Glen Burnie Bancorp (GLBZ) 10-Q 13 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	GLEN BURNIE BANCORP
Entity Central Index Key	0000890066
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock Shares Outstanding		2,821,230
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 2,341	$ 2,605
Interest-bearing deposits in other financial institutions	14,194	13,349
Cash and Cash Equivalents	16,535	15,954
Investment securities available for sale, at fair value	61,420	81,572
Restricted equity securities, at cost	1,439	2,481
Loans, net of deferred fees and costs	299,417	299,120
Less: Allowance for loan losses	(2,605)	(2,541)
Loans, net	296,812	296,579
Real estate acquired through foreclosure	705	705
Premises and equipment, net	3,901	3,106
Bank owned life insurance	7,900	7,860
Deferred tax assets, net	1,197	1,392
Accrued interest receivable	1,110	1,198
Accrued taxes receivable	1,221	1,177
Prepaid expenses	515	466
Other assets	304	556
Total Assets	393,059	413,046
LIABILITIES
Noninterest-bearing deposits	107,249	101,369
Interest-bearing deposits	224,364	221,084
Total Deposits	331,613	322,453
Short-term borrowings	25,000	55,000
Defined pension liability	298	285
Accrued expenses and other liabilities	1,693	1,257
Total Liabilities	358,604	378,995
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,817,821 and 2,814,157 shares as of March 31, 2019 and December 31, 2018 , respectively.	2,818	2,814
Additional paid-in capital	10,433	10,401
Retained earnings	21,919	22,066
Accumulated other comprehensive loss	(715)	(1,230)
Total Stockholders' Equity	34,455	34,051
Total Liabilities and Stockholders' Equity	$ 393,059	$ 413,046

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	2,817,821	2,814,157
Common stock, shares outstanding	2,817,821	2,814,157

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
INTEREST INCOME
Interest and fees on loans	$ 3,189	$ 2,872
Interest and dividends on securities	400	524
Interest on deposits with banks and federal funds sold	120	48
Total Interest Income	3,709	3,444
INTEREST EXPENSE
Interest on deposits	332	309
Interest on short-term borrowings	238	143
Total Interest Expense	570	452
Net Interest Income	3,139	2,992
Provision for loan losses	173	360
Net interest income after provision for loan losses	2,966	2,632
NONINTEREST INCOME
Gains on redemption of BOLI policies		207
Gain on securities sold	3
Income on life insurance	40	44
Total Noninterest Income	282	486
NONINTEREST EXPENSE
Salary and employee benefits	1,770	1,721
Occupancy and equipment expenses	314	305
Legal, accounting and other professional fees	232	262
Data processing and item processing services	176	132
FDIC insurance costs	56	58
Advertising and marketing related expenses	27	17
Loan collection costs	13	41
Telephone costs	66	57
Other expenses	423	242
Total Noninterest Expenses	3,077	2,835
Income before income taxes	171	283
Income tax expense	36	28
NET INCOME	$ 135	$ 255
Basic and diluted net income per share of common stock (in dollars per share)	$ 0.05	$ 0.09
Service charges on deposit accounts
NONINTEREST INCOME
Noninterest Income	$ 61	$ 67
Other fees and commissions
NONINTEREST INCOME
Noninterest Income	$ 178	$ 168

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 135	$ 255
Net unrealized gain (loss) on securities available for sale:
Net unrealized gain (loss) on securities during the period	932	(1,596)
Income tax (expense) benefit relating to item above	(255)	439
Reclassification adjustment for gain on sales of securities included in net income	(2)
Net effect on other comprehensive income (loss)	675	(1,157)
Net unrealized (loss) gain on interest rate swap:
Net unrealized (loss) gain on interest rate swap during the period	(221)	398
Income tax benefit (expense) relating to item above	61	(109)
Net effect on other comprehensive (loss) income	(160)	289
Other comprehensive income (loss)	515	(868)
Comprehensive income (loss)	$ 650	$ (613)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS 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, 2017	$ 2,801	$ 10,267	$ 21,605	$ (631)	$ 34,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			255		255
Cash dividends, $0.10 per share			(279)		(279)
Dividends reinvested under dividend reinvestment plan	3	34			37
Other comprehensive income (loss)				(868)	(868)
Balances at Mar. 31, 2018	2,804	10,301	21,581	(1,499)	33,187
Balances at Dec. 31, 2018	2,814	10,401	22,066	(1,230)	34,051
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			135		135
Cash dividends, $0.10 per share			(282)		(282)
Dividends reinvested under dividend reinvestment plan	4	32			36
Other comprehensive income (loss)				515	515
Balances at Mar. 31, 2019	$ 2,818	$ 10,433	$ 21,919	$ (715)	$ 34,455

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends, per share	$ 0.10	$ 0.10

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 135	$ 255
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion of premises and equipment	318	319
Provision for loan losses	173	360
Gain on life insurance		(207)
Increase in cash surrender value of bank owned life insurance	(40)	(42)
Increase in ground rents		3
Decrease in ground rents	(3)
Decrease (increase) in accrued interest receivable	89	(49)
Net (increase) decrease in other assets	(61)	700
Net decrease in accrued expenses and other liabilities	(416)	(175)
Net cash provided by operating activities	195	1,164
Cash flows from investing activities:
Redemptions and maturities of investment securities available for sale	22,815	2,663
Purchases of investment securities available for sale	(1,932)	(5,440)
Net sales of Federal Home Loan Bank stock	1,041	2
Net increase in loans	(408)	(4,138)
Purchases of premises and equipment	(47)	(19)
Net cash provided by (used in) investing activities	21,469	(6,932)
Cash flows from financing activities:
Net increase in deposits	9,163	1,932
Decrease in short term borrowings	(30,000)
Cash dividends paid	(282)	(279)
Common stock dividends reinvested	36	38
Net cash (used in) provided by financing activities	(21,083)	1,691
Net increase (decrease) in cash and cash equivalents	581	(4,077)
Cash and cash equivalents at beginning of year	15,954	12,605
Cash and cash equivalents at end of year	16,535	8,528
Supplemental Disclosures of Cash Flow Information:
Interest paid on deposits and borrowings	551	441
Income taxes paid		(583)
Income taxes refunded	36
Net decrease (increase) in unrealized depreciation on available for sale securities	932	(1,596)
Net (increase) decrease in unrealized appreciation on swaps	$ (221)	$ 398

ORGANIZATIONAL

ORGANIZATIONAL	3 Months Ended
	Mar. 31, 2019
ORGANIZATIONAL
ORGANIZATIONAL.	NOTE 1 – ORGANIZATIONAL Nature of Business Glen Burnie Bancorp (the “Company”) is a bank holding company organized in 1990 under the laws of the State of Maryland. The Company owns all the outstanding shares of capital stock of The Bank of Glen Burnie (the “Bank”), a commercial bank organized in 1949 under the laws of the State of Maryland (the “State”). The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland, and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2 – BASIS OF PRESENTATION In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2019 and December 31, 2018, the results of operations for the three-month period ended March 31, 2019 and 2018, and the statements of cash flows for the three-month period ended March 31, 2019 and 2018. The operating results for the three-month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 or any future interim period. The consolidated balance sheet at December 31, 2018 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 March 29, 2019. The unaudited consolidated financial statements for March 31, 2019 and 2018, the consolidated balance sheet at December 31, 2018, 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, 2018. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, The Bank of Glen Burnie. Consolidation resulted in the elimination of all intercompany accounts and transactions. On January 10, 2019, the Board of Directors (the “Board”) of the Company and the Bank approved the contribution from the Company to the Bank of all of the common stock of GBB Properties, Inc. (“GBB”). The contribution and assignment of 3,600 shares of common stock occurred on January 22, 2019 and was treated as a capital contribution. Prior to the contribution, the Company owned all of the outstanding shares of common stock of GBB a Maryland corporation which was organized in 1994 and which is engaged in the business of acquiring, holding and disposing of real property, typically acquired in connection with foreclosure proceedings (or deeds in lieu of foreclosure) instituted by the Bank. 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 2018 consolidated financial statements have been reclassified to conform to the 2019 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses (the “allowance”); the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and liabilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE
Earnings Per Common Share	NOTE 3 – EARNINGS PER SHARE Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options computed using the treasury stock method). Three Months Ended March 31, 2019 2018 Basic and diluted earnings per share: Net income $ 135,025 $ 255,469 Weighted average common shares outstanding 2,816,518 2,802,509 Basic and dilutive net income per share $ 0.05 $ 0.09 Diluted earnings per share calculations were not required for the three-month periods ended March 31, 2019 and 2018, as there were no stock options outstanding.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	3 Months Ended
	Mar. 31, 2019
INVESTMENT SECURITIES
Investment Securities	NOTE 4 – INVESTMENT SECURITIES Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities at March 31, 2019 or December 31, 2018. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company held no held-to-maturity securities at March 31, 2019 or December 31, 2018. Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities. The following table summarizes the amortized cost and estimated fair value of the Company’s investment securities portfolio at March 31, 2019 and December 31, 2018: At March 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 18,938 $ 1 $ (460) $ 18,479 Agency mortgage-backed securities 27,104 11 (518) 26,597 Municipal securities 13,437 40 (115) 13,362 U.S. Government agency securities 1,999 — (11) 1,988 U.S. Treasury securities 1,001 — (7) 994 Total securities available for sale $ 62,479 $ 52 $ (1,111) $ 61,420 At December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 20,463 $ 6 $ (663) $ 19,806 Agency mortgage-backed securities 25,895 6 (914) 24,987 Municipal securities 34,205 78 (453) 33,830 U.S. Government agency securities 1,999 — (40) 1,959 U.S. Treasury securities 1,001 — (11) 990 Total securities available for sale $ 83,563 $ 90 $ (2,081) $ 81,572 The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 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 $ — $ — $ 17,280 $ (460) $ 17,280 $ (460) Agency mortgage-backed securities — — 24,611 (518) 24,611 (518) Municipal securities — — 7,464 (115) 7,464 (115) U.S. Government agency securities — — 1,988 (11) 1,988 (11) U.S. Treasury securities — — 994 (7) 994 (7) $ — $ — $ 52,337 $ (1,111) $ 52,337 $ (1,111) December 31, 2018 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Collateralized mortgage obligations $ 1,625 $ (22) $ 17,546 $ (640) $ 19,171 $ (662) Agency mortgage-backed securities 3,399 (74) 21,417 (840) 24,816 (914) Municipal securities 13,162 (244) 8,415 (210) 21,577 (454) U.S. Government agency securities — — 1,959 (40) 1,959 (40) U.S. Treasury securities — — 990 (11) 990 (11) $ 18,186 $ (340) $ 50,327 $ (1,741) $ 68,513 $ (2,081) Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary-impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2019, the Company recorded unrealized losses in its portfolio of debt securities totaling $1.1 million related to 111 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, 2018, the Company recorded unrealized losses in its portfolio of debt securities totaling $2.1 million related to 142 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. Shown below are contractual maturities of debt securities at March 31, 2019. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2019 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 500 $ 497 1.58 % Over one to five years 1,001 993 1.72 % Over five to ten years 15,645 15,347 1.84 % Over ten years 45,333 44,583 2.38 % Total debt securities $ 62,479 $ 61,420 _____________________ (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 are computed on a tax-equivalent basis.

LOANS RECEIVABLE AND ALLOWANCE

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2019
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Loans Receivable and Allowance for Loan Losses	NOTE 5 – LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The fundamental lending business of the Company is based on understanding, measuring, and controlling the credit risk inherent in the loan portfolio. The Company's loan portfolio is subject to varying degrees of credit risk. These risks entail both general risks, which are inherent in the lending process, and risks specific to individual borrowers. The Company's credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type. The Company currently manages its credit products and the respective exposure to loan losses by the following specific portfolio segments, which are levels at which the Company develops and documents its systematic methodology to determine the allowance for loan losses. The Company considers each loan type to be a portfolio segment having unique risk characteristics. March 31, December 31, 2019 2018 (dollars in thousands) Amount % Amount % Consumer $ 12,876 4 $ 13,071 Residential real estate 81,567 27 82,637 Indirect 115,800 39 116,698 Commercial 14,504 5 14,284 Construction 2,090 1 2,317 Commercial real estate 72,580 24 70,113 Loans, net of deferred fees and costs 299,417 100 299,120 100 Less: Allowance for loan losses (2,605) (2,541) Loans, net $ 296,812 $ 296,579 The Bank’s net loans totaled $296.8 million at March 31, 2019, compared to $296.6 million at December 31, 2018, an increase of $0.2 million, or 0.08%. Consumer loans decreased from $13.1 million at December 31, 2018 to $12.9 million at March 31, 2019, a decrease of $0.2 million, or 1.49%. Residential real estate loans decreased by $1.1 million, or 1.29%, from $82.6 million at December 31, 2018 to $81.6 million at March 31, 2019. Indirect loans decreased from $116.7 million at December 31, 2018 to $115.8 million at March 31, 2019, a decrease of $0.9 million, or 0.77%. Commercial loans increased $0.2 million, or 1.54%, to $14.5 million at March 31, 2019, compared to $14.3 million at December 31, 2018. Construction loans decreased by $0.2 million, or 9.80% to $2.1 million at March 31, 2019, compared to $2.3 million at December 31, 2018. Commercial real estate loans increased from $70.1 million at December 31, 2018 to $72.6 million at March 31, 2019, an increase of $2.5 million or 3.52%. 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 forty-eight to sixty month period for their respective segments as well as the following qualitative factors: · Changes in asset quality metrics including past due loans (30 - 89 days), 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 three months ended March 31, 2019 and the year ended December 31, 2018 were as follows: March 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 161 $ 864 $ 988 $ 241 $ 4 $ 283 $ 2,541 Charge-offs — (12) (166) (27) — — (205) Recoveries 10 — 80 6 — — 96 Provision for loan losses 15 (35) 123 29 — 41 173 Balance, end of quarter $ 186 $ 817 $ 1,025 $ 249 $ 4 $ 324 $ 2,605 Individually evaluated for impairment: Balance in allowance $ 52 $ — $ — $ 203 $ — $ — $ 255 Related loan balance 248 1,071 — 287 — 1,234 2,840 Collectively evaluated for impairment: Balance in allowance $ 134 $ 817 $ 1,025 $ 46 $ 4 $ 324 $ 2,350 Related loan balance 12,628 80,496 115,800 14,217 2,090 71,346 296,577 December 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ 2,589 Charge-offs (208) (589) (341) — — (13) (1,151) Recoveries 48 2 183 14 — — 247 Provision for loan losses 107 390 372 (10) (8) 5 856 Balance, end of year $ 161 $ 864 $ 988 $ 241 $ 4 $ 283 $ 2,541 Individually evaluated for impairment: Balance in allowance $ 22 $ — $ — $ 204 $ — $ — $ 226 Related loan balance 138 854 — 204 — 1,054 2,250 Collectively evaluated for impairment: Balance in allowance $ 139 $ 864 $ 988 $ 37 $ 4 $ 283 $ 2,315 Related loan balance 12,933 81,783 116,698 14,080 2,317 69,059 296,870 Management believes the allowance for credit losses is at an appropriate level to absorb inherent probable losses in the portfolio. March 31, March 31, (dollars in thousands) 2019 2018 Average loans $ 299,506 $ 273,964 Net charge offs to average loans (annualized) 0.27 % 0.07 % During the three-month period ended March 31, 2019, loans to 19 borrowers and related entities totaling approximately $205,000 were determined to be uncollectible and were charged off. During the three-month period ending March 31, 2018, loans to 7 borrowers and related entities totaling approximately $102,000 were determined to be uncollectible and were charged off. Reserve for Unfunded Commitments . Loan commitments and unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. The Bank generally requires collateral to support financial instruments with credit risk on the same basis as it does for on-balance sheet instruments. The collateral requirement is based on management's credit evaluation of the counter party. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on a case-by-case basis. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of March 31, 2019 and 2018, the Bank had outstanding commitments totaling $33.0 million and $24.7 million, respectively. These outstanding commitments consisted of letters of credit, undrawn lines of credit, and other loan commitments. The following table shows the Bank’s reserve for unfunded commitments arising from these transactions: Three Months Ended March 31, (dollars in thousands) 2019 2018 Beginning balance $ 35 $ 24 Reduction of unfunded reserve (9) (18) Provisions charged to operations — 6 Ending balance $ 26 $ 12 Contractual Obligations and Commitments. No material changes, outside the normal course of business, have been made during the first quarter 2019. Asset Quality . The following tables set forth the amount of the Bank’s current, past due, and non-accrual loans by categories of loans and restructured loans, at the dates indicated. At March 31, 2019 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,412 $ 152 $ — $ 312 $ 12,876 Residential Real Estate 79,923 387 25 1,232 81,567 Indirect 114,981 633 — 186 115,800 Commercial 14,418 — — 86 14,504 Construction 2,090 — — — 2,090 Commercial Real Estate 69,104 2,830 — 646 72,580 $ 292,928 $ 4,002 $ 25 $ 2,462 $ 299,417 At December 31, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,669 $ 216 $ — $ 186 $ 13,071 Residential Real Estate 80,923 732 26 956 82,637 Indirect 115,890 692 — 116 116,698 Commercial 14,171 86 — 27 14,284 Construction 2,317 — — — 2,317 Commercial Real Estate 69,451 — — 662 70,113 $ 295,421 $ 1,726 $ 26 $ 1,947 $ 299,120 The balances in the above charts have not been reduced by the allowance for loan loss. For the period ending March 31, 2019, the allowance for loan loss is $2.6 million. For the period ending December 31, 2018, the allowance for loan loss is $2.5 million. At March 31, 2019, there was $0.8 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: $583,000 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; and a $202,000 Commercial loan with a loan to value ratio which has deteriorated, which has a complete specific reserve of $202,000. Both of these loans are classified with a risk rating of Substandard. Non-accrual loans with specific reserves at March 31, 2019 are comprised of: Consumer loans – Three loans to three borrowers that totaled $174,870 with specific reserves of $51,9 20 established for the loans. One of these loans totaling $42,831 with a specific reserve in the amount of $16,371 was also a Troubled Debt Restructured loan. Below is a summary of the recorded investment amount and related allowance for losses of the Bank’s impaired loans at March 31, 2019 and December 31, 2018. March 31, 2019 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 175 $ 175 $ 1 $ 52 $ 223 Commercial 287 287 — 203 289 Total impaired loans with specific reserves 462 462 1 255 512 Impaired loans with no specific reserve: Consumer $ 137 $ 137 $ — $ n/a $ 75 Residential Real Estate 1,235 2,004 1 n/a 2,176 Indirect 185 185 — n/a — Commercial Real Estate 1,234 1,544 10 n/a 1,305 Total impaired loans with no specific reserve $ 2,791 $ 3,869 $ 11 — $ 3,556 December 31, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 89 $ 89 $ 3 $ 22 $ 136 Commercial 204 204 12 204 211 Total impaired loans with specific reserves 294 294 15 226 347 Impaired loans with no specific reserve: Consumer $ 96 $ 300 $ 2 n/a $ 50 Residential Real Estate 956 1,545 4 n/a 1,981 Indirect 116 457 — n/a — Commercial Real Estate 1,267 1,267 39 n/a 1,148 Total impaired loans with no specific reserve $ 2,435 $ 3,569 $ 45 — $ 3,179 March 31, December 31, (dollars in thousands) 2019 2018 Troubled debt restructured loans $ 245 $ 248 Non-accrual and 90+ days past due and still accruing loans to average loans 0.90 % 0.73 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 104.7 % 128.7 % At March 31, 2019, there were two troubled debt restructured loans consisting of a commercial loan of $202,000 and a consumer loan of $43,000. The consumer loan is in a nonaccrual status. The following table shows the activity for non-accrual loans for the quarters ended March 31, 2018 and 2019. Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Totals December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 38 183 160 — — 2,000 2,381 Loans paid down/payoffs (9) (17) (33) — — (17) (76) Loans returned to accrual status — — (37) — — — (37) Loans charged off (63) — (34) — — — (97) March 31, 2018 151 2,290 144 48 318 2,490 5,441 December 31, 2018 186 956 116 27 — 662 1,947 Transfers into nonaccrual 134 571 270 86 — — 1,061 Loans paid down/payoffs (8) (283) (8) — — (16) (315) Loans returned to accrual status — — (19) — — — (19) Loans charged off — (12) (173) (27) — — (212) March 31, 2019 312 1,232 186 86 — 646 2,462 Other Real Estate Owned. At March 31, 2019 and December 31, 2018, the Company had $705,000 in real estate acquired in partial or total satisfaction of debt. 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 were included in noninterest income. 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 tables provides information with respect to the Company's credit quality indicators by loan portfolio segment at March 31, 2019 and December 31, 2018: March 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,564 $ 80,397 $ 115,615 $ 14,217 $ 2,090 $ 71,346 $ 296,229 Special mention — — — — — — — Substandard 312 1,170 67 287 — 1,234 3,070 Doubtful — — 118 — — — 118 Loss — — — — — — — $ 12,876 $ 81,567 $ 115,800 $ 14,504 $ 2,090 $ 72,580 $ 299,417 Nonaccrual $ 312 $ 1,232 $ 186 $ 86 $ — $ 646 $ 2,462 Troubled debt restructures $ 43 $ — $ — $ 202 $ — $ — $ 245 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs $ 43 $ — $ — $ — $ — $ — $ 43 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,888 $ 82,111 $ 115,724 $ 14,284 $ 2,317 $ 69,900 $ 297,224 Special mention — 424 645 — — — 1,069 Substandard 183 102 244 — — 213 742 Doubtful — — 85 — — — 85 Loss — — — — — — — $ 13,071 $ 82,637 $ 116,698 $ 14,284 $ 2,317 $ 70,113 $ 299,120 Nonaccrual $ 186 $ 956 $ 116 $ 27 $ — $ 662 $ 1,947 Troubled debt restructures $ 44 $ — $ — $ 204 $ — $ — $ 248 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs $ 44 $ — $ — $ — $ — $ — $ 44 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2019
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 and Interest Rate Swaps. Investment securities available-for-sale and interest rate swap contracts are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage backed securities issued by government sponsored entities, municipal bonds and corporate debt securities, and interest rate swap contracts. Securities classified as Level 3 include asset-backed securities in illiquid markets. The Bank may be required, from time to time, to measure certain other financial and non-financial assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. Loans. At March 31, 2019, these assets include 26 loans, excluding $349,000 of residential real estate, consumer and indirect loans, classified as impaired, which include nonaccrual, past due 90 days or more and still accruing, and a homogeneous pool of indirect loans all considered to be impaired loans, which are valued under Level 3 inputs. Loans which are deemed to be impaired ($2.8 million of loans with $255,000 of specific reserves as of March 31, 2019) and foreclosed real estate assets are primarily valued on a nonrecurring basis at the fair values of the underlying real estate collateral. The Company is predominantly a cash flow lender with real estate serving as collateral on a majority of loans ($2.4 million of the total impaired loans as of March 31, 2019). 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 ($785,000 million with $255,000 of specific reserves as of March 31, 2019) include mobile homes, commercial, consumer, and indirect auto loans, which are valued based on the value of the underlying collateral. The changes in the assets subject to fair value measurements are summarized below by level: Fair (dollars in thousands) Level 1 Level 2 Level 3 Value March 31, 2019 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 18,479 $ — $ 18,479 Agency mortgage-backed securities — 26,597 — 26,597 Municipal securities — 13,362 — 13,362 U.S. Government agency securities — 1,988 — 1,988 U.S. Treasury securities — 994 — 994 Interest rate swap — 73 — 73 Non-recurring: Maryland Financial Bank stock — — 5 5 Impaired loans — — 2,999 2,999 OREO — 705 — 705 $ — $ 62,198 $ 3,004 $ 65,202 December 31, 2018 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 19,806 $ — $ 19,806 Agency mortgage-backed securities — 24,987 — 24,987 Municipal securities — 33,830 — 33,830 U.S. Government agency securities — 1,959 — 1,959 U.S. Treasury securities — 990 — 990 Interest rate swap — 295 — 295 Non-recurring: Maryland Financial Bank stock — — 5 5 Impaired loans — — 2,501 2,501 OREO 705 705 $ — $ 82,572 $ 2,506 $ 85,078 The estimated fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018 are summarized below. The fair values of a significant portion of these financial instruments are estimates derived using present value techniques and may not be indicative of the net realizable or liquidation values. Also, the calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values. March 31, 2019 December 31, 2018 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,341 $ 2,341 $ 2,605 $ 2,605 Interest-bearing deposits in other financial institutions 14,194 14,194 12,468 12,468 Federal funds sold 62 62 881 881 Investment securities available for sale 61,420 61,420 81,572 81,572 Investments in restricted stock 1,439 1,439 2,481 2,481 Ground rents 146 146 143 143 Loans, less allowance for credit losses 296,812 293,507 296,579 293,175 Accrued interest receivable 1,110 1,110 1,198 1,198 Cash value of life insurance 7,900 7,900 7,860 7,860 Financial liabilities: Deposits 331,613 309,010 322,453 307,271 Long-term borrowings — — — — Short-term borrowings 25,000 25,004 55,000 55,851 Accrued interest payable 132 132 152 152 Unrecognized financial instruments: Commitments to extend credit 24,664 24,664 19,905 19,905 Standby letters of credit 1,059 1,059 1,059 1,059 The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments. (dollars in thousands) Carrying Fair March 31, 2019 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 16,597 $ 16,597 $ 16,597 — $ — Loans receivable, net 296,812 293,507 — — 293,507 Cash value of life insurance 7,900 7,900 — 7,900 — Financial instruments - Liabilities Deposits 331,613 309,010 — 309,010 — Short-term debt 25,000 25,004 — 25,004 — 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 if available, or measured using pricing models or other model-based valuation techniques such as present value and future value cash flows. The fair value of loans receivable is estimated using discounted cash flow analysis. For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. Cash surrender value of life insurance is reported in the Level 2 fair value category. The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discounted rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 2 fair value category. The fair value of non-interest bearing deposits, interest-bearing checking, savings, and money market deposit accounts, securities sold under agreements to repurchase, and accrued interest payable are equal to the carrying amounts. The fair value of fixed-maturity time deposits is estimated using discounted cash flow analysis.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2019
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 7 – RECENT ACCOUNTING PRONOUNCEMENTS The FASB has issued several exposure drafts which, if adopted, could 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. Accounting Standards Update (“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. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. 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, “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 was 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).” In February 2016, the FASB issued ASU No. 2016-02. This guidance provides that lessees will be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company adopted the provisions of ASU No. 2016-02 on January 1, 2019 and elected several practical expedients made available by the FASB. Specifically, the Company elected the transition practical expedient to not recast comparative periods upon the adoption of the new guidance. In addition, the Company elected the package of practical expedients which among other things, requires no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for existing leases and the practical expedient which permits the Company to not separate nonlease components from lease components in determining the consideration in the lease agreement when the Company is a lessee and a lessor. The Company identified the primary lease agreements in scope of this new guidance as those relating to branch premises. As a result, the Company recognized a lease liability of $0.8 million and a related right-of-use asset of $0.8 million on its consolidated balance sheet on January 1, 2019. 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. While the Company generally expects that the implementation of ASU 2016-13 will increase the allowance for loan losses balance, the Company is continuing to evaluate the potential impact on the Company’s financial statements. ASU 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016‑15”). ASU 2016 15 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 the Company 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 the Company on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2017‑08, “Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities.” ASU 2017‑08 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 was effective for interim and annual reporting periods beginning after December 15, 2018. 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. ASU 2017-08 was effective for the Company on January 1, 2019 and did not have a significant impact on our 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 was permitted. ASU 2017-12 was effective for the Company on January 1, 2019 and did not have a significant impact on our 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 $104,000 of stranded tax effects related to net unrealized losses on investment securities. The impact was not material. ASU No. 2018-11, “Leases - Targeted Improvements.” ASU No. 2018-11 provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company elected both transition options. ASU 2018-11 did not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2018-14, “ Compensation – Retirement Benefit Plans – General (Subtopic 715-20).” ASU 2018-14 makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2019-01, Leases (Topic 842): “Codification Improvements.” On March 5, 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which amends certain aspects of the Board’s new leasing standard, ASU 2016-02 to address two lessor implementation issues and clarify when lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard, Topic 842, Leases. ASU 2019-01 aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. As ASU 2019-01 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of presentation	BASIS OF PRESENTATION In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2019 and December 31, 2018, the results of operations for the three-month period ended March 31, 2019 and 2018, and the statements of cash flows for the three-month period ended March 31, 2019 and 2018. The operating results for the three-month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019 or any future interim period. The consolidated balance sheet at December 31, 2018 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 March 29, 2019. The unaudited consolidated financial statements for March 31, 2019 and 2018, the consolidated balance sheet at December 31, 2018, 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, 2018.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, The Bank of Glen Burnie. Consolidation resulted in the elimination of all intercompany accounts and transactions. On January 10, 2019, the Board of Directors (the “Board”) of the Company and the Bank approved the contribution from the Company to the Bank of all of the common stock of GBB Properties, Inc. (“GBB”). The contribution and assignment of 3,600 shares of common stock occurred on January 22, 2019 and was treated as a capital contribution. Prior to the contribution, the Company owned all of the outstanding shares of common stock of GBB a Maryland corporation which was organized in 1994 and which is engaged in the business of acquiring, holding and disposing of real property, typically acquired in connection with foreclosure proceedings (or deeds in lieu of foreclosure) instituted by the Bank.
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 2018 consolidated financial statements have been reclassified to conform to the 2019 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, could 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. Accounting Standards Update (“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. The Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. 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, “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 was 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).” In February 2016, the FASB issued ASU No. 2016-02. This guidance provides that lessees will be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company adopted the provisions of ASU No. 2016-02 on January 1, 2019 and elected several practical expedients made available by the FASB. Specifically, the Company elected the transition practical expedient to not recast comparative periods upon the adoption of the new guidance. In addition, the Company elected the package of practical expedients which among other things, requires no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for existing leases and the practical expedient which permits the Company to not separate nonlease components from lease components in determining the consideration in the lease agreement when the Company is a lessee and a lessor. The Company identified the primary lease agreements in scope of this new guidance as those relating to branch premises. As a result, the Company recognized a lease liability of $0.8 million and a related right-of-use asset of $0.8 million on its consolidated balance sheet on January 1, 2019. 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. While the Company generally expects that the implementation of ASU 2016-13 will increase the allowance for loan losses balance, the Company is continuing to evaluate the potential impact on the Company’s financial statements. ASU 2016‑15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016‑15”). ASU 2016 15 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 the Company 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 the Company on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2017‑08, “Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities.” ASU 2017‑08 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 was effective for interim and annual reporting periods beginning after December 15, 2018. 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. ASU 2017-08 was effective for the Company on January 1, 2019 and did not have a significant impact on our 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 was permitted. ASU 2017-12 was effective for the Company on January 1, 2019 and did not have a significant impact on our 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 $104,000 of stranded tax effects related to net unrealized losses on investment securities. The impact was not material. ASU No. 2018-11, “Leases - Targeted Improvements.” ASU No. 2018-11 provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company elected both transition options. ASU 2018-11 did not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2018-13, “Fair Value Measurement (Topic 820).” ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2018-14, “ Compensation – Retirement Benefit Plans – General (Subtopic 715-20).” ASU 2018-14 makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements. ASU No. 2019-01, Leases (Topic 842): “Codification Improvements.” On March 5, 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which amends certain aspects of the Board’s new leasing standard, ASU 2016-02 to address two lessor implementation issues and clarify when lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard, Topic 842, Leases. ASU 2019-01 aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value (in Topic 820, Fair Value Measurement) should be applied. The ASU also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending, to present all “principal payments received under leases” within investing activities. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. As ASU 2019-01 only revises disclosure requirements, it will not have a material impact on the Company’s Consolidated Financial Statements.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
EARNINGS PER SHARE
Schedule of earnings per common share	Three Months Ended March 31, 2019 2018 Basic and diluted earnings per share: Net income $ 135,025 $ 255,469 Weighted average common shares outstanding 2,816,518 2,802,509 Basic and dilutive net income per share $ 0.05 $ 0.09

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
INVESTMENT SECURITIES
Schedule of summary of investment securities	At March 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 18,938 $ 1 $ (460) $ 18,479 Agency mortgage-backed securities 27,104 11 (518) 26,597 Municipal securities 13,437 40 (115) 13,362 U.S. Government agency securities 1,999 — (11) 1,988 U.S. Treasury securities 1,001 — (7) 994 Total securities available for sale $ 62,479 $ 52 $ (1,111) $ 61,420 At December 31, 2018 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 20,463 $ 6 $ (663) $ 19,806 Agency mortgage-backed securities 25,895 6 (914) 24,987 Municipal securities 34,205 78 (453) 33,830 U.S. Government agency securities 1,999 — (40) 1,959 U.S. Treasury securities 1,001 — (11) 990 Total securities available for sale $ 83,563 $ 90 $ (2,081) $ 81,572
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position	The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 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 $ — $ — $ 17,280 $ (460) $ 17,280 $ (460) Agency mortgage-backed securities — — 24,611 (518) 24,611 (518) Municipal securities — — 7,464 (115) 7,464 (115) U.S. Government agency securities — — 1,988 (11) 1,988 (11) U.S. Treasury securities — — 994 (7) 994 (7) $ — $ — $ 52,337 $ (1,111) $ 52,337 $ (1,111) December 31, 2018 Less than 12 months 12 months or more Total Securities available for sale: Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss (dollars in thousands) Collateralized mortgage obligations $ 1,625 $ (22) $ 17,546 $ (640) $ 19,171 $ (662) Agency mortgage-backed securities 3,399 (74) 21,417 (840) 24,816 (914) Municipal securities 13,162 (244) 8,415 (210) 21,577 (454) U.S. Government agency securities — — 1,959 (40) 1,959 (40) U.S. Treasury securities — — 990 (11) 990 (11) $ 18,186 $ (340) $ 50,327 $ (1,741) $ 68,513 $ (2,081)
Schedule of contractual maturities of investment securities	Shown below are contractual maturities of debt securities at March 31, 2019. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2019 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 500 $ 497 1.58 % Over one to five years 1,001 993 1.72 % Over five to ten years 15,645 15,347 1.84 % Over ten years 45,333 44,583 2.38 % Total debt securities $ 62,479 $ 61,420 _____________________ (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 are computed on a tax-equivalent basis.

LOANS RECEIVABLE AND ALLOWANC_2

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2019
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Schedule of major categories of loans	March 31, December 31, 2019 2018 (dollars in thousands) Amount % Amount % Consumer $ 12,876 4 $ 13,071 Residential real estate 81,567 27 82,637 Indirect 115,800 39 116,698 Commercial 14,504 5 14,284 Construction 2,090 1 2,317 Commercial real estate 72,580 24 70,113 Loans, net of deferred fees and costs 299,417 100 299,120 100 Less: Allowance for loan losses (2,605) (2,541) Loans, net $ 296,812 $ 296,579
Schedule of total allowance by loan segment	March 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 161 $ 864 $ 988 $ 241 $ 4 $ 283 $ 2,541 Charge-offs — (12) (166) (27) — — (205) Recoveries 10 — 80 6 — — 96 Provision for loan losses 15 (35) 123 29 — 41 173 Balance, end of quarter $ 186 $ 817 $ 1,025 $ 249 $ 4 $ 324 $ 2,605 Individually evaluated for impairment: Balance in allowance $ 52 $ — $ — $ 203 $ — $ — $ 255 Related loan balance 248 1,071 — 287 — 1,234 2,840 Collectively evaluated for impairment: Balance in allowance $ 134 $ 817 $ 1,025 $ 46 $ 4 $ 324 $ 2,350 Related loan balance 12,628 80,496 115,800 14,217 2,090 71,346 296,577 December 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 214 $ 1,061 $ 774 $ 237 $ 12 $ 291 $ 2,589 Charge-offs (208) (589) (341) — — (13) (1,151) Recoveries 48 2 183 14 — — 247 Provision for loan losses 107 390 372 (10) (8) 5 856 Balance, end of year $ 161 $ 864 $ 988 $ 241 $ 4 $ 283 $ 2,541 Individually evaluated for impairment: Balance in allowance $ 22 $ — $ — $ 204 $ — $ — $ 226 Related loan balance 138 854 — 204 — 1,054 2,250 Collectively evaluated for impairment: Balance in allowance $ 139 $ 864 $ 988 $ 37 $ 4 $ 283 $ 2,315 Related loan balance 12,933 81,783 116,698 14,080 2,317 69,059 296,870
Schedule of allowances for credit losses	March 31, March 31, (dollars in thousands) 2019 2018 Average loans $ 299,506 $ 273,964 Net charge offs to average loans (annualized) 0.27 % 0.07 %
Schedule of reserve for unfunded commitments	Three Months Ended March 31, (dollars in thousands) 2019 2018 Beginning balance $ 35 $ 24 Reduction of unfunded reserve (9) (18) Provisions charged to operations — 6 Ending balance $ 26 $ 12
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans	At March 31, 2019 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,412 $ 152 $ — $ 312 $ 12,876 Residential Real Estate 79,923 387 25 1,232 81,567 Indirect 114,981 633 — 186 115,800 Commercial 14,418 — — 86 14,504 Construction 2,090 — — — 2,090 Commercial Real Estate 69,104 2,830 — 646 72,580 $ 292,928 $ 4,002 $ 25 $ 2,462 $ 299,417 At December 31, 2018 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,669 $ 216 $ — $ 186 $ 13,071 Residential Real Estate 80,923 732 26 956 82,637 Indirect 115,890 692 — 116 116,698 Commercial 14,171 86 — 27 14,284 Construction 2,317 — — — 2,317 Commercial Real Estate 69,451 — — 662 70,113 $ 295,421 $ 1,726 $ 26 $ 1,947 $ 299,120
Schedule of impaired financing receivables	March 31, 2019 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 175 $ 175 $ 1 $ 52 $ 223 Commercial 287 287 — 203 289 Total impaired loans with specific reserves 462 462 1 255 512 Impaired loans with no specific reserve: Consumer $ 137 $ 137 $ — $ n/a $ 75 Residential Real Estate 1,235 2,004 1 n/a 2,176 Indirect 185 185 — n/a — Commercial Real Estate 1,234 1,544 10 n/a 1,305 Total impaired loans with no specific reserve $ 2,791 $ 3,869 $ 11 — $ 3,556 December 31, 2018 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 89 $ 89 $ 3 $ 22 $ 136 Commercial 204 204 12 204 211 Total impaired loans with specific reserves 294 294 15 226 347 Impaired loans with no specific reserve: Consumer $ 96 $ 300 $ 2 n/a $ 50 Residential Real Estate 956 1,545 4 n/a 1,981 Indirect 116 457 — n/a — Commercial Real Estate 1,267 1,267 39 n/a 1,148 Total impaired loans with no specific reserve $ 2,435 $ 3,569 $ 45 — $ 3,179
Schedule of allowance for loan loss and the unearned income on loans	March 31, December 31, (dollars in thousands) 2019 2018 Troubled debt restructured loans $ 245 $ 248 Non-accrual and 90+ days past due and still accruing loans to average loans 0.90 % 0.73 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 104.7 % 128.7 %
Schedule of non accrual loans	Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Totals December 31, 2017 185 2,124 88 48 318 507 3,270 Transfers into nonaccrual 38 183 160 — — 2,000 2,381 Loans paid down/payoffs (9) (17) (33) — — (17) (76) Loans returned to accrual status — — (37) — — — (37) Loans charged off (63) — (34) — — — (97) March 31, 2018 151 2,290 144 48 318 2,490 5,441 December 31, 2018 186 956 116 27 — 662 1,947 Transfers into nonaccrual 134 571 270 86 — — 1,061 Loans paid down/payoffs (8) (283) (8) — — (16) (315) Loans returned to accrual status — — (19) — — — (19) Loans charged off — (12) (173) (27) — — (212) March 31, 2019 312 1,232 186 86 — 646 2,462
Schedule of risk ratings of loans by categories of loans	The following tables provides information with respect to the Company's credit quality indicators by loan portfolio segment at March 31, 2019 and December 31, 2018: March 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,564 $ 80,397 $ 115,615 $ 14,217 $ 2,090 $ 71,346 $ 296,229 Special mention — — — — — — — Substandard 312 1,170 67 287 — 1,234 3,070 Doubtful — — 118 — — — 118 Loss — — — — — — — $ 12,876 $ 81,567 $ 115,800 $ 14,504 $ 2,090 $ 72,580 $ 299,417 Nonaccrual $ 312 $ 1,232 $ 186 $ 86 $ — $ 646 $ 2,462 Troubled debt restructures $ 43 $ — $ — $ 202 $ — $ — $ 245 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs $ 43 $ — $ — $ — $ — $ — $ 43 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2018 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,888 $ 82,111 $ 115,724 $ 14,284 $ 2,317 $ 69,900 $ 297,224 Special mention — 424 645 — — — 1,069 Substandard 183 102 244 — — 213 742 Doubtful — — 85 — — — 85 Loss — — — — — — — $ 13,071 $ 82,637 $ 116,698 $ 14,284 $ 2,317 $ 70,113 $ 299,120 Nonaccrual $ 186 $ 956 $ 116 $ 27 $ — $ 662 $ 1,947 Troubled debt restructures $ 44 $ — $ — $ 204 $ — $ — $ 248 Number of TDRs accounts 1 — — 1 — — 2 Non-performing TDRs $ 44 $ — $ — $ — $ — $ — $ 44 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2019
FAIR VALUE
Schedule of changes in asset subject to fair value measurement by Level	Fair (dollars in thousands) Level 1 Level 2 Level 3 Value March 31, 2019 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 18,479 $ — $ 18,479 Agency mortgage-backed securities — 26,597 — 26,597 Municipal securities — 13,362 — 13,362 U.S. Government agency securities — 1,988 — 1,988 U.S. Treasury securities — 994 — 994 Interest rate swap — 73 — 73 Non-recurring: Maryland Financial Bank stock — — 5 5 Impaired loans — — 2,999 2,999 OREO — 705 — 705 $ — $ 62,198 $ 3,004 $ 65,202 December 31, 2018 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 19,806 $ — $ 19,806 Agency mortgage-backed securities — 24,987 — 24,987 Municipal securities — 33,830 — 33,830 U.S. Government agency securities — 1,959 — 1,959 U.S. Treasury securities — 990 — 990 Interest rate swap — 295 — 295 Non-recurring: Maryland Financial Bank stock — — 5 5 Impaired loans — — 2,501 2,501 OREO 705 705 $ — $ 82,572 $ 2,506 $ 85,078
Schedule of estimated fair values of financial instruments	March 31, 2019 December 31, 2018 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,341 $ 2,341 $ 2,605 $ 2,605 Interest-bearing deposits in other financial institutions 14,194 14,194 12,468 12,468 Federal funds sold 62 62 881 881 Investment securities available for sale 61,420 61,420 81,572 81,572 Investments in restricted stock 1,439 1,439 2,481 2,481 Ground rents 146 146 143 143 Loans, less allowance for credit losses 296,812 293,507 296,579 293,175 Accrued interest receivable 1,110 1,110 1,198 1,198 Cash value of life insurance 7,900 7,900 7,860 7,860 Financial liabilities: Deposits 331,613 309,010 322,453 307,271 Long-term borrowings — — — — Short-term borrowings 25,000 25,004 55,000 55,851 Accrued interest payable 132 132 152 152 Unrecognized financial instruments: Commitments to extend credit 24,664 24,664 19,905 19,905 Standby letters of credit 1,059 1,059 1,059 1,059
Schedule of fair value hierarchy of financial instruments	(dollars in thousands) Carrying Fair March 31, 2019 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 16,597 $ 16,597 $ 16,597 — $ — Loans receivable, net 296,812 293,507 — — 293,507 Cash value of life insurance 7,900 7,900 — 7,900 — Financial instruments - Liabilities Deposits 331,613 309,010 — 309,010 — Short-term debt 25,000 25,004 — 25,004 —

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	Jan. 10, 2019shares
BASIS OF PRESENTATION
Capital contributions common share	3,600

EARNINGS PER SHARE - Basic earn

EARNINGS PER SHARE - Basic earnings per share of common stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic and diluted:
Net income	$ 135	$ 255
Weighted average common shares outstanding (in shares)	2,816,518	2,802,509
Basic net income per share (in dollars per share)	$ 0.05	$ 0.09
Options outstanding	0	0

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Investment Securities
Amortized Cost	$ 62,479,000	$ 83,563,000
Gross Unrealized Gains	52,000	90,000
Gross Unrealized Losses	(1,111,000)	(2,081,000)
Fair Value	61,420,000	81,572,000
Trading securities	0	0
Held to maturity	0	0
Collateralized mortgage obligations
Investment Securities
Amortized Cost	18,938,000	20,463,000
Gross Unrealized Gains	1,000	6,000
Gross Unrealized Losses	(460,000)	(663,000)
Fair Value	18,479,000	19,806,000
Agency mortgage-backed securities
Investment Securities
Amortized Cost	27,104,000	25,895,000
Gross Unrealized Gains	11,000	6,000
Gross Unrealized Losses	(518,000)	(914,000)
Fair Value	26,597,000	24,987,000
Municipal securities
Investment Securities
Amortized Cost	13,437,000	34,205,000
Gross Unrealized Gains	40,000	78,000
Gross Unrealized Losses	(115,000)	(453,000)
Fair Value	13,362,000	33,830,000
U.S. Government agency securities
Investment Securities
Amortized Cost	1,999,000	1,999,000
Gross Unrealized Losses	(11,000)	(40,000)
Fair Value	1,988,000	1,959,000
U.S. Treasury securities
Investment Securities
Amortized Cost	1,001,000	1,001,000
Gross Unrealized Losses	(7,000)	(11,000)
Fair Value	$ 994,000	$ 990,000

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) $ in Thousands	Mar. 31, 2019USD ($)security	Dec. 31, 2018USD ($)security
Investment Securities
Less than 12 months Fair Value		$ 18,186
Less than 12 months Unrealized Loss		(340)
12 months or more Fair Value	$ 52,337	50,327
12 months or more Unrealized Loss	(1,111)	(1,741)
Total Fair Value	52,337	68,513
Total Unrealized Loss	$ (1,111)	$ (2,081)
Number of securities continuous unrealized loss position more than twelve months | security	111	142
Collateralized mortgage obligations
Investment Securities
Less than 12 months Fair Value		$ 1,625
Less than 12 months Unrealized Loss		(22)
12 months or more Fair Value	$ 17,280	17,546
12 months or more Unrealized Loss	(460)	(640)
Total Fair Value	17,280	19,171
Total Unrealized Loss	(460)	(662)
Agency mortgage-backed securities
Investment Securities
Less than 12 months Fair Value		3,399
Less than 12 months Unrealized Loss		(74)
12 months or more Fair Value	24,611	21,417
12 months or more Unrealized Loss	(518)	(840)
Total Fair Value	24,611	24,816
Total Unrealized Loss	(518)	(914)
Municipal securities
Investment Securities
Less than 12 months Fair Value		13,162
Less than 12 months Unrealized Loss		(244)
12 months or more Fair Value	7,464	8,415
12 months or more Unrealized Loss	(115)	(210)
Total Fair Value	7,464	21,577
Total Unrealized Loss	(115)	(454)
U.S. Government agency securities
Investment Securities
12 months or more Fair Value	1,988	1,959
12 months or more Unrealized Loss	(11)	(40)
Total Fair Value	1,988	1,959
Total Unrealized Loss	(11)	(40)
U.S. Treasury securities
Investment Securities
12 months or more Fair Value	994	990
12 months or more Unrealized Loss	(7)	(11)
Total Fair Value	994	990
Total Unrealized Loss	$ (7)	$ (11)

INVESTMENT SECURITIES - Contrac

INVESTMENT SECURITIES - Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available for Sale Amortized Cost
Due within one year	$ 500
Due over one to five years	1,001
Due over five to ten years	15,645
Due over ten years	45,333
Amortized Cost	62,479	$ 83,563
Available for Sale Fair Value
Due within one year	497
Due over one to five years	993
Due over five to ten years	15,347
Due over ten years	44,583
Fair Value	$ 61,420	81,572
Available for Sale, Yield
Within one year	1.58%
Over one to five years	1.72%
Over five to ten years	1.84%
Over ten years	2.38%
Collateralized mortgage obligations
Available for Sale Amortized Cost
Amortized Cost	$ 18,938	20,463
Available for Sale Fair Value
Fair Value	18,479	19,806
Agency mortgage-backed securities
Available for Sale Amortized Cost
Amortized Cost	27,104	25,895
Available for Sale Fair Value
Fair Value	$ 26,597	$ 24,987

LOANS RECEIVABLE AND ALLOWANC_3

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Major Categories of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 299,417	$ 299,120
Less: Allowance for loan losses	(2,605)	(2,541)
Loans, net	$ 296,812	$ 296,579
Loans and lease receivable allowances, percentage	100.00%	100.00%
Increase (decrease) in loans and leases receivable	$ 200
Percentage of increase (decrease) in loans and leases receivable	0.08%
Consumer
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 12,876	$ 13,071
Loans and lease receivable allowances, percentage	4.00%	4.00%
Increase (decrease) in loans and leases receivable	$ 200
Percentage of increase (decrease) in loans and leases receivable	1.49%
Residential Real estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 81,567	$ 82,637
Loans and lease receivable allowances, percentage	27.00%	28.00%
Increase (decrease) in loans and leases receivable	$ 1,100
Percentage of increase (decrease) in loans and leases receivable	1.29%
Indirect
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 115,800	$ 116,698
Loans and lease receivable allowances, percentage	39.00%	39.00%
Increase (decrease) in loans and leases receivable	$ 900
Percentage of increase (decrease) in loans and leases receivable	0.77%
Commercial
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 14,504	$ 14,284
Loans and lease receivable allowances, percentage	5.00%	5.00%
Increase (decrease) in loans and leases receivable	$ 200
Percentage of increase (decrease) in loans and leases receivable	1.54%
Construction
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 2,090	$ 2,317
Loans and lease receivable allowances, percentage	1.00%	1.00%
Increase (decrease) in loans and leases receivable	$ 200
Percentage of increase (decrease) in loans and leases receivable	9.80%
Commercial Real Estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 72,580	$ 70,113
Loans and lease receivable allowances, percentage	24.00%	23.00%
Increase (decrease) in loans and leases receivable	$ 2,500
Percentage of increase (decrease) in loans and leases receivable	(3.52%)

LOANS RECEIVABLE AND ALLOWANC_4

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Total Allowance by Loan Segment (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	$ 2,541,000	$ 2,589,000	$ 2,589,000
Charged off	(205,000)	(102,000)	(1,151,000)
Recoveries	96,000		247,000
Provision for loan losses	173,000	360,000	856,000
Balance, end of year	2,605,000		2,541,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	255,000		226,000
Individually evaluated for impairment, Related loan balance	2,840,000		2,250,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	2,350,000		2,315,000
Collectively evaluated for impairment, Related loan balance	296,577,000		296,870,000
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	161,000	214,000	214,000
Charged off			(208,000)
Recoveries	10,000		48,000
Provision for loan losses	15,000		107,000
Balance, end of year	186,000		161,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	52,000		22,000
Individually evaluated for impairment, Related loan balance	248,000		138,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	134,000		139,000
Collectively evaluated for impairment, Related loan balance	12,628,000		12,933,000
Residential Real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	864,000	1,061,000	1,061,000
Charged off	(12,000)		(589,000)
Recoveries			2,000
Provision for loan losses	(35,000)		390,000
Balance, end of year	817,000		864,000
Individually evaluated for impairment:
Individually evaluated for impairment, Related loan balance	1,071,000		854,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	817,000		864,000
Collectively evaluated for impairment, Related loan balance	80,496,000		81,783,000
Indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	988,000	774,000	774,000
Charged off	(166,000)		(341,000)
Recoveries	80,000		183,000
Provision for loan losses	123,000		372,000
Balance, end of year	1,025,000		988,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	1,025,000		988,000
Collectively evaluated for impairment, Related loan balance	115,800,000		116,698,000
Commercial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	241,000	237,000	237,000
Charged off	(27,000)
Recoveries	6,000		14,000
Provision for loan losses	29,000		(10,000)
Balance, end of year	249,000		241,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	203,000		204,000
Individually evaluated for impairment, Related loan balance	287,000		204,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	46,000		37,000
Collectively evaluated for impairment, Related loan balance	14,217,000		14,080,000
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	4,000	12,000	12,000
Provision for loan losses			(8,000)
Balance, end of year	4,000		4,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	4,000		4,000
Collectively evaluated for impairment, Related loan balance	2,090,000		2,317,000
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	283,000	$ 291,000	291,000
Charged off			(13,000)
Provision for loan losses	41,000		5,000
Balance, end of year	324,000		283,000
Individually evaluated for impairment:
Individually evaluated for impairment, Related loan balance	1,234,000		1,054,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	324,000		283,000
Collectively evaluated for impairment, Related loan balance	$ 71,346,000		$ 69,059,000

LOANS RECEIVABLE AND ALLOWANC_5

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Allowance for credit losses (Details)	3 Months Ended					12 Months Ended
	Mar. 31, 2019USD ($)borrower	Mar. 31, 2019USD ($)loan	Mar. 31, 2019USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)borrower	Dec. 31, 2018USD ($)
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Average loans				$ 299,506,000	$ 273,964,000
Net charge-offs to average loans (annualized)			0.27%		0.07%
Number of borrowers	19	1			7
Loans charged off				205,000	$ 102,000	$ 1,151,000
Outstanding commitments	$ 33,000,000	$ 33,000,000	$ 33,000,000	33,000,000	24,700,000
Unfunded commitments
Beginning balance				35,000	24,000	24,000
Reduction of unfunded reserve				(9,000)	(18,000)
Provisions charged to operations					6,000
Ending balance				$ 26,000	$ 12,000	$ 35,000

LOANS RECEIVABLE AND ALLOWANC_6

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Current, past due, and non-accrual loans by categories of loans and restructured loans (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 292,928,000	$ 295,421,000
Past Due	800,000
Non-accrual	2,462,000	1,947,000	$ 5,441,000	$ 3,270,000
Total	299,417,000	299,120,000
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	4,002,000	1,726,000
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
90 Days or More and Still Accruing	25,000	26,000
Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	3,070,000	742,000
Substandard | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	1,000,000
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	12,412,000	12,669,000
Non-accrual	312,000	186,000	151,000	185,000
Total	12,876,000	13,071,000
Consumer | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	152,000	216,000
Consumer | Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	312,000	183,000
Residential Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	79,923,000	80,923,000
Non-accrual	1,232,000	956,000	2,290,000	2,124,000
Total	81,567,000	82,637,000
Residential Real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	387,000	732,000
Residential Real estate | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
90 Days or More and Still Accruing	25,000	26,000
Residential Real estate | Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,170,000	102,000
Indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	114,981,000	115,890,000
Non-accrual	186,000	116,000	144,000	88,000
Total	115,800,000	116,698,000
Indirect | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	633,000	692,000
Indirect | Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	67,000	244,000
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	14,418,000	14,171,000
Non-accrual	86,000	27,000	48,000	48,000
Total	14,504,000	14,284,000
Commercial | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		86,000
Commercial | Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	287,000
Commercial | Substandard | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	202,000
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,090,000	2,317,000
Non-accrual				318,000
Total	2,090,000	2,317,000
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	69,104,000	69,451,000
Non-accrual	646,000	662,000	$ 2,490,000	$ 507,000
Total	72,580,000	70,113,000
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	2,830,000
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total	1,234,000	$ 213,000
Commercial Real Estate | Substandard | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	$ 583,000

LOANS RECEIVABLE AND ALLOWANC_7

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of recorded investment amount and related allowance for losses of impaired loans (Details)	3 Months Ended
	Mar. 31, 2019USD ($)borrowerloan	Mar. 31, 2019USD ($)loan	Mar. 31, 2018borrower	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	$ 2,605,000	$ 2,605,000		$ 2,541,000	$ 2,589,000
Loans outstanding	$ 800,000	$ 800,000
Number of borrowers	19	1	7
Amount of troubled debt restructured loans, outstanding	$ 42,831	$ 42,831
Amount of troubled debt restructured loans, specific reserve	16,371	16,371
Specific Reserve	255,000	255,000
30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	4,002,000	4,002,000		1,726,000
30-89 Days Past Due | Substandard
Financing Receivable, Impaired [Line Items]
Loans outstanding	1,000,000	1,000,000
Consumer
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	$ 186,000	$ 186,000		161,000	214,000
Number of loans | loan	3	3
Number of borrowers | borrower	3
Amount of consumer and indirect loans, outstanding	$ 174,870	$ 174,870
Amount of consumer and indirect loans, specific reserves	51,920	51,920
Consumer | 30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	152,000	152,000		216,000
Commercial
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	249,000	249,000		241,000	237,000
Specific Reserve	203,000	203,000
Commercial | 30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding				86,000
Commercial | 30-89 Days Past Due | Substandard
Financing Receivable, Impaired [Line Items]
Loans outstanding	202,000	202,000
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Allowance for loan loss	324,000	324,000		$ 283,000	$ 291,000
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	2,830,000	2,830,000
Commercial Real Estate | 30-89 Days Past Due | Substandard
Financing Receivable, Impaired [Line Items]
Loans outstanding	$ 583,000	$ 583,000

LOANS RECEIVABLE AND ALLOWANC_8

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Impaired financing receivables (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	$ 462,000	$ 294,000
Unpaid Principal Balance with specific reserves	462,000	294,000
Interest Income Recognized with specific reserves	1,000	15,000
Specific Reserve with specific reserves	255,000	226,000
Recorded Investment	512,000	347,000
Recorded Investment with no specific reserve	2,791,000	2,435,000
Unpaid Principal Balance with no specific reserve	3,869,000	3,569,000
Interest Income Recognized with no specific reserve	11,000	45,000
Specific Reserve	255,000
Average Recorded Investment with no specific reserve	3,556,000	3,179,000
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	175,000	89,000
Unpaid Principal Balance with specific reserves	175,000	89,000
Interest Income Recognized with specific reserves	1,000	3,000
Specific Reserve with specific reserves	52,000	22,000
Recorded Investment	223,000	136,000
Recorded Investment with no specific reserve	137,000	96,000
Unpaid Principal Balance with no specific reserve	137,000	300,000
Interest Income Recognized with no specific reserve		2,000
Average Recorded Investment with no specific reserve	75,000	50,000
Indirect
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	185,000	116,000
Unpaid Principal Balance with no specific reserve	185,000	457,000
Specific Reserve	255,000
Commercial
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	287,000	204,000
Unpaid Principal Balance with specific reserves	287,000	204,000
Interest Income Recognized with specific reserves		12,000
Specific Reserve with specific reserves	203,000	204,000
Recorded Investment	289,000	211,000
Specific Reserve	203,000
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	1,234,000	1,267,000
Unpaid Principal Balance with no specific reserve	1,544,000	1,267,000
Interest Income Recognized with no specific reserve	10,000	39,000
Average Recorded Investment with no specific reserve	1,305,000	1,148,000
Residential Real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	1,235,000	956,000
Unpaid Principal Balance with no specific reserve	2,004,000	1,545,000
Interest Income Recognized with no specific reserve	1,000	4,000
Average Recorded Investment with no specific reserve	$ 2,176,000	$ 1,981,000

LOANS RECEIVABLE AND ALLOWANC_9

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Summary of allowance for credit losses (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 245,000	$ 248,000
Non-accrual and 90+ days past due and still accruing loans to average loans	0.90%	0.73%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans	104.70%	128.70%
Commercial
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 202,000
Consumer
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 43,000

LOANS RECEIVABLE AND ALLOWAN_10

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	$ 1,947	$ 3,270
Transfer into non-accrual	1,061	2,381
Loans paid down/payoffs	(315)	(76)
Loans return to accrual status	(19)	(37)
Loans charged off	(212)	(97)
Balance	2,462	5,441
Consumer
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	186	185
Transfer into non-accrual	134	38
Loans paid down/payoffs	(8)	(9)
Loans charged off		(63)
Balance	312	151
Residential Real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	956	2,124
Transfer into non-accrual	571	183
Loans paid down/payoffs	(283)	(17)
Loans charged off	(12)
Balance	1,232	2,290
Indirect
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	116	88
Transfer into non-accrual	270	160
Loans paid down/payoffs	(8)	(33)
Loans return to accrual status	(19)	(37)
Loans charged off	(173)	(34)
Balance	186	144
Commercial
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	27	48
Transfer into non-accrual	86
Loans charged off	(27)
Balance	86	48
Construction
Financing Receivable Nonaccrual Status [Roll Forward]
Balance		318
Balance		318
Commercial Real Estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	662	507
Transfer into non-accrual		2,000
Loans paid down/payoffs	(16)	(17)
Balance	$ 646	$ 2,490

LOANS RECEIVABLE AND ALLOWAN_11

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Risk ratings of loans by categories of loans (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 299,417	$ 299,120
Non-accrual	2,462	1,947	$ 5,441	$ 3,270
Troubled debt restructures	$ 245	$ 248
Number of TDRs accounts | loan	2	2
Non-performing TDRs | loan	43	44
Number of non-performing TDRs accounts | loan	1	1
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 296,229	$ 297,224
Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		1,069
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	3,070	742
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	118	85
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	12,876	13,071
Non-accrual	312	186	151	185
Troubled debt restructures	$ 43	$ 44
Number of TDRs accounts | loan	1	1
Non-performing TDRs | loan	43	44
Number of non-performing TDRs accounts | loan	1	1
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 12,564	$ 12,888
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	312	183
Residential Real estate
Financing Receivable, Recorded Investment [Line Items]
Total	81,567	82,637
Non-accrual	1,232	956	2,290	2,124
Residential Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	80,397	82,111
Residential Real estate | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		424
Residential Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	1,170	102
Indirect
Financing Receivable, Recorded Investment [Line Items]
Total	115,800	116,698
Non-accrual	186	116	144	88
Indirect | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	115,615	115,724
Indirect | Special mention
Financing Receivable, Recorded Investment [Line Items]
Total		645
Indirect | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	67	244
Indirect | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	118	85
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total	14,504	14,284
Non-accrual	86	27	48	48
Troubled debt restructures	$ 202	$ 204
Number of TDRs accounts | loan	1	1
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 14,217	$ 14,284
Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	287
Construction
Financing Receivable, Recorded Investment [Line Items]
Total	2,090	2,317
Non-accrual				318
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	2,090	2,317
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total	72,580	70,113
Non-accrual	646	662	$ 2,490	$ 507
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	71,346	69,900
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	$ 1,234	$ 213

FAIR VALUE (Details)

FAIR VALUE (Details)	Mar. 31, 2019USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans deemed to be impaired	$ 2,800,000
Specific reserve amount	255,000
Impaired real estate loans	2,400,000
Minimum | Discount Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of discount rate	0
Maximum | Discount Rate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of discount rate	$ 16
Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of impaired loans classified as nonaccrual loans | loan	26
Impaired loans includes nonaccrual, past due 90 days or more and still accruing	$ 349,000
Remaining impaired loan	785,000
Specific reserve amount	$ 255,000

FAIR VALUE - Changes in the ass

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 61,420	$ 81,572
Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	65,202	85,078
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	62,198	82,572
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	3,004	2,506
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	18,479	19,806
Agency mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	26,597	24,987
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,362	33,830
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	994	990
Recurring | Collateralized mortgage obligations | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	18,479	19,806
Recurring | Collateralized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	18,479	19,806
Recurring | Agency mortgage-backed securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	26,597	24,987
Recurring | Agency mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	26,597	24,987
Recurring | Municipal securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,362	33,830
Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	13,362	33,830
Recurring | US Government Securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,988	1,959
Recurring | US Government Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,988	1,959
Recurring | U.S. Treasury securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	994	990
Recurring | U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	994	990
Recurring | Interest rate swap | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	73	295
Recurring | Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	73	295
Nonrecurring | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	5	5
Impaired loans	2,999	2,501
OREO	705	705
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
OREO	705	705
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	5	5
Impaired loans	$ 2,999	$ 2,501

FAIR VALUE - Estimated fair val

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financial assets - Carrying Amount
Cash and due from banks	$ 2,341	$ 2,605
Interest-bearing deposits	14,194	12,468
Federal funds sold	62	881
Debt securities	61,420	81,572
Investments in restricted stock	1,439	2,481
Ground rents	146	143
Loans, net	296,812	296,579
Accrued interest receivable	1,110	1,198
Cash value of life insurance	7,900	7,860
Financial liabilities - Carrying Amount
Deposits	331,613	322,453
Short-term borrowings	25,000	55,000
Accrued interest payable	132	152
Unrecognized financial instruments:
Commitments to extend credit	24,664	19,905
Standby letters of credit	1,059	1,059
Financial assets - Fair Value
Cash and due from banks	2,341	2,605
Interest-bearing deposits	14,194	12,468
Federal funds sold	62	881
Investment securities	61,420	81,572
Investments in restricted stock	1,439	2,481
Ground rents	146	143
Loans, less allowance for credit losses	293,507	293,175
Accrued interest receivable	1,110	1,198
Cash value of life insurance	7,900	7,860
Financial liabilities - Fair Value
Deposits	309,010	307,271
Short-term borrowings	25,004	55,851
Accrued interest payable	132	152
Unrecognized financial instruments:
Commitments to extend credit	24,664	19,905
Standby letters of credit	$ 1,059	$ 1,059

FAIR VALUE - Fair value hierarc

FAIR VALUE - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Financial assets - Carrying Amount
Cash and cash equivalents	$ 16,597
Loans receivable, net	296,812	$ 296,579
Cash value of life insurance	7,900
Financial liabilities - Carrying Amount
Deposits	331,613	322,453
Short-term debt	25,000	55,000
Financial assets - Fair Value
Loans receivable, net	293,507	293,175
Financial liabilities - Fair Value
Deposits	309,010	307,271
Short-term debt	25,004	$ 55,851
Fair Value.
Financial assets - Fair Value
Cash and cash equivalents	16,597
Loans receivable, net	293,507
Cash value of life insurance	7,900
Financial liabilities - Fair Value
Deposits	309,010
Short-term debt	25,004
Fair Value. | Level 1
Financial assets - Fair Value
Cash and cash equivalents	16,597
Fair Value. | Level 2
Financial assets - Fair Value
Cash value of life insurance	7,900
Financial liabilities - Fair Value
Deposits	309,010
Short-term debt	25,004
Fair Value. | Level 3
Financial assets - Fair Value
Loans receivable, net	$ 293,507

RECENT ACCOUNTING PRONOUNCEME_2

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jan. 01, 2019
RECENT ACCOUNTING PRONOUNCEMENTS
Net unrealized gain (loss) on securities during the period	$ 932	$ (1,596)
Package of practical expedients	true
ASU 2018-02 | Scenario, Previously Reported
RECENT ACCOUNTING PRONOUNCEMENTS
Net unrealized gain (loss) on securities during the period			$ 104,000
ASU 2016-02 | Restatement Adjustment [Member]
RECENT ACCOUNTING PRONOUNCEMENTS
Lease liability				$ 800
Right-of-use asset				$ 800