Glen Burnie Bancorp (GLBZ) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 04, 2014
Document And Entity Information [Abstract]	'	'
Entity Registrant Name	'GLEN BURNIE BANCORP	'
Entity Central Index Key	'0000890066	'
Trading Symbol	'glbz	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock Shares Outstanding	'	2,760,964
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and due from banks	$7,112	$9,214
Interest-bearing deposits in other financial institutions	5,702	1,636
Federal funds sold	6,512	103
Cash and cash equivalents	19,326	10,953
Investment securities available for sale, at fair value	86,678	74,314
Federal Home Loan Bank stock, at cost	1,328	1,453
Maryland Financial Bank stock	30	30
Loans, less allowance for credit losses (September 30: $2,511; December 31: $2,972)	280,235	270,684
Premises and equipment, at cost, less accumulated depreciation	3,753	3,697
Other real estate owned	163	1,171
Cash value of life insurance	9,082	8,915
Other assets	4,649	5,977
Total assets	405,244	377,194
Liabilities:	'	'
Deposits	349,449	323,803
Long-term borrowings	20,000	20,000
Other liabilities	1,793	1,807
Total liabilities	371,242	345,610
Commitments and contingencies	'	'
Stockholders' equity:	'	'
Common stock, par value $1, authorized 15,000,000 shares; issued and outstanding: September 30: 2,757,490 shares; December 31: 2,747,370 shares	2,757	2,747
Surplus	9,820	9,714
Retained earnings	20,908	20,301
Accumulated other comprehensive gain (loss), net of taxes	517	-1,178
Total stockholders' equity	34,002	31,584
Total liabilities and stockholders' equity	$405,244	$377,194

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Statement Of Financial Position [Abstract]	'	'
Loans, allowance for credit losses (in dollars)	$2,511	$2,972
Common stock, par value (in dollars per share)	$1	$1
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	2,757,490	2,747,370
Common stock, shares outstanding	2,757,490	2,747,370

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income on:	'	'	'	'
Loans, including fees	$3,108	$3,251	$9,237	$9,302
U.S. Treasury and U.S. Government agency securities	171	241	562	643
State and municipal securities	357	429	1,026	1,273
Other	22	19	68	60
Total interest income	3,658	3,940	10,893	11,278
Interest expense on:	'	'	'	'
Deposits	505	511	1,403	1,609
Short-term borrowings	'	3	'	3
Long-term borrowings	161	161	479	479
Total interest expense	666	675	1,882	2,091
Net interest income	2,992	3,265	9,011	9,187
Provision for credit losses	125	'	275	'
Net interest income after provision for credit losses	2,867	3,265	8,736	9,187
Other income:	'	'	'	'
Service charges on deposit accounts	112	163	349	433
Other fees and commissions	241	251	602	612
Other non-interest income	-5	-11	9	-1
Income on life insurance	56	59	167	175
Gains on investment securities	361	150	581	274
Total other income	765	612	1,708	1,493
Other expenses:	'	'	'	'
Salaries and employee benefits	1,657	1,720	5,003	5,048
Occupancy	191	192	618	589
Impairment of securities and stocks	'	15	'	15
Other expenses	1,147	911	3,121	2,594
Total other expenses	2,995	2,838	8,742	8,246
Income before income taxes	637	1,039	1,702	2,434
Income tax expense	111	244	268	470
Net income	$526	$795	$1,434	$1,964
Basic and diluted earnings per share of common stock (in dollars per share)	$0.19	$0.29	$0.52	$0.72
Weighted average shares of common stock outstanding (in shares)	2,757,213	2,743,679	2,757,011	2,741,388
Dividends declared per share of common stock (in dollars per share)	$0.10	$0.10	$0.30	$0.30

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Statement Of Other Comprehensive Income [Abstract]	'	'	'	'
Net income	$526	$795	$1,434	$1,964
Unrealized gains (losses) on securities:	'	'	'	'
Unrealized holding gains (losses) arising during the period	83	-741	2,045	-3,275
Reclassification adjustment for gains included in net income	-217	-90	-350	-165
Comprehensive income (loss)	$392	($36)	$3,129	($1,476)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income	$1,434	$1,964
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation, amortization, and accretion	720	1,238
Provision for credit losses	275	'
Gains on disposals of assets, net	-364	-250
Provision on losses of other real estate owned	75	'
Income on investment in life insurance	-167	-175
Impairment losses on investment securities	'	15
Changes in assets and liabilities:	'	'
Decrease in other assets	50	612
(Decrease) increase in other liabilities	-15	79
Net cash provided by operating activities	2,008	3,483
Cash flows from investing activities:	'	'
Maturities and proceeds of available for sale mortgage-backed securities	13,612	13,375
Proceeds from maturities and sales of other investment securities	5,966	13,572
Purchases of investment securities	-28,954	-21,110
Sale of Federal Home Loan Bank stock	125	-54
Proceeds from sales of other real estate	917	273
Increase in loans, net	-9,826	-12,680
Purchases of premises and equipment	-411	-179
Net cash used by investing activities	-18,571	-6,803
Cash flows from financing activities:	'	'
Increase (decrease) in deposits, net	25,646	-9,264
Increase in short-term borrowings, net	'	3,100
Dividends paid	-826	-548
Common stock dividends reinvested	116	79
Net cash provided (used) by financing activities	24,936	-6,633
Increase (decrease) in cash and cash equivalents	8,373	-9,953
Cash and cash equivalents, beginning of year	10,953	18,628
Cash and cash equivalents, end of period	$19,326	$8,675

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 1 - BASIS OF PRESENTATION
	The accompanying condensed balance sheet as of December 31, 2013, which has been derived from audited financial statements, and the unaudited interim consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, changes in stockholders’ equity, and cash flows in conformity with accounting principles generally accepted in the United States of America.  However, all adjustments (consisting only of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the unaudited consolidated financial statements have been included in the results of operations for the three and nine months ended September 30, 2014 and 2013.
	Operating results for the three and nine months ended September 30, 2014 is not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
EARNINGS PER SHARE	'
	NOTE 2 - EARNINGS PER SHARE
	Basic earnings per share of common stock are computed by dividing net earnings by the weighted average number of common shares outstanding during the period.  Diluted earnings per share are calculated by including the average dilutive common stock equivalents outstanding during the periods.  Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method.
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Basic and diluted:
	Net  income	$	526,000	$	795,000	$	1,434,000	$	1,964,000
	Weighted average common shares outstanding		2,757,213		2,743,679		2,757,011		2,741,388
	Basic and dilutive net income per share	$	0.19	$	0.29	$	0.52	$	0.72
	Diluted earnings per share calculations were not required for the three and nine months ended September 30, 2014 and 2013, since there were no options outstanding.

RECENT_ACCOUNTING_PRONOUNCEMEN

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS
	The FASB has issued several exposure drafts which, if adopted, would significantly alter the Company’s (and all other financial institutions’) method of accounting for, and reporting, its financial assets and some liabilities from a historical cost method to a fair value method of accounting as well as the reported amount of net interest income. Also, the FASB has issued several exposure drafts regarding a change in the accounting for leases. Under this exposure draft, the total amount of “lease rights” and total amount of future payments required under all leases would be reflected on the balance sheets of all entities as assets and debt. If the changes under discussion in either of these exposure drafts are adopted, the financial statements of the Company could be materially impacted as to the amounts of recorded assets, liabilities, capital, net interest income, interest expense, depreciation expense, rent expense and net income. The Company has not determined the extent of the possible changes at this time. The exposure drafts are in different stages of review, approval and possible adoption.
	ASU 2011-11, “Balance Sheet (Topic 210) – “Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 amends Topic 210, “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to a master netting arrangement or similar agreement. ASU 2011-11 is effective for annual and interim periods beginning on January 1, 2013, and did not have a material effect on the Company’s results of operations or financial condition.
	ASU 2012-02 “Intangibles – Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment.” ASU 2012-02 give entities the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that an indefinite-lived intangible asset is impaired. If, after assessing the totality of events or circumstances, an entity determines it is more likely than not that an indefinite-lived intangible asset is impaired, then the entity must perform the quantitative impairment test. If, under the quantitative impairment test, the carrying amount of the intangible asset exceeds its fair value, an entity should recognize an impairment loss in the amount of that excess. Permitting an entity to assess qualitative factors when testing indefinite-lived intangible assets for impairment results in guidance that is similar to the goodwill impairment testing guidance in ASU 2011-08. ASU 2012-02 is effective for the Corporation beginning January 1, 2013 and did not have a material effect on the Company’s results of operations or financial condition.
	ASU 2013-02, Comprehensive Income (Topic 220), “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This standard is effective prospectively for public entities for annual and interim reporting periods beginning after December 15, 2012. Being disclosure-related only, the Company’s adoption of ASU 2013-02 on January 1, 2013 did not have a material effect on the Company’s results of operations or financial condition.
	ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, is expected to eliminate diversity in practice as it provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss (NOL) carryforward, a similar tax loss, or a tax credit carryforward exists. The changes were effective for the Company during the first quarter of 2014. Adoption of this ASU had no impact on the financial statements of the Company.
	In May 2014, the FASB and the International Accounting Standards Board (the “IASB”) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards (“IFRS”). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2016; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.
	In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in this ASU are effective for interim or annual reporting periods beginning after December 15, 2015; early adoption is permitted. Entities may apply the amendments in this ASU either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. As of June 30, 2014, the Company did not have any share-based payment awards that include performance targets that could be achieved after the requisite service period. As such, the adoption of ASU No. 2014-12 is not expected to have a material impact on the Company’s Consolidated Financial Statements.

FAIR_VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE	'
	NOTE 4 – FAIR VALUE
	ASC 820-10 defines fair value, establishes a framework for measuring fair value and expands disclosure of fair value measurements.
	Fair Value Hierarchy
	ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
		o  Level 1 – Quoted prices in active markets for identical securities
		o  Level 2 – Other significant observable inputs (including quoted prices in active markets for similar securities)
		o  Level 3 – Significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments)
	In determining the appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820-10.
	The Company’s bond holdings in the investment securities portfolio are the only asset or liability subject to fair value measurements on a recurring basis.  Two assets are valued under Level 1 inputs at September 30, 2014 or December 31, 2013.  The Company has assets measured by fair value measurements on a non-recurring basis during 2014.  At September 30, 2014,  these assets include 15 loans classified as impaired, which include nonaccrual, past due 90 days or more and still accruing, and a homogeneous pool of indirect loans all considered to be impaired loans, which are valued under Level 3 inputs and one property classified as OREO valued under Level 2 inputs.
	The changes in the assets subject to fair value measurements are summarized below by Level:
			(Dollars in Thousands)
											Fair
			Level 1		Level 2			Level 3			Value
	31-Dec-13
	Recurring:
	Investment securities available for sale (AFS)		$	574	$	73,516		$	224		$	74,314
	Non-recurring:
	Maryland Financial Bank stock			-		-			30			30
	Impaired loans			-		-			4,745			4,745
	OREO			-		1,171			-			1,171
				574		74,687			4,999			80,260
	Activity:
	Investment securities AFS
	Purchases of investment securities			-		28,954			-			28,954
	Sales, calls and maturities of investment securities			-		(19,578	)		-			(19,578	)
	Amortization/accretion of premium/discount			-		(407	)		-			(407	)
	Increase (decrease) in market value			46		3,475			(126	)		3,395
	Loans
	New impaired loans			-		-			3,819			3,819
	Payments and other loan reductions			-		-			(1,444	)		(1,444	)
	Change in total provision			-		-			447			447
	OREO
	Sales of OREO			-		(917	)		-			(917	)
	Loss on disposal of OREO			-		(16	)		-			(16	)
	Write-down of OREO			-		(75	)		-			(75	)
	30-Sep-14
	Recurring:
	Investment securities AFS			620		85,960			98			86,678
	Non-recurring:
	Maryland Financial Bank stock			-		-			30			30
	Impaired loans			-		-			7,567			7,567
	OREO			-		163			-			163
			$	620	$	86,123		$	7,695		$	94,438
	The estimated fair values of the Company’s financial instruments at September 30, 2014 and December 31, 2013 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.
			30-Sep-14					31-Dec-13
	(In Thousands)		Carrying		Fair			Carrying			Fair
			Amount		Value			Amount			Value
	Financial assets:
	Cash and due from banks		$	7,112	$	7,112		$	9,214		$	9,214
	Interest-bearing deposits			5,702		5,702			1,636			1,636
	Federal funds sold			6,512		6,512			103			103
	Investment securities			86,678		86,678			74,314			74,314
	Investments in restricted stock			1,328		1,328			1,453			1,453
	Ground rents			169		169			169			169
	Loans, net			280,235		274,896			270,684			270,684
	Accrued interest receivable			1,211		1,211			1,509			1,509
	Financial liabilities:
	Deposits			349,449		317,821			323,803			291,046
	Long-term borrowings			20,000		20,924			20,000			21,032
	Dividends payable			276		276			275			275
	Accrued interest payable			40		40			29			29
	Off-balance sheet commitments			23,551		23,551			23,901			23,901
	Fair values are based on quoted market prices for similar instruments or estimated using discounted cash flows. The discounts used are estimated using comparable market rates for similar types of instruments adjusted to be commensurate with the credit risk, overhead costs and optionality of such instruments.
The fair value of cash and due from banks, federal funds sold, investments in restricted stocks and accrued interest receivable are equal to the carrying amounts. The fair values of investment securities are determined using market quotations. The fair value of loans receivable is estimated using discounted cash flow analysis.
The fair value of non-interest bearing deposits, interest-bearing checking, savings, and money market deposit accounts, securities sold under agreements to repurchase, and accrued interest payable are equal to the carrying amounts. The fair value of fixed-maturity time deposits is estimated using discounted cash flow analysis.
The gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2014 are as follows:
Securities available for sale:		Less than 12 months					12 months or more						Total
(Dollars in Thousands)
		Fair		Unrealized			Fair			Unrealized			Fair		Unrealized
		Value		Loss			Value			Loss			Value		Loss
Obligations of U.S. Govt Agencies		$	5,410	$	37		$	-		$	-		$	5,410	$	37
State and Municipal			-		-			5,113			79			5,113		79
Corporate Trust Preferred			-		-			98			149			98		149
Mortgage Backed			14,707		73			20,744			998			35,451		1,071
		$	20,117	$	110		$	25,955		$	1,226		$	46,072	$	1,336
At September 30, 2014, the company owned one pooled trust preferred security issued by Regional Diversified Funding, Senior Notes with a Moody’s rating of Ca.  The market for this security (two different portions) at September 30, 2014 was not active and markets for similar securities were also not active.  As a result, the Company had cash flow testing performed as of September 30, 2014 by an unrelated third party specialist in order to measure the possible extent of other-than-temporary-impairment (“OTTI”).  This testing assumed future defaults on the currently performing financial institutions of 150 basis points applied annually with a 0% recovery on both current and future defaulting financial institutions.  No write-down was taken in the first nine months of 2014. There was a write-down of $15,312 done on the larger portion of the security during the third quarter of 2013 and a write-down of $269 done on the larger portion of the security during the fourth quarter of 2013.
Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary-impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain it’s investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
As of September 30, 2014, management had the ability and intent to hold the securities classified as available for sale for a period of time sufficient for a recovery of cost.  On September 30, 2014, the Bank held 39 investment securities having continuous unrealized loss positions for more than 12 months.  Management has determined that all unrealized losses are either due to increases in market interest rates over the yields available at the time the underlying securities were purchased, current call features that are nearing, and the effect the sub-prime market has had on all mortgage-backed securities.  The Bank has no mortgage-backed securities collateralized by sub-prime mortgages.  The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline.  Management does not believe any of the securities are impaired due to reasons of credit quality.  Except as noted above, as of September 30, 2014, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company’s consolidated income statement.
A rollforward of the cumulative other-than-temporary credit losses recognized in earnings for all debt securities for which a portion of an other-than-temporary loss is recognized in accumulated other comprehensive loss is as follows:
		At		At
		September 30,		December 31,
		2014		2013
		(Dollars in Thousands)
Estimated credit losses, beginning of year		$	3,262	$	3,247
Credit losses - no previous OTTI recognized			-		-
Credit losses - previous OTTI recognized			-		15
Estimated credit losses, end of period		$	3,262	$	3,262

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Schedule of earnings per common share	'
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Basic and diluted:
	Net  income	$	526,000	$	795,000	$	1,434,000	$	1,964,000
	Weighted average common shares outstanding		2,757,213		2,743,679		2,757,011		2,741,388
	Basic and dilutive net income per share	$	0.19	$	0.29	$	0.52	$	0.72

FAIR_VALUE_Tables

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2014
Fair Value Disclosures [Abstract]	'
Schedule of changes in asset subject to fair value measurement by Level	'
		(Dollars in Thousands)
										Fair
		Level 1		Level 2			Level 3			Value
	31-Dec-13
	Recurring:
	Investment securities available for sale (AFS)	$	574	$	73,516		$	224		$	74,314
	Non-recurring:
	Maryland Financial Bank stock		-		-			30			30
	Impaired loans		-		-			4,745			4,745
	OREO		-		1,171			-			1,171
			574		74,687			4,999			80,260
	Activity:
	Investment securities AFS
	Purchases of investment securities		-		28,954			-			28,954
	Sales, calls and maturities of investment securities		-		(19,578	)		-			(19,578	)
	Amortization/accretion of premium/discount		-		(407	)		-			(407	)
	Increase (decrease) in market value		46		3,475			(126	)		3,395
	Loans
	New impaired loans		-		-			3,819			3,819
	Payments and other loan reductions		-		-			(1,444	)		(1,444	)
	Change in total provision		-		-			447			447
	OREO
	Sales of OREO		-		(917	)		-			(917	)
	Loss on disposal of OREO		-		(16	)		-			(16	)
	Write-down of OREO		-		(75	)		-			(75	)
	30-Sep-14
	Recurring:
	Investment securities AFS		620		85,960			98			86,678
	Non-recurring:
	Maryland Financial Bank stock		-		-			30			30
	Impaired loans		-		-			7,567			7,567
	OREO		-		163			-			163
		$	620	$	86,123		$	7,695		$	94,438
Schedule of estimated fair values of financial instruments	'
		30-Sep-14					31-Dec-13
	(In Thousands)	Carrying		Fair			Carrying			Fair
		Amount		Value			Amount			Value
	Financial assets:
	Cash and due from banks	$	7,112	$	7,112		$	9,214		$	9,214
	Interest-bearing deposits		5,702		5,702			1,636			1,636
	Federal funds sold		6,512		6,512			103			103
	Investment securities		86,678		86,678			74,314			74,314
	Investments in restricted stock		1,328		1,328			1,453			1,453
	Ground rents		169		169			169			169
	Loans, net		280,235		274,896			270,684			270,684
	Accrued interest receivable		1,211		1,211			1,509			1,509
	Financial liabilities:
	Deposits		349,449		317,821			323,803			291,046
	Long-term borrowings		20,000		20,924			20,000			21,032
	Dividends payable		276		276			275			275
	Accrued interest payable		40		40			29			29
	Off-balance sheet commitments		23,551		23,551			23,901			23,901
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time in continuous unrealized loss position	'
	Securities available for sale:	Less than 12 months					12 months or more						Total
	(Dollars in Thousands)
		Fair		Unrealized			Fair			Unrealized			Fair		Unrealized
		Value		Loss			Value			Loss			Value		Loss
	Obligations of U.S. Govt Agencies	$	5,410	$	37		$	-		$	-		$	5,410	$	37
	State and Municipal		-		-			5,113			79			5,113		79
	Corporate Trust Preferred		-		-			98			149			98		149
	Mortgage Backed		14,707		73			20,744			998			35,451		1,071
		$	20,117	$	110		$	25,955		$	1,226		$	46,072	$	1,336
Schedule of rollforward of the cumulative other-than-temporary credit losses recognized in earnings for debt securities	'
		At		At
		September 30,		December 31,
		2014		2013
		(Dollars in Thousands)
	Estimated credit losses, beginning of year	$	3,262	$	3,247
	Credit losses - no previous OTTI recognized		-		-
	Credit losses - previous OTTI recognized		-		15
	Estimated credit losses, end of period	$	3,262	$	3,262

EARNINGS_PER_SHARE_Basic_earni

EARNINGS PER SHARE - Basic earnings per share of common stock (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Basic and diluted:	'	'	'	'
Net income	$526	$795	$1,434	$1,964
Weighted average common shares outstanding (in shares)	2,757,213	2,743,679	2,757,011	2,741,388
Basic and dilutive net income per share	$0.19	$0.29	$0.52	$0.72

FAIR_VALUE_Changes_in_the_asse

FAIR VALUE - Changes in the assets subject to fair value measurements (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Investment securities available for sale (AFS)	$74,314	$86,678
Fair Value, Inputs, Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Assets, fair value disclosure	574	620
Investment securities AFS	'	'
Purchases of investment securities	'	'
Sales, calls and maturities of investment securities	'	'
Amortization/accretion of premium/discount	'	'
Increase (decrease) in market value	46	'
Loans	'	'
New impaired loans	'	'
Payments and other loan reductions	'	'
Change in total provision	'	'
OREO	'	'
Sales of OREO	'	'
Loss on disposal of OREO	'	'
Write-down of OREO	'	'
Fair Value, Inputs, Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Assets, fair value disclosure	74,687	86,123
Investment securities AFS	'	'
Purchases of investment securities	28,954	'
Sales, calls and maturities of investment securities	-19,578	'
Amortization/accretion of premium/discount	-407	'
Increase (decrease) in market value	3,475	'
Loans	'	'
New impaired loans	'	'
Payments and other loan reductions	'	'
Change in total provision	'	'
OREO	'	'
Sales of OREO	-917	'
Loss on disposal of OREO	-16	'
Write-down of OREO	-75	'
Fair Value, Inputs, Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Assets, fair value disclosure	4,999	7,695
Investment securities AFS	'	'
Purchases of investment securities	'	'
Sales, calls and maturities of investment securities	'	'
Amortization/accretion of premium/discount	'	'
Increase (decrease) in market value	-126	'
Loans	'	'
New impaired loans	3,819	'
Payments and other loan reductions	-1,444	'
Change in total provision	447	'
OREO	'	'
Sales of OREO	'	'
Loss on disposal of OREO	'	'
Write-down of OREO	'	'
Fair Value	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Assets, fair value disclosure	80,260	94,438
Investment securities AFS	'	'
Purchases of investment securities	28,954	'
Sales, calls and maturities of investment securities	-19,578	'
Amortization/accretion of premium/discount	-407	'
Increase (decrease) in market value	3,395	'
Loans	'	'
New impaired loans	3,819	'
Payments and other loan reductions	-1,444	'
Change in total provision	447	'
OREO	'	'
Sales of OREO	-917	'
Loss on disposal of OREO	-16	'
Write-down of OREO	-75	'
Recurring | Fair Value, Inputs, Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Investment securities available for sale (AFS)	574	620
Recurring | Fair Value, Inputs, Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Investment securities available for sale (AFS)	73,516	85,960
Recurring | Fair Value, Inputs, Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Investment securities available for sale (AFS)	224	98
Recurring | Fair Value	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Investment securities available for sale (AFS)	74,314	86,678
Nonrecurring | Fair Value, Inputs, Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Maryland Financial Bank stock	'	'
Impaired loans	'	'
OREO	'	'
Nonrecurring | Fair Value, Inputs, Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Maryland Financial Bank stock	'	'
Impaired loans	'	'
OREO	1,171	163
Nonrecurring | Fair Value, Inputs, Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Maryland Financial Bank stock	30	30
Impaired loans	4,745	7,567
OREO	'	'
Nonrecurring | Fair Value	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Maryland Financial Bank stock	30	30
Impaired loans	4,745	7,567
OREO	$1,171	$163

FAIR_VALUE_Estimated_fair_valu

FAIR VALUE - Estimated fair values of the Company's financial instruments (Details 1) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Financial assets - Carrying Amount	'	'
Cash and due from banks	$7,112	$9,214
Interest-bearing deposits	5,702	1,636
Federal funds sold	6,512	103
Investment securities	86,678	74,314
Investments in restricted stock	1,328	1,453
Ground rents	169	169
Loans, net	280,235	270,684
Accrued interest receivable	1,211	1,509
Financial liabilities - Carrying Amount	'	'
Deposits	349,449	323,803
Long-term borrowings	20,000	20,000
Dividends payable	276	275
Accrued interest payable	40	29
Off-balance sheet commitments	23,551	23,901
Financial assets - Fair Value	'	'
Cash and due from banks	7,112	9,214
Interest-bearing deposits	5,702	1,636
Federal funds sold	6,512	103
Investment securities	86,678	74,314
Investments in restricted stock	1,328	1,453
Ground rents	169	169
Loans, net	274,896	270,684
Accrued interest receivable	1,211	1,509
Financial liabilities - Fair Value	'	'
Deposits	317,821	291,046
Long-term borrowings	20,924	21,032
Dividends payable	276	275
Accrued interest payable	40	29
Off-balance sheet commitments	$23,551	$23,901

FAIR_VALUE_Gross_unrealized_lo

FAIR VALUE - Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (Details 2) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'
Less than 12 months Fair Value	$20,117
Less than 12 months Unrealized Loss	110
12 months or more Fair Value	25,955
12 months or more Unrealized Loss	1,226
Total Fair Value	46,072
Total Unrealized Loss	1,336
Obligations of U.S. Govt Agencies	'
Schedule of Available-for-sale Securities [Line Items]	'
Less than 12 months Fair Value	5,410
Less than 12 months Unrealized Loss	37
12 months or more Fair Value	'
12 months or more Unrealized Loss	'
Total Fair Value	5,410
Total Unrealized Loss	37
State and Municipal	'
Schedule of Available-for-sale Securities [Line Items]	'
Less than 12 months Fair Value	'
Less than 12 months Unrealized Loss	'
12 months or more Fair Value	5,113
12 months or more Unrealized Loss	79
Total Fair Value	5,113
Total Unrealized Loss	79
Corporate Trust Preferred	'
Schedule of Available-for-sale Securities [Line Items]	'
Less than 12 months Fair Value	'
Less than 12 months Unrealized Loss	'
12 months or more Fair Value	98
12 months or more Unrealized Loss	149
Total Fair Value	98
Total Unrealized Loss	149
Mortgage Backed	'
Schedule of Available-for-sale Securities [Line Items]	'
Less than 12 months Fair Value	14,707
Less than 12 months Unrealized Loss	73
12 months or more Fair Value	20,744
12 months or more Unrealized Loss	998
Total Fair Value	35,451
Total Unrealized Loss	$1,071

FAIR_VALUE_Cumulative_othertha

FAIR VALUE - Cumulative other-than-temporary credit losses (Details 3) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]	'	'
Estimated credit losses, beginning of year	$3,262	$3,247
Credit losses - no previous OTTI recognized	'	'
Credit losses - previous OTTI recognized	'	15
Estimated credit losses, end of period	$3,262	$3,262

FAIR_VALUE_Detail_Textuals

FAIR VALUE - (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2014
			Security
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Number of assets valued at quoted price	2	'	2
Number of impaired loans classified as nonaccrual loans	'	'	15
Number of properties classified as OREO	'	'	1
Corporate Debt Securities	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Number of pooled trust preferred security	'	'	1
Assumed future inputs net default basis points rate	'	'	'This testing assumed future defaults on the currently performing financial institutions of 150 basis points applied annually with a 0% recovery on both current and future defaulting financial institutions.
Write-down of investment	$269	$15,312	'
Investment securities	'	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'	'
Number of securities continuous unrealized loss position more than twelve months	'	'	39