Severn Bancorp (SVBI) 10-K 29 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 25, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SEVERN BANCORP INC
Entity Central Index Key	868,271
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 59,207,531
Entity Common Stock, Shares Outstanding		12,244,826
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 2,382	$ 39,396
Federal funds sold and interest-bearing deposits in other banks	19,471	27,618
Cash and cash equivalents	21,853	67,014
Certificates of deposit held as investment	8,780	100
Securities available for sale, at fair value	10,119	0
Securities held to maturity (fair value of $54,004 and $62,827 at December 31, 2017 and 2016, respectively)	54,303	62,757
Loans held for sale, at fair value at December 31, 2017	4,530	10,307
Loans receivable	668,151	610,278
Allowance for loan losses	(8,055)	(8,969)
Loans, net	660,096	601,309
Real estate acquired through foreclosure	403	973
Restricted stock investments	4,489	5,103
Premises and equipment, net	23,139	24,030
Accrued interest receivable	2,640	2,249
Deferred income taxes	5,302	10,081
Bank owned life insurance	5,064	0
Goodwill	1,099	334
Other assets	2,970	3,228
Total assets	804,787	787,485
Deposits:
Noninterest bearing	72,833	58,145
Interest-bearing	529,395	513,801
Total deposits	602,228	571,946
Long-term borrowings	88,500	103,500
Subordinated debentures	20,619	20,619
Accrued expenses and other liabilities	2,340	3,490
Total liabilities	713,687	699,555
Stockholders' Equity:
Common stock, $0.01 par value, 20,000,000 shares authorized; 12,233,424 and 12,123,179 shares issued and outstanding at December 31, 2017 and 2016, respectively	122	121
Additional paid-in capital	65,137	64,471
Retained earnings	25,872	23,334
Accumulated other comprehensive loss	(35)	0
Total stockholders' equity	91,100	87,930
Total liabilities and stockholders' equity	804,787	787,485
Series A Preferred Stock [Member]
Stockholders' Equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized: Preferred stock series "A," 437,500 shares issued and outstanding and $3,500 liquidation preference at both September 30, 2017 and December 31, 2016	$ 4	$ 4

CONSOLIDATED STATEMENTS OF FIN3

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Securities held to maturity, fair value	$ 54,004	$ 62,827
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	12,233,424	12,123,179
Common stock, shares outstanding (in shares)	12,233,424	12,123,179
Series A Preferred Stock [Member]
Stockholders' Equity:
Preferred stock, shares issued (in shares)	437,500	437,500
Preferred stock, shares outstanding (in shares)	437,500	437,500
Preferred stock, liquidation preference	$ 3,500	$ 3,500

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Interest income:
Loans	$ 30,294	$ 29,262
Securities	1,233	1,149
Other earning assets	697	339
Total interest income	32,224	30,750
Interest expense:
Deposits	4,037	4,033
Long-term borrowings and subordinated debentures	3,593	4,528
Total interest expense	7,630	8,561
Net interest income	24,594	22,189
Reversal of provision for loan losses	(650)	(350)
Net interest income after reversal of provision for loan losses	25,244	22,539
Noninterest income:
Mortgage-banking revenue	1,507	3,654
Real estate commissions	1,358	1,529
Real estate management fees	675	738
Credit report and appraisal fees	464	380
Deposit service charges	538	227
Other noninterest income	696	543
Total noninterest income	5,238	7,071
Noninterest expense:
Compensation and related expenses	14,734	15,425
Occupancy	1,358	1,858
Legal fees	143	264
Write-downs, losses, and costs of real estate acquired through foreclosure, net	132	194
Federal Deposit Insurance Corporation insurance premiums	115	582
Professional fees	462	905
Advertising	788	703
Data processing	907	747
Credit reports and appraisal fees	594	651
Licensing and software	423	453
Mortgage leads purchased	235	710
Other noninterest expense	2,751	1,592
Total noninterest expense	22,642	24,084
Net income before income tax provision (benefit)	7,840	5,526
Income tax provision (benefit)	5,022	(10,014)
Net income	2,818	15,540
Amortization of discount on Series B preferred stock	0	(781)
Dividends on preferred stock	(280)	(1,441)
Net income available to common stockholders	$ 2,538	$ 13,318
Net income per common share - basic (in dollars per share)	$ 0.21	$ 1.16
Net income per common share - diluted (in dollars per share)	$ 0.21	$ 1.15

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 2,818	$ 15,540
Other comprehensive loss items:
Unrealized holding losses on available-for-sale securities arising during the period (net of tax benefit of $21 in 2017)	(34)	0
Realized gains, net of tax expense of $1 in 2017	(1)	0
Total other comprehensive loss	(35)	0
Total comprehensive income	$ 2,783	$ 15,540

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)
Other comprehensive loss items:
Unrealized holding losses on available-for-sale securities arising during the period, income tax (benefit)	$ (21)
Realized gains, income tax expense	$ 1

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Preferred Stock [Member]Series A Preferred Stock [Member]	Preferred Stock [Member]Series B Preferred Stock [Member]	Common Stock [Member]	Common Stock [Member]Series A Preferred Stock [Member]	Common Stock [Member]Series B Preferred Stock [Member]	Additional Paid-In Capital [Member]	Additional Paid-In Capital [Member]Series A Preferred Stock [Member]	Additional Paid-In Capital [Member]Series B Preferred Stock [Member]	Retained Earnings [Member]	Retained Earnings [Member]Series A Preferred Stock [Member]	Retained Earnings [Member]Series B Preferred Stock [Member]	Accumulated Comprehensive Income (Loss) [Member]	Accumulated Comprehensive Income (Loss) [Member]Series A Preferred Stock [Member]	Accumulated Comprehensive Income (Loss) [Member]Series B Preferred Stock [Member]	Total	Series A Preferred Stock [Member]	Series B Preferred Stock [Member]
Beginning balance at Dec. 31, 2015	$ 4			$ 101			$ 76,335			$ 10,016			$ 0			$ 86,456
Balance (in shares) at Dec. 31, 2015	460,893			10,088,879
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0			$ 0			0			15,540			0			15,540
Stock-based compensation	0			0			184			0			0			184
Stock issued, net of costs	$ 0			$ 20			10,564			0			0			10,584
Stock issued, net of costs (in shares)	0			2,034,300
Stock redemption on Series B preferred stock			$ 0			$ 0			$ (23,393)			$ 0			$ 0			$ (23,393)
Stock redemption on Series B preferred stock (in shares)			(23,393)			0
Dividend declared		$ 0	$ 0		$ 0	$ 0		$ 0	0		$ (210)	(1,231)		$ 0	0		$ (210)	(1,231)
Amortization of discount on Series B preferred stock			0			0			781			(781)			0			0
Ending balance at Dec. 31, 2016	$ 4			$ 121			64,471			23,334			0			87,930
Balance (in shares) at Dec. 31, 2016	437,500			12,123,179
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0			$ 0			0			2,818			0			2,818
Stock-based compensation	0			0			205			0			0			205
Stock issued in purchase transaction	$ 0			$ 1			774			0			0			775
Stock issued in purchase transaction (in shares)	0			108,084
Stock issued, net of costs	$ 0			$ 0			207			0			0			207
Stock issued, net of costs (in shares)	0			2,161
Dividend declared		$ 0			$ 0			$ 0			$ (280)			$ 0			$ (280)
Repurchase of warrant			$ 0			$ 0			$ (520)			$ 0			$ 0			$ (520)
Repurchase of warrant (in shares)			0			0
Other comprehensive loss	$ 0			$ 0			0			0			(35)			(35)
Ending balance at Dec. 31, 2017	$ 4			$ 122			$ 65,137			$ 25,872			$ (35)			$ 91,100
Balance (in shares) at Dec. 31, 2017	437,500			12,233,424

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 2,818	$ 15,540
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	1,234	1,164
Amortization of deferred loan fees	(1,215)	(1,330)
Net amortization of premiums and discounts	(189)	412
Reversal of provision for loan losses	(650)	(350)
Write-downs and losses on real estate acquired through foreclosure, net of gains	103	176
Gain on sale of mortgage loans	(1,507)	(3,654)
Proceeds from sale of mortgage loans held for sale	67,396	153,644
Originations of loans held for sale	(60,772)	(147,094)
Stock-based compensation	205	184
Increase in cash surrender value of bank-owned life insurance	(64)	0
Deferred income taxes	4,794	(10,081)
(Increase) decrease in accrued interest receivable	(391)	31
Decrease in other assets	244	1,823
Decrease in accrued expenses and other liabilities	(1,125)	(2,844)
Net cash provided by operating activities	10,881	7,621
Cash flows from investing activities:
Purchase of certificates of deposit held for investment	(8,680)	(100)
Loan principal (disbursements), net of repayments	(56,497)	(11,205)
Repurchases of loans previously sold	(469)	(343)
Redemption of restricted stock investments	614	693
Purchases of premises and equipment, net	(342)	(903)
Purchase of bank-owned life insurance	(5,000)	0
Activity in securities held to maturity:
Purchases	(6,464)	(3,562)
Maturities/calls/repayments	14,937	16,526
Activity in available-for-sale securities:
Purchases	(14,000)	0
Sales	4,000	0
Proceeds from sales of real estate acquired through foreclosure	1,170	2,170
Net cash (used in) provided by investing activities	(70,731)	3,276
Cash flows from financing activities:
Net increase in deposits	30,282	48,175
Additional borrowings	59,950	0
Repayment of borrowings	(74,950)	(15,000)
Repurchase of warrant	(520)	0
Preferred stock dividends	(280)	(7,840)
Stock redemption of Series B preferred stock	0	(23,393)
Proceeds from common stock issuance	207	10,584
Net cash provided by financing activities	14,689	12,526
(Decrease) increase in cash and cash equivalents	(45,161)	23,423
Cash and cash equivalents at beginning of period	67,014	43,591
Cash and cash equivalents at end of period	21,853	67,014
Supplemental Information:
Interest paid on deposits and borrowed funds	7,773	11,160
Income taxes paid (refunded)	92	(1,457)
Real estate acquired in satisfaction of loans	703	1,575
Transfers of loans held for sale to portfolio	$ 660	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 – Summary of Significant Accounting Policies Basis of Presentation The accounting and reporting policies of Severn Bancorp, Inc. and subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”). Events occurring after the date of the financial statements up to March 29, 2018, the date the financial statements were available to be issued, were considered in the preparation of the consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of Severn Bancorp, Inc., and its wholly-owned subsidiaries, Mid-Maryland Title Company, Inc., SBI Mortgage Company and SBI Mortgage Company’s subsidiary, Crownsville Development Corporation, and its subsidiary, Crownsville Holdings I, LLC, and Severn Savings Bank, FSB (the “Bank”), and the Bank’s subsidiaries, Louis Hyatt, Inc., Homeowners Title and Escrow Corporation, Severn Financial Services Corporation, SSB Realty Holdings, LLC, SSB Realty Holdings II, LLC, and HS West, LLC. All intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements. Business We provide financial services to customers primarily within the Anne Arundel County region of Maryland. A portion of activities related to mortgage lending are more dispersed and cover other parts of Maryland and the Mid-Atlantic region. We serve local consumers, small and medium size businesses, professionals, and other customers by offering a broad range of financial products and services, including Internet and mobile banking, commercial banking, cash management, mortgage lending, and retail banking. We fund a variety of loan types including commercial and residential real estate loans, commercial term loans and lines and letters of credit, and consumer loans. We do not have any concentrations to any one industry or customer. However, our customers’ ability to repay loan agreements is dependent on the real estate and general economic conditions of the market area. We have no reportable segments. Management does not separately allocate expenses, including the cost of funding loan demand, between the retail and real estate operations of the Company. As such, discrete financial information is not available and segment reporting would not be meaningful. Acquisition On September 1, 2017, we acquired by issuing common stock in a business combination. We issued 108,084 shares in the transaction valued at $775,000. We recorded $765,000 in goodwill in the transaction. The acquisition continues our growth strategy and focus on being a full-service provider and complements the mortgage services, commercial banking services, and commercial real estate services we provide. The acquisition of the Title Company has not had a material effect on the Company’s financial condition or results of operations. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for loan losses and the related allowance for loan losses (“Allowance”), determination of impaired loans and the related measurement of impairment, valuation of investment securities, valuation of real estate acquired through foreclosure, valuation of share-based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, and the calculation of current and deferred income taxes and the realizability of deferred tax assets. Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less to be cash equivalents. For reporting purposes, assets grouped in the Consolidated Statements of Financial Condition under the captions “Cash and due from banks” and “Federal funds sold and interest‑bearing deposits in other banks” are considered cash or cash equivalents. For financial statement purposes, these assets are carried at cost. Federal funds sold and interest-bearing deposits in other banks generally have overnight maturities and are in excess of amounts that would be recoverable under Federal Deposit Insurance Corporation (“FDIC”) insurance. Reclassifications Certain reclassifications have been made to amounts previously reported to conform to current period presentation. Such reclassifications had no impact on net income. Significant Accounting Policies Certificates of Deposit Held for Investment We periodically invest cash in certificates of deposit ("CDs") with other financial institutions. We limit the deposit in any one financial institution to $250,000, thereby allowing the CDs to be within the fully insured limits of the FDIC. Securities We designate securities into one of three categories at the time of purchase. Debt securities that we have the intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term. Trading securities are reported at estimated fair value, with unrealized gains and losses included in earnings. Debt securities not classified as HTM and debt and equity securities not classified as trading securities are considered available for sale (“AFS”) and are reported at estimated fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax effects, in accumulated other comprehensive loss. AFS and HTM securities are evaluated periodically to determine whether a decline in their value is other than temporary. The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near-term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. The initial indications of other-than-temporary impairment (“OTTI”) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline. In determining whether an impairment is other than temporary, we consider the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, our intent to sell the security, and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. We also consider the cause of the price decline (general level of interest rates and industry- and issuer-specific factors), the issuer’s financial condition, near-term prospects and current ability to make future payments in a timely manner, the issuer’s ability to service debt, and any change in agencies’ ratings at evaluation date from acquisition date and any likely imminent action. Once a decline in value is determined to be other than temporary, the security is segmented into credit- and noncredit-related components. Any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings, while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss. In situations where we intend to sell or it is more likely than not that we will be required to sell the security, the entire OTTI loss is recognized in earnings. Loans Held for Sale (“LHFS”) Mortgage loans originated for sale are carried at fair value. Fair value is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third party pricing models. Gains and losses on loan sales are determined using the specific-identification method and are recognized through mortgage-banking revenue in the Consolidated Statement of Operations. Loans Receivable Our loans receivable are stated at their principal balance outstanding, net of related deferred fees and costs. Income Recognition Interest income on loans is accrued at the contractual rate based on the principal outstanding. Loan origination fees and certain direct loan origination costs are deferred and amortized as a yield adjustment over the contractual loan term or until the date of sale or disposition. Accrual of interest is discontinued when its receipt is in doubt, which typically occurs when a loan becomes impaired. Any interest accrued to income in the year when interest accruals are discontinued is generally reversed. Management may elect to continue the accrual of interest when a loan is in the process of collection and the estimated fair value of the collateral is sufficient to satisfy the principal balance and accrued interest. See additional information on nonaccrual interest and loan impairment later in this section. Fees and costs Origination and commitment fees and direct origination costs on loans held for investment generally are deferred and amortized to income over the contractual lives of the related loans using the interest method. Under certain circumstances, commitment fees are recognized over the commitment period or upon expiration of the commitment. Fees to extend loans three months or less are recognized in income upon receipt. Unamortized loan fees are recognized in income when the related loans are sold or prepaid. Transfers of LHFS In accordance with guidance on mortgage-banking activities, any loans which are originally originated for sale into the secondary market and which we subsequently elect to transfer into the Company’s loan portfolio are valued at lower of cost or market value ( LCM ) at the time of the transfer with any decline in value recorded as a charge against mortgage-banking revenue. Troubled Debt Restructured Loans (“TDR” or “TDRs”) We strive to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, we may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related now-modified loan is classified as a TDR. These modified terms may include rate reductions, principal forgiveness, payment extensions, payment forbearance, and/or other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. At the time that a loan is modified, we evaluate any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In these cases, we use the current fair value of the collateral, less selling costs, instead of discounted cash flows. Any impairment amount is then set up as an allocated portion of the Allowance. Loan Impairment A loan is considered impaired if it meets any of the following three criteria: ● Loans that are 90 days or more in arrears (nonaccrual loans); ● Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement; or ● Loans that are modified and qualify as TDRs. If a loan is considered to be impaired, it is then determined to be either cash flow or collateral dependent for purposes of Allowance determination (see Allowance discussion below). Nonaccrual Interest The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed in nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed in nonaccrual status or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, generally after six months of consecutive current payments and an updated analysis of the borrower’s ability to service the loan. Our policy for recording payments received on nonaccrual loans is to record the payment towards principal and interest on a cash basis until such time as the loan is returned to accrual status. Loans that experience insignificant payment delays and payment shortfalls generally are not placed in nonaccrual status or classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Allowance for Loan Losses The Allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible, based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Determining the amount of the Allowance requires the use of estimates and assumptions. Actual results could differ significantly from those estimates. Future additions or reductions in the Allowance may be necessary based on changes in economic conditions, particularly in Anne Arundel County and the State of Maryland. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s Allowance. Such agencies may require the Bank to recognize additions to the Allowance based on their judgment about information available to them at the time of their examination. The Allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. When a real estate secured loan becomes impaired, a decision is made as to whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the LTV ratio based on the original appraisal, and the condition of the property. Appraised values are discounted, if appropriate, to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For loans secured by collateral other than real estate, such as accounts receivable, inventory, and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging, or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an Allowance is established when the current fair value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge off is taken for the difference between the net collateral value and the carrying value of the loan. For loans that are not solely collateral dependent, an Allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of the loan. The general component relates to loans that are classified as doubtful, substandard, or special mention that are not considered impaired, as well as nonclassified loans. The general reserve is based on historical loss experience adjusted for qualitative factors. These qualitative factors include, but are not limited to: ● Levels and trends in delinquencies and nonaccruals; ● Inherent risk in the loan portfolio; ● Trends in volume and terms of the loan; ● Effects of any change in lending policies and procedures; ● Experience, ability, and depth of management; ● National and local economic trends and conditions; ● Effect of any changes in concentration of credit; and ● Industry conditions. We assign risk ratings to the loans in our portfolio. These credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the Allowance. Loans not classified are rated pass. With respect to all loan segments, we do not charge off a loan, or a portion of a loan, until one of the following conditions have been met: ● The property collateralizing the loan has been foreclosed upon. At the time of foreclosure, a charge-off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral; ● An agreement to accept less than the recorded balance of the loan has been made with the borrower. Once an agreement has been finalized and any proceeds from the borrower are received, a charge-off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral; or ● The collateral valuation on a collateral dependent impaired loan is less than the recorded balance. The loan is charged off for accounting purposes by the amount of the difference between the recorded balance and collateral value. Real Estate Acquired Through Foreclosure Real estate acquired through or in the process of foreclosure is recorded at fair value less estimated disposal costs. Management periodically evaluates the recoverability of the carrying value of the real estate acquired through foreclosure using estimates as described under Allowance for Loan Losses above. In the event of a subsequent change in fair value, the carrying amount is adjusted to the lesser of the new fair value, less disposal costs, or the carrying value recorded at acquisition. The amount of the change is charged or credited to noninterest expense. Expenses on real estate acquired through foreclosure incurred prior to the disposition of the property, such as maintenance, insurance and taxes, and physical security, are charged to expense. Material expenses that improve the property to its best use are capitalized to the property. If a foreclosed property is sold for more or less than the carrying value, a gain or loss is recognized upon the sale of the property. Restricted Stock Investments Our restricted stock investments include stock of the Federal Home Loan Bank of Atlanta (the “FHLB”) and capital stock of several bankers’ banks no readily available market exists for these stocks and they have no quoted market values. We evaluated the FHLB stock for impairment in accordance with GAAP. The Bank’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB, and (4) the liquidity position of the FHLB. Management has evaluated the FHLB stock for impairment and believes that no impairment charge is necessary as of December 31, 2017. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation and amortization of premises and equipment is accumulated by the use of the straight-line method over the estimated useful lives of the assets. Additions and improvements are capitalized, and charges for repairs and maintenance are expensed when incurred. The related cost and accumulated depreciation are eliminated from the accounts when an asset is sold or retired and the resultant gain or loss is credited or charged to income. Bank Owned Life Insurance (“BOLI”) BOLI is carried at the aggregate cash surrender value of life insurance policies owned where the Company or its subsidiary is named beneficiary. Increases in cash surrender value derived from crediting rates for underlying insurance policies is credited to noninterest income. Goodwill and Other Intangible Assets Goodwill represents the excess purchase price paid over the fair value of the net assets acquired in a business combination and is allocated to the Bank’s reporting units. Based upon an in-depth analysis performed in accordance with FASB guidance, we have determined that we have one reporting unit – commercial and consumer banking. Goodwill is not amortized but is tested for impairment periodically. We assess goodwill for potential impairment annually as of December 31, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. As of the testing date, we determine the fair value of the reporting unit. If the fair value of the reporting unit exceeds its book value, no write-down of the recorded goodwill is required. As of December 31, 2017, we performed a fair value analysis for the reporting period and determined that the fair value of the reporting unit was greater than its carrying amount and that there was no evidence of impairment of goodwill. Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities. Deferred income taxes are provided on income and expense items when they are reported for financial statement purposes in periods different from the periods in which these items are recognized in the income tax returns. Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based upon consideration of available evidence, including tax planning strategies and other factors. The calculation of tax assets and liabilities is complex and requires the use of estimates and judgment since it involves the application of complex tax laws that are subject to different interpretations by us and the various tax authorities. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. Periodically and in the ordinary course of business, we are involved in inquiries and reviews by tax authorities that normally require management to provide supplemental information to support certain tax positions we take in our tax returns. Uncertain tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit or liability that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. For tax positions not meeting the “more likely than not” test, no tax benefit or liability is recorded. Management believes it has taken appropriate positions on its tax returns, although the ultimate outcome of any tax review cannot be predicted with certainty. No assurance can be given that the final outcome of these matters will not be different than what is reflected in the financial statements. We recognize interest and penalties related to income tax matters in income tax expense. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on AFS securities, are reported as a separate component of the equity section of the consolidated statements of financial condition, and, along with net income, are components of comprehensive income. The Company’s sole component of accumulated other comprehensive income/loss is unrealized gains/losses on AFS securities. Derivative Financial Instruments and Hedging We account for derivatives in accordance with FASB literature on accounting for derivative instruments and hedging activities. When we enter into a derivative contract, we designate the derivative as held for trading, an economic hedge, or a qualifying hedge as detailed in the literature. The designation may change based upon management’s reassessment or changing circumstances. Derivatives utilized by the Company include interest rate lock commitments (“IRLC” or “IRLCs”) and forward settlement contracts. IRLCs occur when we originate mortgage loans with interest rates determined prior to funding. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency, or commodity at a predetermined future date, and rate or price. We designate at inception whether a derivative contract is considered hedging or nonhedging. All of our derivatives are nonexchange traded contracts, and as such, their fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation. For qualifying hedges, we formally document at inception all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various accounting hedges. We utilize derivatives to manage interest rate sensitivity in certain cases. At December 31, 2017 and 2016, we did not have any designated hedges as we do not designate IRLCs or forward sales commitments on residential mortgage originations as hedges. We recognize any gains and losses on IRLCs and forward sales commitments on residential mortgage originations through mortgage-banking revenue in the Consolidated Statements of Operations. Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate that our carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through a requirement to repurchase them before their maturity. Advertising Costs We expense our advertising costs as incurred, except payments for major sponsorships which are amortized over an estimated life not to exceed one year. Advertising expenses were $788,000 and $703,000 for the years ended December 31, 2017 and 2016, respectively. Recent Accounting Pronouncements Pronouncements Adopted In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting Pronouncements Issued In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers: Deferral of the Effective Date, , Revenue from Contracts with Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, , Technical Corrections and Improvements to Topic 606, Revenue form Contracts with Customers, The Company adopted the pronouncement on January 1, 2018 and has substantially completed an assessment of the revenue contracts for the revenue streams identified to be in scope. The Company’s accounting policies and revenue recognition principles will not change materially as the principles of ASC 606 are largely consistent with the current revenue recognition practices. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other costs, In February 2018, FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income

Correction of an Immaterial Pri

Correction of an Immaterial Prior Year Error	12 Months Ended
	Dec. 31, 2017
Correction of an Immaterial Prior Year Error [Abstract]
Correction of an Immaterial Prior Year Error	Note 2 - Correction of an Immaterial Prior Year Error In 2016, we redeemed the Series B preferred stock sold in 2008 to the U.S. Department of the Treasury (the “TARP Shares”). At the time of the redemption, the remaining unamortized discount of $511,000 should have been fully amortized into additional paid-in capital and retained earnings and reflected as a reduction to net income available to common stockholders. This treatment was not reflected in the consolidated financial statements included in the 2016 Form 10-K. We determined that this amount was not material to the 2016 consolidated financial statements. Our 2016 consolidated financial statements within these consolidated financial statements have been adjusted to reflect the proper recognition of the remaining discount at the time of the redemption as a $511,000 adjustment to net income available to common stockholders, revising the originally reported amount from $13.8 million to $13.3 million. The adjustment had no impact on total assets at December 31, 2016 and no impact on net income for the year ended December 31, 2016.

Securities

Securities	12 Months Ended
	Dec. 31, 2017
Securities [Abstract]
Securities	Note 3 - Securities The amortized cost and estimated fair values of our AFS securities portfolio was as follows as of December 31, 2017: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. government agency notes $ 10,169 $ - $ 50 $ 10,119 We did not hold any AFS securities as of December 31, 2016. The amortized cost and estimated fair values of our HTM securities portfolio were as follows as of December 31: 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 4,994 $ 68 $ 6 $ 5,056 U.S. government agency notes 19,004 81 99 18,986 Mortgage-backed securities 30,305 27 370 29,962 $ 54,303 $ 176 $ 475 $ 54,004 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 12,998 $ 167 $ - $ 13,165 U.S. government agency notes 20,027 133 54 20,106 Mortgage-backed securities 29,732 52 228 29,556 $ 62,757 $ 352 $ 282 $ 62,827 Gross unrealized losses and fair value by length of time that the individual HTM securities have been in an unrealized loss position at the dates indicated are presented in the following tables as of December 31: 2017 Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) U.S. Treasury securities $ 1,993 $ 6 $ - $ - $ 1,993 $ 6 U.S. government agency notes 6,977 23 6,964 76 13,941 99 Mortgage-backed securities 20,993 217 7,046 153 28,039 370 $ 29,963 $ 246 $ 14,010 $ 229 $ 43,973 $ 475 2016 Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) U.S. government agency notes $ 5,002 $ 54 $ - $ - $ 5,002 $ 54 Mortgage-backed securities 23,457 228 - - 23,457 228 $ 28,459 $ 282 $ - $ - $ 28,459 $ 282 The gross unrealized loss in the AFS securities portfolio is on $10.0 million fair value of securities and has existed for less than twelve months. All of the securities that are currently in a gross unrealized loss position are so due to declines in fair values resulting from changes in interest rates or increased liquidity spreads since the time they were purchased. We have the intent and ability to hold these debt securities to maturity (including the AFS securities) will be repaid in full, with no losses realized. As such, management considers any impairment to be temporary. Contractual maturities of debt securities at December 31, 2017 are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. AFS Securities HTM Securities Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (dollars in thousands) Due in one year or less $ - $ - $ 10,011 $ 10,008 Due after one through five years 10,169 10,119 12,020 11,990 Due after five years through ten years - - 1,967 2,044 Mortgage-backed securities - - 30,305 29,962 $ 10,169 $ 10,119 $ 54,303 $ 54,004 There were no securities pledged as collateral as of December 31, 2017 or December 31, 2016.

Loans Receivable and Allowance

Loans Receivable and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2017
Loans Receivable and Allowance for Loan Losses [Abstract]
Loans Receivable and Allowance for Loan Losses	Note 4 - Loans Receivable and Allowance for Loan Losses Loans receivable are summarized as follows at December 31: 2017 2016 (dollars in thousands) Residential mortgage $ 287,656 $ 260,603 Commercial 37,356 46,468 Commercial real estate 236,302 195,710 Construction, land acquisition, and development 93,060 90,102 Home equity/2nds 15,703 19,129 Consumer 1,084 1,210 Total loans receivable 671,161 613,222 Unearned loan fees (3,010 ) (2,944 ) Net loans receivable $ 668,151 $ 610,278 Certain loans in the amount of $196.9 million have been pledged under a blanket floating lien to the FHLB as collateral against advances. At December 31, 2017, the Bank was servicing $33.5 million in loans for the Federal National Mortgage Association and $16.0 million in loans for the Federal Home Loan Mortgage Corporation. Credit Quality An Allowance is provided through charges to income in an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible, based on evaluations of the collectability of loans and prior loan loss experience. Management has an established methodology to determine the adequacy of the Allowance that assesses the risks and losses inherent in the loan portfolio. The methodology takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Determining the amount of the Allowance requires the use of estimates and assumptions. Actual results could differ significantly from those estimates. While management uses available information to estimate losses on loans, future additions to the Allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies periodically review the Allowance as an integral part of their examination process. Such agencies may require us to recognize additions to the Allowance based on their judgments about information available to them at the time of their examination. Management believes the Allowance is adequate as of December 31, 2017 and December 31, 2016. For purposes of determining the Allowance, we have segmented our loan portfolio by product type. Our portfolio loan segments are residential mortgage, commercial, commercial real estate, construction, land acquisition, and development (“ADC”), home equity/2nds, and consumer. We have looked at all segments and have determined that no additional subcategorization is warranted based upon our credit review methodology and our portfolio classes are the same as our portfolio segments. Inherent Credit Risks The inherent credit risks within the loan portfolio vary depending upon the loan class as follows: Residential mortgage Commercial underwritten in accordance with our policies and include evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay the obligation as agreed. Commercial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan. Accordingly, the repayment of a commercial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Additionally, lines of credit are subject to the underwriting standards and processes similar to commercial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and, secondarily, as loans secured by real-estate and/or other assets. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Line of credit loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates line of credit loans based on collateral and risk-rating criteria. Commercial real estate subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate loans based on collateral and risk-rating criteria. The Bank also utilizes third-party experts to provide environmental and market valuations. The nature of commercial real estate loans makes them more difficult to monitor and evaluate. ADC underwritten in accordance with our underwriting policies which include a financial analysis of the developers, property owners, construction cost estimates, and independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation estimates may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project rather than the ability of the borrower or guarantor to repay principal and interest. Additionally, land is underwritten according to our policies which include independent appraisal valuations as well as the estimated value associated with the land upon completion of development. These cost and valuation estimates may be inaccurate. Sources of repayment of these loans typically are permanent financing expected to be obtained upon completion or sales of developed property. These loans are closely monitored by onsite inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest rate sensitivity, and governmental regulation of real property. If the Bank is forced to foreclose on a project prior to or at completion due to a default, there can be no assurance that the Bank will be able to recover all of the unpaid balance of the loan as well as related foreclosure and holding costs. In addition, the Bank may be required to fund additional amounts to complete the project and may have to hold the property for an unspecified period of time. Home equity/2nds subject to the underwriting standards and processes similar to residential mortgages and are secured by one to four family dwelling units. Home equity/2nds loans have greater risk than residential mortgages as a result of the Bank generally being in a second lien position. Consumer consist of loans to individuals through the Bank’s retail network and are typically unsecured or secured by personal property. Consumer loans have a greater credit risk than residential loans because of the lower value of the underlying collateral, if any. The following tables present, by portfolio segment, the changes in the Allowance and the recorded investment in loans as of and for the years ended December 31: 2017 Residental Mortgage Commercial Commercial Real Estate ADC Home Equity/ 2nds Consumer Total (dollars in thousands) Beginning Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Charge-offs (726 ) - - - (98 ) (2 ) (826 ) Recoveries 375 - 157 - 30 - 562 Net (charge-offs) recoveries (351 ) - 157 - (68 ) (2 ) (264 ) (Reversal of) provision for loan losses (383 ) 49 113 (154 ) (274 ) (1 ) (650 ) Ending Balance $ 3,099 $ 527 $ 2,805 $ 1,236 $ 386 $ 2 $ 8,055 Ending balance - individually evaluated for impairment $ 1,181 $ - $ 182 $ 48 $ - $ 2 $ 1,413 Ending balance - collectively evaluated for impairment 1,918 527 2,623 1,188 386 - 6,642 $ 3,099 $ 527 $ 2,805 $ 1,236 $ 386 $ 2 $ 8,055 Ending loan balance - individually evaluated for impairment $ 18,219 $ - $ 2,917 $ 991 $ - $ 84 $ 22,211 Ending loan balance - collectively evaluated for impairment 266,427 37,356 233,385 92,069 15,703 1,000 645,940 $ 284,646 $ 37,356 $ 236,302 $ 93,060 $ 15,703 $ 1,084 $ 668,151 2016 Residental Mortgage Commercial Commercial Real Estate ADC Home Equity/ 2nds Consumer Total (dollars in thousands) Beginning Balance $ 4,188 $ 291 $ 2,792 $ 956 $ 528 $ 3 $ 8,758 Charge-offs (151 ) (17 ) (178 ) (72 ) (50 ) - (468 ) Recoveries 324 54 23 157 421 50 1,029 Net recoveries (charge-offs) 173 37 (155 ) 85 371 50 561 (Reversal of) provision for loan losses (528 ) 150 (102 ) 349 (171 ) (48 ) (350 ) Ending Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending balance - individually evaluated for impairment $ 1,703 $ 15 $ 196 $ 53 $ 402 $ 4 $ 2,373 Ending balance - collectively evaluated for impairment 2,130 463 2,339 1,337 326 1 6,596 $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending loan balance - individually evaluated for impairment $ 20,403 $ 148 $ 5,656 $ 858 $ 3,137 $ 96 $ 30,298 Ending loan balance - collectively evaluated for impairment 237,256 46,320 190,054 89,244 15,992 1,114 579,980 $ 257,659 $ 46,468 $ 195,710 $ 90,102 $ 19,129 $ 1,210 $ 610,278 The following tables present the credit quality breakdown of our loan portfolio by class as of December 31: 2017 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 277,867 $ 1,563 $ 5,216 $ 284,646 Commercial 37,312 44 - 37,356 Commercial real estate 228,746 4,615 2,941 236,302 ADC 91,868 - 1,192 93,060 Home equity/2nds 14,384 465 854 15,703 Consumer 1,084 - - 1,084 $ 651,261 $ 6,687 $ 10,203 $ 668,151 2016 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 248,819 $ 4,316 $ 4,524 $ 257,659 Commercial 46,011 204 253 46,468 Commercial real estate 184,820 7,420 3,470 195,710 ADC 89,324 - 778 90,102 Home equity/2nds 16,056 472 2,601 19,129 Consumer 1,210 - - 1,210 $ 586,240 $ 12,412 $ 11,626 $ 610,278 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31: 2017 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,006 $ - $ - $ 1,006 $ 283,640 $ 284,646 $ 3,891 Commercial - - - - 37,356 37,356 78 Commercial real estate 948 - - 948 235,354 236,302 159 ADC - - - - 93,060 93,060 314 Home equity/2nds - - - - 15,703 15,703 1,268 Consumer - - - - 1,084 1,084 - $ 1,954 $ - $ - $ 1,954 $ 666,197 $ 668,151 $ 5,710 2016 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,472 $ 2,074 $ 964 $ 4,510 $ 253,149 $ 257,659 $ 3,580 Commercial - - - - 46,468 46,468 151 Commercial real estate - 171 515 686 195,024 195,710 2,938 ADC 106 - 6 112 89,990 90,102 269 Home equity/2nds 34 - 2,174 2,208 16,921 19,129 2,914 Consumer 4 - - 4 1,206 1,210 - $ 1,616 $ 2,245 $ 3,659 $ 7,520 $ 602,758 $ 610,278 $ 9,852 We do not have any loans greater than 90 days past due and still accruing as of December 31, 2017 or 2016. The interest which would have been recorded on the above nonaccrual loans if those loans had been performing in accordance with their contractual terms was approximately $688,000 and $933,000 for the years ended December 31, 2017 and 2016, respectively. The actual interest income recorded on those loans was approximately $282,000 and $427,000 for the years ended December 31, 2017 and 2016, respectively. The following tables summarize impaired loans as of and for the years ended December 31: 2017 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related Allowance: (dollars in thousands) Residential mortgage $ 12,929 $ 11,572 $ - $ 9,854 $ 9,338 $ - Commercial - - - - - - Commercial real estate 1,562 1,507 - 3,900 3,698 - ADC 636 636 - 441 441 - Home equity/2nds - - - 2,139 1,529 - Consumer - - - - - - With a related Allowance: Residential mortgage 6,761 6,647 1,181 11,176 11,065 1,703 Commercial - - - 148 148 15 Commercial real estate 1,410 1,410 182 1,958 1,958 196 ADC 392 355 48 417 417 53 Home equity/2nds - - - 1,608 1,608 402 Consumer 84 84 2 96 96 4 Totals: Residential mortgage 19,690 18,219 1,181 21,030 20,403 1,703 Commercial - - - 148 148 15 Commercial real estate 2,972 2,917 182 5,858 5,656 196 ADC 1,028 991 48 858 858 53 Home equity/2nds - - - 3,747 3,137 402 Consumer 84 84 2 96 96 4 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related Allowance: (dollars in thousands) Residential mortgage $ 10,072 $ 504 $ 12,747 $ 521 Commercial - 44 145 2 Commercial real estate 2,423 70 4,021 187 ADC 516 29 1,234 36 Home equity/2nds 543 46 1,889 75 Consumer - - 17 - With a related Allowance: Residential mortgage 8,714 294 10,785 463 Commercial 30 - 174 8 Commercial real estate 1,817 73 2,020 100 ADC 379 22 489 26 Home equity/2nds 572 1 679 7 Consumer 90 2 79 2 Totals: Residential mortgage 18,786 798 23,532 984 Commercial 30 44 319 10 Commercial real estate 4,240 143 6,041 287 ADC 895 51 1,723 62 Home equity/2nds 1,115 47 2,568 82 Consumer 90 2 96 2 Consumer mortgage loans included in real estate acquired through foreclosure amounted to $206,000 at December 31, 2016. There were no such loans included in real estate acquired through foreclosure at December 31, 2017. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction totaled $3.1 million as of December 31, 2017. TDRs The following table presents loans that were modified during the years ended December 31: 2017 2016 Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification (dollars in thousands) Residential Mortgage $ - $ - $ - 3 $ 624 $ 624 $ - $ - $ - 3 $ 624 $ 624 Interest on our portfolio of TDRs was accounted for under the following methods as of December 31: 2017 Number of Modifications Accrual Status Number of Modifications Nonaccrual Status Total Number of Modifications Total Balance of Modifications (dollars in thousands) Residential mortgage 41 $ 11,404 2 $ 736 43 $ 12,140 Commercial real estate 3 1,862 1 78 4 1,940 ADC 1 137 1 6 2 143 Home equity/2nds 1 227 - - 1 227 Consumer 4 84 - - 4 84 50 $ 13,714 4 $ 820 54 $ 14,534 2016 Number of Modifications Accrual Status Number of Modifications Nonaccrual Status Total Number of Modifications Total Balance of Modifications (dollars in thousands) Residential mortgage 47 $ 15,648 4 $ 2,137 51 $ 17,785 Commercial real estate 3 1,914 2 249 5 2,163 ADC 2 170 1 6 3 176 Home equity/2nds 1 238 - - 1 238 Consumer 5 96 - - 5 96 58 $ 18,066 7 $ 2,392 65 $ 20,458 During 2017 and 2016, there were no TDRs that subsequently defaulted during the 12 month period ended December 31, 2017 and 2016.

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2017
Premises and Equipment [Abstract]
Premises and Equipment	Note 5 - Premises and Equipment Premises and equipment are summarized by major classification as follows: 2017 2016 (dollars in thousands) Land $ 1,537 $ 1,537 Building 29,500 29,545 Leasehold improvements 2,485 2,202 Furniture, fixtures, and equipment 2,868 2,718 Total, at cost 36,390 36,002 Less: Accumulated depreciation and amortization (13,251 ) (11,972 ) Net premises and equipment $ 23,139 $ 24,030 Depreciation expense was $1.2 million for both years ended December 31, 2017 and 2016. The Company has five retail branch locations in Anne Arundel County, Maryland, of which it owns three and leases two from third parties. The current terms of the leases expire in July 2020 and February 2026. There is no option to renew the lease for any additional terms on the first lease and an option to renew every three to five years on the second lease for twenty-five years. In addition, the Bank leases office space in Annapolis, Maryland from a third party. The lease expired January 2017 and was renewed for an additional five year term. The leases generally provide for payment of property taxes, insurance, and maintenance costs by the Company. The total rental expense for all real property leases amounted to approximately $246,000 and $175,000 in 2017 and 2016, respectively. Our minimum lease payments due for each of the next five years are as follows Years Ended December 31, (in thousands) 2018 $ 225 2019 225 2020 185 2021 135 2022 115 Thereafter 417 $ 1,302 Our minimum future annual rental income on leases is as follows: Years Ended December 31, (in thousands) 2018 $ 1,006 2019 1,006 2020 767 2021 515 2022 244 Thereafter 244 $ 3,782 H.S. West, LLC, a subsidiary of the Bank, leases space to three unrelated companies and to a law firm of which the President of the Company and the Bank is a partner. Total gross rental income included in occupancy expense on the Consolidated Statements of Operations was approximately $994,000 and $1.0 million for the years ended December 31, 2017 and 2016, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2017
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	Note 6 - Goodwill and Other Intangible Assets Our goodwill relates to the acquisition of Louis Hyatt, Inc. and Mid-Maryland Title Company, Inc. (acquired in 2017) as follows as of and for the years ended December 31, (dollars in thousands) 2017 2016 Louis Hyatt Mid-Md. Total Louis Hyatt Beginning balance $ 334 $ - $ 334 $ 334 Goodwill acquired - 765 765 - Ending balance $ 334 $ 765 $ 1,099 $ 334

Deposits

Deposits	12 Months Ended
	Dec. 31, 2017
Deposits [Abstract]
Deposits	Note 7 - Deposits Deposits are summarized as follows as of December 31: 2017 2016 (dollars in thousands) NOW $ 63,616 10.6 % $ 63,137 11.0 % Money market 103,649 17.2 % 66,356 11.6 % Savings 98,717 16.4 % 110,492 19.3 % Certificates of deposit 263,413 43.7 % 273,816 47.9 % Total interest-bearing deposits 529,395 87.9 % 513,801 89.8 % Noninterest-bearing deposits 72,833 12.1 % 58,145 10.2 % Total deposits $ 602,228 100.0 % $ 571,946 100.0 % Scheduled maturities of certificates of deposit were as follows as of December 31: 2017 2016 One year or less 137,357 169,331 Greater than one year to two years 43,020 40,388 Greater than two years to three years 33,791 16,120 Greater than three years to four years 34,680 25,861 Greater than four years to five years 14,565 21,121 Greater than five years - 995 263,413 273,816 Certificates of deposit of $250,000 or more totaled $51.4 million and $39.1 million as of December 31, 2017 and 2016, respectively.

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2017
Borrowings [Abstract]
Borrowings	Note 8 – Borrowings Our borrowings consist of advances from the FHLB and a term loan from a commercial bank. The FHLB advances are available under a specific collateral pledge and security agreement, which requires that we maintain collateral for all of our borrowings equal to 30% of total assets. Our advances from the FHLB may be in the form of short-term or long-term obligations. Short-term advances have maturities of one year or less and may contain prepayment penalties. Long-term borrowings through the FHLB have original maturities up to 15 years and generally contain prepayment penalties. As of December 31, 2017, our total credit line with the FHLB was $239.3 million, with outstanding balances of $85.0 million and $100.0 million at December 31, 2017 and 2016, respectively. On September 30, 2016, we entered into a loan agreement with a commercial bank whereby we borrowed $3.5 million for a term of eight years. The unsecured note bears interest at a fixed rate of 4.25% for the first 36 months then, at the option of the Company, converts to either (1) floating rate of the Wall Street Journal Prime plus 50 basis points or (2) fixed rate at 275 basis points over the five year amortizing FHLB rate for the remaining five years. Repayment terms are monthly interest only payments for the first 36 months, then quarterly principal payments of $175,000 plus interest. The loan is subject to a prepayment penalty of 1% of the principal amount prepaid during the first 36 months. If we elect the five year fixed rate of 275 basis points over the FHLB rate (“FHLB Rate Period”), the loan will be subject to a prepayment penalty of 2% during the first and second years of the FHLB Rate Period and 1% of the principal repaid during the third, fourth, and fifth years of the FHLB Rate Period. We may make additional principal payments from internally generated funds of up to $875,000 per year during any fixed rate period without penalty. There is no prepayment penalty during any floating rate period. Certain information regarding our borrowings is as follows as of December 31: 2017 2016 Amount outstanding at year-end: (dollars in thousands) FHLB advances $ 85,000 $ 100,000 Commercial note payable 3,500 3,500 Weighted-average interest rate at year-end: FHLB advances 2.40 % 3.30 % Commercial note payable 4.25 % 4.25 % Maximum outstanding at any month-end: FHLB advances $ 169,950 $ 125,000 Commercial note payable 3,500 3,500 Average outstanding: FHLB advances $ 91,456 $ 117,418 Commercial note payable 3,500 3,500 Weighted-average interest rate during the year: FHLB advances 3.03 % 3.10 % Commercial note payable 5.04 % 4.37 % The following table sets forth information concerning the interest rates and maturity dates of the advances from the FHLB as of December 31, 2017: Principal Amount (in thousands) Rate Maturity $ 15,000 2.58% to 3.43% 2018 35,000 1.55% to 4.00% 2019 25,000 1.75% to 1.92% 2020 10,000 2.19% 2022 $ 85,000 Certain loans in the amount of $196.9 million have been pledged under a blanket floating lien to the FHLB as collateral against advances.

Subordinated Debentures

Subordinated Debentures	12 Months Ended
	Dec. 31, 2017
Subordinated Debentures [Abstract]
Subordinated Debentures	Note 9 – Subordinated Debentures As of December 31, 2017, the Company had outstanding $20.6 million in principal amount of Junior Subordinated Debt Securities, due in 2035 (the “2035 Debentures”). The 2035 Debentures were issued pursuant to an Indenture dated as of December 17, 2004 (the “2035 Indenture”) between the Company and Wells Fargo Bank, National Association as Trustee. The 2035 Debentures pay interest quarterly at a floating rate of interest of 3-month LIBOR plus 200 basis points and mature on January 7, 2035. Payments of principal, interest, premium, and other amounts under the 2035 Debentures are subordinated and junior in right of payment to the prior payment in full of all senior indebtedness of the Company, as defined in the 2035 Indenture. The 2035 Debentures became redeemable, in whole or in part, by the Company on January 7, 2010. The 2035 Debentures were issued and sold to Severn Capital Trust I (the “Trust”), of which 100% of the common equity is owned by the Company. The Trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable Capital Securities (“Capital Securities”) to third-party investors and using the proceeds from the sale of such Capital Securities to purchase the 2035 Debentures. The 2035 Debentures held by the Trust are the sole assets of the Trust. Distributions on the Capital Securities issued by the Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Trust on the 2035 Debentures. The Capital Securities are subject to mandatory redemption, in whole or in part, upon repayment of the 2035 Debentures. We have entered into an agreement which, taken collectively, fully and unconditionally guarantees the Capital Securities subject to the terms of the guarantee. Under the terms of the 2035 Debenture, we are permitted to defer the payment of interest on the 2035 Debentures for up to 20 consecutive quarterly periods, provided that no event of default has occurred and is continuing. As of December 31, 2015, we had deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid, including interest on unpaid interest, was $1.9 million. During the second quarter of 2016, we paid all of the deferred interest and as of December 31, 2017, we were current on all interest due on the 2035 Debenture. The Series A Subordinated Notes On November 15, 2008, the Company completed a private placement offering consisting of a total of 70 units, at an offering price of $100,000 per unit, for gross proceeds of $7.0 million. Each unit consisted of 6,250 shares of the Company’s Series A preferred stock and the Company’s Subordinated Note in the original principal amount of $50,000. In the aggregate, the Series A Preferred Stock totaled $3.5 million and the Subordinated Note totaled $3.5 million. On September 30, 2016 the $3.5 million aggregate principal amount of Subordinated Notes outstanding was paid in full. Previously, the Subordinated Notes earned interest at an annual rate of 8.0%, payable quarterly in arrears on the last day of March, June, September, and December which commenced December 31, 2008. The Subordinated Notes were redeemable in whole or in part at the option of the Company at any time beginning on December 31, 2009 until maturity.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2017
Employee Benefit Plans [Abstract]
Employee Benefit Plans	Note 10 – Employee Benefit Plans The Bank has a 401(k) Retirement Savings Plan. Employees may contribute a percentage of their salary up to the maximum amount allowed by law. The Bank matches 50% of the first 6% of an employee’s contribution. All employees who have completed one year of service with the Bank are eligible to participate in the company match. The Bank’s contributions to this plan were $139,000, and $142,000 for the years ended December 31, 2017 and 2016, respectively. The Bank has an Employee Stock Ownership Plan (“ESOP”) for the exclusive benefit of participating employees. The Bank recognized ESOP expense of $140,000 for each of the years ended December 31, 2017 and 2016. The plan and had allocated shares totaling 530,138 and 522,139, respectively, and had unallocated shares to participants in the plan totaling 10,000 shares and 20,000 shares, respectively, as of December 31, 2017 and 2016. The fair value of the unallocated shares at December 31, 2017 was approximately $73,000.

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2017
Regulatory Matters [Abstract]
Regulatory Matters	Note 11 - Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on our financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In July 2013, federal bank regulatory agencies issued final results to revise their risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (“Basel III”). On January 1, 2015, the Basel III rules became effective and include transition provisions which implement certain portions of the rules through January 1, 2019. Under the final rules, the effects of certain accumulated other comprehensive items are not excluded; however, banking organizations like us that are not considered “advanced approaches” banking organizations may make a one-time permanent election to continue to exclude these items. With the submission of the Call Report for the first quarter of 2015, we made this election in order to avoid significant variations in the level of capital that can be caused by interest rate fluctuations on the fair value of the Bank’s AFS securities portfolio. The Basel III rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. The new capital conservation buffer requirements began phase in effective January 2016 at 0.625% of risk-weighted assets and increase by that amount each year until fully implemented in January 2019 (1.25% at December 31, 2017). An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses to executive officers if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. As of the date of the last regulatory exam, the Bank was considered “well capitalized” and as of December 31, 2017, the Bank continued to meet the requirements to be considered “well capitalized” based on applicable U.S. regulatory capital ratio requirements. Our regulatory capital amounts and ratios were as follows: Minimum Minimum To be Well Actual Requirements for Capital Adequacy Requirements with Capital Capitalized Under Prompt Corrective Purposes Conservation Buffer Action Provision Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 (dollars in thousands) Common Equity Tier 1 Capital (to risk-weighted assets) $ 105,721 16.5 % $ 28,904 4.5 % $ 36,933 5.8 % $ 41,750 6.5 % Total capital (to risk-weighted assets) 113,758 17.7 % 51,385 8.0 % 59,414 9.3 % 64,231 10.0 % Tier 1 capital (to risk-weighted assets) 105,721 16.5 % 38,539 6.0 % 46,567 7.3 % 51,385 8.0 % Tier 1 capital (to average quarterly assets) 105,721 13.5 % 31,440 4.0 % 41,264 5.3 % 39,300 5.0 % December 31, 2016 Common Equity Tier 1 Capital (to risk-weighted assets) $ 98,970 16.5 % $ 26,983 4.5 % $ 30,730 5.1 % $ 38,975 6.5 % Total capital (to risk-weighted assets) 106,517 17.8 % 47,969 8.0 % 51,717 8.6 % 59,962 10.0 % Tier 1 capital (to risk-weighted assets) 98,970 16.5 % 35,977 6.0 % 39,725 6.6 % 47,969 8.0 % Tier 1 capital (to average quarterly assets) 98,970 12.9 % 30,634 4.0 % 35,420 4.6 % 38,292 5.0 %

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 12 – Stockholders’ Equity Series A Preferred Stock As part of the private placement offering discussed in Note 9 above, the Company issued a total of 437,500 shares of its Series A 8.0% Non-Cumulative Convertible preferred stock (“Series A preferred stock”). On March 13, 2018, the Company notified holders of its Series A preferred stock that the Company has exercised its option to convert all 437,500 outstanding shares of Series A preferred stock into shares of the Company’s common stock. The Company intends to convert the Series A preferred stock on or before April 2, 2018 (“the Conversion Date”). As of the Conversion Date, the Series A preferred stock will no longer be deemed outstanding, and all rights with respect to such stock will cease and terminate, except the right of holders to receive shares of common stock in exchange for their shares of Series A preferred stock. Previously, if declared by the Company’s board of directors, cash dividends at an annual rate of 8.0% were to be paid quarterly in arrears on the last day of March, June, September, and December, commencing December 31, 2008. Dividends would not be paid on the Company’s common stock in any quarter until the dividend on the Series A Preferred Stock had been paid for such quarter; however, there was no requirement that the Company’s board of directors declare any dividends on the Series A Preferred Stock and any unpaid dividends were not cumulative. We paid such dividends during 2017 at $70,000 per quarter and during 2016 at $70,000 per quarter for the 2 nd rd th Series B Preferred Stock On November 21, 2008, we entered into an agreement with the U.S. Department of the Treasury (“Treasury”), pursuant to which we issued and sold (i) shares of our Series B Fixed Rate Cumulative Perpetual Preferred Stock (“Preferred Stock”) and (ii) a warrant (the “Warrant”) to purchase 556,976 shares of the Company’s common stock, par value $0.01 per share at an exercise price of $6.30 per share of common stock. As of December 31, 2016, the Company had redeemed all outstanding shares of the Preferred Stock. On December 20, 2017, the Company repurchased the warrant from the Treasury for a total repurchase price of $520,000. Dividend Restrictions The Company’s ability to declare dividends on its common stock was limited by the terms of the Company’s Series A Preferred Stock and previously, the Series B Preferred Stock.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Note 13 - Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for each period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options, warrants, and convertible preferred stock, and are determined using the treasury stock method. were 135,800 and Information relating to the calculations of our income per common share is summarized as follows for the years ended December 31: 2017 2016 (dollars in thousands, except for per share data) Weighted-average shares outstanding - basic 12,160,983 11,522,333 Dilution 116,753 52,559 Weighted-average share outstanding - diluted 12,277,736 11,574,892 Net income available to common stockholders $ 2,538 $ 13,318 Net income per share - basic $ 0.21 $ 1.16 Net income per share - diluted $ 0.21 $ 1.15

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 14 - Stock-Based Compensation We maintain a stock-based compensation plan for directors, officers, and other key employees of the Company. The aggregate number of shares of common stock that may be issued with respect to the awards granted under the plan is 500,000 plus any shares forfeited under the Company’s old stock-based compensation plan. Under the terms of the stock-based compensation plan, the Company has the ability to grant various stock compensation incentives, including stock options, stock appreciation rights, and restricted stock. The stock-based compensation is granted under terms and conditions determined by the Compensation Committee of the Board of Directors. Under the stock-based compensation plan, stock options generally have a maximum term of ten years, and are granted with an exercise price at least equal to the fair market value of the common stock on the date the options are granted. Generally, options granted to directors, officers, and employees of the Company vest over a five-year period, although the Compensation Committee has the authority to provide for different vesting schedules. We account for stock-based compensation in accordance with FASB Accounting Standards Codification Topic 718, Compensation – Stock Compensation, Stock-based compensation expense included in the Consolidated Statements of Operations for the years ended December 31, 2017 and 2016 totaled $205,000 and $184,000, respectively. Information regarding our stock-based compensation plan is as follows as of and for the years ended December 31: 2017 2016 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 339,500 $ 5.31 339,800 $ 4.83 Granted 115,800 7.22 74,000 6.98 Exercised (2,161 ) 3.37 (18,800 ) 3.96 Forfeited (18,864 ) 4.59 (55,500 ) 5.08 Outstanding at end of period 434,275 $ 5.87 6.7 $ 619 339,500 $ 5.31 4.9 $ 878 Exercisable at end of period 191,395 $ 4.85 6.3 $ 477 138,066 $ 4.48 1.9 $ 473 The stock-based compensation expense amounts and fair values of options at the time of the grants were derived using the Black-Scholes option-pricing model. The following weighted average assumptions were used to value options granted for the years ended December 31: 2017 2016 Expected life 5.5 years 5.5 years Risk-free interest rate 2.15 % 1.77 % Expected volatility 33.79 % 58.32 % Expected dividend yield - - Weighted average per share fair value of options granted $ 2.44 $ 3.55 The expected life is based on the vesting period and the expiration date of the option granted. The Risk-free interest rate is based on the US Treasury’s five year Treasury note rate at the time of the option grant. The expected volatility is based on the closing common stock price of the Company over a five year period. The expected dividend yield is based on the Company’s current policy of not paying a common stock dividend. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. As of December 31, 2017, there was $699,000 of total unrecognized of

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes [Abstract]
Income Taxes	Note 15 – Income Taxes Our income tax expense (benefit) consists of the following for the years ended December 31: 2017 2016 (dollars in thousands) Current $ 228 $ 67 Deferred 4,794 (10,081 ) Income tax expense $ 5,022 $ (10,014 ) The income tax expense (benefit) is reconciled to the amount computed by applying the federal corporate tax rate of 34% to the net income before taxes as follows for the years ended December 31: 2017 2016 Amount Rate Amount Rate (dollars in thousands) Tax at statutory federal rate $ 2,666 34.0 % $ 1,879 34.0 % Change in valuation allowance - - (12,485 ) (225.9 )% Adjustment for rate change 1,887 24.1 % - - State tax net of Federal income tax benefit 616 7.9 % 323 5.8 % Other adjustments (147 ) (1.9 )% 269 4.9 % $ 5,022 64.1 % $ (10,014 ) (181.2 )% The tax effects of temporary differences between the financial reporting basis and income tax basis of assets and liabilities relate to the following at December 31: 2017 2016 Deferred tax assets: (dollars in thousands) Net operating loss carryforward $ 3,446 $ 7,148 Allowance 3,201 4,636 Reserve on real estate acquired through foreclosure 135 161 Reserve for uncollected interest 108 433 Reserve for contingent liability 31 56 Charitable contributions 127 297 Unrealized losses on AFS securities 15 - AMT 351 192 Total gross deferred tax assets 7,414 12,923 Deferred tax liabilities: FHLB stock dividends 61 82 Loan origination costs 534 801 Accelerated depreciation 1,122 1,473 Prepaid expenses 239 264 MSRs 140 220 Other 16 2 Total gross deferred tax liabilities 2,112 2,842 Net deferred tax assets $ 5,302 $ 10,081 At December 31, 2017, federal net operating losses totaled $10.8 In assessing the realizability of federal or state deferred tax assets at December 31, 2017, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considered the scheduled reversal of deferred tax liabilities, projected future taxable income and prudent, feasible, and permissible, as well as available, tax planning strategies in making this assessment. Given the consistent earnings and improving asset quality, the Company’s analysis concluded that, as of December 31, 2017, it was more likely than not that it will generate sufficient taxable income within the applicable carry-forward periods to realize its net deferred tax asset. The Company will continue to have the benefit of the net operating loss carryforward relating to the deferred tax asset and will have the ability to utilize the carryforward against future federal and state income taxes. Management performed a similar analysis at June 30, 2016, with the same result and reversed the full valuation allowance carried on the net deferred tax asset at the time of $11.8 million to income tax expense. On December 22, 2017, H.R.1, commonly known as the Tax Cut and Jobs Act (“Tax Act”), was signed into law. The Tax Act includes many provisions that will effect the Company’s income tax expenses, including reducing the corporate federal tax rate from 34% to 21% effective January 1, 2018. As a result of the rate reduction, the Company was required to re-measure, through income tax expense in the period of enactment, its deferred tax assets and liabilities using the enacted rate at which the Company expects them to be recovered or settled. The re-measurement of the net deferred tax asset resulted in additional income tax expense of $1.9 million. The statute of limitations for Internal Revenue Service examination of the Company’s federal consolidated tax returns remains open for tax years 2014 through 2017. Our income tax returns are subject to review and examination by federal and state taxing authorities. We are no longer subject to examination by federal tax authorities for the years ended before 2013. The years open to examination by state taxing authorities vary by jurisdiction.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 16 – Commitments and Contingencies The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contract amounts of these instruments express the extent of involvement we have in each class of financial instruments. Our exposure to credit loss from nonperformance by the other party to the above mentioned financial instruments is represented by the contractual amount of those instruments. the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Unless otherwise noted, we require collateral or other security to support financial instruments with off-balance sheet credit risk. The following table shows the contract amounts for our off-balance sheet instruments as of December 31: 2017 2016 (dollars in thousands) Standby letters of credit $ 3,480 $ 4,022 Home equity lines of credit 13,321 7,736 Unadvanced construction commitments 74,720 15,728 Mortgage loan commitments 595 574 Lines of credit 16,612 34,125 Loans sold and serviced with limited repurchase provisions 21,409 70,773 Standby letters of credit are conditional commitments issued by the Bank guaranteeing performance by a customer to various municipalities. These guarantees are issued primarily to support performance arrangements and are limited to real estate transactions. The majority of these standby letters of credit expire within twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit as deemed necessary. Management believes, except for certain standby letters of credit, that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of December 31, 2017 and December 31, 2016 for guarantees under standby letters of credit issued was $42 , 000 and $94,000, respectively. Home equity lines of credit are loan commitments to individuals as long as there is no violation of any condition established in the contract. Commitments under home equity lines expire ten years after the date the loan closes and are secured by real estate. We evaluate each customer’s credit worthiness on a case-by-case basis. Unadvanced construction commitments are loan commitments made to borrowers for both residential and commercial projects that are either in process or are expected to begin construction shortly. Mortgage loan commitments not reflected in the accompanying statements of financial condition at December 31, 2017 included two loans at fixed interest rates of 5.0% and 3.875%, respectively, totaling $595,000. At December 31, 2016 such commitments included two loans at a fixed interest rate of 4.25% totaling $574,000. Lines of credit are loan commitments to individuals and companies as long as there is no violation of any condition established in the contract. Lines of credit have a fixed expiration date. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The Bank has entered into several agreements to sell mortgage loans to third parties. These agreements contain limited provisions that require the Bank to repurchase a loan if the loan becomes delinquent within a period ranging generally from 120 to 180 days after the sale date depending on the investor’s agreement. The credit risk involved in these financial instruments is essentially the same as that involved in extending loan facilities to customers. We established a reserve for potential repurchases for these loans, which amounted to $63 31, 2017 and $48,000 at December 31, 2016. The Company provides banking services to customers who do business in the medical-use cannabis industry. While the growing, processing, and sales of medical-use cannabis is legal in the state of Maryland, the business currently violates Federal law. The Company may be deemed to be aiding and abetting illegal activities through the services that it provides to these customers. The strict enforcement of Federal laws regarding medical-use cannabis would likely result in the Company’s inability to continue to provide banking services to these customers and the Company could have legal action taken against it by the Federal government, including imprisonment and fines. There is an uncertainty of the potential impact to the Company’s consolidated financial statements if the Federal government takes actions against the Company. As of December 31, 2017, the Company has not accrued an amount for the potential impact of any such actions. Following is a summary of the level of business activities with our medical-use cannabis customers: · Deposit and loan balances at December 31, 2017, were approximately $19.2 million, 3.2% of total deposits, and $11.9 million, 1.8% of total loans, respectively. · Interest and non-interest income for the year ended December 31, 2017, were approximately $0.28 million and $0.23 million, respectively. · Volume of deposits accepted in the accounts of medical-use cannabis customers for the year ended December 31, 2017 was approximately $45.1 million.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 17 - Fair Value of Financial Instruments A fair value hierarchy that prioritizes the inputs to valuation methods is used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair market hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. We record transfers between levels at the end of the reporting period in which the change in significant inputs occurs. Assets and Liabilities Measured on a Recurring Basis The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2017: Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Changes In Fair Values Included In Period Income Assets: (dollars in thousands) AFS Securities - U.S. government agency notes $ 10,119 $ - $ 10,119 $ - $ - LHFS 4,530 - 4,530 - 131 MSRs 477 - - 477 (80 ) IRLCs 22 - 22 - (140 ) Mandatory forward contracts 13 - 13 - (140 ) Best efforts forward contracts 3 - 3 - 3 The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016: Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Changes In Fair Values Included In Period Income Assets: (dollars in thousands) MSRs $ 557 $ - $ - $ 557 $ 66 IRLCs 162 - 162 - (21 ) Mandatory forward contracts 153 - 153 - 42 The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted-Average) (dollars in thousands) December 31, 2017: MSRs $ 477 Market Approach Weighted average prepayment speed 3.94 % December 31, 2016: MSRs $ 557 Market Approach Weighted average prepayment speed 3.95 % The activity in MSRs was as follows for the years ended December 31: 2017 2016 Beginning balance $ 557 $ 623 Valuation adjustment $ (80 ) $ (66 ) Ending balance $ 477 $ 557 AFS Securities The estimated fair values of AFS debt securities are obtained from a nationally-recognized pricing service. This pricing service develops estimated fair values by analyzing like securities and applying available market information through processes such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare valuations. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things, and are based on market data obtained from sources independent from the Bank. The Level 2 investments in the Bank’s portfolio are priced using those inputs that, based on the analysis prepared by the pricing service, reflect the assumptions that market participants would use to price the assets. The Bank has determined that the Level 2 designation is appropriate for these securities because, as with most fixed-income securities, those in the Bank’s portfolio are not exchange-traded, and such nonexchange-traded fixed income securities are typically priced by correlation to observed market data. LHFS At December 31, 2017, LHFS are carried at fair value, which is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third party pricing models. At December 31, 2016, LHFS were carried at LCM, utilizing the same method. MSRs The fair value of MSRs is determined using a valuation model administered by a third party that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income, and other ancillary income such as late fees. Management reviews all significant assumptions on a quarterly basis. Mortgage loan prepayment speed, a key assumption in the model, is the annual rate at which borrowers are forecasted to repay their mortgage loan principal. The discount rate used to determine the present value of estimated future net servicing income, another key assumption in the model, is an estimate of the required rate of return investors in the market would require for an asset with similar risk. Both assumptions can, and generally will, change as market conditions and interest rates change. IRLCs We utilize a third party specialist model to estimate the fair value of our IRLCs, which are valued based upon mandatory pricing quotes from correspondent lenders less estimated costs to process and settle the loan. Fair value is adjusted for the estimated probability of the loan closing with the borrower. Forward Contracts To avoid interest rate risk, we enter into best efforts forward sales commitments with investors at the time we make an IRLC to a borrower. Once a loan has been closed and funded, the best efforts commitments convert to mandatory forward sales commitments. The mandatory commitments are derivatives, and we measure and report them at fair value. Fair value is based on the gain or loss that would occur if we were to pair-off the transaction with the investor at the measurement date. This is a level 2 input. We have elected to measure and report best efforts commitments at fair value using a valuation methodology similar to that used for mandatory commitments. Assets Measured on a Nonrecurring Basis We may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from application of LCM accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets as of December 31: 2017 Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Range of Discount Weighted Average (dollars in thousands) Impaired loans $ 2,793 $ - $ - $ 2,793 0% - 33 % 14.5 % Real estate acquired through foreclosure 178 - - 178 0% - 22 % 11.5 % 2016 Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Range of Discount Weighted Average (dollars in thousands) Impaired loans $ 2,136 $ - $ - $ 2,136 0% - 2 % 2.0 % Real estate acquired through foreclosure 767 - - 767 0% - 10 % 10.0 % Impaired Loans Impaired loans are those for which we have measured impairment based on the present value of expected future cash flows or on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. If it is determined that the repayment of the loan will be provided solely by the underlying collateral, and there are no other available and reliable sources of repayment, the loan is considered collateral dependent. Impaired loans that are considered collateral dependent are carried at the LCM. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The use of independent appraisals and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaired loans are therefore classified within level 3 of the fair value hierarchy. For such loans that are classified as impaired, an Allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. For such impaired loans that are classified as collateral dependent, an Allowance is established when the current market value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge-off is taken for the difference between the net collateral value and the carrying value of the loan. Real Estate Acquired Through Foreclosure We record foreclosed real estate assets at the fair value less estimated selling costs on their acquisition dates and at the lower of such initial amount or estimated fair value less estimated selling costs thereafter. We generally obtain certified external appraisals of real estate acquired through foreclosure and estimate fair value using those appraisals. Other valuation sources may be used, including broker price opinions, letters of intent, and executed sale agreements. Fair Value of All Financial Instruments The carrying value and estimated fair value of all financial instruments are summarized in the following tables. The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above. December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 21,853 $ 21,853 $ - $ - $ 21,853 Certificates of deposits held as investment 8,780 8,780 - - 8,780 AFS securities 10,119 - 10,119 - 10,119 HTM securities 54,303 5,056 48,948 - 54,004 LHFS 4,530 - 4,530 - 4,530 Loans receivable 660,096 - - 672,349 672,349 Restricted stock investments 4,489 - 4,489 - 4,489 Accrued interest receivable 2,640 - 2,640 - 2,640 MSRs 477 - - 477 477 IRLCs 22 - 22 - 22 Mandatory forward contracts 13 - 13 - 13 Best effort forward contracts 3 - 3 - 3 Liabilities: Deposits 602,228 - 594,659 - 594,659 Accrued interest payable 395 - 395 - 395 Borrowings 88,500 - 81,303 - 81,303 Subordinated debentures 20,619 - - 20,619 20,619 December 31, 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 67,014 $ 67,014 $ - $ - $ 67,014 Certificates of deposit held as investment 100 100 - - 100 HTM securities 62,757 13,165 49,662 - 62,827 LHFS 10,307 - 10,313 - 10,313 Loans receivable 601,309 - - 602,953 602,953 Restricted stock investments 5,103 - 5,103 - 5,103 Accrued interest receivable 2,249 - 2,249 - 2,249 MSRs 557 - - 557 557 IRLCs 162 - 162 - 162 Mandatory forward contracts 153 - 153 - 153 Liabilities: Deposits 571,946 - 572,556 - 572,556 Accrued interest payable 538 - 538 - 538 Borrowings 103,500 - 97,961 - 97,961 Subordinated debentures 20,619 - - 20,619 20,619 At December 31, 2017 and 2016, the Bank had loan funding commitments of $105.2 Cash and Cash Equivalents The carrying amount reported in the consolidated statements of financial condition for cash and cash equivalents approximate those assets’ fair values. Certificates of Deposit Held for Investment The carrying amount reported in the consolidated statements of financial condition for Certificates of Deposit Held for Investment approximate those assets’ fair value. HTM Securities The Company utilizes a third party source to determine the fair value of its securities. The methodology consists of pricing models based on asset class and includes available trade, bid, other market information, broker quotes, proprietary models, various databases, and trading desk quotes. We consider our U.S. Treasury securities to be Level 1, with the remaining securities considered Level 2. Loans Receivable The fair values of loans receivable were estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. These rates were used for each aggregated category of loans. Restricted Stock Investments The carrying value of restricted stock investments is a reasonable estimate of fair value as these investments do not have a readily available market. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates fair value. Deposits The fair values disclosed for demand deposit accounts, savings accounts, and money market deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Borrowings Long-term and short-term borrowings were segmented into categories with similar financial characteristics. Carrying values were discounted using a cash flow approach based on market rates. Subordinated Debentures Current economic conditions have rendered the market for this liability inactive. As such, the Company is unable to determine a good estimate of fair value. Since the rate paid on the debentures held is lower than what would be required to secure an interest in the same debt at year end and we are unable to obtain a current fair value, we have made the determination that the carrying value approximates the fair value for this liability. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about financial instruments. These estimates do not reflect any premium or discount that could result from a one-time sale of our total holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect estimates. The above information should not be interpreted as an estimate of the fair value of the Company since a fair value calculation is only provided for a limited portion of our assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between our disclosures and those of other companies may not be meaningful. There were no transfers between any of Levels 1, 2, and 3 for the years ended December 31, 2017 or 2016.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 18 – Related Party Transactions During the ordinary course of business, we make loans to our directors and their affiliates and several of our policy making officers on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with other customers. Transactions in related party loans were as follows for the years ended December 31: 2017 2016 (dollars in thousands) Beginning Balance $ 3,060 $ 3,186 Additions 3,667 133 Repayments (272 ) (259 ) $ 6,455 $ 3,060 During January 2007, a law firm, in which the President of the Company and the Bank is a partner, entered into a five year lease agreement with a subsidiary of the Company. The term of the lease is five years with the option to renew the lease for three additional five year terms. The second option to renew was exercised in January 2017. The total rent payments received by the subsidiary were $276,000 and $270,000 for the years ended December 31, 2017 and 2016, respectively. The law firm also reimburses the Company for its share of common area maintenance and utilities. The total reimbursement amounted to $131,000 and $133,000, respectivly, for the years ended December 31, 2017 and 2016. In addition, the law firm represents the Company and the Bank in certain legal matters. The fees for services rendered by that firm were $149,000, and $228,000 for the years ended December 31, 2017 and 2016 respectively.

Parent Company Financial Statem

Parent Company Financial Statements	12 Months Ended
	Dec. 31, 2017
Parent Company Financial Statements [Abstract]
Parent Company Financial Statements	Note 19 – Parent Company Financial Statements The following is financial information of Severn Bancorp (parent company only): Statements of Financial Condition December 31, 2017 2016 ASSETS (dollars in thousands) Cash $ 1,310 $ 2,012 Equity in net assets of subsidiaries: Bank 108,735 105,898 Nonbank 3,886 3,014 Other assets 1,421 1,265 Total assets $ 115,352 $ 112,189 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Subordinated debentures $ 20,619 $ 20,619 Other liabilities 3,633 3,640 Total liabilities 24,252 24,259 Stockholders’ Equity 91,100 87,930 Total liabilities and stockholders’ equity $ 115,352 $ 112,189 Statements of Operations Years Ended December 31, 2017 2016 (dollars in thousands) Interest income $ - $ - Interest expense on subordinated debentures 824 973 Net interest expense (824 ) (973 ) General and administrative expenses 218 229 Loss before income taxes and equity in undistributed net income of subsidiaries (1,042 ) (1,202 ) Income tax benefit (71 ) (1,004 ) Equity in undistributed net income of subsidiaries 3,789 15,738 Net income $ 2,818 $ 15,540 Statements of Cash Flows Years Ended December 31, 2017 2016 Cash flows from operating activities: (dollars in thousands) Net income $ 2,818 $ 15,540 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (3,789 ) (15,738 ) Stock-based compensation 205 184 Deferred income taxes (718 ) (531 ) Decrease in other assets 562 178 Decrease in accrued expenses and other liabilities (7 ) (1,965 ) Net cash used in operating activities (929 ) (2,332 ) Cash flows from investing activities: Contributions from subsidiaries 820 24,000 Net cash provided by investing activities 820 24,000 Cash flows from financing activities: Preferred stock dividends (280 ) (7,840 ) Repurchase of warrant (520 ) - Stock redemption of Series B preferred stock - (23,393 ) Proceeds from common stock issuance 207 10,584 Net cash used in financing activities (593 ) (20,649 ) (Decrease) increase in cash and cash equivalents (702 ) 1,019 Cash and cash equivalents at beginning of period 2,012 993 Cash and cash equivalents at end of period $ 1,310 $ 2,012

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accounting and reporting policies of Severn Bancorp, Inc. and subsidiaries (the “Company”) conform to accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”). Events occurring after the date of the financial statements up to March 29, 2018, the date the financial statements were available to be issued, were considered in the preparation of the consolidated financial statements.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Severn Bancorp, Inc., and its wholly-owned subsidiaries, Mid-Maryland Title Company, Inc., SBI Mortgage Company and SBI Mortgage Company’s subsidiary, Crownsville Development Corporation, and its subsidiary, Crownsville Holdings I, LLC, and Severn Savings Bank, FSB (the “Bank”), and the Bank’s subsidiaries, Louis Hyatt, Inc., Homeowners Title and Escrow Corporation, Severn Financial Services Corporation, SSB Realty Holdings, LLC, SSB Realty Holdings II, LLC, and HS West, LLC. All intercompany accounts and transactions have been eliminated in the accompanying consolidated financial statements.
Acquisition	Acquisition On September 1, 2017, we acquired by issuing common stock in a business combination. We issued 108,084 shares in the transaction valued at $775,000. We recorded $765,000 in goodwill in the transaction. The acquisition continues our growth strategy and focus on being a full-service provider and complements the mortgage services, commercial banking services, and commercial real estate services we provide. The acquisition of the Title Company has not had a material effect on the Company’s financial condition or results of operations.
Use of Estimates	Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and affect the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for loan losses and the related allowance for loan losses (“Allowance”), determination of impaired loans and the related measurement of impairment, valuation of investment securities, valuation of real estate acquired through foreclosure, valuation of share-based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, and the calculation of current and deferred income taxes and the realizability of deferred tax assets.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less to be cash equivalents. For reporting purposes, assets grouped in the Consolidated Statements of Financial Condition under the captions “Cash and due from banks” and “Federal funds sold and interest‑bearing deposits in other banks” are considered cash or cash equivalents. For financial statement purposes, these assets are carried at cost. Federal funds sold and interest-bearing deposits in other banks generally have overnight maturities and are in excess of amounts that would be recoverable under Federal Deposit Insurance Corporation (“FDIC”) insurance.
Reclassifications	Reclassifications Certain reclassifications have been made to amounts previously reported to conform to current period presentation. Such reclassifications had no impact on net income.
Certificates of Deposit Held for Investment	Certificates of Deposit Held for Investment We periodically invest cash in certificates of deposit ("CDs") with other financial institutions. We limit the deposit in any one financial institution to $250,000, thereby allowing the CDs to be within the fully insured limits of the FDIC.
Securities	Securities We designate securities into one of three categories at the time of purchase. Debt securities that we have the intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Debt and equity securities are classified as trading if bought and held principally for the purpose of sale in the near term. Trading securities are reported at estimated fair value, with unrealized gains and losses included in earnings. Debt securities not classified as HTM and debt and equity securities not classified as trading securities are considered available for sale (“AFS”) and are reported at estimated fair value, with unrealized gains and losses reported as a separate component of stockholders’ equity, net of tax effects, in accumulated other comprehensive loss. AFS and HTM securities are evaluated periodically to determine whether a decline in their value is other than temporary. The term “other than temporary” is not intended to indicate a permanent decline in value. Rather, it means that the prospects for near-term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the security. The initial indications of other-than-temporary impairment (“OTTI”) for both debt and equity securities are a decline in the market value below the amount recorded for a security and the severity and duration of the decline. In determining whether an impairment is other than temporary, we consider the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, our intent to sell the security, and if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. We also consider the cause of the price decline (general level of interest rates and industry- and issuer-specific factors), the issuer’s financial condition, near-term prospects and current ability to make future payments in a timely manner, the issuer’s ability to service debt, and any change in agencies’ ratings at evaluation date from acquisition date and any likely imminent action. Once a decline in value is determined to be other than temporary, the security is segmented into credit- and noncredit-related components. Any impairment adjustment due to identified credit-related components is recorded as an adjustment to current period earnings, while noncredit-related fair value adjustments are recorded through accumulated other comprehensive loss. In situations where we intend to sell or it is more likely than not that we will be required to sell the security, the entire OTTI loss is recognized in earnings.
Loans Held for Sale ("LHFS")	Loans Held for Sale (“LHFS”) Mortgage loans originated for sale are carried at fair value. Fair value is determined based on outstanding investor commitments or, in the absence of such commitments, on current investor yield requirements or third party pricing models. Gains and losses on loan sales are determined using the specific-identification method and are recognized through mortgage-banking revenue in the Consolidated Statement of Operations.
Loans Receivable	Loans Receivable Our loans receivable are stated at their principal balance outstanding, net of related deferred fees and costs. Income Recognition
Income recognition	Interest income on loans is accrued at the contractual rate based on the principal outstanding. Loan origination fees and certain direct loan origination costs are deferred and amortized as a yield adjustment over the contractual loan term or until the date of sale or disposition. Accrual of interest is discontinued when its receipt is in doubt, which typically occurs when a loan becomes impaired. Any interest accrued to income in the year when interest accruals are discontinued is generally reversed. Management may elect to continue the accrual of interest when a loan is in the process of collection and the estimated fair value of the collateral is sufficient to satisfy the principal balance and accrued interest. See additional information on nonaccrual interest and loan impairment later in this section.
Fees and costs	Fees and costs Origination and commitment fees and direct origination costs on loans held for investment generally are deferred and amortized to income over the contractual lives of the related loans using the interest method. Under certain circumstances, commitment fees are recognized over the commitment period or upon expiration of the commitment. Fees to extend loans three months or less are recognized in income upon receipt. Unamortized loan fees are recognized in income when the related loans are sold or prepaid.
Transfers of LHFS	Transfers of LHFS In accordance with guidance on mortgage-banking activities, any loans which are originally originated for sale into the secondary market and which we subsequently elect to transfer into the Company’s loan portfolio are valued at lower of cost or market value ( LCM ) at the time of the transfer with any decline in value recorded as a charge against mortgage-banking revenue.
Troubled Debt Restructured Loans ("TDR" or "TDRs")	Troubled Debt Restructured Loans (“TDR” or “TDRs”) We strive to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, we may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related now-modified loan is classified as a TDR. These modified terms may include rate reductions, principal forgiveness, payment extensions, payment forbearance, and/or other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. At the time that a loan is modified, we evaluate any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In these cases, we use the current fair value of the collateral, less selling costs, instead of discounted cash flows. Any impairment amount is then set up as an allocated portion of the Allowance.
Loan Impairment	Loan Impairment A loan is considered impaired if it meets any of the following three criteria: ● Loans that are 90 days or more in arrears (nonaccrual loans); ● Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement; or ● Loans that are modified and qualify as TDRs. If a loan is considered to be impaired, it is then determined to be either cash flow or collateral dependent for purposes of Allowance determination (see Allowance discussion below).
Nonaccrual Interest	Nonaccrual Interest The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed in nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed in nonaccrual status or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, generally after six months of consecutive current payments and an updated analysis of the borrower’s ability to service the loan. Our policy for recording payments received on nonaccrual loans is to record the payment towards principal and interest on a cash basis until such time as the loan is returned to accrual status. Loans that experience insignificant payment delays and payment shortfalls generally are not placed in nonaccrual status or classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.
Allowance for Loan Losses	Allowance for Loan Losses The Allowance is maintained at an amount that management believes will be adequate to absorb losses on existing loans that may become uncollectible, based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrowers’ ability to pay. Determining the amount of the Allowance requires the use of estimates and assumptions. Actual results could differ significantly from those estimates. Future additions or reductions in the Allowance may be necessary based on changes in economic conditions, particularly in Anne Arundel County and the State of Maryland. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s Allowance. Such agencies may require the Bank to recognize additions to the Allowance based on their judgment about information available to them at the time of their examination. The Allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. When a real estate secured loan becomes impaired, a decision is made as to whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the LTV ratio based on the original appraisal, and the condition of the property. Appraised values are discounted, if appropriate, to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For loans secured by collateral other than real estate, such as accounts receivable, inventory, and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging, or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an Allowance is established when the current fair value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge off is taken for the difference between the net collateral value and the carrying value of the loan. For loans that are not solely collateral dependent, an Allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of the loan. The general component relates to loans that are classified as doubtful, substandard, or special mention that are not considered impaired, as well as nonclassified loans. The general reserve is based on historical loss experience adjusted for qualitative factors. These qualitative factors include, but are not limited to: ● Levels and trends in delinquencies and nonaccruals; ● Inherent risk in the loan portfolio; ● Trends in volume and terms of the loan; ● Effects of any change in lending policies and procedures; ● Experience, ability, and depth of management; ● National and local economic trends and conditions; ● Effect of any changes in concentration of credit; and ● Industry conditions. We assign risk ratings to the loans in our portfolio. These credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the Allowance. Loans not classified are rated pass. With respect to all loan segments, we do not charge off a loan, or a portion of a loan, until one of the following conditions have been met: ● The property collateralizing the loan has been foreclosed upon. At the time of foreclosure, a charge-off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral; ● An agreement to accept less than the recorded balance of the loan has been made with the borrower. Once an agreement has been finalized and any proceeds from the borrower are received, a charge-off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral; or ● The collateral valuation on a collateral dependent impaired loan is less than the recorded balance. The loan is charged off for accounting purposes by the amount of the difference between the recorded balance and collateral value.
Real Estate Acquired Through Foreclosure	Real Estate Acquired Through Foreclosure Real estate acquired through or in the process of foreclosure is recorded at fair value less estimated disposal costs. Management periodically evaluates the recoverability of the carrying value of the real estate acquired through foreclosure using estimates as described under Allowance for Loan Losses above. In the event of a subsequent change in fair value, the carrying amount is adjusted to the lesser of the new fair value, less disposal costs, or the carrying value recorded at acquisition. The amount of the change is charged or credited to noninterest expense. Expenses on real estate acquired through foreclosure incurred prior to the disposition of the property, such as maintenance, insurance and taxes, and physical security, are charged to expense. Material expenses that improve the property to its best use are capitalized to the property. If a foreclosed property is sold for more or less than the carrying value, a gain or loss is recognized upon the sale of the property.
Restricted Stock Investments	Restricted Stock Investments Our restricted stock investments include stock of the Federal Home Loan Bank of Atlanta (the “FHLB”) and capital stock of several bankers’ banks no readily available market exists for these stocks and they have no quoted market values. We evaluated the FHLB stock for impairment in accordance with GAAP. The Bank’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB, and (4) the liquidity position of the FHLB. Management has evaluated the FHLB stock for impairment and believes that no impairment charge is necessary as of December 31, 2017.
Premises and Equipment	Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Depreciation and amortization of premises and equipment is accumulated by the use of the straight-line method over the estimated useful lives of the assets. Additions and improvements are capitalized, and charges for repairs and maintenance are expensed when incurred. The related cost and accumulated depreciation are eliminated from the accounts when an asset is sold or retired and the resultant gain or loss is credited or charged to income.
Bank Owned Life Insurance ("BOLI")	Bank Owned Life Insurance (“BOLI”) BOLI is carried at the aggregate cash surrender value of life insurance policies owned where the Company or its subsidiary is named beneficiary. Increases in cash surrender value derived from crediting rates for underlying insurance policies is credited to noninterest income.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess purchase price paid over the fair value of the net assets acquired in a business combination and is allocated to the Bank’s reporting units. Based upon an in-depth analysis performed in accordance with FASB guidance, we have determined that we have one reporting unit – commercial and consumer banking. Goodwill is not amortized but is tested for impairment periodically. We assess goodwill for potential impairment annually as of December 31, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. As of the testing date, we determine the fair value of the reporting unit. If the fair value of the reporting unit exceeds its book value, no write-down of the recorded goodwill is required. As of December 31, 2017, we performed a fair value analysis for the reporting period and determined that the fair value of the reporting unit was greater than its carrying amount and that there was no evidence of impairment of goodwill.
Income Taxes	Income Taxes Deferred income taxes are recognized for the tax consequences of temporary differences between financial statement carrying amounts and the tax bases of assets and liabilities. Deferred income taxes are provided on income and expense items when they are reported for financial statement purposes in periods different from the periods in which these items are recognized in the income tax returns. Deferred tax assets are recognized only to the extent that it is more likely than not that such amounts will be realized based upon consideration of available evidence, including tax planning strategies and other factors. The calculation of tax assets and liabilities is complex and requires the use of estimates and judgment since it involves the application of complex tax laws that are subject to different interpretations by us and the various tax authorities. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. Periodically and in the ordinary course of business, we are involved in inquiries and reviews by tax authorities that normally require management to provide supplemental information to support certain tax positions we take in our tax returns. Uncertain tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit or liability that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. For tax positions not meeting the “more likely than not” test, no tax benefit or liability is recorded. Management believes it has taken appropriate positions on its tax returns, although the ultimate outcome of any tax review cannot be predicted with certainty. No assurance can be given that the final outcome of these matters will not be different than what is reflected in the financial statements. We recognize interest and penalties related to income tax matters in income tax expense.
Comprehensive Income	Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on AFS securities, are reported as a separate component of the equity section of the consolidated statements of financial condition, and, along with net income, are components of comprehensive income. The Company’s sole component of accumulated other comprehensive income/loss is unrealized gains/losses on AFS securities.
Derivative Financial Instruments and Hedging	Derivative Financial Instruments and Hedging We account for derivatives in accordance with FASB literature on accounting for derivative instruments and hedging activities. When we enter into a derivative contract, we designate the derivative as held for trading, an economic hedge, or a qualifying hedge as detailed in the literature. The designation may change based upon management’s reassessment or changing circumstances. Derivatives utilized by the Company include interest rate lock commitments (“IRLC” or “IRLCs”) and forward settlement contracts. IRLCs occur when we originate mortgage loans with interest rates determined prior to funding. Forward settlement contracts are agreements to buy or sell a quantity of a financial instrument, index, currency, or commodity at a predetermined future date, and rate or price. We designate at inception whether a derivative contract is considered hedging or nonhedging. All of our derivatives are nonexchange traded contracts, and as such, their fair value is based on dealer quotes, pricing models, discounted cash flow methodologies, or similar techniques for which the determination of fair value may require significant management judgment or estimation. For qualifying hedges, we formally document at inception all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various accounting hedges. We utilize derivatives to manage interest rate sensitivity in certain cases. At December 31, 2017 and 2016, we did not have any designated hedges as we do not designate IRLCs or forward sales commitments on residential mortgage originations as hedges. We recognize any gains and losses on IRLCs and forward sales commitments on residential mortgage originations through mortgage-banking revenue in the Consolidated Statements of Operations.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We continually monitor events and changes in circumstances that could indicate that our carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through a requirement to repurchase them before their maturity.
Advertising Costs	Advertising Costs We expense our advertising costs as incurred, except payments for major sponsorships which are amortized over an estimated life not to exceed one year. Advertising expenses were $788,000 and $703,000 for the years ended December 31, 2017 and 2016, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Pronouncements Adopted In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting Pronouncements Issued In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Revenue from Contracts with Customers: Deferral of the Effective Date, , Revenue from Contracts with Customers: Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), , Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, , Technical Corrections and Improvements to Topic 606, Revenue form Contracts with Customers, The Company adopted the pronouncement on January 1, 2018 and has substantially completed an assessment of the revenue contracts for the revenue streams identified to be in scope. The Company’s accounting policies and revenue recognition principles will not change materially as the principles of ASC 606 are largely consistent with the current revenue recognition practices. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU 2016-02, Leases In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses In August 2016, FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments, In March 2017, FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other costs, In February 2018, FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2017
Securities [Abstract]
Amortized cost and estimated fair values of AFS securities	The amortized cost and estimated fair values of our AFS securities portfolio was as follows as of December 31, 2017: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. government agency notes $ 10,169 $ - $ 50 $ 10,119
Amortized cost and estimated fair values of HTM securities	The amortized cost and estimated fair values of our HTM securities portfolio were as follows as of December 31: 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 4,994 $ 68 $ 6 $ 5,056 U.S. government agency notes 19,004 81 99 18,986 Mortgage-backed securities 30,305 27 370 29,962 $ 54,303 $ 176 $ 475 $ 54,004 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (dollars in thousands) U.S. Treasury securities $ 12,998 $ 167 $ - $ 13,165 U.S. government agency notes 20,027 133 54 20,106 Mortgage-backed securities 29,732 52 228 29,556 $ 62,757 $ 352 $ 282 $ 62,827
Schedule of temporary impairment losses	Gross unrealized losses and fair value by length of time that the individual HTM securities have been in an unrealized loss position at the dates indicated are presented in the following tables as of December 31: 2017 Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) U.S. Treasury securities $ 1,993 $ 6 $ - $ - $ 1,993 $ 6 U.S. government agency notes 6,977 23 6,964 76 13,941 99 Mortgage-backed securities 20,993 217 7,046 153 28,039 370 $ 29,963 $ 246 $ 14,010 $ 229 $ 43,973 $ 475 2016 Less than 12 months 12 months or more Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (dollars in thousands) U.S. government agency notes $ 5,002 $ 54 $ - $ - $ 5,002 $ 54 Mortgage-backed securities 23,457 228 - - 23,457 228 $ 28,459 $ 282 $ - $ - $ 28,459 $ 282
Amortized cost and estimated fair value of debt securities	Contractual maturities of debt securities at December 31, 2017 are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. AFS Securities HTM Securities Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (dollars in thousands) Due in one year or less $ - $ - $ 10,011 $ 10,008 Due after one through five years 10,169 10,119 12,020 11,990 Due after five years through ten years - - 1,967 2,044 Mortgage-backed securities - - 30,305 29,962 $ 10,169 $ 10,119 $ 54,303 $ 54,004

Loans Receivable and Allowanc30

Loans Receivable and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2017
Loans Receivable and Allowance for Loan Losses [Abstract]
Summary of loans receivable	Loans receivable are summarized as follows at December 31: 2017 2016 (dollars in thousands) Residential mortgage $ 287,656 $ 260,603 Commercial 37,356 46,468 Commercial real estate 236,302 195,710 Construction, land acquisition, and development 93,060 90,102 Home equity/2nds 15,703 19,129 Consumer 1,084 1,210 Total loans receivable 671,161 613,222 Unearned loan fees (3,010 ) (2,944 ) Net loans receivable $ 668,151 $ 610,278
Changes in allowance for loan losses and recorded investment	The following tables present, by portfolio segment, the changes in the Allowance and the recorded investment in loans as of and for the years ended December 31: 2017 Residental Mortgage Commercial Commercial Real Estate ADC Home Equity/ 2nds Consumer Total (dollars in thousands) Beginning Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Charge-offs (726 ) - - - (98 ) (2 ) (826 ) Recoveries 375 - 157 - 30 - 562 Net (charge-offs) recoveries (351 ) - 157 - (68 ) (2 ) (264 ) (Reversal of) provision for loan losses (383 ) 49 113 (154 ) (274 ) (1 ) (650 ) Ending Balance $ 3,099 $ 527 $ 2,805 $ 1,236 $ 386 $ 2 $ 8,055 Ending balance - individually evaluated for impairment $ 1,181 $ - $ 182 $ 48 $ - $ 2 $ 1,413 Ending balance - collectively evaluated for impairment 1,918 527 2,623 1,188 386 - 6,642 $ 3,099 $ 527 $ 2,805 $ 1,236 $ 386 $ 2 $ 8,055 Ending loan balance - individually evaluated for impairment $ 18,219 $ - $ 2,917 $ 991 $ - $ 84 $ 22,211 Ending loan balance - collectively evaluated for impairment 266,427 37,356 233,385 92,069 15,703 1,000 645,940 $ 284,646 $ 37,356 $ 236,302 $ 93,060 $ 15,703 $ 1,084 $ 668,151 2016 Residental Mortgage Commercial Commercial Real Estate ADC Home Equity/ 2nds Consumer Total (dollars in thousands) Beginning Balance $ 4,188 $ 291 $ 2,792 $ 956 $ 528 $ 3 $ 8,758 Charge-offs (151 ) (17 ) (178 ) (72 ) (50 ) - (468 ) Recoveries 324 54 23 157 421 50 1,029 Net recoveries (charge-offs) 173 37 (155 ) 85 371 50 561 (Reversal of) provision for loan losses (528 ) 150 (102 ) 349 (171 ) (48 ) (350 ) Ending Balance $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending balance - individually evaluated for impairment $ 1,703 $ 15 $ 196 $ 53 $ 402 $ 4 $ 2,373 Ending balance - collectively evaluated for impairment 2,130 463 2,339 1,337 326 1 6,596 $ 3,833 $ 478 $ 2,535 $ 1,390 $ 728 $ 5 $ 8,969 Ending loan balance - individually evaluated for impairment $ 20,403 $ 148 $ 5,656 $ 858 $ 3,137 $ 96 $ 30,298 Ending loan balance - collectively evaluated for impairment 237,256 46,320 190,054 89,244 15,992 1,114 579,980 $ 257,659 $ 46,468 $ 195,710 $ 90,102 $ 19,129 $ 1,210 $ 610,278
Credit quality breakdown of loan portfolio by class	The following tables present the credit quality breakdown of our loan portfolio by class as of December 31: 2017 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 277,867 $ 1,563 $ 5,216 $ 284,646 Commercial 37,312 44 - 37,356 Commercial real estate 228,746 4,615 2,941 236,302 ADC 91,868 - 1,192 93,060 Home equity/2nds 14,384 465 854 15,703 Consumer 1,084 - - 1,084 $ 651,261 $ 6,687 $ 10,203 $ 668,151 2016 Pass Special Mention Substandard Total (dollars in thousands) Residential mortgage $ 248,819 $ 4,316 $ 4,524 $ 257,659 Commercial 46,011 204 253 46,468 Commercial real estate 184,820 7,420 3,470 195,710 ADC 89,324 - 778 90,102 Home equity/2nds 16,056 472 2,601 19,129 Consumer 1,210 - - 1,210 $ 586,240 $ 12,412 $ 11,626 $ 610,278
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans	The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31: 2017 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,006 $ - $ - $ 1,006 $ 283,640 $ 284,646 $ 3,891 Commercial - - - - 37,356 37,356 78 Commercial real estate 948 - - 948 235,354 236,302 159 ADC - - - - 93,060 93,060 314 Home equity/2nds - - - - 15,703 15,703 1,268 Consumer - - - - 1,084 1,084 - $ 1,954 $ - $ - $ 1,954 $ 666,197 $ 668,151 $ 5,710 2016 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Non- Accrual (dollars in thousands) Residential mortgage $ 1,472 $ 2,074 $ 964 $ 4,510 $ 253,149 $ 257,659 $ 3,580 Commercial - - - - 46,468 46,468 151 Commercial real estate - 171 515 686 195,024 195,710 2,938 ADC 106 - 6 112 89,990 90,102 269 Home equity/2nds 34 - 2,174 2,208 16,921 19,129 2,914 Consumer 4 - - 4 1,206 1,210 - $ 1,616 $ 2,245 $ 3,659 $ 7,520 $ 602,758 $ 610,278 $ 9,852
Summary of impaired loans	The following tables summarize impaired loans as of and for the years ended December 31: 2017 2016 Unpaid Principal Balance Recorded Investment Related Allowance Unpaid Principal Balance Recorded Investment Related Allowance With no related Allowance: (dollars in thousands) Residential mortgage $ 12,929 $ 11,572 $ - $ 9,854 $ 9,338 $ - Commercial - - - - - - Commercial real estate 1,562 1,507 - 3,900 3,698 - ADC 636 636 - 441 441 - Home equity/2nds - - - 2,139 1,529 - Consumer - - - - - - With a related Allowance: Residential mortgage 6,761 6,647 1,181 11,176 11,065 1,703 Commercial - - - 148 148 15 Commercial real estate 1,410 1,410 182 1,958 1,958 196 ADC 392 355 48 417 417 53 Home equity/2nds - - - 1,608 1,608 402 Consumer 84 84 2 96 96 4 Totals: Residential mortgage 19,690 18,219 1,181 21,030 20,403 1,703 Commercial - - - 148 148 15 Commercial real estate 2,972 2,917 182 5,858 5,656 196 ADC 1,028 991 48 858 858 53 Home equity/2nds - - - 3,747 3,137 402 Consumer 84 84 2 96 96 4 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related Allowance: (dollars in thousands) Residential mortgage $ 10,072 $ 504 $ 12,747 $ 521 Commercial - 44 145 2 Commercial real estate 2,423 70 4,021 187 ADC 516 29 1,234 36 Home equity/2nds 543 46 1,889 75 Consumer - - 17 - With a related Allowance: Residential mortgage 8,714 294 10,785 463 Commercial 30 - 174 8 Commercial real estate 1,817 73 2,020 100 ADC 379 22 489 26 Home equity/2nds 572 1 679 7 Consumer 90 2 79 2 Totals: Residential mortgage 18,786 798 23,532 984 Commercial 30 44 319 10 Commercial real estate 4,240 143 6,041 287 ADC 895 51 1,723 62 Home equity/2nds 1,115 47 2,568 82 Consumer 90 2 96 2
Loans modified as TDRs	The following table presents loans that were modified during the years ended December 31: 2017 2016 Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification Number of Modifications Recorded Investment Prior to Modification Recorded Investment After Modification (dollars in thousands) Residential Mortgage $ - $ - $ - 3 $ 624 $ 624 $ - $ - $ - 3 $ 624 $ 624
Methods used to account for interest on TDRs	Interest on our portfolio of TDRs was accounted for under the following methods as of December 31: 2017 Number of Modifications Accrual Status Number of Modifications Nonaccrual Status Total Number of Modifications Total Balance of Modifications (dollars in thousands) Residential mortgage 41 $ 11,404 2 $ 736 43 $ 12,140 Commercial real estate 3 1,862 1 78 4 1,940 ADC 1 137 1 6 2 143 Home equity/2nds 1 227 - - 1 227 Consumer 4 84 - - 4 84 50 $ 13,714 4 $ 820 54 $ 14,534 2016 Number of Modifications Accrual Status Number of Modifications Nonaccrual Status Total Number of Modifications Total Balance of Modifications (dollars in thousands) Residential mortgage 47 $ 15,648 4 $ 2,137 51 $ 17,785 Commercial real estate 3 1,914 2 249 5 2,163 ADC 2 170 1 6 3 176 Home equity/2nds 1 238 - - 1 238 Consumer 5 96 - - 5 96 58 $ 18,066 7 $ 2,392 65 $ 20,458

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Premises and Equipment [Abstract]
Summary of premises and equipment by major classification	Premises and equipment are summarized by major classification as follows: 2017 2016 (dollars in thousands) Land $ 1,537 $ 1,537 Building 29,500 29,545 Leasehold improvements 2,485 2,202 Furniture, fixtures, and equipment 2,868 2,718 Total, at cost 36,390 36,002 Less: Accumulated depreciation and amortization (13,251 ) (11,972 ) Net premises and equipment $ 23,139 $ 24,030
Minimum future annual rental payments on leases	Our minimum lease payments due for each of the next five years are as follows Years Ended December 31, (in thousands) 2018 $ 225 2019 225 2020 185 2021 135 2022 115 Thereafter 417 $ 1,302
Minimum future annual rental income from leases	Our minimum future annual rental income on leases is as follows: Years Ended December 31, (in thousands) 2018 $ 1,006 2019 1,006 2020 767 2021 515 2022 244 Thereafter 244 $ 3,782

Goodwill and Other Intangible32

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Other Intangible Assets [Abstract]
Schedule of Goodwill	Our goodwill relates to the acquisition of Louis Hyatt, Inc. and Mid-Maryland Title Company, Inc. (acquired in 2017) as follows as of and for the years ended December 31, (dollars in thousands) 2017 2016 Louis Hyatt Mid-Md. Total Louis Hyatt Beginning balance $ 334 $ - $ 334 $ 334 Goodwill acquired - 765 765 - Ending balance $ 334 $ 765 $ 1,099 $ 334

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2017
Deposits [Abstract]
Schedule of deposits in the bank	Deposits are summarized as follows as of December 31: 2017 2016 (dollars in thousands) NOW $ 63,616 10.6 % $ 63,137 11.0 % Money market 103,649 17.2 % 66,356 11.6 % Savings 98,717 16.4 % 110,492 19.3 % Certificates of deposit 263,413 43.7 % 273,816 47.9 % Total interest-bearing deposits 529,395 87.9 % 513,801 89.8 % Noninterest-bearing deposits 72,833 12.1 % 58,145 10.2 % Total deposits $ 602,228 100.0 % $ 571,946 100.0 %
Scheduled of maturities of certificates of deposit	Scheduled maturities of certificates of deposit were as follows as of December 31: 2017 2016 One year or less 137,357 169,331 Greater than one year to two years 43,020 40,388 Greater than two years to three years 33,791 16,120 Greater than three years to four years 34,680 25,861 Greater than four years to five years 14,565 21,121 Greater than five years - 995 263,413 273,816

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2017
Borrowings [Abstract]
Schedule of borrowings	Certain information regarding our borrowings is as follows as of December 31: 2017 2016 Amount outstanding at year-end: (dollars in thousands) FHLB advances $ 85,000 $ 100,000 Commercial note payable 3,500 3,500 Weighted-average interest rate at year-end: FHLB advances 2.40 % 3.30 % Commercial note payable 4.25 % 4.25 % Maximum outstanding at any month-end: FHLB advances $ 169,950 $ 125,000 Commercial note payable 3,500 3,500 Average outstanding: FHLB advances $ 91,456 $ 117,418 Commercial note payable 3,500 3,500 Weighted-average interest rate during the year: FHLB advances 3.03 % 3.10 % Commercial note payable 5.04 % 4.37 %
Maturities of long-term advances	The following table sets forth information concerning the interest rates and maturity dates of the advances from the FHLB as of December 31, 2017: Principal Amount (in thousands) Rate Maturity $ 15,000 2.58% to 3.43% 2018 35,000 1.55% to 4.00% 2019 25,000 1.75% to 1.92% 2020 10,000 2.19% 2022 $ 85,000

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2017
Regulatory Matters [Abstract]
Bank's actual capital amounts and ratios	Our regulatory capital amounts and ratios were as follows: Minimum Minimum To be Well Actual Requirements for Capital Adequacy Requirements with Capital Capitalized Under Prompt Corrective Purposes Conservation Buffer Action Provision Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 (dollars in thousands) Common Equity Tier 1 Capital (to risk-weighted assets) $ 105,721 16.5 % $ 28,904 4.5 % $ 36,933 5.8 % $ 41,750 6.5 % Total capital (to risk-weighted assets) 113,758 17.7 % 51,385 8.0 % 59,414 9.3 % 64,231 10.0 % Tier 1 capital (to risk-weighted assets) 105,721 16.5 % 38,539 6.0 % 46,567 7.3 % 51,385 8.0 % Tier 1 capital (to average quarterly assets) 105,721 13.5 % 31,440 4.0 % 41,264 5.3 % 39,300 5.0 % December 31, 2016 Common Equity Tier 1 Capital (to risk-weighted assets) $ 98,970 16.5 % $ 26,983 4.5 % $ 30,730 5.1 % $ 38,975 6.5 % Total capital (to risk-weighted assets) 106,517 17.8 % 47,969 8.0 % 51,717 8.6 % 59,962 10.0 % Tier 1 capital (to risk-weighted assets) 98,970 16.5 % 35,977 6.0 % 39,725 6.6 % 47,969 8.0 % Tier 1 capital (to average quarterly assets) 98,970 12.9 % 30,634 4.0 % 35,420 4.6 % 38,292 5.0 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Earnings per share reconciliation	Information relating to the calculations of our income per common share is summarized as follows for the years ended December 31: 2017 2016 (dollars in thousands, except for per share data) Weighted-average shares outstanding - basic 12,160,983 11,522,333 Dilution 116,753 52,559 Weighted-average share outstanding - diluted 12,277,736 11,574,892 Net income available to common stockholders $ 2,538 $ 13,318 Net income per share - basic $ 0.21 $ 1.16 Net income per share - diluted $ 0.21 $ 1.15

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2017
Stock-Based Compensation [Abstract]
Information regarding stock-based compensation plan	Information regarding our stock-based compensation plan is as follows as of and for the years ended December 31: 2017 2016 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 339,500 $ 5.31 339,800 $ 4.83 Granted 115,800 7.22 74,000 6.98 Exercised (2,161 ) 3.37 (18,800 ) 3.96 Forfeited (18,864 ) 4.59 (55,500 ) 5.08 Outstanding at end of period 434,275 $ 5.87 6.7 $ 619 339,500 $ 5.31 4.9 $ 878 Exercisable at end of period 191,395 $ 4.85 6.3 $ 477 138,066 $ 4.48 1.9 $ 473
Stock options valuation assumptions	The following weighted average assumptions were used to value options granted for the years ended December 31: 2017 2016 Expected life 5.5 years 5.5 years Risk-free interest rate 2.15 % 1.77 % Expected volatility 33.79 % 58.32 % Expected dividend yield - - Weighted average per share fair value of options granted $ 2.44 $ 3.55

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes [Abstract]
Summary of income tax expense (benefit)	Our income tax expense (benefit) consists of the following for the years ended December 31: 2017 2016 (dollars in thousands) Current $ 228 $ 67 Deferred 4,794 (10,081 ) Income tax expense $ 5,022 $ (10,014 )
Summary of income tax expense (benefit) reconciliation	The income tax expense (benefit) is reconciled to the amount computed by applying the federal corporate tax rate of 34% to the net income before taxes as follows for the years ended December 31: 2017 2016 Amount Rate Amount Rate (dollars in thousands) Tax at statutory federal rate $ 2,666 34.0 % $ 1,879 34.0 % Change in valuation allowance - - (12,485 ) (225.9 )% Adjustment for rate change 1,887 24.1 % - - State tax net of Federal income tax benefit 616 7.9 % 323 5.8 % Other adjustments (147 ) (1.9 )% 269 4.9 % $ 5,022 64.1 % $ (10,014 ) (181.2 )%
Summary of deferred tax assets and deferred tax liabilities	The tax effects of temporary differences between the financial reporting basis and income tax basis of assets and liabilities relate to the following at December 31: 2017 2016 Deferred tax assets: (dollars in thousands) Net operating loss carryforward $ 3,446 $ 7,148 Allowance 3,201 4,636 Reserve on real estate acquired through foreclosure 135 161 Reserve for uncollected interest 108 433 Reserve for contingent liability 31 56 Charitable contributions 127 297 Unrealized losses on AFS securities 15 - AMT 351 192 Total gross deferred tax assets 7,414 12,923 Deferred tax liabilities: FHLB stock dividends 61 82 Loan origination costs 534 801 Accelerated depreciation 1,122 1,473 Prepaid expenses 239 264 MSRs 140 220 Other 16 2 Total gross deferred tax liabilities 2,112 2,842 Net deferred tax assets $ 5,302 $ 10,081

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies [Abstract]
Contract amounts for off-balance sheet instruments	The following table shows the contract amounts for our off-balance sheet instruments as of December 31: 2017 2016 (dollars in thousands) Standby letters of credit $ 3,480 $ 4,022 Home equity lines of credit 13,321 7,736 Unadvanced construction commitments 74,720 15,728 Mortgage loan commitments 595 574 Lines of credit 16,612 34,125 Loans sold and serviced with limited repurchase provisions 21,409 70,773

Fair Value of Financial Instr40

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value of Financial Instruments [Abstract]
Fair value measurements for assets on a recurring basis	The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2017: Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Changes In Fair Values Included In Period Income Assets: (dollars in thousands) AFS Securities - U.S. government agency notes $ 10,119 $ - $ 10,119 $ - $ - LHFS 4,530 - 4,530 - 131 MSRs 477 - - 477 (80 ) IRLCs 22 - 22 - (140 ) Mandatory forward contracts 13 - 13 - (140 ) Best efforts forward contracts 3 - 3 - 3 The following tables present fair value measurements for assets and liabilities that are measured at fair value on a recurring basis as of and for the year ended December 31, 2016: Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Changes In Fair Values Included In Period Income Assets: (dollars in thousands) MSRs $ 557 $ - $ - $ 557 $ 66 IRLCs 162 - 162 - (21 ) Mandatory forward contracts 153 - 153 - 42
Assets measured at fair value on a nonrecurring basis utilizing level 3 input	The following table provides additional quantitative information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value: Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted-Average) (dollars in thousands) December 31, 2017: MSRs $ 477 Market Approach Weighted average prepayment speed 3.94 % December 31, 2016: MSRs $ 557 Market Approach Weighted average prepayment speed 3.95 % The activity in MSRs was as follows for the years ended December 31: 2017 2016 Beginning balance $ 557 $ 623 Valuation adjustment $ (80 ) $ (66 ) Ending balance $ 477 $ 557 For assets measured at fair value on a nonrecurring basis, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of assets as of December 31: 2017 Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Range of Discount Weighted Average (dollars in thousands) Impaired loans $ 2,793 $ - $ - $ 2,793 0% - 33 % 14.5 % Real estate acquired through foreclosure 178 - - 178 0% - 22 % 11.5 % 2016 Carrying Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Range of Discount Weighted Average (dollars in thousands) Impaired loans $ 2,136 $ - $ - $ 2,136 0% - 2 % 2.0 % Real estate acquired through foreclosure 767 - - 767 0% - 10 % 10.0 %
Estimated fair values of financial instruments	The carrying value and estimated fair value of all financial instruments are summarized in the following tables. The descriptions of the fair value calculations for AFS securities, LHFS, MSRs, IRLCs, best efforts forward contracts, mandatory forward contracts, impaired loans, and real estate acquired through foreclosure are included in the discussions above. December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 21,853 $ 21,853 $ - $ - $ 21,853 Certificates of deposits held as investment 8,780 8,780 - - 8,780 AFS securities 10,119 - 10,119 - 10,119 HTM securities 54,303 5,056 48,948 - 54,004 LHFS 4,530 - 4,530 - 4,530 Loans receivable 660,096 - - 672,349 672,349 Restricted stock investments 4,489 - 4,489 - 4,489 Accrued interest receivable 2,640 - 2,640 - 2,640 MSRs 477 - - 477 477 IRLCs 22 - 22 - 22 Mandatory forward contracts 13 - 13 - 13 Best effort forward contracts 3 - 3 - 3 Liabilities: Deposits 602,228 - 594,659 - 594,659 Accrued interest payable 395 - 395 - 395 Borrowings 88,500 - 81,303 - 81,303 Subordinated debentures 20,619 - - 20,619 20,619 December 31, 2016 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: (dollars in thousands) Cash and cash equivalents $ 67,014 $ 67,014 $ - $ - $ 67,014 Certificates of deposit held as investment 100 100 - - 100 HTM securities 62,757 13,165 49,662 - 62,827 LHFS 10,307 - 10,313 - 10,313 Loans receivable 601,309 - - 602,953 602,953 Restricted stock investments 5,103 - 5,103 - 5,103 Accrued interest receivable 2,249 - 2,249 - 2,249 MSRs 557 - - 557 557 IRLCs 162 - 162 - 162 Mandatory forward contracts 153 - 153 - 153 Liabilities: Deposits 571,946 - 572,556 - 572,556 Accrued interest payable 538 - 538 - 538 Borrowings 103,500 - 97,961 - 97,961 Subordinated debentures 20,619 - - 20,619 20,619

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Related party loan activity	Transactions in related party loans were as follows for the years ended December 31: 2017 2016 (dollars in thousands) Beginning Balance $ 3,060 $ 3,186 Additions 3,667 133 Repayments (272 ) (259 ) $ 6,455 $ 3,060

Parent Company Financial Stat42

Parent Company Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2017
Parent Company Financial Statements [Abstract]
Summary of financial position, result of operation and cash flows	The following is financial information of Severn Bancorp (parent company only): Statements of Financial Condition December 31, 2017 2016 ASSETS (dollars in thousands) Cash $ 1,310 $ 2,012 Equity in net assets of subsidiaries: Bank 108,735 105,898 Nonbank 3,886 3,014 Other assets 1,421 1,265 Total assets $ 115,352 $ 112,189 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Subordinated debentures $ 20,619 $ 20,619 Other liabilities 3,633 3,640 Total liabilities 24,252 24,259 Stockholders’ Equity 91,100 87,930 Total liabilities and stockholders’ equity $ 115,352 $ 112,189 Statements of Operations Years Ended December 31, 2017 2016 (dollars in thousands) Interest income $ - $ - Interest expense on subordinated debentures 824 973 Net interest expense (824 ) (973 ) General and administrative expenses 218 229 Loss before income taxes and equity in undistributed net income of subsidiaries (1,042 ) (1,202 ) Income tax benefit (71 ) (1,004 ) Equity in undistributed net income of subsidiaries 3,789 15,738 Net income $ 2,818 $ 15,540 Statements of Cash Flows Years Ended December 31, 2017 2016 Cash flows from operating activities: (dollars in thousands) Net income $ 2,818 $ 15,540 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (3,789 ) (15,738 ) Stock-based compensation 205 184 Deferred income taxes (718 ) (531 ) Decrease in other assets 562 178 Decrease in accrued expenses and other liabilities (7 ) (1,965 ) Net cash used in operating activities (929 ) (2,332 ) Cash flows from investing activities: Contributions from subsidiaries 820 24,000 Net cash provided by investing activities 820 24,000 Cash flows from financing activities: Preferred stock dividends (280 ) (7,840 ) Repurchase of warrant (520 ) - Stock redemption of Series B preferred stock - (23,393 ) Proceeds from common stock issuance 207 10,584 Net cash used in financing activities (593 ) (20,649 ) (Decrease) increase in cash and cash equivalents (702 ) 1,019 Cash and cash equivalents at beginning of period 2,012 993 Cash and cash equivalents at end of period $ 1,310 $ 2,012

Summary of Significant Accoun43

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Sep. 01, 2017USD ($)shares	Dec. 31, 2017USD ($)ReportingUnit$ / shares	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Value of shares issued in acquisition		$ 775
Goodwill		1,099	$ 334
Certificates of Deposit Held for Investment [Abstract]
Deposit limit with other financial institutions		$ 250
Loans Receivable [Abstract]
Maximum percentage of lending of appraised value of property		80.00%
Restricted Stock Investments [Abstract]
FHLB stock (in dollars per share) | $ / shares		$ 100
Goodwill and Other Intangible Assets [Abstract]
Number of reporting units | ReportingUnit		1
Advertising Costs [Abstract]
Advertising expenses		$ 788	703
Mid-Maryland Title Company [Member]
Business Acquisition [Line Items]
Stock issued in a business combination (in shares) | shares	108,084
Value of shares issued in acquisition	$ 775
Goodwill	$ 765	$ 765	$ 0

Correction of an Immaterial P44

Correction of an Immaterial Prior Year Error (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Net income available to common stockholders	$ 2,538,000	$ 13,318,000
Prior Year Adjustment [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Net income available to common stockholders		13,800,000
Prior Year Adjustment [Member] | Series B Preferred Stock [Member]
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Discount on redemption of series B preferred stock		$ 511,000

Securities (Details)

Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Amortized cost and fair value of investment securities Available-for-sale [Abstract]
Amortized Cost	$ 10,169
Estimated Fair Value	10,119	$ 0
Amortized cost and fair value of investment securities held to maturity [Abstract]
Amortized Cost	54,303	62,757
Unrealized Gains	176	352
Unrealized Losses	475	282
Estimated Fair Value	54,004	62,827
Fair Value [Abstract]
Less than 12 Months, Fair Value	29,963	28,459
12 Months or More, Fair Value	14,010	0
Total, Fair Value	43,973	28,459
Unrealized Losses [Abstract]
Less than 12 Months, Unrealized Losses	246	282
12 Months or More, Unrealized Losses	229	0
Total, Unrealized Losses	475	282
Available for sale securities, fair value less than 12 months	10,000
Amortized Cost [Abstract]
Due in one year or less	0
Due after one through five years	10,169
Due after five years through ten years	0
Mortgage-backed securities	0
Amortized Cost	10,169
Estimated Fair Value [Abstract]
Due in one year or less	0
Due after one through five years	10,119
Due after five years through ten years	0
Mortgage-backed securities	0
Fair Value	10,119	0
Amortized Cost [Abstract]
Due in one year or less	10,011
Due after one through five years	12,020
Due after five years through ten years	1,967
Mortgage-backed securities	30,305
Amortized Cost	54,303	62,757
Estimated Fair Value [Abstract]
Due in one year or less	10,008
Due after one through five years	11,990
Due after five years through ten years	2,044
Mortgage-backed securities	29,962
Fair Value	54,004	62,827
Securities pledged as collateral	0	0
U.S. Treasury Securities [Member]
Amortized cost and fair value of investment securities held to maturity [Abstract]
Amortized Cost	4,994	12,998
Unrealized Gains	68	167
Unrealized Losses	6	0
Estimated Fair Value	5,056	13,165
Fair Value [Abstract]
Less than 12 Months, Fair Value	1,993
12 Months or More, Fair Value	0
Total, Fair Value	1,993
Unrealized Losses [Abstract]
Less than 12 Months, Unrealized Losses	6
12 Months or More, Unrealized Losses	0
Total, Unrealized Losses	6
Amortized Cost [Abstract]
Amortized Cost	4,994	12,998
Estimated Fair Value [Abstract]
Fair Value	5,056	13,165
U.S. Government Agency Notes [Member]
Amortized cost and fair value of investment securities Available-for-sale [Abstract]
Amortized Cost	10,169
Unrealized Gains	0
Unrealized Losses	50
Estimated Fair Value	10,119
Amortized cost and fair value of investment securities held to maturity [Abstract]
Amortized Cost	19,004	20,027
Unrealized Gains	81	133
Unrealized Losses	99	54
Estimated Fair Value	18,986	20,106
Fair Value [Abstract]
Less than 12 Months, Fair Value	6,977	5,002
12 Months or More, Fair Value	6,964	0
Total, Fair Value	13,941	5,002
Unrealized Losses [Abstract]
Less than 12 Months, Unrealized Losses	23	54
12 Months or More, Unrealized Losses	76	0
Total, Unrealized Losses	99	54
Amortized Cost [Abstract]
Amortized Cost	10,169
Estimated Fair Value [Abstract]
Fair Value	10,119
Amortized Cost [Abstract]
Amortized Cost	19,004	20,027
Estimated Fair Value [Abstract]
Fair Value	18,986	20,106
Mortgage-backed Securities [Member]
Amortized cost and fair value of investment securities held to maturity [Abstract]
Amortized Cost	30,305	29,732
Unrealized Gains	27	52
Unrealized Losses	370	228
Estimated Fair Value	29,962	29,556
Fair Value [Abstract]
Less than 12 Months, Fair Value	20,993	23,457
12 Months or More, Fair Value	7,046	0
Total, Fair Value	28,039	23,457
Unrealized Losses [Abstract]
Less than 12 Months, Unrealized Losses	217	228
12 Months or More, Unrealized Losses	153	0
Total, Unrealized Losses	370	228
Amortized Cost [Abstract]
Amortized Cost	30,305	29,732
Estimated Fair Value [Abstract]
Fair Value	$ 29,962	$ 29,556

Loans Receivable and Allowanc46

Loans Receivable and Allowance for Loan Losses, Summary of Loans Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Summary of loans receivable [Abstract]
Total loans receivable	$ 671,161	$ 613,222
Unearned loan fees	(3,010)	(2,944)
Net loans receivable	668,151	610,278
Loans pledged as collateral	196,900
Federal National Mortgage Association [Member]
Summary of loans receivable [Abstract]
Mortgage loans serviced	33,500
Federal Home Loan Mortgage Corporation [Member]
Summary of loans receivable [Abstract]
Mortgage loans serviced	16,000
Residential Mortgage [Member]
Summary of loans receivable [Abstract]
Total loans receivable	287,656	260,603
Net loans receivable	$ 284,646	257,659
Loan to value ratio	80.00%
Commercial [Member]
Summary of loans receivable [Abstract]
Total loans receivable	$ 37,356	46,468
Net loans receivable	37,356	46,468
Commercial Real Estate [Member]
Summary of loans receivable [Abstract]
Total loans receivable	236,302	195,710
Net loans receivable	236,302	195,710
Construction, Land Acquisition and Development [Member]
Summary of loans receivable [Abstract]
Total loans receivable	93,060	90,102
Net loans receivable	93,060	90,102
Home Equity/2nds[Member]
Summary of loans receivable [Abstract]
Total loans receivable	15,703	19,129
Net loans receivable	15,703	19,129
Consumer [Member]
Summary of loans receivable [Abstract]
Total loans receivable	1,084	1,210
Net loans receivable	$ 1,084	$ 1,210

Loans Receivable and Allowanc47

Loans Receivable and Allowance for Loan Losses, Changes in Allowance For Loan Losses and Recorded Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Summary of allowance for loan losses [Abstract]
Beginning Balance	$ 8,969	$ 8,758
Charge-offs	(826)	(468)
Recoveries	562	1,029
Net (charge-offs) recoveries	(264)	561
(Reversal of) provision for loan losses	(650)	(350)
Ending Balance	8,055	8,969
Ending balance - individually evaluated for impairment			$ 1,413	$ 2,373
Ending balance - collectively evaluated for impairment			6,642	6,596
Ending balance	8,969	8,969	8,055	8,969
Ending loan balance - individually evaluated for impairment			22,211	30,298
Ending loan balance - collectively evaluated for impairment			645,940	579,980
Ending loan balance			668,151	610,278
Residential Mortgage [Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	3,833	4,188
Charge-offs	(726)	(151)
Recoveries	375	324
Net (charge-offs) recoveries	(351)	173
(Reversal of) provision for loan losses	(383)	(528)
Ending Balance	3,099	3,833
Ending balance - individually evaluated for impairment			1,181	1,703
Ending balance - collectively evaluated for impairment			1,918	2,130
Ending balance	3,833	3,833	3,099	3,833
Ending loan balance - individually evaluated for impairment			18,219	20,403
Ending loan balance - collectively evaluated for impairment			266,427	237,256
Ending loan balance			284,646	257,659
Commercial [Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	478	291
Charge-offs	0	(17)
Recoveries	0	54
Net (charge-offs) recoveries	0	37
(Reversal of) provision for loan losses	49	150
Ending Balance	527	478
Ending balance - individually evaluated for impairment			0	15
Ending balance - collectively evaluated for impairment			527	463
Ending balance	478	478	527	478
Ending loan balance - individually evaluated for impairment			0	148
Ending loan balance - collectively evaluated for impairment			37,356	46,320
Ending loan balance			37,356	46,468
Commercial Real Estate [Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	2,535	2,792
Charge-offs	0	(178)
Recoveries	157	23
Net (charge-offs) recoveries	157	(155)
(Reversal of) provision for loan losses	113	(102)
Ending Balance	2,805	2,535
Ending balance - individually evaluated for impairment			182	196
Ending balance - collectively evaluated for impairment			2,623	2,339
Ending balance	2,535	2,535	2,805	2,535
Ending loan balance - individually evaluated for impairment			2,917	5,656
Ending loan balance - collectively evaluated for impairment			233,385	190,054
Ending loan balance			236,302	195,710
ADC [Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	1,390	956
Charge-offs	0	(72)
Recoveries	0	157
Net (charge-offs) recoveries	0	85
(Reversal of) provision for loan losses	(154)	349
Ending Balance	1,236	1,390
Ending balance - individually evaluated for impairment			48	53
Ending balance - collectively evaluated for impairment			1,188	1,337
Ending balance	1,390	1,390	1,236	1,390
Ending loan balance - individually evaluated for impairment			991	858
Ending loan balance - collectively evaluated for impairment			92,069	89,244
Ending loan balance			93,060	90,102
Home Equity/2nds[Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	728	528
Charge-offs	(98)	(50)
Recoveries	30	421
Net (charge-offs) recoveries	(68)	371
(Reversal of) provision for loan losses	(274)	(171)
Ending Balance	386	728
Ending balance - individually evaluated for impairment			0	402
Ending balance - collectively evaluated for impairment			386	326
Ending balance	728	528	386	728
Ending loan balance - individually evaluated for impairment			0	3,137
Ending loan balance - collectively evaluated for impairment			15,703	15,992
Ending loan balance			15,703	19,129
Consumer [Member]
Summary of allowance for loan losses [Abstract]
Beginning Balance	5	3
Charge-offs	(2)	0
Recoveries	0	50
Net (charge-offs) recoveries	(2)	50
(Reversal of) provision for loan losses	(1)	(48)
Ending Balance	2	5
Ending balance - individually evaluated for impairment			2	4
Ending balance - collectively evaluated for impairment			0	1
Ending balance	$ 5	$ 3	2	5
Ending loan balance - individually evaluated for impairment			84	96
Ending loan balance - collectively evaluated for impairment			1,000	1,114
Ending loan balance			$ 1,084	$ 1,210

Loans Receivable and Allowanc48

Loans Receivable and Allowance for Loan Losses, Credit Quality Breakdown of Loan Portfolio by Class (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	$ 668,151	$ 610,278
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	651,261	586,240
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	6,687	12,412
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	10,203	11,626
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	284,646	257,659
Residential Mortgage [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	277,867	248,819
Residential Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	1,563	4,316
Residential Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	5,216	4,524
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	37,356	46,468
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	37,312	46,011
Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	44	204
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	0	253
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	236,302	195,710
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	228,746	184,820
Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	4,615	7,420
Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	2,941	3,470
ADC [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	93,060	90,102
ADC [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	91,868	89,324
ADC [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	0	0
ADC [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	1,192	778
Home Equity/2nds[Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	15,703	19,129
Home Equity/2nds[Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	14,384	16,056
Home Equity/2nds[Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	465	472
Home Equity/2nds[Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	854	2,601
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	1,084	1,210
Consumer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	1,084	1,210
Consumer [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	0	0
Consumer [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans (change)	$ 0	$ 0

Loans Receivable and Allowanc49

Loans Receivable and Allowance for Loan Losses, Classes of Loan Portfolio by Aging Categories of Performing and Nonaccrual Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	$ 1,954	$ 7,520
Current	666,197	602,758
Net loans receivable	668,151	610,278
Non-Accrual	5,710	9,852
Loans in nonaccrual status	688	933
Actual interest income recorded on nonaccrual loans	282	427
30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	1,954	1,616
60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	2,245
90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	3,659
Residential Mortgage [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	1,006	4,510
Current	283,640	253,149
Net loans receivable	284,646	257,659
Non-Accrual	3,891	3,580
Residential Mortgage [Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	1,006	1,472
Residential Mortgage [Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	2,074
Residential Mortgage [Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	964
Commercial [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Current	37,356	46,468
Net loans receivable	37,356	46,468
Non-Accrual	78	151
Commercial [Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Commercial [Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Commercial [Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Commercial Real Estate [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	948	686
Current	235,354	195,024
Net loans receivable	236,302	195,710
Non-Accrual	159	2,938
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	948	0
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	171
Commercial Real Estate [Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	515
ADC [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	112
Current	93,060	89,990
Net loans receivable	93,060	90,102
Non-Accrual	314	269
ADC [Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	106
ADC [Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
ADC [Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	6
Home Equity/2nds[Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	2,208
Current	15,703	16,921
Net loans receivable	15,703	19,129
Non-Accrual	1,268	2,914
Home Equity/2nds[Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	34
Home Equity/2nds[Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Home Equity/2nds[Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	2,174
Consumer [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	4
Current	1,084	1,206
Net loans receivable	1,084	1,210
Non-Accrual	0	0
Consumer [Member] | 30-59 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	4
Consumer [Member] | 60-89 Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	0	0
Consumer [Member] | 90+ Days Past Due [Member]
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract]
Total Past Due	$ 0	$ 0

Loans Receivable and Allowanc50

Loans Receivable and Allowance for Loan Losses, Summary of Impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Interest income recognized [Abstract]
Real estate acquired through foreclosure	$ 403	$ 973
Residential Mortgage [Member]
Unpaid principal balance [Abstract]
With no related allowance	12,929	9,854
With a related allowance	6,761	11,176
Total	19,690	21,030
Recorded investment [Abstract]
With no related allowance	11,572	9,338
With a related allowance	6,647	11,065
Total	18,219	20,403
Related allowance	1,181	1,703
Average recorded investment [Abstract]
With no related allowance	10,072	12,747
With a related allowance	8,714	10,785
Total	18,786	23,532
Interest income recognized [Abstract]
With no related allowance	504	521
With a related allowance	294	463
Total	798	984
Commercial [Member]
Unpaid principal balance [Abstract]
With no related allowance	0	0
With a related allowance	0	148
Total	0	148
Recorded investment [Abstract]
With no related allowance	0	0
With a related allowance	0	148
Total	0	148
Related allowance	0	15
Average recorded investment [Abstract]
With no related allowance	0	145
With a related allowance	30	174
Total	30	319
Interest income recognized [Abstract]
With no related allowance	44	2
With a related allowance	0	8
Total	44	10
Commercial Real Estate [Member]
Unpaid principal balance [Abstract]
With no related allowance	1,562	3,900
With a related allowance	1,410	1,958
Total	2,972	5,858
Recorded investment [Abstract]
With no related allowance	1,507	3,698
With a related allowance	1,410	1,958
Total	2,917	5,656
Related allowance	182	196
Average recorded investment [Abstract]
With no related allowance	2,423	4,021
With a related allowance	1,817	2,020
Total	4,240	6,041
Interest income recognized [Abstract]
With no related allowance	70	187
With a related allowance	73	100
Total	143	287
ADC [Member]
Unpaid principal balance [Abstract]
With no related allowance	636	441
With a related allowance	392	417
Total	1,028	858
Recorded investment [Abstract]
With no related allowance	636	441
With a related allowance	355	417
Total	991	858
Related allowance	48	53
Average recorded investment [Abstract]
With no related allowance	516	1,234
With a related allowance	379	489
Total	895	1,723
Interest income recognized [Abstract]
With no related allowance	29	36
With a related allowance	22	26
Total	51	62
Home Equity/2nds[Member]
Unpaid principal balance [Abstract]
With no related allowance	0	2,139
With a related allowance	0	1,608
Total	0	3,747
Recorded investment [Abstract]
With no related allowance	0	1,529
With a related allowance	0	1,608
Total	0	3,137
Related allowance	0	402
Average recorded investment [Abstract]
With no related allowance	543	1,889
With a related allowance	572	679
Total	1,115	2,568
Interest income recognized [Abstract]
With no related allowance	46	75
With a related allowance	1	7
Total	47	82
Consumer [Member]
Unpaid principal balance [Abstract]
With no related allowance	0	0
With a related allowance	84	96
Total	84	96
Recorded investment [Abstract]
With no related allowance	0	0
With a related allowance	84	96
Total	84	96
Related allowance	2	4
Average recorded investment [Abstract]
With no related allowance	0	17
With a related allowance	90	79
Total	90	96
Interest income recognized [Abstract]
With no related allowance	0	0
With a related allowance	2	2
Total	2	2
Real estate acquired through foreclosure	0	$ 206
Residential mortgage loans secured by residential real estate properties in formal foreclosure proceedings	$ 3,100

Loans Receivable and Allowanc51

Loans Receivable and Allowance for Loan Losses, Loans modified as TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Contract	Dec. 31, 2016USD ($)Contract
Loans modified [Abstract]
Number of modifications | Contract	0	3
Recorded investment prior to modification	$ 0	$ 624
Recorded investment after modification	$ 0	$ 624
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	50	58
Accrual status	$ 13,714	$ 18,066
Number of modifications | Contract	4	7
Nonaccrual status	$ 820	$ 2,392
Total number of modifications | Contract	54	65
Total balance of modifications	$ 14,534	$ 20,458
Number of contract, subsequent defaults | Contract	0	0
Residential Mortgage [Member]
Loans modified [Abstract]
Number of modifications | Contract	0	3
Recorded investment prior to modification	$ 0	$ 624
Recorded investment after modification	$ 0	$ 624
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	41	47
Accrual status	$ 11,404	$ 15,648
Number of modifications | Contract	2	4
Nonaccrual status	$ 736	$ 2,137
Total number of modifications | Contract	43	51
Total balance of modifications	$ 12,140	$ 17,785
Commercial Real Estate [Member]
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	3	3
Accrual status	$ 1,862	$ 1,914
Number of modifications | Contract	1	2
Nonaccrual status	$ 78	$ 249
Total number of modifications | Contract	4	5
Total balance of modifications	$ 1,940	$ 2,163
ADC [Member]
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	1	2
Accrual status	$ 137	$ 170
Number of modifications | Contract	1	1
Nonaccrual status	$ 6	$ 6
Total number of modifications | Contract	2	3
Total balance of modifications	$ 143	$ 176
Home Equity/2nds[Member]
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	1	1
Accrual status	$ 227	$ 238
Number of modifications | Contract	0	0
Nonaccrual status	$ 0	$ 0
Total number of modifications | Contract	1	1
Total balance of modifications	$ 227	$ 238
Consumer [Member]
TDRs loans accounted under method [Abstract]
Number of modifications | Contract	4	5
Accrual status	$ 84	$ 96
Number of modifications | Contract	0	0
Nonaccrual status	$ 0	$ 0
Total number of modifications | Contract	4	5
Total balance of modifications	$ 84	$ 96

Premises and Equipment (Details

Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2017USD ($)LocationBranch	Dec. 31, 2016USD ($)
Premises and equipment [Abstract]
Total, at cost	$ 36,390,000	$ 36,002,000
Less: Accumulated depreciation and amortization	(13,251,000)	(11,972,000)
Net premises and equipment	23,139,000	24,030,000
Depreciation expense	$ 1,200,000	1,200,000
Period of second lease term	25 years
Minimum future lease payments [Abstract]
2,018	$ 225,000
2,019	225,000
2,020	185,000
2,021	135,000
2,022	115,000
Thereafter	417,000
Total	1,302,000
Minimum future rental income [Abstract]
2,018	1,006,000
2,019	1,006,000
2,020	767,000
2,021	515,000
2,022	244,000
Thereafter	244,000
Total	3,782,000
Rent expense	246,000	175,000
Total gross rental income	$ 994,000	1,000,000
Anne Arundel County, Maryland [Member]
Premises and equipment [Abstract]
Number of retail branch locations | Location	5
Number of retail branch owned | Branch	3
Number of retail branch locations leased | Location	2
Lease expiration date	Jul. 31, 2020
Second lease expiration date	Feb. 28, 2026
Annapolis, Maryland [Member]
Premises and equipment [Abstract]
Lease expiration date	Jan. 31, 2017
Second lease renewal term	5 years
Minimum [Member] | Annapolis, Maryland [Member]
Premises and equipment [Abstract]
Period for which lease term renewed	3 years
Maximum [Member] | Annapolis, Maryland [Member]
Premises and equipment [Abstract]
Period for which lease term renewed	5 years
Land [Member]
Premises and equipment [Abstract]
Total, at cost	$ 1,537,000	1,537,000
Building [Member]
Premises and equipment [Abstract]
Total, at cost	29,500,000	29,545,000
Leasehold Improvements [Member]
Premises and equipment [Abstract]
Total, at cost	2,485,000	2,202,000
Furniture, Fixtures and Equipment [Member]
Premises and equipment [Abstract]
Total, at cost	$ 2,868,000	$ 2,718,000

Goodwill and Other Intangible53

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Beginning balance	$ 334
Goodwill acquired	765
Ending balance	1,099	$ 334
Louis Hyatt [Member]
Goodwill [Roll Forward]
Beginning balance	334	334
Goodwill acquired	0	0
Ending balance	334	334
Mid-Md. [Member]
Goodwill [Roll Forward]
Beginning balance	0
Goodwill acquired	765
Ending balance	$ 765	$ 0

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deposits by category [Abstract]
NOW	$ 63,616	$ 63,137
Money market	103,649	66,356
Savings	98,717	110,492
Certificates of deposit	263,413	273,816
Total interest-bearing deposits	529,395	513,801
Noninterest-bearing deposits	72,833	58,145
Total deposits	$ 602,228	$ 571,946
NOW	10.60%	11.00%
Money market	17.20%	11.60%
Savings	16.40%	19.30%
Certificates of deposit	43.70%	47.90%
Total interest-bearing deposits	87.90%	89.80%
Noninterest-bearing deposits	12.10%	10.20%
Total deposits	100.00%	100.00%
Scheduled maturities of certificates of deposit [Abstract]
One year or less	$ 137,357	$ 169,331
Greater than one year to two years	43,020	40,388
Greater than two years to three years	33,791	16,120
Greater than three years to four years	34,680	25,861
Greater than four years to five years	14,565	21,121
Greater than five years	0	995
Total	263,413	273,816
Certificates of deposit with a minimum denomination of $250,000	$ 51,400	$ 39,100

Borrowings (Details)

Borrowings (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016
Outstanding Borrowings [Abstract]
Long-term Federal Home Loan Bank Advances		$ 88,500,000	$ 103,500,000
Commercial Note Payable [Member]
Debt Instrument [Line Items]
Amount of loan borrowed	$ 3,500,000
Term of loan	8 years
Period of fixed interest rate	36 months
Debt instrument fixed rate	2.75%
Amortization period, FHLB Rate	5 years
Quarterly principal payment	$ 175,000
Debt instrument, prepayment penalty rate	1.00%
Outstanding Borrowings [Abstract]
Long-term Federal Home Loan Bank Advances		$ 3,500,000	$ 3,500,000
Weighted-average interest rate at year-end		4.25%	4.25%
Maximum outstanding at any month-end		$ 3,500,000	$ 3,500,000
Average outstanding		$ 3,500,000	$ 3,500,000
Weighted-average interest rate during the year		5.04%	4.37%
Commercial Note Payable [Member] | Maximum [Member]
Debt Instrument [Line Items]
Additional principal payment	$ 875,000
Commercial Note Payable [Member] | Year One and Two [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment penalty on the floating rate	2.00%
Commercial Note Payable [Member] | From Year Three to Five [Member]
Debt Instrument [Line Items]
Debt instrument, prepayment penalty on the floating rate	1.00%
Commercial Note Payable [Member] | Wall Street Journal Prime plus [Member]
Debt Instrument [Line Items]
Debt instrument variable rate	0.50%
FHLB of Atlanta [Member]
Debt Instrument [Line Items]
Collateral pledge percentage to total assets for all borrowings		30.00%
Credit availability under the FHLB		$ 239,300,000
Outstanding Borrowings [Abstract]
Long-term Federal Home Loan Bank Advances		$ 85,000,000	$ 100,000,000
Weighted-average interest rate at year-end		2.40%	3.30%
Maximum outstanding at any month-end		$ 169,950,000	$ 125,000,000
Average outstanding		$ 91,456,000	$ 117,418,000
Weighted-average interest rate during the year		3.03%	3.10%
Interest rate on maturities of long-term advances [Abstract]
2022 Maturity, Rate		2.19%
Maturities of long-term advances [Abstract]
2018 Maturity, Amount		$ 15,000,000
2019 Maturity, Amount		35,000,000
2020 Maturity, Amount		25,000,000
2022 Maturity, Amount		10,000,000
Long-term advances Maturity, Amount		85,000,000
Fiscal Year Maturity Period [Abstract]
Loans pledged as collateral		$ 196,900,000
FHLB of Atlanta [Member] | Minimum [Member]
Interest rate on maturities of long-term advances [Abstract]
2018 Maturity, Rate		2.58%
2019 Maturity, Rate		1.55%
2020 Maturity, Rate		1.75%
FHLB of Atlanta [Member] | Maximum [Member]
Debt Instrument [Line Items]
Long-term borrowings maturities period		15 years
Interest rate on maturities of long-term advances [Abstract]
2018 Maturity, Rate		3.43%
2019 Maturity, Rate		4.00%
2020 Maturity, Rate		1.92%

Subordinated Debentures (Detail

Subordinated Debentures (Details) $ / shares in Units, $ in Thousands	Nov. 15, 2008USD ($)$ / sharesshares	Sep. 30, 2016USD ($)	Dec. 31, 2017USD ($)Quarter$ / shares	Dec. 31, 2015USD ($)Quarter	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Private placement offering price (per unit) | $ / shares			$ 100
Subordinated note outstanding			$ 20,619		$ 20,619
Series A Preferred Stock [Member]
Debt Instrument [Line Items]
Number of private placement offering | shares	70
Private placement offering price (per unit) | $ / shares	$ 100,000
Gross proceeds of private placement	$ 7,000
Number of shares issued in private placement for each unit (in shares) | shares	6,250
Aggregate preferred stock outstanding	$ 3,500		4		$ 4
Junior Subordinated Debt Securities [Member]
Debt Instrument [Line Items]
Principal amount of debt			$ 20,600
Maturity date			Jan. 7, 2035
Basis spread on variable rate			2.00%
Permitted number of consecutive quarterly interest payment deferment period | Quarter			20
Number of quarters of interest and the cumulative amount of interest in arrears not paid | Quarter				15
Interest on unpaid interest				$ 1,900
Subordinated note outstanding	3,500
Payment for subordinated notes outstanding		$ 3,500
Annual interest rate on subordinated notes		8.00%
Subordinated Note, original principal amount	$ 50
Junior Subordinated Debt Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Term of variable rate			3 months
Severn Capital Trust I [Member]
Debt Instrument [Line Items]
Common equity owned			100.00%

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
401 (k) Retirement Savings Plan [Abstract]
Employer matching contribution	50.00%
Maximum percentage of employee's annual salary	6.00%
Eligible service period to participate in plan	1 year
Bank's contribution to employee benefit plans	$ 139	$ 142
Employee Stock Ownership Plan ("ESOP") [Abstract]
Recognized ESOP expense	$ 140	$ 140
Allocated shares (in shares)	530,138	522,139
Unallocated shares (in shares)	10,000	20,000
Fair value of the unallocated shares	$ 73

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Common Equity Tier 1 Capital (to risk-weighted assets) [Abstract]
Common Equity Tier I Capital Actual, Amount	$ 105,721	$ 98,970
Common Equity Tier I Capital, Ratio	16.50%	16.50%
Common Equity Tier I Capital for Capital Adequacy Purposes, Amount	$ 28,904	$ 26,983
Common Equity Tier I Capital for Capital Adequacy Purposes, Ratio	4.50%	4.50%
Common Equity Tier 1 Capital with Capital Conservation Buffer, Amount	$ 36,933	$ 30,730
Common Equity Tier 1 Capital with Capital Conservation Buffer, Ratio	5.80%	5.10%
Common Equity Tier I Capital To be Well Capitalized Under Prompt Corrective Action Provision, Amount	$ 41,750	$ 38,975
Common Equity Tier I Capital To be Well Capitalized Under Prompt Corrective Action Provision, Ratio	6.50%	6.50%
Total Capital (to risk-weighted assets) [Abstract]
Total Capital, Actual Amount	$ 113,758	$ 106,517
Total Capital, Ratio	17.70%	17.80%
Total Capital for Capital Adequacy Purposes, Amount	$ 51,385	$ 47,969
Total Capital for Capital Adequacy Purposes, Ratio	8.00%	8.00%
Total Capital with Capital Conservation Buffer, Amount	$ 59,414	$ 51,717
Total Capital with Capital Conservation Buffer, Ratio	9.30%	8.60%
Total Capital To be Well Capitalized Under Prompt Corrective Action Provision, Amount	$ 64,231	$ 59,962
Total Capital To be Well Capitalized Under Prompt Corrective Action Provision, Ratio	10.00%	10.00%
Tier 1 Capital (to risk-weighted assets) [Abstract]
Tier I Capital Actual, Amount	$ 105,721	$ 98,970
Tier I Capital, Ratio	16.50%	16.50%
Tier I Capital for Capital Adequacy Purposes, Amount	$ 38,539	$ 35,977
Tier I Capital for Capital Adequacy Purposes, Ratio	6.00%	6.00%
Tier I Capital with Capital Conservation Buffer, Amount	$ 46,567	$ 39,725
Tier I Capital with Capital Conservation Buffer, Ratio	7.30%	6.60%
Tier I Capital To be Well Capitalized Under Prompt Corrective Action Provision, Amount	$ 51,385	$ 47,969
Tier I Capital To be Well Capitalized Under Prompt Corrective Action Provision, Ratio	8.00%	8.00%
Tier 1 Capital (to average quarterly assets) [Abstract]
Tier I Capital Average Actual, Amount	$ 105,721	$ 98,970
Tier I Capital Average, Ratio	13.50%	12.90%
Tier I Capital Average for Capital Adequacy Purposes, Amount	$ 31,440	$ 30,634
Tier I Capital Average for Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I Capital Average with Capital Conservation Buffer, Amount	$ 41,264	$ 35,420
Tier I Capital Average with Capital Conservation Buffer, Ratio	5.30%	4.60%
Tier I Capital Average To be Well Capitalized Under Prompt Corrective Action Provision, Amount	$ 39,300	$ 38,292
Tier I Capital Average To be Well Capitalized Under Prompt Corrective Action Provision, Ratio	5.00%	5.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 20, 2017	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Nov. 21, 2008
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.01				$ 0.01			$ 0.01	$ 0.01
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		437,500				437,500			437,500	437,500
Preferred stock dividend rate percentage									8.00%
Dividends declared and paid		$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	$ 70	$ 280	$ 210
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Dividends declared and paid										1,231
Common stock purchase rights with issue of a warrant (in shares)											556,976
Preferred stock, par value (in dollars per share)											$ 0.01
Exercise price of warrants (in dollars per share)											$ 6.30
Repurchase of warrant									(520)
Additional Paid-in Capital [Member] | Series A Preferred Stock [Member]
Class of Stock [Line Items]
Dividends declared and paid									0	0
Additional Paid-in Capital [Member] | Series B Preferred Stock [Member]
Class of Stock [Line Items]
Dividends declared and paid										$ 0
Repurchase of warrant	$ 520								$ (520)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Weighted average number of shares outstanding reconciliation [Abstract]
Weighted-average shares outstanding - basic (in shares)	12,160,983	11,522,333
Dilution (in shares)	116,753	52,559
Weighted-average share outstanding - diluted (in shares)	12,277,736	11,574,892
Net income available to common stockholders	$ 2,538	$ 13,318
Net income per share - basic (in dollars per share)	$ 0.21	$ 1.16
Net income per share - diluted (in dollars per share)	$ 0.21	$ 1.15
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	135,800	94,000
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	437,500	437,500
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		556,976

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan (in shares)	500,000
Stock-based compensation expense	$ 205	$ 184
Shares [Roll Forward]
Outstanding at beginning of period (in shares)	339,500	339,800
Granted (in shares)	115,800	74,000
Exercised (in shares)	(2,161)	(18,800)
Forfeited (in shares)	(18,864)	(55,500)
Outstanding at end of period (in shares)	434,275	339,500
Exercisable at end of period (in shares)	191,395	138,066
Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning of period (in dollars per share)	$ 5.31	$ 4.83
Granted (in dollars per share)	7.22	6.98
Exercised (in dollars per share)	3.37	3.96
Forfeited (in dollars per share)	4.59	5.08
Outstanding at end of period (in dollars per share)	5.87	5.31
Exercisable at end of period (in dollars per share)	$ 4.85	$ 4.48
Weighted Average Remaining Life [Abstract]
Weighted-average remaining contractual term, outstanding	6 years 8 months 12 days	4 years 10 months 24 days
Weighted-average remaining contractual term, exercisable	6 years 3 months 18 days	1 year 10 months 24 days
Aggregate Intrinsic Value [Abstract]
Aggregate intrinsic value of the options outstanding	$ 619	$ 878
Aggregate intrinsic value of the options exercisable	$ 477	$ 473
Fair value assumptions for options granted [Abstract]
Expected life	5 years 6 months	5 years 6 months
Risk-free interest rate	2.15%	1.77%
Expected volatility	33.79%	58.32%
Expected dividend yield	0.00%	0.00%
Weighted average per share fair value of options granted (in dollars per share)	$ 2.44	$ 3.55
Unrecognized stock-based compensation expense	$ 699
Unrecognized stock-based compensation expected to be recognized period	60 months
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vesting period	5 years
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options expiry period	10 years

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income tax expense (benefit) [Abstract]
Current			$ 228	$ 67
Deferred			4,794	(10,081)
Income tax expense			5,022	(10,014)
Income Tax Disclosure [Line Items]
Additional income tax expense			1,900
Reconciliation of Income Tax Expense (Benefit), Amount [Abstract]
Tax at statutory federal rate			2,666	1,879
Change in valuation allowance	$ 11,800		0	(12,485)
Adjustment for rate change			1,887	0
State tax net of Federal income tax benefit			616	323
Other adjustments			(147)	269
Income tax expense			$ 5,022	$ (10,014)
Reconciliation of Income Tax Expense (Benefit), Rate [Abstract]
Tax at statutory federal rate			34.00%	34.00%
Change in valuation allowance			(0.00%)	(225.90%)
Adjustment for rate change			24.10%	0.00%
State tax net of Federal income tax benefit			7.90%	5.80%
Other adjustments			(1.90%)	4.90%
Income tax expense			64.10%	(181.20%)
Deferred tax assets [Abstract]
Net operating loss carryforward			$ 3,446	$ 7,148
Allowance			3,201	4,636
Reserve on real estate acquired through foreclosure			135	161
Reserve for uncollected interest			108	433
Reserve for contingent liability			31	56
Charitable contribution			127	297
Unrealized losses on AFS securities			15	0
AMT			351	192
Total gross deferred tax assets			7,414	12,923
Deferred tax liabilities [Abstract]
FHLB stock dividends			61	82
Loan origination costs			534	801
Accelerated depreciation			1,122	1,473
Prepaid expenses			239	264
MSRs			140	220
Other			16	2
Total gross deferred tax liabilities			2,112	2,842
Net deferred tax assets			5,302	$ 10,081
Plan [Member]
Reconciliation of Income Tax Expense (Benefit), Rate [Abstract]
Tax at statutory federal rate		21.00%
Federal [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			$ 10,800
Federal [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Expiration date			Dec. 31, 2033
Federal [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Expiration date			Dec. 31, 2034
State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			$ 17,900
State [Member] | Minimum [Member]
Operating Loss Carryforwards [Line Items]
Expiration date			Dec. 31, 2023
State [Member] | Maximum [Member]
Operating Loss Carryforwards [Line Items]
Expiration date			Dec. 31, 2033

Commitments and Contingencies63

Commitments and Contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Commitment	Dec. 31, 2016USD ($)Commitment
Financial instruments whose contract amount represents credit risk [Abstract]
Repurchases of loans previously sold	$ 469	$ 343
Deposits	602,228	571,946
Loan balances	660,096	601,309
Interest income	24,594	22,189
Non-interest income	5,238	7,071
Cannabis Customers [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Deposits	19,200
Loan balances	$ 11,900
Percentage of deposits in total deposits	3.20%
Percentage of loans in total loans	1.80%
Interest income	$ 280
Non-interest income	230
Volume of deposits accepted	45,100
Standby Letters of Credit [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	$ 3,480	4,022
Letters of credit expiry period	12 months
Current liability for guarantees	$ 42	94
Home Equity Lines of Credit [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	$ 13,321	7,736
Loan expiry period	10 years
Unadvanced Construction Commitments [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	$ 74,720	15,728
Mortgage Loan Commitments [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	$ 595	$ 574
Number of mortgage loan commitments at fixed interest rate | Commitment	2	2
Fixed interest rate		4.25%
Fixed rate loan commitments	$ 595	$ 574
Mortgage Loan Commitments [Member] | Loan 1 [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Fixed interest rate	5.00%
Mortgage Loan Commitments [Member] | Loan 2 [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Fixed interest rate	3.875%
Lines of Credit [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	$ 16,612	34,125
Loans Sold and Serviced with Limited Repurchase Provisions [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Off-balance sheet credit risk	21,409	70,773
Mortgage loan, held in reserve	63	48
Repurchases of loans previously sold	$ 469	$ 343
Loans Sold and Serviced with Limited Repurchase Provisions [Member] | Minimum [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Period of delinquency under repurchase agreement	120 days
Loans Sold and Serviced with Limited Repurchase Provisions [Member] | Maximum [Member]
Financial instruments whose contract amount represents credit risk [Abstract]
Period of delinquency under repurchase agreement	180 days

Fair Value of Financial Instr64

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets [Abstract]
AFS Securities - U.S. government agency notes	$ 10,119	$ 0
Quoted Prices (Level 1) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	0
LHFS	0	0
MSRs	0	0
IRLCs	0	0
Best efforts forward contracts	0
Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	10,119
LHFS	4,530	10,313
MSRs	0	0
IRLCs	22	162
Best efforts forward contracts	3
Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	0
LHFS	0	0
MSRs	477	557
IRLCs	0	0
Best efforts forward contracts	0
Recurring [Member] | Quoted Prices (Level 1) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	0
LHFS	0
MSRs	0	0
IRLCs	0	0
Mandatory forward contracts	0	0
Best efforts forward contracts	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	10,119
LHFS	4,530
MSRs	0	0
IRLCs	22	162
Mandatory forward contracts	13	153
Best efforts forward contracts	3
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	0
LHFS	0
MSRs	477	557
IRLCs	0	0
Mandatory forward contracts	0	0
Best efforts forward contracts	0
Carrying Value [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	10,119
LHFS	4,530	10,307
MSRs	477	557
IRLCs	22	162
Best efforts forward contracts	3
Carrying Value [Member] | Recurring [Member]
Assets [Abstract]
AFS Securities - U.S. government agency notes	10,119
LHFS	4,530
MSRs	477	557
IRLCs	22	162
Mandatory forward contracts	13	153
Best efforts forward contracts	3
AFS Securities - U.S. Government Agency Notes [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	0
LHFS [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	131
MSRs [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	(80)	66
IRLCs [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	(140)	(21)
Mandatory Forward Contracts [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	(140)	$ 42
Best Efforts Forward Contracts [Member]
Fair Value Measured On Recurring Basis Gain Loss Included In Earnings Line Items [Line Items]
Total changes in fair values included in period income - assets	$ 3

Fair Value of Financial Instr65

Fair Value of Financial Instruments, Assets, Quantitative Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
MSRs [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 477	$ 557	$ 623
Valuation adjustment	(80)	(66)
MSRs [Member] | Market Approach [Member] | Recurring [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 477	$ 557
Valuation Techniques	Market Approach	Market Approach
Unobservable Input	Weighted average prepayment speed	Weighted average prepayment speed
Weighted average	3.94%	3.95%
Impaired Loans [Member] | Nonrecurring [Member] | Minimum [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	0.00%	0.00%
Impaired Loans [Member] | Nonrecurring [Member] | Maximum [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	33.00%	2.00%
Impaired Loans [Member] | Nonrecurring [Member] | Weighted Average [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	14.50%	2.00%
Impaired Loans [Member] | Nonrecurring [Member] | Quoted Prices (Level 1) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 0	$ 0
Impaired Loans [Member] | Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	0	0
Impaired Loans [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	2,793	2,136
Impaired Loans [Member] | Nonrecurring [Member] | Carrying Value [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 2,793	$ 2,136
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Minimum [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	0.00%	0.00%
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Maximum [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	22.00%	10.00%
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Weighted Average [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Weighted average discount rate	11.50%	10.00%
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Quoted Prices (Level 1) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 0	$ 0
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	0	0
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	178	767
Real Estate Acquired Through Foreclosure [Member] | Nonrecurring [Member] | Carrying Value [Member]
Quantitative Information about Level 3 Fair Value Measurements [Abstract]
Fair Value Estimate	$ 178	$ 767

Fair Value of Financial Instr66

Fair Value of Financial Instruments, Assets, Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets [Abstract]
AFS Securities - U.S. government agency notes	$ 10,119	$ 0
HTM securities	54,004	62,827
Bank Commitments [Member]
Liabilities [Abstract]
Loan funding commitments	105,200	58,200
Standby Letters of Credit [Member]
Liabilities [Abstract]
Loan funding commitments	3,500	4,000
Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents	21,853	67,014
Certificates of deposit held as investment	8,780	100
AFS Securities - U.S. government agency notes	0
HTM securities	5,056	13,165
LHFS	0	0
Loans receivable	0	0
Restricted stock investments	0	0
Accrued interest receivable	0	0
MSRs	0	0
IRLCs	0	0
Mandatory forward contracts	0	0
Best effort forward contracts	0
Liabilities [Abstract]
Deposits	0	0
Accrued interest payable	0	0
Borrowings	0	0
Subordinated debentures	0	0
Level 2 [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Certificates of deposit held as investment	0	0
AFS Securities - U.S. government agency notes	10,119
HTM securities	48,948	49,662
LHFS	4,530	10,313
Loans receivable	0	0
Restricted stock investments	4,489	5,103
Accrued interest receivable	2,640	2,249
MSRs	0	0
IRLCs	22	162
Mandatory forward contracts	13	153
Best effort forward contracts	3
Liabilities [Abstract]
Deposits	594,659	572,556
Accrued interest payable	395	538
Borrowings	81,303	97,961
Subordinated debentures	0	0
Level 3 [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Certificates of deposit held as investment	0	0
AFS Securities - U.S. government agency notes	0
HTM securities	0	0
LHFS	0	0
Loans receivable	672,349	602,953
Restricted stock investments	0	0
Accrued interest receivable	0	0
MSRs	477	557
IRLCs	0	0
Mandatory forward contracts	0	0
Best effort forward contracts	0
Liabilities [Abstract]
Deposits	0	0
Accrued interest payable	0	0
Borrowings	0	0
Subordinated debentures	20,619	20,619
Carrying Value [Member]
Assets [Abstract]
Cash and cash equivalents	21,853	67,014
Certificates of deposit held as investment	8,780	100
AFS Securities - U.S. government agency notes	10,119
HTM securities	54,303	62,757
LHFS	4,530	10,307
Loans receivable	660,096	601,309
Restricted stock investments	4,489	5,103
Accrued interest receivable	2,640	2,249
MSRs	477	557
IRLCs	22	162
Mandatory forward contracts	13	153
Best effort forward contracts	3
Liabilities [Abstract]
Deposits	602,228	571,946
Accrued interest payable	395	538
Borrowings	88,500	103,500
Subordinated debentures	20,619	20,619
Total [Member]
Assets [Abstract]
Cash and cash equivalents	21,853	67,014
Certificates of deposit held as investment	8,780	100
AFS Securities - U.S. government agency notes	10,119
HTM securities	54,004	62,827
LHFS	4,530	10,313
Loans receivable	672,349	602,953
Restricted stock investments	4,489	5,103
Accrued interest receivable	2,640	2,249
MSRs	477	557
IRLCs	22	162
Mandatory forward contracts	13	153
Best effort forward contracts	3
Liabilities [Abstract]
Deposits	594,659	572,556
Accrued interest payable	395	538
Borrowings	81,303	97,961
Subordinated debentures	$ 20,619	$ 20,619

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Term	Dec. 31, 2016USD ($)
Board of Directors [Member]
Related party loan activity [Roll forward]
Beginning balance	$ 3,060	$ 3,186
Additions	3,667	133
Repayments	(272)	(259)
Ending balance	$ 6,455	3,060
President [Member] | Law Firm, Bank Partner [Member]
Related party loan activity [Roll forward]
Period for lease agreement with subsidiary	5 years
Number of additional term for which period of lease agreement increase | Term	3
Total lease payments received by the subsidiary	$ 276	270
Reimbursement amount for maintenance and utilities	131	133
Related party transaction fees for services	$ 149	$ 228

Parent Company Financial Stat68

Parent Company Financial Statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity in net assets of subsidiaries [Abstract]
Other assets	$ 2,970	$ 3,228
Total assets	804,787	787,485
Liabilities [Abstract]
Subordinated debentures	20,619	20,619
Total liabilities	713,687	699,555
Stockholders' Equity	91,100	87,930	$ 86,456
Total liabilities and stockholders' equity	804,787	787,485
Statements of Operations [Abstract]
Interest income	32,224	30,750
Net interest income	24,594	22,189
Net income before income tax provision (benefit)	7,840	5,526
Income tax benefit	5,022	(10,014)
Net income	2,818	15,540
Cash flows from operating activities [Abstract]
Net income	2,818	15,540
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Stock-based compensation	205	184
Deferred income taxes	4,794	(10,081)
Decrease in other assets	244	1,823
Net cash provided by operating activities	10,881	7,621
Cash flows from investing activities [Abstract]
Net cash (used in) provided by investing activities	(70,731)	3,276
Cash flows from financing activities [Abstract]
Preferred stock dividends	(280)	(7,840)
Repurchase of warrant	(520)	0
Stock redemption of Series B preferred stock	0	(23,393)
Proceeds from common stock issuance	207	10,584
Net cash provided by financing activities	14,689	12,526
(Decrease) increase in cash and cash equivalents	(45,161)	23,423
Cash and cash equivalents at beginning of period	67,014	43,591
Cash and cash equivalents at end of period	21,853	67,014
Severn Bancorp, Inc [Member]
ASSETS [Abstract]
Cash	1,310	2,012
Equity in net assets of subsidiaries [Abstract]
Bank	108,735	105,898
Nonbank	3,886	3,014
Other assets	1,421	1,265
Total assets	115,352	112,189
Liabilities [Abstract]
Subordinated debentures	20,619	20,619
Other liabilities	3,633	3,640
Total liabilities	24,252	24,259
Stockholders' Equity	91,100	87,930
Total liabilities and stockholders' equity	115,352	112,189
Statements of Operations [Abstract]
Interest income	0	0
Interest expense on subordinated debentures	824	973
Net interest income	(824)	(973)
General and administrative expenses	218	229
Net income before income tax provision (benefit)	(1,042)	(1,202)
Income tax benefit	(71)	(1,004)
Equity in undistributed net income of subsidiaries	3,789	15,738
Net income	2,818	15,540
Cash flows from operating activities [Abstract]
Net income	2,818	15,540
Adjustments to reconcile net income to net cash from operating activities [Abstract]
Equity in undistributed earnings of subsidiaries	(3,789)	(15,738)
Stock-based compensation	205	184
Deferred income taxes	(718)	(531)
Decrease in other assets	562	178
Decrease in accrued expenses and other liabilities	(7)	(1,965)
Net cash provided by operating activities	(929)	(2,332)
Cash flows from investing activities [Abstract]
Contributions from subsidiaries	820	24,000
Net cash (used in) provided by investing activities	820	24,000
Cash flows from financing activities [Abstract]
Preferred stock dividends	(280)	(7,840)
Repurchase of warrant	(520)	0
Stock redemption of Series B preferred stock	0	(23,393)
Proceeds from common stock issuance	207	10,584
Net cash provided by financing activities	(593)	(20,649)
(Decrease) increase in cash and cash equivalents	(702)	1,019
Cash and cash equivalents at beginning of period	2,012	993
Cash and cash equivalents at end of period	$ 1,310	$ 2,012