FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2018

FAIR VALUE.

Schedule of changes in asset subject to fair value measurement by Level

							Fair
(dollars in thousands)	Level 1		Level 2		Level 3		Value
March 31, 2018
Recurring:
Securities available for sale
U.S. Treasury	$	—	$	1,486	$	—	$	1,486
State and Municipal		—		34,866		—		34,866
Mortgaged-backed		—		53,977		—		53,977
Interest rate swap		—		447		—		447
Non-recurring:
Maryland Financial Bank stock		—		—		30		30
Impaired loans		—		—		5,142		5,142
OREO		—		114		—		114
	$	—	$	90,890	$	5,172	$	96,062
December 31, 2017
Recurring:
Securities available for sale
U.S. Treasury	$	—	$	1,493	$	—	$	1,493
State and Municipal		—		35,633		—		35,633
Mortgaged-backed		—		52,223		—		52,223
Interest rate swap		—		49		—		49
Non-recurring:
Maryland Financial Bank stock		—		—		30		30
Impaired loans		—		—		3,532		3,532
OREO		—		114		—		114
	$	—	$	89,512	$	3,562	$	93,074

Schedule of estimated fair values of financial instruments

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

Schedule of fair value hierarchy of financial instruments

(dollars in thousands)
	Carrying		Fair
March 31, 2018	Amount		Value		Level 1		Level 2	Level 3
Financial instruments - Assets
Cash and cash equivalents	$	8,528	$	8,528	$	8,528	—	$	—
Loans receivable, net		272,817		271,053		—	—		271,053
Cash value of life insurance		8,290		8,290		—	8,290		—
Financial instruments - Liabilities
Deposits		336,170		315,964		224,098	91,866		—
Short-term debt		20,000		20,781		—	20,781		—