FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2021
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	25,447	$	—	$	25,447
Agency mortgage-backed securities		—		33,044		—		33,044
Municipal securities		—		42,687		—		42,687
Corporate securities		—		1,496		—		1,496
U.S. Government agency securities		—		54,917		—		54,917
Interest rate swap		—		(722)		—		(722)
Non-recurring:
Maryland Financial Bank stock		—		—		3		3
Impaired loans		—		—		4,104		4,104
OREO		—		—		—		—
	$	—	$	156,869	$	4,107	$	160,976
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
Corporate securities		—		—		—		—
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

	June 30, 2021				December 31, 2020
(dollars in thousands)	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	$	2,223	$	2,223	$	2,117	$	2,117
Interest-bearing deposits in other financial institutions		20,145		20,145		29,730		29,730
Federal funds sold		4,400		4,400		5,246		5,246
Investment securities available for sale		157,591		157,591		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		231,984		238,850		252,296		253,946
Accrued interest receivable		1,304		1,304		1,302		1,302
Cash value of life insurance		8,258		8,258		8,181		8,181
Financial liabilities:
Deposits		368,884		370,102		349,620		350,666
Short-term borrowings		25,237		25,245		29,912		29,935
Accrued interest payable		15		15		16		16
Unrecognized financial instruments:
Commitments to extend credit		30,706		30,706		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
June 30, 2021	Amount		Value		Level 1		Level 2		Level 3
Financial instruments - Assets
Cash and cash equivalents	$	26,768	$	26,768	$	26,768	$	—	$	—
Loans receivable, net		231,984		238,850		—		—		238,850
Cash value of life insurance		8,258		8,258		—		8,258		—
Financial instruments - Liabilities
Deposits		368,884		370,102		143,914		226,187		—
Short-term debt		25,237		25,245		5,237		20,009		—