Salisbury Bancorp (SAL) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 13, 2015
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	1,060,219
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,733,576
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 11,436	$ 13,280
Interest bearing demand deposits with other banks	70,259	22,825
Total cash and cash equivalents	81,695	36,105
Securities
Available-for-sale at fair value	80,371	91,312
Federal Home Loan Bank of Boston stock at cost	3,515	3,515
Loans held-for-sale	573	568
Loans receivable, net (allowance for loan losses: $5,659 and $5,358)	687,719	673,330
Other real estate owned	167	1,002
Bank premises and equipment, net	14,588	14,431
Goodwill	12,552	12,552
Intangible assets (net of accumulated amortization: $2,752 and $2,258)	2,496	2,990
Accrued interest receivable	2,296	2,334
Cash surrender value of life insurance policies	13,591	13,314
Deferred taxes	2,788	2,428
Other assets	1,882	1,546
Total Assets	904,233	855,427
Deposits
Demand (non-interest bearing)	194,618	161,386
Demand (interest bearing)	129,779	117,169
Money market	184,409	174,274
Savings and other	123,017	121,387
Certificates of deposit	129,656	141,210
Total deposits	761,479	715,426
Repurchase agreements	4,210	4,163
Federal Home Loan Bank of Boston advances	26,928	$ 28,813
Note payable	380
Capital lease liability	422	$ 424
Accrued interest and other liabilities	5,364	4,780
Total Liabilities	798,783	753,606
Shareholders' Equity
Preferred stock - $.01 per share par value; Authorized: 25,000; Issued: 16,000 (Series B); Liquidation preference: $1,000 per share	16,000	16,000
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,733,576 and 2,720,766	273	272
Paid-in capital	41,362	41,077
Retained earnings	46,558	42,677
Unearned compensation - restricted stock awards	(186)	(313)
Accumulated other comprehensive income	1,443	2,108
Total Shareholders' Equity	105,450	101,821
Total Liabilities and Shareholders' Equity	$ 904,233	$ 855,427

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Allowance for loan losses, loans receivable	$ 5,659	$ 5,358
Accumulated amortization, intangible assets	$ 2,752	$ 2,258
Shareholders' Equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	25,000	25,000
Preferred stock, issued (Series B)	16,000	16,000
Preferred stock, liquidation preference	$ 1,000	$ 1,000
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,733,576	2,720,766

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest and dividend income
Interest and fees on loans	$ 7,955	$ 4,656	$ 23,727	$ 13,983
Interest on debt securities
Taxable	286	330	910	1,075
Tax exempt	351	416	1,098	1,294
Other interest and dividends	58	42	132	87
Total interest and dividend income	8,650	5,444	25,867	16,439
Interest expense
Deposits	463	379	1,359	1,079
Repurchase agreements	2	3	5	5
Capital lease	18	$ 12	53	$ 29
Note payable	1		1
Federal Home Loan Bank of Boston advances	269	$ 296	832	$ 892
Total interest expense	753	690	2,250	2,005
Net interest and dividend income	7,897	4,754	23,617	14,434
Provision for loan losses	655	318	651	969
Net interest and dividend income after provision for loan losses	7,242	4,436	22,966	13,465
Non-interest income
Trust and wealth advisory	798	791	2,510	2,509
Service charges and fees	798	$ 639	2,307	$ 1,807
Gains on sales and calls of available-for-sale securities, net	6		192
Gains on sales of mortgage loans, net	47		227	$ 43
Mortgage servicing, net	5	$ 41	(15)	80
Other	115	82	343	234
Total non-interest income	1,769	1,553	5,564	4,673
Non-interest expense
Salaries	2,531	1,980	7,520	5,776
Employee benefits	916	697	2,881	2,176
Premises and equipment	863	667	2,683	2,080
Data processing	404	420	1,276	1,166
Professional fees	398	315	1,642	1,025
Collections, OREO and loan related	125	85	594	319
FDIC insurance	163	119	494	340
Marketing and community support	174	115	465	355
Amortization of core deposit intangibles	$ 161	75	$ 494	194
Merger and acquisition related expenses		196		586
Other	$ 467	439	$ 1,528	1,269
Total non-interest expense	6,202	5,108	19,577	15,286
Income before income taxes	2,809	881	8,953	2,852
Income tax provision	824	113	2,663	567
Net income	1,985	768	6,290	2,285
Net income available to common shareholders	$ 1,945	$ 728	$ 6,170	$ 2,159
Basic earnings per common share	$ .71	$ .43	$ 2.26	$ 1.26
Diluted earnings per common share	.71	.43	2.25	1.26
Common dividends per share	$ 0.28	$ 0.28	$ .84	$ .84

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income	$ 1,985	$ 768	$ 6,290	$ 2,285
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale	116	$ 342	(816)	$ 2,771
Reclassification of net realized gains in net income	(6)		(192)
Unrealized gains (losses) on securities available-for-sale	110	$ 342	(1,008)	$ 2,771
Income tax (expense) benefit	(37)	(116)	343	(942)
Other comprehensive income (loss), net of tax	73	226	(665)	1,829
Comprehensive income	$ 2,058	$ 994	$ 5,625	$ 4,114

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Preferred stock	Paid-in capital	Retained earnings	Unearned compensation - restricted stock awards	Accumulated other comprehensive income	Total shareholders' equity
Balance - Beginning, amount at Dec. 31, 2013	$ 171	$ 16,000	$ 13,668	$ 42,240	$ (335)	$ 1,046	$ 72,790
Balance - Beginning, shares at Dec. 31, 2013	1,710,121
Net income for the period				$ 2,285			2,285
Other comprehensive income/loss, net of tax						$ 1,829	1,829
Common stock dividends declared				$ (1,439)			(1,439)
Preferred stock dividends declared				$ (126)			$ (126)
Issuance of restricted common stock, amount			$ 81		$ (81)
Issuance of restricted common stock, shares	3,000
Forfeiture of restricted common stock, amount			(50)		$ 50
Forfeiture of restricted common stock, shares	(2,000)
Issuance of common stock for directors, amount			$ 65				$ 65
Issuance of common stock for directors, shares	2,160
Stock based compensation - restricted stock awards					$ 112		112
Balance - Ending, amount at Sep. 30, 2014	$ 171	$ 16,000	$ 13,764	$ 42,960	(254)	$ 2,875	75,516
Balance - Ending, shares at Sep. 30, 2014	1,713,281
Balance - Beginning, amount at Dec. 31, 2014	$ 272	$ 16,000	$ 41,077	42,677	$ (313)	$ 2,108	101,821
Balance - Beginning, shares at Dec. 31, 2014	2,720,766
Net income for the period				$ 6,290			6,290
Other comprehensive income/loss, net of tax						$ (665)	(665)
Common stock dividends declared				$ (2,289)			(2,289)
Preferred stock dividends declared				$ (120)			$ (120)
Forfeiture of restricted common stock, amount			$ (7)		$ 7
Forfeiture of restricted common stock, shares	(300)
Stock options exercised, amount	$ 1		182				$ 183
Stock options exercised, shares	9,450
Issuance of common stock for executives, amount			29				29
Issuance of common stock for executives, shares	1,000
Issuance of common stock for directors, amount			$ 81				81
Issuance of common stock for directors, shares	2,660
Stock based compensation - restricted stock awards					$ 120		120
Balance - Ending, amount at Sep. 30, 2015	$ 273	$ 16,000	$ 41,362	$ 46,558	$ (186)	$ 1,443	$ 105,450
Balance - Ending, shares at Sep. 30, 2015	2,733,576

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net income	$ 6,290	$ 2,285
(Accretion), amortization and depreciation:
Securities	178	163
Bank premises and equipment	917	737
Core deposit intangible	494	193
Mortgage servicing rights	282	220
(increase) decrease fair value adjustment on loans	(2,031)	24
(Increase) decrease fair value adjustment on deposits	(355)	53
(Gains) and losses, including write-downs
Gains on calls of securities available-for-sale, net	(40)	$ (39)
Gains on sales of securities, available-for-sale, net	(152)
Gains on sales of loans, excluding capitalized servicing rights	(102)
Write-downs of other real estate owned	238	$ 4
Loss on sale/disposals of premises and equipment	45	5
Provision for loan losses	651	969
Proceeds from loans sold	4,897	3,536
Loans originated for sale	(4,800)	(3,324)
Decrease (increase) in deferred loan origination fees and costs, net	25	(21)
Mortgage servicing rights originated	(125)	(6)
Increase (decrease) in mortgage servicing rights impairment reserve	3	(14)
Decrease (increase) in interest receivable	38	(74)
Deferred tax benefit	(17)	(39)
Increase in prepaid expenses	(409)	(81)
Increase in cash surrender value of life insurance policies	$ (277)	(173)
Increase in income tax receivable		$ (329)
Increase in income tax payable	$ 271
Increase in other assets	(87)	$ (76)
Decrease in accrued expenses	(11)	(144)
Decrease in interest payable	(45)	(5)
Increase in other liabilities	369	82
Stock based compensation - restricted stock awards	120	112
Net cash provided by operating activities	$ 6,367	4,058
Investing Activities
Maturity of interest-bearing time deposits with other banks		738
Redemption of Federal Home Loan Bank stock		$ 1,825
Purchases of securities available-for-sale	$ (9,322)
Proceeds from sales of securities available-for-sale	3,861
Proceeds from calls of securities available-for-sale	7,995	$ 4,115
Proceeds from maturities of securities available-for-sale	7,413	7,539
Loan originations and principle collections, net	(13,748)	(24,694)
Recoveries of loans previously charged off	613	50
Proceeds from sale of other real estate owned	$ 698	40
Premiums paid on bank-owned life insurance		(1,100)
Cash and cash equivalents acquired from Sharon, CT branch office of another institution		17,462
Capital expenditures	$ (739)	(1,872)
Net cash (utilized) provided by investing activities	(3,229)	4,103
Financing Activities
Increase in deposit transaction accounts, net	57,607	24,527
(Decrease) increase in time deposits, net	(11,199)	2,174
Increase in securities sold under agreements to repurchase, net	47	3,946
Principal payments on Federal Home Loan Bank of Boston advances	(786)	$ (1,193)
Modification payment on Federal Home Loan Bank of Boston advances	(1,099)
Decrease in capital lease obligation	(2)	$ (1)
Stock options exercised	183
Issuance of shares for director fees	81	$ 65
Issuance of shares for executives	29
Common stock dividends paid	(2,289)	$ (1,439)
Series B preferred stock dividends paid	(120)	(126)
Net cash provided by financing activities	42,452	27,953
Net increase in cash and cash equivalents	45,590	36,114
Cash and cash equivalents, beginning of year	36,105	12,711
Cash and cash equivalents, end of period	81,695	48,825
Cash paid during year
Interest	2,650	2,010
Income taxes	2,409	$ 935
Non-cash Investing and Financing Activities
Transfer from loans to other real estate owned	101
Note payable to finance building purchase	$ 380
Sharon branch acquisition
Cash and cash equivalents acquired		$ 17,462
Net loans acquired		63
Fixed assets acquired		158
Core deposit intangible		488
Deposits assumed		18,171
Accrued interest payable assumed		$ 1

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of Salisbury and the statements of income, comprehensive income, shareholders’ equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, expected cash flows from loans acquired in a business combination, other-than-temporary impairment of securities, impairment of goodwill and intangibles and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2014 Annual Report on Form 10-K for the year ended December 31, 2014. The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. Impact of New Accounting Pronouncements Issued In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e. interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). Salisbury is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07: “Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The objective of this update is to address the diversity in practice related to how certain investments measured at net asset value with redemption dates in the future are categorized within the fair value hierarchy. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16: “Simplifying the Accounting for Measurement-Period Adjustments.” Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects (if any) as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The ASU also requires that the acquirer present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been issued. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

SECURITIES

SECURITIES	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized Gross un- Gross un- Fair value September 30, 2015 Available-for-sale U.S. Treasury notes $ 7,498 $ 67 $ — $ 7,565 U.S. Government agency notes 498 2 — 500 Municipal bonds 32,691 690 (64 ) 33,317 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 26,449 575 (18 ) 27,006 Collateralized mortgage obligations U.S. Government agencies 2,136 21 — 2,157 Non-agency 4,834 505 (7 ) 5,332 SBA bonds 3,297 53 — 3,350 CRA mutual funds 762 7 — 769 Preferred stock 20 355 — 375 Total securities available-for-sale $ 78,185 $ 2,275 $ (89 ) $ 80,371 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (in thousands) Amortized Gross un- Gross un- Fair value December 31, 2014 Available-for-sale U.S. Treasury notes $ 2,699 $ 107 $ — $ 2,806 U.S. Government agency notes 5,850 24 — 5,874 Municipal bonds 38,962 1,455 (65 ) 40,352 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 27,036 688 (15 ) 27,709 Collateralized mortgage obligations U.S. Government agencies 2,657 22 — 2,679 Non-agency 6,056 552 (12 ) 6,596 SBA bonds 4,336 129 — 4,465 CRA mutual funds 502 2 — 504 Preferred stock 20 307 — 327 Total securities available-for-sale $ 88,118 $ 3,286 $ (92 ) $ 91,312 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury sold $3.7 million in securities available-for-sale during the nine month period ended September 30, 2015, and did not sell any securities available-for-sale during the nine month period ended September 30, 2014. Realized gains on sales of securities sold in 2015 are $153,000. The following table summarizes, for all securities in an unrealized loss position, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses September 30, 2015 Available-for-sale Municipal bonds $ 1,267 $ (64 ) $ — $ — $ 1,267 $ (64 ) Mortgage-backed securities 1,828 (18 ) — — 1,828 (18 ) Collateralized mortgage obligations: Non-agency 244 (7 ) — — 244 (7 ) Total temporarily impaired securities 3,339 (89 ) — — 3,339 (89 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2014 Available-for-sale Municipal bonds $ 177 $ 1 $ 1,589 $ 64 $ 1,766 $ 65 Mortgage-backed securities 56 1 1,885 14 1,941 15 Collateralized mortgage obligations: Non-agency 441 7 164 5 605 12 Total temporarily impaired securities 674 9 3,638 83 4,312 92 Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at September 30, 2015. U.S. Government agency mortgage-backed securities: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be at maturity, and Salisbury does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at September 30, 2015. Municipal bonds: Contractual cash flows are performing as expected. Salisbury’s portfolio is mostly comprised of tax-exempt general obligation bonds or public-purpose revenue bonds for schools, municipal offices, sewer infrastructure and fire houses, for small towns and municipalities across the United States. In the wake of the financial crisis, most monoline bond insurers had their ratings downgraded or withdrawn because of excessive exposure to insurance for collateralized debt obligations. Where appropriate, Salisbury performs credit underwriting reviews of unrated issuers, including some that have had their ratings withdrawn and are insured by insurers that have had their ratings withdrawn, to assess default risk. For all completed reviews, pass credit risk ratings have been assigned. Management expects to recover the entire amortized cost basis of these securities. It is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be at maturity, and Salisbury does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at September 30, 2015. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at September 30, 2015, to assess whether any of the securities were OTTI. Salisbury uses cash flow forecasts for each security based on a variety of market driven assumptions and securitization terms, including prepayment speed, default or delinquency rate, and default severity for losses including interest, legal fees, property repairs, expenses and realtor fees, that, together with the loan amount are subtracted from collateral sales proceeds to determine severity. In 2009, Salisbury determined that five non-agency CMO securities reflected OTTI and recognized losses for deterioration in credit quality of $1,128,000. Salisbury judged the four remaining securities not to have additional OTTI and all other CMO securities not to be OTTI as of September 30, 2015. It is possible that future loss assumptions could change necessitating Salisbury to recognize future OTTI for further deterioration in credit quality. Salisbury evaluates these securities for strategic fit and depending upon such factor could reduce its position in these securities, although it has no present intention to do so, and it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis. The following table presents activity related to credit losses recognized into earnings on the non-agency CMOs held by Salisbury for which a portion of an OTTI charge was recognized in accumulated other comprehensive income: Nine months ended September 30 (in thousands) 2015 2014 Balance, beginning of period $ 1,128 $ 1,128 Credit component on debt securities in which OTTI was not previously recognized — — Balance, end of period $ 1,128 $ 1,128 The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of September 30, 2015. Deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: September 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 260,912 $ 8,026 $ 268,938 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,192 6,228 12,420 5,556 8,735 14,291 Construction of residential 1-4 family 6,193 — 6,193 2,004 — 2,004 Home equity credit 33,880 — 33,880 34,627 — 34,627 Residential real estate 307,177 14,254 321,431 294,445 17,958 312,403 Commercial 110,955 91,467 202,422 98,498 97,899 196,397 Construction of commercial 12,987 4,862 17,849 18,602 9,045 27,647 Commercial real estate 123,942 96,329 220,271 117,100 106,944 224,044 Farm land 3,485 — 3,485 3,239 — 3,239 Vacant land 9,446 — 9,446 9,342 — 9,342 Real estate secured 444,050 110,583 554,633 424,126 124,902 549,028 Commercial and industrial 70,858 53,928 124,786 49,204 68,714 117,918 Municipal 6,947 — 6,947 6,083 — 6,083 Consumer 5,760 74 5,834 4,334 122 4,456 Loans receivable, gross 527,615 164,585 692,200 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,178 — 1,178 1,203 — 1,203 Allowance for loan losses (5,386 ) (273 ) (5,659 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 523,407 $ 164,312 $ 687,719 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 573 $ — $ 573 $ 568 $ — $ 568 Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in Litchfield County, Connecticut; Dutchess, Orange and Columbia Counties, New York; and Berkshire County, Massachusetts, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, and installment and collateral loans. Residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury’s market area. Loan Credit Quality The composition of loans receivable by risk rating grade is as follows: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 246,872 $ 7,053 $ 6,895 $ 92 $ — $ 260,912 Residential 5+ multifamily 4,180 1,048 964 — — 6,192 Construction of residential 1-4 family 6,193 — — — — 6,193 Home equity credit 32,331 469 1,080 — — 33,880 Residential real estate 289,576 8,570 8,939 92 — 307,177 Commercial 99,165 4,984 6,806 — — 110,955 Construction of commercial 12,416 — 571 — — 12,987 Commercial real estate 111,581 4,984 7,377 — — 123,942 Farm land 2,449 — 1,036 — — 3,485 Vacant land 6,446 71 2,929 — — 9,446 Real estate secured 410,052 13,625 20,281 92 — 444,050 Commercial and industrial 69,007 1,230 621 — — 70,858 Municipal 6,947 — — — — 6,947 Consumer 5,742 11 7 — — 5,760 Loans receivable, gross $ 491,748 $ 14,866 $ 20,909 $ 92 $ — $ 527,615 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 7,168 $ 91 $ 767 $ — $ — $ 8,026 Residential 5+ multifamily 6,228 — — — — 6,228 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 13,396 91 767 — — 14,254 Commercial 83,657 3,052 4,758 — — 91,467 Construction of commercial 4,590 — 272 — — 4,862 Commercial real estate 88,247 3,052 5,030 — — 96,329 Farm land — — — — — — Vacant land — — — — — — Real estate secured 101,643 3,143 5,797 — — 110,583 Commercial and industrial 52,051 1,192 603 82 — 53,928 Municipal — — — — — — Consumer 50 7 — 17 — 74 Loans receivable, gross $ 153,744 $ 4,342 $ 6,400 $ 99 $ — $ 164,585 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 232,628 $ 12,350 $ 7,187 $ 93 $ — $ 252,258 Residential 5+ multifamily 3,420 1,072 1,064 — — 5,556 Construction of residential 1-4 family 2,004 — — — — 2,004 Home equity credit 32,639 807 1,181 — — 34,627 Residential real estate 270,691 14,229 9,432 93 — 294,445 Commercial 79,975 10,728 7,795 — — 98,498 Construction of commercial 18,024 — 578 — — 18,602 Commercial real estate 97,999 10,728 8,373 — — 117,100 Farm land 772 1,361 1,106 — — 3,239 Vacant land 6,039 140 3,163 — — 9,342 Real estate secured 375,501 26,458 22,074 93 — 424,126 Commercial and industrial 44,903 3,527 774 — — 49,204 Municipal 6,083 — — — — 6,083 Consumer 4,271 53 10 — — 4,334 Loans receivable, gross $ 430,758 $ 30,038 $ 22,858 $ 93 $ — $ 483,747 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ 9,223 Residential 5+ multifamily 8,735 — — — — 8,735 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 17,396 — 562 — — 17,958 Commercial 89,820 3,830 3,723 526 — 97,899 Construction of commercial 9,045 — — — — 9,045 Commercial real estate 98,865 3,830 3,723 526 — 106,944 Farm land — — — — — — Vacant land — — — — — — Real estate secured 116,261 3,830 4,285 526 — 124,902 Commercial and industrial 66,098 1,675 941 — — 68,714 Municipal — — — — — — Consumer 96 7 19 — — 122 Loans receivable, gross $ 182,455 $ 5,512 $ 5,245 $ 526 $ — $ 193,738 The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over September 30, 2015 Residential 1-4 family $ 252,773 $ 3,454 $ 332 $ 426 $ 93 $ 3,834 $ 4,685 $ — $ 5,770 Residential 5+ multifamily 6,032 71 — — — 89 89 — 89 Construction of residential 1-4 family 6,193 — — — — — — — — Home equity credit 32,733 424 291 — 422 10 723 — 494 Residential real estate 297,731 3,949 623 426 515 3,933 5,497 — 6,353 Commercial 106,638 1,708 1,569 240 119 681 2,609 — 2,423 Construction of commercial 12,539 — — 448 — — 448 — — Commercial real estate 119,177 1,708 1,569 688 119 681 3,057 — 2,423 Farm land 2,762 — — — — 723 723 — 1,036 Vacant land 5,504 1,119 — — — 2,823 2,823 — 2,857 Real estate secured 425,174 6,776 2,192 1,114 634 8,160 12,100 — 12,669 Commercial and industrial 69,459 840 139 397 5 18 559 5 419 Municipal 6,947 — — — — — — — — Consumer 5,653 92 14 1 — — 15 — — Loans receivable, gross $ 507,233 $ 7,708 $ 2,345 $ 1,512 $ 639 $ 8,178 $ 12,674 $ 5 $ 13,088 Acquired Loans September 30, 2015 Residential 1-4 family $ 6,977 $ 190 $ — $ — $ 269 $ 590 $ 859 $ 91 $ 767 Residential 5+ multifamily 6,228 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 13,205 190 — — 269 590 859 91 767 Commercial 86,852 1,982 — 461 102 2,070 2,633 — 2,172 Construction of commercial 4,590 — — — — 272 272 — 272 Commercial real estate 91,442 1,982 — 461 102 2,342 2,905 — 2,444 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 104,647 2,172 — 461 371 2,932 3,764 91 3,211 Commercial and industrial 53,116 561 191 20 40 — 251 — 40 Municipal — — — — — — — — — Consumer 70 — 4 — — — 4 — — Loans receivable, gross $ 157,833 $ 2,733 $ 195 $ 481 $ 411 $ 2,932 $ 4,019 $ 91 $ 3,251 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2014 Residential 1-4 family $ 241,567 $ 7,299 $ 1,250 $ 555 $ 976 $ 611 $ 3,392 $ — $ 2,445 Residential 5+ multifamily 5,467 — — — 89 — 89 — 89 Construction of residential 1-4 family 2,004 — — — — — — — — Home equity credit 33,488 387 122 528 39 63 752 — 348 Residential real estate 282,526 7,686 1,372 1,083 1,104 674 4,233 — 2,882 Commercial 94,598 2,079 602 — — 1,219 1,821 — 1,219 Construction of commercial 18,602 — — — — — — — — Commercial real estate 113,200 2,079 602 — — 1,219 1,821 — 1,219 Farm land 2,119 — 13 723 — 384 1,120 — 384 Vacant land 6,422 51 7 — 39 2,823 2,869 — 2,862 Real estate secured 404,267 9,816 1,994 1,806 1,143 5,100 10,043 — 7,347 Commercial and industrial 48,478 582 91 17 36 — 144 17 33 Municipal 6,083 — — — — — — — — Consumer 4,274 47 8 5 — — 13 — — Loans receivable, gross $ 463,102 $ 10,445 $ 2,093 $ 1,828 $ 1,179 $ 5,100 $ 10,200 $ 17 $ 7,380 Acquired Loans December 31, 2014 Residential 1-4 family $ 8,661 $ — $ — $ — $ — $ 562 $ 562 $ — $ 562 Residential 5+ multifamily 8,735 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 17,396 — — — — 562 562 — 562 Commercial 95,695 1,109 167 — 285 643 1,095 — 1,931 Construction of commercial 9,045 — — — — — — — — Commercial real estate 104,740 1,109 167 — 285 643 1,095 — 1,931 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 122,136 1,109 167 — 285 1,205 1,657 — 2,493 Commercial and industrial 67,665 740 89 220 — — 309 — — Municipal — — — — — — — — — Consumer 117 5 — — — — — — — Loans receivable, gross $ 189,918 $ 1,854 $ 256 $ 220 $ 285 $ 1,205 $ 1,966 $ — $ 2,493 Interest on impaired loans that would have been recorded as additional interest income for the nine months ended September 30, 2015 and 2014 had the loans been current in accordance with their original terms totaled $609,000 and $410,000, respectively, disregarding the impact of purchased accounting on these loans. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Nine months ended September 30, 2015 September 30, 2014 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 2 $ 923 $ 923 2 $ 237 $ 237 Commercial real estate 2 478 478 3 846 846 Construction of commercial — — — 1 131 131 Home equity credit 1 35 35 2 72 72 Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Rate reduction and term extension 2 $ 478 $ 478 — — — Interest only and term extension — — — 1 48 48 Term extension and amortization — — — 2 338 338 Interest only — — — 2 54 54 Debt consolidation, rate reduction, term extension — — — 1 399 399 Debt consolidation and term extension — — — 2 447 447 Note bifurcation 1 48 48 — — — Term extension 2 910 910 — — — Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Five loans were modified in troubled debt restructurings during 2015, one of which was past due at September 30, 2015. There was one acquired loan modified in a troubled debt restructuring during the nine months ended September 30, 2015. As of September 30, 2015, the Bank had $4.3 million in loans collateralized by residential real estate property in the process of foreclosure. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,147 $ 632 $ (92 ) $ 111 $ 2,798 $ 15 $ 55 $ — $ — $ 70 Commercial 1,339 (102 ) (10 ) — 1,227 77 81 — 5 163 Land 182 168 (72 ) — 278 — — — — — Real estate 3,668 698 (174 ) 111 4,303 92 136 — 5 233 Commercial and industrial 691 (197 ) — 4 498 52 (22 ) — 10 40 Municipal 64 (16 ) — — 48 — — — — — Consumer 123 1 (17 ) 6 113 — — — — — Unallocated 369 55 — — 424 — — — — — Totals $ 4,915 $ 541 $ (191 ) $ 121 $ 5,386 $ 144 $ 114 $ — $ 15 $ 273 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2015 Nine months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 952 $ (573 ) $ 113 $ 2,798 $ — $ 70 $ — $ — $ 70 Commercial 1,697 (256 ) (214 ) — 1,227 7 151 — 5 163 Land 164 186 (72 ) — 278 — — — — — Real estate 4,167 882 (859 ) 113 4,303 7 221 — 5 233 Commercial and industrial 583 (484 ) (56 ) 455 498 14 — — 26 40 Municipal 61 (13 ) — — 48 — — — — — Consumer 117 30 (47 ) 13 113 — — — — — Unallocated 409 15 — — 424 — — — — — Totals $ 5,337 $ 430 $ (962 ) $ 581 $ 5,386 $ 21 $ 221 $ — $ 31 $ 273 (in thousands) Three months ended September 30, 2014 Nine months ended September 30, 2014 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 1,974 $ 357 $ (46 ) $ 16 $ 2,301 $ 1,938 $ 494 $ (149 ) $ 18 $ 2,301 Commercial 1,622 89 — — 1,711 1,385 378 (52 ) — 1,711 Land 184 (17 ) (6 ) — 161 226 33 (98 ) — 161 Real estate 3,780 429 (52 ) 16 4,173 3,549 905 (299 ) 18 4,173 Commercial and industrial 584 (68 ) — 1 517 561 (57 ) (1 ) 14 517 Municipal 44 18 — — 62 43 19 — — 62 Consumer 49 11 (3 ) 2 59 105 (46 ) (18 ) 18 59 Unallocated 645 (72 ) — — 573 425 148 — — 573 Totals $ 5,102 $ 318 $ (55 ) $ 19 $ 5,384 $ 4,683 $ 969 $ (318 ) $ 50 $ 5,384 The composition of loans receivable and the allowance for loan losses is as follows: Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 252,454 $ 1,603 $ 8,458 $ 724 $ 260,912 $ 2,327 Residential 5+ multifamily 4,315 37 1,877 — 6,192 37 Construction of residential 1-4 family 6,193 52 — — 6,193 52 Home equity credit 33,230 345 650 37 33,880 382 Residential real estate 296,192 2,037 10,985 761 307,177 2,798 Commercial 106,573 937 4,382 170 110,955 1,107 Construction of commercial 12,864 120 123 — 12,987 120 Commercial real estate 119,437 1,057 4,505 170 123,942 1,227 Farm land 2,449 19 1,036 1 3,485 20 Vacant land 6,364 234 3,082 24 9,446 258 Real estate secured 424,442 3,347 19,608 956 444,050 4,303 Commercial and industrial 70,372 494 486 4 70,858 498 Municipal 6,947 48 — — 6,947 48 Consumer 5,760 113 — — 5,760 113 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 7,259 $ — $ 767 $ 70 $ — $ — $ 8,026 $ 70 Residential 5+ multifamily 6,228 — — — — — 6,228 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 13,487 — 767 70 — — 14,254 70 Commercial 83,257 13 2,920 145 5,290 2 91,467 160 Construction of commercial 4,590 3 272 — — — 4,862 3 Commercial real estate 87,847 16 3,192 145 5,290 2 96,329 163 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 101,334 16 3,959 215 5,290 2 110,583 233 Commercial and industrial 52,587 40 40 — 1,301 — 53,928 40 Municipal — — — — — — — — Consumer 57 — — — 17 — 74 — Unallocated allowance — — — — — — — — Totals $ 153,978 $ 56 $ 3,999 $ 215 $ 6,608 $ 2 $ 164,585 $ 273 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 245,997 $ 1,316 $ 6,261 $ 549 $ 252,258 $ 1,865 Residential 5+ multifamily 4,536 66 1,020 3 5,556 69 Construction of residential 1-4 family 2,004 13 — — 2,004 13 Home equity credit 34,231 350 396 9 34,627 359 Residential real estate 286,768 1,745 7,677 561 294,445 2,306 Commercial 93,784 1,018 4,714 486 98,498 1,504 Construction of commercial 18,474 193 128 — 18,602 193 Commercial real estate 112,258 1,211 4,842 486 117,100 1,697 Farm land 2,855 59 384 — 3,239 59 Vacant land 6,245 67 3,097 38 9,342 105 Real estate secured 408,126 3,082 16,000 1,085 424,126 4,167 Commercial and industrial 48,635 532 569 51 49,204 583 Municipal 6,083 61 — — 6,083 61 Consumer 4,334 117 — — 4,334 117 Unallocated allowance — 409 — — — 409 Totals $ 467,178 $ 4,201 $ 16,569 $ 1,136 $ 483,747 $ 5,337 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ — $ 9,223 $ — Residential 5+ multifamily 8,735 — — — — — 8,735 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 17,396 — 562 — — — 17,958 — Commercial 89,820 — 2,502 — 5,577 — 97,899 — Construction of commercial 9,045 7 — — — — 9,045 7 Commercial real estate 98,865 7 2,502 — 5,577 — 106,944 7 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 116,261 7 3,064 — 5,577 — 124,902 7 Commercial and industrial 66,874 14 — — 1,840 — 68,714 14 Municipal — — — — — — — — Consumer 103 — — — 19 — 122 — Unallocated allowance — — — — — — — — Totals $ 183,238 $ 21 $ 3,064 $ — $ 7,436 $ — $ 193,738 $ 21 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 503,052 $ 3,935 $ — $ — $ 503,052 $ 3,935 Potential problem loans 4,469 67 — — 4,469 67 Impaired loans — — 20,094 960 20,094 960 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 158,144 $ 56 $ — $ — $ 158,144 $ 56 Potential problem loans 2,442 2 — — 2,442 2 Impaired loans — — 3,999 215 3,999 215 Unallocated allowance — — — — — — Totals $ 160,586 $ 58 $ 3,999 $ 215 $ 164,585 $ 273 Business Activities Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 457,744 $ 3,283 $ — $ — $ 457,744 $ 3,283 Potential problem loans 9,423 509 11 — 9,434 509 Impaired loans — — 16,569 1,136 16,569 1,136 Unallocated allowance — 409 — — — 409 Totals $ 467,167 $ 4,201 $ 16,580 $ 1,136 $ 483,747 $ 5,337 Acquired Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 187,966 $ 21 $ — $ — $ 187,966 $ 21 Potential problem loans 2,708 — — — 2,708 — Impaired loans — — 3,064 — 3,064 — Unallocated allowance — — — — — — Totals $ 190,674 $ 21 $ 3,064 $ — $ 193,738 $ 21 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 7,170 $ 7,703 $ 6,213 $ 724 $ 109 $ 3,165 $ 3,314 $ 3,043 $ 82 Home equity credit 543 557 176 37 6 107 122 611 2 Residential real estate 7,713 8,260 6,389 761 115 3,272 3,436 3,654 84 Commercial 3,864 4,309 2,629 170 113 518 548 2,130 12 Construction of commercial — — — — — 123 129 127 6 Farm land 11 13 445 1 — 1,025 1,100 270 15 Vacant land 2,870 3,789 3,058 24 2 212 244 5 7 Real estate secured 14,458 16,371 12,521 956 230 5,150 5,457 6,186 124 Commercial and industrial 247 255 120 4 8 239 272 464 7 Consumer — — — — — — — — — Totals $ 14,705 $ 16,626 $ 12,641 $ 960 $ 238 $ 5,389 $ 5,729 $ 6,650 $ 131 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 590 $ 716 $ 176 $ 70 $ — $ 177 $ 177 $ 436 $ 4 Home equity credit — — — — — — — — — Residential real estate 590 716 176 70 — 177 177 436 4 Commercial 2,146 2,897 557 145 61 774 1,091 2,097 10 Construction of commercial — — — — — 272 278 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 2,736 3,613 733 215 61 1,223 1,546 2,671 30 Commercial and industrial 40 70 4 — 1 — — — — Consumer — — — — — — — — — Totals $ 2,776 $ 3,683 $ 737 $ 215 $ 62 $ 1,223 $ 1,546 $ 2,671 $ 30 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity credit 9 24 91 9 — 387 405 441 4 Residential real estate 5,017 5,181 4,638 561 128 2,660 2,800 3,144 61 Commercial 3,383 3,563 3,262 486 108 1,331 1,520 1,468 54 Construction of commercial — — — — — 128 134 123 — Farm land — — — — — 384 384 384 — Vacant land 3,097 3,996 3,090 38 12 — — — — Real estate secured 11,497 12,740 10,990 1,085 248 4,503 4,838 5,119 115 Commercial and industrial 102 161 106 51 2 467 469 516 30 Consumer — — — — — — — 19 — Totals $ 11,599 $ 12,901 $ 11,096 $ 1,136 $ 250 $ 4,970 $ 5,307 $ 5,654 $ 145 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity credit — — — — — — — — — Residential real estate — — — — — 562 716 562 3 Commercial — — — — — 2,502 4,014 2,502 12 Construction of commercial — — — — — — — — — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured — — — — — 3,064 4,730 3,064 15 Commercial and industrial — — — — — — 4 — — Consumer — — — — — — — — — Totals $ — $ — $ — $ — $ — $ 3,064 $ 4,734 $ 3,064 $ 15 Acquired Loans Loans that Salisbury acquired through business combinations are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” Salisbury recognizes the accretable yield, which is defined as the excess of all cash flows expected to be collected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the nonaccretable difference. The nonaccretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. Going forward, Salisbury continues to evaluate whether the timing and the amount of cash to be collected are reasonably expected. Subsequent significant increases in cash flows Salisbury expects to collect will first reduce any previously recognized valuation allowance and then be reflected prospectively as an increase to the level yield. Subsequent decreases in expected cash flows may result in the loan being considered impaired. Interest income is not recognized to the extent that the net investment in the loan would increase to an amount greater than the estimated payoff amount. For ASC 310-30 loans, the expected cash flows reflect anticipated prepayments, determined on a loan by loan basis according to the anticipated collection plan of these loans. The expected prepayments used to determine the accretable yield are consistent between the cash flows expected to be collected and projections of contractual cash flows so as to not affect the nonaccretable difference. For ASC 310-30 loans, prepayments result in the recognition of the nonaccretable balance as current period yield. Changes in prepayment assumptions may change the amount of interest income and principal expected to be collected. The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under ASC-310-30: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 1,604 $ — $ 1,242 $ — Acquisitions — — — — Sales — — — — Reclassification from nonaccretable difference for loans with improved cash flows 379 — 1,157 — Change in cash flows that do not affect nonaccretable difference — — — — Accretion (297 ) — (713 ) — Balance at end of period $ 1,686 $ — $ 1,686 $ — For loans that do not meet the ASC 310-30 criteria, Salisbury accretes interest income on a level yield basis using the contractually required cash flows. Salisbury subjects loans that do not meet the ASC 310-30 criteria to ASC Topic 450, “Contingencies” by collectively evaluating these loans for an allowance for loan losses. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Salisbury can reasonably estimate the timing and amount of the expected cash flows on such loans and if Salisbury expects to fully collect the new carrying value of the loans. As such, Salisbury may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2015
Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) September 30, 2015 December 31, 2014 Residential mortgage loans serviced for others $ 132,201 $ 138,106 Fair value of mortgage servicing rights 1,429 1,568 Changes in mortgage servicing rights are as follows: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Mortgage Servicing Rights Balance, beginning of period $ 599 $ 838 $ 694 $ 980 Originated 22 (17 ) 124 5 Amortization (1) (85 ) (56 ) (282 ) (220 ) Balance, end of period 536 765 536 765 Valuation Allowance Balance, beginning of period (2 ) (1 ) 1 (15 ) Decrease (increase) in impairment reserve (1) 1 1 (2 ) 15 Balance, end of period (1 ) — (1 ) — Loan servicing rights, net $ 535 $ 765 $ 535 $ 765 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS

PLEDGED ASSETS	9 Months Ended
	Sep. 30, 2015
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 5 - PLEDGED ASSETS (in thousands) September 30, 2015 December 31, 2014 Securities available-for-sale (at fair value) $ 68,569 $ 69,055 Loans receivable 159,436 157,581 Total pledged assets $ 228,005 $ 226,636 At September 30, 2015, securities were pledged as follows: $60.4 million to secure public deposits, $8.1 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. In addition to securities, loans receivable were pledged to secure FHLBB advances and credit facilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Net income $ 1,985 $ 768 $ 6,290 $ 2,285 Less: Preferred stock dividends declared (40 ) (40 ) (120 ) (126 ) Net income available to common shareholders 1,945 728 6,170 2,159 Less: Undistributed earnings allocated to participating securities (17 ) (8 ) (54 ) (26 ) Net income allocated to common stock $ 1,928 $ 720 $ 6,116 $ 2,133 Common shares issued 2,731 1,713 2,728 1,713 Less: Unvested restricted stock awards (24 ) (20 ) (24 ) (21 ) Common shares outstanding used to calculate basic earnings per common share 2,707 1,693 2,704 1,692 Add: Dilutive effect of stock options 17 — 17 — Common shares outstanding used to calculate diluted earnings per common share 2,724 1,693 2,721 1,692 Earnings per common share (basic) $ 0.71 $ 0.43 $ 2.26 $ 1.26 Earnings per common share (diluted) $ 0.71 $ 0.43 $ 2.25 $ 1.26

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 7 – SHAREHOLDERS’ EQUITY Capital Requirements Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury’s and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require Salisbury and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined) to average assets (as defined) and total, Common Equity Tier 1 and Tier 1 capital (as defined) to risk-weighted assets (as defined). Management believes, as of September 30, 2015, that Salisbury and the Bank meet all of the capital adequacy requirements to which they are subject. In July 2013, the Federal Reserve Bank (FRB) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. On April 8, 2014, the FDIC adopted as final its interim final rule, which is identical in substance to the final rules issued by the FRB in July 2013. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Bank and Company. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio of Total capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The phase-in period for the final rules began for Salisbury and the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule and should be fully phased-in by January 1, 2019. The Bank was classified, as of its most recent notification, as "well capitalized." The Bank's actual regulatory capital position and minimum capital requirements as defined "To Be Well Capitalized Under Prompt Corrective Action Provisions" and "For Capital Adequacy Purposes" are as follows: To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk-weighted assets) Salisbury $ 96,366 13.90 % $ 55,481 8.0 % n/a — Bank 87,507 12.62 55,481 8.0 $ 69,352 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,458 13.04 41,611 6.0 n/a — Bank 81,599 11.77 41,611 6.0 55,481 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 74,458 10.74 39,473 4.5 n/a — Bank 81,599 11.77 39,473 4.5 57,017 6.5 Tier 1 Capital (to average assets) Salisbury 90,458 10.31 35,088 4.0 n/a — Bank 81,599 9.30 35,088 4.0 43,859 5.0 December 31, 2014 Total Capital (to risk-weighted assets) Salisbury $ 89,783 14.27 % $ 50,334 8.0 % n/a — Bank 80,492 12.75 50,492 8.0 $ 63,116 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 84,171 13.38 25,167 4.0 n/a — Bank 74,881 11.86 25,246 4.0 37,869 6.0 Tier 1 Capital (to average assets) Salisbury 84,171 12.31 27,344 4.0 n/a — Bank 74,881 10.95 27,345 4.0 34,181 5.0 DIVIDENDS Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure. Preferred Stock In August 2011, Salisbury issued to the U.S. Secretary of the Treasury (the “Treasury”) $16 million of its Series B Preferred Stock under the Small Business Lending Fund (the “SBLF”) program. The SBLF program is a $30 billion fund established under the Small Business Jobs Act of 2010 to encourage lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion. The Preferred Stock qualifies as Tier 1 capital for regulatory purposes and ranks senior to the Common Stock. The Series B Preferred Stock pays noncumulative dividends. The dividend rate on the Series B Preferred Stock for the initial ten quarterly dividend periods, commencing with the period ended September 30, 2011 and ending with the period ended December 31, 2013, was determined each quarter based on the increase in the Bank’s Qualified Small Business Lending over a baseline amount. The dividend rate for the quarterly period ended September 30, 2015 was 1.0%. For the eleventh quarterly dividend payment through four and one-half years after its issuance, the dividend rate on the Series B Preferred Stock will be 1.0%. Commencing with the second quarter of 2016, after four and one-half years from its issuance, the dividend rate will be fixed at 9.0% per annum. The Series B Preferred Stock is non-voting, other than voting rights on matters that could adversely affect the Series B Preferred Stock. The Series B Preferred Stock is redeemable at any time at one hundred percent of the issue price plus any accrued and unpaid dividends.

PENSIONS AND OTHER BENEFITS

PENSIONS AND OTHER BENEFITS	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
PENSIONS AND OTHER BENEFITS	NOTE 8 – PENSION AND OTHER BENEFITS Salisbury had an insured noncontributory defined benefit retirement plan which was available to employees prior to December 31, 2012 based upon age and length of service. During 2012, Salisbury decided to complete its transition from providing retirement benefits under a defined benefit pension plan to a defined contribution 401(k) plan. Effective December 31, 2012, the pension plan was frozen, by amending the defined benefit pension plan to freeze retirement benefits at current levels and discontinue future benefit accruals. The plan was terminated effective October 15, 2014. The components of net periodic cost for Salisbury’s insured noncontributory defined benefit retirement plan were as follows: Three months ended Nine months ended Periods ended September 30, (in thousands) 2014 2014 Interest cost on benefit obligation $ 69 $ 207 Expected return on plan assets (74 ) (222 ) Net periodic benefit cost $ (5 ) $ (15 ) Salisbury’s 401(k) Plan expense was $166,000 and $159,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $516,000 and $495,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $14,000 and $13,000 respectively, for the three month periods ended September 30, 2015 and 2014, and $53,000 and $40,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Employee Stock Ownership Plan (ESOP) Salisbury offers an Employee Stock Ownership Plan (ESOP) to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which vests in full upon six years of qualified service. Salisbury’s ESOP expense was $96,000 and $47,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $287,000 and $141,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2014 and 2013, the Bank awarded seven (7) and six (6) Executives, respectively, with discretionary contributions to the Plan. Expenses related to this plan amounted to $34,000 and $15,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $95,000 and $44,000 for the nine months ended September 30, 2015 and 2014, respectively. Based on the Executive’s date of retirement, the vesting schedule ranges from 7.7% per year to 50% per year. There have been no awards granted in 2015. Restricted Stock and Options On September 28, 2015, 2,700 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. On February 17, 2015 and February 25, 2015, 1,350 and 5,400 shares of stock options were exercised, respectively, at $18.52 per share by two former Riverside Bank executives. On December 5, 2014, Salisbury granted a total of 6,000 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan to three (3) employees, including 1,000 shares to Richard J. Cantele, Jr., President and Chief Executive Officer, 3,000 shares to John Davies, New York Regional President and Chief Lending Officer, and 2,000 shares to Todd Rubino, Senior Vice President and Senior Commercial Loan Officer. Of these 6,000 shares, 2,250 immediately vested and the remaining 3,750 shares vest over a period of 36 months. On January 3, 2014, Salisbury granted a total of 3,000 shares of restricted stock, pursuant to its 2011 Long Term Incentive Plan, to two (2) employees, including 2,000 shares to Donald E. White, Chief Financial Officer, and 1,000 shares to Richard P. Kelly, Executive Vice President and Chief Credit Officer. The stock will be vested three years from the grant date. Expense was $52,000 and $43,000, respectively, for the three month periods ended September 30, 2015 and 2014, and $167,000 and $112,000, respectively, for the nine month periods ended September 30, 2015 and 2014. Unrecognized compensation cost relating to the awards as of September 30, 2015 and 2014 totaled $186,000 and $254,000, respectively. A total of 300 shares were forfeited in the nine months ended September 30, 2015, and 2,000 shares were forfeited in the nine months ended September 30, 2014.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income are as follows: (in thousands) September 30, 2015 December 31, 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,443 $ 2,108 Accumulated other comprehensive income, net $ 1,443 $ 2,108

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE ASSETS AND LIABILITIES	NOTE 10 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. ASC 820-10, “Fair Value Measurement-Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the nine months ended September 30, 2015. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. • Securities available-for-sale. Securities available-for-sale are recorded at fair value on a recurring basis. Level 1 securities include preferred stock. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. • Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell, as appropriate. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. • Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value September 30, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,565 $ — $ 7,565 U.S. Government agency notes — 500 — 500 Municipal bonds — 33,317 — 33,317 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,006 — 27,006 Collateralized mortgage obligations: U.S. Government agencies — 2,157 — 2,157 Non-agency — 5,332 — 5,332 SBA bonds — 3,350 — 3,350 CRA mutual funds — 769 — 769 Preferred stock 375 — — 375 Securities available-for-sale $ 375 $ 79,996 $ — $ 80,371 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 16,305 16,305 Other real estate owned — — 167 167 December 31, 2014 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,806 $ — $ 2,806 U.S. Government agency notes — 5,874 — 5,874 Municipal bonds — 40,352 — 40,352 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,709 — 27,709 Collateralized mortgage obligations: U.S. Government agencies — 2,679 — 2,679 Non-agency — 6,596 — 6,596 SBA bonds — 4,465 — 4,465 CRA mutual funds — 504 — 504 Preferred stock 327 — — 327 Securities available-for-sale $ 327 $ 90,985 $ — $ 91,312 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 10,463 $ 10,463 Other real estate owned — — 1,002 1,002 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2015 Financial Assets Cash and cash equivalents $ 81,695 $ 81,695 $ 81,695 $ — $ — Securities available-for-sale 80,371 80,371 375 79,996 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 573 584 — — 584 Loans receivable, net 687,719 695,147 — — 695,147 Accrued interest receivable 2,296 2,296 — — 2,296 Cash surrender value of life insurance 13,591 13,591 13,591 — — Financial Liabilities Demand (non-interest-bearing) $ 194,618 $ 194,618 $ — $ — $ 194,618 Demand (interest-bearing) 129,779 129,779 — — 129,779 Money market 184,409 184,409 — — 184,409 Savings and other 123,017 123,017 — — 123,017 Certificates of deposit 129,656 130,765 — — 130,765 Deposits 761,479 762,588 — — 762,588 Repurchase agreements 4,210 4,210 — — 4,210 FHLBB advances 26,928 28,988 — — 28,988 Note payable 380 409 — — 409 Capital lease liability 422 898 — — 898 Accrued interest payable 121 121 — — 121 December 31, 2014 Financial Assets Cash and cash equivalents $ 36,105 $ 36,105 $ 36,105 $ — $ — Securities available-for-sale 91,312 91,312 327 90,985 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 568 572 — — 572 Loans receivable, net 673,330 683,845 — — 683,845 Accrued interest receivable 2,334 2,334 — — 2,334 Cash surrender value of life insurance 13,314 13,314 13,314 — — Financial Liabilities Demand (non-interest-bearing) $ 161,386 $ 161,386 $ — $ — $ 161,386 Demand (interest-bearing) 117,169 117,169 — — 117,169 Money market 174,274 174,274 — — 174,274 Savings and other 121,387 121,387 — — 121,387 Certificates of deposit 141,210 142,261 — — 142,261 Deposits 715,426 716,477 — — 716,477 Repurchase agreements 4,163 4,163 — — 4,163 FHLBB advances 28,813 30,626 — — 30,626 Capital lease liability 424 929 — — 929 Accrued interest payable 166 166 — — 166 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Impact of New Accounting Pronouncements Issued	Impact of New Accounting Pronouncements Issued In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e. interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). Salisbury is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07: “Fair Value Measurement (Topic 820) - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The objective of this update is to address the diversity in practice related to how certain investments measured at net asset value with redemption dates in the future are categorized within the fair value hierarchy. The amendments in this update remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16: “Simplifying the Accounting for Measurement-Period Adjustments.” Under the ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings of changes in depreciation or amortization, or other income effects (if any) as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The ASU also requires that the acquirer present separately on the face of the income statement, or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early application is permitted for financial statements that have not been issued. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

SECURITIES (Tables)

SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized Gross un- Gross un- Fair value September 30, 2015 Available-for-sale U.S. Treasury notes $ 7,498 $ 67 $ — $ 7,565 U.S. Government agency notes 498 2 — 500 Municipal bonds 32,691 690 (64 ) 33,317 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 26,449 575 (18 ) 27,006 Collateralized mortgage obligations U.S. Government agencies 2,136 21 — 2,157 Non-agency 4,834 505 (7 ) 5,332 SBA bonds 3,297 53 — 3,350 CRA mutual funds 762 7 — 769 Preferred stock 20 355 — 375 Total securities available-for-sale $ 78,185 $ 2,275 $ (89 ) $ 80,371 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (in thousands) Amortized Gross un- Gross un- Fair value December 31, 2014 Available-for-sale U.S. Treasury notes $ 2,699 $ 107 $ — $ 2,806 U.S. Government agency notes 5,850 24 — 5,874 Municipal bonds 38,962 1,455 (65 ) 40,352 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 27,036 688 (15 ) 27,709 Collateralized mortgage obligations U.S. Government agencies 2,657 22 — 2,679 Non-agency 6,056 552 (12 ) 6,596 SBA bonds 4,336 129 — 4,465 CRA mutual funds 502 2 — 504 Preferred stock 20 307 — 327 Total securities available-for-sale $ 88,118 $ 3,286 $ (92 ) $ 91,312 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,515 $ — $ — $ 3,515 (1) Net of other-than-temporary impairment write-downs recognized in earnings.
Aggreggate fair value and gross unrealized loss of securities	(in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses September 30, 2015 Available-for-sale Municipal bonds $ 1,267 $ (64 ) $ — $ — $ 1,267 $ (64 ) Mortgage-backed securities 1,828 (18 ) — — 1,828 (18 ) Collateralized mortgage obligations: Non-agency 244 (7 ) — — 244 (7 ) Total temporarily impaired securities 3,339 (89 ) — — 3,339 (89 ) (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2014 Available-for-sale Municipal bonds $ 177 $ 1 $ 1,589 $ 64 $ 1,766 $ 65 Mortgage-backed securities 56 1 1,885 14 1,941 15 Collateralized mortgage obligations: Non-agency 441 7 164 5 605 12 Total temporarily impaired securities 674 9 3,638 83 4,312 92
Activity related to credit losses recognized into earnings	Nine months ended September 30 (in thousands) 2015 2014 Balance, beginning of period $ 1,128 $ 1,128 Credit component on debt securities in which OTTI was not previously recognized — — Balance, end of period $ 1,128 $ 1,128

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2015
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	September 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 260,912 $ 8,026 $ 268,938 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,192 6,228 12,420 5,556 8,735 14,291 Construction of residential 1-4 family 6,193 — 6,193 2,004 — 2,004 Home equity credit 33,880 — 33,880 34,627 — 34,627 Residential real estate 307,177 14,254 321,431 294,445 17,958 312,403 Commercial 110,955 91,467 202,422 98,498 97,899 196,397 Construction of commercial 12,987 4,862 17,849 18,602 9,045 27,647 Commercial real estate 123,942 96,329 220,271 117,100 106,944 224,044 Farm land 3,485 — 3,485 3,239 — 3,239 Vacant land 9,446 — 9,446 9,342 — 9,342 Real estate secured 444,050 110,583 554,633 424,126 124,902 549,028 Commercial and industrial 70,858 53,928 124,786 49,204 68,714 117,918 Municipal 6,947 — 6,947 6,083 — 6,083 Consumer 5,760 74 5,834 4,334 122 4,456 Loans receivable, gross 527,615 164,585 692,200 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,178 — 1,178 1,203 — 1,203 Allowance for loan losses (5,386 ) (273 ) (5,659 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 523,407 $ 164,312 $ 687,719 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 573 $ — $ 573 $ 568 $ — $ 568
Composition of loans receivable by risk rating grade	Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 246,872 $ 7,053 $ 6,895 $ 92 $ — $ 260,912 Residential 5+ multifamily 4,180 1,048 964 — — 6,192 Construction of residential 1-4 family 6,193 — — — — 6,193 Home equity credit 32,331 469 1,080 — — 33,880 Residential real estate 289,576 8,570 8,939 92 — 307,177 Commercial 99,165 4,984 6,806 — — 110,955 Construction of commercial 12,416 — 571 — — 12,987 Commercial real estate 111,581 4,984 7,377 — — 123,942 Farm land 2,449 — 1,036 — — 3,485 Vacant land 6,446 71 2,929 — — 9,446 Real estate secured 410,052 13,625 20,281 92 — 444,050 Commercial and industrial 69,007 1,230 621 — — 70,858 Municipal 6,947 — — — — 6,947 Consumer 5,742 11 7 — — 5,760 Loans receivable, gross $ 491,748 $ 14,866 $ 20,909 $ 92 $ — $ 527,615 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2015 Residential 1-4 family $ 7,168 $ 91 $ 767 $ — $ — $ 8,026 Residential 5+ multifamily 6,228 — — — — 6,228 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 13,396 91 767 — — 14,254 Commercial 83,657 3,052 4,758 — — 91,467 Construction of commercial 4,590 — 272 — — 4,862 Commercial real estate 88,247 3,052 5,030 — — 96,329 Farm land — — — — — — Vacant land — — — — — — Real estate secured 101,643 3,143 5,797 — — 110,583 Commercial and industrial 52,051 1,192 603 82 — 53,928 Municipal — — — — — — Consumer 50 7 — 17 — 74 Loans receivable, gross $ 153,744 $ 4,342 $ 6,400 $ 99 $ — $ 164,585 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 232,628 $ 12,350 $ 7,187 $ 93 $ — $ 252,258 Residential 5+ multifamily 3,420 1,072 1,064 — — 5,556 Construction of residential 1-4 family 2,004 — — — — 2,004 Home equity credit 32,639 807 1,181 — — 34,627 Residential real estate 270,691 14,229 9,432 93 — 294,445 Commercial 79,975 10,728 7,795 — — 98,498 Construction of commercial 18,024 — 578 — — 18,602 Commercial real estate 97,999 10,728 8,373 — — 117,100 Farm land 772 1,361 1,106 — — 3,239 Vacant land 6,039 140 3,163 — — 9,342 Real estate secured 375,501 26,458 22,074 93 — 424,126 Commercial and industrial 44,903 3,527 774 — — 49,204 Municipal 6,083 — — — — 6,083 Consumer 4,271 53 10 — — 4,334 Loans receivable, gross $ 430,758 $ 30,038 $ 22,858 $ 93 $ — $ 483,747 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ 9,223 Residential 5+ multifamily 8,735 — — — — 8,735 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 17,396 — 562 — — 17,958 Commercial 89,820 3,830 3,723 526 — 97,899 Construction of commercial 9,045 — — — — 9,045 Commercial real estate 98,865 3,830 3,723 526 — 106,944 Farm land — — — — — — Vacant land — — — — — — Real estate secured 116,261 3,830 4,285 526 — 124,902 Commercial and industrial 66,098 1,675 941 — — 68,714 Municipal — — — — — — Consumer 96 7 19 — — 122 Loans receivable, gross $ 182,455 $ 5,512 $ 5,245 $ 526 $ — $ 193,738
Composition of loans receivable by delinquency status	Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over September 30, 2015 Residential 1-4 family $ 252,773 $ 3,454 $ 332 $ 426 $ 93 $ 3,834 $ 4,685 $ — $ 5,770 Residential 5+ multifamily 6,032 71 — — — 89 89 — 89 Construction of residential 1-4 family 6,193 — — — — — — — — Home equity credit 32,733 424 291 — 422 10 723 — 494 Residential real estate 297,731 3,949 623 426 515 3,933 5,497 — 6,353 Commercial 106,638 1,708 1,569 240 119 681 2,609 — 2,423 Construction of commercial 12,539 — — 448 — — 448 — — Commercial real estate 119,177 1,708 1,569 688 119 681 3,057 — 2,423 Farm land 2,762 — — — — 723 723 — 1,036 Vacant land 5,504 1,119 — — — 2,823 2,823 — 2,857 Real estate secured 425,174 6,776 2,192 1,114 634 8,160 12,100 — 12,669 Commercial and industrial 69,459 840 139 397 5 18 559 5 419 Municipal 6,947 — — — — — — — — Consumer 5,653 92 14 1 — — 15 — — Loans receivable, gross $ 507,233 $ 7,708 $ 2,345 $ 1,512 $ 639 $ 8,178 $ 12,674 $ 5 $ 13,088 Acquired Loans September 30, 2015 Residential 1-4 family $ 6,977 $ 190 $ — $ — $ 269 $ 590 $ 859 $ 91 $ 767 Residential 5+ multifamily 6,228 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 13,205 190 — — 269 590 859 91 767 Commercial 86,852 1,982 — 461 102 2,070 2,633 — 2,172 Construction of commercial 4,590 — — — — 272 272 — 272 Commercial real estate 91,442 1,982 — 461 102 2,342 2,905 — 2,444 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 104,647 2,172 — 461 371 2,932 3,764 91 3,211 Commercial and industrial 53,116 561 191 20 40 — 251 — 40 Municipal — — — — — — — — — Consumer 70 — 4 — — — 4 — — Loans receivable, gross $ 157,833 $ 2,733 $ 195 $ 481 $ 411 $ 2,932 $ 4,019 $ 91 $ 3,251 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2014 Residential 1-4 family $ 241,567 $ 7,299 $ 1,250 $ 555 $ 976 $ 611 $ 3,392 $ — $ 2,445 Residential 5+ multifamily 5,467 — — — 89 — 89 — 89 Construction of residential 1-4 family 2,004 — — — — — — — — Home equity credit 33,488 387 122 528 39 63 752 — 348 Residential real estate 282,526 7,686 1,372 1,083 1,104 674 4,233 — 2,882 Commercial 94,598 2,079 602 — — 1,219 1,821 — 1,219 Construction of commercial 18,602 — — — — — — — — Commercial real estate 113,200 2,079 602 — — 1,219 1,821 — 1,219 Farm land 2,119 — 13 723 — 384 1,120 — 384 Vacant land 6,422 51 7 — 39 2,823 2,869 — 2,862 Real estate secured 404,267 9,816 1,994 1,806 1,143 5,100 10,043 — 7,347 Commercial and industrial 48,478 582 91 17 36 — 144 17 33 Municipal 6,083 — — — — — — — — Consumer 4,274 47 8 5 — — 13 — — Loans receivable, gross $ 463,102 $ 10,445 $ 2,093 $ 1,828 $ 1,179 $ 5,100 $ 10,200 $ 17 $ 7,380 Acquired Loans December 31, 2014 Residential 1-4 family $ 8,661 $ — $ — $ — $ — $ 562 $ 562 $ — $ 562 Residential 5+ multifamily 8,735 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity credit — — — — — — — — — Residential real estate 17,396 — — — — 562 562 — 562 Commercial 95,695 1,109 167 — 285 643 1,095 — 1,931 Construction of commercial 9,045 — — — — — — — — Commercial real estate 104,740 1,109 167 — 285 643 1,095 — 1,931 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 122,136 1,109 167 — 285 1,205 1,657 — 2,493 Commercial and industrial 67,665 740 89 220 — — 309 — — Municipal — — — — — — — — — Consumer 117 5 — — — — — — — Loans receivable, gross $ 189,918 $ 1,854 $ 256 $ 220 $ 285 $ 1,205 $ 1,966 $ — $ 2,493
Troubled debt restructurings	Business Activities Loans Nine months ended September 30, 2015 September 30, 2014 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 2 $ 923 $ 923 2 $ 237 $ 237 Commercial real estate 2 478 478 3 846 846 Construction of commercial — — — 1 131 131 Home equity credit 1 35 35 2 72 72 Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286 Rate reduction and term extension 2 $ 478 $ 478 — — — Interest only and term extension — — — 1 48 48 Term extension and amortization — — — 2 338 338 Interest only — — — 2 54 54 Debt consolidation, rate reduction, term extension — — — 1 399 399 Debt consolidation and term extension — — — 2 447 447 Note bifurcation 1 48 48 — — — Term extension 2 910 910 — — — Troubled debt restructurings 5 $ 1,436 $ 1,436 8 $ 1,286 $ 1,286
Changes in allowance for loan losses	Business Activities Loans Acquired Loans (in thousands) Three months ended September 30, 2015 Three months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,147 $ 632 $ (92 ) $ 111 $ 2,798 $ 15 $ 55 $ — $ — $ 70 Commercial 1,339 (102 ) (10 ) — 1,227 77 81 — 5 163 Land 182 168 (72 ) — 278 — — — — — Real estate 3,668 698 (174 ) 111 4,303 92 136 — 5 233 Commercial and industrial 691 (197 ) — 4 498 52 (22 ) — 10 40 Municipal 64 (16 ) — — 48 — — — — — Consumer 123 1 (17 ) 6 113 — — — — — Unallocated 369 55 — — 424 — — — — — Totals $ 4,915 $ 541 $ (191 ) $ 121 $ 5,386 $ 144 $ 114 $ — $ 15 $ 273 Business Activities Loans Acquired Loans (in thousands) Nine months ended September 30, 2015 Nine months ended September 30, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 952 $ (573 ) $ 113 $ 2,798 $ — $ 70 $ — $ — $ 70 Commercial 1,697 (256 ) (214 ) — 1,227 7 151 — 5 163 Land 164 186 (72 ) — 278 — — — — — Real estate 4,167 882 (859 ) 113 4,303 7 221 — 5 233 Commercial and industrial 583 (484 ) (56 ) 455 498 14 — — 26 40 Municipal 61 (13 ) — — 48 — — — — — Consumer 117 30 (47 ) 13 113 — — — — — Unallocated 409 15 — — 424 — — — — — Totals $ 5,337 $ 430 $ (962 ) $ 581 $ 5,386 $ 21 $ 221 $ — $ 31 $ 273 (in thousands) Three months ended September 30, 2014 Nine months ended September 30, 2014 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 1,974 $ 357 $ (46 ) $ 16 $ 2,301 $ 1,938 $ 494 $ (149 ) $ 18 $ 2,301 Commercial 1,622 89 — — 1,711 1,385 378 (52 ) — 1,711 Land 184 (17 ) (6 ) — 161 226 33 (98 ) — 161 Real estate 3,780 429 (52 ) 16 4,173 3,549 905 (299 ) 18 4,173 Commercial and industrial 584 (68 ) — 1 517 561 (57 ) (1 ) 14 517 Municipal 44 18 — — 62 43 19 — — 62 Consumer 49 11 (3 ) 2 59 105 (46 ) (18 ) 18 59 Unallocated 645 (72 ) — — 573 425 148 — — 573 Totals $ 5,102 $ 318 $ (55 ) $ 19 $ 5,384 $ 4,683 $ 969 $ (318 ) $ 50 $ 5,384
Composition of loans receivable and allowance for loan losses	Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 252,454 $ 1,603 $ 8,458 $ 724 $ 260,912 $ 2,327 Residential 5+ multifamily 4,315 37 1,877 — 6,192 37 Construction of residential 1-4 family 6,193 52 — — 6,193 52 Home equity credit 33,230 345 650 37 33,880 382 Residential real estate 296,192 2,037 10,985 761 307,177 2,798 Commercial 106,573 937 4,382 170 110,955 1,107 Construction of commercial 12,864 120 123 — 12,987 120 Commercial real estate 119,437 1,057 4,505 170 123,942 1,227 Farm land 2,449 19 1,036 1 3,485 20 Vacant land 6,364 234 3,082 24 9,446 258 Real estate secured 424,442 3,347 19,608 956 444,050 4,303 Commercial and industrial 70,372 494 486 4 70,858 498 Municipal 6,947 48 — — 6,947 48 Consumer 5,760 113 — — 5,760 113 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance September 30, 2015 Residential 1-4 family $ 7,259 $ — $ 767 $ 70 $ — $ — $ 8,026 $ 70 Residential 5+ multifamily 6,228 — — — — — 6,228 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 13,487 — 767 70 — — 14,254 70 Commercial 83,257 13 2,920 145 5,290 2 91,467 160 Construction of commercial 4,590 3 272 — — — 4,862 3 Commercial real estate 87,847 16 3,192 145 5,290 2 96,329 163 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 101,334 16 3,959 215 5,290 2 110,583 233 Commercial and industrial 52,587 40 40 — 1,301 — 53,928 40 Municipal — — — — — — — — Consumer 57 — — — 17 — 74 — Unallocated allowance — — — — — — — — Totals $ 153,978 $ 56 $ 3,999 $ 215 $ 6,608 $ 2 $ 164,585 $ 273 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 245,997 $ 1,316 $ 6,261 $ 549 $ 252,258 $ 1,865 Residential 5+ multifamily 4,536 66 1,020 3 5,556 69 Construction of residential 1-4 family 2,004 13 — — 2,004 13 Home equity credit 34,231 350 396 9 34,627 359 Residential real estate 286,768 1,745 7,677 561 294,445 2,306 Commercial 93,784 1,018 4,714 486 98,498 1,504 Construction of commercial 18,474 193 128 — 18,602 193 Commercial real estate 112,258 1,211 4,842 486 117,100 1,697 Farm land 2,855 59 384 — 3,239 59 Vacant land 6,245 67 3,097 38 9,342 105 Real estate secured 408,126 3,082 16,000 1,085 424,126 4,167 Commercial and industrial 48,635 532 569 51 49,204 583 Municipal 6,083 61 — — 6,083 61 Consumer 4,334 117 — — 4,334 117 Unallocated allowance — 409 — — — 409 Totals $ 467,178 $ 4,201 $ 16,569 $ 1,136 $ 483,747 $ 5,337 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2014 Residential 1-4 family $ 8,661 $ — $ 562 $ — $ — $ — $ 9,223 $ — Residential 5+ multifamily 8,735 — — — — — 8,735 — Construction of residential 1-4 family — — — — — — — — Home equity credit — — — — — — — — Residential real estate 17,396 — 562 — — — 17,958 — Commercial 89,820 — 2,502 — 5,577 — 97,899 — Construction of commercial 9,045 7 — — — — 9,045 7 Commercial real estate 98,865 7 2,502 — 5,577 — 106,944 7 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 116,261 7 3,064 — 5,577 — 124,902 7 Commercial and industrial 66,874 14 — — 1,840 — 68,714 14 Municipal — — — — — — — — Consumer 103 — — — 19 — 122 — Unallocated allowance — — — — — — — — Totals $ 183,238 $ 21 $ 3,064 $ — $ 7,436 $ — $ 193,738 $ 21
Credit quality segments of loans receivable and allowance for loan losses	Business Activities Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 503,052 $ 3,935 $ — $ — $ 503,052 $ 3,935 Potential problem loans 4,469 67 — — 4,469 67 Impaired loans — — 20,094 960 20,094 960 Unallocated allowance — 424 — — — 424 Totals $ 507,521 $ 4,426 $ 20,094 $ 960 $ 527,615 $ 5,386 Acquired Loans September 30, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 158,144 $ 56 $ — $ — $ 158,144 $ 56 Potential problem loans 2,442 2 — — 2,442 2 Impaired loans — — 3,999 215 3,999 215 Unallocated allowance — — — — — — Totals $ 160,586 $ 58 $ 3,999 $ 215 $ 164,585 $ 273 Business Activities Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 457,744 $ 3,283 $ — $ — $ 457,744 $ 3,283 Potential problem loans 9,423 509 11 — 9,434 509 Impaired loans — — 16,569 1,136 16,569 1,136 Unallocated allowance — 409 — — — 409 Totals $ 467,167 $ 4,201 $ 16,580 $ 1,136 $ 483,747 $ 5,337 Acquired Loans December 31, 2014 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 187,966 $ 21 $ — $ — $ 187,966 $ 21 Potential problem loans 2,708 — — — 2,708 — Impaired loans — — 3,064 — 3,064 — Unallocated allowance — — — — — — Totals $ 190,674 $ 21 $ 3,064 $ — $ 193,738 $ 21
Certain data with respect to loans individually evaluated for impairment	Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 7,170 $ 7,703 $ 6,213 $ 724 $ 109 $ 3,165 $ 3,314 $ 3,043 $ 82 Home equity credit 543 557 176 37 6 107 122 611 2 Residential real estate 7,713 8,260 6,389 761 115 3,272 3,436 3,654 84 Commercial 3,864 4,309 2,629 170 113 518 548 2,130 12 Construction of commercial — — — — — 123 129 127 6 Farm land 11 13 445 1 — 1,025 1,100 270 15 Vacant land 2,870 3,789 3,058 24 2 212 244 5 7 Real estate secured 14,458 16,371 12,521 956 230 5,150 5,457 6,186 124 Commercial and industrial 247 255 120 4 8 239 272 464 7 Consumer — — — — — — — — — Totals $ 14,705 $ 16,626 $ 12,641 $ 960 $ 238 $ 5,389 $ 5,729 $ 6,650 $ 131 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized September 30, 2015 Residential 1-4 family $ 590 $ 716 $ 176 $ 70 $ — $ 177 $ 177 $ 436 $ 4 Home equity credit — — — — — — — — — Residential real estate 590 716 176 70 — 177 177 436 4 Commercial 2,146 2,897 557 145 61 774 1,091 2,097 10 Construction of commercial — — — — — 272 278 138 16 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 2,736 3,613 733 215 61 1,223 1,546 2,671 30 Commercial and industrial 40 70 4 — 1 — — — — Consumer — — — — — — — — — Totals $ 2,776 $ 3,683 $ 737 $ 215 $ 62 $ 1,223 $ 1,546 $ 2,671 $ 30 Business Activities Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity credit 9 24 91 9 — 387 405 441 4 Residential real estate 5,017 5,181 4,638 561 128 2,660 2,800 3,144 61 Commercial 3,383 3,563 3,262 486 108 1,331 1,520 1,468 54 Construction of commercial — — — — — 128 134 123 — Farm land — — — — — 384 384 384 — Vacant land 3,097 3,996 3,090 38 12 — — — — Real estate secured 11,497 12,740 10,990 1,085 248 4,503 4,838 5,119 115 Commercial and industrial 102 161 106 51 2 467 469 516 30 Consumer — — — — — — — 19 — Totals $ 11,599 $ 12,901 $ 11,096 $ 1,136 $ 250 $ 4,970 $ 5,307 $ 5,654 $ 145 Acquired Loans Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2014 Residential 1-4 family $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity credit — — — — — — — — — Residential real estate — — — — — 562 716 562 3 Commercial — — — — — 2,502 4,014 2,502 12 Construction of commercial — — — — — — — — — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured — — — — — 3,064 4,730 3,064 15 Commercial and industrial — — — — — — 4 — — Consumer — — — — — — — — — Totals $ — $ — $ — $ — $ — $ 3,064 $ 4,734 $ 3,064 $ 15
Activity in the accretable yield for acquired loan portfolio falling under ASC-310-30	Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Balance at beginning of period $ 1,604 $ — $ 1,242 $ — Acquisitions — — — — Sales — — — — Reclassification from nonaccretable difference for loans with improved cash flows 379 — 1,157 — Change in cash flows that do not affect nonaccretable difference — — — — Accretion (297 ) — (713 ) — Balance at end of period $ 1,686 $ — $ 1,686 $ —

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
	Sep. 30, 2015
Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	(in thousands) September 30, 2015 December 31, 2014 Residential mortgage loans serviced for others $ 132,201 $ 138,106 Fair value of mortgage servicing rights 1,429 1,568
Changes in mortgage servicing rights	Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Mortgage Servicing Rights Balance, beginning of period $ 599 $ 838 $ 694 $ 980 Originated 22 (17 ) 124 5 Amortization (1) (85 ) (56 ) (282 ) (220 ) Balance, end of period 536 765 536 765 Valuation Allowance Balance, beginning of period (2 ) (1 ) 1 (15 ) Decrease (increase) in impairment reserve (1) 1 1 (2 ) 15 Balance, end of period (1 ) — (1 ) — Loan servicing rights, net $ 535 $ 765 $ 535 $ 765 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Guarantees [Abstract]
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	(in thousands) September 30, 2015 December 31, 2014 Securities available-for-sale (at fair value) $ 68,569 $ 69,055 Loans receivable 159,436 157,581 Total pledged assets $ 228,005 $ 226,636

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computation of earnings per share	Three months Nine months Periods ended September 30, (in thousands) 2015 2014 2015 2014 Net income $ 1,985 $ 768 $ 6,290 $ 2,285 Less: Preferred stock dividends declared (40 ) (40 ) (120 ) (126 ) Net income available to common shareholders 1,945 728 6,170 2,159 Less: Undistributed earnings allocated to participating securities (17 ) (8 ) (54 ) (26 ) Net income allocated to common stock $ 1,928 $ 720 $ 6,116 $ 2,133 Common shares issued 2,731 1,713 2,728 1,713 Less: Unvested restricted stock awards (24 ) (20 ) (24 ) (21 ) Common shares outstanding used to calculate basic earnings per common share 2,707 1,693 2,704 1,692 Add: Dilutive effect of stock options 17 — 17 — Common shares outstanding used to calculate diluted earnings per common share 2,724 1,693 2,721 1,692 Earnings per common share (basic) $ 0.71 $ 0.43 $ 2.26 $ 1.26 Earnings per common share (diluted) $ 0.71 $ 0.43 $ 2.25 $ 1.26

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Actual regulatory capital position and minimum capital requirements	To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk-weighted assets) Salisbury $ 96,366 13.90 % $ 55,481 8.0 % n/a — Bank 87,507 12.62 55,481 8.0 $ 69,352 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,458 13.04 41,611 6.0 n/a — Bank 81,599 11.77 41,611 6.0 55,481 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 74,458 10.74 39,473 4.5 n/a — Bank 81,599 11.77 39,473 4.5 57,017 6.5 Tier 1 Capital (to average assets) Salisbury 90,458 10.31 35,088 4.0 n/a — Bank 81,599 9.30 35,088 4.0 43,859 5.0 December 31, 2014 Total Capital (to risk-weighted assets) Salisbury $ 89,783 14.27 % $ 50,334 8.0 % n/a — Bank 80,492 12.75 50,492 8.0 $ 63,116 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 84,171 13.38 25,167 4.0 n/a — Bank 74,881 11.86 25,246 4.0 37,869 6.0 Tier 1 Capital (to average assets) Salisbury 84,171 12.31 27,344 4.0 n/a — Bank 74,881 10.95 27,345 4.0 34,181 5.0

PENSIONS AND OTHER BENEFITS (Ta

PENSIONS AND OTHER BENEFITS (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Components of net periodic cost	Three months ended Nine months ended Periods ended September 30, (in thousands) 2014 2014 Interest cost on benefit obligation $ 69 $ 207 Expected return on plan assets (74 ) (222 ) Net periodic benefit cost $ (5 ) $ (15 )

ACCUMULATED OTHER COMPREHENSI26

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Components of accumulated other comprehensive income	(in thousands) September 30, 2015 December 31, 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,443 $ 2,108 Accumulated other comprehensive income, net $ 1,443 $ 2,108

FAIR VALUE OF ASSETS AND LIAB27

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets measured at fair value	Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value September 30, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,565 $ — $ 7,565 U.S. Government agency notes — 500 — 500 Municipal bonds — 33,317 — 33,317 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,006 — 27,006 Collateralized mortgage obligations: U.S. Government agencies — 2,157 — 2,157 Non-agency — 5,332 — 5,332 SBA bonds — 3,350 — 3,350 CRA mutual funds — 769 — 769 Preferred stock 375 — — 375 Securities available-for-sale $ 375 $ 79,996 $ — $ 80,371 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 16,305 16,305 Other real estate owned — — 167 167 December 31, 2014 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,806 $ — $ 2,806 U.S. Government agency notes — 5,874 — 5,874 Municipal bonds — 40,352 — 40,352 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 27,709 — 27,709 Collateralized mortgage obligations: U.S. Government agencies — 2,679 — 2,679 Non-agency — 6,596 — 6,596 SBA bonds — 4,465 — 4,465 CRA mutual funds — 504 — 504 Preferred stock 327 — — 327 Securities available-for-sale $ 327 $ 90,985 $ — $ 91,312 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 10,463 $ 10,463 Other real estate owned — — 1,002 1,002
Carrying value and estimated fair values of financial instruments	(in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2015 Financial Assets Cash and cash equivalents $ 81,695 $ 81,695 $ 81,695 $ — $ — Securities available-for-sale 80,371 80,371 375 79,996 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 573 584 — — 584 Loans receivable, net 687,719 695,147 — — 695,147 Accrued interest receivable 2,296 2,296 — — 2,296 Cash surrender value of life insurance 13,591 13,591 13,591 — — Financial Liabilities Demand (non-interest-bearing) $ 194,618 $ 194,618 $ — $ — $ 194,618 Demand (interest-bearing) 129,779 129,779 — — 129,779 Money market 184,409 184,409 — — 184,409 Savings and other 123,017 123,017 — — 123,017 Certificates of deposit 129,656 130,765 — — 130,765 Deposits 761,479 762,588 — — 762,588 Repurchase agreements 4,210 4,210 — — 4,210 FHLBB advances 26,928 28,988 — — 28,988 Note payable 380 409 — — 409 Capital lease liability 422 898 — — 898 Accrued interest payable 121 121 — — 121 December 31, 2014 Financial Assets Cash and cash equivalents $ 36,105 $ 36,105 $ 36,105 $ — $ — Securities available-for-sale 91,312 91,312 327 90,985 — Federal Home Loan Bank stock 3,515 3,515 — 3,515 — Loans held-for-sale 568 572 — — 572 Loans receivable, net 673,330 683,845 — — 683,845 Accrued interest receivable 2,334 2,334 — — 2,334 Cash surrender value of life insurance 13,314 13,314 13,314 — — Financial Liabilities Demand (non-interest-bearing) $ 161,386 $ 161,386 $ — $ — $ 161,386 Demand (interest-bearing) 117,169 117,169 — — 117,169 Money market 174,274 174,274 — — 174,274 Savings and other 121,387 121,387 — — 121,387 Certificates of deposit 141,210 142,261 — — 142,261 Deposits 715,426 716,477 — — 716,477 Repurchase agreements 4,163 4,163 — — 4,163 FHLBB advances 28,813 30,626 — — 30,626 Capital lease liability 424 929 — — 929 Accrued interest payable 166 166 — — 166

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortized cost (1)
Available-for-sale
U.S. Treasury notes	$ 7,498	$ 2,699
U.S. Government Agency notes	498	5,850
Municipal bonds	32,691	38,962
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	26,449	27,036
Collateralized mortgage obligations, U.S. Government Agencies	2,136	2,657
Collateralized mortgage obligations, Non-agency	4,834	6,056
SBA bonds	3,297	4,336
CRA mutual funds	762	502
Preferred stock	20	20
Total securities available-for-sale	78,185	88,118
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,515	3,515
Gross unrealized gains
Available-for-sale
U.S. Treasury notes	67	107
U.S. Government Agency notes	2	24
Municipal bonds	690	1,455
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	575	688
Collateralized mortgage obligations, U.S. Government Agencies	21	22
Collateralized mortgage obligations, Non-agency	505	552
SBA bonds	53	129
CRA mutual funds	7	2
Preferred stock	355	307
Total securities available-for-sale	$ 2,275	$ 3,286
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
U.S. Treasury notes
U.S. Government Agency notes
Municipal bonds	$ (64)	$ (65)
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	$ (18)	$ (15)
Collateralized mortgage obligations, U.S. Government Agencies
Collateralized mortgage obligations, Non-agency	$ (7)	$ (12)
SBA bonds
CRA mutual funds
Preferred stock
Total securities available-for-sale	$ (89)	$ (92)
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Treasury notes	$ 7,565	$ 2,806
U.S. Government Agency notes	500	5,874
Municipal bonds	33,317	40,352
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	27,006	27,709
Collateralized mortgage obligations, U.S. Government Agencies	2,157	2,679
Collateralized mortgage obligations, Non-agency	5,332	6,596
SBA bonds	3,350	4,465
CRA mutual funds	769	504
Preferred stock	375	327
Total securities available-for-sale	80,371	91,312
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,515	$ 3,515

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Less Than 12 Months, Fair value
Available-for-sale
Municipal bonds	$ 1,267	$ 177
Mortgage-backed securities	1,828	56
Collateralized mortgage obligations, Non-agency	244	441
Total temporarily impaired securities	3,339	674
Less Than 12 Months, Unrealized losses
Available-for-sale
Municipal bonds	(64)	1
Mortgage-backed securities	(18)	1
Collateralized mortgage obligations, Non-agency	(7)	7
Total temporarily impaired securities	$ (89)	9
12 Months or Longer, Fair value
Available-for-sale
Municipal bonds		1,589
Mortgage-backed securities		1,885
Collateralized mortgage obligations, Non-agency		164
Total temporarily impaired securities		3,638
12 Months or Longer, Unrealized losses
Available-for-sale
Municipal bonds		64
Mortgage-backed securities		14
Collateralized mortgage obligations, Non-agency		5
Total temporarily impaired securities		83
Total, Fair value
Available-for-sale
Municipal bonds	$ 1,267	1,766
Mortgage-backed securities	1,828	1,941
Collateralized mortgage obligations, Non-agency	244	605
Total temporarily impaired securities	3,339	4,312
Total, Unrealized losses
Available-for-sale
Municipal bonds	(64)	65
Mortgage-backed securities	(18)	15
Collateralized mortgage obligations, Non-agency	(7)	12
Total temporarily impaired securities	$ (89)	$ 92

SECURITIES - Activity related t

SECURITIES - Activity related to credit losses recognized into earnings (Details) - Activity related to credit losses recognized into earnings - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Balance, beginning of period	$ 1,128	$ 1,128
Credit component on debt securities in which OTTI was not previously recognized
Balance, end of period	$ 1,128	$ 1,128

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2009
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities sold	$ 3,700
Realized gains on sales of securities sold	$ 153
Recognized losses for deterioration in credit quality			$ 1,128

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activites Loans
Residential 1-4 family	$ 260,912	$ 252,258
Residential 5+ multifamily	6,192	5,556
Construction of residential 1-4 family	6,193	2,004
Home equity credit	33,880	34,627
Residential real estate	307,177	294,445
Commercial	110,955	98,498
Construction of commercial	12,987	18,602
Commercial real estate	123,942	117,100
Farm land	3,485	3,239
Vacant land	9,446	9,342
Real estate secured	444,050	424,126
Commercial and industrial	70,858	49,204
Municipal	6,947	6,083
Consumer	5,760	4,334
Loans receivable, gross	527,615	483,747
Deferred loan origination fees and costs, net	1,178	1,203
Allowance for loan losses	(5,386)	(5,337)
Loans receivable, net	523,407	479,613
Loans held-for-sale
Residential 1-4 family	573	568
Acquired Loans
Residential 1-4 family	8,026	9,223
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 14,254	$ 17,958
Commercial	91,467	97,899
Construction of commercial	4,862	9,045
Commercial real estate	$ 96,329	$ 106,944
Farm land
Vacant land
Real estate secured	$ 110,583	$ 124,902
Commercial and industrial	$ 53,928	$ 68,714
Municipal
Consumer	$ 74	$ 122
Loans receivable, gross	$ 164,585	$ 193,738
Deferred loan origination fees and costs, net
Allowance for loan losses	$ (273)	$ (21)
Loans receivable, net	$ 164,312	$ 193,717
Loans held-for-sale
Residential 1-4 family
Total
Residential 1-4 family	$ 268,938	$ 261,481
Residential 5+ multifamily	12,420	14,291
Construction of residential 1-4 family	6,193	2,004
Home equity credit	33,880	34,627
Residential real estate	321,431	312,403
Commercial	202,422	196,397
Construction of commercial	17,849	27,647
Commercial real estate	220,271	224,044
Farm land	3,485	3,239
Vacant land	9,446	9,342
Real estate secured	554,633	549,028
Commercial and industrial	124,786	117,918
Municipal	6,947	6,083
Consumer	5,834	4,456
Loans receivable, gross	692,200	677,485
Deferred loan origination fees and costs, net	1,178	1,203
Allowance for loan losses	(5,659)	(5,358)
Loans receivable, net	687,719	673,330
Loans held-for-sale
Residential 1-4 family	$ 573	$ 568

LOANS - Composition of loans 33

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activities Loans - Pass
Residential 1-4 family	$ 246,872	$ 232,628
Residential 5+ multifamily	4,180	3,420
Construction of residential 1-4 family	6,193	2,004
Home equity credit	32,331	32,639
Residential real estate	289,576	270,691
Commercial	99,165	79,975
Construction of commercial	12,416	18,024
Commercial real estate	111,581	97,999
Farm land	2,449	772
Vacant land	6,446	6,039
Real estate secured	410,052	375,501
Commercial and industrial	69,007	44,903
Municipal	6,947	6,083
Consumer	5,742	4,271
Loans receivable, gross	491,748	430,758
Business Activities Loans - Special mention
Residential 1-4 family	7,053	12,350
Residential 5+ multifamily	$ 1,048	$ 1,072
Construction of residential 1-4 family
Home equity credit	$ 469	$ 807
Residential real estate	8,570	14,229
Commercial	$ 4,984	$ 10,728
Construction of commercial
Commercial real estate	$ 4,984	$ 10,728
Farm land		1,361
Vacant land	$ 71	140
Real estate secured	13,625	26,458
Commercial and industrial	$ 1,230	$ 3,527
Municipal
Consumer	$ 11	$ 53
Loans receivable, gross	14,866	30,038
Business Activities Loans - Substandard
Residential 1-4 family	6,895	7,187
Residential 5+ multifamily	$ 964	$ 1,064
Construction of residential 1-4 family
Home equity credit	$ 1,080	$ 1,181
Residential real estate	8,939	9,432
Commercial	6,806	7,795
Construction of commercial	571	578
Commercial real estate	7,377	8,373
Farm land	1,036	1,106
Vacant land	2,929	3,163
Real estate secured	20,281	22,074
Commercial and industrial	$ 621	$ 774
Municipal
Consumer	$ 7	$ 10
Loans receivable, gross	20,909	22,858
Business Activities Loans - Doubtful
Residential 1-4 family	$ 92	$ 93
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 92	$ 93
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 92	$ 93
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 92	$ 93
Business Activities Loans - Loss
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured
Commercial and industrial
Municipal
Consumer
Loans receivable, gross
Business Activities Loans - Total
Residential 1-4 family	$ 260,912	$ 252,258
Residential 5+ multifamily	6,192	5,556
Construction of residential 1-4 family	6,193	2,004
Home equity credit	33,880	34,627
Residential real estate	307,177	294,445
Commercial	110,955	98,498
Construction of commercial	12,987	18,602
Commercial real estate	123,942	117,100
Farm land	3,485	3,239
Vacant land	9,446	9,342
Real estate secured	444,050	424,126
Commercial and industrial	70,858	49,204
Municipal	6,947	6,083
Consumer	5,760	4,334
Loans receivable, gross	527,615	483,747
Acquired Loans - Pass
Residential 1-4 family	7,168	8,661
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 13,396	$ 17,396
Commercial	83,657	89,820
Construction of commercial	4,590	9,045
Commercial real estate	$ 88,247	$ 98,865
Farm land
Vacant land
Real estate secured	$ 101,643	$ 116,261
Commercial and industrial	$ 52,051	$ 66,098
Municipal
Consumer	$ 50	$ 96
Loans receivable, gross	153,744	$ 182,455
Acquired Loans - Special Mention
Residential 1-4 family	$ 91
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 91
Commercial	$ 3,052	$ 3,830
Construction of commercial
Commercial real estate	$ 3,052	$ 3,830
Farm land
Vacant land
Real estate secured	$ 3,143	$ 3,830
Commercial and industrial	$ 1,192	$ 1,675
Municipal
Consumer	$ 7	$ 7
Loans receivable, gross	4,342	5,512
Acquired Loans - Substandard
Residential 1-4 family	$ 767	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 767	$ 562
Commercial	4,758	$ 3,723
Construction of commercial	272
Commercial real estate	$ 5,030	$ 3,723
Farm land
Vacant land
Real estate secured	$ 5,797	$ 4,285
Commercial and industrial	$ 603	$ 941
Municipal
Consumer		$ 19
Loans receivable, gross	$ 6,400	$ 5,245
Acquired Loans - Doubtful
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial		$ 526
Construction of commercial
Commercial real estate		$ 526
Farm land
Vacant land
Real estate secured		$ 526
Commercial and industrial	$ 82
Municipal
Consumer	$ 17
Loans receivable, gross	$ 99	$ 526
Acquired Loans - Loss
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured
Commercial and industrial
Municipal
Consumer
Loans receivable, gross
Acquired Loans - Total
Residential 1-4 family	$ 8,026	$ 9,223
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 14,254	$ 17,958
Commercial	91,467	97,899
Construction of commercial	4,862	9,045
Commercial real estate	$ 96,329	$ 106,944
Farm land
Vacant land
Real estate secured	$ 110,583	$ 124,902
Commercial and industrial	$ 53,928	$ 68,714
Municipal
Consumer	$ 74	$ 122
Loans receivable, gross	$ 164,585	$ 193,738

LOANS - Composition of loans 34

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activities Loans - Current
Residential 1-4 family	$ 252,773	$ 241,567
Residential 5+ multifamily	6,032	5,467
Construction of residential 1-4 family	6,193	2,004
Home equity credit	32,733	33,488
Residential real estate	297,731	282,526
Commercial	106,638	94,598
Construction of commercial	12,539	18,602
Commercial real estate	119,177	113,200
Farm land	2,762	2,119
Vacant land	5,504	6,422
Real estate secured	425,174	404,267
Commercial and industrial	69,459	48,478
Municipal	6,947	6,083
Consumer	5,653	4,274
Loans receivable, gross	507,233	463,102
Business Activities Loans - Past due 1-29 days
Residential 1-4 family	3,454	$ 7,299
Residential 5+ multifamily	$ 71
Construction of residential 1-4 family
Home equity credit	$ 424	$ 387
Residential real estate	3,949	7,686
Commercial	$ 1,708	$ 2,079
Construction of commercial
Commercial real estate	$ 1,708	$ 2,079
Farm land
Vacant land	$ 1,119	$ 51
Real estate secured	6,776	9,816
Commercial and industrial	$ 840	$ 582
Municipal
Consumer	$ 92	$ 47
Loans receivable, gross	7,708	10,445
Business Activities Loans - Past due 30-59 days
Residential 1-4 family	$ 332	$ 1,250
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit	$ 291	$ 122
Residential real estate	623	1,372
Commercial	$ 1,569	$ 602
Construction of commercial
Commercial real estate	$ 1,569	$ 602
Farm land		13
Vacant land		7
Real estate secured	$ 2,192	1,994
Commercial and industrial	$ 139	$ 91
Municipal
Consumer	$ 14	$ 8
Loans receivable, gross	2,345	2,093
Business Activities Loans - Past due 60-89 days
Residential 1-4 family	$ 426	$ 555
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit		$ 528
Residential real estate	$ 426	$ 1,083
Commercial	240
Construction of commercial	448
Commercial real estate	$ 688
Farm land		$ 723
Vacant land
Real estate secured	$ 1,114	$ 1,806
Commercial and industrial	$ 397	$ 17
Municipal
Consumer	$ 1	$ 5
Loans receivable, gross	1,512	1,828
Business Activities Loans - Past due 90-179 days
Residential 1-4 family	$ 93	976
Residential 5+ multifamily		$ 89
Construction of residential 1-4 family
Home equity credit	$ 422	$ 39
Residential real estate	515	$ 1,104
Commercial	$ 119
Construction of commercial
Commercial real estate	$ 119
Farm land
Vacant land		$ 39
Real estate secured	$ 634	1,143
Commercial and industrial	$ 5	$ 36
Municipal
Consumer
Loans receivable, gross	$ 639	$ 1,179
Business Activities Loans - Past due 180 days and over
Residential 1-4 family	3,834	$ 611
Residential 5+ multifamily	$ 89
Construction of residential 1-4 family
Home equity credit	$ 10	$ 63
Residential real estate	3,933	674
Commercial	$ 681	$ 1,219
Construction of commercial
Commercial real estate	$ 681	$ 1,219
Farm land	723	384
Vacant land	2,823	2,823
Real estate secured	8,160	$ 5,100
Commercial and industrial	$ 18
Municipal
Consumer
Loans receivable, gross	$ 8,178	$ 5,100
Business Activities Loans - Past due 30 days and over
Residential 1-4 family	4,685	3,392
Residential 5+ multifamily	$ 89	$ 89
Construction of residential 1-4 family
Home equity credit	$ 723	$ 752
Residential real estate	5,497	4,233
Commercial	2,609	$ 1,821
Construction of commercial	448
Commercial real estate	3,057	$ 1,821
Farm land	723	1,120
Vacant land	2,823	2,869
Real estate secured	12,100	10,043
Commercial and industrial	$ 559	$ 144
Municipal
Consumer	$ 15	$ 13
Loans receivable, gross	$ 12,674	$ 10,200
Business Activities Loans - Accruing 90 days and over
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured
Commercial and industrial	$ 5	$ 17
Municipal
Consumer
Loans receivable, gross	$ 5	$ 17
Business Activities Loans - Non-accrual
Residential 1-4 family	5,770	2,445
Residential 5+ multifamily	$ 89	$ 89
Construction of residential 1-4 family
Home equity credit	$ 494	$ 348
Residential real estate	6,353	2,882
Commercial	$ 2,423	$ 1,219
Construction of commercial
Commercial real estate	$ 2,423	$ 1,219
Farm land	1,036	384
Vacant land	2,857	2,862
Real estate secured	12,669	7,347
Commercial and industrial	$ 419	$ 33
Municipal
Consumer
Loans receivable, gross	$ 13,088	$ 7,380
Acquired Loans - Current
Residential 1-4 family	6,977	8,661
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 13,205	$ 17,396
Commercial	86,852	95,695
Construction of commercial	4,590	3,045
Commercial real estate	$ 91,442	$ 104,740
Farm land
Vacant land
Real estate secured	$ 104,647	$ 122,136
Commercial and industrial	$ 53,116	$ 67,665
Municipal
Consumer	$ 70	$ 117
Loans receivable, gross	157,833	$ 189,918
Acquired Loans - Past due 1-29 days
Residential 1-4 family	$ 190
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 190
Commercial	$ 1,982	$ 1,109
Construction of commercial
Commercial real estate	$ 1,982	$ 1,109
Farm land
Vacant land
Real estate secured	$ 2,172	$ 1,109
Commercial and industrial	$ 561	$ 740
Municipal
Consumer		$ 5
Loans receivable, gross	$ 2,733	$ 1,854
Acquired Loans - Past due 30-59 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial		$ 167
Construction of commercial
Commercial real estate		$ 167
Farm land
Vacant land
Real estate secured		$ 167
Commercial and industrial	$ 191	$ 89
Municipal
Consumer	$ 4
Loans receivable, gross	$ 195	$ 256
Acquired Loans - Past due 60-89 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial	$ 461
Construction of commercial
Commercial real estate	$ 461
Farm land
Vacant land
Real estate secured	$ 461
Commercial and industrial	$ 20	$ 220
Municipal
Consumer
Loans receivable, gross	$ 481	$ 220
Acquired Loans - Past due 90-179 days
Residential 1-4 family	$ 269
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 269
Commercial	$ 102	$ 285
Construction of commercial
Commercial real estate	$ 102	$ 285
Farm land
Vacant land
Real estate secured	$ 371	$ 285
Commercial and industrial	$ 40
Municipal
Consumer
Loans receivable, gross	$ 411	$ 285
Acquired Loans - Past due 180 days and over
Residential 1-4 family	$ 590	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 590	$ 562
Commercial	2,070	$ 643
Construction of commercial	272
Commercial real estate	$ 2,342	$ 643
Farm land
Vacant land
Real estate secured	$ 2,932	$ 1,205
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 2,932	$ 1,205
Acquired Loans - Past due 30 days and over
Residential 1-4 family	$ 859	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 859	$ 562
Commercial	2,633	$ 1,095
Construction of commercial	272
Commercial real estate	$ 2,905	$ 1,095
Farm land
Vacant land
Real estate secured	$ 3,764	$ 1,657
Commercial and industrial	$ 251	$ 309
Municipal
Consumer	$ 4
Loans receivable, gross	4,019	$ 1,966
Acquired Loans - Accruing 90 days and over
Residential 1-4 family	$ 91
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 91
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 91
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 91
Acquired Loans - Non-accrual
Residential 1-4 family	$ 767	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 767	$ 562
Commercial	2,172	$ 1,931
Construction of commercial	272
Commercial real estate	$ 2,444	$ 1,931
Farm land
Vacant land
Real estate secured	$ 3,211	$ 2,493
Commercial and industrial	$ 40
Municipal
Consumer
Loans receivable, gross	$ 3,251	$ 2,493

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)Integer	Sep. 30, 2014USD ($)Integer
Business Activities Loans - Residential real estate
Quantity of troubled debt restructurings | Integer	2	2
Pre-modification balance	$ 923	$ 237
Post-modification balance	$ 923	$ 237
Business Activities Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer	2	3
Pre-modification balance	$ 478	$ 846
Post-modification balance	$ 478	$ 846
Business Activities Loans - Construction of commercial
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 131
Post-modification balance		$ 131
Business Activities Loans - Home equity credit
Quantity of troubled debt restructurings | Integer	1	2
Pre-modification balance	$ 35	$ 72
Post-modification balance	$ 35	$ 72
Business Activities Loans - Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	5	8
Pre-modification balance	$ 1,436	$ 1,286
Post-modification balance	$ 1,436	$ 1,286
Business Activities Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer	2
Pre-modification balance	$ 478
Post-modification balance	$ 478
Business Activities Loans - Interest only and term extension
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 48
Post-modification balance		$ 48
Business Activities Loans - Term extension and amortization
Quantity of troubled debt restructurings | Integer		2
Pre-modification balance		$ 338
Post-modification balance		$ 338
Business Activities Loans - Interest only
Quantity of troubled debt restructurings | Integer		2
Pre-modification balance		$ 54
Post-modification balance		$ 54
Business Activities Loans - Debt consolidation, rate reduction, term extension
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 399
Post-modification balance		$ 399
Business Activities Loans - Debt consolidation and term extension
Quantity of troubled debt restructurings | Integer		2
Pre-modification balance		$ 447
Post-modification balance		$ 447
Business Activities Loans - Note bifurcation
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 48
Post-modification balance	$ 48
Business Activities Loans - Term extension
Quantity of troubled debt restructurings | Integer	2
Pre-modification balance	$ 910
Post-modification balance	$ 910

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Business Activities Loans - Three Months Ended - Beginning balance
Residential	$ 2,147
Commercial	1,339
Land	182
Real estate	3,668
Commercial and industrial	691
Municipal	64
Consumer	123
Unallocated	369
Totals	4,915
Business Activities Loans - Three Months Ended - Provision (benefit)
Residential	632
Commercial	(102)
Land	168
Real estate	698
Commercial and industrial	(197)
Municipal	(16)
Consumer	1
Unallocated	55
Totals	541
Business Activities Loans - Three Months Ended - Charge-offs
Residential	(92)
Commercial	(10)
Land	(72)
Real estate	$ (174)
Commercial and industrial
Municipal
Consumer	$ (17)
Unallocated
Totals	$ (191)
Business Activities Loans - Three Months Ended - Recoveries
Residential	$ 111
Commercial
Land
Real estate	$ 111
Commercial and industrial	$ 4
Municipal
Consumer	$ 6
Unallocated
Totals	$ 121
Business Activities Loans - Three Months Ended - Ending balance
Residential	2,798
Commercial	1,227
Land	278
Real estate	4,303
Commercial and industrial	498
Municipal	48
Consumer	113
Unallocated	424
Totals	5,386
Acquired Loans - Three Months Ended - Beginning balance
Residential	15
Commercial	$ 77
Land
Real estate	$ 92
Commercial and industrial	$ 52
Municipal
Consumer
Unallocated
Totals	$ 144
Acquired Loans - Three Months Ended - Provision (benefit)
Residential	55
Commercial	$ 81
Land
Real estate	$ 136
Commercial and industrial	$ (22)
Municipal
Consumer
Unallocated
Totals	$ 114
Acquired Loans - Three Months Ended - Charge-offs
Residential
Commercial
Land
Real estate
Commercial and industrial
Municipal
Consumer
Unallocated
Totals
Acquired Loans - Three Months Ended - Recoveries
Residential
Commercial	$ 5
Land
Real estate	$ 5
Commercial and industrial	$ 10
Municipal
Consumer
Unallocated
Totals	$ 15
Acquired Loans - Three Months Ended - Ending balance
Residential	70
Commercial	$ 163
Land
Real estate	$ 233
Commercial and industrial	$ 40
Municipal
Consumer
Unallocated
Totals	$ 273
Business Activities Loans - Nine Months Ended - Beginning balance
Residential	2,306
Commercial	1,697
Land	164
Real estate	4,167
Commercial and industrial	583
Municipal	61
Consumer	117
Unallocated	409
Totals	5,337
Business Activities Loans - Nine Months Ended - Provision (benefit)
Residential	952
Commercial	(256)
Land	186
Real estate	882
Commercial and industrial	(484)
Municipal	(13)
Consumer	30
Unallocated	15
Totals	430
Business Activities Loans - Nine Months Ended - Charge-offs
Residential	(573)
Commercial	(214)
Land	(72)
Real estate	(859)
Commercial and industrial	$ (56)
Municipal
Consumer	$ (47)
Unallocated
Totals	$ (962)
Business Activities Loans - Nine Months Ended - Recoveries
Residential	$ 113
Commercial
Land
Real estate	$ 113
Commercial and industrial	$ 455
Municipal
Consumer	$ 13
Unallocated
Totals	$ 581
Business Activities Loans - Nine Months Ended - Ending balance
Residential	2,798
Commercial	1,227
Land	278
Real estate	4,303
Commercial and industrial	498
Municipal	48
Consumer	113
Unallocated	424
Totals	$ 5,386
Acquired Loans - Nine Months Ended - Beginning balance
Residential
Commercial	$ 7
Land
Real estate	$ 7
Commercial and industrial	$ 14
Municipal
Consumer
Unallocated
Totals	$ 21
Acquired Loans - Nine Months Ended - Provision (benefit)
Residential	70
Commercial	$ 151
Land
Real estate	$ 221
Commercial and industrial
Municipal
Consumer
Unallocated
Totals	$ 221
Acquired Loans - Nine Months Ended - Charge-offs
Residential
Commercial
Land
Real estate
Commercial and industrial
Municipal
Consumer
Unallocated
Totals
Acquired Loans - Nine Months Ended - Recoveries
Residential
Commercial	$ 5
Land
Real estate	$ 5
Commercial and industrial	$ 26
Municipal
Consumer
Unallocated
Totals	$ 31
Acquired Loans - Nine Months Ended - Ending balance
Residential	70
Commercial	$ 163
Land
Real estate	$ 233
Commercial and industrial	$ 40
Municipal
Consumer
Unallocated
Totals	$ 273
Three months ended - Beginning balance
Residential		$ 1,974
Commercial		1,622
Land		184
Real estate		3,780
Commercial and industrial		584
Municipal		44
Consumer		49
Unallocated		645
Totals		5,102
Three months ended - Provision
Residential		357
Commercial		89
Land		(17)
Real estate		429
Commercial and industrial		(68)
Municipal		18
Consumer		11
Unallocated		(72)
Totals		318
Three months ended - Charge-offs
Residential		$ (46)
Commercial
Land		$ (6)
Real estate		$ (52)
Commercial and industrial
Municipal
Consumer		$ (3)
Unallocated
Totals		$ (55)
Three months ended - Recoveries
Residential		$ 16
Commercial
Land
Real estate		$ 16
Commercial and industrial		$ 1
Municipal
Consumer		$ 2
Unallocated
Totals		$ 19
Three months ended - Ending balance
Residential		2,301
Commercial		1,711
Land		161
Real estate		4,173
Commercial and industrial		517
Municipal		62
Consumer		59
Unallocated		573
Totals		5,384
Nine months ended - Beginning balance
Residential		1,938
Commercial		1,385
Land		226
Real estate		3,549
Commercial and industrial		561
Municipal		43
Consumer		105
Unallocated		425
Totals		4,683
Nine months ended - Provision
Residential		494
Commercial		378
Land		33
Real estate		905
Commercial and industrial		(57)
Municipal		19
Consumer		(46)
Unallocated		148
Totals		969
Nine months ended - Charge-offs
Residential		(149)
Commercial		(52)
Land		(98)
Real estate		(299)
Commercial and industrial		$ (1)
Municipal
Consumer		$ (18)
Unallocated
Totals		$ (318)
Nine months ended - Recoveries
Residential		$ 18
Commercial
Land
Real estate		$ 18
Commercial and industrial		$ 14
Municipal
Consumer		$ 18
Unallocated
Totals		$ 50
Nine months ended - Ending balance
Residential		2,301
Commercial		1,711
Land		161
Real estate		4,173
Commercial and industrial		517
Municipal		62
Consumer		59
Unallocated		573
Totals		$ 5,384

LOANS - Composition of loans 37

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activities Loans - Collectively evaluated Loans
Residential 1-4 family	$ 252,454	$ 245,997
Residential 5+ multifamily	4,315	4,536
Construction of residential 1-4 family	6,193	2,004
Home equity credit	33,230	34,231
Residential real estate	296,192	286,768
Commercial	106,573	93,784
Construction of commercial	12,864	18,474
Commercial real estate	119,437	112,258
Farm land	2,449	2,855
Vacant land	6,364	6,245
Real estate secured	424,442	408,126
Commercial and industrial	70,372	48,635
Municipal	6,947	6,083
Consumer	$ 5,760	$ 4,334
Unallocated allowance
Totals	$ 507,521	$ 467,178
Business Activities Loans - Collectively evaluated Allowance
Residential 1-4 family	1,603	1,316
Residential 5+ multifamily	37	66
Construction of residential 1-4 family	52	13
Home equity credit	345	350
Residential real estate	2,037	1,745
Commercial	937	1,018
Construction of commercial	120	193
Commercial real estate	1,057	1,211
Farm land	19	59
Vacant land	234	67
Real estate secured	3,347	3,082
Commercial and industrial	494	532
Municipal	48	61
Consumer	113	$ 117
Unallocated allowance	424
Totals	4,426	$ 3,792
Business Activities Loans - Individually evaluated Loans
Residential 1-4 family	8,458	6,261
Residential 5+ multifamily	$ 1,877	$ 1,020
Construction of residential 1-4 family
Home equity credit	$ 650	$ 396
Residential real estate	10,985	7,677
Commercial	4,382	4,714
Construction of commercial	123	128
Commercial real estate	4,505	4,842
Farm land	1,036	384
Vacant land	3,082	3,097
Real estate secured	19,608	16,000
Commercial and industrial	$ 486	$ 569
Municipal
Consumer
Unallocated allowance
Totals	$ 20,094	$ 16,569
Business Activities Loans - Individually evaluated Allowance
Residential 1-4 family	$ 724	549
Residential 5+ multifamily		$ 3
Construction of residential 1-4 family
Home equity credit	$ 37	$ 9
Residential real estate	761	561
Commercial	$ 170	$ 486
Construction of commercial
Commercial real estate	$ 170	$ 486
Farm land	1
Vacant land	24	$ 38
Real estate secured	956	1,085
Commercial and industrial	$ 4	$ 51
Municipal
Consumer
Unallocated allowance
Totals	$ 960	$ 1,136
Business Activities Loans - Total portfolio Loans
Residential 1-4 family	260,912	252,258
Residential 5+ multifamily	6,192	5,556
Construction of residential 1-4 family	6,193	2,004
Home equity credit	33,880	34,627
Residential real estate	307,177	294,445
Commercial	110,955	98,498
Construction of commercial	12,987	18,602
Commercial real estate	123,942	117,100
Farm land	3,485	3,239
Vacant land	9,446	9,342
Real estate secured	444,050	424,126
Commercial and industrial	70,858	49,204
Municipal	6,947	6,083
Consumer	$ 5,760	$ 4,334
Unallocated allowance
Totals	$ 527,615	$ 483,747
Business Activities Loans - Total portfolio Allowance
Residential 1-4 family	2,327	1,865
Residential 5+ multifamily	37	69
Construction of residential 1-4 family	52	13
Home equity credit	382	359
Residential real estate	2,798	2,306
Commercial	1,107	1,504
Construction of commercial	120	193
Commercial real estate	1,227	1,697
Farm land	20	59
Vacant land	258	105
Real estate secured	4,303	4,167
Commercial and industrial	498	583
Municipal	48	61
Consumer	113	117
Unallocated allowance	424	409
Totals	5,386	5,337
Acquired Loans - Collectively evaluated Loans
Residential 1-4 family	7,259	8,661
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 13,487	$ 17,396
Commercial	83,257	89,820
Construction of commercial	4,590	9,045
Commercial real estate	$ 87,847	$ 98,865
Farm land
Vacant land
Real estate secured	$ 101,334	$ 116,261
Commercial and industrial	$ 52,587	$ 66,874
Municipal
Consumer	$ 57	$ 103
Unallocated allowance
Totals	$ 153,978	$ 183,238
Acquired Loans - Collectively evaluated Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial	$ 13
Construction of commercial	3	$ 7
Commercial real estate	$ 16	$ 7
Farm land
Vacant land
Real estate secured	$ 16	$ 7
Commercial and industrial	$ 40	$ 14
Municipal
Consumer
Unallocated allowance
Totals	$ 56	$ 21
Acquired Loans - Individually evaluated Loans
Residential 1-4 family	$ 767	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 767	$ 562
Commercial	2,920	$ 2,502
Construction of commercial	272
Commercial real estate	$ 3,192	$ 2,502
Farm land
Vacant land
Real estate secured	$ 3,959	$ 3,064
Commercial and industrial	$ 40
Municipal
Consumer
Unallocated allowance
Totals	$ 3,999	$ 3,064
Acquired Loans - Individually evaluated Allowance
Residential 1-4 family	$ 70
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 70
Commercial	$ 145
Construction of commercial
Commercial real estate	$ 145
Farm land
Vacant land
Real estate secured	$ 215
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	$ 215
Acquired Loans - ASC 310-30 Loans
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial	$ 5,290	$ 5,577
Construction of commercial
Commercial real estate	$ 5,290	$ 5,577
Farm land
Vacant land
Real estate secured	$ 5,290	$ 5,577
Commercial and industrial	$ 1,301	$ 1,840
Municipal
Consumer	$ 17	$ 19
Unallocated allowance
Totals	$ 6,608	$ 7,436
Acquired Loans - ASC 310-30 loans Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate
Commercial	$ 2
Construction of commercial
Commercial real estate	$ 2
Farm land
Vacant land
Real estate secured	$ 2
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	$ 2
Acquired Loans - Total portfolio Loans
Residential 1-4 family	8,026	$ 9,223
Residential 5+ multifamily	$ 6,228	$ 8,735
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 14,254	$ 17,958
Commercial	91,467	97,899
Construction of commercial	4,862	9,045
Commercial real estate	$ 96,329	$ 106,944
Farm land
Vacant land
Real estate secured	$ 110,583	$ 124,902
Commercial and industrial	$ 53,928	$ 68,714
Municipal
Consumer	$ 74	$ 122
Unallocated allowance
Totals	$ 164,585	$ 193,738
Acquired Loans - Total portfolio Allowance
Residential 1-4 family	$ 70
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity credit
Residential real estate	$ 70
Commercial	160
Construction of commercial	3	$ 7
Commercial real estate	$ 163	$ 7
Farm land
Vacant land
Real estate secured	$ 233	$ 7
Commercial and industrial	$ 40	$ 14
Municipal
Consumer
Unallocated allowance
Totals	$ 273	$ 21

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activities Loans - Collectively evaluated Loans
Performing loans	$ 503,052	$ 457,744
Potential problem loans	$ 4,469	$ 9,423
Impaired loans
Unallocated allowance
Totals	$ 507,521	$ 467,167
Business Activities Loans - Collectively evaluated Allowance
Performing loans	3,935	3,283
Potential problem loans	$ 67	$ 509
Impaired loans
Unallocated allowance	$ 424	$ 409
Totals	$ 4,426	$ 4,201
Business Activities Loans - Individually evaluated Loans
Performing loans
Potential problem loans		$ 11
Impaired loans	$ 20,094	$ 16,569
Unallocated allowance
Totals	$ 20,094	$ 16,580
Business Activities Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 960	$ 1,136
Unallocated allowance
Totals	$ 960	$ 1,136
Business Activities Loans - Total portfolio Loans
Performing loans	503,052	457,744
Potential problem loans	4,469	9,434
Impaired loans	$ 20,094	$ 16,569
Unallocated allowance
Totals	$ 527,615	$ 483,747
Business Activities Loans - Total portfolio Allowance
Performing loans	3,935	3,283
Potential problem loans	67	509
Impaired loans	960	1,136
Unallocated allowance	424	409
Totals	5,386	5,337
Acquired Loans - Collectively evaluated Loans
Performing loans	158,144	187,966
Potential problem loans	$ 2,442	$ 2,708
Impaired loans
Unallocated allowance
Totals	$ 160,586	$ 190,674
Acquired Loans - Collectively evaluated Allowance
Performing loans	56	$ 21
Potential problem loans	$ 2
Impaired loans
Unallocated allowance
Totals	$ 58	$ 21
Acquired Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	$ 3,999	$ 3,064
Unallocated allowance
Totals	$ 3,999	$ 3,064
Acquired Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 215
Unallocated allowance
Totals	$ 215
Acquired Loans - Total portfolio Loans
Performing loans	158,144	$ 187,966
Potential problem loans	2,442	2,708
Impaired loans	$ 3,999	$ 3,064
Unallocated allowance
Totals	$ 164,585	$ 193,738
Acquired Loans - Total portfolio Allowance
Performing loans	56	$ 21
Potential problem loans	2
Impaired loans	$ 215
Unallocated allowance
Totals	$ 273	$ 21

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book
Residential 1-4 family	$ 7,170	$ 5,008
Home equity credit	543	9
Residential real estate	7,713	5,017
Commercial	$ 3,864	$ 3,383
Commercial construction
Farm land	$ 11
Vacant land	2,870	$ 3,097
Real estate secured	14,458	11,497
Commercial and industrial	$ 247	$ 102
Consumer
Totals	$ 14,705	$ 11,599
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note
Residential 1-4 family	7,703	5,157
Home equity credit	557	24
Residential real estate	8,260	5,181
Commercial	$ 4,309	$ 3,563
Commercial construction
Farm land	$ 13
Vacant land	3,789	$ 3,996
Real estate secured	16,371	12,740
Commercial and industrial	$ 255	$ 161
Consumer
Totals	$ 16,626	$ 12,901
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	6,213	4,547
Home equity credit	176	91
Residential real estate	6,389	4,638
Commercial	$ 2,629	$ 3,262
Commercial construction
Farm land	$ 445
Vacant land	3,058	$ 3,090
Real estate secured	12,521	10,990
Commercial and industrial	$ 120	$ 106
Consumer
Totals	$ 12,641	$ 11,096
Business Activities Loans - Impaired loans with specific allowance - Specific allowance
Residential 1-4 family	724	552
Home equity credit	37	9
Residential real estate	761	561
Commercial	$ 170	$ 486
Commercial construction
Farm land	$ 1
Vacant land	24	$ 38
Real estate secured	956	1,085
Commercial and industrial	$ 4	$ 51
Consumer
Totals	$ 960	$ 1,136
Business Activities Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family	109	$ 128
Home equity credit	6
Residential real estate	115	$ 128
Commercial	$ 113	$ 108
Commercial construction
Farm land
Vacant land	$ 2	$ 12
Real estate secured	230	248
Commercial and industrial	$ 8	$ 2
Consumer
Totals	$ 238	$ 250
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential 1-4 family	3,165	2,273
Home equity credit	107	387
Residential real estate	3,272	2,660
Commercial	518	1,331
Commercial construction	123	128
Farm land	1,025	$ 384
Vacant land	212
Real estate secured	5,150	$ 4,503
Commercial and industrial	$ 239	$ 467
Consumer
Totals	$ 5,389	$ 4,970
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential 1-4 family	3,314	2,395
Home equity credit	122	405
Residential real estate	3,436	2,800
Commercial	548	1,520
Commercial construction	129	134
Farm land	1,100	$ 384
Vacant land	244
Real estate secured	5,457	$ 4,838
Commercial and industrial	$ 272	469
Consumer		19
Totals	$ 5,729	5,307
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	3,043	2,703
Home equity credit	611	441
Residential real estate	3,654	3,144
Commercial	2,130	1,468
Commercial construction	127	123
Farm land	270	$ 384
Vacant land	5
Real estate secured	6,186	$ 5,119
Commercial and industrial	$ 464	516
Consumer		19
Totals	$ 6,650	5,654
Business Activities Loans - Impaired loans with no specific allowance - Income recognized
Residential 1-4 family	82	57
Home equity credit	2	4
Residential real estate	84	61
Commercial	12	$ 54
Commercial construction	6
Farm land	15
Vacant land	7
Real estate secured	124	$ 115
Commercial and industrial	$ 7	$ 30
Consumer
Totals	$ 131	$ 145
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book
Residential 1-4 family	$ 590
Home equity credit
Residential real estate	$ 590
Commercial	$ 2,146
Commercial construction
Farm land
Vacant land
Real estate secured	$ 2,736
Commercial and industrial	$ 40
Consumer
Totals	$ 2,776
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note
Residential 1-4 family	$ 716
Home equity credit
Residential real estate	$ 716
Commercial	$ 2,897
Commercial construction
Farm land
Vacant land
Real estate secured	$ 3,613
Commercial and industrial	$ 70
Consumer
Totals	$ 3,683
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	$ 176
Home equity credit
Residential real estate	$ 176
Commercial	$ 557
Commercial construction
Farm land
Vacant land
Real estate secured	$ 733
Commercial and industrial	$ 4
Consumer
Totals	$ 737
Acquired Loans - Impaired loans with specific allowance - Specific allowance
Residential 1-4 family	$ 70
Home equity credit
Residential real estate	$ 70
Commercial	$ 145
Commercial construction
Farm land
Vacant land
Real estate secured	$ 215
Commercial and industrial
Consumer
Totals	$ 215
Acquired Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family
Home equity credit
Residential real estate
Commercial	$ 61
Commercial construction
Farm land
Vacant land
Real estate secured	$ 61
Commercial and industrial	$ 1
Consumer
Totals	$ 62
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential 1-4 family	$ 177	$ 562
Home equity credit
Residential real estate	$ 177	$ 562
Commercial	774	$ 2,502
Commercial construction	$ 272
Farm land
Vacant land
Real estate secured	$ 1,223	$ 3,064
Commercial and industrial
Consumer
Totals	$ 1,223	$ 3,064
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential 1-4 family	$ 177	$ 716
Home equity credit
Residential real estate	$ 177	$ 716
Commercial	1,091	$ 4,014
Commercial construction	$ 278
Farm land
Vacant land
Real estate secured	$ 1,546	$ 4,730
Commercial and industrial		$ 4
Consumer
Totals	$ 1,546	$ 4,734
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	$ 436	$ 562
Home equity credit
Residential real estate	$ 436	$ 562
Commercial	2,097	$ 2,502
Commercial construction	$ 138
Farm land
Vacant land
Real estate secured	$ 2,671	$ 3,064
Commercial and industrial
Consumer
Totals	$ 2,671	$ 3,064
Acquired Loans - Impaired loans with no specific allowance - Income recognized
Residential 1-4 family	$ 4	$ 3
Home equity credit
Residential real estate	$ 4	$ 3
Commercial	10	$ 12
Commercial construction	$ 16
Farm land
Vacant land
Real estate secured	$ 30	$ 15
Commercial and industrial
Consumer
Totals	$ 30	$ 15

LOANS - Activity in the accreta

LOANS - Activity in the accretable yield for acquired loan portfolio falling under ASC-310-30 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Loans - Activity In Accretable Yield For Acquired Loan Portfolio Falling Under Asc-310-30
Balance at beginning of period	$ 1,604		$ 1,242
Acquisitions
Sales
Reclassification from nonaccretable difference for loans with improved cash flows	$ 379		$ 1,157
Change in cash flows that do not affect nonaccretable difference
Accretion	$ (297)		$ (713)
Balance at end of period	$ 1,686		$ 1,686

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Loans Details Narrative
Interest on non-accrual loans that would have been recorded as additional interest income had the loans been current in accordance with their original terms	$ 609	$ 410
Loans collateralized by residential real estate property in the process of foreclosure	$ 4,300

MORTGAGE SERVICING RIGHTS - Bal

MORTGAGE SERVICING RIGHTS - Balance of loans serviced for others and fair value of mortgage servicing rights (Details) - Balance of loans serviced for others and fair value of mortgage servicing rights - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Residential mortgage loans serviced for others	$ 132,201	$ 138,106
Fair value of mortgage servicing rights	$ 1,429	$ 1,568

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Mortgage Servicing Rights
Balance, beginning of period	$ 599	$ 838	$ 694	$ 980
Originated	22	(17)	124	5
Amortization (1)	(85)	(56)	(282)	(220)
Balance, end of period	536	765	536	765
Valuation Allowance
Balance, beginning of period	(2)	(1)	1	(15)
Decrease (increase) in impairment reserve (1)	1	$ 1	(2)	$ 15
Balance, end of period	(1)		(1)
Loan servicing rights, net	$ 535	$ 765	$ 535	$ 765

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Securities available-for-sale (at fair value)	$ 68,569	$ 69,055
Loans receivable	159,436	157,581
Total pledged assets	$ 228,005	$ 226,636

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Sep. 30, 2015USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 60,400
Securities pledged to secure repurchase agreements	8,100
Securities pledged to secure FHLBB advances	$ 100

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of earnings per share (Details) - Calculation of earnings per share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income	$ 1,985	$ 768	$ 6,290	$ 2,285
Less: Preferred stock dividends declared	(40)	(40)	(120)	(126)
Net income available to common shareholders	1,945	728	6,170	2,159
Less: Undistributed earnings allocated to participating securities	(17)	(8)	(54)	(26)
Net income allocated to common stock	1,928	720	6,116	2,133
Common shares issued	2,731	1,713	2,728	1,713
Less: Unvested restricted stock awards	(24)	(20)	(24)	(21)
Common shares outstanding used to calculate basic earnings per common share	2,707	$ 1,693	2,704	$ 1,692
Add: Dilutive effect of stock options	17		17
Common shares outstanding used to calculate diluted earnings per common share	$ 2,724	$ 1,693	$ 2,721	$ 1,692
Earnings per common share (basic)	$ .71	$ .43	$ 2.26	$ 1.26
Earnings per common share (diluted)	$ .71	$ .43	$ 2.25	$ 1.26

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 96,366	$ 89,783
Actual - Ratio	13.90%	14.27%
For Capital Adequacy - Amount	$ 55,481	$ 50,334
For Capital Adequacy - Ratio	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 90,458	$ 84,171
Actual - Ratio	13.04%	13.38%
For Capital Adequacy - Amount	$ 41,611	$ 25,167
For Capital Adequacy - Ratio	6.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 74,458
Actual - Ratio	10.74%
For Capital Adequacy - Amount	$ 39,473
For Capital Adequacy - Ratio	4.50%
To Be Well Capitalized - Amount
To Be Well Capitalized - Ratio
Tier 1 Capital (to average assets)
Actual - Amount	$ 90,458	$ 84,171
Actual - Ratio	10.31%	12.31%
For Capital Adequacy - Amount	$ 35,088	$ 27,344
For Capital Adequacy - Ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Bank
Total Capital (to risk-weighted assets)
Actual - Amount		$ 80,492	$ 87,507
Actual - Ratio		12.75%	12.62%
For Capital Adequacy - Amount		$ 50,492	$ 55,481
For Capital Adequacy - Ratio		8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 63,116	$ 69,352
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		10.00%	10.00%
Tier 1 Capital (to risk-weighted assets)
Actual - Amount		$ 74,881	$ 81,599
Actual - Ratio		11.86%	11.77%
For Capital Adequacy - Amount		$ 25,246	$ 41,611
For Capital Adequacy - Ratio		4.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 37,869	$ 55,481
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		6.00%	8.00%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount			$ 81,599
Actual - Ratio			11.77%
For Capital Adequacy - Amount			$ 39,473
For Capital Adequacy - Ratio			4.50%
To Be Well Capitalized - Amount			$ 57,017
To Be Well Capitalized - Ratio			6.50%
Tier 1 Capital (to average assets)
Actual - Amount		$ 74,881	$ 81,599
Actual - Ratio		10.95%	9.30%
For Capital Adequacy - Amount		$ 27,345	$ 35,088
For Capital Adequacy - Ratio		4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 34,181	$ 43,859
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		5.00%	5.00%

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - Shareholders' Equity Details - USD ($) $ in Thousands	9 Months Ended		15 Months Ended
	Dec. 31, 2016	Sep. 30, 2015	Mar. 31, 2016	Aug. 31, 2011
Series B Preferred Stock issued to Treasury under SBLF program				$ 16,000
Dividend rate on Series B Preferred Stock	9.00%	1.00%	1.00%

PENSIONS AND OTHER BENEFITS - C

PENSIONS AND OTHER BENEFITS - Components of net periodic cost (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2014	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Interest cost on benefit obligation	$ 69	$ 207
Expected return on plan assets	(74)	(222)
Net periodic benefit cost	$ (5)	$ (15)

PENSIONS AND OTHER BENEFITS (De

PENSIONS AND OTHER BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Jun. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 28, 2015	Feb. 25, 2015	Feb. 17, 2015	Dec. 05, 2014	Jan. 03, 2014
Compensation and Retirement Disclosure [Abstract]
401(k) Plan contribution expense	$ 166	$ 159	$ 516	$ 495
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	14	13	53	40
Employee Stock Ownership Plan (ESOP)
ESOP expense	96	47	287	141
Other Retirement Plans
Discretionary contribution to Executives' account	34	15	95	44
Grants of Restricted Stock and Options
Stock options exercised by two former Riverside Bank executives, shares					2,700	5,400	1,350
Stock options exercised by two former Riverside Bank executives, price per share					$ 21.48	$ 18.52	$ 18.52
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan								6,000	3,000
Expense related to grants of restricted stock and options	52	$ 43	167	112
Unrecognized compensation cost relating to awards	$ 186		$ 186	$ 254
Forfeiture of restricted common stock, shares			(300)	(2,000)

ACCUMULATED OTHER COMPREHENSI51

ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Unrealized gains on securities available-for-sale, net of tax	$ 1,443	$ 2,108
Accumulated other comprehensive income, net	$ 1,443	$ 2,108

FAIR VALUE OF ASSETS AND LIAB52

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurements Using - Level 1
Assets at fair value on a recurring basis
U.S. Treasury notes
U.S. Government agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Collateralized mortgage obligations: Non-agency
SBA bonds
CRA mutual funds
Preferred stock	$ 375	$ 327
Securities available-for-sale	$ 375	$ 327
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
U.S. Treasury notes	$ 7,565	$ 2,806
U.S. Government agency notes	500	5,874
Municipal bonds	33,317	40,352
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	27,006	27,709
Collateralized mortgage obligations: U.S. Government agencies	2,157	2,679
Collateralized mortgage obligations: Non-agency	5,332	6,596
SBA bonds	3,350	4,465
CRA mutual funds	$ 769	$ 504
Preferred stock
Securities available-for-sale	$ 79,996	$ 90,985
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 3
Assets at fair value on a recurring basis
U.S. Treasury notes
U.S. Government agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Collateralized mortgage obligations: Non-agency
SBA bonds
CRA mutual funds
Preferred stock
Securities available-for-sale
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	$ 16,305	$ 10,463
Other real estate owned	167	1,002
Assets at fair value
Assets at fair value on a recurring basis
U.S. Treasury notes	7,565	2,806
U.S. Government agency notes	500	5,874
Municipal bonds	33,317	40,352
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	27,006	27,709
Collateralized mortgage obligations: U.S. Government agencies	2,157	2,679
Collateralized mortgage obligations: Non-agency	5,332	6,596
SBA bonds	3,350	4,465
CRA mutual funds	769	504
Preferred stock	375	327
Securities available-for-sale	80,371	91,312
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	16,305	10,463
Other real estate owned	$ 167	$ 1,002

FAIR VALUE OF ASSETS AND LIAB53

FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying value
Financial Assets
Cash and cash equivalents	$ 81,695	$ 36,105
Securities available-for-sale	80,371	91,312
Federal Home Loan Bank stock	3,515	3,515
Loans held-for-sale	573	568
Loans receivable, net	687,719	673,330
Accrued interest receivable	2,296	2,334
Cash surrender value of life insurance	13,591	13,314
Financial Liabilities
Demand (non-interest-bearing)	194,618	161,386
Demand (interest-bearing)	129,779	117,169
Money market	184,409	174,274
Savings and other	123,017	121,387
Certificates of deposit	129,656	141,210
Deposits	761,479	715,426
Repurchase agreements	4,210	4,163
FHLBB advances	26,928	28,813
Note payable	380
Capital lease liability	422	424
Accrued interest payable	121	166
Estimated fair value
Financial Assets
Cash and cash equivalents	81,695	36,105
Securities available-for-sale	80,371	91,312
Federal Home Loan Bank stock	3,515	3,515
Loans held-for-sale	584	572
Loans receivable, net	695,147	683,845
Accrued interest receivable	2,296	2,334
Cash surrender value of life insurance	13,591	13,314
Financial Liabilities
Demand (non-interest-bearing)	194,618	161,386
Demand (interest-bearing)	129,779	117,169
Money market	184,409	174,274
Savings and other	123,017	121,387
Certificates of deposit	130,765	142,261
Deposits	762,588	716,477
Repurchase agreements	4,210	4,163
FHLBB advances	28,988	30,626
Note payable	409
Capital lease liability	898	929
Accrued interest payable	121	166
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	81,695	36,105
Securities available-for-sale	$ 375	$ 327
Federal Home Loan Bank stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance	$ 13,591	$ 13,314
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Note payable
Capital lease liability
Accrued interest payable
Fair Value Measurements Using - Level 2
Financial Assets
Cash and cash equivalents
Securities available-for-sale	$ 79,996	$ 90,985
Federal Home Loan Bank stock	$ 3,515	$ 3,515
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Note payable
Capital lease liability
Accrued interest payable
Fair Value Measurements Using - Level 3
Financial Assets
Cash and cash equivalents
Securities available-for-sale
Federal Home Loan Bank stock
Loans held-for-sale	$ 584	$ 572
Loans receivable, net	695,147	683,845
Accrued interest receivable	$ 2,296	$ 2,334
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)	$ 194,618	$ 161,386
Demand (interest-bearing)	129,779	117,169
Money market	184,409	174,274
Savings and other	123,017	121,387
Certificates of deposit	130,765	142,261
Deposits	762,588	716,477
Repurchase agreements	4,210	4,163
FHLBB advances	28,988	30,626
Note payable	409
Capital lease liability	898	929
Accrued interest payable	$ 121	$ 166