Glen Burnie Bancorp (GLBZ) 10-Q 15 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 06, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	GLEN BURNIE BANCORP
Entity Central Index Key	890,066
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock Shares Outstanding		2,807,819
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 2,449	$ 2,610
Interest-bearing deposits in other financial institutions	6,079	9,995
Cash and Cash Equivalents	8,528	12,605
Investment securities available for sale, at fair value	90,329	89,349
Restricted equity securities, at cost	1,231	1,232
Loans, net of deferred fees and costs	275,716	271,612
Allowance for loan losses	(2,899)	(2,589)
Loans, net	272,817	269,023
Real estate acquired through foreclosure	114	114
Premises and equipment, net	3,271	3,371
Bank owned life insurance	8,290	8,713
Deferred tax assets, net	2,759	2,429
Accrued interest receivable	1,182	1,133
Accrued taxes receivable		465
Prepaid expenses	554	433
Other assets	1,295	583
Total Assets	390,370	389,450
LIABILITIES
Noninterest-bearing deposits	107,073	104,017
Interest-bearing deposits	229,097	230,221
Total Deposits	336,170	334,238
Short-term borrowings	20,000	20,000
Defined pension liability	341	335
Accrued taxes payable	134
Accrued expenses and other liabilities	538	835
Total Liabilities	357,183	355,408
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,804,456 and 2,801,149 shares as of March 31, 2018 and December 31, 2017 , respectively.	2,804	2,801
Additional paid-in capital	10,301	10,267
Retained earnings	21,581	21,605
Accumulated other comprehensive loss	(1,499)	(631)
Total Stockholders' Equity	33,187	34,042
Total Liabilities and Stockholders' Equity	$ 390,370	$ 389,450

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	2,804,456	2,801,149
Common stock, shares outstanding	2,804,456	2,801,149

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
INTEREST INCOME
Interest and fees on loans	$ 2,872	$ 2,774
Interest and dividends on securities	524	518
Interest on deposits with banks and federal funds sold	48	31
Total Interest Income	3,444	3,323
INTEREST EXPENSE
Interest on deposits	309	333
Interest on short-term borrowings	143	82
Interest on long-term borrowings		76
Total Interest Expense	452	491
Net Interest Income	2,992	2,832
Provision for loan losses	360	195
Net interest income after provision for loan losses	2,632	2,637
NONINTEREST INCOME
Gains on redemption of BOLI policies	207
Income on life insurance	44	49
Other income		2
Total Noninterest Income	486	279
NONINTEREST EXPENSE
Salary and benefits	1,721	1,421
Occupancy and equipment expenses	305	298
Legal, accounting and other professional fees	232	206
Data processing and item processing services	132	168
FDIC insurance costs	58	60
Advertising and marketing related expenses	17	31
Loan collection costs	41	18
Telephone costs	57	55
Other expenses	272	314
Total Noninterest Expenses	2,835	2,571
Income before income taxes	283	345
Income tax expense (benefit)	28	29
NET INCOME	$ 255	$ 316
Basic and diluted net income per share of common stock (in dollars per share)	$ 0.09	$ 0.11
Service charges on deposit accounts
NONINTEREST INCOME
Service charges, other fees and commissions	$ 67	$ 67
Other fees and commissions
NONINTEREST INCOME
Service charges, other fees and commissions	$ 168	$ 161

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 255	$ 316
Net unrealized (loss) gain on securities available for sale:
Net unrealized (loss) gain on securities during the period	(1,596)	69
Income tax benefit (loss) relating to item above	439	(27)
Net effect on other comprehensive (loss) income	(1,157)	42
Net unrealized gain on interest rate swap:
Net unrealized gain on interest rate swap during the period	398
Income tax expense relating to item above	(109)
Net effect on other comprehensive income	289
Other comprehensive (loss) income	(868)	42
Comprehensive (loss) income	$ (613)	$ 358

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balances at Dec. 31, 2016	$ 2,787	$ 10,130	$ 21,707	$ (810)	$ 33,814
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			316		316
Cash dividends, $0.10 per share			(278)		(278)
Dividends reinvested under dividend reinvestment plan	3	34			37
Other comprehensive income (loss)				42	42
Balances at Mar. 31, 2017	2,790	10,164	21,745	(768)	33,931
Balances at Dec. 31, 2017	2,801	10,267	21,605	(631)	34,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			255		255
Cash dividends, $0.10 per share			(279)		(279)
Dividends reinvested under dividend reinvestment plan	3	34			37
Other comprehensive income (loss)				(868)	(868)
Balances at Mar. 31, 2018	$ 2,804	$ 10,301	$ 21,581	$ (1,499)	$ 33,187

CONSOLIDATED STATEMENT OF CHAN7

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends, per share	$ 0.10	$ 0.10

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 255	$ 316
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion of premises and equipment	319	267
Provision for loan losses	360	195
Deferred income taxes, net		(42)
Gain on life insurance	(207)
Decrease (increase) in cash surrender value of bank owned life insurance	424	(49)
Reclassification adjustment for stranded income tax effects in accumulated other comprehensive income
Decrease in ground rents	3	5
Decrease (increase) in accrued interest receivable	(49)	19
Net decrease (increase) in other assets	234	611
Net (increase) decrease in accrued expenses and other liabilities	(175)	(371)
Net cash provided by operating activities	1,164	951
Cash flows from investing activities:
Redemptions and maturities of investment securities available for sale	2,663	4,779
Purchases of investment securities available for sale	(5,440)	(1,310)
Net (redemption) purchase of Federal Home Loan Bank stock	2	2
Net increase in loans	(4,138)	(4,726)
Purchases of premises and equipment	(19)	(89)
Net cash (used in) provided by investing activities	(6,932)	(1,344)
Cash flows from financing activities:
Net increase (decrease) in deposits	1,932	7,341
Increase in short term borrowings		20,000
Decrease in long term borrowings		(20,000)
Cash dividends paid	(279)	(278)
Common stock dividends reinvested	38	38
Net cash provided by (used in) financing activities	1,691	7,101
Net increase (decrease) in cash and cash equivalents	(4,077)	6,708
Cash and cash equivalents at beginning of year	12,605	10,622
Cash and cash equivalents at end of year	8,528	17,330
Supplemental Disclosures of Cash Flow Information:
Interest paid on deposits and borrowings	441	494
Income taxes refunded	(583)
Net (increase) decrease in unrealized depreciation on available for sale securities	$ (1,198)	$ 69

ORGANIZATIONAL

ORGANIZATIONAL	3 Months Ended
	Mar. 31, 2018
ORGANIZATIONAL
ORGANIZATIONAL.	NOTE 1 – ORGANIZATIONAL Nature of Business Glen Burnie Bancorp (the “Company”) is a bank holding company organized in 1990 under the laws of the State of Maryland. The Company owns all the outstanding shares of capital stock of The Bank of Glen Burnie (the “Bank”), a commercial bank organized in 1949 under the laws of the State of Maryland (the “State”). The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland, and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2 – BASIS OF PRESENTATION In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2018 and December 31, 2017, the results of operations for the three-month periods ended March 31, 2018 and 2017, and the statements of cash flows for the three-month periods ended March 31, 2018 and 2017. The operating results for the three-month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 or any future interim period. The consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on April 2, 2018. The unaudited consolidated financial statements for March 31, 2018 and 2017, the consolidated balance sheet at December 31, 2017, and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, The Bank of Glen Burnie and GBB Properties. Consolidation resulted in the elimination of all intercompany accounts and transactions. Cash Flow Presentation In the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal Home Loan Bank of Atlanta (“FHLB Atlanta”) overnight deposits, and federal funds sold. Generally, federal funds are sold for one-day periods. Reclassifications Certain items in the 2017 consolidated financial statements have been reclassified to conform to the 2018 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings. 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and liabilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 3 – EARNINGS PER SHARE Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options computed using the treasury stock method). Three Months Ended March 31, 2018 2017 Basic and diluted earnings per share: Net income $ 255,469 $ 315,786 Weighted average common shares outstanding 2,802,509 2,789,012 Basic and dilutive net income per share $ 0.09 $ 0.11 Diluted earnings per share calculations were not required for the three-month periods ended March 31, 2018 and 2017, as there were no stock options outstanding.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES
INVESTMENT SECURITIES	NOTE 4 – INVESTMENT SECURITIES Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities at March 31, 2018 or December 31, 2017. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company held no held-to-maturity securities at March 31, 2018 or December 31, 2017. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. The following table summarizes the amortized cost and estimated fair value of the Company’s investment securities portfolio at March 31, 2018 and December 31, 2017: At March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Residential mortgage-backed securities $ 49,081 $ 18 $ (1,857) $ 47,242 State and municipal 35,392 81 (607) 34,866 U.S. Government agency 6,870 — (135) 6,735 U.S. Treasury 1,501 — (15) 1,486 Total securities available for sale $ 92,844 $ 99 $ (2,614) $ 90,329 At December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Residential mortgage-backed securities $ 49,788 $ 24 $ (1,069) $ 48,743 Municipal securities 35,453 339 (159) 35,633 U.S. Government agency securities 3,526 — (46) 3,480 U.S. Treasury securities 1,501 — (8) 1,493 Total securities available for sale $ 90,268 $ 363 $ (1,282) $ 89,349 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 March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Residential mortgage-backed securities $ 14,707 $ (402) $ 31,610 $ (1,456) $ 46,317 $ (1,858) Municipal securities 17,903 (336) 6,079 (271) 23,982 (607) U.S. Government agency securities 6,230 (125) 506 (9) 6,736 (134) U.S. Treasury securities 1,486 (15) — — 1,486 (15) $ 40,326 $ (878) $ 38,195 $ (1,736) $ 78,521 $ (2,614) December 31, 2017 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Residential mortgage-backed securities $ 13,333 $ (143) $ 33,896 $ (927) $ 47,229 $ (1,070) Municipal securities 2,396 (11) 6,230 (148) 8,626 (159) U.S. Government agency securities 2,965 (37) 515 (9) 3,480 (46) U.S. Treasury securities 1,494 (7) — — 1,494 (7) $ 20,188 $ (198) $ 40,641 $ (1,084) $ 60,829 $ (1,282) 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 its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2018, the Company recorded unrealized losses in its portfolio of debt securities totaling $2.6 million related to 152 securities, which resulted from increases in market interest rates, spread volatility, and other factors that management deems to be temporary. Management does not believe the securities are impaired due to reasons of credit quality. Since management believes that it is more likely than not that the Company will not be required to sell these securities prior to maturity or a full recovery of the amortized cost, the Company does not consider these securities to be other-than-temporarily impaired. At December 31, 2017, the Company recorded unrealized losses in its portfolio of debt securities totaling $1.3 million related to 114 securities, which resulted from increases in market interest rates, spread volatility, and other factors that management deems to be temporary. Management does not believe the securities are impaired due to reasons of credit quality. Since management believes that it is more likely than not that the Company will not be required to sell these securities prior to maturity or a full recovery of the amortized cost, the Company does not consider these securities to be other-than-temporarily impaired. Contractual maturities of debt securities at March 31, 2018 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. At March 31, 2018 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 1,197 $ 1,207 3.84 % Over one to five years 1,817 1,793 1.71 % Over five to ten years 18,097 17,582 2.23 % Over ten years 71,733 69,747 2.74 % Total debt securities $ 92,844 $ 90,329 _____________________ (1) Yields are stated as book yields which are adjusted for amortization and accretion of purchase premiums and discounts, respectively. (2) Yields on tax-exempt obligations have been computed on a tax-equivalent basis.

LOANS RECEIVABLE AND ALLOWANCE

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2018
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	NOTE 5 – LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The fundamental lending business of the Company is based on understanding, measuring, and controlling the credit risk inherent in the loan portfolio. The Company's loan portfolio is subject to varying degrees of credit risk. These risks entail both general risks, which are inherent in the lending process, and risks specific to individual borrowers. The Company's credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type. The Company currently manages its credit products and the respective exposure to loan losses by the following specific portfolio segments, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for loan losses. The Company considers each loan type to be a portfolio segment having unique risk characteristics. March 31, December 31, 2018 2017 (dollars in thousands) $ % $ % Consumer $ 15,730 5 $ 16,112 Residential real estate 82,151 30 81,926 Indirect 90,278 33 85,186 Commercial 11,176 4 11,257 Construction 4,385 2 3,536 Commercial real estate 71,996 26 73,595 Total Loans 275,716 100 271,612 100 Allowance for credit losses (2,899) (2,589) Net Loans $ 272,817 $ 269,023 The Bank’s net loans totaled $272.8 million at March 31, 2018, compared to $269.0 million at December 31, 2017, an increase of $3.8 million (1.41%). Indirect loans increased from $85.2 million to $90.3 million ($5.1 million or 5.98%). Construction loans increased from $3.5 million to $4.4 million ($0.9 million or 24.03%). Commercial real estate loans decreased from $73.6 million to $72.0 million ($1.6 or 2.17%) as loan payoffs outpaced loan originations. Credit Risk and Allowance for Credit Losses . Credit risk is the risk of loss arising from the inability of a borrower to meet his or her obligations and entails both general risks, which are inherent in the process of lending, and risks specific to individual borrowers. Credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry, or collateral type. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and for that reason, the Bank has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations. The allowance for credit losses is established through a provision for credit losses charged to expense. Loans are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. The allowance, based on evaluations of the collectability of loans and prior loan loss experience, is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The evaluations are performed for each class of loans and take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, value of collateral securing the loans and current economic conditions and trends that may affect the borrowers’ ability to pay. For example, delinquencies in unsecured loans and indirect automobile installment loans will be reserved for at significantly higher ratios than loans secured by real estate. Based on that analysis, the Bank deems its allowance for credit losses in proportion to the total non-accrual loans and past due loans to be sufficient. For purposes of determining the allowance for credit losses, the Bank has segmented the loan portfolio into the following classifications: · Consumer · Residential Real Estate · Indirect · Commercial · Construction · Commercial Real Estate Each of these segments are reviewed and analyzed quarterly using the average historical charge-offs over a four year period for their respective segments as well as the following qualitative factors: · Changes in asset quality metrics including past due (30-89 days) loans, nonaccrual loans, classified assets, watch list loans all in relation to total loans. Also policy exceptions in relationship to loan volume. · Changes in the rate and direction of the loan volume by portfolio segment. · Concentration of credit including the concentration percentages, changes in concentration and concentrations relative to goals. · Changes in macro-economic factors including the rates and direction of unemployment, median income and population. · Changes in internal factors including external loan review required reserve changes, internal review penetration, internal required reserve changes, and weighted required reserve trends. · Changes in rate and direction of charge offs and recoveries. Transactions in the allowance for credit losses for the three months ended March 31, 2018 and the year ended December 31, 2017 were as follows: March 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Unallocated Total Balance, beginning of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ — $ 2,589 Charge-offs (62) — (39) — — — — (101) Recoveries 5 2 44 — — — — 51 Provision for loan losses 56 (3) 14 8 (8) 293 — 360 Balance, end of year $ 213 $ 1,060 $ 793 $ 245 $ 4 $ 584 $ — $ 2,899 Individually evaluated for impairment: Balance in allowance $ 29 $ 513 $ — $ 214 $ — $ 305 $ — $ 1,061 Related loan balance 99 2,323 — 214 — 3,146 — 5,782 Collectively evaluated for impairment: Balance in allowance $ 184 $ 547 $ 793 $ 31 $ 4 $ 279 $ — $ 1,838 Related loan balance 15,631 79,828 90,278 10,962 4,385 68,850 — 269,934 December 31, 2017 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Unallocated Total Balance, beginning of year $ 182 $ 1,042 $ 693 $ 284 $ 10 $ 259 $ 14 $ 2,484 Charge-offs (96) (3) (458) (9) — — — (566) Recoveries 8 27 286 — — 14 — 335 Provision for loan losses 120 (5) 253 (38) 2 18 (14) 336 Balance, end of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ — $ 2,589 Individually evaluated for impairment: Balance in allowance $ 52 $ 513 $ — $ 217 $ — $ — $ — $ 782 Related loan balance 160 2,345 — 217 — 1,176 — 3,898 Collectively evaluated for impairment: Balance in allowance $ 162 $ 548 $ 774 $ 20 $ 12 $ 291 $ — $ 1,807 Related loan balance 15,952 79,580 85,186 11,040 3,536 72,420 — 267,714 Management believes the allowance for credit losses is at an appropriate level to absorb inherent probable losses in the portfolio. March 31, March 31, (dollars in thousands) 2018 2017 Average loans $ 273,964 $ 267,494 Net charge offs to average loans (annualized) 0.07 % 0.12 % During the first quarter of 2018, loans to 7 borrowers and related entities totaling approximately $101,000 were determined to be uncollectible and were charged off. During the first quarter of 2017, loans to 11 borrowers and related entities totaling approximately $170,000 were determined to be uncollectible and were charged off. Reserve for Unfunded Commitments . Loan commitments and unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. The Bank generally requires collateral to support financial instruments with credit risk on the same basis as it does for on-balance sheet instruments. The collateral requirement is based on management's credit evaluation of the counter party. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of March 31, 2018 and 2017, the Bank had outstanding commitments totaling $24.7 million and $26.5 million, respectively. These outstanding commitments consisted of letters of credit, undrawn lines of credit, and other loan commitments. The following table shows the Bank’s reserve for unfunded commitments arising from these transactions: Three Months Ended March 31, (dollars in thousands) 2018 2017 Beginning balance $ 24 $ 25 Reduction of unfunded reserve (18) — Provisions charged to operations 6 17 Ending balance $ 12 $ 42 Contractual Obligations and Commitments. No material changes, outside the normal course of business, have been made during the first quarter of 2018. Asset Quality . The following tables set forth the amount of the Bank’s current, past due, and non-accrual loans by categories of loans and restructured loans, at the dates indicated. At March 31, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 15,469 $ 110 $ — $ 151 $ 15,730 Residential Real Estate 79,767 94 — 2,290 82,151 Indirect 89,557 577 — 144 90,278 Commercial 11,122 — 6 48 11,176 Construction 4,014 — 53 318 4,385 Commercial Real Estate 67,506 2,000 — 2,490 71,996 $ 267,435 $ 2,781 $ 59 $ 5,441 $ 275,716 At December 31, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 15,823 $ 80 $ 24 $ 185 $ 16,112 Residential Real Estate 79,205 597 — 2,124 81,926 Indirect 83,932 1,166 — 88 85,186 Commercial 11,203 — 6 48 11,257 Construction 3,188 — 30 318 3,536 Commercial Real Estate 73,088 — — 507 73,595 $ 266,439 $ 1,843 $ 60 $ 3,270 $ 271,612 The balances in the above charts have not been reduced by the allowance for loan loss. For the period ending March 31, 2018, the allowance for loan loss is $2.9 million. For the period ending December 31, 2017, the allowance for loan loss is $2.6 million. At March 31, 2018, there was $1.0 million in loans outstanding, that were in an accrual status, but 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 $1.0 million are as follows: $667,000 Residential 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; $160,000 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 $214,000 Commercial Real Estate loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $214,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at March 31, 2018 are comprised of: Consumer loans – Two loans to two borrowers in the amount of $99,500 with specific reserves of $29,278 established for the loans. Residential Real Estate – One loan to one borrower in the amount of $1.3 million, secured by residential property with a specific reserve of $513,000 established for the loan. Commercial loans – One loan to one borrower in the amount of $214,000 with specific reserves of $214,000 established for the loan. Commercial Real Estate – One loan to one borrower in the amount of $2.0 million with specific reserves of $305,000 established for the loan. Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at March 31, 2018 and December 31, 2017. March 31, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 100 $ 100 $ — $ 29 $ 137 Residential Real Estate 1,294 1,294 — 513 1,306 Commercial 214 214 3 214 215 Commercial Real Estate 2,000 2,000 14 305 3,103 Total impaired loans with specific reserves 3,608 3,608 17 1,061 4,761 Impaired loans with no specific reserve: Residential Real Estate $ 977 $ 1,403 $ 2 $ — $ 1,566 Indirect 144 144 — — — Construction 236 236 — — 236 Commercial Real Estate 1,238 1,548 9 — 1,666 Total impaired loans with no specific reserve $ 2,595 $ 3,331 $ 11 — $ 3,468 December 31, 2017 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 160 $ 160 $ 5 $ 52 $ 205 Residential Real Estate 1,294 1,322 — 513 1,312 Commercial 217 217 — 217 223 Total impaired loans with specific reserves 1,671 1,699 5 782 1,740 Impaired loans with no specific reserve: Consumer $ 49 $ 49 $ — — $ — Residential Real Estate 992 1,760 11 — 1,572 Indirect 88 88 — — — Commercial 2 2 — — 2 Construction 318 318 — — 322 Commercial Real Estate 1,194 1,194 39 — 1,632 Total impaired loans with no specific reserve $ 2,643 $ 3,411 $ 50 — $ 3,528 March 31, December 31, (dollars in thousands) 2018 2017 Troubled debt restructured loans $ 260 $ 263 Non-accrual and 90+ days past due and still accruing loans to gross loans 2.09 % 1.32 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 52.70 % 77.70 % At March 31, 2018, there were two troubled debt restructured loans consisting of a commercial loan of $214,000 and a consumer loan of $46,000. The consumer loan is in a nonaccrual status. Following is a table showing activity for non-accrual loans for the quarters ended March 31, 2017 and 2018. Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Totals December 31, 2016 403 2,508 193 — — 647 3,751 Transfers into nonaccrual 4 — 229 — 170 48 451 Loans paid down/payoffs (12) (31) (42) — — (10) (95) Loans returned to accrual status — (132) (33) — — — (165) Loans charged off — (3) (167) — — — (170) March 31, 2017 395 2,342 180 — 170 685 3,772 December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 38 183 160 — — 2,000 2,381 Loans paid down/payoffs (9) (17) (33) — — (17) (76) Loans returned to accrual status — — (37) — — — (37) Loans charged off (63) — (34) — — — (97) March 31, 2018 151 2,290 144 48 318 2,490 5,441 Other Real Estate Owned. At March 31, 2018, the Company had $114,000 in real estate acquired in partial or total satisfaction of debt, unchanged from $114,000 at December 31, 2017. All such properties are initially recorded at the lower of cost or fair value (net realizable value) at the date acquired and carried on the balance sheet as other real estate owned. Losses arising at the date of acquisition are charged against the allowance for credit losses. Subsequent write-downs that may be required and expense of operation are included in noninterest expense. Gains and losses realized from the sale of other real estate owned are included in noninterest expense. Credit Quality Information In addition to monitoring the performance status of the loan portfolio, the Company utilizes a risk rating scale (1-8) to evaluate loan asset quality for all loans. Loans that are rated 1-4 are classified as pass credits. For the pass rated loans, management believes there is a low risk of loss related to these loans and, as necessary, credit may be strengthened through improved borrower performance and/or additional collateral. 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) The following table provides information with respect to the Company's credit quality indicators by class of the loan portfolio at March 31, 2018: March 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 15,574 $ 81,612 $ 89,345 $ 11,175 $ 4,385 $ 71,672 $ 273,763 Special mention 97 217 561 1 — 324 1,200 Substandard 14 322 321 — — — 657 Doubtful 45 — 51 — — — 96 Loss — — — — — — — $ 15,730 $ 82,151 $ 90,278 $ 11,176 $ 4,385 $ 71,996 $ 275,716 Nonaccrual 151 2,290 144 48 318 2,490 5,441 Troubled debt restructures 46 — — 214 — — 260 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 46 — — — — — 46 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2017 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 16,008 $ 81,346 $ 83,803 $ 11,256 $ 3,536 $ 73,268 $ 269,217 Special mention 77 344 1,027 1 — 327 1,776 Substandard 3 236 315 — — — 554 Doubtful 24 — 41 — — — 65 Loss — — — — — — — $ 16,112 $ 81,926 $ 85,186 $ 11,257 $ 3,536 $ 73,595 $ 271,612 Nonaccrual 185 2,124 88 48 318 507 3,270 Troubled debt restructures 46 — — 217 — — 263 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 46 — — — — — 46 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2018
FAIR VALUE.
Fair Value Measurements	NOTE 6 – FAIR VALUE ASC Topic 820 provides a framework for measuring and disclosing fair value under GAAP. ASC 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or a nonrecurring basis (for example, impaired loans). ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The 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 – Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. · Level 2 – 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) The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Investment Securities Available-for-Sale. Investment securities available-for-sale and interest rate swap contracts are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage backed securities issued by government sponsored entities, municipal bonds and corporate debt securities, and interest rate swap contracts. Securities classified as Level 3 include asset-backed securities in illiquid markets. The Bank may 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. Loans. At March 31, 2018, these assets include 21 loans, excluding $464,000 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 ($5.8 million of loans with $832,000 of specific reserves as of March 31, 2018) 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 ($2.1 million of the total impaired loans as of March 31, 2018). 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 ($3.5 million with $1.1 million of specific reserves as of March 31, 2018) 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 March 31, 2018 Recurring: Securities available for sale U.S. Treasury $ — $ 1,486 $ — $ 1,486 State and Municipal — 34,866 — 34,866 Mortgaged-backed — 53,977 — 53,977 Interest rate swap — 447 — 447 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 5,142 5,142 OREO — 114 — 114 $ — $ 90,890 $ 5,172 $ 96,062 December 31, 2017 Recurring: Securities available for sale U.S. Treasury $ — $ 1,493 $ — $ 1,493 State and Municipal — 35,633 — 35,633 Mortgaged-backed — 52,223 — 52,223 Interest rate swap — 49 — 49 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 3,532 3,532 OREO — 114 — 114 $ — $ 89,512 $ 3,562 $ 93,074 The estimated fair values of the Company’s financial instruments at March 31, 2018 and December 31, 2017 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. March 31, 2018 December 31, 2017 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,449 $ 2,449 $ 2,610 $ 2,610 Interest-bearing deposits in other financial institutions 5,896 5,896 9,846 9,846 Federal funds sold 183 183 149 149 Investment securities available for sale 90,329 90,329 89,349 89,349 Investments in restricted stock 1,231 1,231 1,232 1,232 Ground rents 150 150 153 153 Loans, less allowance for credit losses 272,817 271,053 269,023 275,819 Accrued interest receivable 1,182 1,182 1,133 1,133 Cash value of life insurance 8,290 8,290 8,713 8,713 Financial liabilities: Deposits 336,170 315,964 334,238 324,512 Long-term borrowings — — — — Short-term borrowings 20,000 20,781 20,000 20,739 Accrued interest payable 112 112 101 101 Unrecognized financial instruments: Commitments to extend credit 22,210 22,210 19,109 19,109 Standby letters of credit 84 84 71 71 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 March 31, 2018 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 8,528 $ 8,528 $ 8,528 — $ — Loans receivable, net 272,817 271,053 — — 271,053 Cash value of life insurance 8,290 8,290 — 8,290 — Financial instruments - Liabilities Deposits 336,170 315,964 224,098 91,866 — Short-term debt 20,000 20,781 — 20,781 — 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.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 7 – 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 was effective for the Company on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2016‑1, “No. 2016‑01, Financial Instruments – Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in a accordance with the fair value option for financial instruments. ASU 2016-01 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company adopted ASU 2016-01 on January 1, 2018 and it did not have a material impact on the consolidated financial statement. The Bank’s equity securities are membership stocks in the Federal Home Loan Bank and Maryland Financial Bank and thereby excluded from fair value pricing. For exit pricing on loans, the Company used data on recent originations which captured expectations of the credit risk “premium” and an analysis of prepayments which captures the Company’s historical prepayment experience. 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.” ASU 2016‑05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016‑05 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. 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 016‑09 was effective on January 1, 2017 and did not have a significant impact on our 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’s adoption of this guidance did not have a material effect on the Company’s consolidated 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 was effective for us on January 1, 2018 and did not 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 was effective for us on January 1, 2018 and did not 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 assessing the impact of the new guidance on its condensed consolidated financial statements. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This standard better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedge instruments and the hedged item in the financial statements. Adoption for this ASU is required for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The ASU does not have any impact on the underlying ASC 740 guidance that requires the effect of a change in tax law be included in income from continuing operations. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted the guidance in the ASU in its December 31, 2017 consolidated financial statements resulting in a reclassification of $0.1 million of stranded tax effects related to net unrealized losses on investment securities. The impact was not material.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of presentation	– BASIS OF PRESENTATION In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2018 and December 31, 2017, the results of operations for the three-month periods ended March 31, 2018 and 2017, and the statements of cash flows for the three-month periods ended March 31, 2018 and 2017. The operating results for the three-month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018 or any future interim period. The consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on April 2, 2018. The unaudited consolidated financial statements for March 31, 2018 and 2017, the consolidated balance sheet at December 31, 2017, and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, The Bank of Glen Burnie and GBB Properties. Consolidation resulted in the elimination of all intercompany accounts and transactions.
Cash Flow Presentation	Cash Flow Presentation In the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal Home Loan Bank of Atlanta (“FHLB Atlanta”) overnight deposits, and federal funds sold. Generally, federal funds are sold for one-day periods.
Reclassifications	Reclassifications Certain items in the 2017 consolidated financial statements have been reclassified to conform to the 2018 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings.
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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and liabilities.
Recent Accounting Pronouncements and Developments	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 was effective for the Company on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2016‑1, “No. 2016‑01, Financial Instruments – Overall (Subtopic 825‑10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in a accordance with the fair value option for financial instruments. ASU 2016-01 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company adopted ASU 2016-01 on January 1, 2018 and it did not have a material impact on the consolidated financial statement. The Bank’s equity securities are membership stocks in the Federal Home Loan Bank and Maryland Financial Bank and thereby excluded from fair value pricing. For exit pricing on loans, the Company used data on recent originations which captured expectations of the credit risk “premium” and an analysis of prepayments which captures the Company’s historical prepayment experience. 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.” ASU 2016‑05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under ASC Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016‑05 was effective for us on January 1, 2017 and did not have a significant impact on our financial statements. 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 016‑09 was effective on January 1, 2017 and did not have a significant impact on our 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’s adoption of this guidance did not have a material effect on the Company’s consolidated 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 was effective for us on January 1, 2018 and did not 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 was effective for us on January 1, 2018 and did not 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 assessing the impact of the new guidance on its condensed consolidated financial statements. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This standard better aligns an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedge instruments and the hedged item in the financial statements. Adoption for this ASU is required for fiscal years and interim periods beginning after December 15, 2018 and early adoption is permitted. The Company is currently assessing the impact of the new guidance on its condensed consolidated financial statements. ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The ASU does not have any impact on the underlying ASC 740 guidance that requires the effect of a change in tax law be included in income from continuing operations. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted and should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company adopted the guidance in the ASU in its December 31, 2017 consolidated financial statements resulting in a reclassification of $0.1 million of stranded tax effects related to net unrealized losses on investment securities. The impact was not material.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
Schedule of earnings per common share	Three Months Ended March 31, 2018 2017 Basic and diluted earnings per share: Net income $ 255,469 $ 315,786 Weighted average common shares outstanding 2,802,509 2,789,012 Basic and dilutive net income per share $ 0.09 $ 0.11

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT SECURITIES
Schedule of summary of investment securities	At March 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Residential mortgage-backed securities $ 49,081 $ 18 $ (1,857) $ 47,242 State and municipal 35,392 81 (607) 34,866 U.S. Government agency 6,870 — (135) 6,735 U.S. Treasury 1,501 — (15) 1,486 Total securities available for sale $ 92,844 $ 99 $ (2,614) $ 90,329 At December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Residential mortgage-backed securities $ 49,788 $ 24 $ (1,069) $ 48,743 Municipal securities 35,453 339 (159) 35,633 U.S. Government agency securities 3,526 — (46) 3,480 U.S. Treasury securities 1,501 — (8) 1,493 Total securities available for sale $ 90,268 $ 363 $ (1,282) $ 89,349
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position	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 March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Residential mortgage-backed securities $ 14,707 $ (402) $ 31,610 $ (1,456) $ 46,317 $ (1,858) Municipal securities 17,903 (336) 6,079 (271) 23,982 (607) U.S. Government agency securities 6,230 (125) 506 (9) 6,736 (134) U.S. Treasury securities 1,486 (15) — — 1,486 (15) $ 40,326 $ (878) $ 38,195 $ (1,736) $ 78,521 $ (2,614) December 31, 2017 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Residential mortgage-backed securities $ 13,333 $ (143) $ 33,896 $ (927) $ 47,229 $ (1,070) Municipal securities 2,396 (11) 6,230 (148) 8,626 (159) U.S. Government agency securities 2,965 (37) 515 (9) 3,480 (46) U.S. Treasury securities 1,494 (7) — — 1,494 (7) $ 20,188 $ (198) $ 40,641 $ (1,084) $ 60,829 $ (1,282)
Schedule of contractual maturities of investment securities	Contractual maturities of debt securities at March 31, 2018 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. At March 31, 2018 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 1,197 $ 1,207 3.84 % Over one to five years 1,817 1,793 1.71 % Over five to ten years 18,097 17,582 2.23 % Over ten years 71,733 69,747 2.74 % Total debt securities $ 92,844 $ 90,329 _____________________ (1) Yields are stated as book yields which are adjusted for amortization and accretion of purchase premiums and discounts, respectively. (2) Yields on tax-exempt obligations have been computed on a tax-equivalent basis.

LOANS RECEIVABLE AND ALLOWANC19

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2018
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Schedule of major categories of loans	March 31, December 31, 2018 2017 (dollars in thousands) $ % $ % Consumer $ 15,730 5 $ 16,112 Residential real estate 82,151 30 81,926 Indirect 90,278 33 85,186 Commercial 11,176 4 11,257 Construction 4,385 2 3,536 Commercial real estate 71,996 26 73,595 Total Loans 275,716 100 271,612 100 Allowance for credit losses (2,899) (2,589) Net Loans $ 272,817 $ 269,023
Schedule of total allowance by loan segment	March 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Unallocated Total Balance, beginning of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ — $ 2,589 Charge-offs (62) — (39) — — — — (101) Recoveries 5 2 44 — — — — 51 Provision for loan losses 56 (3) 14 8 (8) 293 — 360 Balance, end of year $ 213 $ 1,060 $ 793 $ 245 $ 4 $ 584 $ — $ 2,899 Individually evaluated for impairment: Balance in allowance $ 29 $ 513 $ — $ 214 $ — $ 305 $ — $ 1,061 Related loan balance 99 2,323 — 214 — 3,146 — 5,782 Collectively evaluated for impairment: Balance in allowance $ 184 $ 547 $ 793 $ 31 $ 4 $ 279 $ — $ 1,838 Related loan balance 15,631 79,828 90,278 10,962 4,385 68,850 — 269,934 December 31, 2017 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Unallocated Total Balance, beginning of year $ 182 $ 1,042 $ 693 $ 284 $ 10 $ 259 $ 14 $ 2,484 Charge-offs (96) (3) (458) (9) — — — (566) Recoveries 8 27 286 — — 14 — 335 Provision for loan losses 120 (5) 253 (38) 2 18 (14) 336 Balance, end of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ — $ 2,589 Individually evaluated for impairment: Balance in allowance $ 52 $ 513 $ — $ 217 $ — $ — $ — $ 782 Related loan balance 160 2,345 — 217 — 1,176 — 3,898 Collectively evaluated for impairment: Balance in allowance $ 162 $ 548 $ 774 $ 20 $ 12 $ 291 $ — $ 1,807 Related loan balance 15,952 79,580 85,186 11,040 3,536 72,420 — 267,714
Schedule of allowances for credit losses	March 31, March 31, (dollars in thousands) 2018 2017 Average loans $ 273,964 $ 267,494 Net charge offs to average loans (annualized) 0.07 % 0.12 %
Schedule of reserve for unfunded commitments	Three Months Ended March 31, (dollars in thousands) 2018 2017 Beginning balance $ 24 $ 25 Reduction of unfunded reserve (18) — Provisions charged to operations 6 17 Ending balance $ 12 $ 42
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans	At March 31, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 15,469 $ 110 $ — $ 151 $ 15,730 Residential Real Estate 79,767 94 — 2,290 82,151 Indirect 89,557 577 — 144 90,278 Commercial 11,122 — 6 48 11,176 Construction 4,014 — 53 318 4,385 Commercial Real Estate 67,506 2,000 — 2,490 71,996 $ 267,435 $ 2,781 $ 59 $ 5,441 $ 275,716 At December 31, 2017 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 15,823 $ 80 $ 24 $ 185 $ 16,112 Residential Real Estate 79,205 597 — 2,124 81,926 Indirect 83,932 1,166 — 88 85,186 Commercial 11,203 — 6 48 11,257 Construction 3,188 — 30 318 3,536 Commercial Real Estate 73,088 — — 507 73,595 $ 266,439 $ 1,843 $ 60 $ 3,270 $ 271,612
Schedule of impaired financing receivables	March 31, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 100 $ 100 $ — $ 29 $ 137 Residential Real Estate 1,294 1,294 — 513 1,306 Commercial 214 214 3 214 215 Commercial Real Estate 2,000 2,000 14 305 3,103 Total impaired loans with specific reserves 3,608 3,608 17 1,061 4,761 Impaired loans with no specific reserve: Residential Real Estate $ 977 $ 1,403 $ 2 $ — $ 1,566 Indirect 144 144 — — — Construction 236 236 — — 236 Commercial Real Estate 1,238 1,548 9 — 1,666 Total impaired loans with no specific reserve $ 2,595 $ 3,331 $ 11 — $ 3,468 December 31, 2017 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 160 $ 160 $ 5 $ 52 $ 205 Residential Real Estate 1,294 1,322 — 513 1,312 Commercial 217 217 — 217 223 Total impaired loans with specific reserves 1,671 1,699 5 782 1,740 Impaired loans with no specific reserve: Consumer $ 49 $ 49 $ — — $ — Residential Real Estate 992 1,760 11 — 1,572 Indirect 88 88 — — — Commercial 2 2 — — 2 Construction 318 318 — — 322 Commercial Real Estate 1,194 1,194 39 — 1,632 Total impaired loans with no specific reserve $ 2,643 $ 3,411 $ 50 — $ 3,528
Schedule of allowance for loan loss and the unearned income on loans	March 31, December 31, (dollars in thousands) 2018 2017 Troubled debt restructured loans $ 260 $ 263 Non-accrual and 90+ days past due and still accruing loans to gross loans 2.09 % 1.32 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 52.70 % 77.70 %
Schedule of non accrual loans	Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Totals December 31, 2016 403 2,508 193 — — 647 3,751 Transfers into nonaccrual 4 — 229 — 170 48 451 Loans paid down/payoffs (12) (31) (42) — — (10) (95) Loans returned to accrual status — (132) (33) — — — (165) Loans charged off — (3) (167) — — — (170) March 31, 2017 395 2,342 180 — 170 685 3,772 December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 38 183 160 — — 2,000 2,381 Loans paid down/payoffs (9) (17) (33) — — (17) (76) Loans returned to accrual status — — (37) — — — (37) Loans charged off (63) — (34) — — — (97) March 31, 2018 151 2,290 144 48 318 2,490 5,441
Schedule of risk ratings of loans by categories of loans	The following table provides information with respect to the Company's credit quality indicators by class of the loan portfolio at March 31, 2018: March 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 15,574 $ 81,612 $ 89,345 $ 11,175 $ 4,385 $ 71,672 $ 273,763 Special mention 97 217 561 1 — 324 1,200 Substandard 14 322 321 — — — 657 Doubtful 45 — 51 — — — 96 Loss — — — — — — — $ 15,730 $ 82,151 $ 90,278 $ 11,176 $ 4,385 $ 71,996 $ 275,716 Nonaccrual 151 2,290 144 48 318 2,490 5,441 Troubled debt restructures 46 — — 214 — — 260 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 46 — — — — — 46 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2017 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 16,008 $ 81,346 $ 83,803 $ 11,256 $ 3,536 $ 73,268 $ 269,217 Special mention 77 344 1,027 1 — 327 1,776 Substandard 3 236 315 — — — 554 Doubtful 24 — 41 — — — 65 Loss — — — — — — — $ 16,112 $ 81,926 $ 85,186 $ 11,257 $ 3,536 $ 73,595 $ 271,612 Nonaccrual 185 2,124 88 48 318 507 3,270 Troubled debt restructures 46 — — 217 — — 263 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 46 — — — — — 46 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2018
FAIR VALUE.
Schedule of changes in asset subject to fair value measurement by Level	Fair (dollars in thousands) Level 1 Level 2 Level 3 Value March 31, 2018 Recurring: Securities available for sale U.S. Treasury $ — $ 1,486 $ — $ 1,486 State and Municipal — 34,866 — 34,866 Mortgaged-backed — 53,977 — 53,977 Interest rate swap — 447 — 447 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 5,142 5,142 OREO — 114 — 114 $ — $ 90,890 $ 5,172 $ 96,062 December 31, 2017 Recurring: Securities available for sale U.S. Treasury $ — $ 1,493 $ — $ 1,493 State and Municipal — 35,633 — 35,633 Mortgaged-backed — 52,223 — 52,223 Interest rate swap — 49 — 49 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 3,532 3,532 OREO — 114 — 114 $ — $ 89,512 $ 3,562 $ 93,074
Schedule of estimated fair values of financial instruments	March 31, 2018 December 31, 2017 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,449 $ 2,449 $ 2,610 $ 2,610 Interest-bearing deposits in other financial institutions 5,896 5,896 9,846 9,846 Federal funds sold 183 183 149 149 Investment securities available for sale 90,329 90,329 89,349 89,349 Investments in restricted stock 1,231 1,231 1,232 1,232 Ground rents 150 150 153 153 Loans, less allowance for credit losses 272,817 271,053 269,023 275,819 Accrued interest receivable 1,182 1,182 1,133 1,133 Cash value of life insurance 8,290 8,290 8,713 8,713 Financial liabilities: Deposits 336,170 315,964 334,238 324,512 Long-term borrowings — — — — Short-term borrowings 20,000 20,781 20,000 20,739 Accrued interest payable 112 112 101 101 Unrecognized financial instruments: Commitments to extend credit 22,210 22,210 19,109 19,109 Standby letters of credit 84 84 71 71
Schedule of fair value hierarchy of financial instruments	(dollars in thousands) Carrying Fair March 31, 2018 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 8,528 $ 8,528 $ 8,528 — $ — Loans receivable, net 272,817 271,053 — — 271,053 Cash value of life insurance 8,290 8,290 — 8,290 — Financial instruments - Liabilities Deposits 336,170 315,964 224,098 91,866 — Short-term debt 20,000 20,781 — 20,781 —

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
	Mar. 31, 2018	Mar. 31, 2017
Basic and diluted:
Options outstanding	0	0
Net income	$ 255	$ 316
Weighted average common shares outstanding (in shares)	2,802,509	2,789,012
Basic net income per share (in dollars per share)	$ 0.09	$ 0.11

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Investment Securities
Trading Securities	$ 0	$ 0
Held-to-maturity Securities	0	0
Amortized Cost	92,844,000	90,268,000
Gross Unrealized Gains	99,000	363,000
Gross Unrealized Losses	(2,614,000)	(1,282,000)
Fair Value	90,329,000	89,349,000
Residential mortgage-backed securities
Investment Securities
Amortized Cost	49,081,000	49,788,000
Gross Unrealized Gains	18,000	24,000
Gross Unrealized Losses	(1,857,000)	(1,069,000)
Fair Value	47,242,000	48,743,000
Municipal securities
Investment Securities
Amortized Cost	35,392,000	35,453,000
Gross Unrealized Gains	81,000	339,000
Gross Unrealized Losses	(607,000)	(159,000)
Fair Value	34,866,000	35,633,000
U.S. Government agency securities
Investment Securities
Amortized Cost	6,870,000	3,526,000
Gross Unrealized Losses	(135,000)	(46,000)
Fair Value	6,735,000	3,480,000
U.S. Treasury securities
Investment Securities
Amortized Cost	1,501,000	1,501,000
Gross Unrealized Losses	(15,000)	(8,000)
Fair Value	$ 1,486,000	$ 1,493,000

INVESTMENT SECURITIES - Gross U

INVESTMENT SECURITIES - Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investment Securities
Less than 12 months Fair Value	$ 40,326	$ 20,188
Less than 12 months Unrealized Loss	(878)	(198)
12 months or more Fair Value	38,195	40,641
12 months or more Unrealized Loss	(1,736)	(1,084)
Total Fair Value	78,521	60,829
Total Unrealized Loss	(2,614)	(1,282)
Residential mortgage-backed securities
Investment Securities
Less than 12 months Fair Value	14,707	13,333
Less than 12 months Unrealized Loss	(402)	(143)
12 months or more Fair Value	31,610	33,896
12 months or more Unrealized Loss	(1,456)	(927)
Total Fair Value	46,317	47,229
Total Unrealized Loss	(1,858)	(1,070)
Municipal securities
Investment Securities
Less than 12 months Fair Value	17,903	2,396
Less than 12 months Unrealized Loss	(336)	(11)
12 months or more Fair Value	6,079	6,230
12 months or more Unrealized Loss	(271)	(148)
Total Fair Value	23,982	8,626
Total Unrealized Loss	(607)	(159)
U.S. Government agency securities
Investment Securities
Less than 12 months Fair Value	6,230	2,965
Less than 12 months Unrealized Loss	(125)	(37)
12 months or more Fair Value	506	515
12 months or more Unrealized Loss	(9)	(9)
Total Fair Value	6,736	3,480
Total Unrealized Loss	(134)	(46)
U.S. Treasury securities
Investment Securities
Less than 12 months Fair Value	1,486	1,494
Less than 12 months Unrealized Loss	(15)	(7)
Total Fair Value	1,486	1,494
Total Unrealized Loss	$ (15)	$ (7)

INVESTMENT SECURITIES - Contrac

INVESTMENT SECURITIES - Contractual Maturities of Investment Securities (Details) $ in Thousands	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)security
INVESTMENT SECURITIES
Number of securities continuous unrealized loss position more than twelve months | security	152	114
Available for Sale Amortized Cost
Due within one year	$ 1,197
Due over one to five years	1,817
Due over five to ten years	18,097
Due over ten years	71,733
Amortized Cost	92,844	$ 90,268
Available for Sale Fair Value
Due within one year	1,207
Due over one to five years	1,793
Due over five to ten years	17,582
Due over ten years	69,747
Fair Value	$ 90,329	$ 89,349
Available for Sale, Yield
Within one year	3.84%
Over one to five years	1.71%
Over five to ten years	2.23%
Over ten years	2.74%

LOANS RECEIVABLE AND ALLOWANC25

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Major Categories of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 275,716	$ 271,612
Allowance for loan losses	(2,899)	(2,589)
Loans and leases receivable, total	$ 272,817	$ 269,023
Loans and lease receivable allowances, percentage	100.00%	100.00%
Increase (decrease) in loans and leases receivable	$ 3,800
Percentage of increase (decrease) in loans and leases receivable	1.41%
Consumer
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 15,730	$ 16,112
Loans and lease receivable allowances, percentage	5.00%	6.00%
Residential Real estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 82,151	$ 81,926
Loans and lease receivable allowances, percentage	30.00%	30.00%
Indirect
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 90,278	$ 85,186
Loans and lease receivable allowances, percentage	33.00%	32.00%
Increase (decrease) in loans and leases receivable	$ 5,100
Percentage of increase (decrease) in loans and leases receivable	5.98%
Commercial
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 11,176	$ 11,257
Loans and lease receivable allowances, percentage	4.00%	4.00%
Construction
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 4,385	$ 3,536
Loans and lease receivable allowances, percentage	2.00%	1.00%
Increase (decrease) in loans and leases receivable	$ 900
Percentage of increase (decrease) in loans and leases receivable	24.03%
Commercial Real Estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 71,996	$ 73,595
Loans and lease receivable allowances, percentage	26.00%	27.00%
Increase (decrease) in loans and leases receivable	$ (1,600)
Percentage of increase (decrease) in loans and leases receivable	(2.17%)

LOANS RECEIVABLE AND ALLOWANC26

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Total Allowance by Loan Segment (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	$ 2,589,000	$ 2,484,000	$ 2,484,000
Charged off	(101,000)	(170,000)	(566,000)
Recoveries	51,000		335,000
Provision for loan losses	360,000	195,000	336,000
Balance, end of year	2,899,000		2,589,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	1,061,000		782,000
Individually evaluated for impairment, Related loan balance	5,782,000		3,898,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	1,838,000		1,807,000
Collectively evaluated for impairment, Related loan balance	269,934,000		267,714,000
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	214,000	182,000	182,000
Charged off	(62,000)		(96,000)
Recoveries	5,000		8,000
Provision for loan losses	56,000		120,000
Balance, end of year	213,000		214,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	29,000		52,000
Individually evaluated for impairment, Related loan balance	99,000		160,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	184,000		162,000
Collectively evaluated for impairment, Related loan balance	15,631,000		15,952,000
Residential Real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	1,061,000	1,042,000	1,042,000
Charged off			(3,000)
Recoveries	2,000		27,000
Provision for loan losses	(3,000)		(5,000)
Balance, end of year	1,060,000		1,061,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	513,000		513,000
Individually evaluated for impairment, Related loan balance	2,323,000		2,345,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	547,000		548,000
Collectively evaluated for impairment, Related loan balance	79,828,000		79,580,000
Indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	774,000	693,000	693,000
Charged off	(39,000)		(458,000)
Recoveries	44,000		286,000
Provision for loan losses	14,000		253,000
Balance, end of year	793,000		774,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	793,000		774,000
Collectively evaluated for impairment, Related loan balance	90,278,000		85,186,000
Commercial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	237,000	284,000	284,000
Charged off			(9,000)
Provision for loan losses	8,000		(38,000)
Balance, end of year	245,000		237,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	214,000		217,000
Individually evaluated for impairment, Related loan balance	214,000		217,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	31,000		20,000
Collectively evaluated for impairment, Related loan balance	10,962,000		11,040,000
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	12,000	10,000	10,000
Provision for loan losses	(8,000)		2,000
Balance, end of year	4,000		12,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	4,000		12,000
Collectively evaluated for impairment, Related loan balance	4,385,000		3,536,000
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	291,000	259,000	259,000
Recoveries			14,000
Provision for loan losses	293,000		18,000
Balance, end of year	584,000		291,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	305,000
Individually evaluated for impairment, Related loan balance	3,146,000		1,176,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	279,000		291,000
Collectively evaluated for impairment, Related loan balance	$ 68,850,000		72,420,000
Unallocated
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year		$ 14,000	14,000
Provision for loan losses			$ (14,000)

LOANS RECEIVABLE AND ALLOWANC27

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Allowance for credit losses, average loans (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)borrower	Mar. 31, 2017USD ($)borrower	Dec. 31, 2017USD ($)
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Loans charged off	$ 101,000	$ 170,000	$ 566,000
Average loans	$ 273,964,000	$ 267,494,000
Net charge-offs to average loans (annualized)	0.07%	0.12%
Number of borrowers | borrower	7	11

LOANS RECEIVABLE AND ALLOWANC28

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Allowance for credit losses (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)borrower	Mar. 31, 2017USD ($)borrower	Dec. 31, 2017USD ($)
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Outstanding commitments	$ 24,700,000	$ 26,500,000
Beginning balance	24,000	25,000	$ 25,000
Reduction of unfunded reserve	(18,000)
Provisions charged to operations	6,000	17,000
Ending balance	12,000	42,000	24,000
Loans charged off	101,000	170,000	$ 566,000
Average loans	$ 273,964,000	$ 267,494,000
Net charge-offs to average loans (annualized)	0.07%	0.12%
Number of borrowers | borrower	7	11

LOANS RECEIVABLE AND ALLOWANC29

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Current, past due, and non-accrual loans by categories of loans and restructured loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 267,435	$ 266,439
Non-accrual	5,441	3,270	$ 3,772	$ 3,751
Total	275,716	271,612
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	2,781	1,843
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	59	60
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	15,469	15,823
Non-accrual	151	185	395	403
Total	15,730	16,112
Consumer | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	110	80
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		24
Residential Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	79,767	79,205
Non-accrual	2,290	2,124	2,342	2,508
Total	82,151	81,926
Residential Real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	94	597
Indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	89,557	83,932
Non-accrual	144	88	180	193
Total	90,278	85,186
Indirect | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	577	1,166
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	11,122	11,203
Non-accrual	48	48
Total	11,176	11,257
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	6	6
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,014	3,188
Non-accrual	318	318	170
Total	4,385	3,536
Construction | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	53	30
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	67,506	73,088
Non-accrual	2,490	507	$ 685	$ 647
Total	71,996	$ 73,595
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	$ 2,000

LOANS RECEIVABLE AND ALLOWANC30

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of recorded investment amount and related allowance for losses of impaired loans (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)borrowerloan	Mar. 31, 2017borrower	Dec. 31, 2017USD ($)
Financing Receivable, Impaired [Line Items]
Loans outstanding included in current and 30 - 89 days past due	$ 1
Number of borrowers | borrower	7	11
Impaired loans with specific reserves:
Recorded Investment	$ 3,608,000		$ 1,671,000
Principal Balance	3,608,000		1,699,000
Recorded Investment	4,761,000		1,740,000
Impaired loans with no specific reserve:
Recorded Investment	2,595,000		2,643,000
Principal Balance	3,331,000		3,411,000
Recorded Investment	3,468,000		3,528,000
Home Equity
Financing Receivable, Impaired [Line Items]
Loans outstanding included in current and 30 - 89 days past due	$ 160,000
Consumer
Financing Receivable, Impaired [Line Items]
Number of loans | loan	2
Amount of consumer and indirect loans, outstanding	$ 99,500
Amount of consumer and indirect loans, specific reserves	$ 29,278
Number of borrowers | borrower	2
Impaired loans with specific reserves:
Recorded Investment	$ 100,000		160,000
Principal Balance	100,000		160,000
Recorded Investment	$ 137,000		205,000
Impaired loans with no specific reserve:
Recorded Investment			49,000
Principal Balance			49,000
Residential Real estate
Financing Receivable, Impaired [Line Items]
Number of loans | loan	1
Amount of consumer and indirect loans, outstanding	$ 1,300,000
Amount of consumer and indirect loans, specific reserves	$ 513,000
Number of borrowers | borrower	1
Impaired loans with specific reserves:
Recorded Investment	$ 1,294,000		1,294,000
Principal Balance	1,294,000		1,322,000
Recorded Investment	1,306,000		1,312,000
Impaired loans with no specific reserve:
Recorded Investment	977,000		992,000
Principal Balance	1,403,000		1,760,000
Recorded Investment	1,566,000		1,572,000
Indirect
Impaired loans with specific reserves:
Specific Reserve	832,000
Impaired loans with no specific reserve:
Recorded Investment	144,000		88,000
Principal Balance	144,000		88,000
Commercial
Financing Receivable, Impaired [Line Items]
Loans outstanding included in current and 30 - 89 days past due	$ 214,000
Number of loans | loan	1
Amount of consumer and indirect loans, outstanding	$ 214,000
Amount of consumer and indirect loans, specific reserves	$ 214,000
Number of borrowers | borrower	1
Impaired loans with specific reserves:
Recorded Investment	$ 214,000		217,000
Principal Balance	214,000		217,000
Specific Reserve	214,000
Recorded Investment	215,000		223,000
Impaired loans with no specific reserve:
Recorded Investment			2,000
Principal Balance			2,000
Recorded Investment			2,000
Construction
Impaired loans with no specific reserve:
Recorded Investment	236,000		318,000
Principal Balance	236,000		318,000
Recorded Investment	236,000		322,000
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Loans outstanding included in current and 30 - 89 days past due	$ 667,000
Number of loans | loan	1
Amount of consumer and indirect loans, outstanding	$ 2,000,000
Amount of consumer and indirect loans, specific reserves	$ 305,000
Number of borrowers | borrower	1
Impaired loans with specific reserves:
Recorded Investment	$ 2,000,000
Principal Balance	2,000,000
Recorded Investment	3,103,000
Impaired loans with no specific reserve:
Recorded Investment	1,238,000		1,194,000
Principal Balance	1,548,000		1,194,000
Recorded Investment	$ 1,666,000		$ 1,632,000

LOANS RECEIVABLE AND ALLOWANC31

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Impaired Financing Receivables (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	$ 3,608	$ 1,671
Unpaid Principal Balance with specific reserves	3,608	1,699
Interest Income Recognized with specific reserves	17	5
Specific Reserve with specific reserves	1,061	782
Recorded Investment	4,761	1,740
Recorded Investment with no specific reserve	2,595	2,643
Unpaid Principal Balance with no specific reserve	3,331	3,411
Interest Income Recognized with no specific reserve	11	50
Average Recorded Investment with no specific reserve	3,468	3,528
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	100	160
Unpaid Principal Balance with specific reserves	100	160
Interest Income Recognized with specific reserves		5
Specific Reserve with specific reserves	29	52
Recorded Investment	137	205
Recorded Investment with no specific reserve		49
Unpaid Principal Balance with no specific reserve		49
Indirect
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	144	88
Unpaid Principal Balance with no specific reserve	144	88
Commercial
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	214	217
Unpaid Principal Balance with specific reserves	214	217
Interest Income Recognized with specific reserves	3
Specific Reserve with specific reserves	214	217
Recorded Investment	215	223
Recorded Investment with no specific reserve		2
Unpaid Principal Balance with no specific reserve		2
Average Recorded Investment with no specific reserve		2
Construction
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	236	318
Unpaid Principal Balance with no specific reserve	236	318
Average Recorded Investment with no specific reserve	236	322
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	2,000
Unpaid Principal Balance with specific reserves	2,000
Interest Income Recognized with specific reserves	14
Specific Reserve with specific reserves	305
Recorded Investment	3,103
Recorded Investment with no specific reserve	1,238	1,194
Unpaid Principal Balance with no specific reserve	1,548	1,194
Interest Income Recognized with no specific reserve	9	39
Average Recorded Investment with no specific reserve	1,666	1,632
Residential Real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	1,294	1,294
Unpaid Principal Balance with specific reserves	1,294	1,322
Specific Reserve with specific reserves	513	513
Recorded Investment	1,306	1,312
Recorded Investment with no specific reserve	977	992
Unpaid Principal Balance with no specific reserve	1,403	1,760
Interest Income Recognized with no specific reserve	2	11
Average Recorded Investment with no specific reserve	$ 1,566	$ 1,572

LOANS RECEIVABLE AND ALLOWANC32

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for credit losses (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans | $	$ 260,000	$ 263,000
Non-accrual and 90 days or more and still accruing loans to gross loans	2.09%	1.32%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans	52.70%	77.70%
Number of TDRs contracts | loan	2	2
Commercial
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans | $	$ 214,000
Number of TDRs contracts | loan	1	1
Consumer
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans | $	$ 46,000
Number of TDRs contracts | loan	1	1

LOANS RECEIVABLE AND ALLOWANC33

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	$ 3,270	$ 3,751
Transfer into non-accrual	2,381	451
Loans paid down/payoffs	(76)	(95)
Loans return to accrual status	(37)	(165)
Loans charged off	(97)	(170)
Balance	5,441	3,772
Consumer
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	185	403
Transfer into non-accrual	38	4
Loans paid down/payoffs	(9)	(12)
Loans charged off	(63)
Balance	151	395
Residential Real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	2,124	2,508
Transfer into non-accrual	183
Loans paid down/payoffs	(17)	(31)
Loans return to accrual status		(132)
Loans charged off		(3)
Balance	2,290	2,342
Indirect
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	88	193
Transfer into non-accrual	160	229
Loans paid down/payoffs	(33)	(42)
Loans return to accrual status	(37)	(33)
Loans charged off	(34)	(167)
Balance	144	180
Commercial
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	48
Balance	48
Construction
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	318
Transfer into non-accrual		170
Balance	318	170
Commercial Real Estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	507	647
Transfer into non-accrual	2,000	48
Loans paid down/payoffs	(17)	(10)
Balance	$ 2,490	$ 685

LOANS RECEIVABLE AND ALLOWANC34

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Risk ratings of loans by categories of loans (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 275,716,000	$ 271,612,000
Non-accrual	5,441,000	3,270,000	$ 3,772,000	$ 3,751,000
Troubled debt restructures	260,000	263,000
Troubled debt restructures	$ 260,000	$ 263,000
Number of TDRs accounts | loan	2	2
Non-performing TDRs | loan	46	46
Number of non-performing TDRs accounts | loan	1	1
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 273,763,000	$ 269,217,000
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,200,000	1,776,000
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	657,000	554,000
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	96,000	65,000
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	15,730,000	16,112,000
Non-accrual	151,000	185,000	395,000	403,000
Troubled debt restructures	46,000
Troubled debt restructures	$ 46,000	$ 46,000
Number of TDRs accounts | loan	1	1
Non-performing TDRs | loan	46	46
Number of non-performing TDRs accounts | loan	1	1
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 15,574,000	$ 16,008,000
Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	97,000	77,000
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	14,000	3,000
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	45,000	24,000
Residential Real estate
Financing Receivable, Recorded Investment [Line Items]
Total	82,151,000	81,926,000
Non-accrual	2,290,000	2,124,000	2,342,000	2,508,000
Residential Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	81,612,000	81,346,000
Residential Real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	217,000	344,000
Residential Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	322,000	236,000
Indirect
Financing Receivable, Recorded Investment [Line Items]
Total	90,278,000	85,186,000
Non-accrual	144,000	88,000	180,000	193,000
Indirect | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	89,345,000	83,803,000
Indirect | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	561,000	1,027,000
Indirect | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	321,000	315,000
Indirect | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	51,000	41,000
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total	11,176,000	11,257,000
Non-accrual	48,000	48,000
Troubled debt restructures	214,000
Troubled debt restructures	$ 214,000	$ 217,000
Number of TDRs accounts | loan	1	1
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 11,175,000	$ 11,256,000
Commercial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,000	1,000
Construction
Financing Receivable, Recorded Investment [Line Items]
Total	4,385,000	3,536,000
Non-accrual	318,000	318,000	170,000
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	4,385,000	3,536,000
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total	71,996,000	73,595,000
Non-accrual	2,490,000	507,000	$ 685,000	$ 647,000
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	71,672,000	73,268,000
Commercial Real Estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	$ 324,000	$ 327,000

FAIR VALUE - Changes in the ass

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 90,329	$ 89,349
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	96,062	93,074
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	90,890	89,512
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	5,172	3,562
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,486	1,493
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,866	35,633
Recurring | U.S. Treasury securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,486	1,493
Recurring | U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,486	1,493
Recurring | Municipal securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,866	35,633
Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,866	35,633
Recurring | Agency mortgage-backed securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	53,977	52,223
Recurring | Agency mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	53,977	52,223
Recurring | Interest rate swap | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	447	49
Recurring | Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	447	49
Nonrecurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	30	30
Impaired loans	5,142	3,532
OREO	114	114
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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	$ 5,142	$ 3,532

FAIR VALUE - Estimated fair val

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financial assets - Carrying Amount
Cash and due from banks	$ 2,449	$ 2,610
Interest-bearing deposits	5,896	9,846
Federal funds sold	183	149
Debt securities	90,329	89,349
Investments in restricted stock	1,231	1,232
Ground rents	150	153
Loans, net	272,817	269,023
Accrued interest receivable	1,182	1,133
Cash value of life insurance	8,290	8,713
Financial liabilities - Carrying Amount
Deposits	336,170	334,238
Short-term borrowings	20,000	20,000
Accrued interest payable	112	101
Unrecognized financial instruments:
Commitments to extend credit	22,210	19,109
Standby letters of credit	84	71
Financial assets - Fair Value
Cash and due from banks	2,449	2,610
Interest-bearing deposits	5,896	9,846
Federal funds sold	183	149
Investment securities	90,329	89,349
Investments in restricted stock	1,231	1,232
Ground rents	150	153
Loans, less allowance for credit losses	271,053	275,819
Accrued interest receivable	1,182	1,133
Cash value of life insurance	8,290	8,713
Financial liabilities - Fair Value
Deposits	315,964	324,512
Short-term borrowings	20,781	20,739
Accrued interest payable	112	101
Unrecognized financial instruments:
Commitments to extend credit	22,210	19,109
Standby letters of credit	$ 84	$ 71

FAIR VALUE - Fair value hierarc

FAIR VALUE - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Financial assets - Carrying Amount
Cash and cash equivalents	$ 8,528	$ 12,605	$ 17,330	$ 10,622
Loans receivable, net	272,817	269,023
Cash value of life insurance	8,290
Financial liabilities - Carrying Amount
Deposits	336,170	334,238
Short-term debt	20,000	20,000
Financial assets - Fair Value
Loans receivable, net	271,053	275,819
Financial liabilities - Fair Value
Deposits	315,964	324,512
Short-term debt	20,781	$ 20,739
Fair Value
Financial assets - Fair Value
Cash and cash equivalents	8,290
Loans receivable, net	271,053
Cash value of life insurance	8,528
Financial liabilities - Fair Value
Deposits	20,781
Short-term debt	315,964
Fair Value | Level 1
Financial assets - Fair Value
Cash value of life insurance	8,528
Financial liabilities - Fair Value
Short-term debt	224,098
Fair Value | Level 2
Financial assets - Fair Value
Cash and cash equivalents	8,290
Financial liabilities - Fair Value
Deposits	20,781
Short-term debt	91,866
Fair Value | Level 3
Financial assets - Fair Value
Loans receivable, net	$ 271,053

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) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	$ 40,326	$ 20,188
Less than 12 months Unrealized Loss	(878)	(198)
12 months or more Fair Value	38,195	40,641
12 months or more Unrealized Loss	(1,736)	(1,084)
Total Fair Value	78,521	60,829
Total Unrealized Loss	(2,614)	(1,282)
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	14,707	13,333
Less than 12 months Unrealized Loss	(402)	(143)
12 months or more Fair Value	31,610	33,896
12 months or more Unrealized Loss	(1,456)	(927)
Total Fair Value	46,317	47,229
Total Unrealized Loss	(1,858)	(1,070)
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	17,903	2,396
Less than 12 months Unrealized Loss	(336)	(11)
12 months or more Fair Value	6,079	6,230
12 months or more Unrealized Loss	(271)	(148)
Total Fair Value	23,982	8,626
Total Unrealized Loss	(607)	(159)
U.S. Government agency securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	6,230	2,965
Less than 12 months Unrealized Loss	(125)	(37)
12 months or more Fair Value	506	515
12 months or more Unrealized Loss	(9)	(9)
Total Fair Value	6,736	3,480
Total Unrealized Loss	(134)	(46)
U.S. Treasury securities
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months Fair Value	1,486	1,494
Less than 12 months Unrealized Loss	(15)	(7)
Total Fair Value	1,486	1,494
Total Unrealized Loss	$ (15)	$ (7)

FAIR VALUE (Details)

FAIR VALUE (Details)	3 Months Ended
	Mar. 31, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans deemed to be impaired	$ 5,800,000
Impaired real estate loans	$ 2,100,000
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%
Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of impaired loans classified as nonaccrual loans | loan	21
Impaired loans includes nonaccrual, past due 90 days or more and still accruing	$ 464,000
Remaining impaired loan	3,500,000
Specific reserve amount	1,100,000
Specific reserve amount	$ 832,000