Glen Burnie Bancorp (GLBZ) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 03, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	GLEN BURNIE BANCORP
Entity Central Index Key	0000890066
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Common Stock Shares Outstanding		2,834,325
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Interactive Data Current	Yes
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
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, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 2,658	$ 2,420
Interest-bearing deposits in other financial institutions	15,413	10,870
Cash and Cash Equivalents	18,071	13,290
Investment securities available for sale, at fair value	70,172	71,486
Restricted equity securities, at cost	1,199	1,437
Loans, net of deferred fees and costs	276,960	284,738
Less: Allowance for loan losses	(1,918)	(2,066)
Loans, net	275,042	282,672
Real estate acquired through foreclosure	705	705
Premises and equipment, net	3,900	3,761
Bank owned life insurance	8,062	8,023
Deferred tax assets, net	611	672
Accrued interest receivable	970	961
Accrued taxes receivable	1,174	1,221
Prepaid expenses	374	406
Other assets	220	308
Total Assets	380,500	384,942
LIABILITIES
Noninterest-bearing deposits	113,264	107,158
Interest-bearing deposits	208,516	214,282
Total Deposits	321,780	321,440
Short-term borrowings	20,000	25,000
Defined pension liability	323	317
Accrued expenses and other liabilities	2,540	2,505
Total Liabilities	344,643	349,262
STOCKHOLDERS' EQUITY
Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,824,412 and 2,814,157 shares as of March 31, 2020 and December 31, 2019, respectively.	2,830	2,827
Additional paid-in capital	10,554	10,525
Retained earnings	22,522	22,537
Accumulated other comprehensive loss	(49)	(209)
Total Stockholders' Equity	35,857	35,680
Total Liabilities and Stockholders' Equity	$ 380,500	$ 384,942

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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	2,830,358	2,827,473
Common stock, shares outstanding	2,830,358	2,827,473

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
INTEREST INCOME
Interest and fees on loans	$ 3,071,000	$ 3,189,000
Interest and dividends on securities	381,000	400,000
Interest on deposits with banks and federal funds sold	47,000	120,000
Total Interest Income	3,499,000	3,709,000
INTEREST EXPENSE
Interest on deposits	325,000	332,000
Interest on short-term borrowings	126,000	238,000
Total Interest Expense	451,000	570,000
Net Interest Income	3,048,000	3,139,000
Provision for loan losses	(80,000)	173,000
Net interest income after provision for loan losses	3,128,000	2,966,000
NONINTEREST INCOME
Gain on securities sold	1,000	3,000
Income on life insurance	39,000	40,000
Total Noninterest Income	255,000	282,000
NONINTEREST EXPENSE
Salary and benefits	1,705,000	1,770,000
Occupancy and equipment expenses	331,000	314,000
Legal, accounting and other professional fees	252,000	232,000
Data processing and item processing services	234,000	176,000
FDIC insurance costs	51,000	56,000
Advertising and marketing related expenses	25,000	27,000
Loan collection costs	67,000	13,000
Telephone costs	47,000	66,000
Other expenses	328,000	423,000
Total Noninterest Expenses	3,040,000	3,077,000
Income before income taxes	343,000	171,000
Income tax expense	75,000	36,000
NET INCOME	$ 268,384	$ 135,025
Basic and diluted net income per share of common stock	$ 0.09	$ 0.05
Service charges on deposit accounts
NONINTEREST INCOME
Noninterest Income	$ 56,000	$ 61,000
Other fees and commissions
NONINTEREST INCOME
Noninterest Income	$ 159,000	$ 178,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 268,384	$ 135,025
Net unrealized gain (loss) on securities available for sale:
Net unrealized gain (loss) on securities during the period	918,000	932,000
Income tax (expense) benefit relating to item above	(252,000)	(254,000)
Reclassification adjustment for gain on sales of securities included in net income	(1,000)	(3,000)
Net effect on other comprehensive income	665,000	675,000
Net unrealized (loss) gain on interest rate swap:
Net unrealized (loss) gain on interest rate swap during the period	(696,000)	(221,000)
Income tax benefit (expense) relating to item above	191,000	61,000
Net effect on other comprehensive loss	(505,000)	(160,000)
Other comprehensive income	160,000	515,000
Comprehensive income	$ 428,000	$ 650,000

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Gain	Total
Balances at Dec. 31, 2018	$ 2,814,000	$ 10,401,000	$ 22,066,000	$ (1,230,000)	$ 34,051,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			135,000		135,025
Cash dividends, $0.40 per share			(282,000)		(282,000)
Dividends reinvested under dividend reinvestment plan	4,000	32,000			36,000
Other comprehensive income				515,000	515,000
Balances at Mar. 31, 2019	2,818,000	10,433,000	21,919,000	(715,000)	34,455,000
Balances at Dec. 31, 2019	2,827,000	10,525,000	22,537,000	(209,000)	35,680,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			268,000		268,384
Cash dividends, $0.40 per share			(283,000)		(283,000)
Dividends reinvested under dividend reinvestment plan	3,000	29,000			32,000
Other comprehensive income				160,000	160,000
Balances at Mar. 31, 2020	$ 2,830,000	$ 10,554,000	$ 22,522,000	$ (49,000)	$ 35,857,000

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
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 ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 268,384	$ 135,025
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and accretion of premises and equipment	162,000	318,000
Provision for loan losses	(80,000)	173,000
Increase in cash surrender value of bank owned life insurance	(39,000)	(40,000)
Decrease in ground rents		(3,000)
Decrease (increase) in accrued interest receivable	(8,000)	89,000
Net decrease (increase) in other assets	166,000	(61,000)
Net increase in accrued expenses and other liabilities	(613,000)	(416,000)
Net cash (used in) by operating activities	(144,000)	195,000
Cash flows from investing activities:
Redemptions and maturities of investment securities available for sale	3,878,000	22,815,000
Purchases of investment securities available for sale	(1,709,000)	(1,932,000)
Net sales (purchase) of Federal Home Loan Bank stock	238,000	1,041,000
Net decrease (increase) in loans	7,711,000	(408,000)
Purchases of premises and equipment	(282,000)	(47,000)
Net cash provided by investing activities	9,836,000	21,469,000
Cash flows from financing activities:
Net increase in deposits	341,000	9,163,000
(Decrease) increase in short term borrowings	(5,000,000)	(30,000,000)
Cash dividends paid	(283,000)	(282,000)
Common stock dividends reinvested	31,000	36,000
Net cash used financing activities	(4,911,000)	(21,083,000)
Net in cash and cash equivalents	4,781,000	581,000
Cash and cash equivalents at beginning of year	13,290,000	15,954,000
Cash and cash equivalents at end of year	18,071,000	16,535,000
Supplemental Disclosures of Cash Flow Information:
Interest paid on deposits and borrowings	456,000	551,000
Income taxes (refunded)	(31,000)
Income taxes paid		36,000
Net decrease (increase) in unrealized depreciation on available for sale securities	918,000	932,000
Net (increase) decrease in unrealized appreciation on swaps	$ (696,000)	$ (221,000)

ORGANIZATIONAL

ORGANIZATIONAL	3 Months Ended
	Mar. 31, 2020
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, 2020
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, 2020 and December 31, 2019, the results of operations for the three-month period ended March 31, 2020 and 2019, and the statements of cash flows for the three-month period ended March 31, 2020 and 2019. The operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 or any future interim period. The consolidated balance sheet at December 31, 2019 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 27, 2020. The unaudited consolidated financial statements for March 31, 2020 and 2019, the consolidated balance sheet at December 31, 2019, 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, 2019. 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 2019 consolidated financial statements have been reclassified to conform to the 2020 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, 2020
Earnings Per Common 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, 2020 2019 Basic and diluted earnings per share: Net income $ 268,384 $ 135,025 Weighted average common shares outstanding 2,829,375 2,816,518 Basic and dilutive net income per share $ 0.09 $ 0.05 Diluted earnings per share calculations were not required for the three-month period ended March 31, 2020 and 2019, as there were no stock options outstanding.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2020
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, 2020 or December 31, 2019. 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, 2020 or December 31, 2019. 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, 2020 and December 31, 2019: At March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 26,092 $ 311 $ (197) $ 26,206 Agency mortgage-backed securities 28,678 657 (23) 29,312 Municipal securities 12,256 240 (26) 12,470 U.S. Government agency securities 1,679 7 (4) 1,682 U.S. Treasury securities 500 2 — 502 Total securities available for sale $ 69,205 $ 1,217 $ (250) $ 70,172 At December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 27,618 $ 52 $ (187) $ 27,483 Agency mortgage-backed securities 27,823 149 (135) 27,837 Municipal securities 12,301 191 (17) 12,475 U.S. Government agency securities 3,195 1 (5) 3,191 U.S. Treasury securities 500 — — 500 Total securities available for sale $ 71,437 $ 393 $ (344) $ 71,486 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, 2020 and December 31, 2019 are as follows: March 31, 2020 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 $ 10,036 $ (130) $ 1,335 $ (67) $ 11,371 $ (197) Agency mortgage-backed securities 829 (13) 635 (10) 1,464 (23) Municipal securities 2,502 (19) 544 (7) 3,046 (26) U.S. Government agency securities 575 (4) — — 575 (4) $ 13,942 $ (166) $ 2,514 $ (84) $ 16,456 $ (250) December 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 $ 11,792 $ (65) $ 7,330 $ (122) $ 19,122 $ (187) Agency mortgage-backed securities 4,577 (20) 10,918 (115) 15,495 (135) Municipal securities 1,806 (7) 864 (10) 2,670 (17) U.S. Government agency securities 591 (5) — — 591 (5) $ 18,766 $ (97) $ 19,112 $ (247) $ 37,878 $ (344) 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, 2020, the Company recorded unrealized losses in its portfolio of debt securities totaling $0.3 million related to 39 securities, which resulted from decreases 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, 2019, the Company recorded unrealized losses in its portfolio of debt securities totaling $0.3 million related to 97 securities, which resulted from decreases 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, 2020. 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, 2020 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 2,382 $ 2,390 1.77 % Over one to five years 617 623 1.81 % Over five to ten years 13,012 13,107 1.76 % Over ten years 53,194 54,052 2.17 % Total debt securities $ 69,205 $ 70,172 _____________________ (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 and Allowance

Loans and Allowance	3 Months Ended
	Mar. 31, 2020
Loans and Allowance
Loans and Allowance	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, 2020 2019 (dollars in thousands) Amount % Amount % Consumer $ 12,700 5 $ 12,076 Residential real estate 80,782 29 81,033 Indirect 95,093 34 102,384 Commercial 13,172 5 11,907 Construction 2,563 1 3,317 Commercial real estate 72,650 26 74,021 Loans, net of deferred fees and costs 276,960 100 284,738 100 Less: Allowance for loan losses (1,918) (2,066) Loans, net $ 275,042 $ 282,672 The Bank’s net loans totaled $275.0 million at March 31, 2020, compared to $282.7 million at December 31, 2019, a decrease of $7.7 million, or 2.73%. Consumer loans increased from $12.1 million at December 31, 2019 to $12.7 million at March 31, 2020, an increase of $0.6 million, or 5.17%. Residential real estate loans decreased by $0.2 million, or 0.19%, from $81.0 million at December 31, 2019 to $80.8 million at March 31, 2020. Indirect loans decreased from $102.4 million at December 31, 2019 to $95.1 million at March 31, 2020, a decrease of $7.3 million, or 7.12%. Commercial loans increased $1.3 million, or 10.62%, to $13.2 million at March 31, 2020, compared to $11.9 million at December 31, 2019. Construction loans decreased by $0.7 million, or 19.71% to $2.6 million at March 31, 2020, compared to $3.3 million at December 31, 2019. Commercial real estate loans decreased from $74.0 million at December 31, 2019 to $72.7 million at March 31, 2020, a decrease of $1.3 million or 1.72%. 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, 2020 and the year ended December 31, 2019 were as follows: March 31, 2020 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 122 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,066 Charge-offs — — (125) — — — (125) Recoveries 4 3 30 20 — — 57 Provision for loan losses (4) (45) 20 (21) (2) (28) (80) Balance, end of quarter $ 122 $ 547 $ 842 $ 37 $ 9 $ 361 $ 1,918 Individually evaluated for impairment: Balance in allowance $ 11 $ — $ — $ — $ — $ — $ 11 Related loan balance 86 617 — — — 3,627 4,330 Collectively evaluated for impairment: Balance in allowance $ 111 $ 547 $ 842 $ 37 $ 9 $ 361 $ 1,907 Related loan balance 12,614 80,165 95,093 13,172 2,563 69,023 272,630 December 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 (69) (16) (504) (27) — — (616) Recoveries 16 5 225 10 — — 256 Provision for loan losses 14 (264) 208 (186) 7 106 (115) Balance, end of year $ 122 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,066 Individually evaluated for impairment: Balance in allowance $ 15 $ — $ — $ — $ — $ — $ 15 Related loan balance 86 631 — — — 3,680 4,397 Collectively evaluated for impairment: Balance in allowance $ 107 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,051 Related loan balance 11,990 80,402 102,384 11,907 3,317 70,341 280,341 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) 2020 2019 Average loans $ 281,335 $ 299,506 Net charge offs to average loans (annualized) 0.10 % 0.15 % During the three-month period ended March 31, 2020, loans to 14 borrowers and related entities totaling approximately $125,000 were determined to be uncollectible and were charged off. During the three-month period ending March 31, 2019, loans to 19 borrowers and related entities totaling approximately $205,000 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, 2020, and 2019, the Bank had outstanding commitments totaling $38.0 million and $33.0 million, respectively. These outstanding commitments consisted of letters of credit, undrawn lines of credit, and other loan commitments. The following table shows the Bank’s reserve for unfunded commitments arising from these transactions: Three Months Ended Ended March 31, (dollars in thousands) 2020 2019 Beginning balance $ 37 $ 35 Reduction of unfunded reserve — (9) Provisions charged to operations 13 — Ending balance $ 50 $ 26 Contractual Obligations and Commitments. No material changes, outside the normal course of business, have been made during the first quarter of 2020. 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, 2020 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,522 $ 46 $ — $ 132 $ 12,700 Residential Real Estate 80,042 8 19 713 80,782 Indirect 94,393 564 — 136 95,093 Commercial 13,172 — — — 13,172 Construction 2,563 — — — 2,563 Commercial Real Estate 68,808 735 — 3,107 72,650 $ 271,500 $ 1,353 $ 19 $ 4,088 $ 276,960 At December 31, 2019 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 11,865 $ 74 $ — $ 137 $ 12,076 Residential Real Estate 80,192 92 21 728 81,033 Indirect 101,605 656 — 123 102,384 Commercial 11,907 — — — 11,907 Construction 3,317 — — — 3,317 Commercial Real Estate 70,882 — — 3,139 74,021 $ 279,768 $ 822 $ 21 $ 4,127 $ 284,738 The balances in the above charts have not been reduced by the allowance for loan loss. For the period ending March 31, 2020, the allowance for loan loss is $1.9 million. For the period ending December 31, 2019, the allowance for loan loss is $2.1 million. At March 31, 2020, there was $0.5 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 one loan outstanding, totaling $0.5 million was as follows: $505,000 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. Non-accrual loans with specific reserves at March 31, 2020 are comprised of: Consumer loans – One loan to one borrower that totaled $40,311 with specific reserves of $10,882 established for the loan, which 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, 2020 and December 31, 2019. March 31, 2020 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 40 $ 40 $ 1 $ 11 $ 50 Total impaired loans with specific reserves 40 40 1 11 50 Impaired loans with no specific reserve: Consumer $ 92 $ 92 $ — $ n/a $ 116 Residential Real Estate 713 768 3 n/a 1,918 Indirect 136 136 — n/a 152 Commercial Real Estate 3,627 3,627 31 n/a 3,749 Total impaired loans with no specific reserve $ 4,568 $ 4,623 $ 34 — $ 5,935 December 31, 2019 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 26 $ 41 $ 2 $ 15 $ 50 Total impaired loans with specific reserves $ 26 $ 41 $ 2 $ 15 $ 50 Impaired loans with no specific reserve: Consumer $ 96 $ 96 $ 8 n/a $ 122 Residential Real Estate 728 1,497 14 n/a 1,928 Indirect 123 123 6 n/a — Commercial Real Estate 3,680 3,680 81 n/a 3,845 Total impaired loans with no specific reserve $ 4,627 $ 5,396 $ 109 — $ 5,895 March 31, December 31, (dollars in thousands) 2020 2019 Troubled debt restructured loans $ 40 $ 41 Non-accrual and 90+ days past due and still accruing loans to average loans 1.46 % 1.45 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 46.7 % 49.8 % At March 31, 2020, there was one troubled debt restructured loans consisting of a consumer loan of $40,000. The consumer loan is in a nonaccrual status. The following table shows the activity for non-accrual loans for the quarters ended March 31, 2019 and 2020. Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Real Estate Totals 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 December 31, 2019 137 728 123 — 3,139 4,127 Transfers into nonaccrual — — 177 — — 177 Loans paid down/payoffs (5) (15) (22) — (32) (74) Loans returned to accrual status — — (17) — — (17) Loans charged off — — (125) — — (125) March 31, 2020 132 713 136 — 3,107 4,088 Other Real Estate Owned. At March 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019: March 31, 2020 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,568 $ 80,069 $ 94,957 $ 13,172 $ 2,563 $ 69,023 $ 272,352 Special mention — — — — — — — Substandard 132 713 83 — — 3,627 4,555 Doubtful — — 53 — — — 53 Loss — — — — — — — $ 12,700 $ 80,782 $ 95,093 $ 13,172 $ 2,563 $ 72,650 $ 276,960 Nonaccrual $ 132 $ 713 $ 136 $ — $ — $ 3,107 $ 4,088 Troubled debt restructures $ 40 $ — $ — $ — $ — $ — $ 40 Number of TDRs accounts 1 — — — — — 1 Non-performing TDRs $ 40 $ — $ — $ — $ — $ — $ 40 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 11,939 $ 80,305 $ 102,261 $ 11,907 $ 3,317 $ 70,341 $ 280,070 Special mention — — — — — — — Substandard 137 728 44 — — 3,680 4,589 Doubtful — — 79 — — — 79 Loss — — — — — — — $ 12,076 $ 81,033 $ 102,384 $ 11,907 $ 3,317 $ 74,021 $ 284,738 Nonaccrual $ 137 $ 728 $ 123 $ — $ — $ 3,139 $ 4,127 Troubled debt restructures $ 41 $ — $ — $ — $ — $ — $ 41 Number of TDRs accounts 1 — — — — — 1 Non-performing TDRs $ 41 $ — $ — $ — $ — $ — $ 41 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
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, 2020, these assets included 18 loans, excluding $0.3 million of residential real estate, consumer and indirect loans. They have been classified as impaired and 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. Impaired loans totaled $4.3 million with $11,000 of specific reserves as of March 31, 2020. 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. These loans totaled $4.3 million of the total impaired loans as of March 31, 2020. 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 ($268,000 with $11,000 of specific reserves as of March 31, 2020) 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, 2020 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 26,206 $ — $ 26,206 Agency mortgage-backed securities — 29,312 — 29,312 Municipal securities — 12,470 — 12,470 U.S. Government agency securities — 1,682 — 1,682 U.S. Treasury securities — 502 — 502 Interest rate swap — (1,034) — (1,034) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,597 4,597 OREO — 705 — 705 $ — $ 69,843 $ 4,600 $ 74,443 December 31, 2019 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 27,483 $ — $ 27,483 Agency mortgage-backed securities — 27,837 — 27,837 Municipal securities — 12,475 — 12,475 U.S. Government agency securities — 3,191 — 3,191 U.S. Treasury securities — 500 — 500 Interest rate swap — (336) — (336) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,638 4,638 OREO 705 705 $ — $ 71,855 $ 4,641 $ 76,496 The estimated fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019 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, 2020 December 31, 2019 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,658 $ 2,658 $ 2,420 $ 2,420 Interest-bearing deposits in other financial institutions 14,159 14,159 10,017 10,017 Federal funds sold 1,254 1,254 853 853 Investment securities available for sale 70,172 70,172 71,486 71,486 Investments in restricted stock 1,199 1,199 1,437 1,437 Ground rents 143 143 143 143 Loans, less allowance for credit losses 275,042 278,025 282,672 282,583 Accrued interest receivable 970 970 961 961 Cash value of life insurance 8,062 8,062 8,023 8,023 Financial liabilities: Deposits 321,780 322,965 321,440 300,944 Short-term borrowings 20,000 20,060 25,000 25,386 Accrued interest payable 95 95 100 100 Unrecognized financial instruments: Commitments to extend credit 30,127 30,127 26,297 26,297 Standby letters of credit 1,044 1,044 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 that were estimated using an exit pricing notion. (dollars in thousands) Carrying Fair March 31, 2020 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 18,071 $ 18,071 $ 18,071 — $ — Loans receivable, net 275,042 278,025 — — 278,025 Cash value of life insurance 8,062 8,062 — 8,062 — Financial instruments - Liabilities Deposits 321,780 322,965 113,328 209,637 — Short-term debt 20,000 20,060 — 20,060 — 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, 2020
Recent accounting pronouncements
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 7 – RECENT ACCOUNTING PRONOUNCEMENTS From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") as of the required effective dates. The following accounting pronouncements should be read in conjunction with "Critical Accounting Policies" of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2019 Form 10-K. 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 non-lease 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.” This update, commonly referred to as the current expected credit losses methodology (“CECL”), will change the accounting for credit losses on loans and debt securities. Under the new guidance, the Company’s measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. For loans, this measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model previously required, but still permitted, under GAAP, which delays recognition until it is probable a loss has been incurred. In addition, the guidance will modify the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which will allow for reversal of credit impairments in future periods. At the FASB's October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 31, 2022. The Company is currently evaluating the implementation of ASU 2016-13 due to the change in implementation dates for smaller reporting companies included in the FASB's Exposure Draft. 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 2016‑18, “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 2017‑08, “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. 2018-11, “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, 2018; 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 did 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. ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” was issued in April 2019 by the FASB. With respect to Topic 815, Derivatives and Hedging, ASU 2019-04 clarifies that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in ASU 2017-12 would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. All Company securities were AFS at March 31, 2020. ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief” was issued on May 15, 2019. The ASU amends the transition guidance in the new credit losses standard, ASC 326, Financial Instruments—Credit Losses. The amendment provides entities with an option upon adoption of ASC 326-20, to irrevocably elect the fair value option for certain financial instruments that are both: (a) within the scope of ASC 326-20 (the current expected credit loss or “CECL” model) and (b) eligible for the fair value option in ASC 825-10, Financial Instruments—Overall. This election should be applied on an instrument-by-instrument basis for eligible financial assets. The fair value option election is not applicable to debt securities classified as available for sale or held to maturity. In addition, the amendment does not provide the option to discontinue or “unelect” the fair value option on instruments when an entity previously elected to apply it. If the fair value option is elected, an entity would recognize the difference between the carrying amount and the fair value of the financial instrument as part of the cumulative effect adjustment associated with the adoption of ASC 326. Subsequently, the financial instrument would be measured at fair value with changes in fair value reported in current earnings. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2022, with early adoption permitted. The Company is continuing to evaluate the extent of the potential impact upon adoption to the Company’s financial statements in January of 2023. ASU 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740).” Was issued in December 2019. The amendments in this Update are meant to simplify the accounting for income taxes by removing certain exceptions to GAAP. The amendments also improve consistent application of and simplify GAAP by modifying and/or revising the accounting for certain income tax transactions and by clarifying certain existing codification. The amendments in the update are effective for public business entities for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. The Company is currently assessing the impact of adoption of this guidance, but does not expect the update to have a material impact upon its financial position and results of operations. ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force).” The ASU clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
REVENUE RECOGNITION
Revenue Recognition	NOTE 8 – REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts. Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or at the end of the month through a direct charge to customers’ accounts. Other Noninterest Income. Other noninterest income consists of: fees, exchange, other service charges, safety deposit box rental fees, and other miscellaneous revenue streams. Fees and other service charges are primarily comprised of debit card income, ATM fees, merchant services income, and other service charges. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
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, 2020 and December 31, 2019, the results of operations for the three-month period ended March 31, 2020 and 2019, and the statements of cash flows for the three-month period ended March 31, 2020 and 2019. The operating results for the three-month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 or any future interim period. The consolidated balance sheet at December 31, 2019 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 27, 2020. The unaudited consolidated financial statements for March 31, 2020 and 2019, the consolidated balance sheet at December 31, 2019, 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, 2019.
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 2019 consolidated financial statements have been reclassified to conform to the 2020 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 From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") as of the required effective dates. The following accounting pronouncements should be read in conjunction with "Critical Accounting Policies" of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2019 Form 10-K. 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 non-lease 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.” This update, commonly referred to as the current expected credit losses methodology (“CECL”), will change the accounting for credit losses on loans and debt securities. Under the new guidance, the Company’s measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. For loans, this measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model previously required, but still permitted, under GAAP, which delays recognition until it is probable a loss has been incurred. In addition, the guidance will modify the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which will allow for reversal of credit impairments in future periods. At the FASB's October 16, 2019 meeting, the Board affirmed its decision to amend the effective date of this ASU for many companies. Public business entities that are SEC filers, excluding those meeting the smaller reporting company definition, will retain the initial required implementation date of fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. All other entities will be required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 31, 2022. The Company is currently evaluating the implementation of ASU 2016-13 due to the change in implementation dates for smaller reporting companies included in the FASB's Exposure Draft. 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 2016‑18, “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 2017‑08, “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. 2018-11, “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, 2018; 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 did 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. ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” was issued in April 2019 by the FASB. With respect to Topic 815, Derivatives and Hedging, ASU 2019-04 clarifies that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in ASU 2017-12 would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. All Company securities were AFS at March 31, 2020. ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief” was issued on May 15, 2019. The ASU amends the transition guidance in the new credit losses standard, ASC 326, Financial Instruments—Credit Losses. The amendment provides entities with an option upon adoption of ASC 326-20, to irrevocably elect the fair value option for certain financial instruments that are both: (a) within the scope of ASC 326-20 (the current expected credit loss or “CECL” model) and (b) eligible for the fair value option in ASC 825-10, Financial Instruments—Overall. This election should be applied on an instrument-by-instrument basis for eligible financial assets. The fair value option election is not applicable to debt securities classified as available for sale or held to maturity. In addition, the amendment does not provide the option to discontinue or “unelect” the fair value option on instruments when an entity previously elected to apply it. If the fair value option is elected, an entity would recognize the difference between the carrying amount and the fair value of the financial instrument as part of the cumulative effect adjustment associated with the adoption of ASC 326. Subsequently, the financial instrument would be measured at fair value with changes in fair value reported in current earnings. The updated guidance is effective for interim and annual reporting periods beginning after December 31, 2022, with early adoption permitted. The Company is continuing to evaluate the extent of the potential impact upon adoption to the Company’s financial statements in January of 2023. ASU 2019-12, “Simplifying the Accounting for Income Taxes (Topic 740).” Was issued in December 2019. The amendments in this Update are meant to simplify the accounting for income taxes by removing certain exceptions to GAAP. The amendments also improve consistent application of and simplify GAAP by modifying and/or revising the accounting for certain income tax transactions and by clarifying certain existing codification. The amendments in the update are effective for public business entities for fiscal years and interim periods within those fiscal years beginning after December 15, 2020. The Company is currently assessing the impact of adoption of this guidance, but does not expect the update to have a material impact upon its financial position and results of operations. ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323, and Topic 815 (a Consensus of the Emerging Issues Task Force).” The ASU clarifies the interaction between ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Common Share
Schedule of earnings per common share	Three Months Ended March 31, 2020 2019 Basic and diluted earnings per share: Net income $ 268,384 $ 135,025 Weighted average common shares outstanding 2,829,375 2,816,518 Basic and dilutive net income per share $ 0.09 $ 0.05

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2020
Investment Securities
Schedule of summary of investment securities	At March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 26,092 $ 311 $ (197) $ 26,206 Agency mortgage-backed securities 28,678 657 (23) 29,312 Municipal securities 12,256 240 (26) 12,470 U.S. Government agency securities 1,679 7 (4) 1,682 U.S. Treasury securities 500 2 — 502 Total securities available for sale $ 69,205 $ 1,217 $ (250) $ 70,172 At December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Collateralized mortgage obligations $ 27,618 $ 52 $ (187) $ 27,483 Agency mortgage-backed securities 27,823 149 (135) 27,837 Municipal securities 12,301 191 (17) 12,475 U.S. Government agency securities 3,195 1 (5) 3,191 U.S. Treasury securities 500 — — 500 Total securities available for sale $ 71,437 $ 393 $ (344) $ 71,486
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, 2020 and December 31, 2019 are as follows: March 31, 2020 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 $ 10,036 $ (130) $ 1,335 $ (67) $ 11,371 $ (197) Agency mortgage-backed securities 829 (13) 635 (10) 1,464 (23) Municipal securities 2,502 (19) 544 (7) 3,046 (26) U.S. Government agency securities 575 (4) — — 575 (4) $ 13,942 $ (166) $ 2,514 $ (84) $ 16,456 $ (250) December 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 $ 11,792 $ (65) $ 7,330 $ (122) $ 19,122 $ (187) Agency mortgage-backed securities 4,577 (20) 10,918 (115) 15,495 (135) Municipal securities 1,806 (7) 864 (10) 2,670 (17) U.S. Government agency securities 591 (5) — — 591 (5) $ 18,766 $ (97) $ 19,112 $ (247) $ 37,878 $ (344)
Schedule of contractual maturities of investment securities	Shown below are contractual maturities of debt securities at March 31, 2020. 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, 2020 Amortized Fair Yield (dollars in thousands) Cost Value (1), (2) Available for sale securities maturing: Within one year $ 2,382 $ 2,390 1.77 % Over one to five years 617 623 1.81 % Over five to ten years 13,012 13,107 1.76 % Over ten years 53,194 54,052 2.17 % Total debt securities $ 69,205 $ 70,172 _____________________ (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 (Tables)	3 Months Ended
	Mar. 31, 2020
Loans and Allowance
Schedule of major categories of loans	March 31, December 31, 2020 2019 (dollars in thousands) Amount % Amount % Consumer $ 12,700 5 $ 12,076 Residential real estate 80,782 29 81,033 Indirect 95,093 34 102,384 Commercial 13,172 5 11,907 Construction 2,563 1 3,317 Commercial real estate 72,650 26 74,021 Loans, net of deferred fees and costs 276,960 100 284,738 100 Less: Allowance for loan losses (1,918) (2,066) Loans, net $ 275,042 $ 282,672
Schedule of total allowance by loan segment	March 31, 2020 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Balance, beginning of year $ 122 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,066 Charge-offs — — (125) — — — (125) Recoveries 4 3 30 20 — — 57 Provision for loan losses (4) (45) 20 (21) (2) (28) (80) Balance, end of quarter $ 122 $ 547 $ 842 $ 37 $ 9 $ 361 $ 1,918 Individually evaluated for impairment: Balance in allowance $ 11 $ — $ — $ — $ — $ — $ 11 Related loan balance 86 617 — — — 3,627 4,330 Collectively evaluated for impairment: Balance in allowance $ 111 $ 547 $ 842 $ 37 $ 9 $ 361 $ 1,907 Related loan balance 12,614 80,165 95,093 13,172 2,563 69,023 272,630 December 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 (69) (16) (504) (27) — — (616) Recoveries 16 5 225 10 — — 256 Provision for loan losses 14 (264) 208 (186) 7 106 (115) Balance, end of year $ 122 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,066 Individually evaluated for impairment: Balance in allowance $ 15 $ — $ — $ — $ — $ — $ 15 Related loan balance 86 631 — — — 3,680 4,397 Collectively evaluated for impairment: Balance in allowance $ 107 $ 589 $ 917 $ 38 $ 11 $ 389 $ 2,051 Related loan balance 11,990 80,402 102,384 11,907 3,317 70,341 280,341
Schedule of allowances for credit losses	March 31, March 31, (dollars in thousands) 2020 2019 Average loans $ 281,335 $ 299,506 Net charge offs to average loans (annualized) 0.10 % 0.15 %
Schedule of reserve for unfunded commitments	Three Months Ended Ended March 31, (dollars in thousands) 2020 2019 Beginning balance $ 37 $ 35 Reduction of unfunded reserve — (9) Provisions charged to operations 13 — Ending balance $ 50 $ 26
Schedule of current, past due, and non-accrual loans by categories of loans and restructured loans	At March 31, 2020 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 12,522 $ 46 $ — $ 132 $ 12,700 Residential Real Estate 80,042 8 19 713 80,782 Indirect 94,393 564 — 136 95,093 Commercial 13,172 — — — 13,172 Construction 2,563 — — — 2,563 Commercial Real Estate 68,808 735 — 3,107 72,650 $ 271,500 $ 1,353 $ 19 $ 4,088 $ 276,960 At December 31, 2019 90 Days or (dollars in thousands) 30-89 Days More and Current Past Due Still Accruing Nonaccrual Total Consumer $ 11,865 $ 74 $ — $ 137 $ 12,076 Residential Real Estate 80,192 92 21 728 81,033 Indirect 101,605 656 — 123 102,384 Commercial 11,907 — — — 11,907 Construction 3,317 — — — 3,317 Commercial Real Estate 70,882 — — 3,139 74,021 $ 279,768 $ 822 $ 21 $ 4,127 $ 284,738
Schedule of impaired financing receivables	March 31, 2020 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 40 $ 40 $ 1 $ 11 $ 50 Total impaired loans with specific reserves 40 40 1 11 50 Impaired loans with no specific reserve: Consumer $ 92 $ 92 $ — $ n/a $ 116 Residential Real Estate 713 768 3 n/a 1,918 Indirect 136 136 — n/a 152 Commercial Real Estate 3,627 3,627 31 n/a 3,749 Total impaired loans with no specific reserve $ 4,568 $ 4,623 $ 34 — $ 5,935 December 31, 2019 Unpaid Interest Average (dollars in thousands) Recorded Principal Income Specific Recorded Investment Balance Recognized Reserve Investment Impaired loans with specific reserves: Consumer $ 26 $ 41 $ 2 $ 15 $ 50 Total impaired loans with specific reserves $ 26 $ 41 $ 2 $ 15 $ 50 Impaired loans with no specific reserve: Consumer $ 96 $ 96 $ 8 n/a $ 122 Residential Real Estate 728 1,497 14 n/a 1,928 Indirect 123 123 6 n/a — Commercial Real Estate 3,680 3,680 81 n/a 3,845 Total impaired loans with no specific reserve $ 4,627 $ 5,396 $ 109 — $ 5,895
Schedule of allowance for loan loss and the unearned income on loans	March 31, December 31, (dollars in thousands) 2020 2019 Troubled debt restructured loans $ 40 $ 41 Non-accrual and 90+ days past due and still accruing loans to average loans 1.46 % 1.45 % Allowance for loan losses to nonaccrual & 90+ days past due and still accruing loans 46.7 % 49.8 %
Schedule of non accrual loans	Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Real Estate Totals 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 December 31, 2019 137 728 123 — 3,139 4,127 Transfers into nonaccrual — — 177 — — 177 Loans paid down/payoffs (5) (15) (22) — (32) (74) Loans returned to accrual status — — (17) — — (17) Loans charged off — — (125) — — (125) March 31, 2020 132 713 136 — 3,107 4,088
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, 2020 and December 31, 2019: March 31, 2020 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 12,568 $ 80,069 $ 94,957 $ 13,172 $ 2,563 $ 69,023 $ 272,352 Special mention — — — — — — — Substandard 132 713 83 — — 3,627 4,555 Doubtful — — 53 — — — 53 Loss — — — — — — — $ 12,700 $ 80,782 $ 95,093 $ 13,172 $ 2,563 $ 72,650 $ 276,960 Nonaccrual $ 132 $ 713 $ 136 $ — $ — $ 3,107 $ 4,088 Troubled debt restructures $ 40 $ — $ — $ — $ — $ — $ 40 Number of TDRs accounts 1 — — — — — 1 Non-performing TDRs $ 40 $ — $ — $ — $ — $ — $ 40 Number of non-performing TDR accounts 1 — — — — — 1 December 31, 2019 Residential Commercial (dollars in thousands) Consumer Real Estate Indirect Commercial Construction Real Estate Total Pass $ 11,939 $ 80,305 $ 102,261 $ 11,907 $ 3,317 $ 70,341 $ 280,070 Special mention — — — — — — — Substandard 137 728 44 — — 3,680 4,589 Doubtful — — 79 — — — 79 Loss — — — — — — — $ 12,076 $ 81,033 $ 102,384 $ 11,907 $ 3,317 $ 74,021 $ 284,738 Nonaccrual $ 137 $ 728 $ 123 $ — $ — $ 3,139 $ 4,127 Troubled debt restructures $ 41 $ — $ — $ — $ — $ — $ 41 Number of TDRs accounts 1 — — — — — 1 Non-performing TDRs $ 41 $ — $ — $ — $ — $ — $ 41 Number of non-performing TDR accounts 1 — — — — — 1

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
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, 2020 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 26,206 $ — $ 26,206 Agency mortgage-backed securities — 29,312 — 29,312 Municipal securities — 12,470 — 12,470 U.S. Government agency securities — 1,682 — 1,682 U.S. Treasury securities — 502 — 502 Interest rate swap — (1,034) — (1,034) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,597 4,597 OREO — 705 — 705 $ — $ 69,843 $ 4,600 $ 74,443 December 31, 2019 Recurring: Securities available for sale Collateralized mortgage obligations $ — $ 27,483 $ — $ 27,483 Agency mortgage-backed securities — 27,837 — 27,837 Municipal securities — 12,475 — 12,475 U.S. Government agency securities — 3,191 — 3,191 U.S. Treasury securities — 500 — 500 Interest rate swap — (336) — (336) Non-recurring: Maryland Financial Bank stock — — 3 3 Impaired loans — — 4,638 4,638 OREO 705 705 $ — $ 71,855 $ 4,641 $ 76,496
Schedule of estimated fair values of financial instruments	March 31, 2020 December 31, 2019 (dollars in thousands) Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and due from banks $ 2,658 $ 2,658 $ 2,420 $ 2,420 Interest-bearing deposits in other financial institutions 14,159 14,159 10,017 10,017 Federal funds sold 1,254 1,254 853 853 Investment securities available for sale 70,172 70,172 71,486 71,486 Investments in restricted stock 1,199 1,199 1,437 1,437 Ground rents 143 143 143 143 Loans, less allowance for credit losses 275,042 278,025 282,672 282,583 Accrued interest receivable 970 970 961 961 Cash value of life insurance 8,062 8,062 8,023 8,023 Financial liabilities: Deposits 321,780 322,965 321,440 300,944 Short-term borrowings 20,000 20,060 25,000 25,386 Accrued interest payable 95 95 100 100 Unrecognized financial instruments: Commitments to extend credit 30,127 30,127 26,297 26,297 Standby letters of credit 1,044 1,044 1,059 1,059
Schedule of fair value hierarchy of financial instruments	(dollars in thousands) Carrying Fair March 31, 2020 Amount Value Level 1 Level 2 Level 3 Financial instruments - Assets Cash and cash equivalents $ 18,071 $ 18,071 $ 18,071 — $ — Loans receivable, net 275,042 278,025 — — 278,025 Cash value of life insurance 8,062 8,062 — 8,062 — Financial instruments - Liabilities Deposits 321,780 322,965 113,328 209,637 — Short-term debt 20,000 20,060 — 20,060 —

Summary of Significant Accounti

Summary of Significant Accounting Policies - Recent accounting pronouncements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Jan. 01, 2019
RECENT ACCOUNTING PRONOUNCEMENTS
Package of practical expedients	true
ASU 2016-02 | Restatement Adjustment [Member]
RECENT ACCOUNTING PRONOUNCEMENTS
Lease liability		$ 0.8
Right-of-use asset		$ 0.8

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	Jan. 10, 2019	Mar. 31, 2020	Mar. 31, 2019
BASIS OF PRESENTATION
Capital contributions common share	3,600
Dividends paid		$ 283,000	$ 282,000
Net income		$ 268,384	$ 135,025

EARNINGS PER SHARE - Basic earn

EARNINGS PER SHARE - Basic earnings per share of common stock (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic and diluted earnings per share:
Net income	$ 268,384	$ 135,025
Weighted average common shares outstanding (in shares)	2,829,375	2,816,518
Basic and dilutive net income per share	$ 0.09	$ 0.05
Options outstanding	0	0

Investment Securities (Details)

Investment Securities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Investment Securities
Amortized Cost	$ 69,205,000	$ 71,437,000
Gross Unrealized Gains	1,217,000	393,000
Gross Unrealized Losses	(250,000)	(344,000)
Fair Value	70,172,000	71,486,000
Trading securities	0	0
Held to maturity	0	0
Collateralized mortgage obligations
Investment Securities
Amortized Cost	26,092,000	27,618,000
Gross Unrealized Gains	311,000	52,000
Gross Unrealized Losses	(197,000)	(187,000)
Fair Value	26,206,000	27,483,000
Agency mortgage-backed securities
Investment Securities
Amortized Cost	28,678,000	27,823,000
Gross Unrealized Gains	657,000	149,000
Gross Unrealized Losses	(23,000)	(135,000)
Fair Value	29,312,000	27,837,000
Municipal securities
Investment Securities
Amortized Cost	12,256,000	12,301,000
Gross Unrealized Gains	240,000	191,000
Gross Unrealized Losses	(26,000)	(17,000)
Fair Value	12,470,000	12,475,000
U.S. Government agency securities
Investment Securities
Amortized Cost	1,679,000	3,195,000
Gross Unrealized Gains	7,000	1,000
Gross Unrealized Losses	(4,000)	(5,000)
Fair Value	1,682,000	3,191,000
U.S. Treasury securities
Investment Securities
Amortized Cost	500,000	500,000
Gross Unrealized Gains	2,000
Fair Value	$ 502,000	$ 500,000

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, 2020USD ($)security	Dec. 31, 2019USD ($)security
Investment Securities
Less than 12 months Fair Value	$ 13,942	$ 18,766
Less than 12 months Unrealized Loss	(166)	(97)
12 months or more Fair Value	2,514	19,112
12 months or more Unrealized Loss	(84)	(247)
Total Fair Value	16,456	37,878
Total Unrealized Loss	$ (250)	$ (344)
Number of securities continuous unrealized loss position more than twelve months | security	39	97
Collateralized mortgage obligations
Investment Securities
Less than 12 months Fair Value	$ 10,036	$ 11,792
Less than 12 months Unrealized Loss	(130)	(65)
12 months or more Fair Value	1,335	7,330
12 months or more Unrealized Loss	(67)	(122)
Total Fair Value	11,371	19,122
Total Unrealized Loss	(197)	(187)
Agency mortgage-backed securities
Investment Securities
Less than 12 months Fair Value	829	4,577
Less than 12 months Unrealized Loss	(13)	(20)
12 months or more Fair Value	635	10,918
12 months or more Unrealized Loss	(10)	(115)
Total Fair Value	1,464	15,495
Total Unrealized Loss	(23)	(135)
Municipal securities
Investment Securities
Less than 12 months Fair Value	2,502	1,806
Less than 12 months Unrealized Loss	(19)	(7)
12 months or more Fair Value	544	864
12 months or more Unrealized Loss	(7)	(10)
Total Fair Value	3,046	2,670
Total Unrealized Loss	(26)	(17)
U.S. Government agency securities
Investment Securities
Less than 12 months Fair Value	575	591
Less than 12 months Unrealized Loss	(4)	(5)
Total Fair Value	575	591
Total Unrealized Loss	$ (4)	$ (5)

Investment Securities - Contrac

Investment Securities - Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available for Sale Amortized Cost
Due within one year	$ 2,382
Due over one to five years	617
Due over five to ten years	13,012
Due over ten years	53,194
Amortized Cost	69,205	$ 71,437
Available for Sale Fair Value
Due within one year	2,390
Due over one to five years	623
Due over five to ten years	13,107
Due over ten years	54,052
Fair Value	$ 70,172	$ 71,486
Available for Sale, Yield
Within one year	1.77%
Over one to five years	1.81%
Over five to ten years	1.76%
Over ten years	2.17%

Loans and Allowance - Major Cat

Loans and Allowance - Major Categories of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 276,960	$ 284,738
Less: Allowance for loan losses	(1,918)	(2,066)
Loans, net	$ 275,042	$ 282,672
Loans and lease receivable allowances, percentage	100.00%	100.00%
Increase (decrease) in loans and leases receivable	$ (7,700)
Percentage of increase (decrease) in loans and leases receivable	(2.73%)
Consumer
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 12,700	$ 12,076
Loans and lease receivable allowances, percentage	5.00%	4.00%
Increase (decrease) in loans and leases receivable	$ (600)
Percentage of increase (decrease) in loans and leases receivable	(5.17%)
Residential Real estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 80,782	$ 81,033
Loans and lease receivable allowances, percentage	29.00%	28.00%
Increase (decrease) in loans and leases receivable	$ (200)
Percentage of increase (decrease) in loans and leases receivable	(0.19%)
Indirect
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 95,093	$ 102,384
Loans and lease receivable allowances, percentage	34.00%	36.00%
Increase (decrease) in loans and leases receivable	$ (7,300)
Percentage of increase (decrease) in loans and leases receivable	(7.12%)
Commercial
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 13,172	$ 11,907
Loans and lease receivable allowances, percentage	5.00%	4.00%
Increase (decrease) in loans and leases receivable	$ (1,300)
Percentage of increase (decrease) in loans and leases receivable	(10.62%)
Construction
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 2,563	$ 3,317
Loans and lease receivable allowances, percentage	1.00%	1.00%
Increase (decrease) in loans and leases receivable	$ 700
Percentage of increase (decrease) in loans and leases receivable	19.71%
Commercial Real Estate
Schedule of Available-for-sale Securities [Line Items]
Loans, net of deferred fees and costs	$ 72,650	$ 74,021
Loans and lease receivable allowances, percentage	26.00%	27.00%
Increase (decrease) in loans and leases receivable	$ 1,300
Percentage of increase (decrease) in loans and leases receivable	1.72%

Loans and Allowance - Allowance

Loans and Allowance - Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	$ 2,066,000	$ 2,541,000	$ 2,541,000
Charged off	(125,000)	(205,000)	(616,000)
Recoveries	57,000		256,000
Provision for loan losses	(80,000)	173,000	(115,000)
Balance, end of year	1,918,000		2,066,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	11,000		15,000
Individually evaluated for impairment, Related loan balance	4,330,000		4,397,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	1,907,000		2,051,000
Collectively evaluated for impairment, Related loan balance	272,630,000		280,341,000
Consumer
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	122,000	161,000	161,000
Charged off			(69,000)
Recoveries	4,000		16,000
Provision for loan losses	(4,000)		14,000
Balance, end of year	122,000		122,000
Individually evaluated for impairment:
Individually evaluated for impairment, Balance in allowance	11,000		15,000
Individually evaluated for impairment, Related loan balance	86,000		86,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	111,000		107,000
Collectively evaluated for impairment, Related loan balance	12,614,000		11,990,000
Residential Real estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	589,000	864,000	864,000
Charged off			(16,000)
Recoveries	3,000		5,000
Provision for loan losses	(45,000)		(264,000)
Balance, end of year	547,000		589,000
Individually evaluated for impairment:
Individually evaluated for impairment, Related loan balance	617,000		631,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	547,000		589,000
Collectively evaluated for impairment, Related loan balance	80,165,000		80,402,000
Indirect
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	917,000	988,000	988,000
Charged off	(125,000)		(504,000)
Recoveries	30,000		225,000
Provision for loan losses	20,000		208,000
Balance, end of year	842,000		917,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	842,000		917,000
Collectively evaluated for impairment, Related loan balance	95,093,000		102,384,000
Commercial
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	38,000	241,000	241,000
Charged off			(27,000)
Recoveries	20,000		10,000
Provision for loan losses	(21,000)		(186,000)
Balance, end of year	37,000		38,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	37,000		38,000
Collectively evaluated for impairment, Related loan balance	13,172,000		11,907,000
Construction
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	11,000	4,000	4,000
Provision for loan losses	(2,000)		7,000
Balance, end of year	9,000		11,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	9,000		11,000
Collectively evaluated for impairment, Related loan balance	2,563,000		3,317,000
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance, beginning of year	389,000	$ 283,000	283,000
Provision for loan losses	(28,000)		106,000
Balance, end of year	361,000		389,000
Individually evaluated for impairment:
Individually evaluated for impairment, Related loan balance	3,627,000		3,680,000
Collectively evaluated for impairment:
Collectively evaluated for impairment, Balance in allowance	361,000		389,000
Collectively evaluated for impairment, Related loan balance	$ 69,023,000		$ 70,341,000

Loans and Allowance - Allowan_2

Loans and Allowance - Allowance for credit losses (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)borrower	Mar. 31, 2019USD ($)borrower	Dec. 31, 2019USD ($)
Loans and Allowance
Average loans	$ 281,335,000	$ 299,506,000
Net charge-offs to average loans (annualized)	0.10%	0.15%
Number of borrowers | borrower	14	19
Loans charged off	$ 125,000	$ 205,000	$ 616,000
Outstanding commitments	38,000,000	33,000,000
Unfunded commitments
Beginning balance	37,000	35,000	35,000
Reduction of unfunded reserve		(9,000)
Provisions charged to operations	13,000
Ending balance	$ 50,000	$ 26,000	$ 37,000

Loans and Allowance - Current,

Loans and Allowance - Current, past due, and non-accrual loans by categories of loans and restructured loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 271,500	$ 279,768
Past Due	500
Non-accrual	4,088	4,127	$ 2,462	$ 1,947
Total	276,960	284,738
30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	1,353	822
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	19	21
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	12,522	11,865
Non-accrual	132	137	312	186
Total	12,700	12,076
Consumer | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	46	74
Residential Real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	80,042	80,192
Non-accrual	713	728	1,232	956
Total	80,782	81,033
Residential Real estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	8	92
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	19	21
Indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	94,393	101,605
Non-accrual	136	123	186	116
Total	95,093	102,384
Indirect | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	564	656
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	13,172	11,907
Non-accrual			86	27
Total	13,172	11,907
Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,563	3,317
Total	2,563	3,317
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	68,808	70,882
Non-accrual	3,107	3,139	$ 646	$ 662
Total	72,650	$ 74,021
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due	$ 735

Loans and Allowance - Impaired

Loans and Allowance - Impaired financing receivables (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	$ 40,000	$ 26,000
Unpaid Principal Balance with specific reserves	40,000	41,000
Interest Income Recognized with specific reserves	1,000	2,000
Specific Reserve with specific reserves	11,000	15,000
Recorded Investment	50,000	50,000
Recorded Investment with no specific reserve	4,568,000	4,627,000
Unpaid Principal Balance with no specific reserve	4,623,000	5,396,000
Interest Income Recognized with no specific reserve	34,000	109,000
Specific Reserve	11,000
Average Recorded Investment with no specific reserve	5,935,000	5,895,000
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment with specific reserves	40,000	26,000
Unpaid Principal Balance with specific reserves	40,000	41,000
Interest Income Recognized with specific reserves	1,000	2,000
Specific Reserve with specific reserves	11,000	15,000
Recorded Investment	50,000	50,000
Recorded Investment with no specific reserve	92,000	96,000
Unpaid Principal Balance with no specific reserve	92,000	96,000
Interest Income Recognized with no specific reserve		8,000
Average Recorded Investment with no specific reserve	116,000	122,000
Indirect
Financing Receivable, Impaired [Line Items]
Interest Income Recognized with specific reserves		6,000
Recorded Investment with no specific reserve	136,000	123,000
Unpaid Principal Balance with no specific reserve	136,000	123,000
Specific Reserve	11,000
Average Recorded Investment with no specific reserve	152,000
Commercial Real Estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	3,627,000	3,680,000
Unpaid Principal Balance with no specific reserve	3,627,000	3,680,000
Interest Income Recognized with no specific reserve	31,000	81,000
Average Recorded Investment with no specific reserve	3,749,000	3,845,000
Residential Real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment with no specific reserve	713,000	728,000
Unpaid Principal Balance with no specific reserve	768,000	1,497,000
Interest Income Recognized with no specific reserve	3,000	14,000
Average Recorded Investment with no specific reserve	$ 1,918,000	$ 1,928,000

Loans and Allowance - Summary o

Loans and Allowance - Summary of allowance for credit losses (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 40,000	$ 41,000
Non-accrual and 90+ days past due and still accruing loans to average loans	1.46%	1.45%
Allowance for credit losses to non-accrual and 90 days or more and still accruing loans	46.70%	49.80%
Consumer
Financing Receivable, Impaired [Line Items]
Troubled debt restructured loans	$ 40,000

Loans and Allowance - Non-accru

Loans and Allowance - Non-accrual loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	$ 4,127	$ 1,947
Transfer into non-accrual	177	1,061
Loans paid down/payoffs	(74)	(315)
Loans return to accrual status	(17)	(19)
Loans charged off	(125)	(212)
Balance	4,088	2,462
Consumer
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	137	186
Transfer into non-accrual		134
Loans paid down/payoffs	(5)	(8)
Balance	132	312
Residential Real estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	728	956
Transfer into non-accrual		571
Loans paid down/payoffs	(15)	(283)
Loans charged off		(12)
Balance	713	1,232
Indirect
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	123	116
Transfer into non-accrual	177	270
Loans paid down/payoffs	(22)	(8)
Loans return to accrual status	(17)	(19)
Loans charged off	(125)	(173)
Balance	136	186
Commercial
Financing Receivable Nonaccrual Status [Roll Forward]
Balance		27
Transfer into non-accrual		86
Loans charged off		(27)
Balance		86
Commercial Real Estate
Financing Receivable Nonaccrual Status [Roll Forward]
Balance	3,139	662
Loans paid down/payoffs	(32)	(16)
Balance	$ 3,107	$ 646

Loans and Allowance - Credit Qu

Loans and Allowance - Credit Quality Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)loan	Dec. 31, 2019USD ($)loan	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Financing Receivable, Recorded Investment [Line Items]
Total	$ 276,960	$ 284,738
Non-accrual	4,088	4,127	$ 2,462	$ 1,947
Troubled debt restructures	$ 40	$ 41
Number of TDRs accounts | loan	1	1
Non-performing TDRs | loan	40	41
Number of non-performing TDRs accounts | loan	1	1
Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 272,352	$ 280,070
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	4,555	4,589
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	53	79
Consumer
Financing Receivable, Recorded Investment [Line Items]
Total	12,700	12,076
Non-accrual	132	137	312	186
Troubled debt restructures	$ 40	$ 41
Number of TDRs accounts | loan	1	1
Non-performing TDRs | loan	40	41
Number of non-performing TDRs accounts | loan	1	1
Consumer | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	$ 12,568	$ 11,939
Consumer | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	132	137
Residential Real estate
Financing Receivable, Recorded Investment [Line Items]
Total	80,782	81,033
Non-accrual	713	728	1,232	956
Residential Real estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	80,069	80,305
Residential Real estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	713	728
Indirect
Financing Receivable, Recorded Investment [Line Items]
Total	95,093	102,384
Non-accrual	136	123	186	116
Indirect | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	94,957	102,261
Indirect | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	83	44
Indirect | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total	53	79
Commercial
Financing Receivable, Recorded Investment [Line Items]
Total	13,172	11,907
Non-accrual			86	27
Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	13,172	11,907
Construction
Financing Receivable, Recorded Investment [Line Items]
Total	2,563	3,317
Construction | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	2,563	3,317
Commercial Real Estate
Financing Receivable, Recorded Investment [Line Items]
Total	72,650	74,021
Non-accrual	3,107	3,139	$ 646	$ 662
Commercial Real Estate | Pass
Financing Receivable, Recorded Investment [Line Items]
Total	69,023	70,341
Commercial Real Estate | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total	$ 3,627	$ 3,680

Loans and Allowance - (Details)

Loans and Allowance - (Details)	3 Months Ended
	Mar. 31, 2020USD ($)borrower	Mar. 31, 2019borrower	Dec. 31, 2019USD ($)
Financing Receivable, Impaired [Line Items]
Loans outstanding	$ 500,000
Number of borrowers | borrower	14	19
30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	$ 1,353,000		$ 822,000
30-89 Days Past Due | Substandard
Financing Receivable, Impaired [Line Items]
Loans outstanding	$ 500,000
Consumer
Financing Receivable, Impaired [Line Items]
Number of borrowers | borrower	1
Amount of consumer and indirect loans, outstanding	$ 40,311
Amount of consumer and indirect loans, specific reserves	10,882
Consumer | 30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	46,000		$ 74,000
Commercial Real Estate | 30-89 Days Past Due
Financing Receivable, Impaired [Line Items]
Loans outstanding	735,000
Commercial Real Estate | 30-89 Days Past Due | Substandard
Financing Receivable, Impaired [Line Items]
Loans outstanding	$ 505,000

FAIR VALUE (Details)

FAIR VALUE (Details)	Mar. 31, 2020USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans deemed to be impaired	$ 4,300,000
Specific reserve amount	11,000
Impaired real estate loans	4,300,000
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	18
Impaired loans includes nonaccrual, past due 90 days or more and still accruing	$ 300,000
Remaining impaired loan	268,000
Specific reserve amount	$ 11,000

FAIR VALUE - Changes in the ass

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ (70,172)	$ (71,486)
Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	74,443	76,496
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	69,843	71,855
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure	4,600	4,641
Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(26,206)	(27,483)
Agency mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(29,312)	(27,837)
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(12,470)	(12,475)
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(502)	(500)
Recurring | Collateralized mortgage obligations | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(26,206)	(27,483)
Recurring | Collateralized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(26,206)	(27,483)
Recurring | Agency mortgage-backed securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(29,312)	(27,837)
Recurring | Agency mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(29,312)	(27,837)
Recurring | Municipal securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(12,470)	(12,475)
Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(12,470)	(12,475)
Recurring | US Government Securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(1,682)	(3,191)
Recurring | US Government Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(1,682)	(3,191)
Recurring | U.S. Treasury securities | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(502)	(500)
Recurring | U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(502)	(500)
Recurring | Interest rate swap | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(1,034)	(336)
Recurring | Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	(1,034)	(336)
Nonrecurring | Fair Value.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maryland Financial Bank stock	3	3
Impaired loans	4,597	4,638
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	3	3
Impaired loans	$ 4,597	$ 4,638

FAIR VALUE - Estimated fair val

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets - Carrying Amount
Cash and due from banks	$ 2,658	$ 2,420
Interest-bearing deposits	14,159	10,017
Federal funds sold	1,254	853
Debt securities	70,172	71,486
Investments in restricted stock	1,199	1,437
Ground rents	143	143
Loans, net	275,042	282,672
Accrued interest receivable	970	961
Cash value of life insurance	8,062	8,023
Financial liabilities - Carrying Amount
Deposits	321,780	321,440
Short-term borrowings	20,000	25,000
Accrued interest payable	95	100
Unrecognized financial instruments:
Commitments to extend credit	30,127	26,297
Standby letters of credit	1,044	1,059
Financial assets - Fair Value
Cash and due from banks	2,658	2,420
Interest-bearing deposits	14,159	10,017
Federal funds sold	1,254	853
Investment securities	70,172	71,486
Investments in restricted stock	1,199	1,437
Ground rents	143	143
Loans, less allowance for credit losses	278,025	282,583
Accrued interest receivable	970	961
Cash value of life insurance	8,062	8,023
Financial liabilities - Fair Value
Deposits	322,965	300,944
Short-term borrowings	20,060	25,386
Accrued interest payable	95	100
Unrecognized financial instruments:
Commitments to extend credit	30,127	26,297
Standby letters of credit	$ 1,044	$ 1,059

FAIR VALUE - Fair value hierarc

FAIR VALUE - Fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Financial assets - Carrying Amount
Cash and cash equivalents	$ 18,071
Loans receivable, net	275,042	$ 282,672
Cash value of life insurance	8,062
Financial liabilities - Carrying Amount
Deposits	321,780	321,440
Short-term debt	20,000	25,000
Financial assets - Fair Value
Loans receivable, net	278,025	282,583
Financial liabilities - Fair Value
Deposits	322,965	300,944
Short-term debt	20,060	$ 25,386
Fair Value.
Financial assets - Fair Value
Cash and cash equivalents	18,071
Loans receivable, net	278,025
Cash value of life insurance	8,062
Financial liabilities - Fair Value
Deposits	322,965
Short-term debt	20,060
Fair Value. | Level 1
Financial assets - Fair Value
Cash and cash equivalents	18,071
Financial liabilities - Fair Value
Short-term debt	113,328
Fair Value. | Level 2
Financial assets - Fair Value
Cash value of life insurance	8,062
Financial liabilities - Fair Value
Deposits	209,637
Short-term debt	20,060
Fair Value. | Level 3
Financial assets - Fair Value
Loans receivable, net	$ 278,025