FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2019

FAIR VALUE

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

							Fair
(dollars in thousands)	Level 1		Level 2		Level 3		Value
June 30, 2019
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	19,103	$	—	$	19,103
Agency mortgage-backed securities		—		25,651		—		25,651
Municipal securities		—		13,463		—		13,463
U.S. Government agency securities		—		1,998		—		1,998
U.S. Treasury securities		—		998		—		998
Interest rate swap		—		(326)		—		(326)
Non-recurring:
Maryland Financial Bank stock		—		—		5		5
Impaired loans		—		—		5,014		5,014
OREO		—		705		—		705
	$	—	$	61,592	$	5,019	$	66,611
December 31, 2018
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	19,806	$	—	$	19,806
Agency mortgage-backed securities		—		24,987		—		24,987
Municipal securities		—		33,830		—		33,830
U.S. Government agency securities		—		1,959		—		1,959
U.S. Treasury securities		—		990		—		990
Interest rate swap		—		295		—		295
Non-recurring:
Maryland Financial Bank stock		—		—		5		5
Impaired loans		—		—		2,501		2,501
OREO				705				705
	$	—	$	82,572	$	2,506	$	85,078

Schedule of estimated fair values of financial instruments

	June 30, 2019				December 31, 2018
(dollars in thousands)	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	$	2,373	$	2,373	$	2,605	$	2,605
Interest-bearing deposits in other financial institutions		7,454		7,454		12,468		12,468
Federal funds sold		111		111		881		881
Investment securities available for sale		61,213		61,213		81,572		81,572
Investments in restricted stock		1,227		1,227		2,481		2,481
Ground rents		146		146		143		143
Loans, less allowance for credit losses		288,778		286,809		296,579		293,175
Accrued interest receivable		992		992		1,198		1,198
Cash value of life insurance		7,940		7,940		7,860		7,860
Financial liabilities:
Deposits		320,178		318,571		322,453		307,271
Short-term borrowings		20,000		20,012		55,000		55,851
Accrued interest payable		123		123		152		152
Unrecognized financial instruments:
Commitments to extend credit		28,818		28,818		19,905		19,905
Standby letters of credit		1,059		1,059		1,059		1,059

Schedule of fair value hierarchy of financial instruments

(dollars in thousands)
	Carrying		Fair
June 30, 2019	Amount		Value		Level 1		Level 2	Level 3
Financial instruments - Assets
Cash and cash equivalents	$	9,827	$	9,827	$	9,827	—	$	—
Loans receivable, net		288,778		286,809		—	—		286,809
Cash value of life insurance		7,940		7,940		—	7,940		—
Financial instruments - Liabilities
Deposits		320,178		318,571		107,185	211,386		—
Short-term debt		20,000		20,012		—	20,012		—