FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	27,020	$	—	$	27,020
Agency mortgage-backed securities		—		35,270		—		35,270
Municipal securities		—		30,997		—		30,997
U.S. Government agency securities		—		41,610		—		41,610
Interest rate swap		—		(810)		—		(810)
Non-recurring:
Maryland Financial Bank stock		—		—		3		3
Impaired loans		—		—		4,431		4,431
OREO		—		575		—		575
	$	—	$	134,662	$	4,434	$	139,096
December 31, 2020
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	24,643	$	—	$	24,643
Agency mortgage-backed securities		—		26,948		—		26,948
Municipal securities		—		29,413		—		29,413
U.S. Government agency securities		—		33,045		—		33,045
Interest rate swap		—		(949)		—		(949)
Non-recurring:
Maryland Financial Bank stock		—		—		3		3
Impaired loans		—		—		4,893		4,893
OREO				575				575
	$	—	$	113,675	$	4,896	$	118,571

Schedule of estimated fair values of financial instruments

	March 31, 2021				December 31, 2020
(dollars in thousands)	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	$	2,130	$	2,130	$	2,117	$	2,117
Interest-bearing deposits in other financial institutions		33,277		33,277		29,730		29,730
Federal funds sold		5,067		5,067		5,246		5,246
Investment securities available for sale		134,897		134,897		114,049		114,049
Investments in restricted stock		1,062		1,062		1,199		1,199
Ground rents		140		140		140		140
Loans, less allowance for credit losses		243,932		249,391		252,296		253,946
Accrued interest receivable		1,277		1,277		1,302		1,302
Cash value of life insurance		8,219		8,219		8,181		8,181
Financial liabilities:
Deposits		368,923		369,234		349,620		350,666
Short-term borrowings		31,244		31,236		29,912		29,935
Accrued interest payable		17		17		16		16
Unrecognized financial instruments:
Commitments to extend credit		30,729		30,729		31,561		31,561
Standby letters of credit		1,044		1,044		1,044		1,044

Schedule of fair value hierarchy of financial instruments

(dollars in thousands)
	Carrying		Fair
March 31, 2021	Amount		Value		Level 1		Level 2		Level 3
Financial instruments - Assets
Cash and cash equivalents	$	40,474	$	40,474	$	40,474	$	—	$	—
Loans receivable, net		243,932		249,391		—		—		249,391
Cash value of life insurance		8,219		8,219		—		8,219		—
Financial instruments - Liabilities
Deposits		368,923		369,234		147,911		221,323		—
Short-term debt		31,244		31,236		11,244		19,992		—