the deposit premium for the nine months ended September 30, 2019 and the year ended December 31, 2018: September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 27 $ — Liberty Bell Bank acquisition — 108 Accumulated accretion (19) (81) Balance at the end of the period $ 8 $ 27 The Company recorded accretion on the deposit premium of $6,000 and $27,000 during the three months ended September 30, 2019 and 2018, respectively, and $19,000 and $63,000 during the nine months ended September 30, 2019 and 2018, respectively. Remaining accretion on the deposits purchased premium is $4,000 through December 31, 2019 and $4,000 thereafter.

Liberty Bell Transaction

Liberty Bell Transaction	9 Months Ended
	Sep. 30, 2019
Liberty Bell Transaction
Liberty Bell Transaction	Note 13. Liberty Bell Transaction On March 1, 2018, the Company completed its acquisition of Liberty Bell Bank (“LBB”), a New Jersey chartered commercial bank. LBB shareholders received 0.2857 shares of the Company's common stock for each share of LBB common stock they owned as of the effective date of the acquisition, cash consideration of $1.70 per share or a combination thereof. The aggregate consideration paid to LBB shareholders was $17.3 million. The results of LBB's operations are included in the Company's consolidated statements of income for the year ended December 31, 2018 for the period beginning March 1, 2018, the date of the acquisition. The acquisition of LBB added market share in Burlington and Camden Counties in Southern New Jersey. The acquisition resulted in three new branches in Evesham, Cherry Hill, and Moorestown, New Jersey. The acquisition of LBB was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration paid were recorded at their estimated fair values as of the acquisition date. The excess consideration paid over the fair value of net assets acquired has been reported as goodwill in the Company's consolidated statements of financial condition as of December 31, 2018. The assets acquired and liabilities assumed in the acquisition of LBB were recorded at their estimated fair values based on management's best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. In connection with the acquisition, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: Estimated Fair Value as of Dollars in Thousands March 1, 2018 Consideration paid: Cash $ 4,471 Common stock issued in acquisition 12,798 Total consideration paid 17,270 Assets acquired: Cash and cash equivalents 11,831 Investment securities 7,605 Investments in correspondent bank stock 180 Loans 121,674 Premises and equipment 2,148 Other real estate owned 946 Accrued interest receivable 358 Core deposit intangible 1,489 Deferred tax asset 4,263 Other assets 1,039 Total assets acquired $ 151,532 Liabilities assumed: Deposits $ 138,241 Other liabilities 1,259 Total liabilities assumed $ 139,500 Net assets acquired $ 12,032 Goodwill recorded in acquisition 5,237 Acquired loans (impaired and non‑impaired) are initially recorded at their acquisition‑date fair values using Level 3 inputs. Fair values are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, expected life‑ time losses, environmental factors, collateral values, discount rates, expected payments and expected prepayments. Specifically, the Company has prepared three separate loan fair value adjustments that it believes a market participant might employ in estimating the entire fair value adjustment necessary under ASC 820‑10 for the acquired loan portfolio. The three separate fair valuation methodologies employed are: (i) an interest rate loan fair value adjustment, (ii) a general credit fair value adjustment, and (iii) a specific credit fair value adjustment for purchased credit impaired loans subject to ASC 310‑30 provisions. The acquired loans were recorded at fair value at the acquisition date without carryover of LBB's previously established allowance for loan losses. The fair value of the financial assets acquired included loans receivable with a principal balance, prior to fair value adjustments, of $124.5 million. The table below illustrates the fair value adjustments made to the amortized cost basis to present a fair value of the loans acquired: Dollars in Thousands At March 1, 2018 Gross principal balance $ 124,545 Fair value adjustment on pools of non-credit impaired loans (1,703) Fair value adjustment on purchased credit impaired loans (1,168) Fair value of acquired loans $ 121,674 The credit adjustment on acquired impaired loans is derived in accordance with ASC 310‑30 and represents the portion of the loan balances that have been deemed uncollectible based on the Company's expectations of future cash flows for each respective loan: Dollars in Thousands At March 1, 2018 Contractually required principal and interest at acquisition $ 2,469 Contractual cashflows not expected to be collected (non-accretable discount) (922) Expected cash flows at acquisition 1,547 Interest component of expected cash flows (246) Fair value for loans acquired under ASC 310-30 $ 1,301 The fair value of savings and transaction deposit accounts acquired from LBB provide value to the Company as a source of below market rate funds. The fair value of the core deposit intangible was determined based on a discounted cash flow analysis using a discount rate based on the estimated cost of capital for a market participant. To calculate cash flows, the sum of deposit account servicing costs (net of deposit fee income) and interest expense on deposits were compared to the cost of alternative funding sources available to the Company. The expected cash flows of the deposit base included estimated attrition rates. The core deposit intangible was valued at $1.49 million or 2.04% of core deposits. The core deposit intangible asset is being amortized on a double declining basis over 7 years. Direct costs related to the merger were accrued and expensed as incurred. During the three and nine months ended September 30, 2018 the Company incurred approximately $135,000 and $ 1.3 million , respectively, in Liberty merger‑related expenses. There were no expenses related to the merger with Liberty during the nine months ended September 30, 2019.

Bank Acquisition

Bank Acquisition	9 Months Ended
	Sep. 30, 2019
Bank Acquisition
Bank Acquisition	Note 14. Bank Acquisition On December 13, 2018 the Company entered into a share exchange agreement with Virginia Partners Bank (“Partners”). Partners is a commercial bank chartered by the Commonwealth of Virginia Bureau of Financial Institutions and insured by the Federal Deposit Insurance Corporation. Partners is headquartered in Fredericksburg, Virginia, which is the location of the operations center and administrative headquarters and three branch offices. An additional branch office is located in La Plata, Maryland, and a loan production office is located in Annapolis, Maryland. Each share of Partners common stock will be converted into the right to receive 1.7179 shares of Delmar Bancorp common stock. From and after the effective time of the share exchange, former holders of Partners Common Stock shall be shareholders of Delmar, and shall have no rights or interest as a shareholder of Partners. As of September 30, 2019, there were 4,085,181 shares of Partners common stock outstanding which were held by approximately 3 20 holders of record. Partners will continue to conduct its business as a wholly owned first tier subsidiary of Delmar, under the name “Virginia Partners Bank”. The share exchange is anticipated to become effective during the fourth quarter of 2019. Direct costs related to the share exchange were accrued and expensed as incurred. During the three and nine months ended September 30, 2019, the Company incurred $168,000 and $539,000, respectively, in Partners share exchange related expenses. There were no expenses related to the share exchange during the nine months ended September 30, 2018 .

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2019
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 15. Recent Accounting Pronouncements Information about certain recently issued accounting standards updates is presented below. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific revenue recognition guidance throughout the ASC. The amendments in this update affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts, including leases and insurance contracts, are within the scope of other standards. The amendments establish a core principle requiring the recognition of revenue to depict the transfer of goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. The amendments also require expanded disclosures concerning the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date by one year from the date in the original guidance. In March 2016, the FASB issued ASU No. 2016-08 to clarify the implementation guidance on principal versus agent considerations. The guidance is effective for fiscal years and interim periods beginning after December 15, 2016. The Company’s adoption of this item did not have a material impact on its results of operations or financial condition. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10)”: Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities. ASU 2016-01 becomes effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company’s adoption of this item did not have a material impact on its results of operations or financial condition. The disclosures to the Company’s consolidated financial statements have been updated appropriately using the exit price notion in “Note 10 – Fair Value of Financial Instruments”. On February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. ASU 2016-02 will, among other things, require lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. The Company recorded a right of use asset and lease liability on the adoption date of January 1, 2019 (see Note 5). In March 2016, the FASB issued ASU No. 2016-05, “Derivatives and Hedging (Topic 815)”: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. ASU No. 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU No. 2016-05 was effective for us on January 1, 2017 and did not have a material impact on our results of operations or financial condition. In March 2016, the FASB issued ASU No. 2016-09, “Compensation — Stock Compensation (Topic 718)”: Improvements to Employee Share-Based Payment Accounting. Under ASU No. 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU No. 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU No. 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU No. 2016-09 was effective on January 1, 2017 and did not have a material impact on our results of operations or financial condition. During June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”: Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires 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 and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. In April 2019, ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” was issued to address certain codification improvements and to provide certain accounting policy electives related to accrued interest as well as disclosure related to credit losses, among other things. In May 2019, ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief,” was issued to provide transition relief in connection with the adoption of ASU 2016-03 whereby entities would have the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. ASU 2016-13, as updated, will be effective for U.S. Securities and Exchange Commission (SEC) filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. For public companies that are not SEC filers, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. In October 2019, the FASB approved the deferral of the effective date of ASU 2016-13 for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. This will delay the effective date to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. As the Company is a smaller reporting company, this deferral would be applicable to the Company. The Company is currently evaluating the potential impact of ASU 2016-13 on our consolidated financial statements. We are currently working through our implementation plan which includes assessment and documentation of processes, internal controls and data sources; model development and documentation; and systems configuration, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of the ASU 2016-13. The adoption of the ASU 2016-13 could result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses for certain debt securities and other financial assets. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230)”: Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU were issued to reduce diversity in how certain cash receipts and payments are presented and classified in the statement of cash flows in eight specific areas. Debt prepayment costs should be classified as an outflow for financing activities. Settlement of zero-coupon debt instruments divides the interest portion as an outflow for operating activities and the principal portion as an outflow for financing activities. Contingent consideration payments made after a business combination should be classified as outflows for financing and operating activities. Proceeds from the settlement of bank-owned life insurance policies should be classified as inflows from investing activities. Other specific areas are identified in the ASU as to the appropriate classification of the cash inflows or outflows. ASU No. 2016-15 was effective on January 1, 2018 and did not have a material impact on our results of operations or financial condition. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230)” - Restricted Cash: a Consensus of the FASB Emerging Issues Task Force. This ASU requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash, and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. ASU No. 2016-18 was effective on January 1, 2018 and did not have a material impact on our results of operations or financial condition. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805)”: Clarifying the Definition of a Business. ASU No. 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU No. 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU No. 2017-01 was effective for us on January 1, 2018 and did not have a significant impact on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, “Receivables - Nonrefundable Fees and other Costs (Subtopic 320-20)”: Premium Amortization on Purchased Callable Debt Securities. This standard shortens the amortization period for the premium to the earliest call date to more closely align interest income recorded on bonds held at a premium or a discount with the economics of the underlying instrument. Adoption of ASU 2017-08 is required for fiscal years and interim periods within those fiscal years, beginning after December, 15, 2018, early adoption is permitted. ASU 2017-08 was effective for the Company on January 1, 2019 and did not have a significant impact on our financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)”: Targeted Improvements to Accounting for Hedging Activities. This standard better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedge instruments and the hedged item in the financial statements. Adoption for this ASU is required for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. ASU 2017-12 was effective for the Company on January 1, 2019 and did not have a significant impact on our financial statements. In April 2019, ASU 2019-04 was issued to clarify certain aspects of accounting for hedging activities addressed by ASU 2017-12, among other things. In February 2018, the FASB issued ASU 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220)”. This ASU was issued to allow a reclassification from accumulated other comprehensive income to retained earnings from stranded tax effects resulting from the revaluation of the net deferred tax asset (“DTA”) to the new corporate tax rate of 21% as a result of the Tax Cuts and Jobs Act of 2017 (“Tax Act”). The ASU is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. The Company elected to early adopt this ASU and to reclassify $44,000 of stranded tax effects from accumulated other comprehensive income to retained earnings in the fourth quarter of 2017. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740)”. This ASU was issued to provide guidance on the income tax accounting implications of the Tax Act and allows for entities to report provisional amounts for specific income tax effects of the Tax Act for which the accounting under Topic 740 was not yet complete, but a reasonable estimate could be determined. A measurement period of one-year is allowed to complete the accounting effects under Topic 740 and revise any previous estimates reported. Any provisional amounts or subsequent adjustments included in an entity’s financial statements during the measurement period should be included in income from continuing operations as an adjustment to tax expense in the reporting period the amounts are determined. The Company adopted this ASU with the provisional adjustments as reported in the consolidated financial statements as of December 31, 2017. As of September 30, 2019, the Company did not incur any adjustments to the provisional recognition. In July 2018, the FASB issued ASU No. 2018-11, “Leases – Targeted Improvements (Topic 842)”. ASU 2018-11 provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company elected both transition options. ASU 2018-11 did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820)”: Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. This ASU contains some technical adjustments related to the fair value disclosure requirements of public companies. Included in this ASU is the additional disclosure requirement of unrealized gains and losses for the period in recurring level 3 fair value disclosures and the range and weighted average of significant unobservable inputs, among other technical changes. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The adoption of ASU 2018-13 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)”. ASU 2018-14 amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 will be effective for us on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our financial statements. In October 2018, the FASB issued ASU 2018-16, “Derivatives and Hedging (Topic 815)” - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct U.S. Treasury obligations, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. ASU 2018-16 was effective for us on January 1, 2019 and did not have a significant impact on our financial statements. In March 2019, the FASB issued ASU 2019-01, “Leases – Codification Improvements (Topic 842)”. ASU 2019-01 amends certain aspects of the Board’s new leasing standard, ASU 2016-02 to address two lessor implementation issues and clarify when lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard, Topic 842, Leases. ASU 2019-01 aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset and is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services – Depository and Lending, to present all “principal payments received under leases” within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. As ASU 2019-01 only revises disclosure requirements, it will not have a material impact on the Company’s consolidated financial statements.

Nature of Business and Its Si_2

Nature of Business and Its Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Nature of Business and Its Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The consolidated financial statements include the accounts of Delmar Bancorp, a bank holding company (the Company); its wholly owned subsidiary — The Bank of Delmarva (the “Bank”), a commercial bank engaged in general commercial banking operations in Maryland, Delaware and New Jersey; Delmarva Real Estate Holdings, LLC., a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; Davie Circle, LLC, a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; Delmarva BK Holdings, LLC, a wholly owned subsidiary of The Bank of Delmarva, which is a real estate holding company; DHB Development, LLC, of which the Bank holds a 40.55% interest, and is a real estate holding company; West Nithsdale Enterprises, LLC, of which the Bank holds a 10% interest, and is a real estate holding company; and FBW, LLC, of which the Bank holds 50% interest, and is also a real estate holding company. All significant intercompany accounts and transactions have been eliminated.
Financial Statement Presentation	Financial Statement Presentation: The unaudited interim consolidated financial statements do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholder's equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position at September 30, 2019 and December 31, 2018, the results of its operations and its cash flows for the nine months ended September 30, 2019 and 2018 in conformity with accounting principles generally accepted in the United States of America. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, or for any other period.
Use of Estimates	Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted within the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Adoption of New Accounting Standard	Adoption of New Accounting Standard: On January 1, 2019, the Company adopted ASU No. 2016-02, "Leases", utilizing the effective date method under the modified retrospective approach. The Company currently leases seven of its office leases under operating leases and one under a finance lease. The Company's present value of future lease payments, measured on a discounted basis, as of January 1, 2019 was $3.6 million, which was recorded as a right-of-use asset included in other assets with an offsetting liability included in other liabilities on the consolidated balance sheet. Additional disclosures related to lease commitments are provided in Note 5.
Securities Available for Sale	Securities Available for Sale: Marketable debt and equity securities not classified as held to maturity are classified as available for sale. Securities available for sale are acquired as part of the Bank's asset/liability management strategy and may be sold in response to changes in interest rates, loan demand, changes in prepayment risk, and other factors. Securities available for sale are carried at fair value as determined by quoted market prices. Unrealized gains or losses based on the difference between amortized cost and fair value are reported in other comprehensive income, net of deferred tax. Realized gains and losses, using the specific identification method, are included as a separate component of other income (expense) and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Additionally, declines in the fair value of individual investment securities below their cost that are other than temporary are reflected as realized losses in the consolidated statements of income.
Loans and the Allowance for Credit Losses	Loans and the Allowance for Credit Losses: Loans are generally carried at the amount of unpaid principal, adjusted for unearned loan fees, which are amortized over the term of the loan using the effective interest rate method. Interest on loans is accrued based on the principal amounts outstanding. It is the Bank's policy to discontinue the accrual of interest when a loan is specifically determined to be impaired or when principal or interest is delinquent for ninety days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Cash collections on such loans are applied as reductions of the loan principal balance and no interest income is recognized on those loans until the principal balance has been collected. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. The carrying value of impaired loans is based on the present value of the loan's expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. The allowance for loan losses is maintained at a level believed adequate by management to absorb probable losses inherent in the loan portfolio and is based on the size and current risk characteristics of the loan portfolio, an assessment of individual problem loans and actual loss experience, the value of the underlying collateral, and current economic events in specific industries and geographical areas, including unemployment levels, and other pertinent factors, including regulatory guidance and general economic conditions. Determination of the allowance is inherently subjective, as it requires significant estimates, including the amounts and timing on historical loss experience, and consideration of current economic trends, all of which may be susceptible to significant change. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is charged to operations based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. Evaluations are conducted at least monthly and more often if deemed necessary. The allowance for credit losses typically consists of an allocated component and an unallocated component. The allocated component of the allowance for credit losses reflects expected losses resulting from analyses developed through specific credit allocations for individual loans and historical loss experience for each loan category. The specific credit allocations are based on regular analyses of all loans over a fixed‑dollar amount where the internal credit rating is at or below a predetermined classification. The historical loan loss element is determined statistically using a loss migration analysis that examines loss experience and the related internal gradings of loans charged off over a current 3 year period. The loss migration analysis is performed quarterly and loss factors are updated regularly based on actual experience. The allocated component of the allowance for credit losses also includes consideration of concentrations and changes in portfolio mix and volume. Any unallocated portion of the allowance reflects management's estimate of probable inherent but undetected losses within the portfolio due to uncertainties in economic conditions, delays in obtaining information, including unfavorable information about a borrower's financial condition, the difficulty in identifying triggering events that correlate perfectly to subsequent loss rates, and risk factors that have not yet manifested themselves in loss allocation factors. In addition, the unallocated allowance includes a component that explicitly accounts for the inherent imprecision in loan loss migration models. The historical losses used in the migration analysis may not be representative of actual unrealized losses inherent in the portfolio. It is management's intent to continually refine the methodology for the allowance for credit losses in an attempt to directly allocate potential losses in the loan portfolio under ASC Topic 310 and minimize the unallocated portion of the allowance for credit losses. Loan Charge‑off Policies Loans are generally fully or partially charged down to the fair value of securing collateral when: - management deems the asset to be uncollectible - repayment is deemed to be made beyond the reasonable time frames - the asset has been classified as a loss by internal or external review - the borrower has filed bankruptcy and the loss becomes evident owing to a lack of assets Acquired Loans Loans acquired in connections with business combinations are recorded at their acquisition‑date fair value with no carry over of related allowance for credit losses. Any allowance for loan loss on these pools reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Management considers a number of factors in evaluating the acquisition‑date fair value including the remaining life of the acquired loans, delinquency status, estimated prepayments, payment options and other loan features, internal risk grade, estimated value of the underlying collateral and interest rate environment. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of the expected cash flows on such loans and if we expect to fully collect the new carrying value of the loans, including the impact of any accretable yield. Loans acquired with deteriorated credit quality are accounted for in accordance with Accounting Standards Codification (“ASC”) 310‑30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310‑30) if, at acquisition, the loans have evidence of credit quality deterioration since origination and it is probable that all contractually required payments will not be collected. At acquisition, the Company considers several factors as indicator that an acquired loan has evidence of deterioration in credit quality. These factors include; loans 90 days or more past due, loans with an internal risk grade of substandard or below, loans classified as non‑accrual by the acquired institution, and loans that have been previously modified in a troubled debt restructuring. Under the ASC 310‑30 model, the excess of cash flows expected to be collected at acquisition over recorded fair value is referred to as the accretable yield and is the interest component of expected cash flow. The accretable yield is recognized into income over the remaining life of the loan if the timing and/or amount of cash flows expected to be collected can be reasonable estimated (the accretion method). If the timing or amount of cash flows expected to be collected cannot be reasonably estimated, the cost recovery method of income recognition is used. The difference between the loan's total scheduled principal and interest payment over all cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the non‑accretable difference. The non‑accretable difference represents contractually required principal and interest payments which the Company does not expect to collect. Over the life of the loan, management continues to estimate cash flows expected to be collected. Decreases in expected cash flows are recognized as impairments through a charge to the provision for loan losses resulting in an increase in the allowance for loan losses. Subsequent improvements in cash flows result in first, reversal of existing valuation allowances recognized subsequent to acquisition, if any, and next, an increase in the amount of accretable yield to be subsequently recognized as interest income on a prospective basis over the loan's remaining life. Acquired loans that were not individually determined to be purchased with deteriorated credit quality are accounted for in accordance with ASC 310‑20, Nonrefundable Fees and Other Costs (ASC 310‑20), whereby the premium or discount derived from the fair market value adjustment, on a loan‑by‑loan or pooled basis, is recognized into interest income on a level yield basis over the remaining expected life of the loan or pool.
Other Real Estate Owned (OREO)	Other Real Estate Owned (OREO): OREO comprises properties acquired in partial or total satisfaction of problem loans. The properties are recorded at the lower of cost or fair value at the date acquired. Losses arising at the time of acquisition of such properties are charged against the allowance for credit losses. Subsequent write‑downs that may be required and expenses of operation are included in other expenses. Gains and losses realized from the sale of OREO are included in other income. At September 30, 2019 there were seven properties with a combined estimated value of $ 3.6 million included in other real estate owned, and at December 31, 2018 there were nine properties with a combined estimated value of $3.7 million.
Intangible Assets and Amortization	Intangible Assets and Amortization: During the first quarter of 2018 the Bank acquired Liberty Bell Bank. ASC 350, Intangibles‑Goodwill and Other (ASC 350), prescribes accounting for intangible assets subsequent to initial recognition. Acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to the acquisition are amortized (see Note 12).
Accounting for Stock Based Compensation	Accounting for Stock Based Compensation: The Company follows ASC 718‑10, Compensation — Stock Compensation for accounting and reporting for stock‑based compensation plans. ASC 718‑10 defines a fair value at grant date to be used for measuring compensation expense for stock‑based compensation plans to be recognized in the statement of income.
Earnings (Loss) Per Share	Earnings Per Share: Basic earnings per common share are determined by dividing net income adjusted for preferred stock dividends declared and/or accumulated and accretion of warrants by the weighted average number of shares outstanding for each year, giving retroactive effect to stock splits and dividends. Calculations of diluted earnings per common share include the average dilutive common stock equivalents outstanding during the year, unless they are anti‑dilutive. Dilutive common equivalent shares consist of stock options calculated using the treasury stock method and restricted stock awards (See Note 8).

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Investment Securities
Schedule of securities available for sale	September 30, 2019 Dollars in Thousands Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Obligations of U.S. Government agencies and corporations $ 8,184 $ 187 $ 8 $ 8,363 Obligations of States and political subdivisions 24,636 725 29 25,332 Mortgage-backed securities 20,665 120 78 20,707 Equity securities 1,500 — 48 1,452 $ 54,985 $ 1,032 $ 163 $ 55,854 December 31, 2018 Dollars in Thousands Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Obligations of U.S. Government agencies and corporations $ 9,469 $ 47 $ 96 $ 9,420 Obligations of States and political subdivisions 21,383 139 426 21,096 Mortgage-backed securities 19,942 15 553 19,404 Equity securities 1,500 — 120 1,380 $ 52,294 $ 201 $ 1,195 $ 51,300
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	September 30, 2019 Dollars in Thousands Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations $ 999 $ 2 $ 2,997 $ 6 $ 3,996 $ 8 Mortgage-backed securities 5,496 21 4,754 57 10,250 78 Obligations of States and political subdivisions 2,522 29 253 — 2,775 29 Equity Securities — — 1,452 48 1,452 48 Total securities with unrealized losses $ 9,017 $ 52 $ 9,456 $ 111 $ 18,473 $ 163 December 31, 2018 Dollars in Thousands Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Obligations of U.S. Government agencies and corporations $ 3,973 $ 18 $ 5,927 $ 78 $ 9,900 $ 96 Mortgage-backed securities 5,485 111 13,440 442 18,924 553 Obligations of States and political subdivisions 9,119 81 11,977 345 21,096 426 Equity Securities — — 1,380 120 1,380 120 Total securities with unrealized losses $ 18,577 $ 209 $ 32,724 $ 985 $ 51,300 $ 1,195
Schedule of maturities, calls, or repricing of securities available for sale	September 30, 2019 Securities Available for Sale Dollars in Thousands Amortized Fair Cost Value Due in one year or less $ 3,023 $ 3,018 Due after one year through five years 2,491 2,489 Due after five years through ten years 12,680 13,139 Due after ten years or more 16,126 16,502 Mortgage-backed, due in monthly installments 20,665 20,706 $ 54,985 $ 55,854

Loans, Allowance for Credit L_2

Loans, Allowance for Credit Losses and Impaired Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans, Allowance for Credit Losses and Impaired Loans
Schedule of major categories of loans	(Dollars in thousands) At September 30, 2019 At December 31, 2018 Originated Loans Other real estate secured $ 369,039 $ 356,141 1 - 4 Family residential secured 120,160 116,771 Other 51,643 48,960 540,842 521,872 Acquired Loans Other real estate secured $ 56,698 $ 70,080 1 - 4 Family residential secured 23,120 29,532 Other 13,669 12,420 93,487 112,032 Total Loans Other real estate secured $ 425,737 $ 426,221 1 - 4 Family residential secured 143,280 146,303 Other 65,312 61,379 634,329 633,903 Less: Unamortized discounts on acquired loans (668) (1,327) Less: Allowance for loan losses (7,054) (7,063) $ 626,607 $ 625,513
Schedule of allowance for credit losses by loan category	Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total September 30, 2019 Individually evaluated for impairment: Balance in allowance $ 47 $ 251 $ 639 $ — $ 937 Related loan balance 14,114 4,102 1,218 — 19,434 Collectively evaluated for impairment: Balance in allowance $ 4,346 $ 1,210 $ 102 $ 459 $ 6,117 Related loan balance 411,215 139,084 63,928 — 614,227 Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total December 31, 2018 Individually evaluated for impairment: Balance in allowance $ 278 $ 586 $ 178 $ — $ 1,042 Related loan balance 14,947 8,775 1,732 — 25,454 Collectively evaluated for impairment: Balance in allowance $ 3,998 $ 1,057 $ 476 $ 490 $ 6,021 Related loan balance 410,527 137,192 59,403 — 607,122 September 30, 2019 Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total Quarter Ended Beginning Balance $ 4,359 $ 1,343 $ 634 $ 730 $ 7,066 Charge-offs — — (454) — (454) Recoveries 84 24 34 — 142 Provision (50) 94 527 (271) 300 Ending Balance 4,393 1,461 741 459 7,054 Nine Months Ended Beginning Balance 4,276 1,643 654 490 7,063 Charge-offs (421) (198) (632) — (1,251) Recoveries 97 165 80 — 342 Provision 441 (149) 639 (31) 900 Ending Balance 4,393 1,461 741 459 7,054 September 30, 2018 Other 1 - 4 Family Real Estate Residential Dollars in Thousands Secured Secured Other Unallocated Total Quarter Ended Beginning Balance $ 4,434 $ 1,887 $ 444 $ 331 $ 7,096 Charge-offs (143) — (84) — (227) Recoveries 9 19 28 — 56 Provision 142 29 29 100 300 Ending Balance 4,442 1,935 417 431 7,225 Nine Months Ended Beginning Balance 3,858 1,744 536 565 6,703 Charge-offs (347) (52) (202) — (601) Recoveries 77 143 78 — 298 Provision 854 100 5 (134) 825 Ending Balance 4,442 1,935 417 431 7,225
Schedule of loans by risk rating	1 - 4 Family Other Real Residential September 30, 2019 Estate Secured Secured Other Total Dollars in Thousands Excellent $ 1,098 $ — $ 6,357 $ 7,455 Superior 3,851 254 1,874 5,979 Good 404,785 136,693 53,530 595,008 Fair 7,968 2,977 1,619 12,564 Marginal — — — — Substandard 7,628 3,261 1,766 12,655 TOTAL $ 425,330 $ 143,185 $ 65,146 $ 633,661 Non-Accrual $ 2,806 $ 2,107 $ 214 $ 5,127 Troubled debt restructures $ 8,178 $ 2,443 $ 166 $ 10,787 Breakdown of TDRs TDRs on Non-accrual $ 1,120 $ 918 $ 166 $ 2,204 TDRs Past Due 30-89 — 213 — 213 Performing TDRs 7,058 1,312 — 8,370 TOTAL $ 8,178 $ 2,443 $ 166 $ 10,787 Total Non-performing TDR accounts $ 1,120 $ 1,131 $ 166 $ 2,417 1 - 4 Family Other Real Residential December 31, 2018 Estate Secured Secured Other Total Dollars in Thousands Excellent $ 1,143 $ — $ 9,756 $ 10,899 Superior 7,523 267 2,015 9,805 Good 402,092 133,401 45,802 581,295 Fair 8,084 4,598 2,106 14,788 Marginal 407 112 268 787 Substandard 7,071 7,589 343 15,003 TOTAL $ 426,319 $ 145,967 $ 60,290 $ 632,576 Non-Accrual $ 4,423 $ 4,547 $ 178 $ 9,148 Troubled debt restructures $ 10,341 $ 7,269 $ 206 $ 17,816 Breakdown of TDRs TDRs on Non-accrual $ 2,546 $ 3,290 $ 175 $ 6,012 TDRs Past Due 30-89 640 — 31 671 Performing TDRs 7,155 3,979 — 11,134 TOTAL $ 10,341 $ 7,269 $ 206 $ 17,816 Total Non-performing TDR accounts $ 3,186 $ 3,290 $ 206 $ 6,682
Schedule of aging analysis of the recorded investment of past due financing receivables	Recorded Investment Greater than Total >90 Days 30 - 59 Days 60 - 89 Days 90 Days Total Current Financing Past Due At September 30, 2019 Past Due* Past Due** Past Due*** Past Due Balance Receivables and Accruing Dollars in Thousands Other Real Estate Secured $ 569 $ — $ 2,005 $ 2,574 $ 423,163 $ 425,737 $ — 1 - 4 Family Residential 1,696 619 616 2,931 140,349 143,280 — Other 158 20 — 178 65,134 65,312 — TOTAL $ 2,423 $ 639 $ 2,621 $ 5,683 $ 628,646 $ 634,329 $ — * Includes $ 1.2 million of non‑accrual loans. ** Includes $ 117,000 of non-accrual loans. *** Includes $2.6 million of nonacrual loans. Recorded Investment Greater than Total >90 Days 30 - 59 Days 60 - 89 Days 90 Days Total Current Financing Past Due At December 31, 2018 Past Due Past Due Past Due* Past Due Balance Receivables and Accruing Dollars in Thousands Other Real Estate Secured $ 876 $ 1,742 $ 3,129 $ 5,747 $ 420,474 $ 426,221 $ 338 1 - 4 Family Residential 1,292 383 1,722 3,397 142,906 146,303 — Other 1,035 33 268 1,336 60,043 61,379 268 TOTAL $ 3,203 $ 2,158 $ 5,119 $ 10,480 $ 623,423 $ 633,903 $ 606 * Includes $4.5 million of non‑accrual loans.
Schedule of impaired loans	Unpaid Interest Average Recorded Principal Income Specific Recorded September 30, 2019 Investment Balance Recognized Reserve Investment Dollars in Thousands Impaired loans with specific reserves: Other Real Estate Secured $ 2,278 $ 2,278 $ 188 $ 47 $ 2,777 1 - 4 Family Residential Secured 738 738 — 251 2,343 Other 214 214 11 639 129 Total impaired loans with specific reserves $ 3,230 $ 3,230 $ 199 $ 937 $ 5,249 Impaired loans with no specific reserve: Other Real Estate Secured $ 12,339 $ 12,815 $ 768 $ — $ 12,594 1 - 4 Family Residential Secured 4,261 5,041 158 — 5,011 Other 2,325 2,325 110 — 2,065 Total impaired loans with no specific reserve $ 18,925 $ 20,181 $ 1,036 — — $ 19,670 TOTAL $ 22,155 $ 23,411 $ 1,235 $ 937 $ 24,919 Unpaid Interest Average Recorded Principal Income Specific Recorded December 31, 2018 Investment Balance Recognized Reserve Investment Dollars in Thousands Impaired loans with specific reserves: Other Real Estate Secured $ 3,276 $ 3,276 $ 246 $ 412 $ 3,690 1 - 4 Family Residential Secured 3,947 4,075 174 586 4,989 Other 44 44 2 44 22 Total impaired loans with specific reserves $ 7,267 $ 7,395 $ 422 $ 1,042 $ 8,701 Impaired loans with no specific reserve: Other Real Estate Secured $ 12,849 $ 13,905 $ 1,016 $ — $ 10,691 1 - 4 Family Residential Secured 5,761 7,011 256 — 3,902 Other 1,805 1,805 112 — 1,080 Total impaired loans with no specific reserve $ 20,415 $ 22,721 $ 1,384 $ — $ 15,672 TOTAL $ 27,682 $ 30,116 $ 1,806 $ 1,042 $ 24,374
Schedule of outstanding balance and carrying amount of acquired loans	Dollars in Thousands September 30, 2019 December 31, 2018 Accountable for under ASC 310-30 (PCI loans) Outstanding balance $ 1,067 $ 1,692 Carrying amount 810 1,110 Accountable for under ASC 310-20 (non-PCI loans) Outstanding balance $ 92,420 $ 110,340 Carrying amount 92,009 109,595 Total acquired loans Outstanding balance $ 93,487 $ 112,032 Carrying amount 92,819 110,705
Schedule of changes in accretable yield of acquired loans	Dollars in Thousands September 30, 2019 December 31, 2018 Balance at beginning of period $ 745 $ — Acquisitions — 1,703 Accretion (335) (958) Balance at end of period $ 410 $ 745

Credit Facilities (Tables)

Credit Facilities (Tables)	9 Months Ended
	Sep. 30, 2019
Credit Facilities
Schedule of long-term advances outstanding with the Federal Home Loan Bank of Atlanta	September 30, 2019 Dollars in Thousands Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid 15,000 2.09 % June 2020 Fixed, paid monthly Fixed rate hybrid 5,000 3.04 % November 2020 Fixed, paid monthly Fixed rate hybrid 5,000 2.91 % November 2020 Fixed, paid quarterly Fixed rate hybrid 6,000 2.44 % April 2021 Fixed, paid quarterly Convertible* 10,000 2.68 % May 2021 Fixed, paid quarterly Fixed rate hybrid 5,000 3.15 % October 2022 Fixed, paid quarterly Principal reducing credit 1,500 1.62 % March 2023 Fixed, paid quarterly Principal reducing credit 1,495 1.99 % March 2026 Fixed, paid quarterly Total long-term advances 48,995 December 31, 2018 Dollars in Thousands Outstanding Balance Interest Rate Maturity Date Interest Payment Fixed rate hybrid 15,000 1.51 % June 2019 Fixed, paid monthly Fixed rate hybrid 5,000 3.04 % November 2020 Fixed, paid monthly Fixed rate hybrid 5,000 2.91 % November 2020 Fixed, paid quarterly Convertible* 10,000 2.68 % May 2021 Fixed, paid quarterly Fixed rate hybrid 5,000 3.15 % October 2022 Fixed, paid quarterly Principal reducing credit 1,821 1.62 % March 2023 Fixed, paid quarterly Principal reducing credit 1,668 1.99 % March 2026 Fixed, paid quarterly Total long-term advances 43,489 * The FHLB has the option of converting the rate on this long-term borrowing to a three month LIBOR-based floating rate in May 2020.
Schedule of maturities of long-term debt	2019 $ 165 2020 25,659 2021 16,659 2022 5,659 2023 337

Lease Commitment (Tables)

Lease Commitment (Tables)	9 Months Ended
	Sep. 30, 2019
Lease Commitments
Schedule of supplemental lease information	Supplemental lease information at or for the nine months ended September 30, 2019 is as follows: Balance Sheet Dollars in Thousands Right-of-use asset classified as premises and equipment $ 3,274 Lease liability classified as other liabilities 3,314 Income Statement Operating lease cost classified as premises and equipment $ 364 Weighted average lease term, in years 7.55 Weighted average discount rate (1) 3.28 % Operating cash flows $ 376 (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the Federal Home Loan Bank of Atlanta for a term correlating to the remaining life of each lease. Management believes this rate closely mirrors its incremental borrowing rate for similar terms.
Schedule of maturities of lease liabilities	(1) A maturity analysis of the Company's lease liabilities at September 30, 2019 was as follows: Dollars in Thousands One year or less $ 468 One to three years 772 Three to five years 714 Over 5 years 2,002 Total lease payments 3,956 Less: Interest (642) Present value of lease liabilities $ 3,314

Stock Option Plans (Tables)

Stock Option Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Stock options | Liberty 2004 Stock Option Plan
Stock options
Summary of stock option activity	Employees Directors Average Average Shares Price Amount Shares Price Amount September 30, 2019 2,355 $ 4.14 $ 9,750 6,354 $ 4.14 $ 26,306

Restricted Stock Plan (Tables)

Restricted Stock Plan (Tables)	9 Months Ended
	Sep. 30, 2019
Restricted Stock Plan
Summary of non vested restricted stock awards	Employees Weighted Average Shares Fair Value Nonvested Awards December 31, 2018 9,000 $ 7.30 Vested in 2019 (3,000) 7.30 Nonvested Awards September 30, 2019 6,000 $ 7.30

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share
Summary of diluted earnings per share	Quarter Ended September 30, Nine Months Ended September 30, (Dollars in thousands, except per share data) 2019 2018 2019 2018 Net income applicable to basic earnings per common share $ 1,785 $ 1,888 $ 4,935 $ 3,948 Weighted average shares outstanding 9,985 9,976 9,985 9,595 Basic earnings per share $ 0.179 $ 0.189 $ 0.494 $ 0.411 Effect of dilutive securities: Weighted average shares outstanding under options Delmar 2004 stock option plan (1) — 23 10 28 Weighted average exercise price per share $ — $ 7.54 $ 9.05 $ 9.55 Assumed proceeds on exercise $ — $ 173 $ 91 $ 267 Average market value per share $ 7.42 $ 7.79 $ 7.34 $ 7.47 Weighted average shares outstanding under options Liberty 2004 stock option plan 12 14 12 12 Weighted average exercise price per share $ 3.98 $ 4.01 $ 3.98 $ 4.02 Assumed proceeds on exercise $ 48 $ 56 $ 48 $ 48 Average market value per share $ 7.42 $ 7.79 $ 7.34 $ 7.47 Less: Treasury stock purchased with assumed proceeds from exercise $ 6 $ 7 $ 6 $ 6 Weighted average shares outstanding under restricted stock plans (2) 9 14 9 10 Diluted weighted average shares and common stock equivalents 10,000 9,997 10,000 9,611 Diluted earnings per share $ 0.179 $ 0.189 $ 0.494 $ 0.411 (1) Options were excluded from the calculation of dilutive earnings per share because they are anti‑dilutive. Includes vested shares not yet issued and nonvested shares as of September 30.

Regulatory Capital Requiremen_2

Regulatory Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 2019
Regulatory Capital Requirements
Summary of comparison of the Company’s and the Bank’s capital amounts and ratios with the minimum requirements	To Be Well Capitalized For Capital Under Prompt Adequacy Corrective Action In Thousands Actual Purposes Provisions Amount Ratio Amount Ratio Amount Ratio As of September 30, 2019 Total Capital Ratio (To Risk Weighted Assets) Delmar Bancorp $ 78,392 12.6 % $ 65,525 10.5 % $ — N/A The Bank of Delmarva 77,192 12.4 % 65,469 10.5 % 62,351 10.0 % Tier I Capital Ratio (To Risk Weighted Assets) Delmar Bancorp 64,573 10.3 % 53,044 8.5 % — N/A The Bank of Delmarva 69,873 11.2 % 52,999 8.5 % 49,881 8.0 % Common Equity Tier I Ratio (To Risk Weighted Assets) Delmar Bancorp 64,573 10.3 % 43,683 7.0 % — N/A The Bank of Delmarva 69,873 11.2 % 43,646 7.0 % 40,528 6.5 % Tier I Leverage Ratio (To Average Assets) Delmar Bancorp 64,573 8.3 % 31,052 4.0 % — N/A The Bank of Delmarva 69,873 9.0 % 31,052 4.0 % 38,814 5.0 % As of December 31, 2018 Total Capital Ratio (To Risk Weighted Assets) Delmar Bancorp $ 72,344 11.8 % $ 60,466 9.9 % $ — N/A The Bank of Delmarva 71,498 11.7 % 60,425 9.9 % 61,190 10.0 % Tier I Capital Ratio (To Risk Weighted Assets) Delmar Bancorp 58,516 9.6 % 48,220 7.9 % — N/A The Bank of Delmarva 64,170 10.5 % 48,187 7.9 % 48,952 8.0 % Common Equity Tier I Ratio (To Risk Weighted Assets) Delmar Bancorp 58,516 9.6 % 39,035 6.4 % — N/A The Bank of Delmarva 64,170 10.5 % 39,009 6.4 % 39,774 6.5 % Tier I Leverage Ratio (To Average Assets) Delmar Bancorp 58,516 8.0 % 29,377 4.0 % — N/A The Bank of Delmarva 64,170 8.7 % 29,377 4.0 % 36,721 5.0 %

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Values of Financial Instruments
Summary of the estimated fair value and the related carrying values of the Company’s financial instruments	September 30, December 31, Dollars are in thousands 2019 2018 Estimated Estimated Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 31,483 $ 31,483 $ 24,347 $ 24,347 Interest bearing deposits 29,143 29,143 4,093 4,093 Federal funds sold 15,458 15,458 1,254 1,254 Securities: Available for sale 55,854 55,854 51,300 51,300 Loans, net of allowance for credit losses 626,607 612,003 625,513 604,290 Accrued interest receivable 2,098 2,098 2,103 2,103 Federal Home Loan Bank stock 2,761 2,761 2,652 2,652 Atlantic Central Bankers stock 131 131 131 131 Other investments 1,571 1,571 1,537 1,537 Financial liabilities: Deposits $ 660,401 $ 629,813 $ 614,926 $ 570,509 Accrued interest payable 567 567 392 392 FHLB advances and note payable 55,495 56,065 56,989 56,979 Unrecognized financial instruments: Commitments to extend credit $ 104,101 $ 104,101 $ 114,395 $ 114,395 Standby letters of credit 1,853 1,853 3,276 3,276
Summary of carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not disclosed elsewhere	Dollars are in thousands Fair Value Hierarchy Carrying Fair Amount Value Level 1 Level 2 Level 3 September 30, 2019 Financial assets: Loans, net $ 626,607 $ 612,003 $ — $ — $ 612,003 Financial liabilities: Deposits $ 660,401 $ 629,813 $ — $ 629,813 $ — FHLB advances and notes payable 55,495 56,065 — 56,065 — December 31, 2018 Financial assets: Loans, net $ 625,513 $ 604,290 $ — $ — $ 604,290 Financial liabilities: Deposits $ 614,926 $ 570,509 $ — $ 570,509 $ — FHLB advances and notes payable 56,989 56,979 — 56,979 —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value Measurements
Summary of fair value measurements on a recurring basis	Fair Dollars are in thousands Level 1 Level 2 Level 3 Value September 30, 2019 Securities available for sale: Obligations of U.S. Government agencies $ — $ 8,363 $ — $ 8,363 Obligations of States and political subdivisions — 25,332 — 25,332 Mortgage-backed securities — 20,707 — 20,707 Equity securities — 1,452 — 1,452 Total securities available for sale $ — $ 55,854 $ — $ 55,854 December 31, 2018 Securities available for sale: Obligations of U.S. Government agencies $ — $ 9,420 $ — $ 9,420 Obligations of States and political subdivisions — 21,096 — 21,096 Mortgage-backed securities — 19,404 — 19,404 Equity securities — 1,380 — 1,380 Total securities available for sale $ — $ 51,300 $ — $ 51,300
Summary of fair value measurements on a non-recurring basis	Dollars are in thousands Fair September 30, 2019 Level 1 Level 2 Level 3 Value Impaired loans $ — $ — $ 21,218 $ 21,218 OREO — 3,641 — 3,641 Total $ — $ 3,641 $ 21,218 $ 24,859 December 31, 2018 Impaired loans $ — $ — $ 26,640 $ 26,640 OREO — 3,660 — 3,660 Total $ — $ 3,660 $ 26,640 $ 30,300

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Intangible assets
Schedule of changes in carrying amount of goodwill	September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 5,237 $ — Liberty Bell Bank acquisition — 5,237 Impairment — — Balance at the end of the period $ 5,237 $ 5,237
Core deposit intangible
Intangible assets
Summary of changes in the intangible assets	September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 1,069 $ — Liberty Bell Bank acquisition — 1,489 Accumulated amortization (226) (420) Balance at the end of the period $ 843 $ 1,069
Deposits Purchased Premium
Intangible assets
Summary of changes in the intangible assets	September 30, December 31, Dollars in Thousands 2019 2018 Balance at the beginning of the period $ 27 $ — Liberty Bell Bank acquisition — 108 Accumulated accretion (19) (81) Balance at the end of the period $ 8 $ 27

Liberty Bell Transaction (Table

Liberty Bell Transaction (Tables)	9 Months Ended
	Sep. 30, 2019
Liberty Bell Transaction
Summary of consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition	Estimated Fair Value as of Dollars in Thousands March 1, 2018 Consideration paid: Cash $ 4,471 Common stock issued in acquisition 12,798 Total consideration paid 17,270 Assets acquired: Cash and cash equivalents 11,831 Investment securities 7,605 Investments in correspondent bank stock 180 Loans 121,674 Premises and equipment 2,148 Other real estate owned 946 Accrued interest receivable 358 Core deposit intangible 1,489 Deferred tax asset 4,263 Other assets 1,039 Total assets acquired $ 151,532 Liabilities assumed: Deposits $ 138,241 Other liabilities 1,259 Total liabilities assumed $ 139,500 Net assets acquired $ 12,032 Goodwill recorded in acquisition 5,237
Summary of fair value adjustments made to the amortized cost basis to present a fair value of the loans acquired	Dollars in Thousands At March 1, 2018 Gross principal balance $ 124,545 Fair value adjustment on pools of non-credit impaired loans (1,703) Fair value adjustment on purchased credit impaired loans (1,168) Fair value of acquired loans $ 121,674
Summary of portion of the loan balances that have been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan	Dollars in Thousands At March 1, 2018 Contractually required principal and interest at acquisition $ 2,469 Contractual cashflows not expected to be collected (non-accretable discount) (922) Expected cash flows at acquisition 1,547 Interest component of expected cash flows (246) Fair value for loans acquired under ASC 310-30 $ 1,301

Nature of Business and Its Si_3

Nature of Business and Its Significant Accounting Policies - Consolidation (Details) - The Bank of Delmarva	9 Months Ended
	Sep. 30, 2019
DHB Development LLC
Principles of Consolidation
Ownership interest (as a percent)	40.55%
West Nithsdale Enterprises LLC
Principles of Consolidation
Ownership interest (as a percent)	10.00%
FBW LLC
Principles of Consolidation
Ownership interest (as a percent)	50.00%

Nature of Business and Its Si_4

Nature of Business and Its Significant Accounting Policies - Recent Accounting Pronouncements (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017USD ($)	Sep. 30, 2019USD ($)lease	Jan. 01, 2019USD ($)
New accounting pronouncements
Number of operating leases | lease			7
Number of finance leases | lease			1
Lease liability			$ 3,314
Federal corporate income tax rate	21.00%
Reclassification adjustment for stranded income tax effects from accumulated other comprehensive income to retained earnings		$ 44
Other Assets
New accounting pronouncements
Lease right-of-use asset			3,274	$ 3,600
Other Liabilities
New accounting pronouncements
Lease liability			$ 3,314	3,600
ASU 2016-02 | Other Assets
New accounting pronouncements
Lease right-of-use asset				3,600
ASU 2016-02 | Other Liabilities
New accounting pronouncements
Lease liability				$ 3,600

Nature of Business and Its Si_5

Nature of Business and Its Significant Accounting Policies - OREO (Details) $ in Thousands	Sep. 30, 2019USD ($)property	Dec. 31, 2018USD ($)property
Nature of Business and Its Significant Accounting Policies
Number of properties | property	7	9
Other real estate owned | $	$ 3,641	$ 3,660

Investment Securities - Availab

Investment Securities - Available for sale (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Marketable securities
Amortized Cost	$ 54,985	$ 52,294
Gross Unrealized Gains	1,032	201
Gross Unrealized Losses	163	1,195
Fair Value	55,854	51,300
Obligations of U.S. Government agencies
Debt securities
Amortized Cost	8,184	9,469
Gross Unrealized Gains	187	47
Gross Unrealized Losses	8	96
Fair Value	8,363	9,420
Obligations of States and political subdivisions
Debt securities
Amortized Cost	24,636	21,383
Gross Unrealized Gains	725	139
Gross Unrealized Losses	29	426
Fair Value	25,332	21,096
Mortgage-backed securities
Debt securities
Amortized Cost	20,665	19,942
Gross Unrealized Gains	120	15
Gross Unrealized Losses	78	553
Fair Value	20,707	19,404
Equity securities
Equity securities
Amortized Cost	1,500	1,500
Gross Unrealized Losses	48	120
Fair Value	$ 1,452	$ 1,380

Investment Securities - Unreali

Investment Securities - Unrealized loss position (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Marketable securities - Fair Value
Less than 12 months	$ 9,017	$ 18,577
12 months or more	9,456	32,724
Total	18,473	51,300
Marketable securities - Unrealized Loss
Less than 12 months	52	209
12 months or more	111	985
Total	163	1,195
Obligations of U.S. Government agencies
Debt securities - Fair Value
Less than 12 months	999	3,973
12 months or more	2,997	5,927
Total	3,996	9,900
Debt securities - Unrealized Loss
Less than 12 months	2	18
12 months or more	6	78
Total	8	96
Mortgage-backed securities
Debt securities - Fair Value
Less than 12 months	5,496	5,485
12 months or more	4,754	13,440
Total	10,250	18,924
Debt securities - Unrealized Loss
Less than 12 months	21	111
12 months or more	57	442
Total	78	553
Obligations of States and political subdivisions
Debt securities - Fair Value
Less than 12 months	2,522	9,119
12 months or more	253	11,977
Total	2,775	21,096
Debt securities - Unrealized Loss
Less than 12 months	29	81
12 months or more		345
Total	29	426
Equity securities
Equity securities - Fair Value
12 months or more	1,452	1,380
Total	1,452	1,380
Equity securities - Unrealized Loss
12 months or more	48	120
Total	$ 48	$ 120

Investment Securities - Maturit

Investment Securities - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Amortized Cost
Due in one year or less	$ 3,023
Due after one year through five years	2,491
Due after five years through ten years	12,680
Due after ten years or more	16,126
Mortgage-backed, due in monthly installments	20,665
Amortized Cost	54,985	$ 52,294
Fair Value
Due in one year or less	3,018
Due after one year through five years	2,489
Due after five years through ten years	13,139
Due after ten years or more	16,502
Mortgage-backed, due in monthly installments	20,706
Fair Value	$ 55,854	$ 51,300

Loans, Allowance for Credit L_3

Loans, Allowance for Credit Losses and Impaired Loans - Major Categories of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Investment Securities
Loans before unamortized discounts and allowance for loan losses	$ 634,329		$ 633,903
Less: Unamortized discounts on acquired loans	(668)		(1,327)
Less: Allowance for loan losses	(7,054)	$ (7,066)	(7,063)	$ (7,225)	$ (7,096)	$ (6,703)
Carrying amount	626,607		625,513
Other real estate secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	425,737		426,221
Less: Allowance for loan losses	(4,393)	(4,359)	(4,276)	(4,442)	(4,434)	(3,858)
1 - 4 Family residential secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	143,280		146,303
Less: Allowance for loan losses	(1,461)	(1,343)	(1,643)	(1,935)	(1,887)	(1,744)
Other
Investment Securities
Loans before unamortized discounts and allowance for loan losses	65,312		61,379
Less: Allowance for loan losses	(741)	$ (634)	(654)	$ (417)	$ (444)	$ (536)
Originated Loans
Investment Securities
Loans before unamortized discounts and allowance for loan losses	540,842		521,872
Originated Loans | Other real estate secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	369,039		356,141
Originated Loans | 1 - 4 Family residential secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	120,160		116,771
Originated Loans | Other
Investment Securities
Loans before unamortized discounts and allowance for loan losses	51,643		48,960
Acquired Loans
Investment Securities
Loans before unamortized discounts and allowance for loan losses	93,487		112,032
Carrying amount	92,819		110,705
Acquired Loans | Other real estate secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	56,698		70,080
Acquired Loans | 1 - 4 Family residential secured
Investment Securities
Loans before unamortized discounts and allowance for loan losses	23,120		29,532
Acquired Loans | Other
Investment Securities
Loans before unamortized discounts and allowance for loan losses	$ 13,669		$ 12,420

Loans, Allowance for Credit L_4

Loans, Allowance for Credit Losses and Impaired Loans - Loan Impairment and Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Allowance for Loan and Lease Losses [Roll Forward]
Loans and Leases Receivable, Allowance, Beginning Balance	$ 7,066	$ 7,096	$ 7,063	$ 6,703
Charge-offs	(454)	(227)	(1,251)	(601)
Recoveries	142	56	342	298
Provision for credit losses	300	300	900	825
Loans and Leases Receivable, Allowance, Ending Balance	7,054	7,225	7,054	7,225
Individually evaluated for impairment: Balance in allowance	937		937		$ 1,042
Individually evaluated for impairment: Related loan balance	19,434		19,434		25,454
Collectively evaluated for impairment: Balance in allowance	6,117		6,117		6,021
Collectively evaluated for impairment: Related loan balance	614,227		614,227		607,122
Unamortized discounts on acquired loans	668		668		1,327
Other real estate secured
Allowance for Loan and Lease Losses [Roll Forward]
Loans and Leases Receivable, Allowance, Beginning Balance	4,359	4,434	4,276	3,858
Charge-offs		(143)	(421)	(347)
Recoveries	84	9	97	77
Provision for credit losses	(50)	142	441	854
Loans and Leases Receivable, Allowance, Ending Balance	4,393	4,442	4,393	4,442
Individually evaluated for impairment: Balance in allowance	47		47		278
Individually evaluated for impairment: Related loan balance	14,114		14,114		14,947
Collectively evaluated for impairment: Balance in allowance	4,346		4,346		3,998
Collectively evaluated for impairment: Related loan balance	411,215		411,215		410,527
1 - 4 Family residential secured
Allowance for Loan and Lease Losses [Roll Forward]
Loans and Leases Receivable, Allowance, Beginning Balance	1,343	1,887	1,643	1,744
Charge-offs			(198)	(52)
Recoveries	24	19	165	143
Provision for credit losses	94	29	(149)	100
Loans and Leases Receivable, Allowance, Ending Balance	1,461	1,935	1,461	1,935
Individually evaluated for impairment: Balance in allowance	251		251		586
Individually evaluated for impairment: Related loan balance	4,102		4,102		8,775
Collectively evaluated for impairment: Balance in allowance	1,210		1,210		1,057
Collectively evaluated for impairment: Related loan balance	139,084		139,084		137,192
Other
Allowance for Loan and Lease Losses [Roll Forward]
Loans and Leases Receivable, Allowance, Beginning Balance	634	444	654	536
Charge-offs	(454)	(84)	(632)	(202)
Recoveries	34	28	80	78
Provision for credit losses	527	29	639	5
Loans and Leases Receivable, Allowance, Ending Balance	741	417	741	417
Individually evaluated for impairment: Balance in allowance	639		639		178
Individually evaluated for impairment: Related loan balance	1,218		1,218		1,732
Collectively evaluated for impairment: Balance in allowance	102		102		476
Collectively evaluated for impairment: Related loan balance	63,928		63,928		59,403
Unallocated
Allowance for Loan and Lease Losses [Roll Forward]
Loans and Leases Receivable, Allowance, Beginning Balance	730	331	490	565
Provision for credit losses	(271)	100	(31)	(134)
Loans and Leases Receivable, Allowance, Ending Balance	459	$ 431	459	$ 431
Collectively evaluated for impairment: Balance in allowance	$ 459		$ 459		$ 490

Loans, Allowance for Credit L_5

Loans, Allowance for Credit Losses and Impaired Loans - Loan by Risk Rating (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans by risk rating
Loans and leases receivable, gross	$ 633,661	$ 632,576
Non-Accrual	5,127	9,148
Troubled debt restructures	10,787	17,816
Performing
Loans by risk rating
Troubled debt restructures	8,370	11,134
Non-performing
Loans by risk rating
Troubled debt restructures	2,417	6,682
TDRS on Non-accrual	2,204	6,012
Past Due 30-89 | Non-performing
Loans by risk rating
Troubled debt restructures	213	671
Excellent
Loans by risk rating
Loans and leases receivable, gross	7,455	10,899
Superior
Loans by risk rating
Loans and leases receivable, gross	5,979	9,805
Good
Loans by risk rating
Loans and leases receivable, gross	595,008	581,295
Fair
Loans by risk rating
Loans and leases receivable, gross	12,564	14,788
Marginal
Loans by risk rating
Loans and leases receivable, gross		787
Substandard
Loans by risk rating
Loans and leases receivable, gross	12,655	15,003
Other real estate secured
Loans by risk rating
Loans and leases receivable, gross	425,330	426,319
Non-Accrual	2,806	4,423
Troubled debt restructures	8,178	10,341
Other real estate secured | Performing
Loans by risk rating
Troubled debt restructures	7,058	7,155
Other real estate secured | Non-performing
Loans by risk rating
Troubled debt restructures	1,120	3,186
TDRS on Non-accrual	1,120	2,546
Other real estate secured | Past Due 30-89 | Non-performing
Loans by risk rating
Troubled debt restructures		640
Other real estate secured | Excellent
Loans by risk rating
Loans and leases receivable, gross	1,098	1,143
Other real estate secured | Superior
Loans by risk rating
Loans and leases receivable, gross	3,851	7,523
Other real estate secured | Good
Loans by risk rating
Loans and leases receivable, gross	404,785	402,092
Other real estate secured | Fair
Loans by risk rating
Loans and leases receivable, gross	7,968	8,084
Other real estate secured | Marginal
Loans by risk rating
Loans and leases receivable, gross		407
Other real estate secured | Substandard
Loans by risk rating
Loans and leases receivable, gross	7,628	7,071
1 - 4 Family residential secured
Loans by risk rating
Loans and leases receivable, gross	143,185	145,967
Non-Accrual	2,107	4,547
Troubled debt restructures	2,443	7,269
1 - 4 Family residential secured | Performing
Loans by risk rating
Troubled debt restructures	1,312	3,979
1 - 4 Family residential secured | Non-performing
Loans by risk rating
Troubled debt restructures	1,131	3,290
TDRS on Non-accrual	918	3,290
1 - 4 Family residential secured | Past Due 30-89 | Non-performing
Loans by risk rating
Troubled debt restructures	213
1 - 4 Family residential secured | Superior
Loans by risk rating
Loans and leases receivable, gross	254	267
1 - 4 Family residential secured | Good
Loans by risk rating
Loans and leases receivable, gross	136,693	133,401
1 - 4 Family residential secured | Fair
Loans by risk rating
Loans and leases receivable, gross	2,977	4,598
1 - 4 Family residential secured | Marginal
Loans by risk rating
Loans and leases receivable, gross		112
1 - 4 Family residential secured | Substandard
Loans by risk rating
Loans and leases receivable, gross	3,261	7,589
Other
Loans by risk rating
Loans and leases receivable, gross	65,146	60,290
Non-Accrual	214	178
Troubled debt restructures	166	206
Other | Non-performing
Loans by risk rating
Troubled debt restructures	166	206
TDRS on Non-accrual	166	175
Other | Past Due 30-89 | Non-performing
Loans by risk rating
Troubled debt restructures		31
Other | Excellent
Loans by risk rating
Loans and leases receivable, gross	6,357	9,756
Other | Superior
Loans by risk rating
Loans and leases receivable, gross	1,874	2,015
Other | Good
Loans by risk rating
Loans and leases receivable, gross	53,530	45,802
Other | Fair
Loans by risk rating
Loans and leases receivable, gross	1,619	2,106
Other | Marginal
Loans by risk rating
Loans and leases receivable, gross		268
Other | Substandard
Loans by risk rating
Loans and leases receivable, gross	$ 1,766	$ 343

Loans, Allowance for Credit L_6

Loans, Allowance for Credit Losses and Impaired Loans - Aging (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Past due financing receivables
Total Past Due	$ 5,683	$ 10,480
Current Balance	628,646	623,423
Total Financing Receivables	634,329	633,903
Recorded Investment >90 Days Past Due and Accruing		606
Non-accrual loans	5,127	9,148
Unamortized discounts on acquired loans	668	1,327
Other real estate secured
Past due financing receivables
Total Past Due	2,574	5,747
Current Balance	423,163	420,474
Total Financing Receivables	425,737	426,221
Recorded Investment >90 Days Past Due and Accruing		338
Non-accrual loans	2,806	4,423
1 - 4 Family residential secured
Past due financing receivables
Total Past Due	2,931	3,397
Current Balance	140,349	142,906
Total Financing Receivables	143,280	146,303
Non-accrual loans	2,107	4,547
Other
Past due financing receivables
Total Past Due	178	1,336
Current Balance	65,134	60,043
Total Financing Receivables	65,312	61,379
Recorded Investment >90 Days Past Due and Accruing		268
Non-accrual loans	214	178
30-59 Days Past Due
Past due financing receivables
Total Past Due	2,423	3,203
Non-accrual loans	1,200
30-59 Days Past Due | Other real estate secured
Past due financing receivables
Total Past Due	569	876
30-59 Days Past Due | 1 - 4 Family residential secured
Past due financing receivables
Total Past Due	1,696	1,292
30-59 Days Past Due | Other
Past due financing receivables
Total Past Due	158	1,035
60-89 Days Past Due
Past due financing receivables
Total Past Due	639	2,158
Non-accrual loans	117
60-89 Days Past Due | Other real estate secured
Past due financing receivables
Total Past Due		1,742
60-89 Days Past Due | 1 - 4 Family residential secured
Past due financing receivables
Total Past Due	619	383
60-89 Days Past Due | Other
Past due financing receivables
Total Past Due	20	33
Greater than 90 Days Past Due
Past due financing receivables
Total Past Due	2,621	5,119
Non-accrual loans	2,600	4,500
Greater than 90 Days Past Due | Other real estate secured
Past due financing receivables
Total Past Due	2,005	3,129
Greater than 90 Days Past Due | 1 - 4 Family residential secured
Past due financing receivables
Total Past Due	$ 616	1,722
Greater than 90 Days Past Due | Other
Past due financing receivables
Total Past Due		$ 268

Loans, Allowance for Credit L_7

Loans, Allowance for Credit Losses and Impaired Loans - Impaired loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Impaired loans with specific reserves - Recorded Investment	$ 3,230	$ 7,267
Impaired loans with specific reserves - Unpaid Principal Balance	3,230	7,395
Impaired loans with specific reserves - Interest Income Recognized	199	422
Impaired loans with specific reserves - Specific Reserve	937	1,042
Impaired loans with specific reserves - Average Recorded Investment	5,249	8,701
Impaired loans with no specific reserves - Recorded Investment	18,925	20,415
Impaired loans with no specific reserves - Unpaid Principal Balance	20,181	22,721
Impaired loans with no specific reserves - Interest Income Recognized	1,036	1,384
Impaired loans with no specific reserves - Average Recorded Investment	19,670	15,672
Impaired loans specific reserves - Recorded Investment	22,155	27,682
Impaired loans specific reserves - Unpaid Principal Balance	23,411	30,116
Impaired loans specific reserves - Interest Income Recognized	1,235	1,806
Impaired loans specific reserves - Average Recorded Investment	24,919	24,374
Loans
Carrying amount	626,607	625,513
Unamortized discounts on acquired loans	668	1,327
PCI loans
Loans
Carrying amount	810	1,110
Unamortized discounts on acquired loans	257
Individual evaluation for impairment not required	1,900
Other real estate secured
Financing Receivable, Impaired [Line Items]
Impaired loans with specific reserves - Recorded Investment	2,278	3,276
Impaired loans with specific reserves - Unpaid Principal Balance	2,278	3,276
Impaired loans with specific reserves - Interest Income Recognized	188	246
Impaired loans with specific reserves - Specific Reserve	47	412
Impaired loans with specific reserves - Average Recorded Investment	2,777	3,690
Impaired loans with no specific reserves - Recorded Investment	12,339	12,849
Impaired loans with no specific reserves - Unpaid Principal Balance	12,815	13,905
Impaired loans with no specific reserves - Interest Income Recognized	768	1,016
Impaired loans with no specific reserves - Average Recorded Investment	12,594	10,691
1 - 4 Family residential secured
Financing Receivable, Impaired [Line Items]
Impaired loans with specific reserves - Recorded Investment	738	3,947
Impaired loans with specific reserves - Unpaid Principal Balance	738	4,075
Impaired loans with specific reserves - Interest Income Recognized		174
Impaired loans with specific reserves - Specific Reserve	251	586
Impaired loans with specific reserves - Average Recorded Investment	2,343	4,989
Impaired loans with no specific reserves - Recorded Investment	4,261	5,761
Impaired loans with no specific reserves - Unpaid Principal Balance	5,041	7,011
Impaired loans with no specific reserves - Interest Income Recognized	158	256
Impaired loans with no specific reserves - Average Recorded Investment	5,011	3,902
Other
Financing Receivable, Impaired [Line Items]
Impaired loans with specific reserves - Recorded Investment	214	44
Impaired loans with specific reserves - Unpaid Principal Balance	214	44
Impaired loans with specific reserves - Interest Income Recognized	11	2
Impaired loans with specific reserves - Specific Reserve	639	44
Impaired loans with specific reserves - Average Recorded Investment	129	22
Impaired loans with no specific reserves - Recorded Investment	2,325	1,805
Impaired loans with no specific reserves - Unpaid Principal Balance	2,325	1,805
Impaired loans with no specific reserves - Interest Income Recognized	110	112
Impaired loans with no specific reserves - Average Recorded Investment	$ 2,065	$ 1,080

Loans, Allowance for Credit L_8

Loans, Allowance for Credit Losses and Impaired Loans - Acquired loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	$ 634,329		$ 634,329		$ 633,903
Carrying amount	626,607		626,607		625,513
Acquired Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	93,487		93,487		112,032
Carrying amount	92,819		92,819		110,705
PCI loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	1,067		1,067		1,692
Carrying amount	810		810		1,110
Changes in accretable yield under ASC 310-20:
Accretion	(24)	$ (33)	(80)	$ (65)
Non-accretable yield on purchase credit impaired loans	232		232		463
Non PCI loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, before Fees, Gross	92,420		92,420		110,340
Carrying amount	92,009		92,009		109,595
Changes in accretable yield under ASC 310-20:
Balance at beginning of period			745
Acquisitions					1,703
Accretion			(335)		(958)
Balance at end of period	$ 410		$ 410		$ 745

Loans, Allowance for Credit L_9

Loans, Allowance for Credit Losses and Impaired Loans - Concentration Risk (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Loans, Allowance for Credit Losses and Impaired Loans
Commitments to loan additional funds	$ 0	$ 0

Credit Facilities - Federal Hom

Credit Facilities - Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Advances from Federal Home Loan Banks
Outstanding balance	$ 48,995	$ 43,489
Federal Home Loan Bank of Atlanta
Advances from Federal Home Loan Banks
Credit facility from FHLB	192,400
Remaining credit availability	143,400
Outstanding balance	48,995	43,489
Average short-term borrowings	3,200	1,400
Principal balances outstanding on pledged loans	157,200	135,300
Federal Home Loan Bank of Atlanta | FHLB loan maturing June 2019
Advances from Federal Home Loan Banks
Outstanding balance		$ 15,000
Interest rate (as a percent)		1.51%
Federal Home Loan Bank of Atlanta | FHLB advance maturing June 2020
Advances from Federal Home Loan Banks
Outstanding balance	$ 15,000
Interest rate (as a percent)	2.09%
Federal Home Loan Bank of Atlanta | FHLB advance maturing November 2020 with 3.04%
Advances from Federal Home Loan Banks
Outstanding balance	$ 5,000	$ 5,000
Interest rate (as a percent)	3.04%	3.04%
Federal Home Loan Bank of Atlanta | FHLB advance maturing November 2020 with 2.91%
Advances from Federal Home Loan Banks
Outstanding balance	$ 5,000	$ 5,000
Interest rate (as a percent)	2.91%	2.91%
Federal Home Loan Bank of Atlanta | FHLB advance maturing April 2021
Advances from Federal Home Loan Banks
Outstanding balance	$ 6,000
Interest rate (as a percent)	2.44%
Federal Home Loan Bank of Atlanta | FHLB advance maturing May 2021
Advances from Federal Home Loan Banks
Outstanding balance	$ 10,000	$ 10,000
Interest rate (as a percent)	2.68%	2.68%
Federal Home Loan Bank of Atlanta | FHLB advance maturing October 2022
Advances from Federal Home Loan Banks
Outstanding balance	$ 5,000	$ 5,000
Interest rate (as a percent)	3.15%	3.15%
Federal Home Loan Bank of Atlanta | FHLB advance maturing March 2023
Advances from Federal Home Loan Banks
Outstanding balance	$ 1,500	$ 1,821
Interest rate (as a percent)	1.62%	1.62%
Federal Home Loan Bank of Atlanta | FHLB advance maturing March 2026
Advances from Federal Home Loan Banks
Outstanding balance	$ 1,495	$ 1,668
Interest rate (as a percent)	1.99%	1.99%

Credit Facilities - Subordinate

Credit Facilities - Subordinated Loans (Details) - USD ($) $ in Millions	Jan. 31, 2018	Oct. 31, 2015
Subordinated loan maturing October 2025
Long-Term Obligations
Aggregate principal amount		$ 2
Interest rate (as a percent)		6.71%
Subordinated loan maturing April 2028
Long-Term Obligations
Aggregate principal amount	$ 4.5
Interest rate (as a percent)	6.875%

Credit Facilities - Secured Cre

Credit Facilities - Secured Credit Facility (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Secured Credit
Credit Facilities
Maximum borrowing capacity	$ 5
Borrowing outstanding	0	$ 0
Unsecured Credit
Credit Facilities
Maximum borrowing capacity	5
Borrowing outstanding	$ 0	$ 0

Credit Facilities - Maturities

Credit Facilities - Maturities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Maturities on long-term debt
2019	$ 165
2020	25,659
2021	16,659
2022	5,659
2023	$ 337

Lease Commitments - Lease Infor

Lease Commitments - Lease Information (Details)	9 Months Ended
	Sep. 30, 2019USD ($)lease
Lease information
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	true
Number of leases for administrative offices and branch locations	8
Number of operating leases	7
Number of finance leases	1
Options to renew	true
Renewal term of the lease	5 years
Maximum
Lease information
Initial term of leases not recorded on the balance sheet	12 months
Threshold of discounted present value of future cash flows below which a lease is not recorded on the balance sheet | $	$ 25,000
Term of lease including available lease renewal options	15 years

Lease Commitments - Supplementa

Lease Commitments - Supplemental Lease Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019
Balance Sheet
Lease liability	$ 3,314
Lease cost information
Weighted average lease term, in years	7 years 6 months 18 days
Weighted average discount rate	3.28%
Operating cash flows	$ 376
Premises and Equipment Expenses
Income Statement
Operating lease cost	364
Other Assets
Balance Sheet
Lease right-of-use asset	3,274	$ 3,600
Other Liabilities
Balance Sheet
Lease liability	$ 3,314	$ 3,600

Lease Commitments - Maturities

Lease Commitments - Maturities of lease Liabilities (Details) $ in Thousands	Sep. 30, 2019USD ($)
Lease Commitments
One year or less	$ 468
One to three years	772
Three to five years	714
Over five years	2,002
Total lease payments	3,956
Less: Interest	(642)
Present value of lease payments	$ 3,314

Stock Option Plans - Delmar Ban

Stock Option Plans - Delmar Bancorp Stock Option Plan (Details) - Stock options - Delmar 2004 Stock Option Plan	9 Months Ended
	Sep. 30, 2019shares
Equity Compensation
Contractual life	10 years
Vesting period (in years)	4 years
Options available to be granted	0
Number of option exercised	0

Stock Option Plans - Assumption

Stock Option Plans - Assumption of Liberty Bell Stock Option Plan (Details) - Stock options - Liberty 2004 Stock Option Plan	1 Months Ended
	Feb. 28, 2018$ / sharesshares
Equity Compensation
Contractual life	10 years
Vesting period (in years)	5 years
Conversion Ratio, stock based compensation	0.2857
Number of option converted | shares	48,225
Exercise price of option converted | $ / shares	$ 1.18
Number of option outstanding after conversion | shares	13,771
Exercise price of option outstanding | $ / shares	$ 4.14

Stock Option Plans - Liberty St

Stock Option Plans - Liberty Stock Option Plan (Details) - Stock options - Liberty 2004 Stock Option Plan - USD ($)	9 Months Ended
	Sep. 30, 2019	Feb. 28, 2018
Outstanding shares
Shares	8,709
Number of option exercised	0
Number of options forfeited	0
Weighted Average Exercise Price
Average price		$ 4.14
Employees
Outstanding shares
Shares	2,355
Weighted Average Exercise Price
Average price	$ 4.14
Outstanding value
Amount	$ 9,750
Directors
Outstanding shares
Shares	6,354
Weighted Average Exercise Price
Average price	$ 4.14
Outstanding value
Amount	$ 26,306

Restricted Stock Plan (Details)

Restricted Stock Plan (Details) - Restricted stock plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stock options
Shares reserved for issuance thereunder	405,805		405,805
Weighted Average Grant Date Fair Value
Stock based compensation expense, before tax	$ 5	$ 10	$ 16	$ 26
Stock based compensation expense, net of tax	4	$ 7	12	$ 19
Total unrecognized compensation cost related to non-vested restricted stock units	$ 31		$ 31
Weighted-average period over which unrecognized compensation cost will be recognized			2 years
Employees
Shares
Non-vested balance at beginning of period (in shares)			9,000
Vested (in shares)			(3,000)
Non-vested balance at end of period (in shares)	6,000		6,000
Weighted Average Grant Date Fair Value
Non-vested balance at beginning of period (in dollars per share)			$ 7.30
Vested (in dollars per share)			7.30
Non-vested balance at end of period (in dollars per share)	$ 7.30		$ 7.30

Earnings Per Share - Diluted Ea

Earnings Per Share - Diluted Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Diluted earnings (loss) per share
Net income (loss)	$ 1,785	$ 1,888	$ 4,935	$ 3,948
Weighted average shares outstanding	9,985	9,976	9,985	9,595
Basic earnings per share	$ 0.179	$ 0.189	$ 0.494	$ 0.411
Effect of dilutive securities:
Cash received for the exercise of stock options				$ 12
Less: Treasury stock purchased with assumed proceeds from exercise	6	7	6	6
Diluted weighted average shares and common stock equivalents	10,000	9,997	10,000	9,611
Diluted earnings per share	$ 0.179	$ 0.189	$ 0.494	$ 0.411
Restricted stock plan
Effect of dilutive securities:
Weighted average shares outstanding under options/ restricted stock plans	9	14	9	10
Delmar 2004 Stock Option Plan | Stock options
Effect of dilutive securities:
Weighted average shares outstanding under options/ restricted stock plans		23	10	28
Weighted average exercise price		$ 7.54	$ 9.05	$ 9.55
Cash received for the exercise of stock options		$ 173	$ 91	$ 267
Average market value per share	$ 7.42	$ 7.79	$ 7.34	$ 7.47
Liberty 2004 Stock Option Plan | Stock options
Effect of dilutive securities:
Weighted average shares outstanding under options/ restricted stock plans	12	14	12	12
Weighted average exercise price	$ 3.98	$ 4.01	$ 3.98	$ 4.02
Cash received for the exercise of stock options	$ 48	$ 56	$ 48	$ 48
Average market value per share	$ 7.42	$ 7.79	$ 7.34	$ 7.47

Regulatory Capital Requiremen_3

Regulatory Capital Requirements (Details)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Regulatory Capital Requirements
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	10.30%	9.60%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	10.30%	9.60%
Total Capital (to risk weighted assets), ratio (as a percent)	12.60%	11.80%
Tier 1 Leverage ratio (as a percent)	8.30%	8.00%
Minimum | FDIC
Regulatory Capital Requirements
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	4.50%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	6.00%
Total Capital (to risk weighted assets), ratio (as a percent)	8.00%
Tier 1 Leverage ratio (as a percent)	4.00%
Basel III Capital Rules | FDIC
Regulatory Capital Requirements
Capital conservation buffer ratio	2.50%
Capital conservation buffer ratio annual increment during phase-in period	0.625%
Implementation period of capital conservation buffer requirement	4 years
Basel III Capital Rules | Minimum | FDIC
Regulatory Capital Requirements
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	7.00%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	8.50%
Total Capital (to risk weighted assets), ratio (as a percent)	10.50%

Regulatory Capital Requiremen_4

Regulatory Capital Requirements - Bank's capital amounts (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Total Capital Ratio (To Risk Weighted Assets)
Actual	$ 78,392	$ 72,344
Actual, ratio	12.60%	11.80%
For Capital Adequacy Purposes	$ 65,525	$ 60,466
For Capital Adequacy Purposes, ratio	10.50%	9.90%
Tier I Capital Ratio (To Risk Weighted Assets)
Actual	$ 64,573	$ 58,516
Actual, ratio	10.30%	9.60%
For Capital Adequacy Purposes	$ 53,044	$ 48,220
For Capital Adequacy Purposes, ratio	8.50%	7.90%
Common Equity Tier I Ratio (To Risk Weighted Assets)
Actual	$ 64,573	$ 58,516
Actual, ratio	10.30%	9.60%
For Capital Adequacy Purposes	$ 43,683	$ 39,035
For Capital Adequacy Purposes, ratio	7.00%	6.40%
Tier I Leverage Ratio (To Average Assets)
Actual	$ 64,573	$ 58,516
Actual, ratio	8.30%	8.00%
For Capital Adequacy Purposes	$ 31,052	$ 29,377
For Capital Adequacy Purposes, ratio	4.00%	4.00%
The Bank of Delmarva
Total Capital Ratio (To Risk Weighted Assets)
Actual	$ 77,192	$ 71,498
Actual, ratio	12.40%	11.70%
For Capital Adequacy Purposes	$ 65,469	$ 60,425
For Capital Adequacy Purposes, ratio	10.50%	9.90%
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 62,351	$ 61,190
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	10.00%	10.00%
Tier I Capital Ratio (To Risk Weighted Assets)
Actual	$ 69,873	$ 64,170
Actual, ratio	11.20%	10.50%
For Capital Adequacy Purposes	$ 52,999	$ 48,187
For Capital Adequacy Purposes, ratio	8.50%	7.90%
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 49,881	$ 48,952
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	8.00%	8.00%
Common Equity Tier I Ratio (To Risk Weighted Assets)
Actual	$ 69,873	$ 64,170
Actual, ratio	11.20%	10.50%
For Capital Adequacy Purposes	$ 43,646	$ 39,009
For Capital Adequacy Purposes, ratio	7.00%	6.40%
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 40,528	$ 39,774
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	6.50%	6.50%
Tier I Leverage Ratio (To Average Assets)
Actual	$ 69,873	$ 64,170
Actual, ratio	9.00%	8.70%
For Capital Adequacy Purposes	$ 31,052	$ 29,377
For Capital Adequacy Purposes, ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions	$ 38,814	$ 36,721
To Be Well Capitalized Under Prompt Corrective Action Provisions, ratio	5.00%	5.00%

Fair Values of Financial Inst_3

Fair Values of Financial Instruments - Estimated Fair Value and Related Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount
Financial assets:
Cash and due from banks	$ 31,483	$ 24,347
Interest bearing deposits	29,143	4,093
Federal funds sold	15,458	1,254
Securities: Available for sale	55,854	51,300
Loans, net of allowance for credit losses	626,607	625,513
Accrued interest receivable	2,098	2,103
Federal Home Loan Bank stock	2,761	2,652
Atlantic Central Bankers stock	131	131
Other investments	1,571	1,537
Financial liabilities:
Deposits	660,401	614,926
Accrued interest payable	567	392
FHLB advances and notes payable	55,495	56,989
Unrecognized financial instruments:
Commitments to extend credit	104,101	114,395
Standby letters of credit	1,853	3,276
Estimated Fair Value
Financial assets:
Cash and due from banks	31,483	24,347
Interest bearing deposits	29,143	4,093
Federal funds sold	15,458	1,254
Securities: Available for sale	55,854	51,300
Loans, net of allowance for credit losses	612,003	604,290
Accrued interest receivable	2,098	2,103
Federal Home Loan Bank stock	2,761	2,652
Atlantic Central Bankers stock	131	131
Other investments	1,571	1,537
Financial liabilities:
Deposits	629,813	570,509
Accrued interest payable	567	392
FHLB advances and notes payable	56,065	56,979
Unrecognized financial instruments:
Commitments to extend credit	104,101	114,395
Standby letters of credit	$ 1,853	$ 3,276

Fair Values of Financial Inst_4

Fair Values of Financial Instruments - Financial Instruments Not Disclosed Elsewhere (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Carrying Amount
Financial assets:
Loans, net	$ 626,607	$ 625,513
Financial liabilities:
Interest-bearing deposits	660,401	614,926
FHLB advances and notes payable	55,495	56,989
Estimated Fair Value
Financial assets:
Loans, net	612,003	604,290
Financial liabilities:
Interest-bearing deposits	629,813	570,509
FHLB advances and notes payable	56,065	56,979
Estimated Fair Value | Level 2
Financial liabilities:
Interest-bearing deposits	629,813	570,509
FHLB advances and notes payable	56,065	56,979
Estimated Fair Value | Level 3
Financial assets:
Loans, net	$ 612,003	$ 604,290

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - Measured on a recurring basis - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities available for sale:
Total securities available for sale	$ 55,854	$ 51,300
Obligations of U.S. Government agencies
Securities available for sale:
Total securities available for sale	8,363	9,420
Obligations of States and political subdivisions
Securities available for sale:
Total securities available for sale	25,332	21,096
Mortgage-backed securities
Securities available for sale:
Total securities available for sale	20,707	19,404
Equity securities
Securities available for sale:
Total securities available for sale	1,452	1,380
Level 2
Securities available for sale:
Total securities available for sale	55,854	51,300
Level 2 | Obligations of U.S. Government agencies
Securities available for sale:
Total securities available for sale	8,363	9,420
Level 2 | Obligations of States and political subdivisions
Securities available for sale:
Total securities available for sale	25,332	21,096
Level 2 | Mortgage-backed securities
Securities available for sale:
Total securities available for sale	20,707	19,404
Level 2 | Equity securities
Securities available for sale:
Total securities available for sale	$ 1,452	$ 1,380

Fair Value Measurements - Non-r

Fair Value Measurements - Non-recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities available for sale:
Non financial assets measured at fair value on a recurring basis	$ 0
Non financial liabilities measured at fair value on a recurring basis	0
Fair Value, Nonrecurring
Securities available for sale:
Fair Value, assets	24,859	$ 30,300
Fair Value, Nonrecurring | Impaired Loans
Securities available for sale:
Fair Value, assets	21,218	26,640
Fair Value, Nonrecurring | OREO
Securities available for sale:
Fair Value, assets	3,641	3,660
Fair Value, Nonrecurring | Level 2
Securities available for sale:
Fair Value, assets	3,641	3,660
Fair Value, Nonrecurring | Level 2 | OREO
Securities available for sale:
Fair Value, assets	3,641	3,660
Fair Value, Nonrecurring | Level 3
Securities available for sale:
Fair Value, assets	21,218	26,640
Fair Value, Nonrecurring | Level 3 | Impaired Loans
Securities available for sale:
Fair Value, assets	$ 21,218	$ 26,640

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Changes in goodwill
Balance at beginning of the period	$ 5,237
Liberty Bell Bank acquisition		$ 5,237
Balance at end of the period	$ 5,237	$ 5,237

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Core Deposit Intangible (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Changes in the core deposit intangible
Balance at the beginning of the period			$ 1,069
Amortization	$ (76)	$ (126)	(226)	$ (294)
Balance at the end of the period	843		$ 843		$ 1,069
Core deposit intangible
Intangibles
Amortization period			7 years
Changes in the core deposit intangible
Balance at the beginning of the period			$ 1,069
Liberty Bell Bank acquisition					1,489
Amortization	(76)	$ (126)	(226)	$ (294)	(420)
Balance at the end of the period	843		843		$ 1,069
Remaining amortization
Remainder of 2019	76		76
2020	216		216
2021	155		155
2022	128		128
2023	128		128
Thereafter	$ 140		$ 140

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Deposits Purchased Premium (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Deposits Purchased Premium
Accretion period			5 years
Balance at the beginning of the period			$ 27
Liberty Bell Bank acquisition					$ 108
Accretion	$ (6)	$ (27)	(19)	$ (63)	(81)
Balance at the end of the period	8		8		$ 27
Remainder of 2019	4		4
Thereafter	$ 4		$ 4

Liberty Bell Transaction - Cons

Liberty Bell Transaction - Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Details) $ / shares in Units, $ in Thousands	Mar. 01, 2018USD ($)item$ / sharesshares	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Liberty Bell Transaction
Conversion of common stock | shares	0.2857
Cash consideration per share | $ / shares	$ 1.70
Consideration paid:
Purchase price		$ 4,471
Liabilities assumed:
Goodwill			$ 5,237	$ 5,237
Liberty Bell Bank
Liberty Bell Transaction
Number of new branches added | item	3
Consideration paid:
Purchase price	$ 4,471
Common stock issued in acquisition	12,798
Total consideration paid	17,270
Assets acquired:
Cash	11,831
Investment securities	7,605
Investments in correspondent bank stock	180
Loans	121,674
Premises and equipment	2,148
Other real estate owned	946
Accrued interest receivable	358
Intangible assets	1,489
Deferred tax asset	4,263
Other assets	1,039
Total assets acquired	151,532
Liabilities assumed:
Deposits	138,241
Other liabilities	1,259
Total liabilities assumed	139,500
Net assets acquired	12,032
Goodwill	$ 5,237

Liberty Bell Transaction - Fair

Liberty Bell Transaction - Fair Value of Loans Acquired (Details) - Liberty Bell Bank $ in Thousands	Mar. 01, 2018USD ($)
Fair value adjustments made to the amortized cost basis to present a fair value of the loans acquired
Gross principal balance	$ 124,545
Fair value adjustment on pools of non‑credit impaired loans	(1,703)
Fair value adjustment on purchased credit impaired loans	(1,168)
Fair value of acquired loans	$ 121,674

Liberty Bell Transaction - Cred

Liberty Bell Transaction - Credit Adjustment on Acquired Impaired Loans (Details) - Liberty Bell Bank $ in Thousands	Mar. 01, 2018USD ($)
Fair value of loans acquired under ACS 310-30
Contractually required principal and interest at acquisition	$ 2,469
Contractual cashflows not expected to be collected (non‑accretable discount)	(922)
Expected cash flows at acquisition	1,547
Interest component of expected cash flows	(246)
Fair value for loans acquired under ASC 310‑30	$ 1,301

Liberty Bell Transaction - Core

Liberty Bell Transaction - Core Deposit Intangible (Details) - Core deposit intangible - USD ($)	Mar. 01, 2018	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair value of the core deposit intangible
Core deposit intangible value	$ 1,490,000
Core deposit intangible (as a percent)	2.04%
Core deposit intangible, amortization period	7 years
Acquisition related costs		$ 135,000	$ 0	$ 1,300,000

Bank Acquisition (Details)

Bank Acquisition (Details) $ in Thousands	Dec. 13, 2018itemshares	Mar. 01, 2018shares	Sep. 30, 2019USD ($)shares	Sep. 30, 2019USD ($)itemshares	Sep. 30, 2018USD ($)	Dec. 31, 2018shares
Bank Acquisitions
Number of shares issued per share		0.2857
Common stock outstanding			9,985,321	9,985,321		9,985,321
Virginia Partners Bank
Bank Acquisitions
Number of new branches added | item	3
Number of shares issued per share	1.7179
Common stock outstanding			4,085,181	4,085,181
Number of holders of common stock | item				320
Acquisition related costs | $			$ 168	$ 539	$ 0

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Recent Accounting Pronouncements
Federal corporate income tax rate	21.00%
Reclassification adjustment for stranded income tax effects in accumulated other comprehensive income		$ 44