Glen Burnie Bancorp (GLBZ) 10-Q 11 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	GLEN BURNIE BANCORP
Entity Central Index Key	890,066
Trading Symbol	glbz
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		2,793,748
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 14,487	$ 6,946
Interest bearing deposits with banks and federal funds sold	2,851	3,676
Total Cash and Cash Equivalents	17,338	10,622
Investment securities available for sale, at fair value	90,629	94,607
Restricted equity securities, at cost	1,440	1,230
Loans, net of deferred fees and costs	271,020	265,058
Less: Allowance for loan losses	(2,599)	(2,484)
Loans, net	268,421	262,574
Real estate acquired through foreclosure	114	114
Premises and equipment, net	3,547	3,638
Bank owned life insurance	9,428	9,328
Deferred tax assets, net	2,803	3,160
Accrued interest receivable	1,092	1,134
Accrued taxes receivable	631	674
Prepaid expenses	493	546
Other assets	190	805
Total Assets	396,126	388,432
LIABILITIES
Noninterest-bearing deposits	105,582	100,090
Interest-bearing deposits	229,899	233,147
Total Deposits	335,481	333,237
Short-term borrowings	15,000	10,000
Long-term borrowings	10,000	10,000
Defined pension liability	374	369
Accrued expenses and other liabilities	737	1,011
Total Liabilities	361,592	354,617
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,793,748 and 2,786,855 shares as of June 30, 2017 and December 31, 2016 , respectively.	2,794	2,787
Additional paid-in capital	10,199	10,130
Retained earnings	21,803	21,708
Accumulated other comprehensive (loss)	(262)	(810)
Total Stockholders' Equity	34,534	33,815
Total Liabilities and Stockholders' Equity	$ 396,126	$ 388,432

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	2,793,748	2,786,855
Common stock, shares outstanding	2,793,748	2,786,855

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME
Loans, including fees	$ 2,845	$ 2,749	$ 5,619	$ 5,585
Interest and dividends on securities	507	487	1,025	975
Deposits with banks and federal funds sold	31	32	62	59
Total Interest Income	3,383	3,268	6,706	6,619
INTEREST EXPENSE
Deposits	327	377	659	769
Short-term borrowings	84		167
Long term borrowings	76	159	152	319
Total Interest Expense	487	536	978	1,088
Net Interest Income	2,896	2,732	5,728	5,531
Provision for loan losses	(30)		165	117
Net interest income after provision for loan losses	2,926	2,732	5,563	5,414
NONINTEREST INCOME
Service charges on deposit accounts	69	81	136	164
Other fees and commissions	167	171	328	330
Gain on securities sold	1		2	1
Income on life insurance	51	53	100	107
Other income	17	13	35	24
Total Noninterest Income	305	318	601	626
NONINTEREST EXPENSE
Salary and employee benefits	1,614	1,535	3,036	3,040
Occupancy and equipment expenses	249	249	517	509
Legal, accounting and other professional fees	262	192	468	422
Data processing and item processing services	143	172	312	334
FDIC insurance costs	64	77	124	154
Advertising and marketing related expenses	42	11	73	36
Loan collection costs	29	80	47	121
Telephone costs	59	50	114	95
Other expenses	368	332	727	660
Total Noninterest Expenses	2,830	2,698	5,418	5,371
Income before income taxes	401	352	746	669
Income tax expense	63	44	92	78
NET INCOME	$ 338	$ 308	$ 654	$ 591
Basic and diluted net income per common share (in dollars per share)	$ 0.12	$ 0.11	$ 0.23	$ 0.21

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Other Comprehensive Income [Abstract]
Net income	$ 338	$ 308	$ 654	$ 591
Net unrealized gains on securities available for sale:
Net unrealized gain on securities during the period	507	663	549	1,096
Reclassification adjustment for gain on sales of securities included in net income	(1)		(1)	(1)
Other Comprehensive Income	506	663	548	1,095
Comprehensive income	$ 844	$ 971	$ 1,202	$ 1,686

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balances at Dec. 31, 2015	$ 2,774	$ 9,986	$ 21,718	$ (302)	$ 34,176
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			591		591
Cash dividends, $0.20 per share			(555)		(555)
Dividends reinvested under dividend reinvestment plan	6	83			89
Other comprehensive income				1,095	1,095
Balances at Jun. 30, 2016	2,780	10,069	21,754	793	35,396
Balances at Dec. 31, 2016	2,787	10,130	21,708	(810)	33,815
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			654		654
Cash dividends, $0.20 per share			(559)		(559)
Dividends reinvested under dividend reinvestment plan	7	69			76
Other comprehensive income				548	548
Balances at Jun. 30, 2017	$ 2,794	$ 10,199	$ 21,803	$ (262)	$ 34,534

CONSOLIDATED STATEMENT OF CHAN7

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) (Parentheticals)	6 Months Ended
	Jun. 30, 2016$ / shares
Statement Of Stockholders' Equity [Abstract]
Cash dividends, per share	$ 0.20

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 654	$ 591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion	518	590
Provision for credit losses	165	117
Gains on disposals of assets, net	(1)	(1)
Income on investment in life insurance	(100)	(107)
Changes in assets and liabilities:
Decrease in ground rents	7
Decrease in accrued interest receivable	42	12
Decrease in other assets	729	89
Decrease in accrued interest payable	(2)	(2)
Decrease in other liabilities	(267)	(108)
Net cash provided by operating activities	1,745	1,181
Cash flows from investing activities:
Maturities and principal paydowns of available for sale mortgage-backed securities	6,443	8,215
Proceeds from call/sales of other investment securities	2,766	3,767
Purchases of available for sale mortgage-backed securities		(6,307)
Purchases of other available for sale investment securities	(4,659)	(8,150)
(Purchase) sale of Federal Home Loan Bank stock	(210)	3
(Increase) decrease in loans, net	(6,012)	5,904
Purchases of premises and equipment	(119)	(118)
Net cash (used) provided by investing activities	(1,791)	3,314
Cash flows from financing activities:
Increase in noninterest-bearing deposits, NOW accounts, money market accounts, and savings accounts, net	5,492	9,084
Decrease in time deposits, net	(3,248)	(4,981)
Increase in short term borrowings	15,000
Decrease in long term borrowings	(10,000)
Cash dividends paid	(558)	(555)
Common stock dividends reinvested	76	89
Net cash provided by financing activities	6,762	3,637
Increase in cash and cash equivalents	6,716	8,132
Cash and cash equivalents, beginning of year	10,622	12,371
Cash and cash equivalents, end of period	17,338	20,503
Supplementary cash flow information:
Interest paid	$ 1,122	$ 1,217

ORGANIZATIONAL

ORGANIZATIONAL	6 Months Ended
	Jun. 30, 2017
Organizational [Abstract]
ORGANIZATIONAL.	NOTE 1 – ORGANIZATIONAL Nature of Business.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 2 - BASIS OF PRESENTATION The accompanying condensed balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited consolidated financial statements have been included in the results of operations for the three and six month periods ended June 30, 2017 and 2016. Operating results for the three and six month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 3 - EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated by including the average dilutive common stock equivalents outstanding during the periods. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic and diluted: Net income $ 338,000 $ 308,000 $ 654,000 $ 591,000 Weighted average common shares outstanding 2,792,656 2,776,546 2,791,824 2,776,053 Basic and dilutive net income per share $ 0.12 $ 0.11 $ 0.23 $ 0.21 Diluted earnings per share calculations were not required for the three and six month periods ended June 30, 2017 and 2016, since there were no options outstanding.

LOANS AND ASSET QUALITY

LOANS AND ASSET QUALITY	6 Months Ended
	Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
LOANS AND ASSET QUALITY	NOTE 4 – LOANS AND ASSET QUALITY Asset Quality At June 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,690 $ 49 $ - $ - $ 3,739 Commercial real estate 65,015 - - 640 65,655 Consumer and indirect 94,343 835 - 331 95,509 Residential real estate 102,816 1,699 57 2,556 107,128 $ 265,864 $ 2,583 $ 57 $ 3,527 $ 272,031 At December 31, 2016 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,679 $ - $ - $ - $ 4,679 Commercial real estate 68,775 - - 647 69,422 Consumer and indirect 82,134 992 - 456 83,582 Residential real estate 103,941 1,798 36 2,648 108,423 $ 259,529 $ 2,790 $ 36 $ 3,751 $ 266,106 The balances in the above charts have not been reduced by the allowance for loan loss and the unearned income on loans. For the period ending June 30, 2017, the allowance for loan loss is $2,599,000 and the unearned income is $1,012,000. For the period ending December 31, 2016, the allowance for loan loss is $2,484,000 and the unearned income is $1,048,000. June 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 302 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.32 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 72.52 % 65.59 % At June 30, 2017 there were three troubled debt restructured loans consisting of a commercial loan of $222,000, a residential real estate loan of $47,000 and a consumer loan of $33,000. The consumer and residential real estate loans are both on nonaccrual. At June 30, 2017, there was $1,112,000 in loans outstanding, included in the current and 30-89 days past due columns in the above table, as to which known information about possible credit problems of borrowers caused management to have doubts as to the ability of such borrowers to comply with present loan repayment terms. Such loans consist of loans which were not 90 days or more past due but where the borrower is in bankruptcy or has a history of delinquency, or the loan to value ratio is considered excessive due to deterioration of the collateral or other factors. The three loans outstanding, totaling $1,112,000, are as follows: $726,000 Commercial Real Estate loan where the guarantor is in bankruptcy and the loan has an accelerated payoff since we have an assignment of rents from the property which has a very long-term national tenant; $164,000 Home Equity Line of Credit which is paying as agreed, however the borrower has defaulted on other commercial loans which have been satisfied; and a $222,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $222,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at June 30, 2017 are comprised of: Consumer loans Residential Real Estate Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at June 30, 2017 and December 31, 2016. (dollars in thousands) June 30, 2017 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,385 1,414 - 451 1,426 Commercial - - - - - Consumer 182 182 2 65 231 Installment - - - - - Home Equity - - - - - Commercial 222 222 6 222 225 Total impaired loans with specific reserves $ 1,789 1,818 8 738 1,882 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,426 2,166 7 n/a 2,478 Commercial 1,367 1,519 17 n/a 1,558 Consumer 62 62 - n/a 101 Installment 87 87 - n/a 87 Home Equity - - - n/a - Commercial 2 2 - n/a 2 Total impaired loans with no specific reserve $ 2,944 3,836 24 - 4,226 (dollars in thousands) December 31, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,393 1,422 58 252 1,442 Commercial - - - - - Consumer 128 128 - 50 167 Installment - - - - - Home Equity - - - - - Commercial 229 229 8 228 235 Total impaired loans with specific reserves $ 1,750 1,779 66 530 1,844 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,479 2,219 21 n/a 2,463 Commercial 1,413 1,565 59 n/a 1,594 Consumer 182 182 - n/a 75 Installment 193 193 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 3,267 4,159 80 - 4,132 Following are tables for June 2017 and December 2016 showing the provision for each group of loans. Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Provision for credit losses (27 ) 35 211 (45 ) (9 ) 165 Recoveries - - 177 27 - 204 Loans charged off - - (251 ) (3 ) - (254 ) Balance, end of quarter $ 257 $ 294 $ 1,013 $ 1,030 $ 5 $ 2,599 Individually evaluated for impairment: Balance in allowance $ 222 $ - $ 65 $ 451 $ - $ 738 Related loan balance 222 1,367 307 1,425 - 3,321 Collectively evaluated for impairment: Balance in allowance $ 35 $ 294 $ 948 $ 579 $ 5 $ 1,861 Related loan balance 3,517 64,288 95,202 105,703 - 268,710 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 305 $ 262 $ 804 $ 1,631 $ 148 $ 3,150 Provision for credit losses (30 ) 361 431 240 (134 ) 868 Recoveries 9 - 336 34 - 379 Loans charged off - (364 ) (695 ) (854 ) - (1,913 ) Balance, end of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Individually evaluated for impairment: Balance in allowance $ 229 $ - $ 50 $ 251 $ - $ 530 Related loan balance 229 1,413 503 2,872 - 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 14 $ 1,954 Related loan balance 4,451 68,009 83,078 105,552 - 261,090 Following is a table showing activity for non-accrual loans for the quarters ended June 30, 2017 and June 30, 2016. (Dollars in thousands) Commercial & Commercial Consumer & Residential Industrial Real Estate Indirect Real Estate Total December 31, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Transfer into non-accrual - - 353 125 478 Transfer to REO - - - - - Loans paid down/payoffs - (7 ) (115 ) (214 ) (336 ) Loans brought to accrual status - - (112 ) - (112 ) Loans charged off - - (251 ) (3 ) (254 ) June 30, 2017 $ - $ 640 $ 331 $ 2,556 $ 3,527 December 31, 2015 $ - $ 300 $ 596 $ 2,883 3,779 Transfer into non-accrual - 840 969 1,461 3,270 Transfer to REO - (114 ) - (126 ) (240 ) Loans paid down/payoffs - (15 ) (414 ) (716 ) (1,145 ) Loans brought to accrual status - - (25 ) (135 ) (160 ) Loans charged off - (364 ) (670 ) (719 ) (1,753 ) June 30, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Credit Quality Information The following tables represent credit exposures by creditworthiness category for the quarter ending and the year ended December 31, 2016. The use of creditworthiness categories to grade loans permits management to estimate a portion of credit risk. The Bank’s internal creditworthiness is based on experience with similarly graded credits. Loans that trend upward toward higher credit grades typically have less credit risk and loans that migrate downward typically have more credit risk. The Bank’s internal risk ratings are as follows: 1 Superior – minimal risk (normally supported by pledged deposits, United States government securities, etc.) 2 Above Average – low risk. (all of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal) 3 Average – moderately low risk. (most of the risks associated with this credit based on each of the bank’s creditworthiness criteria are minimal) 4 Acceptable – moderate risk. (the weighted overall risk associated with this credit based on each of the bank’s creditworthiness criteria is acceptable) 5 Other Assets Especially Mentioned – moderately high risk. (possesses deficiencies which corrective action by the bank would remedy; potential watch list) 6 Substandard – (the bank is inadequately protected and there exists the distinct possibility of sustaining some loss if not corrected) 7 Doubtful – (weaknesses make collection or liquidation in full, based on currently existing facts, improbable) 8 Loss – (of little value; not warranted as a bankable asset) Loans rated 1-4 are considered “Pass” for purposes of the risk rating chart below. Risk ratings of loans by categories of loans are as follows: Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,517 $ 63,837 $ 94,194 $ 104,164 $ 265,712 Special mention - 334 848 493 1,675 Substandard 222 1,484 407 2,471 4,584 Doubtful - - 60 - 60 Loss - - - - - $ 3,739 $ 65,655 $ 95,509 $ 107,128 $ 272,031 Non-accrual - 640 331 2,556 3,527 Troubled debt restructures 222 - 33 47 302 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 33 $ 47 $ 80 Non-performing TDRs accounts - - 1 1 2 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,357 $ 64,208 $ 82,943 $ 105,225 $ 256,733 Special mention 94 3,801 276 527 4,698 Substandard 228 1,413 327 2,493 4,461 Doubtful - - 36 178 214 Loss - - - - - $ 4,679 $ 69,422 $ 83,582 $ 108,423 $ 266,106 Non-accrual - 647 456 2,648 3,751 Troubled debt restructures 228 - 36 48 312 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 36 $ 48 $ 84 Non-performing TDRs accounts - - 1 1 2

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 5 – FAIR VALUE ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements. Fair Value Hierarchy ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below: · Level 1 – Quoted prices in active markets for identical securities · Level 2 – Other significant observable inputs (including quoted prices in active markets for similar securities) · Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820-10. The Company’s bond holdings in the investment securities portfolio are the only asset or liability subject to fair value measurements on a recurring basis. The Bank may also be required, from time to time, to measure certain other financial and non-financial assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. At June 30, 2017, these assets include 28 loans, excluding $155,000 of consumer and indirect loans, classified as impaired, which include nonaccrual, past due 90 days or more and still accruing, and a homogeneous pool of indirect loans all considered to be impaired loans, which are valued under Level 3 inputs. Loans which are deemed to be impaired ($4.7 million of loans with $738,000 of specific reserves as of June 30, 2017) and foreclosed real estate assets are primarily valued on a nonrecurring basis at the fair values of the underlying real estate collateral. The Company is predominantly a cash flow lender with real estate serving as collateral on a majority of loans ($2.8 million of the total impaired loans as of June 30, 2017). On a quarterly basis, the Company determines such fair values through a variety of data points and mostly rely on appraisals from independent appraisers. We obtain an appraisal on properties when they become impaired and have new appraisals at least every year. Typically, these appraisals do not include an inside inspection of the property as our loan documents do not require the borrower to allow access to the property. Therefore the most significant unobservable inputs is the details of the amenities included within the property and the condition of the property. Further, we cannot always accurately assess the amount of time it takes to gain ownership of our collateral through the foreclosure process and the damage, as well as potential looting, of the property further decreasing our value. Thus, in determining the fair values we discount the current independent appraisals, with a range from 0% to 16%, based on individual circumstances. The remaining impaired loans ($1.92 million with $288,000 of specific reserves as of June 30, 2017) include mobile homes, commercial, consumer, and indirect auto loans, which are valued based on the value of the underlying collateral. The changes in the assets subject to fair value measurements are summarized below by Level: Fair (dollars in thousands) Level 1 Level 2 Level 3 Value June 30, 2017 Recurring: Securities available for sale U.S. Treasury $ - $ 1,506 $ - $ 1,506 State and Municipal - 35,710 - 35,710 Mortgaged-backed - 53,413 - 53,413 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 4,733 4,733 OREO - 114 - 114 $ - $ 90,743 $ 4,763 $ 95,506 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 1,507 $ - $ 1,507 State and Municipal - 33,845 - 33,845 Mortgaged-backed - 59,255 - 59,255 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 2,891 2,891 OREO - 114 - 114 $ - $ 94,721 $ 2,921 $ 97,642 The estimated fair values of the Company’s financial instruments at June 30, 2017 and December 31, 2016 are summarized below. The fair values of a significant portion of these financial instruments are estimates derived using present value techniques and may not be indicative of the net realizable or liquidation values. Also, the calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values. June 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 14,487 $ 14,487 $ 6,946 $ 6,946 Interest-bearing deposits 728 728 479 479 Federal funds sold 2,123 2,123 3,197 3,197 Investment securities 90,629 90,629 94,607 94,607 Investments in restricted stock 1,410 1,410 1,230 1,230 Ground rents 156 156 164 164 Loans, net 268,421 266,740 262,574 259,017 Cash Value of life insurance 9,428 9,428 9,328 9,328 Accrued interest receivable 1,092 1,092 1,134 1,134 Financial liabilities: Deposits 335,481 317,448 333,237 315,418 Long-term borrowings 10,000 10,165 10,000 10,257 Short-term borrowings 15,000 15,065 10,000 10,188 Dividends payable - - - - The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. (dollars in thousands) Carrying Fair June 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 17,338 $ 17,338 $ 17,338 $ - $ - Loans receivable, net 268,421 266,740 - - 266,740 Cash value of life insurance 9,428 9,428 - 9,428 - Financial instruments - Liabilities Deposits 335,481 317,448 217,906 99,542 - Long-term debt 10,000 10,165 - 10,165 - Short-term debt 15,000 15,065 - 15,065 - Fair values are based on quoted market prices for similar instruments or estimated using discounted cash flows. The discounts used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs and optionality of such instruments. The fair value of cash and due from banks, federal funds sold, investments in restricted stocks and accrued interest receivable are equal to the carrying amounts. The fair values of investment securities are determined using market quotations. The fair value of loans receivable is estimated using discounted cash flow analysis. The fair value of non-interest bearing deposits, interest-bearing checking, savings, and money market deposit accounts, securities sold under agreements to repurchase, and accrued interest payable are equal to the carrying amounts. The fair value of fixed-maturity time deposits is estimated using discounted cash flow analysis. The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 are as follows: Securities available for sale: Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss U.S. Agency $ 500 $ 1 $ - $ - $ 500 $ 1 State and Municipal 7,461 178 1,398 45 8,859 223 Mortgage Backed 44,590 591 - - 44,590 591 $ 52,551 $ 770 $ 1,398 $ 45 $ 53,949 $ 815 Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary-impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain it’s investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of June 30, 2017, management had the ability and intent to hold the securities classified as available for sale for a period of time sufficient for a recovery of cost. On June 30, 2017, the Bank held 4 investment securities that were in a continuous unrealized loss position for more than 12 months. Management does not believe the securities are impaired due to reasons of credit quality. As of June 30, 2017, management believes the impairment detailed in the table above is temporary and no impairment loss has been recognized in the Company’s consolidated income statement.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS The FASB has issued several exposure drafts which, if adopted, would significantly alter the Company’s (and all other financial institutions’) method of accounting for, and reporting, its financial assets and some liabilities from a historical cost method to a fair value method of accounting as well as the reported amount of net interest income. The Company has not determined the extent of the possible changes at this time. The exposure drafts are in different stages of review, approval and possible adoption. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for the Company on January 1, 2018. The Company is still evaluating the potential impact on the Company’s financial statements. ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02 “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-2 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the potential impact of ASU 2016-02 on our financial statements. ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 was issued to clarify certain principal versus agent considerations within the implementation guidance of ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective on January 1, 2017 and did not have a significant impact on our financial statements. ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 was issued to clarify ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” which updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” which updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate- owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material effect on the Company's consolidated financial statements. ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash.” ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the provisions of ASU No. 2017-08 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017-09 was used to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modification to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature, Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for: (a) public business entities for reporting periods for which financial statements have not yert been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuances. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company in currently in the process of evaluating the impact of ASU 2017-09 on its consolidated financial statements, but does not expect the adoption of ASU 2017-09 to have material impact on it consolidated financial statements.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying condensed balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ equity, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited consolidated financial statements have been included in the results of operations for the three and six month periods ended June 30, 2017 and 2016. Operating results for the three and six month periods ended June 30, 2017 is not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS The FASB has issued several exposure drafts which, if adopted, would significantly alter the Company’s (and all other financial institutions’) method of accounting for, and reporting, its financial assets and some liabilities from a historical cost method to a fair value method of accounting as well as the reported amount of net interest income. The Company has not determined the extent of the possible changes at this time. The exposure drafts are in different stages of review, approval and possible adoption. ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective for the Company on January 1, 2018. The Company is still evaluating the potential impact on the Company’s financial statements. ASU 2016-1, “No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-02 “Leases (Topic 842).” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-2 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the potential impact of ASU 2016-02 on our financial statements. ASU 2016-05 “Derivatives and Hedging (Topic 815) Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” clarifies ASU 2016-05 ASU 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. ASU 2016-07 simplifies the transition to the equity method of accounting by eliminating retroactive adjustment of the investment when an investment qualifies for use of the equity method, among other things. ASU 2016-07 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” ASU 2016-08 was issued to clarify certain principal versus agent considerations within the implementation guidance of ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 was effective on January 1, 2017 and did not have a significant impact on our financial statements. ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 was issued to clarify ASC Topic 606, “Revenue from Contracts with Customers” ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” ASU No. 2016-12, “Revenue From Contracts With Customers (Topic 606) Narrow-Scope and Practical Expedients” which updated guidance intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2016. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements. ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” which updated guidance intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The updated guidance replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). This Accounting Standards Update addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate- owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material effect on the Company's consolidated financial statements. ASU 2016-16, “Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 provides guidance stating that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash.” ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements. ASU 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the provisions of ASU No. 2017-08 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification”. ASU 2017-09 was used to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modification to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature, Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. ASU 2017-09 is effective for the annual period, and interim periods within the annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for: (a) public business entities for reporting periods for which financial statements have not yert been issued, and (b) all other entities for reporting periods for which financial statements have not yet been made available for issuances. ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company in currently in the process of evaluating the impact of ASU 2017-09 on its consolidated financial statements, but does not expect the adoption of ASU 2017-09 to have material impact on it consolidated financial statements.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of earnings per common share	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Basic and diluted: Net income $ 338,000 $ 308,000 $ 654,000 $ 591,000 Weighted average common shares outstanding 2,792,656 2,776,546 2,791,824 2,776,053 Basic and dilutive net income per share $ 0.12 $ 0.11 $ 0.23 $ 0.21

LOANS AND ASSET QUALITY (Tables

LOANS AND ASSET QUALITY (Tables)	6 Months Ended
	Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans	At June 30, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 3,690 $ 49 $ - $ - $ 3,739 Commercial real estate 65,015 - - 640 65,655 Consumer and indirect 94,343 835 - 331 95,509 Residential real estate 102,816 1,699 57 2,556 107,128 $ 265,864 $ 2,583 $ 57 $ 3,527 $ 272,031 At December 31, 2016 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Commercial and industrial $ 4,679 $ - $ - $ - $ 4,679 Commercial real estate 68,775 - - 647 69,422 Consumer and indirect 82,134 992 - 456 83,582 Residential real estate 103,941 1,798 36 2,648 108,423 $ 259,529 $ 2,790 $ 36 $ 3,751 $ 266,106
Schedule of allowance for loan loss and the unearned income on loans	June 30, December 31, 2017 2016 (dollars in thousands) Troubled debt restructured loans $ 302 $ 312 Non-accrual and 90 days or more and still accruing loans to gross loans 1.32 % 1.43 % Allowance for credit losses to non-accrual and 90 days or more and still accruing loans 72.52 % 65.59 %
Schedule of impaired financing receivables	(dollars in thousands) June 30, 2017 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,385 1,414 - 451 1,426 Commercial - - - - - Consumer 182 182 2 65 231 Installment - - - - - Home Equity - - - - - Commercial 222 222 6 222 225 Total impaired loans with specific reserves $ 1,789 1,818 8 738 1,882 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,426 2,166 7 n/a 2,478 Commercial 1,367 1,519 17 n/a 1,558 Consumer 62 62 - n/a 101 Installment 87 87 - n/a 87 Home Equity - - - n/a - Commercial 2 2 - n/a 2 Total impaired loans with no specific reserve $ 2,944 3,836 24 - 4,226 (dollars in thousands) December 31, 2016 Recorded Unpaid Interest Specific Average Impaired loans with specific reserves: Real-estate - mortgage: Residential $ 1,393 1,422 58 252 1,442 Commercial - - - - - Consumer 128 128 - 50 167 Installment - - - - - Home Equity - - - - - Commercial 229 229 8 228 235 Total impaired loans with specific reserves $ 1,750 1,779 66 530 1,844 Impaired loans with no specific reserve: Real-estate - mortgage: Residential $ 1,479 2,219 21 n/a 2,463 Commercial 1,413 1,565 59 n/a 1,594 Consumer 182 182 - n/a 75 Installment 193 193 - n/a - Home Equity - - - n/a - Commercial - - - n/a - Total impaired loans with no specific reserve $ 3,267 4,159 80 - 4,132
Schedule of total allowance by loan segment	Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Provision for credit losses (27 ) 35 211 (45 ) (9 ) 165 Recoveries - - 177 27 - 204 Loans charged off - - (251 ) (3 ) - (254 ) Balance, end of quarter $ 257 $ 294 $ 1,013 $ 1,030 $ 5 $ 2,599 Individually evaluated for impairment: Balance in allowance $ 222 $ - $ 65 $ 451 $ - $ 738 Related loan balance 222 1,367 307 1,425 - 3,321 Collectively evaluated for impairment: Balance in allowance $ 35 $ 294 $ 948 $ 579 $ 5 $ 1,861 Related loan balance 3,517 64,288 95,202 105,703 - 268,710 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Unallocated Total Balance, beginning of year $ 305 $ 262 $ 804 $ 1,631 $ 148 $ 3,150 Provision for credit losses (30 ) 361 431 240 (134 ) 868 Recoveries 9 - 336 34 - 379 Loans charged off - (364 ) (695 ) (854 ) - (1,913 ) Balance, end of year $ 284 $ 259 $ 876 $ 1,051 $ 14 $ 2,484 Individually evaluated for impairment: Balance in allowance $ 229 $ - $ 50 $ 251 $ - $ 530 Related loan balance 229 1,413 503 2,872 - 5,017 Collectively evaluated for impairment: Balance in allowance $ 56 $ 259 $ 826 $ 799 $ 14 $ 1,954 Related loan balance 4,451 68,009 83,078 105,552 - 261,090
Schedule of non accrual loans	(Dollars in thousands) Commercial & Commercial Consumer & Residential Industrial Real Estate Indirect Real Estate Total December 31, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751 Transfer into non-accrual - - 353 125 478 Transfer to REO - - - - - Loans paid down/payoffs - (7 ) (115 ) (214 ) (336 ) Loans brought to accrual status - - (112 ) - (112 ) Loans charged off - - (251 ) (3 ) (254 ) June 30, 2017 $ - $ 640 $ 331 $ 2,556 $ 3,527 December 31, 2015 $ - $ 300 $ 596 $ 2,883 3,779 Transfer into non-accrual - 840 969 1,461 3,270 Transfer to REO - (114 ) - (126 ) (240 ) Loans paid down/payoffs - (15 ) (414 ) (716 ) (1,145 ) Loans brought to accrual status - - (25 ) (135 ) (160 ) Loans charged off - (364 ) (670 ) (719 ) (1,753 ) June 30, 2016 $ - $ 647 $ 456 $ 2,648 $ 3,751
Schedule of risk ratings of loans by categories of loans	Commercial Consumer June 30, 2017 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 3,517 $ 63,837 $ 94,194 $ 104,164 $ 265,712 Special mention - 334 848 493 1,675 Substandard 222 1,484 407 2,471 4,584 Doubtful - - 60 - 60 Loss - - - - - $ 3,739 $ 65,655 $ 95,509 $ 107,128 $ 272,031 Non-accrual - 640 331 2,556 3,527 Troubled debt restructures 222 - 33 47 302 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 33 $ 47 $ 80 Non-performing TDRs accounts - - 1 1 2 Commercial Consumer December 31, 2016 and Commercial and Residential (dollars in thousands) Industrial Real Estate Indirect Real Estate Total Pass $ 4,357 $ 64,208 $ 82,943 $ 105,225 $ 256,733 Special mention 94 3,801 276 527 4,698 Substandard 228 1,413 327 2,493 4,461 Doubtful - - 36 178 214 Loss - - - - - $ 4,679 $ 69,422 $ 83,582 $ 108,423 $ 266,106 Non-accrual - 647 456 2,648 3,751 Troubled debt restructures 228 - 36 48 312 Number of TDRs accounts 1 - 1 1 3 Non-performing TDRs $ - $ - $ 36 $ 48 $ 84 Non-performing TDRs accounts - - 1 1 2

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of changes in asset subject to fair value measurement by Level	Fair (dollars in thousands) Level 1 Level 2 Level 3 Value June 30, 2017 Recurring: Securities available for sale U.S. Treasury $ - $ 1,506 $ - $ 1,506 State and Municipal - 35,710 - 35,710 Mortgaged-backed - 53,413 - 53,413 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 4,733 4,733 OREO - 114 - 114 $ - $ 90,743 $ 4,763 $ 95,506 December 31, 2016 Recurring: Securities available for sale U.S. Treasury $ - $ 1,507 $ - $ 1,507 State and Municipal - 33,845 - 33,845 Mortgaged-backed - 59,255 - 59,255 Non-recurring: Maryland Financial Bank stock - - 30 30 Impaired loans - - 2,891 2,891 OREO - 114 - 114 $ - $ 94,721 $ 2,921 $ 97,642
Schedule of estimated fair values of financial instruments	June 30, 2017 December 31, 2016 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 14,487 $ 14,487 $ 6,946 $ 6,946 Interest-bearing deposits 728 728 479 479 Federal funds sold 2,123 2,123 3,197 3,197 Investment securities 90,629 90,629 94,607 94,607 Investments in restricted stock 1,410 1,410 1,230 1,230 Ground rents 156 156 164 164 Loans, net 268,421 266,740 262,574 259,017 Cash Value of life insurance 9,428 9,428 9,328 9,328 Accrued interest receivable 1,092 1,092 1,134 1,134 Financial liabilities: Deposits 335,481 317,448 333,237 315,418 Long-term borrowings 10,000 10,165 10,000 10,257 Short-term borrowings 15,000 15,065 10,000 10,188 Dividends payable - - - -
Schedule of fair value hierarchy of financial instruments	(dollars in thousands) Carrying Fair June 30, 2017 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 17,338 $ 17,338 $ 17,338 $ - $ - Loans receivable, net 268,421 266,740 - - 266,740 Cash value of life insurance 9,428 9,428 - 9,428 - Financial instruments - Liabilities Deposits 335,481 317,448 217,906 99,542 - Long-term debt 10,000 10,165 - 10,165 - Short-term debt 15,000 15,065 - 15,065 -
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position	Securities available for sale: Less than 12 months 12 months or more Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss U.S. Agency $ 500 $ 1 $ - $ - $ 500 $ 1 State and Municipal 7,461 178 1,398 45 8,859 223 Mortgage Backed 44,590 591 - - 44,590 591 $ 52,551 $ 770 $ 1,398 $ 45 $ 53,949 $ 815

EARNINGS PER SHARE - Basic earn

EARNINGS PER SHARE - Basic earnings per share of common stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Basic and diluted:
Net income	$ 338	$ 308	$ 654	$ 591
Weighted average common shares outstanding (in shares)	2,792,656	2,776,546	2,791,824	2,776,053
Basic and dilutive net income per share (in dollars per share)	$ 0.12	$ 0.11	$ 0.23	$ 0.21

LOANS AND ASSET QUALITY - Curre

LOANS AND ASSET QUALITY - Current, past due, and non-accrual loans by categories of loans and restructured loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 265,864	$ 259,529
90 Days or More and Still Accruing	57	36
Non-accrual	3,527	3,751	$ 3,751	$ 3,779
Total	272,031	266,106
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	2,583	2,790
Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,690	4,679
90 Days or More and Still Accruing
Non-accrual
Total	3,739	4,679
Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	49
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	65,015	68,775
90 Days or More and Still Accruing
Non-accrual	640	647	647	300
Total	65,655	69,422
Commercial real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due
Consumer and indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	94,343	82,134
90 Days or More and Still Accruing
Non-accrual	331	456
Total	95,509	83,582
Consumer and indirect | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	835	992
Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	102,816	103,941
90 Days or More and Still Accruing	57	36
Non-accrual	2,556	2,648	$ 2,648	$ 2,883
Total	107,128	108,423
Residential real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	$ 1,699	$ 1,798

LOANS AND ASSET QUALITY - Summa

LOANS AND ASSET QUALITY - Summary of Allowance for credit losses (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Troubled debt restructured loans	$ 302	$ 312
Non-accrual and 90 days or more and still accruing loans to gross loans	1.32%	1.43%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans	72.52%	65.59%

LOANS AND ASSET QUALITY - Sum22

LOANS AND ASSET QUALITY - Summary of recorded investment amount and related allowance for losses of impaired loans (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Impaired loans with specific reserves:
Recorded Investment	$ 1,789	$ 1,750
Unpaid Principal Balance	1,818	1,779
Interest Income Recognized	8	66
Specific Reserve	738	530
Average Recorded Investment	1,882	1,844
Impaired loans with no specific reserve:
Recorded Investment	2,944	3,267
Unpaid Principal Balance	3,836	4,159
Interest Income Recognized	24	80
Average Recorded Investment	4,226	4,132
Real-estate - mortgage | Residential
Impaired loans with specific reserves:
Recorded Investment	1,385	1,393
Unpaid Principal Balance	1,414	1,422
Interest Income Recognized		58
Specific Reserve	451	252
Average Recorded Investment	1,426	1,442
Impaired loans with no specific reserve:
Recorded Investment	1,426	1,479
Unpaid Principal Balance	2,166	2,219
Interest Income Recognized	7	21
Average Recorded Investment	2,478	2,463
Real-estate - mortgage | Commercial
Impaired loans with specific reserves:
Recorded Investment
Unpaid Principal Balance
Interest Income Recognized
Specific Reserve
Average Recorded Investment
Impaired loans with no specific reserve:
Recorded Investment	1,367	1,413
Unpaid Principal Balance	1,519	1,565
Interest Income Recognized	17	59
Average Recorded Investment	1,558	1,594
Consumer
Impaired loans with specific reserves:
Recorded Investment	182	128
Unpaid Principal Balance	182	128
Interest Income Recognized	2
Specific Reserve	65	50
Average Recorded Investment	231	167
Impaired loans with no specific reserve:
Recorded Investment	62	182
Unpaid Principal Balance	62	182
Interest Income Recognized
Average Recorded Investment	101	75
Installment
Impaired loans with specific reserves:
Recorded Investment
Unpaid Principal Balance
Interest Income Recognized
Specific Reserve
Average Recorded Investment
Impaired loans with no specific reserve:
Recorded Investment	87	193
Unpaid Principal Balance	87	193
Interest Income Recognized
Average Recorded Investment	87
Home Equity
Impaired loans with specific reserves:
Recorded Investment
Unpaid Principal Balance
Interest Income Recognized
Specific Reserve
Average Recorded Investment
Impaired loans with no specific reserve:
Recorded Investment
Unpaid Principal Balance
Interest Income Recognized
Average Recorded Investment
Commercial
Impaired loans with specific reserves:
Recorded Investment	222	229
Unpaid Principal Balance	222	229
Interest Income Recognized	6	8
Specific Reserve	222	228
Average Recorded Investment	225	235
Impaired loans with no specific reserve:
Recorded Investment	2
Unpaid Principal Balance	2
Interest Income Recognized
Average Recorded Investment	$ 2

LOANS AND ASSET QUALITY - Total

LOANS AND ASSET QUALITY - Total Allowance by Loan Segment (Details 3) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	$ 2,484	$ 3,150	$ 3,150
Provision for credit losses	165		868
Recoveries	204		379
Loans charged off	(254)	(1,753)	(1,913)
Balance, end of year	2,599		2,484
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	738		530
Individually evaluated for impairment, Related loan balance	3,321		5,017
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	1,861		1,954
Collectively evaluated for impairment, Related loan balance	268,710		261,090
Commercial and industrial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	284	305	305
Provision for credit losses	(27)		(30)
Recoveries			9
Loans charged off
Balance, end of year	257		284
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	222		229
Individually evaluated for impairment, Related loan balance	222		229
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	35		56
Collectively evaluated for impairment, Related loan balance	3,517		4,451
Commercial real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	259	262	262
Provision for credit losses	35		361
Recoveries
Loans charged off		(364)	(364)
Balance, end of year	294		259
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance
Individually evaluated for impairment, Related loan balance	1,367		1,413
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	294		259
Collectively evaluated for impairment, Related loan balance	64,288		68,009
Consumer and Indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	876	804	804
Provision for credit losses	211		431
Recoveries	177		336
Loans charged off	(251)	(670)	(695)
Balance, end of year	1,013		876
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	65		50
Individually evaluated for impairment, Related loan balance	307		503
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	948		826
Collectively evaluated for impairment, Related loan balance	95,202		83,078
Residential real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	1,051	1,631	1,631
Provision for credit losses	(45)		240
Recoveries	27		34
Loans charged off	(3)	(719)	(854)
Balance, end of year	1,030		1,051
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	451		251
Individually evaluated for impairment, Related loan balance	1,425		2,872
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	579		799
Collectively evaluated for impairment, Related loan balance	105,703		105,552
Unallocated
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	14	$ 148	148
Provision for credit losses	(9)		(134)
Recoveries
Loans charged off
Balance, end of year	5		14
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance
Individually evaluated for impairment, Related loan balance
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	5		14
Collectively evaluated for impairment, Related loan balance

LOANS AND ASSET QUALITY - Non-a

LOANS AND ASSET QUALITY - Non-accrual loans (Details 4) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	$ 3,751	$ 3,779	$ 3,779
Transfer into non-accrual	478	3,270
Transfer to REO		(240)
Loans paid down/payoffs	(336)	(1,145)
Loans brought to accrual status	(112)	(160)
Loans charged off	(254)	(1,753)	(1,913)
Balance	3,527	3,751	3,751
Commercial and industrial
Financing Receivable Nonaccrual Status [Roll Forward]
Balance
Transfer into non-accrual
Transfer to REO
Loans paid down/payoffs
Loans brought to accrual status
Loans charged off
Balance
Commercial real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	647	300	300
Transfer into non-accrual		840
Transfer to REO		(114)
Loans paid down/payoffs	(7)	(15)
Loans brought to accrual status
Loans charged off		(364)	(364)
Balance	640	647	647
Consumer and Indirect
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	456	596	596
Transfer into non-accrual	353	969
Transfer to REO
Loans paid down/payoffs	(115)	(414)
Loans brought to accrual status	(112)	(25)
Loans charged off	(251)	(670)	(695)
Balance	331	456	456
Residential real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	2,648	2,883	2,883
Transfer into non-accrual	125	1,461
Transfer to REO		(126)
Loans paid down/payoffs	(214)	(716)
Loans brought to accrual status		(135)
Loans charged off	(3)	(719)	(854)
Balance	$ 2,556	$ 2,648	$ 2,648

LOANS AND ASSET QUALITY - Risk

LOANS AND ASSET QUALITY - Risk ratings of loans by categories of loans (Details 5) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)AccountLoans	Dec. 31, 2016USD ($)AccountLoans	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 272,031	$ 266,106
Non-accrual	3,527	3,751	$ 3,751	$ 3,779
Troubled debt restructures	$ 302	$ 312
Number of TDRs accounts | Account	3	3
Non-performing TDRs | Loans	80	84
Non-performing TDRs accounts | Account	2	2
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 265,712	$ 256,733
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,675	4,698
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	4,584	4,461
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	60	214
Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Total	3,739	4,679
Non-accrual
Troubled debt restructures	$ 222	$ 228
Number of TDRs accounts | Account	1	1
Non-performing TDRs | Loans
Non-performing TDRs accounts | Account
Commercial and industrial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 3,517	$ 4,357
Commercial and industrial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		94
Commercial and industrial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	222	228
Commercial and industrial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Commercial and industrial | Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total	65,655	69,422
Non-accrual	640	647	647	300
Troubled debt restructures
Number of TDRs accounts | Account
Non-performing TDRs | Loans
Non-performing TDRs accounts | Account
Commercial real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 63,837	$ 64,208
Commercial real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	334	3,801
Commercial real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	1,484	1,413
Commercial real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total
Commercial real estate | Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Consumer and indirect
Financing Receivable, Recorded Investment [Line Items]
Total	95,509	83,582
Non-accrual	331	456
Troubled debt restructures	$ 33	$ 36
Number of TDRs accounts | Account	1	1
Non-performing TDRs | Loans	33	36
Non-performing TDRs accounts | Account	1	1
Consumer and indirect | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 94,194	$ 82,943
Consumer and indirect | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	848	276
Consumer and indirect | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	407	327
Consumer and indirect | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	60	36
Consumer and indirect | Loss
Financing Receivable, Recorded Investment [Line Items]
Total
Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total	107,128	108,423
Non-accrual	2,556	2,648	$ 2,648	$ 2,883
Troubled debt restructures	$ 47	$ 48
Number of TDRs accounts | Account	1	1
Non-performing TDRs | Loans	47	48
Non-performing TDRs accounts | Account	1	1
Residential real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 104,164	$ 105,225
Residential real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	493	527
Residential real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	2,471	2,493
Residential real estate | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total		178
Residential real estate | Loss
Financing Receivable, Recorded Investment [Line Items]
Total

LOANS AND ASSET QUALITY (Detail

LOANS AND ASSET QUALITY (Detail Textuals)	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)Account	Dec. 31, 2016USD ($)Account
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Less: Allowance for loan losses	$ 2,599,000	$ 2,484,000
Unearned income	$ 1,012,000	$ 1,048,000
Financing Receivable, Recorded Investment [Line Items]
Number of TDRs contracts | Account	3	3
Troubled debt restructures	$ 302,000	$ 312,000
Loans outstanding included in current and 30 - 89 days past due	1,112,000
Recorded Investment	2,944,000	3,267,000
Specific Reserve	738,000	530,000
Recorded Investment	1,789,000	1,750,000
Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans outstanding included in current and 30 - 89 days past due	222,000
Recorded Investment	2,000
Specific Reserve	222,000	228,000
Recorded Investment	222,000	229,000
Consumer
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment	62,000	182,000
Specific Reserve	65,000	50,000
Recorded Investment	$ 182,000	$ 128,000
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Number of TDRs contracts | Account
Troubled debt restructures
Loans outstanding included in current and 30 - 89 days past due	726,000
Specific Reserve	$ 222,000
Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Number of TDRs contracts | Account	1	1
Troubled debt restructures	$ 222,000	$ 228,000
Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Number of TDRs contracts | Account	1	1
Troubled debt restructures	$ 47,000	$ 48,000
Specific Reserve	$ 451,000
Consumer and indirect
Financing Receivable, Recorded Investment [Line Items]
Number of TDRs contracts | Account	1	1
Troubled debt restructures	$ 33,000	$ 36,000
Home Equity
Financing Receivable, Recorded Investment [Line Items]
Loans outstanding included in current and 30 - 89 days past due	164,000
Recorded Investment
Specific Reserve
Recorded Investment
Real-estate - mortgage | Residential
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment	1,426,000	1,479,000
Specific Reserve	451,000	252,000
Recorded Investment	1,385,000	1,393,000
Real-estate - mortgage | Commercial
Financing Receivable, Recorded Investment [Line Items]
Recorded Investment	1,367,000	1,413,000
Specific Reserve
Recorded Investment

FAIR VALUE - Changes in the ass

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 90,629	$ 94,607
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	90,743	94,721
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	4,763	2,921
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	95,506	97,642
Recurring | U.S. Treasury | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | U.S. Treasury | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,506	1,507
Recurring | U.S. Treasury | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | U.S. Treasury | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,506	1,507
Recurring | State and Municipal | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | State and Municipal | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	35,710	33,845
Recurring | State and Municipal | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | State and Municipal | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	35,710	33,845
Recurring | Mortgage-backed | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | Mortgage-backed | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	53,413	59,255
Recurring | Mortgage-backed | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale
Recurring | Mortgage-backed | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	53,413	59,255
Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock
Impaired loans
OREO
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock
Impaired loans
OREO	114	114
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	30	30
Impaired loans	4,733	2,891
OREO
Nonrecurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	30	30
Impaired loans	4,733	2,891
OREO	$ 114	$ 114

FAIR VALUE - Estimated fair val

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial assets - Carrying Amount
Cash and due from banks	$ 14,487	$ 6,946
Interest-bearing deposits	728	479
Federal funds sold	2,123	3,197
Investment securities	90,629	94,607
Investments in restricted stock	1,410	1,230
Ground rents	156	164
Loans, net	268,421	262,574
Cash value of life insurance	9,428	9,328
Accrued interest receivable	1,092	1,134
Financial liabilities - Carrying Amount
Deposits	335,481	333,237
Long-termborrowings	10,000	10,000
Short-term borrowings	15,000	10,000
Dividends payable
Financial assets - Fair Value
Cash and due from banks	14,487	6,946
Interest-bearing deposits	728	479
Federal funds sold	2,123	3,197
Investment securities	90,629	94,607
Investments in restricted stock	1,410	1,230
Ground rents	156	164
Loans, net	266,740	259,017
Cash value of life insurance	9,428	9,328
Accrued interest receivable	1,092	1,134
Financial liabilities - Fair Value
Deposits	317,448	315,418
Long-term borrowings	10,165	10,257
Short-term borrowings	15,065	10,188
Dividends payable

FAIR VALUE - Fair value hierarc

FAIR VALUE - Fair value hierarchy of financial instruments (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Financial assets - Carrying Amount
Cash and cash equivalents	$ 17,338	$ 10,622	$ 20,503	$ 12,371
Loans receivable, net	268,421	262,574
Cash value of life insurance	9,428
Financial liabilities - Carrying Amount
Deposits	335,481	333,237
Long-term debt	10,000	10,000
Short-term debt	15,000	10,000
Financial assets - Fair Value
Loans receivable, net	266,740	259,017
Financial liabilities - Fair Value
Deposits	317,448	315,418
Long-term debt	10,165	10,257
Short-term debt	15,065	$ 10,188
Fair Value
Financial assets - Fair Value
Cash and cash equivalents	17,338
Loans receivable, net	266,740
Cash value of life insurance	9,428
Financial liabilities - Fair Value
Deposits	317,448
Long-term debt	10,165
Short-term debt	15,065
Level 1 | Fair Value
Financial assets - Fair Value
Cash and cash equivalents	17,338
Loans receivable, net
Cash value of life insurance
Financial liabilities - Fair Value
Deposits	217,906
Long-term debt
Short-term debt
Level 2 | Fair Value
Financial assets - Fair Value
Cash and cash equivalents
Loans receivable, net
Cash value of life insurance	9,428
Financial liabilities - Fair Value
Deposits	99,542
Long-term debt	10,165
Short-term debt	15,065
Level 3 | Fair Value
Financial assets - Fair Value
Cash and cash equivalents
Loans receivable, net	266,740
Cash value of life insurance
Financial liabilities - Fair Value
Deposits
Long-term debt
Short-term debt

FAIR VALUE - Gross unrealized l

FAIR VALUE - Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (Details 3) $ in Thousands	Jun. 30, 2017USD ($)
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	$ 52,551
Less than 12 months Unrealized Loss	770
12 months or more Fair Value	1,398
12 months or more Unrealized Loss	45
Total Fair Value	53,949
Total Unrealized Loss	815
U.S. Agency
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	500
Less than 12 months Unrealized Loss	1
12 months or more Fair Value
12 months or more Unrealized Loss
Total Fair Value	500
Total Unrealized Loss	1
State and Municipal
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	7,461
Less than 12 months Unrealized Loss	178
12 months or more Fair Value	1,398
12 months or more Unrealized Loss	45
Total Fair Value	8,859
Total Unrealized Loss	223
Mortgage Backed
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	44,590
Less than 12 months Unrealized Loss	591
12 months or more Fair Value
12 months or more Unrealized Loss
Total Fair Value	44,590
Total Unrealized Loss	$ 591

FAIR VALUE (Detail Textuals)

FAIR VALUE (Detail Textuals)	6 Months Ended
	Jun. 30, 2017USD ($)LoansSecurity	Dec. 31, 2016USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of impaired loans classified as nonaccrual loans | Loans	28
Loans deemed to be impaired	$ 4,700,000
Specific reserve amount	738,000	$ 530,000
Impaired real estate loans	$ 2,800,000
Number of investment security in continuous unrealized loss position for more than 12 months | Security	4
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of discount rate	0.00%
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of discount rate	16.00%
Consumer and indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired loans includes nonaccrual, past due 90 days or more and still accruing	$ 155,000
Remaining impaired loan	1,920,000
Specific reserve amount	$ 288,000