FAIR VALUE (Tables)

9 Months Ended

Sep. 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
September 30, 2021
Recurring:
Securities available for sale
Collateralized mortgage obligations	$	—	$	23,621	$	—	$	23,621
Agency mortgage-backed securities		—		29,722		—		29,722
Municipal securities		—		44,639		—		44,639
Corporate securities		—		1,490		—		1,490
U.S. Government agency securities		—		63,355		—		63,355
Interest rate swap		—		(635)		—		(635)
Non-recurring:
Maryland Financial Bank stock		—		—		3		3
Impaired loans		—		—		2,770		2,770
	$	—	$	162,192	$	2,773	$	164,965
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

	September 30, 2021				December 31, 2020
(dollars in thousands)	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets:
Cash and due from banks	$	2,826	$	2,826	$	2,117	$	2,117
Interest-bearing deposits in other financial institutions		26,466		26,466		29,730		29,730
Federal funds sold		2,172		2,172		5,246		5,246
Investment securities available for sale		162,827		162,827		114,049		114,049
Investments in restricted stock		1,062		1,062		1,199		1,199
Ground rents		136		136		140		140
Loans, less allowance for credit losses		221,884		229,081		252,296		253,946
Accrued interest receivable		1,304		1,304		1,302		1,302
Cash value of life insurance		8,298		8,298		8,181		8,181
Financial liabilities:
Deposits		374,509		375,587		349,620		350,666
Short-term borrowings		20,000		20,006		29,912		29,935
Accrued interest payable		14		14		16		16
Unrecognized financial instruments:
Commitments to extend credit		29,618		29,618		31,561		31,561
Standby letters of credit		971		971		1,044		1,044

Schedule of fair value hierarchy of financial instruments

(dollars in thousands)
	Carrying		Fair
September 30, 2021	Amount		Value		Level 1		Level 2		Level 3
Financial instruments - Assets
Cash and cash equivalents	$	31,464	$	31,464	$	31,464	$	—	$	—
Loans receivable, net		221,884		229,081		—		—		229,081
Cash value of life insurance		8,298		8,298		—		8,298		—
Financial instruments - Liabilities
Deposits		374,509		375,587		148,487		227,100		—
Short-term debt		20,000		20,006		—		20,006		—