Glen Burnie Bancorp (GLBZ) 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 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		2,810,961
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 2,584	$ 2,610
Interest-bearing deposits in other financial institutions	5,498	9,995
Cash and Cash Equivalents	8,082	12,605
Investment securities available for sale, at fair value	87,314	89,349
Restricted equity securities, at cost	1,443	1,232
Loans, net of deferred fees and costs	289,408	271,612
Allowance for loan losses	(2,284)	(2,589)
Loans, net	287,124	269,023
Real estate acquired through foreclosure	114	114
Premises and equipment, net	3,195	3,371
Bank owned life insurance	7,780	8,713
Deferred tax assets, net	2,713	2,429
Accrued interest receivable	1,142	1,133
Accrued taxes receivable		465
Prepaid expenses	471	433
Other assets	2,093	583
Total Assets	401,471	389,450
LIABILITIES
Noninterest-bearing deposits	108,414	104,017
Interest-bearing deposits	233,393	230,221
Total Deposits	341,807	334,238
Short-term borrowings	25,000	20,000
Defined pension liability	317	335
Accrued taxes payable	28
Accrued expenses and other liabilities	775	835
Total Liabilities	367,927	355,408
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,807,819 and 2,801,149 shares as of June 30, 2018 and December 31, 2017 , respectively.	2,808	2,801
Additional paid-in capital	10,335	10,267
Retained earnings	21,778	21,605
Accumulated other comprehensive loss	(1,377)	(631)
Total Stockholders' Equity	33,544	34,042
Total Liabilities and Stockholders' Equity	$ 401,471	$ 389,450

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Jun. 30, 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	2,807,819	2,801,149
Common stock, shares outstanding	2,807,819	2,801,149

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INTEREST INCOME
Interest and fees on loans	$ 2,958	$ 2,842	$ 5,830	$ 5,616
Interest and dividends on securities	535	507	1,059	1,025
Interest on deposits with banks and federal funds sold	50	31	98	62
Total Interest Income	3,543	3,380	6,987	6,703
INTEREST EXPENSE
Interest on deposits	325	327	634	659
Interest on short-term borrowings	165	84	308	167
Interest on long-term borrowings		76		152
Total Interest Expense	490	487	942	978
Net Interest Income	3,053	2,893	6,045	5,725
Provision for loan losses	(5)	(30)	355	165
Net interest income after provision for loan losses	3,058	2,923	5,690	5,560
NONINTEREST INCOME
Gains on redemption of BOLI policies	101		308
Income on life insurance	45	51	89	100
Other income		1		3
Total Noninterest Income	386	288	872	567
NONINTEREST EXPENSE
Salary and benefits	1,649	1,615	3,371	3,036
Occupancy and equipment expenses	274	286	579	584
Legal, accounting and other professional fees	277	197	509	403
Data processing and item processing services	154	143	286	312
FDIC insurance costs	65	63	122	123
Advertising and marketing related expenses	32	42	49	73
Loan collection costs	80	29	121	47
Telephone costs	67	59	124	114
Other expenses	413	376	685	689
Total Noninterest Expenses	3,011	2,810	5,846	5,381
Income before income taxes	433	401	716	746
Income tax expense (benefit)	(45)	63	(17)	92
NET INCOME	$ 478	$ 338	$ 733	$ 654
Basic and diluted net income per share of common stock (in dollars per share)	$ 0.17	$ 0.12	$ 0.26	$ 0.23
Service charges on deposit accounts
NONINTEREST INCOME
Service charges, other fees and commissions	$ 61	$ 68	$ 128	$ 136
Other fees and commissions
NONINTEREST INCOME
Service charges, other fees and commissions	$ 179	$ 168	$ 347	$ 328

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 478	$ 338	$ 733	$ 654
Net unrealized (loss) gain on securities available for sale:
Net unrealized (loss) gain on securities during the period	15	507	(1,576)	549
Income tax benefit (loss) relating to item above	(6)		434
Reclassification adjustment for gain on sales of securities included in net income		(1)		(1)
Net effect on other comprehensive (loss) income	9	506	(1,142)	548
Net unrealized gain on interest rate swap:
Net unrealized gain on interest rate swap during the period	107		546
Income tax expense relating to item above	(41)		(150)
Net effect on other comprehensive income	66		396
Other comprehensive (loss) income	75	506	(746)	548
Comprehensive income	$ 553	$ 844	$ (13)	$ 1,202

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	$ 21,708	$ (810)	$ 33,815
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			654		654
Cash dividends, $0.10 per share			(559)		(559)
Dividends reinvested under dividend reinvestment plan	7	69			76
Other comprehensive income (loss)				548	548
Balances at Jun. 30, 2017	2,794	10,199	21,803	(262)	34,534
Balances at Dec. 31, 2017	2,801	10,267	21,605	(631)	34,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			733		733
Cash dividends, $0.10 per share			(560)		(560)
Dividends reinvested under dividend reinvestment plan	7	68			75
Other comprehensive income (loss)				(746)	(746)
Balances at Jun. 30, 2018	$ 2,808	$ 10,335	$ 21,778	$ (1,377)	$ 33,544

CONSOLIDATED STATEMENT OF CHAN7

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends, per share	$ 0.20	$ 0.20

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 733	$ 654
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion of premises and equipment	579	518
Provision for loan losses	355	165
Gain on life insurance	(308)
Gain on disposals of assets, net		(1)
Decrease (increase) in cash surrender value of bank owned life insurance	935	(100)
Reclassification adjustment for stranded income tax effects in accumulated other comprehensive income
Decrease in ground rents	3	7
Decrease (increase) in accrued interest receivable	(9)	42
Net (increase) decrease in other assets	(232)	730
Net decrease in accrued expenses and other liabilities	(51)	(269)
Net cash provided by operating activities	2,005	1,746
Cash flows from investing activities:
Redemptions and maturities of investment securities available for sale	5,557	9,209
Purchases of investment securities available for sale	(5,440)	(4,659)
Net purchase of Federal Home Loan Bank stock	(211)	(210)
Net increase in loans	(18,457)	(6,012)
Purchases of premises and equipment	(61)	(119)
Net cash provided by investing activities	(18,612)	(1,791)
Cash flows from financing activities:
Net increase (decrease) in deposits	7,569	2,244
Increase in short term borrowings	5,000	15,000
Decrease in long term borrowings		(10,000)
Cash dividends paid	(560)	(559)
Common stock dividends reinvested	75	76
Net cash provided by financing activities	12,084	6,761
Net increase (decrease) in cash and cash equivalents	(4,523)	6,716
Cash and cash equivalents at beginning of year	12,605	10,622
Cash and cash equivalents at end of year	8,082	17,338
Supplemental Disclosures of Cash Flow Information:
Interest paid on deposits and borrowings	908	1,122
Net income taxes refunded	(573)
Net income taxes paid		49
Net (increase) decrease in unrealized depreciation on available for sale securities	(1,576)	$ 905
Net Increase Decrease In Unrealized Depreciation On Swaps	$ 546

ORGANIZATIONAL

ORGANIZATIONAL	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2018 and December 31, 2017, the results of operations for the three- and six-month periods ended June 30, 2018 and 2017, and the statements of cash flows for the three- and six-month periods ended June 30, 2018 and 2017. The operating results for the three- and six-month period ended June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic and diluted earnings per share: Net income $ 477,685 $ 337,927 $ 733,154 $ 653,713 Weighted average common shares outstanding 2,806,599 2,792,656 2,804,565 2,791,824 Basic and dilutive net income per share $ 0.17 $ 0.12 $ 0.26 $ 0.23 Diluted earnings per share calculations were not required for the three- and six-month periods ended June 30, 2018 and 2017, as there were no stock options outstanding.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 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 June 30, 2018 and December 31, 2017: At June 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 22,923 $ 13 $ (918) $ 22,018 Agency mortgage-backed securities 28,055 4 (1,056) 27,003 Municipal securities 35,330 75 (533) 34,872 U.S. Government agency securities 1,999 — (64) 1,935 U.S. Treasury securities 1,501 — (15) 1,486 Total securities available for sale $ 89,808 $ 92 $ (2,586) $ 87,314 At December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 24,063 $ 20 $ (569) $ 23,514 Agency mortgage-backed securities 25,725 4 (500) 25,229 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 June 30, 2018 and December 31, 2017 are as follows: June 30, 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) Collateralized mortgage obligations $ 6,053 $ (169) $ 14,783 $ (749) $ 20,836 $ (918) Agency mortgage-backed securities 8,799 (273) 18,019 (783) 26,818 (1,056) Municipal securities 17,130 (310) 6,099 (223) 23,229 (533) U.S. Government agency securities 1,935 (64) — — 1,935 (64) U.S. Treasury securities 1,485 (15) — — 1,485 (15) $ 35,402 $ (831) $ 38,901 $ (1,755) $ 74,303 $ (2,586) 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) Collateralized mortgage obligations $ 6,531 $ (62) $ 15,678 $ (507) $ 22,209 $ (569) Agency mortgage-backed securities 6,802 (80) 18,218 (420) 25,020 (500) 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 (8) — — 1,494 (8) $ 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 June 30, 2018, the Company recorded unrealized losses in its portfolio of debt securities totaling $2.6 million related to 148 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 June 30, 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 June 30, 2018 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 1,198 $ 1,204 3.72 % Over one to five years 1,815 1,791 1.50 % Over five to ten years 19,145 18,603 2.12 % Over ten years 67,650 65,716 2.79 % Total debt securities $ 89,808 $ 87,314 _____________________ (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	6 Months Ended
	Jun. 30, 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. June 30, December 31, 2018 2017 (dollars in thousands) Amount % Amount % Consumer $ 14,453 5 $ 16,112 Residential real estate 82,144 29 81,926 Indirect 101,181 35 85,186 Commercial 12,028 4 11,257 Construction 3,472 1 3,536 Commercial real estate 76,130 26 73,595 Loans, net of deferred fees and costs 289,408 100 271,612 100 Less: Allowance for loan losses (2,284) (2,589) Loans, net $ 287,124 $ 269,023 The Bank’s net loans totaled $287.1 million at June 30, 2018, compared to $269.0 million at December 31, 2017, an increase of $18.1 million, or 6.73%. Consumer loans decreased from $16.1 million at December 31, 2017 to $14.5 million, a decrease of $1.6 million, or 10.30%. Residential real estate loans increased by $0.2 million, or 0.27%, from $81.9 at December 31, 2017 to $82.1 at June 30, 2018. Indirect loans increased from $85.2 million to $101.2 million, an increase of $16.0 million, or 18.78%. Commercial loans increased $0.7 million, or 6.86%, to $12.0 million at June 30, 2018 compared to $11.3 million at December 31, 2017. Commercial real estate loans increased from $73.6 million to $76.1 million, an increase of $2.5 million or 3.44%. Credit Risk and Allowance for Loan 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 loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan 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 loan losses in proportion to the total nonaccrual loans and past due loans to be sufficient. For purposes of determining the allowance for loan losses, the Bank segments 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 loan losses for the six months ended June 30, 2018 and the year ended December 31, 2017 were as follows: June 30, 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 (92) (514) (163) — — — — (769) Recoveries 12 2 95 — — — — 109 Provision for loan losses 43 112 93 9 (1) 99 — 355 Balance, end of year $ 177 $ 661 $ 799 $ 246 $ 11 $ 390 $ — $ 2,284 Individually evaluated for impairment: Balance in allowance $ 27 $ — $ — $ 211 $ — $ — $ — $ 238 Related loan balance 96 2,006 — 211 — 3,016 — 5,329 Collectively evaluated for impairment: Balance in allowance $ 150 $ 661 $ 799 $ 35 $ 11 $ 390 $ — $ 2,046 Related loan balance 14,357 80,138 101,181 11,817 3,472 73,114 — 284,079 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. June 30, June 30, (dollars in thousands) 2018 2017 Average loans $ 281,104 $ 269,533 Net charge offs to average loans (annualized) 0.48 % 0.04 % During the six-month period ending June 30, 2018, loans to 25 borrowers and related entities totaling approximately $769,000 were determined to be uncollectible and were charged off. During the six-month period ending June 30, 2017, loans to 38 borrowers and related entities totaling approximately $254,000 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 June 30, 2018 and 2017, the Bank had outstanding commitments totaling $33.8 million and $24.0 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: Six Months Ended June 30, (dollars in thousands) 2018 2017 Beginning balance $ 24 $ 25 Reduction of unfunded reserve (18) (20) Provisions charged to operations 37 17 Ending balance $ 43 $ 22 Contractual Obligations and Commitments. No material changes, outside the normal course of business, have been made during 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 June 30, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 14,094 $ 237 $ — $ 122 $ 14,453 Residential Real Estate 80,232 159 — 1,753 82,144 Indirect 100,453 599 — 129 101,181 Commercial 12,023 — 5 — 12,028 Construction 3,133 — 29 310 3,472 Commercial Real Estate 73,759 — — 2,371 76,130 $ 283,694 $ 995 $ 34 $ 4,685 $ 289,408 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 June 30, 2018, the allowance for loan loss is $2.3 million. For the period ending December 31, 2017, the allowance for loan loss is $2.6 million. At June 30, 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: $646,000 Commercial Real Estate loan where the guarantor is in bankruptcy and the loan has an accelerated payoff since we have an assignment of rents from the property which has a very long-term national tenant; $159,000 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 $211,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $211,000. All three of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at June 30, 2018 are comprised of: Consumer loans – Two loans to two borrowers in the amount of $96,109 with specific reserves of $26,827 established for the loans. Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at June 30, 2018 and December 31, 2017. June 30, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 96 $ 96 $ 1 $ 27 $ 137 Commercial 211 211 6 211 214 Total impaired loans with specific reserves 307 307 7 238 351 Impaired loans with no specific reserve: Residential Real Estate $ 1,735 $ 2,161 $ 4 $ — $ 2,871 Indirect 129 129 — — — Construction 228 228 — — 236 Commercial Real Estate 3,099 3,409 95 — 4,758 Total impaired loans with no specific reserve $ 5,191 $ 5,927 $ 99 — $ 7,865 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 June 30, December 31, (dollars in thousands) 2018 2017 Troubled debt restructured loans $ 256 $ 263 Non-accrual and 90+ days past due and still accruing loans to average loans 1.48 % 1.32 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 58.6 % 77.7 % At June 30, 2018, there were two troubled debt restructured loans consisting of a commercial loan of $211,000 and a consumer loan of $45,000. The consumer loan is in a nonaccrual status. The following table shows the activity for non-accrual loans for the quarters ended June 30, 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 40 349 — 84 132 609 Loans paid down/payoffs (67) (82) (96) — (84) (6) (335) Loans returned to accrual status — (132) (112) — — — (244) Loans charged off (4) (3) (247) — — — (254) June 30, 2017 336 2,331 87 — — 773 3,527 December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 44 183 305 — — 2,000 2,532 Loans paid down/payoffs (15) (41) (51) (48) (8) (136) (299) Loans returned to accrual status — — (50) — — — (50) Loans charged off (92) (513) (163) — — — (768) June 30, 2018 122 1,753 129 — 310 2,371 4,685 Other Real Estate Owned. At June 30, 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 loan portfolio segment at June 30, 2018: June 30, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 14,119 $ 79,828 $ 100,143 $ 11,817 $ 3,472 $ 73,031 $ 282,410 Special mention 187 215 610 — — — 1,012 Substandard 146 2,101 355 211 — 3,099 5,912 Doubtful 1 — 73 — — — 74 Loss — — — — — — — $ 14,453 $ 82,144 $ 101,181 $ 12,028 $ 3,472 $ 76,130 $ 289,408 Nonaccrual 122 1,753 129 — 310 2,371 4,685 Troubled debt restructures 45 — — 211 — — 256 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 45 — — — — — 45 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 $ 15,823 $ 79,060 $ 83,756 $ 11,038 $ 3,218 $ 72,074 $ 264,969 Special mention 77 384 1,027 2 — 327 1,817 Substandard 188 2,482 362 217 318 1,194 4,761 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	6 Months Ended
	Jun. 30, 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 June 30, 2018, these assets include 22 loans, excluding $168,000 of residential real estate 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 ($5.3 million of loans with $237,000 of specific reserves as of June 30, 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 ($5.0 million of the total impaired loans as of June 30, 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 ($475,000 million with $226,000 of specific reserves as of June 30, 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 June 30, 2018 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 22,018 $ — $ 22,018 Agency mortgage-backed securities — 27,003 — 27,003 Municipal securities — 34,872 — 34,872 U.S. Government agency securities — 1,935 — 1,935 U.S. Treasury securities — 1,486 — 1,486 Interest rate swap — 431 — 431 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 5,260 5,260 OREO — 114 — 114 $ — $ 87,859 $ 5,290 $ 93,149 December 31, 2017 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 23,514 $ — $ 23,514 Agency mortgage-backed securities — 25,229 — 25,229 Municipal securities — 35,633 — 35,633 U.S. Government agency securities — 3,480 — 3,480 U.S. Treasury securities — 1,493 — 1,493 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 3,532 3,532 OREO — 114 — 114 $ — $ 89,463 $ 3,562 $ 93,025 The estimated fair values of the Company’s financial instruments at June 30, 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. June 30, 2018 December 31, 2017 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,584 $ 2,584 $ 2,610 $ 2,610 Interest-bearing deposits in other financial institutions 5,498 5,498 9,846 9,846 Federal funds sold 197 197 149 149 Investment securities available for sale 87,314 87,314 89,349 89,349 Investments in restricted stock 1,443 1,443 1,232 1,232 Ground rents 150 150 153 153 Loans, less allowance for credit losses 287,124 285,394 269,023 275,819 Accrued interest receivable 1,142 1,142 1,133 1,133 Cash value of life insurance 7,780 7,780 8,713 8,713 Financial liabilities: Deposits 341,807 319,687 334,238 324,512 Long-term borrowings — — — — Short-term borrowings 25,000 25,110 20,000 20,739 Accrued interest payable 136 136 101 101 Unrecognized financial instruments: Commitments to extend credit 33,796 33,796 19,109 19,109 Standby letters of credit 1,025 1,025 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 June 30, 2018 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 8,279 $ 8,279 $ 8,279 — $ — Loans receivable, net 287,124 285,394 — — 285,394 Cash value of life insurance 7,780 7,780 — 7,780 — Financial instruments - Liabilities Deposits 341,807 319,687 — 319,687 — Short-term debt 25,000 25,110 — 25,110 — 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	6 Months Ended
	Jun. 30, 2018
RECENT ACCOUNTING PRONOUNCEMENTS
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 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 consolidated financial statements. ASU 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016‑15”). This ASU 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 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 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)	6 Months Ended
	Jun. 30, 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 June 30, 2018 and December 31, 2017, the results of operations for the three- and six-month periods ended June 30, 2018 and 2017, and the statements of cash flows for the three- and six-month periods ended June 30, 2018 and 2017. The operating results for the three- and six-month period ended June 30, 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 June 30, 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 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 consolidated financial statements. ASU 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016‑15”). This ASU 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 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 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)	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
Schedule of earnings per common share	Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Basic and diluted earnings per share: Net income $ 477,685 $ 337,927 $ 733,154 $ 653,713 Weighted average common shares outstanding 2,806,599 2,792,656 2,804,565 2,791,824 Basic and dilutive net income per share $ 0.17 $ 0.12 $ 0.26 $ 0.23

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
INVESTMENT SECURITIES
Schedule of summary of investment securities	At June 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 22,923 $ 13 $ (918) $ 22,018 Agency mortgage-backed securities 28,055 4 (1,056) 27,003 Municipal securities 35,330 75 (533) 34,872 U.S. Government agency securities 1,999 — (64) 1,935 U.S. Treasury securities 1,501 — (15) 1,486 Total securities available for sale $ 89,808 $ 92 $ (2,586) $ 87,314 At December 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 24,063 $ 20 $ (569) $ 23,514 Agency mortgage-backed securities 25,725 4 (500) 25,229 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 June 30, 2018 and December 31, 2017 are as follows: June 30, 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) Collateralized mortgage obligations $ 6,053 $ (169) $ 14,783 $ (749) $ 20,836 $ (918) Agency mortgage-backed securities 8,799 (273) 18,019 (783) 26,818 (1,056) Municipal securities 17,130 (310) 6,099 (223) 23,229 (533) U.S. Government agency securities 1,935 (64) — — 1,935 (64) U.S. Treasury securities 1,485 (15) — — 1,485 (15) $ 35,402 $ (831) $ 38,901 $ (1,755) $ 74,303 $ (2,586) 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) Collateralized mortgage obligations $ 6,531 $ (62) $ 15,678 $ (507) $ 22,209 $ (569) Agency mortgage-backed securities 6,802 (80) 18,218 (420) 25,020 (500) 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 (8) — — 1,494 (8) $ 20,188 $ (198) $ 40,641 $ (1,084) $ 60,829 $ (1,282)
Schedule of contractual maturities of investment securities	Contractual maturities of debt securities at June 30, 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 June 30, 2018 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 1,198 $ 1,204 3.72 % Over one to five years 1,815 1,791 1.50 % Over five to ten years 19,145 18,603 2.12 % Over ten years 67,650 65,716 2.79 % Total debt securities $ 89,808 $ 87,314 _____________________ (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)	6 Months Ended
	Jun. 30, 2018
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Schedule of major categories of loans	June 30, December 31, 2018 2017 (dollars in thousands) Amount % Amount % Consumer $ 14,453 5 $ 16,112 Residential real estate 82,144 29 81,926 Indirect 101,181 35 85,186 Commercial 12,028 4 11,257 Construction 3,472 1 3,536 Commercial real estate 76,130 26 73,595 Loans, net of deferred fees and costs 289,408 100 271,612 100 Less: Allowance for loan losses (2,284) (2,589) Loans, net $ 287,124 $ 269,023
Schedule of total allowance by loan segment	June 30, 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 (92) (514) (163) — — — — (769) Recoveries 12 2 95 — — — — 109 Provision for loan losses 43 112 93 9 (1) 99 — 355 Balance, end of year $ 177 $ 661 $ 799 $ 246 $ 11 $ 390 $ — $ 2,284 Individually evaluated for impairment: Balance in allowance $ 27 $ — $ — $ 211 $ — $ — $ — $ 238 Related loan balance 96 2,006 — 211 — 3,016 — 5,329 Collectively evaluated for impairment: Balance in allowance $ 150 $ 661 $ 799 $ 35 $ 11 $ 390 $ — $ 2,046 Related loan balance 14,357 80,138 101,181 11,817 3,472 73,114 — 284,079 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	June 30, June 30, (dollars in thousands) 2018 2017 Average loans $ 281,104 $ 269,533 Net charge offs to average loans (annualized) 0.48 % 0.04 %
Schedule of reserve for unfunded commitments	Six Months Ended June 30, (dollars in thousands) 2018 2017 Beginning balance $ 24 $ 25 Reduction of unfunded reserve (18) (20) Provisions charged to operations 37 17 Ending balance $ 43 $ 22
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans	At June 30, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 14,094 $ 237 $ — $ 122 $ 14,453 Residential Real Estate 80,232 159 — 1,753 82,144 Indirect 100,453 599 — 129 101,181 Commercial 12,023 — 5 — 12,028 Construction 3,133 — 29 310 3,472 Commercial Real Estate 73,759 — — 2,371 76,130 $ 283,694 $ 995 $ 34 $ 4,685 $ 289,408 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	June 30, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 96 $ 96 $ 1 $ 27 $ 137 Commercial 211 211 6 211 214 Total impaired loans with specific reserves 307 307 7 238 351 Impaired loans with no specific reserve: Residential Real Estate $ 1,735 $ 2,161 $ 4 $ — $ 2,871 Indirect 129 129 — — — Construction 228 228 — — 236 Commercial Real Estate 3,099 3,409 95 — 4,758 Total impaired loans with no specific reserve $ 5,191 $ 5,927 $ 99 — $ 7,865 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	June 30, December 31, (dollars in thousands) 2018 2017 Troubled debt restructured loans $ 256 $ 263 Non-accrual and 90+ days past due and still accruing loans to average loans 1.48 % 1.32 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 58.6 % 77.7 %
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 40 349 — 84 132 609 Loans paid down/payoffs (67) (82) (96) — (84) (6) (335) Loans returned to accrual status — (132) (112) — — — (244) Loans charged off (4) (3) (247) — — — (254) June 30, 2017 336 2,331 87 — — 773 3,527 December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 44 183 305 — — 2,000 2,532 Loans paid down/payoffs (15) (41) (51) (48) (8) (136) (299) Loans returned to accrual status — — (50) — — — (50) Loans charged off (92) (513) (163) — — — (768) June 30, 2018 122 1,753 129 — 310 2,371 4,685
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 loan portfolio segment at June 30, 2018: June 30, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 14,119 $ 79,828 $ 100,143 $ 11,817 $ 3,472 $ 73,031 $ 282,410 Special mention 187 215 610 — — — 1,012 Substandard 146 2,101 355 211 — 3,099 5,912 Doubtful 1 — 73 — — — 74 Loss — — — — — — — $ 14,453 $ 82,144 $ 101,181 $ 12,028 $ 3,472 $ 76,130 $ 289,408 Nonaccrual 122 1,753 129 — 310 2,371 4,685 Troubled debt restructures 45 — — 211 — — 256 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs 45 — — — — — 45 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 $ 15,823 $ 79,060 $ 83,756 $ 11,038 $ 3,218 $ 72,074 $ 264,969 Special mention 77 384 1,027 2 — 327 1,817 Substandard 188 2,482 362 217 318 1,194 4,761 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)	6 Months Ended
	Jun. 30, 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 June 30, 2018 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 22,018 $ — $ 22,018 Agency mortgage-backed securities — 27,003 — 27,003 Municipal securities — 34,872 — 34,872 U.S. Government agency securities — 1,935 — 1,935 U.S. Treasury securities — 1,486 — 1,486 Interest rate swap — 431 — 431 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 5,260 5,260 OREO — 114 — 114 $ — $ 87,859 $ 5,290 $ 93,149 December 31, 2017 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 23,514 $ — $ 23,514 Agency mortgage-backed securities — 25,229 — 25,229 Municipal securities — 35,633 — 35,633 U.S. Government agency securities — 3,480 — 3,480 U.S. Treasury securities — 1,493 — 1,493 Non-recurring: Maryland Financial Bank stock — — 30 30 Impaired loans — — 3,532 3,532 OREO — 114 — 114 $ — $ 89,463 $ 3,562 $ 93,025
Schedule of estimated fair values of financial instruments	June 30, 2018 December 31, 2017 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,584 $ 2,584 $ 2,610 $ 2,610 Interest-bearing deposits in other financial institutions 5,498 5,498 9,846 9,846 Federal funds sold 197 197 149 149 Investment securities available for sale 87,314 87,314 89,349 89,349 Investments in restricted stock 1,443 1,443 1,232 1,232 Ground rents 150 150 153 153 Loans, less allowance for credit losses 287,124 285,394 269,023 275,819 Accrued interest receivable 1,142 1,142 1,133 1,133 Cash value of life insurance 7,780 7,780 8,713 8,713 Financial liabilities: Deposits 341,807 319,687 334,238 324,512 Long-term borrowings — — — — Short-term borrowings 25,000 25,110 20,000 20,739 Accrued interest payable 136 136 101 101 Unrecognized financial instruments: Commitments to extend credit 33,796 33,796 19,109 19,109 Standby letters of credit 1,025 1,025 71 71
Schedule of fair value hierarchy of financial instruments	(dollars in thousands) Carrying Fair June 30, 2018 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 8,279 $ 8,279 $ 8,279 — $ — Loans receivable, net 287,124 285,394 — — 285,394 Cash value of life insurance 7,780 7,780 — 7,780 — Financial instruments - Liabilities Deposits 341,807 319,687 — 319,687 — Short-term debt 25,000 25,110 — 25,110 —

EARNINGS PER SHARE - Basic earn

EARNINGS PER SHARE - Basic earnings per share of common stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Mar. 31, 2017
Basic and diluted:
Options outstanding					0	0
Net income	$ 478	$ 338	$ 733	$ 654
Weighted average common shares outstanding (in shares)	2,806,599	2,792,656	2,804,565	2,791,824
Basic net income per share (in dollars per share)	$ 0.17	$ 0.12	$ 0.26	$ 0.23

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Investment Securities
Trading Securities	$ 0	$ 0
Held-to-maturity Securities	0	0
Amortized Cost	89,808,000	90,268,000
Gross Unrealized Gains	92,000	363,000
Gross Unrealized Losses	(2,586,000)	(1,282,000)
Fair Value	87,314,000	89,349,000
Collaterized mortgage obligations
Investment Securities
Amortized Cost	22,923,000	24,063,000
Gross Unrealized Gains	13,000	20,000
Gross Unrealized Losses	(918,000)	(569,000)
Fair Value	22,018,000	23,514,000
Agency mortgage-backed securities.
Investment Securities
Amortized Cost	28,055,000	25,725,000
Gross Unrealized Gains	4,000	4,000
Gross Unrealized Losses	(1,056,000)	(500,000)
Fair Value	27,003,000	25,229,000
Municipal securities
Investment Securities
Amortized Cost	35,330,000	35,453,000
Gross Unrealized Gains	75,000	339,000
Gross Unrealized Losses	(533,000)	(159,000)
Fair Value	34,872,000	35,633,000
U.S. Government agency securities
Investment Securities
Amortized Cost	1,999,000	3,526,000
Gross Unrealized Losses	(64,000)	(46,000)
Fair Value	1,935,000	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	Jun. 30, 2018	Dec. 31, 2017
Investment Securities
Less than 12 months Fair Value	$ 35,402	$ 20,188
Less than 12 months Unrealized Loss	(831)	(198)
12 months or more Fair Value	38,901	40,641
12 months or more Unrealized Loss	(1,755)	(1,084)
Total Fair Value	74,303	60,829
Total Unrealized Loss	(2,586)	(1,282)
Collaterized mortgage obligations
Investment Securities
Less than 12 months Fair Value	6,053	6,531
Less than 12 months Unrealized Loss	(169)	(62)
12 months or more Fair Value	14,783	15,678
12 months or more Unrealized Loss	(749)	(507)
Total Fair Value	20,836	22,209
Total Unrealized Loss	(918)	(569)
Agency mortgage-backed securities.
Investment Securities
Less than 12 months Fair Value	8,799	6,802
Less than 12 months Unrealized Loss	(273)	(80)
12 months or more Fair Value	18,019	18,218
12 months or more Unrealized Loss	(783)	(420)
Total Fair Value	26,818	25,020
Total Unrealized Loss	(1,056)	(500)
Municipal securities
Investment Securities
Less than 12 months Fair Value	17,130	2,396
Less than 12 months Unrealized Loss	(310)	(11)
12 months or more Fair Value	6,099	6,230
12 months or more Unrealized Loss	(223)	(148)
Total Fair Value	23,229	8,626
Total Unrealized Loss	(533)	(159)
U.S. Government agency securities
Investment Securities
Less than 12 months Fair Value	1,935	2,965
Less than 12 months Unrealized Loss	(64)	(37)
12 months or more Fair Value		515
12 months or more Unrealized Loss		(9)
Total Fair Value	1,935	3,480
Total Unrealized Loss	(64)	(46)
U.S. Treasury securities
Investment Securities
Less than 12 months Fair Value	1,485	1,494
Less than 12 months Unrealized Loss	(15)	(8)
Total Fair Value	1,485	1,494
Total Unrealized Loss	$ (15)	$ (8)

INVESTMENT SECURITIES - Contrac

INVESTMENT SECURITIES - Contractual Maturities of Investment Securities (Details) $ in Thousands	Jun. 30, 2018USD ($)security	Dec. 31, 2017USD ($)security
INVESTMENT SECURITIES
Number of securities continuous unrealized loss position more than twelve months | security	148	114
Available for Sale Amortized Cost
Due within one year	$ 1,198
Due over one to five years	1,815
Due over five to ten years	19,145
Due over ten years	67,650
Amortized Cost	89,808	$ 90,268
Available for Sale Fair Value
Due within one year	1,204
Due over one to five years	1,791
Due over five to ten years	18,603
Due over ten years	65,716
Fair Value	$ 87,314	$ 89,349
Available for Sale, Yield
Within one year	3.72%
Over one to five years	1.50%
Over five to ten years	2.12%
Over ten years	2.79%

LOANS RECEIVABLE AND ALLOWANC25

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Major Categories of Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 289,408	$ 271,612
Allowance for loan losses	(2,284)	(2,589)
Loans and leases receivable, total	$ 287,124	$ 269,023
Loans and lease receivable allowances, percentage	100.00%	100.00%
Increase (decrease) in loans and leases receivable	$ 18,100
Percentage of increase (decrease) in loans and leases receivable	6.73%
Consumer
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 14,453	$ 16,112
Loans and lease receivable allowances, percentage	5.00%	6.00%
Increase (decrease) in loans and leases receivable	$ 1,600
Percentage of increase (decrease) in loans and leases receivable	10.30%
Residential Real estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 82,144	$ 81,926
Loans and lease receivable allowances, percentage	29.00%	30.00%
Increase (decrease) in loans and leases receivable	$ 200
Percentage of increase (decrease) in loans and leases receivable	0.27%
Indirect
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 101,181	$ 85,186
Loans and lease receivable allowances, percentage	35.00%	32.00%
Increase (decrease) in loans and leases receivable	$ 16,000
Percentage of increase (decrease) in loans and leases receivable	18.78%
Commercial
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 12,028	$ 11,257
Loans and lease receivable allowances, percentage	4.00%	4.00%
Increase (decrease) in loans and leases receivable	$ 700
Percentage of increase (decrease) in loans and leases receivable	6.86%
Construction
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 3,472	$ 3,536
Loans and lease receivable allowances, percentage	1.00%	1.00%
Commercial Real Estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 76,130	$ 73,595
Loans and lease receivable allowances, percentage	26.00%	27.00%
Increase (decrease) in loans and leases receivable	$ 2,500
Percentage of increase (decrease) in loans and leases receivable	(3.44%)

LOANS RECEIVABLE AND ALLOWANC26

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Total Allowance by Loan Segment (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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			(769,000)	(254,000)	(566,000)
Recoveries			109,000		335,000
Provision for loan losses	$ (5,000)	$ (30,000)	355,000	165,000	336,000
Balance, end of year	2,284,000		2,284,000		2,589,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	238,000		238,000		782,000
Individually evaluated for impairment, Related loan balance	5,329,000		5,329,000		3,898,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	2,046,000		2,046,000		1,807,000
Collectively evaluated for impairment, Related loan balance	284,079,000		284,079,000		267,714,000
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year			214,000	182,000	182,000
Charged off			(92,000)		(96,000)
Recoveries			12,000		8,000
Provision for loan losses			43,000		120,000
Balance, end of year	177,000		177,000		214,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	27,000		27,000		52,000
Individually evaluated for impairment, Related loan balance	96,000		96,000		160,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	150,000		150,000		162,000
Collectively evaluated for impairment, Related loan balance	14,357,000		14,357,000		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			(514,000)		(3,000)
Recoveries			2,000		27,000
Provision for loan losses			112,000		(5,000)
Balance, end of year	661,000		661,000		1,061,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance					513,000
Individually evaluated for impairment, Related loan balance	2,006,000		2,006,000		2,345,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	661,000		661,000		548,000
Collectively evaluated for impairment, Related loan balance	80,138,000		80,138,000		79,580,000
Indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year			774,000	693,000	693,000
Charged off			(163,000)		(458,000)
Recoveries			95,000		286,000
Provision for loan losses			93,000		253,000
Balance, end of year	799,000		799,000		774,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	799,000		799,000		774,000
Collectively evaluated for impairment, Related loan balance	101,181,000		101,181,000		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			9,000		(38,000)
Balance, end of year	246,000		246,000		237,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	211,000		211,000		217,000
Individually evaluated for impairment, Related loan balance	211,000		211,000		217,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	35,000		35,000		20,000
Collectively evaluated for impairment, Related loan balance	11,817,000		11,817,000		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			(1,000)		2,000
Balance, end of year	11,000		11,000		12,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	11,000		11,000		12,000
Collectively evaluated for impairment, Related loan balance	3,472,000		3,472,000		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			99,000		18,000
Balance, end of year	390,000		390,000		291,000
Individually evaluated for impairment:
Individually evaluated for impairment, Related loan balance	3,016,000		3,016,000		1,176,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	390,000		390,000		291,000
Collectively evaluated for impairment, Related loan balance	$ 73,114,000		$ 73,114,000		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 (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)borrower	Jun. 30, 2017USD ($)borrower	Dec. 31, 2017USD ($)
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Outstanding commitments	$ 33,800,000	$ 24,000,000
Beginning balance	24,000	25,000	$ 25,000
Reduction of unfunded reserve	(18,000)	(20,000)
Provisions charged to operations	37,000	17,000
Ending balance	43,000	22,000	24,000
Loans charged off	769,000	254,000	$ 566,000
Average loans	$ 281,104,000	$ 269,533,000
Net charge-offs to average loans (annualized)	0.48%	0.04%
Number of borrowers | borrower	25	38

LOANS RECEIVABLE AND ALLOWANC28

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	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 283,694	$ 266,439
Non-accrual	4,685	3,270	$ 3,527	$ 3,751
Total	289,408	271,612
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	995	1,843
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	34	60
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	14,094	15,823
Non-accrual	122	185	336	403
Total	14,453	16,112
Consumer | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	237	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	80,232	79,205
Non-accrual	1,753	2,124	2,331	2,508
Total	82,144	81,926
Residential Real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	159	597
Indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	100,453	83,932
Non-accrual	129	88	87	193
Total	101,181	85,186
Indirect | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	599	1,166
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	12,023	11,203
Non-accrual		48
Total	12,028	11,257
Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	5	6
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	3,133	3,188
Non-accrual	310	318
Total	3,472	3,536
Construction | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	29	30
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	73,759	73,088
Non-accrual	2,371	507	$ 773	$ 647
Total	$ 76,130	$ 73,595

LOANS RECEIVABLE AND ALLOWANC29

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of recorded investment amount and related allowance for losses of impaired loans (Details)	6 Months Ended
	Jun. 30, 2018USD ($)borrowerloan	Jun. 30, 2017borrower	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	$ 2,284,000		$ 2,589,000	$ 2,484,000
Loans outstanding included in current and 30 - 89 days past due	$ 1,000,000
Number of borrowers | borrower	25	38
Specific Reserve	$ 226,000
Home Equity
Financing Receivable, Impaired [Line Items]
Loans outstanding included in current and 30 - 89 days past due	159,000
Consumer
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	$ 177,000		214,000	182,000
Number of loans | loan	2
Amount of consumer and indirect loans, outstanding	$ 96,109
Amount of consumer and indirect loans, specific reserves	$ 26,827
Number of borrowers | borrower	2
Commercial
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	$ 246,000		237,000	284,000
Loans outstanding included in current and 30 - 89 days past due	211,000
Specific Reserve	211,000
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	390,000		$ 291,000	$ 259,000
Loans outstanding included in current and 30 - 89 days past due	$ 646,000

LOANS RECEIVABLE AND ALLOWANC30

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Impaired Financing Receivables (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	$ 307	$ 1,671
Unpaid Principal Balance with specific reserves	307	1,699
Interest Income Recognized with specific reserves	7	5
Specific Reserve with specific reserves	238	782
Recorded Investment	351	1,740
Recorded Investment with no specific reserve	5,191	2,643
Unpaid Principal Balance with no specific reserve	5,927	3,411
Interest Income Recognized with no specific reserve	99	50
Average Recorded Investment with no specific reserve	7,865	3,528
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	96	160
Unpaid Principal Balance with specific reserves	96	160
Interest Income Recognized with specific reserves	1	5
Specific Reserve with specific reserves	27	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	129	88
Unpaid Principal Balance with no specific reserve	129	88
Commercial
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	211	217
Unpaid Principal Balance with specific reserves	211	217
Interest Income Recognized with specific reserves	6
Specific Reserve with specific reserves	211	217
Recorded Investment	214	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	228	318
Unpaid Principal Balance with no specific reserve	228	318
Average Recorded Investment with no specific reserve	236	322
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	3,099	1,194
Unpaid Principal Balance with no specific reserve	3,409	1,194
Interest Income Recognized with no specific reserve	95	39
Average Recorded Investment with no specific reserve	4,758	1,632
Residential Real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves		1,294
Unpaid Principal Balance with specific reserves		1,322
Specific Reserve with specific reserves		513
Recorded Investment		1,312
Recorded Investment with no specific reserve	1,735	992
Unpaid Principal Balance with no specific reserve	2,161	1,760
Interest Income Recognized with no specific reserve	4	11
Average Recorded Investment with no specific reserve	$ 2,871	$ 1,572

LOANS RECEIVABLE AND ALLOWANC31

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for credit losses (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 256,000	$ 263,000
Non-accrual and 90+ days past due and still accruing loans to average loans	1.48%	1.32%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans	58.60%	77.70%
Commercial
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 211,000
Consumer
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 45,000

LOANS RECEIVABLE AND ALLOWANC32

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	$ 3,270	$ 3,751
Transfer into non-accrual	2,532	609
Loans paid down/payoffs	(299)	(335)
Loans return to accrual status	(50)	(244)
Loans charged off	(768)	(254)
Balance	4,685	3,527
Consumer
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	185	403
Transfer into non-accrual	44	4
Loans paid down/payoffs	(15)	(67)
Loans charged off	(92)	(4)
Balance	122	336
Residential Real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	2,124	2,508
Transfer into non-accrual	183	40
Loans paid down/payoffs	(41)	(82)
Loans return to accrual status		(132)
Loans charged off	(513)	(3)
Balance	1,753	2,331
Indirect
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	88	193
Transfer into non-accrual	305	349
Loans paid down/payoffs	(51)	(96)
Loans return to accrual status	(50)	(112)
Loans charged off	(163)	(247)
Balance	129	87
Commercial
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	48
Loans paid down/payoffs	(48)
Construction
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	318
Transfer into non-accrual		84
Loans paid down/payoffs	(8)	(84)
Balance	310
Commercial Real Estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	507	647
Transfer into non-accrual	2,000	132
Loans paid down/payoffs	(136)	(6)
Balance	$ 2,371	$ 773

LOANS RECEIVABLE AND ALLOWANC33

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Risk ratings of loans by categories of loans (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)loan	Dec. 31, 2017USD ($)loan	Jun. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 289,408,000	$ 271,612,000
Non-accrual	4,685,000	3,270,000	$ 3,527,000	$ 3,751,000
Troubled debt restructures	256,000	263,000
Troubled debt restructures	$ 256,000	$ 263,000
Number of TDRs accounts | loan	2	2
Non-performing TDRs | loan	45	46
Number of non-performing TDRs accounts | loan	1	1
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 282,410,000	$ 264,969,000
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	1,012,000	1,817,000
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	5,912,000	4,761,000
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	74,000	65,000
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	14,453,000	16,112,000
Non-accrual	122,000	185,000	336,000	403,000
Troubled debt restructures	45,000
Troubled debt restructures	$ 45,000	$ 46,000
Number of TDRs accounts | loan	1	1
Non-performing TDRs | loan	45	46
Number of non-performing TDRs accounts | loan	1	1
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 14,119,000	$ 15,823,000
Consumer | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	187,000	77,000
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	146,000	188,000
Consumer | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	1,000	24,000
Residential Real estate
Financing Receivable, Recorded Investment [Line Items]
Total	82,144,000	81,926,000
Non-accrual	1,753,000	2,124,000	2,331,000	2,508,000
Residential Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	79,828,000	79,060,000
Residential Real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	215,000	384,000
Residential Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	2,101,000	2,482,000
Indirect
Financing Receivable, Recorded Investment [Line Items]
Total	101,181,000	85,186,000
Non-accrual	129,000	88,000	87,000	193,000
Indirect | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	100,143,000	83,756,000
Indirect | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total	610,000	1,027,000
Indirect | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	355,000	362,000
Indirect | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	73,000	41,000
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total	12,028,000	11,257,000
Non-accrual		48,000
Troubled debt restructures	211,000
Troubled debt restructures	$ 211,000	$ 217,000
Number of TDRs accounts | loan	1	1
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 11,817,000	$ 11,038,000
Commercial | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		2,000
Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	211,000	217,000
Construction
Financing Receivable, Recorded Investment [Line Items]
Total	3,472,000	3,536,000
Non-accrual	310,000	318,000
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	3,472,000	3,218,000
Construction | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total		318,000
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total	76,130,000	73,595,000
Non-accrual	2,371,000	507,000	$ 773,000	$ 647,000
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	73,031,000	72,074,000
Commercial Real Estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		327,000
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	$ 3,099,000	$ 1,194,000

FAIR VALUE (Details)

FAIR VALUE (Details)	6 Months Ended
	Jun. 30, 2018USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans deemed to be impaired	$ 5,300,000
Specific reserve amount	226,000
Impaired real estate loans	$ 5,000,000
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	22
Impaired loans includes nonaccrual, past due 90 days or more and still accruing	$ 168,000
Remaining impaired loan	475,000
Specific reserve amount	$ 237,000

FAIR VALUE - Changes in the ass

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 87,314	$ 89,349
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	93,149	93,025
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	87,859	89,463
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	5,290	3,562
Collaterized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	22,018	23,514
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,872	35,633
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
Recurring | Collaterized mortgage obligations | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	22,018	23,514
Recurring | Collaterized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	22,018	23,514
Recurring | Agency mortgage-backed securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	27,003	25,229
Recurring | Agency mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	27,003	25,229
Recurring | Municipal securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,872	35,633
Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	34,872	35,633
Recurring | US Government Securities | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,935	3,480
Recurring | US Government Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,935	3,480
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 | Interest rate swap | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	431
Recurring | Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	431
Nonrecurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	30	30
Impaired loans	5,260	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	$ 5,260	$ 3,532

FAIR VALUE - Estimated fair val

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets - Carrying Amount
Cash and due from banks	$ 2,584	$ 2,610
Interest-bearing deposits	5,498	9,846
Federal funds sold	197	149
Debt securities	87,314	89,349
Investments in restricted stock	1,443	1,232
Ground rents	150	153
Loans, net	287,124	269,023
Accrued interest receivable	1,142	1,133
Cash value of life insurance	7,780	8,713
Financial liabilities - Carrying Amount
Deposits	341,807	334,238
Short-term borrowings	25,000	20,000
Accrued interest payable	136	101
Unrecognized financial instruments:
Commitments to extend credit	33,796	19,109
Standby letters of credit	1,025	71
Financial assets - Fair Value
Cash and due from banks	2,584	2,610
Interest-bearing deposits	5,498	9,846
Federal funds sold	197	149
Investment securities	87,314	89,349
Investments in restricted stock	1,443	1,232
Ground rents	150	153
Loans, less allowance for credit losses	285,394	275,819
Accrued interest receivable	1,142	1,133
Cash value of life insurance	7,780	8,713
Financial liabilities - Fair Value
Deposits	319,687	324,512
Short-term borrowings	25,110	20,739
Accrued interest payable	136	101
Unrecognized financial instruments:
Commitments to extend credit	33,796	19,109
Standby letters of credit	$ 1,025	$ 71

FAIR VALUE - Fair value hierarc

FAIR VALUE - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets - Carrying Amount
Cash and cash equivalents	$ 8,279
Loans receivable, net	287,124	$ 269,023
Cash value of life insurance	7,780
Financial liabilities - Carrying Amount
Deposits	341,807	334,238
Short-term debt	25,000	20,000
Financial assets - Fair Value
Loans receivable, net	285,394	275,819
Financial liabilities - Fair Value
Deposits	319,687	324,512
Short-term debt	25,110	$ 20,739
Fair Value
Financial assets - Fair Value
Cash and cash equivalents	7,780
Loans receivable, net	285,394
Cash value of life insurance	8,279
Financial liabilities - Fair Value
Deposits	25,110
Short-term debt	319,687
Fair Value | Level 1
Financial assets - Fair Value
Cash value of life insurance	8,279
Fair Value | Level 2
Financial assets - Fair Value
Cash and cash equivalents	7,780
Financial liabilities - Fair Value
Deposits	25,110
Short-term debt	319,687
Fair Value | Level 3
Financial assets - Fair Value
Loans receivable, net	$ 285,394

RECENT ACCOUNTING PRONOUNCEME38

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
RECENT ACCOUNTING PRONOUNCEMENTS
Net unrealized (loss) gain on securities during the period	$ 15	$ 507	$ (1,576)	$ 549
ASU 2018-02 | Scenario, Previously Reported
RECENT ACCOUNTING PRONOUNCEMENTS
Net unrealized (loss) gain on securities during the period					$ 100