Salisbury Bancorp (SAL) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	1,060,219
Document Type	10-K
Document Period End Date	Dec. 31, 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?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 73,900
Entity Common Stock, Shares Outstanding		2,753,426
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 14,891	$ 13,280
Interest bearing demand deposits with other banks	47,227	22,825
Total cash and cash equivalents	62,118	36,105
Securities
Available-for-sale at fair value	76,694	91,312
Federal Home Loan Bank of Boston stock at cost	3,176	3,515
Loans held-for-sale	763	568
Loans receivable, net (allowance for loan losses: $5,716 and $5,358)	$ 699,018	673,330
Other real estate owned		1,002
Bank premises and equipment, net	$ 14,307	14,431
Goodwill	12,552	12,552
Intangible assets (net of accumulated amortization: $2,910 and $2,258)	2,338	2,990
Accrued interest receivable	2,307	2,334
Cash surrender value of life insurance policies	13,685	13,314
Deferred taxes	1,989	2,428
Other assets	2,245	1,546
Total Assets	891,192	855,427
Deposits
Demand (non-interest bearing)	201,340	161,386
Demand (interest bearing)	125,465	117,169
Money market	183,783	174,274
Savings and other	119,651	121,387
Certificates of deposit	124,294	141,210
Total deposits	754,533	715,426
Repurchase agreements	3,914	4,163
Federal Home Loan Bank of Boston advances	26,979	$ 28,813
Subordinated debt	9,764
Note payable	376
Capital lease liability	422	$ 424
Accrued interest and other liabilities	4,630	4,780
Total Liabilities	$ 800,618	753,606
Shareholders' Equity
Preferred stock - $.01 per share par value, Authorized: 25,000; Issued: 16,000 (Series B); Outstanding: 0 and 16,000; Liquidation preference: $1,000 per share		16,000
Common stock - $.10 per share par value, Authorized: 5,000,000; Issued: 2,733,576 and 2,720,766	$ 273	272
Unearned Compensation - restricted stock awards	(110)	(313)
Paid-in capital	41,364	41,077
Retained earnings	47,922	42,677
Accumulated other comprehensive income, net	1,125	2,108
Total Shareholders' Equity	90,574	101,821
Total Liabilities and Shareholders' Equity	$ 891,192	$ 855,427

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Allowance for loan losses of loans receivable	$ 5,716	$ 5,358
Accumulated amortization of intangible assets	$ 2,910	$ 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, outstanding	0	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 - Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest and dividend income
Interest and fees on loans	$ 31,752	$ 19,616	$ 17,978
Interest on debt securities
Taxable	1,179	1,406	1,757
Tax exempt	1,431	1,704	1,948
Other interest and dividends	209	129	67
Total interest and dividend income	34,571	22,855	21,750
Interest expense
Deposits	1,844	1,465	1,813
Repurchase agreements	7	8	6
Federal Home Loan Bank of Boston advances	1,064	1,184	$ 1,243
Capital lease	70	$ 47
Note payable	6
Subordinated debt	35
Total interest expense	3,026	$ 2,704	$ 3,062
Net interest and dividend income	31,545	20,151	18,688
Provision for loan losses	917	1,134	1,066
Net interest and dividend income after provision for loan losses	30,628	$ 19,017	$ 17,622
Non-interest income
Gains on securities, net	192
Trust and wealth advisory	3,265	$ 3,295	$ 3,074
Service charges and fees	3,070	2,473	2,298
Gains on sales of mortgage loans, net	274	64	579
Mortgage servicing, net	1	94	35
Other	510	326	319
Total non-interest income	7,312	6,252	6,305
Non-interest expense
Salaries	10,301	8,029	7,467
Employee benefits	3,729	3,136	2,804
Premises and equipment	3,541	2,831	2,398
Data processing	1,677	1,502	1,514
Professional fees	2,150	1,331	1,212
Collections, OREO, and appraisals	505	458	519
FDIC insurance	658	461	470
Marketing and community support	593	396	393
Amortization of intangibles	$ 652	291	222
Merger and acquisition related expenses		1,974	312
Other	$ 2,114	1,729	1,624
Total non-interest expense	25,920	22,138	18,935
Income before income taxes	12,020	3,131	4,992
Income tax provision	3,563	610	909
Net income	8,457	2,521	4,083
Net income available to common shareholders	$ 8,299	$ 2,355	$ 3,922
Basic earnings per common share	$ 3.04	$ 1.32	$ 2.30
Diluted earnings per common share	3.02	1.32	2.30
Common dividends per share	$ 1.12	$ 1.12	$ 1.12

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 8,457	$ 2,521	$ 4,083
Other comprehensive (loss) income
Net unrealized (losses) gains on securities available-for-sale	(1,297)	$ 2,534	$ (3,743)
Reclassification of net realized gains in net income	(192)
Unrealized (losses) gains on securities available-for-sale	(1,489)	$ 2,534	$ (3,743)
Income tax benefit (expense)	506	(862)	1,273
Unrealized (losses) gains on securities available-for-sale, net of tax	$ (983)	1,672	(2,470)
Change in unrecognized pension plan (expense) income		(924)	1,635
Income tax benefit (expense)		314	(556)
Change in unrecognized pension plan (expense) income, net of tax		(610)	1,079
Other comprehensive (loss) income, net of tax	$ (983)	1,062	(1,391)
Comprehensive income	$ 7,474	$ 3,583	$ 2,692

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Preferred Stock	Paid-in capital	Retained earnings	Long Term Incentive Plan	Accumulated other comprehensive income (loss)	Total shareholders' equity
Balance - Beginning, amount at Dec. 31, 2012	$ 169	$ 16,000	$ 13,158	$ 40,233		$ 2,437	$ 71,997
Balance - Beginning, shares at Dec. 31, 2012	1,689,731
Net income for year				$ 4,083			4,083
Other comprehensive income, net of tax						$ (1,391)	(1,391)
Common stock dividends declared				$ (1,915)			(1,915)
Preferred stock dividends declared				$ (161)			$ (161)
Issuance of restricted common stock, amount	$ 2		$ 488		$ (490)
Issuance of restricted common stock, shares	19,600
Forfeiture of restricted common stock, amount			$ (12)		12
Forfeiture of restricted common stock, shares	(500)
Stock based compensation-restricted stock awards					$ 143		$ 143
Issuance of common stock for director fees, amount			$ 34				34
Issuance of common stock for director fees, shares	1,330
Balance - Ending at Dec. 31, 2013	$ 171	$ 16,000	$ 13,668	$ 42,240	$ (335)	$ 1,046	72,790
Balance - Ending, shares at Dec. 31, 2013	1,710,121
Net income for year				$ 2,521			2,521
Other comprehensive income, net of tax						$ 1,062	1,062
Common stock dividends declared				$ (1,918)			(1,918)
Preferred stock dividends declared				$ (166)			(166)
Acquisition of Riverside Bank, amount	$ 100		$ 27,151				27,251
Acquisition of Riverside Bank, shares	1,001,485
Issuance of common stock for executives, amount			61				$ 61
Issuance of common stock for executives, shares	2,250
Issuance of restricted common stock, amount	$ 1		182		$ (183)
Issuance of restricted common stock, shares	6,750
Forfeiture of restricted common stock, amount			$ (50)		50
Forfeiture of restricted common stock, shares	(2,000)
Stock based compensation-restricted stock awards					$ 155		$ 155
Issuance of common stock for director fees, amount			$ 65				65
Issuance of common stock for director fees, shares	2,160
Balance - Ending at Dec. 31, 2014	$ 272	$ 16,000	$ 41,077	$ 42,677	$ (313)	$ 2,108	101,821
Balance - Ending, shares at Dec. 31, 2014	2,720,766
Net income for year				$ 8,457			8,457
Other comprehensive income, net of tax						$ (983)	(983)
Common stock dividends declared				$ (3,054)			(3,054)
Preferred stock dividends declared				$ (158)			(158)
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
Forfeiture of restricted common stock, amount			(7)		$ 7
Forfeiture of restricted common stock, shares	(300)
Stock based compensation-restricted stock awards			2		$ 196		$ 198
Issuance of common stock for director fees, amount			$ 81				81
Issuance of common stock for director fees, shares	2,660
Redemption of preferred stock		$ (16,000)					(16,000)
Balance - Ending at Dec. 31, 2015	$ 273		$ 41,364	$ 47,922	$ (110)	$ 1,125	$ 90,574
Balance - Ending, shares at Dec. 31, 2015	2,733,576

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements of Cash Flows
Operating Activities
Net income	$ 8,457	$ 2,521	$ 4,083
(Accretion), amortization and depreciation
Securities	240	198	365
Bank premises and equipment	1,234	1,031	856
Core deposit intangible	652	291	222
Mortgage servicing rights	356	303	389
Fair value adjustment on loans	(2,725)	(181)	$ 32
Fair value adjustment on deposits	(417)	$ (69)
(Gains) and losses, including write-downs
Sales and calls of securities available-for-sale, net	(192)
Gains on sales of loans, excluding capitalized servicing rights	(125)	$ (54)	$ (285)
Loss on other real estate owned	81	99	133
Loss on sale/disposals of premises and equipment	45	6	34
Provision for loan losses	917	1,134	1,066
Proceeds from loans sold	8,549	4,449	18,693
Loans originated for sale	(8,619)	(4,790)	(16,702)
Decrease (increase) in deferred loan origination fees and costs, net	14	(21)	(150)
Mortgage servicing rights originated	(148)	(17)	(294)
Increase (decrease) in mortgage servicing rights impairment reserve	3	(15)	(23)
Decrease (increase) in interest receivable	27	(162)	58
Deferred tax expense (benefit)	945	(673)	(134)
(Increase) decrease in prepaid expenses	(295)	(57)	706
Increase in cash surrender value of life insurance policies	(371)	$ (245)	(234)
(Increase) decrease in income tax receivable	(512)		$ 311
(Decrease) increase in income taxes payable	(86)	$ 64
(Increase) decrease in other assets	(103)	41	$ (637)
Decrease (increase) in accrued expenses	(155)	269	734
Decrease in interest payable	(16)	(3)	(55)
Increase in other liabilities	107	$ 80	$ 346
Stock options exercised	183
Issuance of shares for directors' fees	81	$ 65	$ 34
Stock based compensation - restricted stock awards	227	216	143
Net cash provided by operating activities	$ 8,354	4,480	9,691
Investing Activities
Maturity (purchase) of interest-bearing time deposits with other banks		738	(738)
Redemption of Federal Home Loan Bank of Boston stock	$ 339	1,825	$ 407
Purchases of securities available-for-sale	(16,373)	$ (502)
Proceeds from sale of securities available-for-sale	3,861
Proceeds from calls of securities available-for-sale	10,925	$ 8,115	$ 3,800
Proceeds from maturities of securities available-for-sale	14,668	9,644	23,888
Loan originations and principle collections, net	$ (24,481)	(37,872)	$ (52,088)
Loans purchased		(2,711)
Recoveries of loans previously charged off	$ 653	101	$ 31
Proceeds from sale of other real estate owned	$ 855	40	$ 1,423
Purchase of life insurance policies		(1,100)
Capital expenditures	$ (779)	(2,156)	$ (556)
Cash and cash equivalents acquired in acquisitions		36,112
Net cash (utilized) provided by investing activities	$ (10,332)	12,234	$ (23,833)
Financing Activities
Increase (decrease) in deposit transaction accounts, net	56,023	16,306	(2,997)
Decrease in time deposits, net	(16,499)	(7,552)	(10,849)
(Decrease) increase in securities sold under agreements to repurchase, net	(249)	1,609	770
Principal payments on Federal Home Loan Bank of Boston advances	(791)	$ (1,598)	$ (1,569)
Modification fees on Federal Home Loan Bank of Boston advances	(1,043)
Decrease in capital lease obligation	(2)	$ (1)
Payoff of preferred stock	(16,000)
Issuance of subordinated debt, net of issuance costs	9,764
Common stock dividends paid	(3,054)	$ (1,918)	$ (1,915)
Series B preferred stock dividends paid	(158)	(166)	(161)
Net cash provided (utilized) by financing activities	27,991	6,680	(16,721)
Net increase (decrease) in cash and cash equivalents	26,013	23,394	(30,863)
Cash and cash equivalents, beginning of year	36,105	12,711	43,574
Cash and cash equivalents, end of year	62,118	36,105	12,711
Cash paid during year
Interest	3,460	2,477	3,117
Income taxes	3,216	1,258	732
Non-cash transfers
Note payable to finance building purchase	376
From loans to other real estate owned	101	$ 764	$ 1,689
From other real estate owned to loans	$ 167
The Company recorded a capital lease asset and incurred a capital lease obligation in connection with the lease of a building			$ 425
Union Savings Bank, N.A. branch acquisition 2014
Non-cash transfers
Cash and cash equivalents acquired		$ 17,462
Net loans acquired		63
Fixed assets acquired		158
Core deposit intangible		490
Deposits assumed		18,172
Accrued interest payable assumed		1
Riverside Bank acquisition 2014
Non-cash transfers
Cash and cash equivalents acquired		18,650
Investments acquired		11,742
Net loans acquired		196,305
Fixed assets acquired		1,543
Accrued interest receivable acquired		412
Cash surrender value of life insurance policies acquired		4,440
Other assets acquired		2,154
Core deposit intangible		2,215
Deposits assumed		211,200
Accrued interest payable assumed		28
Other liabilities assumed		$ 1,705

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Salisbury is the bank holding company for Salisbury Bank (the “Bank”), a State chartered commercial bank. Salisbury's activity is currently limited to the holding of the Bank's outstanding capital stock and the Bank is Salisbury's only subsidiary and its primary investment. The Bank is a Connecticut chartered and Federal Deposit Insurance Corporation (the "FDIC") insured commercial bank headquartered in Lakeville, Connecticut. The Bank's principal business consists of attracting deposits from the public and using such deposits, with other funds, to make various types of loans and investments. The Bank conducts its business through thirteen full-service offices located in Litchfield, Berkshire and Dutchess and Orange Counties in Connecticut, Massachusetts and New York, respectively. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. The following is a summary of significant accounting policies: Principles of Consolidation The consolidated financial statements include those of Salisbury and its subsidiary after elimination of all inter-company accounts and transactions. Basis of Financial Statement Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. 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 statement of condition, 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 and impairment of goodwill and intangibles. Certain reclassifications have been made to the 2014 and 2013 financial statements to make them consistent with the 2015 presentation. Cash and Cash Equivalents Cash and cash equivalents include cash and balances due from banks. Due to the nature of cash and cash equivalents, Salisb ury estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions. In 2015, a 3% reserve ratio was assessed on net transaction accounts over $14.5 million, up to and including $103.6 million (which may be adjusted by the FRB). A 10% reserve ratio was assessed on net transaction accounts in excess of $103.6 million (which may be adjusted by the FRB). I n 2014, 3% reserve ratio assessed on net transaction accounts over $13.3 million up to and including $89.0 million A 10% reserve ratio assessed on net transaction accounts in excess of $89.0 Securities Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair market value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The OTTI related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses. Federal Home Loan Bank of Boston Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The 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 December 31, 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 receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms. 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 Accounting Standards Codification (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. 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. Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. While management believes that the allowance for loan losses is adequate, the allowance is an estimate, and ultimate losses may vary from management’s estimate. Future additions to the allowance may also be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. Loans collectively evaluated for impairment This component of the allowance for loan losses is stratified by the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and home equity lines of credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. Management’s general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in Salisbury’s policies or methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate - Salisbury generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate - Loans in this segment are primarily income-producing properties throughout Salisbury’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in this segment. For commercial loans management annually obtains business and personal financial statements, tax returns, and, where applicable, rent rolls, and continually monitors the repayment of these loans. Construction loans - Loans in this segment are primarily residential construction loans which typically roll into a permanent residential mortgage loan when construction is completed, or commercial construction which consist primarily of owner occupied commercial construction projects. Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, has an effect on the credit quality in this segment. Municipal loans – Loans in this segment are extensions of credit to municipal and other governmental entities throughout Salisbury’s market area. The bank-qualified, tax-exempt loans are backed by the full faith and credit of the borrowing entity with taxing or appropriating authority, as appropriate. Maturities range from one year for bond anticipation notes to twenty years for long-term project finance. The ability of the borrower to pay may be affected by an economic downturn resulting in a severe reduction in tax or other revenues coupled with the depletion of an entity’s reserve liquidity. Historical default rates for bank-qualified (small issuer) general obligation municipal credit facilities are near 0%. Consumer loans - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Loans individually evaluated for impairment This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans (except consumer loans and homogeneous residential real estate loans) by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Salisbury periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Other Real Estate Owned (“OREO”) Salisbury's loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. In addition, various regulatory agencies, as an integral part of their examination process, periodically review Salisbury's allowance for loan losses and valuation of OREO. Such agencies may require Salisbury to recognize additions to the allowance or write-downs based on their judgments of information available to them at the time of their examination. OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are initially transferred at fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. As of December 31, 2015 the recorded investment in residential mortgage loans collateralized by residential real estate that were in the process of foreclosure was $2.9 million. Income Taxes Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. A valuation allowance is established against deferred tax assets when, based upon all available evidence, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. Bank Premises and Equipment Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. Guidelines for expected useful life are as follows: • Building /Improvements – 39 years • Land Improvements – 15 years • Furniture and Fixtures – 7 years • Computer Equipment – 5 years • Softwar Intangible Assets Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in business combinations accounted for using the acquisition method of accounting. Salisbury’s assets at December 31, 2015, and 2014, include goodwill of $2,358,000 arising from the purchase of a branch office in 2001, $7,152,000 arising from the 2004 acquisition of Canaan National Bancorp, Inc., $319,000 arising from the 2007 purchase of a branch office in New York State, and $2,723,000 arising from the acquisition of Riverside Bank in December 2014. See Note 8. On an annual basis management assesses intangible assets for impairment, and for the year ending December 31, 2015, concluded there was no impairment. If a permanent loss in value is indicated, an impairment charge to income will be recognized. Statements of Cash Flows For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions. Computation of Earnings per Share The Company 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. Recent Accounting Pronouncements In May 2014 and August 2015, respectively, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and 2015-14, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 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 ASU 2015-14 defer the effective date of ASU 2014-09 to 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 ASU 2014-09 and 2015-14 to determine if they will have an impact on its consolidated financial statements. 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 adopted this guidance in 2015 and presented the costs related to the issuance of subordinated debt as a direct reduction of the carrying amount of the debt. 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 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. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to: i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The guidance also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The guidance is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk. Salisbury is currently evaluating the impact of the new standard on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides new guidance related to accounting for leases. The ASU requires that an entity recognize substantially all leasing activities on its balance sheet. Specifically, a lessee will be required to recognize a l

MERGERS AND ACQUISITIONS

MERGERS AND ACQUISITIONS	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
MERGERS AND ACQUISITIONS	NOTE 2 – MERGERS AND ACQUISITIONS On December 5, 2014, the Company acquired Riverside Bank. Riverside Bank operated four banking offices serving Dutchess, Ulster and Orange Counties in New York, and was merged with and into the Bank. This business combination is an extension of the Salisbury franchise and the goodwill recognized results from the expected synergies and earnings accretion from this combination, including future cost savings related to Riverside’s operations. The combination was negotiated between the companies and was approved unanimously by their respective boards of directors. Riverside Bank shareholders received 1,001,485 shares of the Company common stock. On the acquisition date, Riverside Bank had 741,876 outstanding common shares. Salisbury exchanged its stock in a ratio of 1.35 shares of the Company’s common stock for each share of Riverside Bank stock. The 1,001,485 shares of Salisbury common stock issued in this exchange were valued at $27.19 per share based on the closing price of Salisbury posted on December 5, 2014 resulting in consideration paid of $27 million. Salisbury paid $1.0 thousand in cash consideration to settle all fractional shares outstanding of Riverside Bank. The results of Riverside Bank’s operations are included in Salisbury’s Consolidated Statements of Income from the date of acquisition. The assets and liabilities in the Riverside Bank acquisition were recorded at their fair value based on the utilization of third party specialists and management’s best estimate using information available at the date of acquisition. Consideration paid, and fair values of Riverside Bank’s assets acquired and liabilities assumed are summarized in the following tables: Consideration Paid: (In thousands) Amount Salisbury Bancorp common stock issued to Riverside Bank common stockholders $ 27,230 Cash consideration paid for fractional shares 1 Riverside stock options, vested upon acquisition 20 Total consideration paid $ 27,251 Recognized amounts of identifiable assets acquired and liabilities Fair Value As Recorded assumed, at fair value: As Acquired Adjustment at Acquisition Cash and cash equivalents $ 18,650 $ — $ 18,650 Investment securities 11,820 (78 ) (a) 11,742 Loans 204,398 (8,093 ) (b) 196,305 Premises and equipment 1,046 497 (c) 1,543 Other assets 7,006 — 7,006 Core deposit intangible — 2,215 2,215 Deposits (210,559 ) (641 ) (d) (211,200 ) Other liabilities (1,733 ) — (1,733 ) Total identifiable net assets $ 30,628 $ (6,100 ) $ 24,528 Goodwill — — $ 2,723 Explanation of Certain Fair Value Adjustments (a) The adjustment represents the decrease in the book value of investments to their estimated fair value based on fair values on the date of acquisition. (b) The adjustment represents the write down of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. Loans that met the criteria and are being accounted for in accordance with ASC 310-30 had a carrying amount of $13.7 million at acquisition. Non-impaired loans not accounted for under ASU 310-30 had a carrying value of $190.7 million at acquisition. (c) The adjustment represents the appraised value of the land and building acquired in the acquisition. The land and building were recorded as fixed assets and the building will be amortized over its remaining useful life. (d) The adjustment is necessary because the weighted average interest rate of deposits exceeded the cost of similar funding at the time of acquisition. Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired from Riverside Bank were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, to estimate the fair value, Salisbury analyzed the value of the underlying collateral of the loans, assuming the fair values of the loans were derived from the eventual sale of the collateral. Those values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of Riverside Bank’s allowance for credit losses associated with the loans that were acquired as the loans were recorded at fair value upon acquisition. Information about the acquired loan portfolio subject to purchased credit impaired loan accounting guidance (ASC 310-30) as of December 5, 2014 (acquisition date) is as follows (in thousands): (In thousands) ASC 310-30 Loans Contractually required principal and interest at acquisition $ 16,209 Contractual cash flows not expected to be collected (nonaccretable discount) (4,288 ) Expected cash flows at acquisition 11,921 Interest component of expected cash flows (accretable discount) (1,293 ) Fair value of acquired loans $ 10,628 Loans and Debt Securities Acquired with Deteriorated Credit Quality. (In thousands) 2015 2014 Balance at beginning of period $ 1,242 $ — Acquisitions — 1,293 Accretion (1,109 ) (51 ) Reclassification from non-accretable to accretable 1,768 — Balance at end of period $ 1,901 $ 1,242 At December 31, 2015 and 2014, Salisbury ASC 310-30 loans had an outstanding balance totaling $10.9 million and $13.3 million, respectively. The carrying value was $8.9 million and $10.6 million, respectively. The results of operations of Riverside Bank since the acquisition date of December 5, 2014, have been included in Salisbury’s consolidated financial statements. The following pro forma information assumes that the acquisition occurred at the beginning of the earliest period presented. Years ended December 31, (in thousands) 2014 2013 Total revenue $ 39,841 $ 39,640 Net income 6,411 7,136 Net income available to common shareholders 6,245 6,975 Earnings per share Basic $ 2.26 $ 2.59 Diluted 2.24 2.57 The goodwill is not amortized for book purposes, and is not deductible for tax purposes. The fair value of savings and transaction deposit accounts acquired from Riverside Bank was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. Direct merger, acquisition and integration costs of the Riverside Bank acquisition were expensed as incurred, and totaled $2.0 million in 2014 and $312,000 in 2013.

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 3 - SECURITIES The composition of securities is as follows: (in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (in thousands) Amortized Gross un- realized gains Gross un- realized losses 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 prior years. Sales of securities available-for-sale and gains realized are as follows: Years ended December 31, (in thousands) 2015 2014 2013 Proceeds $ 3,861 $ — $ — Gains realized 180 — — Losses realized (27 ) — — Net gains realized 153 — — Income tax provision 52 — — The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the dates presented: Less than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2015 Available-for-sale Mortgage-backed securities $ 14,750 $ 83 $ 53 $ — $ 14,803 $ 83 Collateralized mortgage obligations Non-agency 237 — 226 7 463 7 CRA mutual funds 764 2 — — 764 2 Total temporarily impaired securities $ 15,751 $ 85 $ 279 $ 7 $ 16,030 $ 92 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 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: December 31, 2015 (dollars in thousands) Amortized cost Fair value Yield(1) U.S. Treasury notes Within 1 year $ 2,499 $ 2,541 3.00 % Total 2,499 2,541 3.00 % U.S. Government agency notes After 1 year but within 5 years 498 498 0.88 % Total 498 498 0.88 % Municipal bonds Within 1 year 254 254 5.60 % After 1 year but within 5 years 1,217 1,225 5.57 % After 5 years but within 10 years 1,894 1,922 6.38 % After 10 years but within 15 years 2,632 2,708 6.30 % After 15 years 23,755 24,276 6.68 % Total 29,752 30,385 6.57 % Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 31,900 32,202 2.96 % Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 2,002 2,014 1.02 % Non-agency 4,487 4,948 4.20 % SBA bonds 3,065 3,096 2.93 % CRA mutual funds 766 764 2.07 % Preferred stock 20 246 2.26 % Securities available-for-sale $ 74,989 $ 76,694 4.47 % (1) Yield is based on amortized cost. 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 December 31, 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 maturity, and does not intend to sell these securities. Therefore, management does not consider the sixteen securities with unrealized losses at December 31, 2015 to be OTTI. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at December 31, 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 December 31, 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. CRA mutual funds consist of an investment in a fixed income mutual fund ($764,000 in total fair value and $2,000 in total unrealized losses). The severity of the impairment (fair value is approximately 0.26% less than cost) and the duration of the impairment correlates with interest rates in 2015. Salisbury evaluated the near-term prospects of this fund in relation to the severity and duration of the impairment. Based on that evaluation, Salisbury does not consider this investment to be other-than-temporarily impaired at December 31, 2015. The Company did not recognize any OTTI during the years ended December 31, 2015, 2014 and 2013.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
LOANS	NOTE 4 - LOANS The composition of loans receivable and loans held-for-sale is as follows: Years ended December 31, 2015 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 261,495 $ 7,799 $ 269,294 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,411 6,136 12,547 5,556 8,735 14,291 Construction of residential 1-4 family 7,998 — 7,998 2,004 — 2,004 Home equity lines of credit 35,017 — 35,017 34,627 — 34,627 Residential real estate 310,921 13,935 324,856 294,445 17,958 312,403 Commercial 129,446 88,829 218,275 98,498 97,899 196,397 Construction of commercial 6,525 4,874 11,399 18,602 9,045 27,647 Commercial real estate 135,971 93,703 229,674 117,100 106,944 224,044 Farm land 3,193 — 3,193 3,239 — 3,239 Vacant land 8,563 — 8,563 9,342 — 9,342 Real estate secured 458,648 107,638 566,286 424,126 124,902 549,028 Commercial and industrial 74,657 46,764 121,421 49,204 68,714 117,918 Municipal 9,566 — 9,566 6,083 — 6,083 Consumer 6,195 77 6,272 4,334 122 4,456 Loans receivable, gross 549,066 154,479 703,545 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,189 — 1,189 1,203 — 1,203 Allowance for loan losses (5,481 ) (235 ) (5,716 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 544,774 $ 154,244 $ 699,018 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 763 $ — $ 763 $ 568 $ — $ 568 Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury’s loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. Salisbury also has entered into loan participation agreements with other banks and purchased a portion of the other banks’ originated loans. Purchased amounts are accounted for as loans without recourse to the originating bank. Salisbury and its originating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The originating banks service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At December 31, 2015 and 2014, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $63.0 million and $48.0 million, respectively. During 2015, Salisbury sold participation interests in 3 loans with gross outstanding loan balances of $37.3 million; retaining $13.8 million in net balances. Additionally, Salisbury purchased a participant share in 11 loans with outstanding balances of $9.4 million. There are construction loans in the portfolio that have not been fully drawn as of December 31, 2015. Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in northwestern Connecticut, New York and Massachusetts towns, 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. All 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. Credit Quality Salisbury uses credit risk ratings to determine its allowance for loan losses. Credit risk ratings categorize loans by common financial and structural characteristics that measure the credit strength of a borrower. The rating model has eight risk rating grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 4 are pass ratings and 5 through 8 are criticized as defined by the regulatory agencies. Risk ratings are assigned to differentiate risk within the portfolio and are reviewed on an ongoing basis and revised, if needed, to reflect changes in the borrowers' current financial position and outlook, risk profiles and the related collateral and structural positions. Loans rated as "special mention" possess credit deficiencies or potential weaknesses deserving management’s close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. Loans rated as "substandard" are loans where the Bank’s position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. Loans rated "doubtful" have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. Loans classified as "loss" are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank’s loan portfolio is examined periodically by its regulatory agencies, the FDIC and the Connecticut Department of Banking. The composition of loans receivable by risk rating grade is as follows: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 248,027 $ 6,933 $ 6,444 $ 91 $ — $ 261,495 Residential 5+ multifamily 4,507 1,815 89 — — 6,411 Construction of residential 1-4 family 7,111 887 — — — 7,998 Home equity lines of credit 33,687 545 785 — — 35,017 Residential real estate 293,332 10,180 7,318 91 — 310,921 Commercial 120,903 4,801 3,742 — — 129,446 Construction of commercial 6,525 — — — — 6,525 Commercial real estate 127,428 4,801 3,742 — — 135,971 Farm land 2,162 — 1,031 — — 3,193 Vacant land 5,567 69 2,927 — — 8,563 Real estate secured 428,489 15,050 15,018 91 — 458,648 Commercial and industrial 72,887 1,214 555 1 — 74,657 Municipal 9,566 — — — — 9,566 Consumer 6,171 18 6 — — 6,195 Loans receivable, gross $ 517,113 $ 16,282 $ 15,579 $ 92 $ — $ 549,066 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 6,824 $ 199 $ 776 $ — $ — $ 7,799 Residential 5+ multifamily 6,136 — — — — 6,136 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,960 199 776 — — 13,935 Commercial 80,406 4,005 4,418 — — 88,829 Construction of commercial 4,612 — 262 — — 4,874 Commercial real estate 85,018 4,005 4,680 — — 93,703 Farm land — — — — — — Vacant land — — — — — — Real estate secured 97,978 4,204 5,456 — — 107,638 Commercial and industrial 45,363 875 443 83 — 46,764 Municipal — — — — — — Consumer 71 6 — — — 77 Loans receivable, gross $ 143,412 $ 5,085 $ 5,899 $ 83 $ — $ 154,479 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 lines of 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 lines of 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 significant decrease, totaling $14.6 million, in Special Mention loans resulted primarily from various relationship upgrades to a pass rating. The largest relationship upgraded was $4.9 million, or 33%, of the total. The ten largest upgraded relationships equaled $10.8 million or 74% of total upgrades. Additionally, approximately $1.9 million of Special Mention loans paid off in 2015. Upgrades of smaller balance relationships, less than $300,000 each, accounted for the remainder of the change. The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2015 Residential 1-4 family $ 254,152 $ 1,781 $ 1,931 $ 683 $ 973 $ 1,975 $ 5,562 $ — $ 5,671 Residential 5+ multifamily 6,254 — 68 — — 89 157 — 89 Construction of residential 1-4 family 7,826 172 — — — — — — — Home equity lines of credit 33,744 363 306 101 113 390 910 — 601 Residential real estate 301,976 2,316 2,305 784 1,086 2,454 6,629 — 6,361 Commercial 126,440 1,618 474 — 233 681 1,388 — 2,349 Construction of commercial 6,525 — — — — — — — — Commercial real estate 132,965 1,618 474 — 233 681 1,388 — 2,349 Farm land 2,172 298 — — — 723 723 — 1,031 Vacant land 5,734 — 6 — — 2,823 2,829 — 2,855 Real estate secured 442,847 4,232 2,785 784 1,319 6,681 11,569 — 12,596 Commercial and industrial 73,698 906 35 — — 18 53 — 461 Municipal 9,566 — — — — — — — — Consumer 6,096 61 21 17 — — 38 — 80 Loans receivable, gross $ 532,207 $ 5,199 $ 2,841 $ 801 $ 1,319 $ 6,699 $ 11,660 $ — $ 13,137 Acquired Loans Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038 Business Activities Loans Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual 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 lines of 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 Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual 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 lines of 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 non-accrual loans that would have been recorded as additional interest income for the years ended December 31, 2015, 2014 and 2013 had the loans been current in accordance with their original terms totaled $1,089,000, $632,000 and $487,000, respectively. Troubled Debt Restructurings (TDRs) Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans December 31, 2015 December 31, 2014 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 3 $ 1,071 $ 1,071 4 $ 308 $ 308 Land — — — — — — Commercial real estate 1 294 294 4 1,076 1,076 Construction of commercial — — — 1 131 131 Consumer — — — — — — Commercial and industrial — — — — — — HELOC 1 35 35 — — — Troubled debt restructurings 5 $ 1,400 $ 1,400 9 $ 1,515 $ 1,515 Rate reduction and term extension 1 $ 294 $ 294 — $ — $ — Interest only pursuant to sale — — — 1 24 24 Interest only and term extension — — — 1 48 48 Interest only pursuant to sale and term extension — — — 1 230 230 Interest only — — — 1 30 30 Debt consolidation and term extension 1 148 148 2 447 447 Rate reduction — — — — — — Rate reduction interest only — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation 1 48 48 1 399 399 Rate reduction and debt consolidation — — — — — — Term extension 2 910 910 2 337 337 Troubled debt restructurings 5 $ 1,400 $ 1,400 9 $ 1,515 $ 1,515 Acquired Loans December 31, 2015 December 31, 2014 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — — $ — $ — Land — — — — — — Commercial real estate 1 184 184 1 571 571 Construction of commercial — — — — — — Consumer — — — — — — Commercial and industrial — — — — — — HELOC — — — — — — Troubled debt restructurings 1 $ 184 $ 184 1 $ 571 571 Rate reduction and term extension 1 $ 184 $ 184 — $ — $ — Interest only pursuant to sale — — — — — — Interest only and term extension — — — — — — Interest only pursuant to sale and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Rate reduction — — — 1 571 571 Rate reduction interest only — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — — — — Rate reduction and debt consolidation — — — — — — Term extension — — — — — — Troubled debt restructurings 1 $ 184 $ 184 1 $ 571 $ 571 Six loans were restructured during 2015. No concessions have been made with respect to loans that subsequently defaulted in the current reporting period. Salisbury currently does not have any commitments to lend additional funds to TDR loans. The following table discloses the recorded investment and number of modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period. All TDR loans are included in the Impaired Loan schedule and are individually evaluated. There were no modifications made in 2015 that subsequently defaulted in 2015. Modifications that Subsequently Defaulted For the twelve months ending December 31, 2014 Quantity Balance Troubled Debt Restructurings Residential 1-4 family 2 $ 38 Commercial real estate (1) 1 — Total 3 $ 38 (1) Loan paid off as of December 31, 2014 Impaired loans Loans individually evaluated for impairment (impaired loans) are loans for which Salisbury does not expect to collect all principal and interest in accordance with the contractual terms of the loan. Impaired loans include all modified loans classified as TDRs and loans on non-accrual status. The components of impaired loans are as follows: Business Activities Loans Years ended December 31, (in thousands) 2015 2014 Non-accrual loans, excluding troubled debt restructured loans $ 10,093 $ 6,752 Non-accrual troubled debt restructured loans 3,044 628 Accruing troubled debt restructured loans 6,802 9,189 Total impaired loans $ 19,939 $ 16,569 Commitments to lend additional amounts to impaired borrowers $ — $ — Acquired Loans Years ended December 31, (in thousands) 2015 2014 Non-accrual loans, excluding troubled debt restructured loans $ 3,038 $ 2,493 Non-accrual troubled debt restructured loans — — Accruing troubled debt restructured loans 742 571 Total impaired loans $ 3,780 $ 3,064 Commitments to lend additional amounts to impaired borrowers $ — $ — Allowance for Loan Losses Changes in the allowance for loa n losses are as follows: Business Activities Loans Acquired Loans December 31, 2015 December 31, 2015 (In thousands) Beginning Charge- Reco- Ending Beginning Charge- Reco- Ending balance Provision offs veries balance balance Provision offs veries balance Residential $ 2,306 $ 746 $ (698 ) $ 123 $ 2,477 $ — $ 79 $ — $ — $ 79 Commercial 1,697 (18 ) (214 ) 1 1,466 7 136 (16 ) 5 132 Land 164 157 (133 ) — 188 — — — — — Real estate 4,167 885 (1,045 ) 124 4,131 7 215 (16 ) 5 211 Commercial and industrial 583 (295 ) (69 ) 464 683 14 (24 ) — 34 24 Municipal 61 — — — 61 — — — — — Consumer 117 71 (82 ) 18 124 — (8 ) — 8 — Unallocated 409 73 — — 482 — — — — — Totals $ 5,337 $ 734 $ (1,196 ) $ 606 $ 5,481 $ 21 $ 183 $ (16 ) $ 47 $ 235 December 31, 2014 December 31, 2014 (In thousands) Beginning Charge- Reco- Ending Beginning Charge- Reco- Ending balance Provision offs veries balance balance Provision offs veries balance Residential $ 1,938 $ 657 $ (307 ) $ 18 $ 2,306 $ — $ — $ — $ — $ — Commercial 1,385 355 (84 ) 41 1,697 — 7 — — 7 Land 226 58 (121 ) 1 164 — — — — — Real estate 3,549 1,070 (512 ) 60 4,167 — 7 — — 7 Commercial and industrial 561 25 (19 ) 16 583 — 14 — — 14 Municipal 43 18 — — 61 — — — — — Consumer 105 16 (28 ) 24 117 — — — — — Unallocated 425 (16 ) — — 409 — — — — — Totals $ 4,683 $ 1,113 $ (559 ) $ 100 $ 5,337 $ — $ 21 $ — $ — $ 21 The composition of loans receivable and the al Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 253,156 $ 1,415 $ 8,339 $ 610 $ 261,495 $ 2,025 Residential 5+ multifamily 4,640 33 1,771 — 6,411 33 Construction of residential 1-4 family 7,998 65 — — 7,998 65 Home equity lines of credit 34,298 286 719 68 35,017 354 Residential real estate 300,092 1,799 10,829 678 310,921 2,477 Commercial 125,173 1,265 4,273 113 129,446 1,378 Construction of commercial 6,403 87 122 1 6,525 88 Commercial real estate 131,576 1,352 4,395 114 135,971 1,466 Farm land 2,162 23 1,031 14 3,193 37 Vacant land 5,486 122 3,077 29 8,563 151 Real estate secured 439,316 3,296 19,332 835 458,648 4,131 Commercial and industrial 74,131 673 526 10 74,657 683 Municipal 9,566 61 — — 9,566 61 Consumer 6,115 124 80 — 6,195 124 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 7,023 $ — $ 776 $ 79 $ — $ — $ 7,799 $ 79 Residential 5+ multifamily 6,136 — — — — — 6,136 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 13,159 — 776 79 — — 13,935 79 Commercial 81,300 19 2,742 107 4,787 2 88,829 128 Construction of commercial 4,612 4 262 — — — 4,874 4 Commercial real estate 85,912 23 3,004 107 4,787 2 93,703 132 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 99,071 23 3,780 186 4,787 2 107,638 211 Commercial and industrial 45,650 24 — — 1,114 — 46,764 24 Municipal — — — — — — — — Consumer 61 — — — 16 — 77 — Unallocated allowance — — — — — — — — Totals $ 144,782 $ 47 $ 3,780 $ 186 $ 5,917 $ 2 $ 154,479 $ 235 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 lines of 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 Totals $ 467,178 $ 3,792 $ 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 lines of 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 Collectively evaluated Individually evaluated Total portfolio December 31, 2015 (in thousands) Loans Allowance Loans Allowance Loans Allowance Performing loans $ 527,905 $ 4,110 $ — $ — $ 527,905 $ 4,110 Potential problem loans 1,223 44 — — 1,223 44 Impaired loans — — 19,938 845 19,938 845 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans Collectively evaluated Individually evaluated Total portfolio December 31, 2015 (in thousands) Loans Allowance Loans Allowance Loans Allowance Performing loans $ 148,580 $ 46 $ — $ — $ 148,580 $ 46 Potential problem loans 2,119 2 — — 2,119 2 Impaired loans — — 3,780 187 3,780 187 Unallocated allowance — — — — — — Totals $ 150,699 $ 48 $ 3,780 $ 187 $ 154,479 $ 235 Business Activities Loans Collectively evaluated Individually evaluated Total portfolio December 31, 2014 (in thousands) 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 Collectively evaluated Individually evaluated Total portfolio December 31, 2014 (in thousands) 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 fair 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 December 31, 2015 Residential $ 7,482 $ 8,094 $ 6,449 $ 610 $ 167 $ 2,628 $ 2,770 $ 3,089 $ 98 Home equity lines of credit 535 659 260 68 9 184 199 423 2 Residential real estate 8,017 8,753 6,709 678 176 2,812 2,969 3,512 100 Commercial 3,131 3,405 2,850 113 123 1,142 1,393 1,624 49 Construction of commercial 122 128 9 1 7 — — 116 — Farm land 733 773 400 14 25 298 352 461 — Vacant land 2,870 3,836 3,015 29 3 207 241 72 9 Real estate secured 14,873 16,895 12,983 835 334 4,459 4,955 5,785 158 Commercial and industrial 95 98 145 10 4 431 481 383 22 Consumer — — — — — 80 108 12 1 Totals $ 14,968 $ 16,993 $ 13,128 $ 845 $ 338 $ 4,970 $ 5,544 $ 6,180 $ 181 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, 2015 Residential $ 599 $ 716 $ 273 $ 79 $ — $ 177 $ 177 $ 376 $ 7 Home equity lines of credit — — — — — — — — — Residential real estate 599 716 273 79 — 177 177 376 7 Commercial 675 826 698 107 34 2,067 2,843 2,011 32 Construction of commercial — — — — — 262 273 167 22 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,274 1,542 971 186 34 2,506 3,293 2,554 61 Commercial and industrial — — 6 — — — 4 — — Consumer — — — — — — — — — Totals $ 1,274 $ 1,542 $ 977 $ 186 $ 34 $ 2,506 $ 3,297 $ 2,554 $ 61 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 $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity lines of 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 $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity lines of 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

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	12 Months Ended
	Dec. 31, 2015
Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 5 - MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the consolidated balance sheets. Balances of loans serviced for others and the fair value of mortgage servicing rights are as follows: December 31, (in thousands) 2015 2014 Residential mortgage loans serviced for others $ 130,816 $ 138,106 Fair value of mortgage servicing rights 1,315 1,568 Changes in mortgage servicing rights are as follows: Years ended December 31, (in thousands) 2015 2014 2013 Mortgage Servicing Rights Balance, beginning of period $ 694 $ 980 $ 1,075 Originated 148 17 294 Amortization (1) (356 ) (303 ) (389 ) Balance, end of period 486 694 980 Valuation Allowance Balance, beginning of period — (15 ) (38 ) (Increase) decrease in impairment reserve (1) (3 ) 15 23 Balance, end of period (3 ) — (15 ) Mortgage servicing rights, net $ 483 $ 694 $ 965 (1) Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income.

PLEDGED ASSETS

PLEDGED ASSETS	12 Months Ended
	Dec. 31, 2015
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 6 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. December 31, (in thousands) 2015 2014 Securities available-for-sale (at fair value) $ 67,750 $ 69,055 Loans receivable 153,269 157,581 Total pledged assets $ 221,019 $ 226,636 At December 31, 2015 securities were pledged as follows: $60.4 million to secure public deposits, $7.3 million to secure repurchase agreements and $0.1 million to secure FHLBB and FRB advances. Additionally, loans receivable are pledged to secure FHLBB advances and credit facilities.

BANK PREMISES AND EQUIPMENT

BANK PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
BANK PREMISES AND EQUIPMENT	NOTE 7 - BANK PREMISES AND EQUIPMENT The components of premises and equipment are as follows: December 31, (in thousands) 2015 2014 Land $ 2,593 $ 2,237 Buildings and improvements 11,514 11,070 Leasehold improvements 1,682 1,953 Capital lease 425 425 Furniture, fixtures, equipment and software 6,220 5,869 Construction in progress, including land acquisition and development 185 257 Total cost 22,619 21,811 Accumulated depreciation and amortization (8,312 ) (7,380 ) Bank premises and equipment, net $ 14,307 $ 14,431

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	NOTE 8 - GOODWILL AND INTANGIBLE ASSETS Changes in the carrying values of goodwill and intangible assets were as follows: Years ended December 31, (in thousands) 2015 2014 2013 Goodwill (1) Balance, beginning of period $ 12,552 $ 9,829 $ 9,829 Additions — 2,723 — Impairment — — — Balance, end of period $ 12,552 $ 12,552 $ 9,829 Core Deposit Intangibles Cost, beginning of period $ 5,248 $ 2,543 $ 2,543 Union Savings branch purchase — 490 — Riverside Bank merger — 2,215 — Impairment — — — Cost, end of period 5,248 5,248 2,543 Amortization, beginning of period (2,258 ) (1,967 ) (1,745 ) Amortization (652 ) (291 ) (222 ) Amortization, end of period (2,910 ) (2,258 ) (1,967 ) Core deposit intangibles, net $ 2,338 $ 2,990 $ 576 (1) Not subject to amortization. In June 2014, Salisbury acquired the Sharon, Connecticut branch office of Union Savings Bank, and assumed approximately $18.2 million in deposits and acquired approximately $63,000 in loans secured by deposits. Salisbury realized no goodwill and assigned a core deposit intangible of $490,000 to the acquisition. In December 2014, Salisbury acquired Riverside Bank of Poughkeepsie, NY, which had approximately $211.2 million in deposits and $196.3 million in loans, and a property located at 11 Garden Street, Poughkeepsie, NY. Salisbury realized goodwill of $2.7 million and assigned a core deposit intangible of $2.2 million to the acquisition. Salisbury evaluated its goodwill and intangible assets as of December 31, 2015 and 2014, and found no impairment. The core deposit intangibles were recorded as identifiable intangible assets and are being amortized over ten years using the sum-of-the-years’ digits method. Estimated annual amortization expense of core deposit intangibles is as follows: Years ended December 31, (in thousands) CDI amortization 2016 $ 601 2017 461 2018 342 2019 288 2020 234 2021 180 2022 130 2023 78 2024 24

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
DEPOSITS	NOTE 9 - DEPOSITS Scheduled maturities of time certificates of deposit are as follows: Years ended December 31, (in thousands) CD maturities 2016 $ 71,932 2017 20,124 2018 10,319 2019 12,220 2020 7,900 2021 1,799 Total $ 124,294 The total amount and scheduled maturities of time certificates of deposit in denominations of $250,000 or more were as follows: Years ended December 31, (in thousands) 2015 2014 Within three months $ 2,520 $ 2,406 After three through six months 2,624 3,568 After six through twelve months 2,929 2,900 Over one year 3,195 4,248 Total $ 11,268 $ 13,122

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	NOTE 10 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Salisbury enters into overnight and short-term repurchase agreements with its customers. Securities sold under repurchase agreements are as follows: December 31, (in thousands) 2015 2014 Repurchase agreements, ending balance $ 3,914 $ 4,163 Repurchase agreements, average balance during period 4,111 4,598 Book value of collateral 7,287 10,034 Market value of collateral 7,349 10,729 Weighted average rate during period 0.17 % 0.18 % Weighted average maturity 1 day 1 day

FEDERAL HOME LOAN BANK OF BOSTO

FEDERAL HOME LOAN BANK OF BOSTON ADVANCES	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
FEDERAL HOME LOAN BANK OF BOSTON ADVANCES	NOTE 11 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS Federal Home Loan Bank of Boston (“FHLBB”) advances are as follows: December 31, 2015 December 31, 2014 Years ended December 31, (dollars in thousands) Total Callable (1) Rate (2) Total Callable (1) Rate (2) 2015 $ — $ — — % $ 791 $ — 3.88 % 2016 21 — 5.06 15,022 15,000 4.05 2017 — — — 6,000 6,000 3.99 2018 7,000 — 3.69 7,000 — 3.69 2019 — — — — — — 2020 14,337 — 2.08 — — — 2021 5,621 — 2.39 — — Total $ 26,979 $ — 2.58 % $ 28,813 $ 21,000 3.95 % (1) Net of modification costs (2) Represents the portion of advances that are callable. Callable advances are presented by scheduled maturity. Callable advances are callable quarterly or one time callable by the FHLBB. (3) Weighted average rate based on scheduled maturity dates. In addition to outstanding FHLBB advances, Salisbury has additional available borrowing capacity, based on current capital stock levels, of $75.6 million and access to an unused FHLBB line of credit of $3.5 million at December 31, 2015. Advances from the FHLBB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one-to-four family properties, certain unencumbered investment securities and other qualified assets. In accordance with ASC 470-50, two advances were modified during the third quarter 2015. The modification extended $21 million in advances a weighted average 39 months. The following table sets forth certain information concerning short-term FHLBB advances: December 31, (dollars in thousands) 2015 2014 Highest month-end balance during period $ — $ 5,545 Ending balance — — Average balance during period — 664 Weighted average rate during period 0.00 % 0.29 % Subordinated Debentures: In December 2015, Salisbury completed the issuance of $10.0 million in aggregate principal amount of 6.00% Fixed to Floating Rate Subordinated Notes Due 2025 (the “Notes”) in a private placement transaction to various accredited investors including $500 thousand to certain of Salisbury’s related parties. The Notes have a maturity date of December 15, 2025 and bear interest at an annual rate of 6.00% from and including the original issue date of the Notes to, but excluding, December 15, 2020 or the earlier redemption date payable semi-annually in arrears on June 15 and December 15 of each year. Thereafter, from and including December 15, 2020 to, but excluding, December 15, 2025, the annual interest rate will be reset quarterly and equal to the three-month LIBOR, plus 430 basis points, as described in the Notes, payable quarterly, in arrears, on March 15, June 15, September 15 and December 15 of each year during the time that the Notes remain outstanding through December 15, 2025 or earlier redemption date. The notes are redeemable, without penalty, on or after December 15, 2020 and, in certain limited circumstances, prior to that date. As more completely described in the Notes, the indebtedness evidenced by the Notes, including principal and interest, is unsecured and subordinate and junior in right of Salisbury’s payments to general and secured creditors and depositors of the Bank. The Notes also contain provisions with respect to redemption features and other matters pertaining to the Notes. The Notes have been structured to qualify as Tier 2 capital for regulatory capital purposes, subject to applicable limitations. Subordinated debentures totaled $9.764 million at December 31, 2015, which includes $236 thousand of remaining unamortized debt issuance costs. The debt issuance costs are being amortized to maturity. The effective interest rate of the subordinated debentures is 6.24%.

NET DEFERRED TAX ASSETS AND INC

NET DEFERRED TAX ASSETS AND INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
NET DEFERRED TAX ASSETS AND INCOME TAXES	NOTE 12 – NET DEFERRED TAX ASSET AND INCOME TAXES Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. The components of the income tax provision were as follows: Years ended December 31, (in thousands) 2015 2014 2013 Federal $ 2,186 $ 1,057 $ 940 State 432 226 103 Current provision 2,618 1,283 1,043 Federal 896 (553 ) 215 State 49 (120 ) — Change in valuation allowance — — (349 ) Deferred expense (benefit) 945 (673 ) (134 ) Income tax provision $ 3,563 $ 610 $ 909 The following is a reconciliation of the expected federal statutory tax to the income tax provision: Years ended December 31, 2015 2014 2013 Income tax at statutory federal tax rate 34.00 % 34.00 % 34.00 % State tax, net of federal tax benefit 2.63 2.23 1.35 Tax exempt income and dividends received deduction (7.38 ) (30.22 ) (18.18 ) Expiration of capital loss carry forward 0.00 0.00 7.00 Merger/acquisition related costs 0.00 7.77 0.00 Other 0.39 5.71 1.04 Change in valuation allowance 0.00 0.00 (7.00 ) Effective income tax rates 29.64 % 19.49 % 18.21 % The components of Salisbury's net deferred tax assets are as follows: Years ended December 31, (in thousands) 2015 2014 Allowance for loan losses $ 1,877 $ 1,373 Interest on non-performing loans 343 236 Accrued deferred compensation 153 301 Post-retirement benefits 17 17 Other real estate owned write-downs — 72 Restricted stock awards 147 111 Mark-to-market purchase accounting adjustments 1,109 2,180 Write-down of securities 1,497 1,497 Alternative minimum tax — 540 Other 22 10 Gross deferred tax assets 5,165 6,337 Deferred loan costs, net (436 ) (538 ) Goodwill and core deposit intangible asset (853 ) (821 ) Accelerated depreciation (1,130 ) (1,209 ) Mortgage servicing rights (177 ) (255 ) Net unrealized holding gain on available-for-sale securities (580 ) (1,086 ) Gross deferred tax liabilities (3,176 ) (3,909 ) Net deferred tax asset $ 1,989 $ 2,428 Salisbury will only recognize a deferred tax asset when, based upon available evidence, realization is more likely than not. At December 31, 2012, a valuation allowance was maintained for the entire amount of the state deferred tax assets as a result of Connecticut legislation that permits banks to shelter certain mortgage income from the Connecticut corporation business tax through the use of a special purpose entity called a Passive Investment Company (“PIC”). In accordance with this legislation, in 2004, Salisbury formed a PIC, SBT Mortgage Service Corporation. Salisbury does not expect to pay state income tax in the foreseeable future unless there is a change in Connecticut law. Accordingly, Salisbury did not expect to be able to utilize the net operating losses generated by the PIC and established a valuation allowance. The capital loss carry-forwards generated by the PIC expired during 2013 and, as a result, the previously established valuation allowance was reversed. Salisbury’s policy is to provide for uncertain tax positions and the related interest and penalties (recorded as a component of income tax expense, if any) based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of December 31, 2015 and 2014, there were no material uncertain tax positions related to federal and state tax matters. Salisbury is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through December 31, 2015.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 13 – 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 and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. 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 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. The implementation of the capital conservation buffer is being phased in effective January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent January 1, 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 on January 1, 2015. As of December 31, 2015, the Company and the Bank met each of their capital requirements and the most recent notification from the FDIC categorized the Bank as “well-capitalized.” There are no conditions or events since that notification that management believes have changed the Bank’s category. To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets) Salisbury $ 92,030 13.51 % $ 54,509 8.0 % n/a — Bank 89,249 13.10 54,504 8.0 $ 68,131 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 40,878 6.0 n/a — Bank 83,340 12.23 40,878 6.0 54,504 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 30,659 4.5 n/a — Bank 83,340 12.23 30,659 4.5 44,285 6.5 Tier 1 Capital (to average assets) Salisbury 76,120 8.56 36,102 4.0 n/a — Bank 83,340 9.37 35,593 4.0 44,491 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 Restrictions on 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 qualified as Tier 1 capital for regulatory purposes and ranked senior to the Common Stock. During fourth quarter 2015, the Company completed an offering of $10 million of unsecured 6.00% fixed-to–floating rate subordinated notes due in 2025. The notes qualify as Tier II capital and are included as such within the Company's total risk-based capital ratio. The net proceeds of the offering, along with cash on hand, were used during the fourth quarter 2015 to redeem the $16 million of Senior Non-Cumulative Perpetual Preferred Stock issued in conjunction with the Company’s participation in the U.S. Treasury’s SBLF program.

PENSIONS AND OTHER BENEFITS

PENSIONS AND OTHER BENEFITS	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
PENSIONS AND OTHER BENEFITS	NOTE 14 – 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. Effective December 31, 2012, the pension plan was frozen, by amending the plan to freeze retirement benefits at current levels and discontinue future benefit accruals. The plan was terminated effective October 15, 2014. 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 which is discussed below. Years ended December 31, (in thousands) 2014 2013 Change in projected benefit obligation Benefit obligation at beginning of year $ 5,250 $ 6,039 Actuarial gain (977 ) (860 ) Service cost — — Interest cost 277 255 Curtailments and settlements — — Benefits paid (4,550 ) (184 ) Benefit obligation at end of year — 5,250 Change in plan assets Plan assets at estimated fair value at beginning of year 6,868 6,019 Actual return on plan assets (2,318 ) 1,033 Contributions by employer — — Curtailments and settlements — — Benefits paid (4,550 ) (184 ) Fair value of plan assets at end of year — 6,868 Funded status and recognized asset included in other assets on the balance sheet $ — $ 1,618 The components of amounts recognized in accumulated other comprehensive income, before tax effect, are as follows: Years ended December 31, (in thousands) 2014 2013 Unrecognized gain (loss) $ — $ 924 Total $ — $ 924 The accumulated benefit obligation for the plan was $5,250,000 at December 31, 2013. The discount rate used in determining the actuarial present value of the projected benefit obligation was 5.10% for 2013. The components of net periodic cost are as follows: Years ended December 31, (in thousands) 2014 2013 Service cost $ — $ — Interest cost on benefit obligation 277 255 Expected return on plan assets (297 ) (258 ) Amortization of net gain (loss) (1 ) — Net periodic benefit cost (21 ) (3 ) Additional amount recognized due to settlement or curtailment — — (21 ) (3 ) Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): Net actuarial loss (gain) 923 (1,635 ) Amortization of net gain (loss) 1 — Total recognized in other comprehensive loss (income) 924 (1,635 ) Total recognized in net periodic cost and other comprehensive loss (income) $ 903 $ (1,638 ) The discount rate used to determine the net periodic benefit cost was 5.10% for 2014 and 4.35% for 2013; and the expected return on plan assets was 4.35% for 2014 and 2013. In 2014, Salisbury terminated the Defined Benefit Pension Plan. Excess assets in the amount of $1,018,000 were distributed to the Bank’s Defined Contribution Plan (401k) and the Employee Stock Ownership Plan (ESOP) for future allocations to employees. The division of the excess pension assets was 66.67% to the 401k account (or $679,000) and 33.33% to the ESOP account (or $339,000). 401(k) Plan Salisbury offers a 401(k) Plan to eligible employees. Under the Plan, eligible participants may contribute a percentage of their pay subject to IRS limitations. Salisbury may make discretionary contributions to the Plan. Both the safe harbor and additional discretionary match, if any, vest immediately. Salisbury’s 401(k) Plan contribution expense for 2015, 2014 and 2013 was $679,000, $331,000 and $657,000, respectively. 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. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 20% after the second year, 20% per year thereafter, vesting at 100% after six full years of service. Benefit expenses totaled $323,000, $15,000, and $160,000 in 2015, 2014, and 2013, respectively. Other Retirement Plans Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury’s future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $672,000 and $581,000 at December 31, 2015, and 2014, respectively. Expense under this arrangement was $91,000 for 2015, $53,000 for 2014, and $49,000 for 2013. The Bank entered into a Supplemental Retirement Plan Agreement with its former Chief Executive Officer that provides for supplemental post retirement payments for a ten year period as described in the agreement. The related liability was $88,000 and $105,000 at December 31, 2015, and 2014, respectively. The related expense amounted to $7,000, $8,000 and $9,000 for 2015, 2014 and 2013, respectively. The Bank assumed a Supplemental Retirement Plan Agreement with a former Chief Executive Officer of Riverside Bank that provides for supplemental post retirement payments for a fifteen year period as described in the agreement. The related liability was $629,000 and $668,000 at December 31, 2015 and December 31, 2014, respectively. The related expense amounted to $21,000 and $2,000 for 2015 and 2014, respectively. 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 2015, 2014, and 2013, the Bank awarded six (6), seven (7) and six (6) Executives, respectively, with discretionary contributions to the plan. Expenses related to this plan amounted to $39,000 in 2015, $0 in 2014, and $60,000 for 2013. In 2014, there was also a recovery of $8,000 of prior expenses from contributions in 2013. Based on the Executive’s date of retirement, the vesting schedule ranges from 7.7% per year to 50% per year.

LONG TERM INCENTIVE PLAN

LONG TERM INCENTIVE PLAN	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
LONG TERM INCENTIVE PLAN	NOTE 15 - LONG TERM INCENTIVE PLAN The Board of Directors adopted the 2011 Long Term Incentive Plan (the “Plan”) on March 25, 2011, and the shareholders approved the Plan at the 2011 Annual Meeting. The Plan was amended on January 18, 2013 and again on January 29, 2016. The purpose of the Plan is to assist Salisbury and the Bank in attracting, motivating, retaining and rewarding employees, officers and directors by enabling such persons to acquire or increase a proprietary interest in Salisbury in order to strengthen the mutuality of interests between such persons and our shareholders, and providing such persons with stock-based long-term performance incentives to expend their maximum efforts in the creation of shareholder value. The terms of the Plan provide for grants of Directors Stock Retainer Awards, Stock Options, Stock Appreciation Rights (“SARs”), Restricted Stock, Restricted Stock Units, Performance Awards, Deferred Stock, Dividend Equivalents, and Stock or Other Stock-Based Awards that may be settled in shares of Common Stock, cash, or other property (collectively, “Awards”). On January 2, 2015, the Compensation Committee granted a total of 48,894 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,012 units to three Named Executive Officers. Mr. Cantele received 11,484 units, Mr. Davies received 5,963 units and Mr. White received 5,565 units. The units will vest on the third anniversary of the grant date. Under the Plan, the total number of shares of Common Stock reserved and available for issuance in the ten years following adoption of the Plan in connection with Awards under the Plan is 84,000 shares of Common Stock, which represented less than 5% of Salisbury’s outstanding shares of Common Stock at the time the Plan was adopted. Shares of Common Stock with respect to Awards previously granted under the Plan that are cancelled, terminate without being exercised, expire, are forfeited or lapse will again be available for issuance as Awards. Also, shares of Common Stock subject to Awards settled in cash and shares of Common Stock that are surrendered in payment of any Award or any tax withholding requirements will again be available for issuance as Awards. No more than 30,000 shares of Common Stock may be issued pursuant to Awards in any one calendar year. In addition, the Plan limits the total number of shares of Common Stock that may be awarded as Incentive Stock Options (“ISOs”) to 42,000 and the total number of shares of Common Stock that may be issued as Directors Stock Retainer Awards to 15,000. The Directors stock retainer awards were increased from 120 shares per year to 240 shares per year effective January 25, 2013. Effective January 29, 2016, the Directors stock retainer award was increased from 240 shares to 340 shares annually. In 2015, 2014, and 2013, there were 2,660, 2,160 and 1,330 shares issued, respectively, and the related compensation expense was $81,000, $65,000 and $34,000, respectively. The persons eligible to receive awards under the Plan are the officers, directors and employees of Salisbury and the Bank. The Plan is administered by the Human Resources and Compensation Committee (“Compensation Committee“) appointed by the Board. However, the Board may exercise any power or authority granted to the Compensation Committee. Subject to the terms of the Plan, the Compensation Committee or the Board is authorized to select eligible persons to receive Awards, determine the type and number of Awards to be granted and the number of shares of Common Stock to which Awards will relate, specify times at which Awards will be exercisable or settleable, including performance conditions that may be required as a condition thereof, set other terms and conditions of Awards, prescribe forms of Award agreements, interpret and specify rules and regulations relating to the Plan, and make all other determinations that may be necessary or advisable for the administration of the Plan. The Compensation Committee or the Board is authorized to grant (i) stock options, including (a) ISOs which can result in potentially favorable tax treatment to the participant, and (b) non-qualified stock options, and (ii) SARs entitling the participant to receive the amount by which the fair market value of a share of Common Stock on the date of exercise exceeds the grant price of the SAR. The exercise price per share subject to an option and the grant price of a SAR are determined by the Compensation Committee or the Board, but shall not be less than the fair market value of a share of Common Stock on the date of grant. The Compensation Committee or the Board is authorized, subject to limitations under applicable law, to grant to participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of Common Stock, as deemed to be consistent with the purposes of the Plan. These could include shares of Common Stock awarded purely as a “bonus” and not subject to any restrictions or conditions, other rights convertible or exchangeable into shares of Common Stock and Awards valued by reference to book value of the Common Stock or the performance of Salisbury or the Bank. The Compensation Committee or the Board may determine the terms and conditions of such Awards. The Compensation Committee or the Board may amend, modify or terminate the Plan or the Compensation Committee’s authority to grant Awards without further shareholder approval, except shareholder approval must be obtained for any amendment that would (a) materially increase the number of shares of Common Stock available under the Plan; (b) expand the types of awards under the Plan; (c) materially expand the class of persons eligible to participate in the Plan; (d) materially expand the term of the Plan; or (e) be of a nature that would require shareholder approval pursuant to any law or regulation or under the rules of the NASDAQ Capital Market. Unless earlier terminated by the Board, the Plan will terminate on the tenth anniversary of the effective date of the Plan (March 25, 2021) or, if the shareholders approve an amendment that increases the number of shares of Common Stock subject to the Plan, the tenth anniversary of such approval. The termination of the Plan on such date will not affect the validity of any Award outstanding on the date of termination, and any such Awards will continue to be governed by the applicable terms and conditions of the Plan. The Plan provides that award agreements for any Awards that the Committee or the Board reasonably determines to constitute a “non-qualified deferred compensation plan” subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), will be construed in a manner consistent with the requirements of Section 409A and that the Committee or the Board may amend any Award agreement (and the provisions of the Plan) if and to the extent that the Committee or the Board determines that the amendment is necessary or appropriate to comply with the requirements of Section 409A of the Code. The Plan also provides that any such Award will be subject to certain additional requirements specified in the Plan if and to the extent required to comply with Section 409A of the Code. Grants of Restricted Stock and Options On March 27, 2015, Salisbury granted a total of 1,000 shares of restricted stock, pursuant to its 2011 Long Term Incentive Plan, to one (1) Named Executive Officer, Richard J. Cantele, Jr., President and Chief Executive Officer. The fair value of the stock as of the grant date was determined to be $29,000 and the stock vested immediately. 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. 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 February 8, 2013, Salisbury granted a total of 19,600 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, to 22 employees, including 5,000 shares to one Named Executive Officer, Richard J. Cantele, Jr., President and Chief Executive Officer. The fair value of the stock as of the grant date was determined to be $490,000 and the stock will be vested three years from the grant date. The remaining weighted average vesting period on restricted shares as of December 31, 2015, over which unrecognized compensation cost is expected to be recognized, is 0.5 years. Expense in 2015, 2014, and 2013 totaled $222,000, $216,000 and $142,000, respectively. Unrecognized compensation cost relating to the awards as of December 31, 2015 and 2014 totaled $110,000 and $313,000, respectively. Forfeitures in 2015, 2014, and 2013 totaled 300, 2,000, and 500 shares, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 16 - RELATED PARTY TRANSACTIONS In the normal course of business the Bank has granted loans to executive officers, directors, principal shareholders and associates of the foregoing persons considered to be related parties. Changes in loans to executive officers, directors and their related associates are as follows (there are no loans to principal shareholders): Years ended December 31, (in thousands) 2015 2014 Balance, beginning of period $ 8,060 $ 1,279 Additional related party loans acquired pursuant to Riverside Bank merger — 6,828 Advances 5,045 271 Repayments (4,985 ) (318 ) Balance, end of period $ 8,120 $ 8,060

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
COMPREHENSIVE INCOME	NOTE 17 - COMPREHENSIVE INCOME Comprehensive income includes net income and any changes in equity from non-owner sources that are not recorded in the income statement (such as changes in net unrealized gains (losses) on securities). The purpose of reporting comprehensive income is to report a measure of all changes in shareholders’ equity that result from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners. The components of comprehensive income are as follows: Years ended December 31, (in thousands) 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Other comprehensive (loss) income Net unrealized (losses) gains on securities available-for-sale (1,297 ) 2,534 (3,743 ) Reclassification of net realized gains in net income (1) (192 ) — — Unrealized (losses) gains on securities available-for-sale (1,489 ) 2,534 (3,743 ) Income tax benefit (expense) 506 (862 ) 1,273 Unrealized (losses) gains on securities available-for-sale, net of tax (983 ) 1,672 (2,470 ) Pension plan (expense) income (see Note 14) — (924 ) 1,635 Income tax benefit (expense) — 314 (556 ) Pension plan (expense) income, net of tax — (610 ) 1,079 Other comprehensive (loss) income, net of tax (983 ) 1,062 (1,391 ) Comprehensive income $ 7,474 $ 3,583 $ 2,692 (1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of other comprehensive income (loss) and have affected certain lines in the consolidated statements of income as follows: the pretax amount is reflected as gain on securities, net; the tax effect is included in the income tax provision; and the after tax amount is included in net income. The components of accumulated other comprehensive income is as follows: December 31, (in thousands) 2015 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,125 $ 2,108 Accumulated other comprehensive income $ 1,125 $ 2,108

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 18 - COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Bank has entered into an agreement pursuant to which a third party is to provide the Bank with account processing services and other miscellaneous services. Under the agreement, the Bank is obligated to pay monthly processing fees through August 5, 2016. In the event the Bank chooses to cancel the agreement prior to the end of the contract term a lump sum termination fee will have to be paid. The fee shall be calculated as the average monthly billing, exclusive of pass through costs for the past twelve months, multiplied by the number of months and any portion of a month remaining in the contract term plus the total of any promotional or monthly allowances (as applicable), or discounted monthly fees, which were provided to the Bank for the affected processing services in consideration of the fulfillment of the entire term of the affected processing services, multiplied by the number of months the Bank was awarded each of those allowance(s) for; plus one half (1/2) of any migration allowance or installation allowance, as defined in the agreement. The Bank has decided not to renew the existing agreement and will go to a month to month processing fee arrangement with the current provider until an agreement with a new provider goes into effect. On December 31, 2015, the Bank selected a new provider for account processing services and other miscellaneous services, and will switch over to the new provider in November of 2016. The new agreement will continue until the eighth anniversary of the commencement date. According to the agreement, “Commencement Date” means the first day on which any conversion services are completed and the Bank has the capability to input transactions or data for processing by the third party provider. Salisbury leases facilities and equipment under operating leases that expire at various dates through 2023. The leases have varying renewal options, generally require a fixed annual rent, and provide that real estate taxes, insurance, and maintenance are to be paid by Salisbury. Rent expense totaled $295,000, $147,000 and $85,000 for 2015, 2014 and 2013, respectively. Future minimum lease payments at December 31, 2015 are as follows: Future minimum lease payments (in thousands) 2016 $ 207 2017 166 2018 93 2019 79 2020 82 2021 28 2022 28 2023 16 $ 699 Salisbury leases a facility under a capital lease that expires in 2029 with an option to terminate the lease in 2018. The lease has varying renewal options, requires a fixed annual rent, and provides that real estate taxes, insurance, and maintenance are to be paid by Salisbury. The following is a schedule by years of future minimum lease payments under the capital lease with the present value of the net minimum lease payments as of December 31, 2015. Future minimum lease payments (in thousands) 2016 $ 73 2017 73 2018 73 2019 84 2020 84 Thereafter 693 Total minimum lease payments 1,080 Less amount representing interest 658 $ 422 Contingent Liabilities The Bank is involved in various claims and legal proceedings, which are not material, arising in the ordinary course of business. As previously disclosed, the Bank, individually and in its capacity as a former Co-Trustee of the Erling C. Christophersen Revocable Trust (the “Trust”), was named as a defendant in litigation filed in the Connecticut Complex Litigation Docket in Stamford, captioned John Christophersen v. Erling Christophersen, et al., X08-CV-08-5009597S (the “First Action”). The Bank also was a counterclaim-defendant in related mortgage foreclosure litigation in the Connecticut Complex Litigation Docket in Stamford, captioned Salisbury Bank and Trust Company v. Erling C. Christophersen, et al., X08-CV-10-6005847-S (the “Foreclosure Action,” together with the First Action, the “Actions”). The other parties to the Actions were John R. Christophersen; Erling C. Christophersen, individually and as Co-Trustee of the Trust; Bonnie Christophersen and Elena Dreiske, individually and as Co-Trustees of the Mildred B. Blount Testamentary Trust; People’s United Bank; Law Offices of Gary Oberst, P.C.; Rhoda Rudnick; and Hinckley Allen & Snyder LLP. The Actions involved a dispute over title to certain real property located in Westport, Connecticut that was conveyed by Erling Christophersen, as grantor, to the Trust on or about August 8, 2007. Subsequent to this conveyance, the Bank loaned $3,387,000 to the Trust, which was secured by a commercial mortgage in favor of the Bank on the Westport property. This mortgage is the subject of the Foreclosure Action brought by the Bank. As previously disclosed, John R. Christophersen claimed an interest in the Westport real property transferred to the Trust and sought to quiet title to the property and to recover money damages from the defendants for the alleged wrongful divestiture of his claimed interest in the property. On June 25, 2012, the Bank and John R. Christophersen entered into a Settlement Agreement, which resolved all differences between John R. Christophersen and the Bank and resulted in the withdrawal (with prejudice) of the claims made by John R. Christophersen. All claims against the Bank have been withdrawn and the Bank is no longer a defendant or counterclaim defendant in any litigation involving the Actions. As an additional consequence of the Settlement Agreement, Bonnie Christophersen, Elena Dreiske and People’s United Bank are no longer parties to any of the litigation referenced above. On July 27, 2012, Erling Christophersen filed a Motion to Restore the First Action, and on October 15, 2012 filed a Motion to Stay the Foreclosure Action pending resolution of the Motion to Restore. The Bank opposed both motions. On February 1, 2013, the Court issued orders denying both motions. On February 14, 2013, Erling Christophersen appealed the orders denying his Motion to Restore the First Action, and Motion to Stay the Foreclosure Action. The Appellate Court dismissed the appeal of the Foreclosure Action in May 2013, and later denied Erling Christophersen’s motion for reconsideration of its decision. The Bank proceeded in its Foreclosure Action against Erling Christophersen. Erling Christophersen asserted two special defenses and set-off claims alleging (1) that the Bank failed to defend the title claims against the properties, and (2) that the Bank took certain trustee fees without approval. The Bank moved to strike the special defenses and set off claims. In a decision issued on November 6, 2013, the Court granted the motion to strike as to the second special defense and set off, but denied the motion as to the first special defense and set off. Trial began on February 4, 2014, and concluded on February 14, 2014. In a decision issued on June 2, 2014, the Court dismissed Erling Christophersen’s special defense, and made findings as to the amount of the debt owed by Erling Christophersen and the value of the property, reserving judgment on whether to order a strict foreclosure or foreclosure by sale pending a hearing on the amount of attorneys’ fees accrued, and the debt accrued since the commencement of the trial. That hearing was held on July 29, 2014. On July 25, 2014, Erling Christophersen moved to disqualify the Bank’s counsel, seeking, in part, the remedy of a new trial. The Court denied that motion in a decision dated July 30, 2014. On August 5, 2014, the Court issued a Judgment of Strict Foreclosure (the “Judgment”) in favor of the Bank and set September 16, 2014 as the Law Day, which is the final date fixed by the Court on which the debtor can pay off the debt or redeem the real property, with subsequent dates for subsequent encumbrances in inverse order of priority. On September 15, 2014, Christophersen moved to open the Judgment, which motion was denied by order of the Court dated September 30, 2014. On October 3, 2014, Christophersen filed an Appeal of the Judgment and of the denial of his motion to reopen. Salisbury Bank moved to dismiss the Appeal on October 24, 2014, on grounds that Christophersen cannot represent the Trust as he is not an attorney, and that Christophersen in his individual capacity does not have any interest in this appeal. On December 17, 2014, the motion was granted in part and dismissed in part, but the decision is moot because counsel submitted an appearance on behalf of the Trust on December 29, 2014. On January 20, 2015, Christophersen filed a motion for reconsideration, which motion was denied by order of the Appellate Court on February 10, 2015. The parties’ submitted briefs and oral arguments were heard by Appellate Court on January 7, 2016. On March 1, 2016, the Appellate Court affirmed the trial court’s judgment and remanded the case for the setting of new Law Days. Subsequently, the defendant filed an application for review with the Connecticut Supreme Court, which denied Mr. Christophersen’s Petition For Certification on March 23, 2016. The case will be remanded to the trial court to set new law days. There are no other material pending legal proceedings, other than ordinary routine litigation incidental to the registrant’s business, to which Salisbury is a party or to which any of its property is subject.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2015
Investments, All Other Investments [Abstract]
FINANCIAL INSTRUMENTS	NOTE 19 - FINANCIAL INSTRUMENTS The Bank, in the normal course of business and to meet the financing needs of its customers, is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to originate loans, letters of credit, and advance funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there are no violations of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income producing properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of December 31, 2015 and 2014, the maximum potential amount of the Bank’s obligation was $1,401,000 and $3,422,000, respectively, for financial, commercial and standby letters of credit. If a letter of credit is drawn upon, the Bank may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Bank may take possession of the collateral, if any, securing the line of credit. Financial instrument liabilities with off-balance sheet credit risk are as follows: December 31, (in thousands) 2015 2014 Residential $ 6,620 $ 3,030 Home equity lines of credit 25,912 25,882 Commercial 13,922 16,751 Land 218 5 Real estate secured 46,672 45,668 Commercial and industrial 67,725 57,905 Municipal 790 — Consumer 1,507 1,537 Unadvanced portions of loans 116,694 105,110 Commitments to originate loans 37,688 20,953 Standby letters of credit 1,401 3,422 Total $ 155,783 $ 129,485 There is no material difference between the notional amounts and the estimated fair values of the off-balance sheet liabilities. The allowance for off balance sheet commitments is calculated by applying a reserve percentage discounted by a utilization factor to the sum of unguaranteed unused lines of credit and loan contracts that the Bank has committed to but not funded as of year-end. The allowance for off-balance sheet commitments was $93,000 and $115,000 as of December 31, 2015 and December 31, 2014, respectively.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 20 - FAIR VALUE MEASUREMENTS 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. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which 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 year ended December 31, 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 exchange-traded equity securities. 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. 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. Other than discussed above, the following methods and assumptions were used by management to estimate the fair value of significant classes of financial instruments for which it is practicable to estimate that value. Cash and cash equivalents. Loans held-for-sale. Loans, net. Accrued interest receivable/payable. Cash surrender value of life insurance. Deposits. Borrowed funds. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value December 31, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,541 $ — $ 2,541 U.S. Government agency notes — 498 — 498 Municipal bonds — 30,385 — 30,385 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,202 — 32,202 Collateralized mortgage obligations: U.S. Government agencies — 2,014 — 2,014 Non-agency — 4,948 — 4,948 SBA bonds — 3,096 — 3,096 CRA mutual funds — 764 — 764 Preferred stock 246 — — 246 Securities available-for-sale $ 246 $ 76,448 $ — $ 76,694 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 15,211 15,211 Mortgage servicing rights — 1,315 — 1,315 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 Mortgage servicing rights — 1,568 — 1,568 Other real estate owned — — 1,002 1,002 Carrying values and estimated fair values of financial instruments are as follows: Carrying Estimated Fair value measurements using (In thousands) value fair value Level 1 Level 2 Level 3 December 31, 2015 Financial Assets Cash and cash equivalents $ 62,118 $ 62,118 $ 62,118 $ — $ — Securities available-for-sale 76,694 76,694 246 76,448 — Federal Home Loan Bank stock 3,176 3,176 — 3,176 — Loans held-for-sale 763 778 — — 778 Loans receivable, net 699,018 707,154 — — 707,154 Accrued interest receivable 2,307 2,307 — — 2,307 Cash surrender value of life insurance 13,685 13,685 13,685 — — Financial Liabilities Demand (non-interest-bearing) $ 201,340 $ 201,340 $ — $ — $ 201,340 Demand (interest-bearing) 125,465 125,465 — — 125,465 Money market 183,783 183,783 — — 183,783 Savings and other 119,651 119,651 — — 119,651 Certificates of deposit 124,294 125,437 — — 125,437 Deposits 754,533 755,676 — — 755,676 Repurchase agreements 3,914 3,914 — — 3,914 FHLBB advances 26,979 28,559 — — 28,559 Subordinated debt 9,764 9,764 — — 9,764 Note payable 376 405 — — 405 Capital lease liability 422 870 — — 870 Accrued interest payable 150 150 — — 150 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

SALISBURY BANCORP (PARENT ONLY)

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION	NOTE 21 – SALISBURY BANCORP, INC. (PARENT ONLY) CONDENSED FINANCIAL INFORMATION The unconsolidated balance sheets and statements of income and cash flows of Salisbury Bancorp, Inc. are presented as follows: Balance Sheets 2015 2014 Assets Cash and due from banks $ 2,612 $ 9,436 Investment in bank subsidiary 97,794 92,531 Other assets 5 6 Total Assets $ 100,411 $ 101,973 Liabilities and Shareholders' Equity Subordinated debt $ 9,764 $ — Other liabilities 73 152 Shareholders' equity 90,574 101,821 Total Liabilities and Shareholders' Equity $ 100,411 $ 101,973 Statements of Income 2015 2014 2013 Dividends from subsidiary $ 2,743 $ 2,143 $ 2,128 Interest income 19 21 27 Interest expense 35 — — Expenses 511 986 394 Income before taxes and equity in undistributed net income of subsidiary 2,216 1,178 1,761 Income tax benefit 192 91 — Income before equity in undistributed net income of subsidiary 2,408 1,269 1,761 Equity in undistributed net income of subsidiary 6,049 1,252 2,322 Net income $ 8,457 $ 2,521 $ 4,083 Statements of Cash Flows 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary (6,049 ) (1,252 ) (2,322 ) Other (275 ) 85 24 Net cash provided by operating activities 2,133 1,354 1,785 Investing Activities Investment in bank — (27,251 ) — Maturities (purchases) of interest-bearing time deposits of other banks — 738 (738 ) Maturities of securities available-for-sale — — — Net cash utilized by investing activities — (26,513 ) (738 ) Financing Activities Common stock dividends paid (3,054 ) (1,918 ) (1,915 ) Preferred stock dividends paid (158 ) (166 ) (161 ) Proceeds from issuance of subordinated debt, net of issue cost 9,764 — — Payment to repurchase preferred stock (16,000 ) — — Proceeds from issuance of common stock 491 126 34 Issuance of Salisbury stock to Riverside shareholders — 27,251 — Net cash (utilized) provided by financing activities (8,957 ) 25,293 (2,042 ) (Decrease) increase in cash and cash equivalents (6,824 ) 134 (995 ) Cash and cash equivalents, beginning of period 9,436 9,302 10,297 Cash and cash equivalents, end of period $ 2,612 $ 9,436 $ 9,302

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 22 – EARNINGS PER SHARE The calculation of earnings per share is as follows: Years ended December 31, (in thousands, except per share amounts) 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Less: Preferred stock dividends declared (158 ) (166 ) (161 ) Net income available to common shareholders 8,299 2,355 3,922 Less: Undistributed earnings allocated to participating securities (72 ) (27 ) (39 ) Net income allocated to common stock $ 8,227 $ 2,328 $ 3,883 Weighted average common shares issued 2,730 1,785 1,710 Less: Unvested restricted stock awards (24 ) (21 ) (19 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,706 1,764 1,691 Add: Dilutive effect of unvested restricted stock awards 17 1 — Weighted average common shares outstanding used to calculate diluted earnings per common share 2,723 1,765 1,691 Earnings per common share (basic) $ 3.04 $ 1.32 $ 2.30 Earnings per common share (diluted) $ 3.02 $ 1.32 $ 2.30

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 23 – SUBSEQUENT EVENTS Salisbury has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The Board of Directors of Salisbury declared a $0.28 per common share quarterly cash dividend at their January 29, 2016 meeting. The dividend was paid on February 26, 2016 to shareholders of record as of February 12, 2016. On January 29, 2016, Salisbury granted a total of 15,800 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, to 42 employees, including 6,000 shares to three Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 5,000 and John Davies, President New York Region and Chief Lending Officer and Donald E. White, Chief Financial Officer each received 500 shares. The fair value of the stock as of the grant date was determined to be $466,000 and the stock will be vested three years from the grant date. On January 29, 2016, the Compensation Committee granted a total of 47,470 Phantom Stock Appreciation Units pursuant to its 2011 Long Term Incentive Plan, which was approved by shareholders at the 2011 Annual Meeting, including 23,012 units to three Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 11,484 units, John Davies, President New York Region and Chief Lending Officer received 5,963 units and Donald E. White, Chief Financial Officer received 5,565 units. The units will vest on the third anniversary of the grant date.

SELECTED QUARTERLY CONSOLIDATED

SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited)	NOTE 24 – SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Unaudited) Selected quarterly consolidated financial data for the years ended December 31, 2015 and 2014 is as follows: Year ended December 31, 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Statement of Income Interest and dividend income $ 8,671 $ 8,545 $ 8,650 $ 8,705 Interest expense 745 753 753 775 Net interest and dividend income 7,926 7,792 7,897 7,930 (Benefit) provision for loan losses (200 ) 196 655 266 Gains on securities, net 175 11 6 — Trust and Wealth Advisory 822 890 798 755 Service charges and fees 731 778 798 763 Gains on sales of mortgage loans, net 93 87 47 47 Mortgage servicing, net (40 ) 20 5 16 Other 115 114 115 166 Non-interest income 1,896 1,900 1,769 1,747 Non-interest expense 6,835 6,539 6,202 6,344 Income before income taxes 3,187 2,957 2,809 3,067 Income tax provision 953 885 824 901 Net income 2,234 2,072 1,985 2,166 Net income available to common shareholders 2,194 2,032 1,945 2,128 Financial Condition Total assets $ 865,037 $ 860,794 $ 904,233 $ 891,192 Loans, net 676,734 677,726 687,719 699,018 Allowance for loan losses 5,182 5,059 5,659 5,716 Securities 84,694 92,932 83,886 79,870 Deposits 724,910 720,734 761,479 754,533 Repurchase agreements 3,278 2,771 4,210 3,914 FHLBB advances 28,403 28,033 26,928 26,979 Shareholders' equity 103,211 104,104 105,450 90,574 Non-performing assets 14,875 14,995 16,602 16,264 Per Common Share Data Earnings, basic $ 0.81 $ 0.74 $ 0.71 $ 0.78 Earnings, diluted 0.80 0.74 0.71 0.77 Cash dividends declared 0.28 0.28 0.28 0.28 Cash dividends paid 0.28 0.28 0.28 0.28 Book value 31.96 32.26 32.72 33.13 Market price: (a) High 30.39 32.30 31.74 33.70 Low 26.08 28.80 28.38 28.80 Statistical Data Net interest margin (fully tax equivalent) 4.11 % 4.01 % 3.91 % 3.88 % Efficiency ratio (fully tax equivalent) 65.45 62.91 60.40 63.64 Return on average assets 1.03 0.94 0.87 0.94 Return on average shareholders' equity 10.22 9.26 8.64 9.34 Weighted average common shares outstanding, basic 2,699 2,706 2,708 2,710 Weighted average common shares outstanding, diluted 2,716 2,724 2,724 2,727 (a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. Salisbury Bancorp, Inc.'s Common Stock, par value $0.10 per share ("Common Stock") trades on the NASDAQ Capital Market under the symbol: SAL. As of March 1, 2016, there were approximately 2,141 shareholders of record of the Company’s Common Stock. Selected quarterly consolidated financial data (unaudited) continued: Year ended December 31, 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Statement of Income Interest and dividend income $ 5,443 $ 5,552 $ 5,444 $ 6,416 Interest expense 668 647 690 699 Net interest and dividend income 4,775 4,905 4,754 5,717 Provision for loan losses 337 314 318 165 Trust and Wealth Advisory 779 939 791 786 Service charges and fees 542 626 639 666 Gains on sales of mortgage loans, net 11 32 — 21 Mortgage servicing, net 27 11 41 15 Other 79 74 82 91 Non-interest income 1,438 1,682 1,553 1,579 Non-interest expense 5,110 5,068 5,108 6,852 Income before income taxes 766 1,205 881 279 Income tax provision 215 239 113 43 Net income 551 966 768 236 Net income available to common shareholders 505 926 728 196 Financial Condition Total assets $ 589,771 $ 621,476 $ 638,089 $ 855,427 Loans, net 446,518 456,627 461,913 673,330 Allowance for loan losses 4,894 5,102 5,384 5,358 Securities 98,015 92,884 88,960 94,827 Deposits 477,512 507,361 522,294 715,426 Repurchase agreements 2,643 4,344 6,500 4,163 FHLBB advances 30,017 29,619 29,218 28,813 Shareholders' equity 74,001 75,000 75,516 101,821 Non-performing assets 8,526 8,757 8,945 10,892 Per Common Share Data Earnings, basic and diluted $ 0.29 $ 0.54 $ 0.43 $ 0.10 Cash dividends declared 0.28 0.28 0.28 0.28 Cash dividends paid 0.28 0.28 0.28 0.28 Book value 33.90 34.44 34.74 31.54 Market price: (a) High 27.58 30.98 30.70 28.39 Low 25.90 27.13 26.95 25.88 Statistical Data Net interest margin (fully tax equivalent) Efficiency ratio (fully tax equivalent) 3.72 % 3.74 % 3.39 % 3.68 % Return on average assets 77.11 72.35 75.92 77.80 Return on average shareholders' equity 0.35 0.62 0.45 0.11 Weighted average equivalent shares outstanding, basic and diluted 1,691 1,691 1,693 1,981 (a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions.

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include those of Salisbury and its subsidiary after elimination of all inter-company accounts and transactions.
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. 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 statement of condition, 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 and impairment of goodwill and intangibles. Certain reclassifications have been made to the 2014 and 2013 financial statements to make them consistent with the 2015 presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and balances due from banks. Due to the nature of cash and cash equivalents, Salisb ury estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions. In 2015, a 3% reserve ratio was assessed on net transaction accounts over $14.5 million, up to and including $103.6 million (which may be adjusted by the FRB). A 10% reserve ratio was assessed on net transaction accounts in excess of $103.6 million (which may be adjusted by the FRB). I n 2014, 3% reserve ratio assessed on net transaction accounts over $13.3 million up to and including $89.0 million A 10% reserve ratio assessed on net transaction accounts in excess of $89.0
Securities	Securities Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair market value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The OTTI related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses.
Federal Home Loan Bank of Boston Stock	Federal Home Loan Bank of Boston Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The 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 December 31, 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 Loans receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms.
Acquired Loans	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 Accounting Standards Codification (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. 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.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. While management believes that the allowance for loan losses is adequate, the allowance is an estimate, and ultimate losses may vary from management’s estimate. Future additions to the allowance may also be necessary based on changes in assumptions and economic conditions. In addition, various regulatory agencies periodically review the allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. Loans collectively evaluated for impairment This component of the allowance for loan losses is stratified by the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and Home equity lines of credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. Management’s general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in Salisbury’s policies or methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate - Salisbury generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. All loans in this segment are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate - Loans in this segment are primarily income-producing properties throughout Salisbury’s market area. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates which, in turn, will have an effect on the credit quality in this segment. For commercial loans management annually obtains business and personal financial statements, tax returns, and, where applicable, rent rolls, and continually monitors the repayment of these loans. Construction loans - Loans in this segment are primarily residential construction loans which typically roll into a permanent residential mortgage loan when construction is completed, or commercial construction which consist primarily of owner occupied commercial construction projects. Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, has an effect on the credit quality in this segment. Municipal loans – Loans in this segment are extensions of credit to municipal and other governmental entities throughout Salisbury’s market area. The bank-qualified, tax-exempt loans are backed by the full faith and credit of the borrowing entity with taxing or appropriating authority, as appropriate. Maturities range from one year for bond anticipation notes to twenty years for long-term project finance. The ability of the borrower to pay may be affected by an economic downturn resulting in a severe reduction in tax or other revenues coupled with the depletion of an entity’s reserve liquidity. Historical default rates for bank-qualified (small issuer) general obligation municipal credit facilities are near 0%. Consumer loans - Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Loans individually evaluated for impairment This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans (except consumer loans and homogeneous residential real estate loans) by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Salisbury periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.
Other Real Estate Owned ("OREO")	Other Real Estate Owned (“OREO”) Salisbury's loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. In addition, various regulatory agencies, as an integral part of their examination process, periodically review Salisbury's allowance for loan losses and valuation of OREO. Such agencies may require Salisbury to recognize additions to the allowance or write-downs based on their judgments of information available to them at the time of their examination. OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are initially transferred at fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. As of December 31, 2015 the recorded investment in residential mortgage loans collateralized by residential real estate that were in the process of foreclosure was $2.9 million.
Income Taxes	Income Taxes Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. A valuation allowance is established against deferred tax assets when, based upon all available evidence, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized.
Bank Premises and Equipment	Bank Premises and Equipment Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. Guidelines for expected useful life are as follows: • Building /Improvements – 39 years • Land Improvements – 15 years • Furniture and Fixtures – 7 years • Computer Equipment – 5 years • Softwar
Intangible Assets	Intangible Assets Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in business combinations accounted for using the acquisition method of accounting. Salisbury’s assets at December 31, 2015, and 2014, include goodwill of $2,358,000 arising from the purchase of a branch office in 2001, $7,152,000 arising from the 2004 acquisition of Canaan National Bancorp, Inc., $319,000 arising from the 2007 purchase of a branch office in New York State, and $2,723,000 arising from the acquisition of Riverside Bank in December 2014. See Note 8. On an annual basis management assesses intangible assets for impairment, and for the year ending December 31, 2015, concluded there was no impairment. If a permanent loss in value is indicated, an impairment charge to income will be recognized.
Statement of Cash Flows	Statements of Cash Flows For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions.
Computation of Earnings per Share	Computation of Earnings per Share The Company 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014 and August 2015, respectively, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and 2015-14, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 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 ASU 2015-14 defer the effective date of ASU 2014-09 to 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 ASU 2014-09 and 2015-14 to determine if they will have an impact on its consolidated financial statements. 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 adopted this guidance in 2015 and presented the costs related to the issuance of subordinated debt as a direct reduction of the carrying amount of the debt. 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 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. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires an entity to: i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in other comprehensive income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The guidance provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The guidance also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The guidance is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk. Salisbury is currently evaluating the impact of the new standard on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which provides new guidance related to accounting for leases. The ASU requires that an entity recognize substantially all leasing activities on its balance sheet. Specifically, a lessee will be required to recognize a liability to make lease payments (the lease liability) and a “right-of-use” asset representing the right to use the underlying asset for the lease term. The asset and liability will initially be measured at the present value of the future lease payments. The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018, and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019, and interim periods thereafter. Early adoption will be permitted for all entities. Salisbury anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

MERGERS AND ACQUISITIONS (Table

MERGERS AND ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Consideration paid	Consideration Paid: (In thousands) Amount Salisbury Bancorp common stock issued to Riverside Bank common stockholders $ 27,230 Cash consideration paid for fractional shares 1 Riverside stock options, vested upon acquisition 20 Total consideration paid $ 27,251
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value	Recognized amounts of identifiable assets acquired and liabilities Fair Value As Recorded assumed, at fair value: As Acquired Adjustment at Acquisition Cash and cash equivalents $ 18,650 $ — $ 18,650 Investment securities 11,820 (78 ) (a) 11,742 Loans 204,398 (8,093 ) (b) 196,305 Premises and equipment 1,046 497 (c) 1,543 Other assets 7,006 — 7,006 Core deposit intangible — 2,215 2,215 Deposits (210,559 ) (641 ) (d) (211,200 ) Other liabilities (1,733 ) — (1,733 ) Total identifiable net assets $ 30,628 $ (6,100 ) $ 24,528 Goodwill — — $ 2,723
Acquired loan portfolio and activity in the accretable yield	(In thousands) ASC 310-30 Loans Contractually required principal and interest at acquisition $ 16,209 Contractual cash flows not expected to be collected (nonaccretable discount) (4,288 ) Expected cash flows at acquisition 11,921 Interest component of expected cash flows (accretable discount) (1,293 ) Fair value of acquired loans $ 10,628 (In thousands) 2015 2014 Balance at beginning of period $ 1,242 $ — Acquisitions — 1,293 Accretion (1,109 ) (51 ) Reclassification from non-accretable to accretable 1,768 — Balance at end of period $ 1,901
Pro forma results of operations of Riverside Bank since acquisition date	Years ended December 31, (in thousands) 2014 2013 Total revenue $ 39,841 $ 39,640 Net income 6,411 7,136 Net income available to common shareholders 6,245 6,975 Earnings per share Basic $ 2.26 $ 2.59 Diluted 2.24 2.57

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (in thousands) Amortized Gross un- realized gains Gross un- realized losses 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 prior years.
Sales of securities available-for-sale and gains realized	Years ended December 31, (in thousands) 2015 2014 2013 Proceeds $ 3,861 $ — $ — Gains realized 180 — — Losses realized (27 ) — — Net gains realized 153 — — Income tax provision 52 — —
Aggreggate fair value and gross unrealized loss of securities	Less than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses December 31, 2015 Available-for-sale Mortgage-backed securities $ 14,750 $ 83 $ 53 $ — $ 14,803 $ 83 Collateralized mortgage obligations Non-agency 237 — 226 7 463 7 CRA mutual funds 764 2 — — 764 2 Total temporarily impaired securities $ 15,751 $ 85 $ 279 $ 7 $ 16,030 $ 92 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
Securities amortized cost; fair value and tax equivalent yield by maturity	December 31, 2015 (dollars in thousands) Amortized cost Fair value Yield(1) U.S. Treasury notes Within 1 year $ 2,499 $ 2,541 3.00 % Total 2,499 2,541 3.00 % U.S. Government agency notes After 1 year but within 5 years 498 498 0.88 % Total 498 498 0.88 % Municipal bonds Within 1 year 254 254 5.60 % After 1 year but within 5 years 1,217 1,225 5.57 % After 5 years but within 10 years 1,894 1,922 6.38 % After 10 years but within 15 years 2,632 2,708 6.30 % After 15 years 23,755 24,276 6.68 % Total 29,752 30,385 6.57 % Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 31,900 32,202 2.96 % Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 2,002 2,014 1.02 % Non-agency 4,487 4,948 4.20 % SBA bonds 3,065 3,096 2.93 % CRA mutual funds 766 764 2.07 % Preferred stock 20 246 2.26 % Securities available-for-sale $ 74,989 $ 76,694 4.47 %

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	Years ended December 31, 2015 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 261,495 $ 7,799 $ 269,294 $ 252,258 $ 9,223 $ 261,481 Residential 5+ multifamily 6,411 6,136 12,547 5,556 8,735 14,291 Construction of residential 1-4 family 7,998 — 7,998 2,004 — 2,004 Home equity lines of credit 35,017 — 35,017 34,627 — 34,627 Residential real estate 310,921 13,935 324,856 294,445 17,958 312,403 Commercial 129,446 88,829 218,275 98,498 97,899 196,397 Construction of commercial 6,525 4,874 11,399 18,602 9,045 27,647 Commercial real estate 135,971 93,703 229,674 117,100 106,944 224,044 Farm land 3,193 — 3,193 3,239 — 3,239 Vacant land 8,563 — 8,563 9,342 — 9,342 Real estate secured 458,648 107,638 566,286 424,126 124,902 549,028 Commercial and industrial 74,657 46,764 121,421 49,204 68,714 117,918 Municipal 9,566 — 9,566 6,083 — 6,083 Consumer 6,195 77 6,272 4,334 122 4,456 Loans receivable, gross 549,066 154,479 703,545 483,747 193,738 677,485 Deferred loan origination fees and costs, net 1,189 — 1,189 1,203 — 1,203 Allowance for loan losses (5,481 ) (235 ) (5,716 ) (5,337 ) (21 ) (5,358 ) Loans receivable, net $ 544,774 $ 154,244 $ 699,018 $ 479,613 $ 193,717 $ 673,330 Loans held-for-sale Residential 1-4 family $ 763 $ — $ 763 $ 568 $ — $ 568
Composition of loans receivable by risk rating grade	Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 248,027 $ 6,933 $ 6,444 $ 91 $ — $ 261,495 Residential 5+ multifamily 4,507 1,815 89 — — 6,411 Construction of residential 1-4 family 7,111 887 — — — 7,998 Home equity lines of credit 33,687 545 785 — — 35,017 Residential real estate 293,332 10,180 7,318 91 — 310,921 Commercial 120,903 4,801 3,742 — — 129,446 Construction of commercial 6,525 — — — — 6,525 Commercial real estate 127,428 4,801 3,742 — — 135,971 Farm land 2,162 — 1,031 — — 3,193 Vacant land 5,567 69 2,927 — — 8,563 Real estate secured 428,489 15,050 15,018 91 — 458,648 Commercial and industrial 72,887 1,214 555 1 — 74,657 Municipal 9,566 — — — — 9,566 Consumer 6,171 18 6 — — 6,195 Loans receivable, gross $ 517,113 $ 16,282 $ 15,579 $ 92 $ — $ 549,066 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2015 Residential 1-4 family $ 6,824 $ 199 $ 776 $ — $ — $ 7,799 Residential 5+ multifamily 6,136 — — — — 6,136 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,960 199 776 — — 13,935 Commercial 80,406 4,005 4,418 — — 88,829 Construction of commercial 4,612 — 262 — — 4,874 Commercial real estate 85,018 4,005 4,680 — — 93,703 Farm land — — — — — — Vacant land — — — — — — Real estate secured 97,978 4,204 5,456 — — 107,638 Commercial and industrial 45,363 875 443 83 — 46,764 Municipal — — — — — — Consumer 71 6 — — — 77 Loans receivable, gross $ 143,412 $ 5,085 $ 5,899 $ 83 $ — $ 154,479 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 lines of 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 lines of 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 (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2015 Residential 1-4 family $ 254,152 $ 1,781 $ 1,931 $ 683 $ 973 $ 1,975 $ 5,562 $ — $ 5,671 Residential 5+ multifamily 6,254 — 68 — — 89 157 — 89 Construction of residential 1-4 family 7,826 172 — — — — — — — Home equity lines of credit 33,744 363 306 101 113 390 910 — 601 Residential real estate 301,976 2,316 2,305 784 1,086 2,454 6,629 — 6,361 Commercial 126,440 1,618 474 — 233 681 1,388 — 2,349 Construction of commercial 6,525 — — — — — — — — Commercial real estate 132,965 1,618 474 — 233 681 1,388 — 2,349 Farm land 2,172 298 — — — 723 723 — 1,031 Vacant land 5,734 — 6 — — 2,823 2,829 — 2,855 Real estate secured 442,847 4,232 2,785 784 1,319 6,681 11,569 — 12,596 Commercial and industrial 73,698 906 35 — — 18 53 — 461 Municipal 9,566 — — — — — — — — Consumer 6,096 61 21 17 — — 38 — 80 Loans receivable, gross $ 532,207 $ 5,199 $ 2,841 $ 801 $ 1,319 $ 6,699 $ 11,660 $ — $ 13,137 Acquired Loans Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038 Business Activities Loans Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual 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 lines of 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 Past due (In thousands) Current 1-29 days 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual 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 lines of 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 December 31, 2015 December 31, 2014 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 3 $ 1,071 $ 1,071 4 $ 308 $ 308 Land — — — — — — Commercial real estate 1 294 294 4 1,076 1,076 Construction of commercial — — — 1 131 131 Consumer — — — — — — Commercial and industrial — — — — — — HELOC 1 35 35 — — — Troubled debt restructurings 5 $ 1,400 $ 1,400 9 $ 1,515 $ 1,515 Rate reduction and term extension 1 $ 294 $ 294 — $ — $ — Interest only pursuant to sale — — — 1 24 24 Interest only and term extension — — — 1 48 48 Interest only pursuant to sale and term extension — — — 1 230 230 Interest only — — — 1 30 30 Debt consolidation and term extension 1 148 148 2 447 447 Rate reduction — — — — — — Rate reduction interest only — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation 1 48 48 1 399 399 Rate reduction and debt consolidation — — — — — — Term extension 2 910 910 2 337 337 Troubled debt restructurings 5 $ 1,400 $ 1,400 9 $ 1,515 $ 1,515 Acquired Loans December 31, 2015 December 31, 2014 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — — $ — $ — Land — — — — — — Commercial real estate 1 184 184 1 571 571 Construction of commercial — — — — — — Consumer — — — — — — Commercial and industrial — — — — — — HELOC — — — — — — Troubled debt restructurings 1 $ 184 $ 184 1 $ 571 571 Rate reduction and term extension 1 $ 184 $ 184 — $ — $ — Interest only pursuant to sale — — — — — — Interest only and term extension — — — — — — Interest only pursuant to sale and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Rate reduction — — — 1 571 571 Rate reduction interest only — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — — — — Rate reduction and debt consolidation — — — — — — Term extension — — — — — — Troubled debt restructurings 1 $ 184 $ 184 1 $ 571 $ 571
Recorded investment and number of modifications for TDRs	Modifications that Subsequently Defaulted For the twelve months ending December 31, 2014 Quantity Balance Troubled Debt Restructurings Residential 1-4 family 2 $ 38 Commercial real estate (1) 1 — Total 3 $ 38 (1) Loan paid off as of December 31, 2014
Components of impaired loans	Business Activities Loans Years ended December 31, (in thousands) 2015 2014 Non-accrual loans, excluding troubled debt restructured loans $ 10,093 $ 6,752 Non-accrual troubled debt restructured loans 3,044 628 Accruing troubled debt restructured loans 6,802 9,189 Total impaired loans $ 19,939 $ 16,569 Commitments to lend additional amounts to impaired borrowers $ — $ — Acquired Loans Years ended December 31, (in thousands) 2015 2014 Non-accrual loans, excluding troubled debt restructured loans $ 3,038 $ 2,493 Non-accrual troubled debt restructured loans — — Accruing troubled debt restructured loans 742 571 Total impaired loans $ 3,780 $ 3,064 Commitments to lend additional amounts to impaired borrowers $ — $ —
Changes in allowance for loan losses	Business Activities Loans Acquired Loans December 31, 2015 December 31, 2015 (In thousands) Beginning Charge- Reco- Ending Beginning Charge- Reco- Ending balance Provision offs veries balance balance Provision offs veries balance Residential $ 2,306 $ 746 $ (698 ) $ 123 $ 2,477 $ — $ 79 $ — $ — $ 79 Commercial 1,697 (18 ) (214 ) 1 1,466 7 136 (16 ) 5 132 Land 164 157 (133 ) — 188 — — — — — Real estate 4,167 885 (1,045 ) 124 4,131 7 215 (16 ) 5 211 Commercial and industrial 583 (295 ) (69 ) 464 683 14 (24 ) — 34 24 Municipal 61 — — — 61 — — — — — Consumer 117 71 (82 ) 18 124 — (8 ) — 8 — Unallocated 409 73 — — 482 — — — — — Totals $ 5,337 $ 734 $ (1,196 ) $ 606 $ 5,481 $ 21 $ 183 $ (16 ) $ 47 $ 235 December 31, 2014 December 31, 2014 (In thousands) Beginning Charge- Reco- Ending Beginning Charge- Reco- Ending balance Provision offs veries balance balance Provision offs veries balance Residential $ 1,938 $ 657 $ (307 ) $ 18 $ 2,306 $ — $ — $ — $ — $ — Commercial 1,385 355 (84 ) 41 1,697 — 7 — — 7 Land 226 58 (121 ) 1 164 — — — — — Real estate 3,549 1,070 (512 ) 60 4,167 — 7 — — 7 Commercial and industrial 561 25 (19 ) 16 583 — 14 — — 14 Municipal 43 18 — — 61 — — — — — Consumer 105 16 (28 ) 24 117 — — — — — Unallocated 425 (16 ) — — 409 — — — — — Totals $ 4,683 $ 1,113 $ (559 ) $ 100 $ 5,337 $ — $ 21 $ — $ — $ 21
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 December 31, 2015 Residential 1-4 family $ 253,156 $ 1,415 $ 8,339 $ 610 $ 261,495 $ 2,025 Residential 5+ multifamily 4,640 33 1,771 — 6,411 33 Construction of residential 1-4 family 7,998 65 — — 7,998 65 Home equity lines of credit 34,298 286 719 68 35,017 354 Residential real estate 300,092 1,799 10,829 678 310,921 2,477 Commercial 125,173 1,265 4,273 113 129,446 1,378 Construction of commercial 6,403 87 122 1 6,525 88 Commercial real estate 131,576 1,352 4,395 114 135,971 1,466 Farm land 2,162 23 1,031 14 3,193 37 Vacant land 5,486 122 3,077 29 8,563 151 Real estate secured 439,316 3,296 19,332 835 458,648 4,131 Commercial and industrial 74,131 673 526 10 74,657 683 Municipal 9,566 61 — — 9,566 61 Consumer 6,115 124 80 — 6,195 124 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2015 Residential 1-4 family $ 7,023 $ — $ 776 $ 79 $ — $ — $ 7,799 $ 79 Residential 5+ multifamily 6,136 — — — — — 6,136 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 13,159 — 776 79 — — 13,935 79 Commercial 81,300 19 2,742 107 4,787 2 88,829 128 Construction of commercial 4,612 4 262 — — — 4,874 4 Commercial real estate 85,912 23 3,004 107 4,787 2 93,703 132 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 99,071 23 3,780 186 4,787 2 107,638 211 Commercial and industrial 45,650 24 — — 1,114 — 46,764 24 Municipal — — — — — — — — Consumer 61 — — — 16 — 77 — Unallocated allowance — — — — — — — — Totals $ 144,782 $ 47 $ 3,780 $ 186 $ 5,917 $ 2 $ 154,479 $ 235 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 lines of 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 Totals $ 467,178 $ 3,792 $ 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 lines of 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 Collectively evaluated Individually evaluated Total portfolio December 31, 2015 (in thousands) Loans Allowance Loans Allowance Loans Allowance Performing loans $ 527,905 $ 4,110 $ — $ — $ 527,905 $ 4,110 Potential problem loans 1,223 44 — — 1,223 44 Impaired loans — — 19,938 845 19,938 845 Unallocated allowance — 482 — — — 482 Totals $ 529,128 $ 4,636 $ 19,938 $ 845 $ 549,066 $ 5,481 Acquired Loans Collectively evaluated Individually evaluated Total portfolio December 31, 2015 (in thousands) Loans Allowance Loans Allowance Loans Allowance Performing loans $ 148,580 $ 46 $ — $ — $ 148,580 $ 46 Potential problem loans 2,119 2 — — 2,119 2 Impaired loans — — 3,780 187 3,780 187 Unallocated allowance — — — — — — Totals $ 150,699 $ 48 $ 3,780 $ 187 $ 154,479 $ 235 Business Activities Loans Collectively evaluated Individually evaluated Total portfolio December 31, 2014 (in thousands) 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 Collectively evaluated Individually evaluated Total portfolio December 31, 2014 (in thousands) 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 December 31, 2015 Residential $ 7,482 $ 8,094 $ 6,449 $ 610 $ 167 $ 2,628 $ 2,770 $ 3,089 $ 98 Home equity lines of credit 535 659 260 68 9 184 199 423 2 Residential real estate 8,017 8,753 6,709 678 176 2,812 2,969 3,512 100 Commercial 3,131 3,405 2,850 113 123 1,142 1,393 1,624 49 Construction of commercial 122 128 9 1 7 — — 116 — Farm land 733 773 400 14 25 298 352 461 — Vacant land 2,870 3,836 3,015 29 3 207 241 72 9 Real estate secured 14,873 16,895 12,983 835 334 4,459 4,955 5,785 158 Commercial and industrial 95 98 145 10 4 431 481 383 22 Consumer — — — — — 80 108 12 1 Totals $ 14,968 $ 16,993 $ 13,128 $ 845 $ 338 $ 4,970 $ 5,544 $ 6,180 $ 181 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, 2015 Residential $ 599 $ 716 $ 273 $ 79 $ — $ 177 $ 177 $ 376 $ 7 Home equity lines of credit — — — — — — — — — Residential real estate 599 716 273 79 — 177 177 376 7 Commercial 675 826 698 107 34 2,067 2,843 2,011 32 Construction of commercial — — — — — 262 273 167 22 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,274 1,542 971 186 34 2,506 3,293 2,554 61 Commercial and industrial — — 6 — — — 4 — — Consumer — — — — — — — — — Totals $ 1,274 $ 1,542 $ 977 $ 186 $ 34 $ 2,506 $ 3,297 $ 2,554 $ 61 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 $ 5,008 $ 5,157 $ 4,547 $ 552 $ 128 $ 2,273 $ 2,395 $ 2,703 $ 57 Home equity lines of 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 $ — $ — $ — $ — $ — $ 562 $ 716 $ 562 $ 3 Home equity lines of 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

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	12 Months Ended
	Dec. 31, 2015
Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	December 31, (in thousands) 2015 2014 Residential mortgage loans serviced for others $ 130,816 $ 138,106 Fair value of mortgage servicing rights 1,315 1,568
Changes in mortgage servicing rights	Years ended December 31, (in thousands) 2015 2014 2013 Mortgage Servicing Rights Balance, beginning of period $ 694 $ 980 $ 1,075 Originated 148 17 294 Amortization (1) (356 ) (303 ) (389 ) Balance, end of period 486 694 980 Valuation Allowance Balance, beginning of period — (15 ) (38 ) (Increase) decrease in impairment reserve (1) (3 ) 15 23 Balance, end of period (3 ) — (15 ) Mortgage servicing rights, net $ 483 $ 694 $ 965 (1) Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income.

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	12 Months Ended
	Dec. 31, 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	December 31, (in thousands) 2015 2014 Securities available-for-sale (at fair value) $ 67,750 $ 69,055 Loans receivable 153,269 157,581 Total pledged assets $ 221,019 $ 226,636

BANK PREMISES AND EQUIPMENT (Ta

BANK PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Components of premises and equipment	December 31, (in thousands) 2015 2014 Land $ 2,593 $ 2,237 Buildings and improvements 11,514 11,070 Leasehold improvements 1,682 1,953 Capital lease 425 425 Furniture, fixtures, equipment and software 6,220 5,869 Construction in progress, including land acquisition and development 185 257 Total cost 22,619 21,811 Accumulated depreciation and amortization (8,312 ) (7,380 ) Bank premises and equipment, net $ 14,307 $ 14,431

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in carrying values of goodwill and intangible assets	Years ended December 31, (in thousands) 2015 2014 2013 Goodwill (1) Balance, beginning of period $ 12,552 $ 9,829 $ 9,829 Additions — 2,723 — Impairment — — — Balance, end of period $ 12,552 $ 12,552 $ 9,829 Core Deposit Intangibles Cost, beginning of period $ 5,248 $ 2,543 $ 2,543 Union Savings branch purchase — 490 — Riverside Bank merger — 2,215 — Impairment — — — Cost, end of period 5,248 5,248 2,543 Amortization, beginning of period (2,258 ) (1,967 ) (1,745 ) Amortization (652 ) (291 ) (222 ) Amortization, end of period (2,910 ) (2,258 ) (1,967 ) Core deposit intangibles, net $ 2,338 $ 2,990 $ 576 (1) Not subject to amortization.
Estimated annual amortization expense of core deposit intangibles	Years ended December 31, (in thousands) CDI amortization 2016 $ 601 2017 461 2018 342 2019 288 2020 234 2021 180 2022 130 2023 78 2024 24

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
Scheduled maturities of time certificates of deposit	Years ended December 31, (in thousands) CD maturities 2016 $ 71,932 2017 20,124 2018 10,319 2019 12,220 2020 7,900 2021 1,799 Total $ 124,294
Total amount and scheduled maturities of time certificates of deposit	Years ended December 31, (in thousands) 2015 2014 Within three months $ 2,520 $ 2,406 After three through six months 2,624 3,568 After six through twelve months 2,929 2,900 Over one year 3,195 4,248 Total $ 11,268 $ 13,122

SECURITIES SOLD UNDER AGREEME41

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
Securities sold under repurchase agreements	December 31, (in thousands) 2015 2014 Repurchase agreements, ending balance $ 3,914 $ 4,163 Repurchase agreements, average balance during period 4,111 4,598 Book value of collateral 7,287 10,034 Market value of collateral 7,349 10,729 Weighted average rate during period 0.17 % 0.18 % Weighted average maturity 1 day 1 day

FEDERAL HOME LOAN BANK OF BOS42

FEDERAL HOME LOAN BANK OF BOSTON ADVANCES (Tables)	12 Months Ended
	Dec. 31, 2015
Banking and Thrift [Abstract]
Federal Home Loan Bank of Boston ("FHLBB") advances	December 31, 2015 December 31, 2014 Years ended December 31, (dollars in thousands) Total Callable (1) Rate (2) Total Callable (1) Rate (2) 2015 $ — $ — — % $ 791 $ — 3.88 % 2016 21 — 5.06 15,022 15,000 4.05 2017 — — — 6,000 6,000 3.99 2018 7,000 — 3.69 7,000 — 3.69 2019 — — — — — — 2020 14,337 — 2.08 — — — 2021 5,621 — 2.39 — — Total $ 26,979 $ — 2.58 % $ 28,813 $ 21,000 3.95 % (1) Net of modification costs (2) Represents the portion of advances that are callable. Callable advances are presented by scheduled maturity. Callable advances are callable quarterly or one time callable by the FHLBB. (3) Weighted average rate based on scheduled maturity dates.
Certain information concerning short-term FHLBB advances	December 31, (dollars in thousands) 2015 2014 Highest month-end balance during period $ — $ 5,545 Ending balance — — Average balance during period — 664 Weighted average rate during period 0.00 % 0.29 %

NET DEFERRED TAX ASSETS AND I43

NET DEFERRED TAX ASSETS AND INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of income tax provision	Years ended December 31, (in thousands) 2015 2014 2013 Federal $ 2,186 $ 1,057 $ 940 State 432 226 103 Current provision 2,618 1,283 1,043 Federal 896 (553 ) 215 State 49 (120 ) — Change in valuation allowance — — (349 ) Deferred expense (benefit) 945 (673 ) (134 ) Income tax provision $ 3,563 $ 610 $ 909
Reconciliation of expected federal statutory tax to income tax provision	Years ended December 31, 2015 2014 2013 Income tax at statutory federal tax rate 34.00 % 34.00 % 34.00 % State tax, net of federal tax benefit 2.63 2.23 1.35 Tax exempt income and dividends received deduction (7.38 ) (30.22 ) (18.18 ) Expiration of capital loss carry forward 0.00 0.00 7.00 Merger/acquisition related costs 0.00 7.77 0.00 Other 0.39 5.71 1.04 Change in valuation allowance 0.00 0.00 (7.00 ) Effective income tax rates 29.64 % 19.49 % 18.21 %
Components of net deferred tax assets	Years ended December 31, (in thousands) 2015 2014 Allowance for loan losses $ 1,877 $ 1,373 Interest on non-performing loans 343 236 Accrued deferred compensation 153 301 Post-retirement benefits 17 17 Other real estate owned write-downs — 72 Restricted stock awards 147 111 Mark-to-market purchase accounting adjustments 1,109 2,180 Write-down of securities 1,497 1,497 Alternative minimum tax — 540 Other 22 10 Gross deferred tax assets 5,165 6,337 Deferred loan costs, net (436 ) (538 ) Goodwill and core deposit intangible asset (853 ) (821 ) Accelerated depreciation (1,130 ) (1,209 ) Mortgage servicing rights (177 ) (255 ) Net unrealized holding gain on available-for-sale securities (580 ) (1,086 ) Gross deferred tax liabilities (3,176 ) (3,909 ) Net deferred tax asset $ 1,989 $ 2,428

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2015 Total Capital (to risk-weighted assets) Salisbury $ 92,030 13.51 % $ 54,509 8.0 % n/a — Bank 89,249 13.10 54,504 8.0 $ 68,131 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 40,878 6.0 n/a — Bank 83,340 12.23 40,878 6.0 54,504 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 76,120 11.17 30,659 4.5 n/a — Bank 83,340 12.23 30,659 4.5 44,285 6.5 Tier 1 Capital (to average assets) Salisbury 76,120 8.56 36,102 4.0 n/a — Bank 83,340 9.37 35,593 4.0 44,491 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)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Transition from providing retirement benefits under defined pension plan to defined contribution 401(K) plan	Years ended December 31, (in thousands) 2014 2013 Change in projected benefit obligation Benefit obligation at beginning of year $ 5,250 $ 6,039 Actuarial gain (977 ) (860 ) Service cost — — Interest cost 277 255 Curtailments and settlements — — Benefits paid (4,550 ) (184 ) Benefit obligation at end of year — 5,250 Change in plan assets Plan assets at estimated fair value at beginning of year 6,868 6,019 Actual return on plan assets (2,318 ) 1,033 Contributions by employer — — Curtailments and settlements — — Benefits paid (4,550 ) (184 ) Fair value of plan assets at end of year — 6,868 Funded status and recognized asset included in other assets on the balance sheet $ — $ 1,618
Components of amounts recognized in accumulated other comprehensive income, before tax effect	Years ended December 31, (in thousands) 2014 2013 Unrecognized gain (loss) $ — $ 924 Total $ — $ 924
Components of net periodic cost	Years ended December 31, (in thousands) 2014 2013 Service cost $ — $ — Interest cost on benefit obligation 277 255 Expected return on plan assets (297 ) (258 ) Amortization of net gain (loss) (1 ) — Net periodic benefit cost (21 ) (3 ) Additional amount recognized due to settlement or curtailment — — (21 ) (3 ) Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income): Net actuarial loss (gain) 923 (1,635 ) Amortization of net gain (loss) 1 — Total recognized in other comprehensive loss (income) 924 (1,635 ) Total recognized in net periodic cost and other comprehensive loss (income) $ 903 $ (1,638 )

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Changes in loans to executive officers, directors and their related associates	Years ended December 31, (in thousands) 2015 2014 Balance, beginning of period $ 8,060 $ 1,279 Additional related party loans acquired pursuant to Riverside Bank merger — 6,828 Advances 5,045 271 Repayments (4,985 ) (318 ) Balance, end of period $ 8,120 $ 8,060

COMPREHENSIVE INCOME (Tables)

COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Components of comprehensive income	Years ended December 31, (in thousands) 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Other comprehensive (loss) income Net unrealized (losses) gains on securities available-for-sale (1,297 ) 2,534 (3,743 ) Reclassification of net realized gains in net income (1) (192 ) — — Unrealized (losses) gains on securities available-for-sale (1,489 ) 2,534 (3,743 ) Income tax benefit (expense) 506 (862 ) 1,273 Unrealized (losses) gains on securities available-for-sale, net of tax (983 ) 1,672 (2,470 ) Pension plan (expense) income (see Note 14) — (924 ) 1,635 Income tax benefit (expense) — 314 (556 ) Pension plan (expense) income, net of tax — (610 ) 1,079 Other comprehensive (loss) income, net of tax (983 ) 1,062 (1,391 ) Comprehensive income $ 7,474 $ 3,583 $ 2,692 (1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of other comprehensive income (loss) and have affected certain lines in the consolidated statements of income as follows: the pretax amount is reflected as gain on securities, net; the tax effect is included in the income tax provision; and the after tax amount is included in net income.
Components of accumulated other comprehensive income	December 31, (in thousands) 2015 2014 Unrealized gains on securities available-for-sale, net of tax $ 1,125 $ 2,108 Accumulated other comprehensive income $ 1,125 $ 2,108

COMMITMENTS AND CONTINGENT LI48

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments	Future minimum lease payments (in thousands) 2016 $ 207 2017 166 2018 93 2019 79 2020 82 2021 28 2022 28 2023 16 $ 699
Future minimum lease payments under capital lease with present value of net minimum lease payments	Future minimum lease payments (in thousands) 2016 $ 73 2017 73 2018 73 2019 84 2020 84 Thereafter 693 Total minimum lease payments 1,080 Less amount representing interest 658 $ 422

FINANCIAL INSTRUMENTS (Tables)

FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, All Other Investments [Abstract]
Financial instrument liabilities with off-balance sheet credit risk	December 31, (in thousands) 2015 2014 Residential $ 6,620 $ 3,030 Home equity lines of credit 25,912 25,882 Commercial 13,922 16,751 Land 218 5 Real estate secured 46,672 45,668 Commercial and industrial 67,725 57,905 Municipal 790 — Consumer 1,507 1,537 Unadvanced portions of loans 116,694 105,110 Commitments to originate loans 37,688 20,953 Standby letters of credit 1,401 3,422 Total $ 155,783 $ 129,485

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2015 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 2,541 $ — $ 2,541 U.S. Government agency notes — 498 — 498 Municipal bonds — 30,385 — 30,385 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 32,202 — 32,202 Collateralized mortgage obligations: U.S. Government agencies — 2,014 — 2,014 Non-agency — 4,948 — 4,948 SBA bonds — 3,096 — 3,096 CRA mutual funds — 764 — 764 Preferred stock 246 — — 246 Securities available-for-sale $ 246 $ 76,448 $ — $ 76,694 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 15,211 15,211 Mortgage servicing rights — 1,315 — 1,315 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 Mortgage servicing rights — 1,568 — 1,568 Other real estate owned — — 1,002 1,002
Carrying value and estimated fair values of financial instruments	Carrying Estimated Fair value measurements using (In thousands) value fair value Level 1 Level 2 Level 3 December 31, 2015 Financial Assets Cash and cash equivalents $ 62,118 $ 62,118 $ 62,118 $ — $ — Securities available-for-sale 76,694 76,694 246 76,448 — Federal Home Loan Bank stock 3,176 3,176 — 3,176 — Loans held-for-sale 763 778 — — 778 Loans receivable, net 699,018 707,154 — — 707,154 Accrued interest receivable 2,307 2,307 — — 2,307 Cash surrender value of life insurance 13,685 13,685 13,685 — — Financial Liabilities Demand (non-interest-bearing) $ 201,340 $ 201,340 $ — $ — $ 201,340 Demand (interest-bearing) 125,465 125,465 — — 125,465 Money market 183,783 183,783 — — 183,783 Savings and other 119,651 119,651 — — 119,651 Certificates of deposit 124,294 125,437 — — 125,437 Deposits 754,533 755,676 — — 755,676 Repurchase agreements 3,914 3,914 — — 3,914 FHLBB advances 26,979 28,559 — — 28,559 Subordinated debt 9,764 9,764 — — 9,764 Note payable 376 405 — — 405 Capital lease liability 422 870 — — 870 Accrued interest payable 150 150 — — 150 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

SALISBURY BANCORP (PARENT ONL51

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Unconsolidated balance sheets of Salisbury Bancorp, Inc.	Balance Sheets 2015 2014 Assets Cash and due from banks $ 2,612 $ 9,436 Investment in bank subsidiary 97,794 92,531 Other assets 5 6 Total Assets $ 100,411 $ 101,973 Liabilities and Shareholders' Equity Subordinated debt $ 9,764 $ — Other liabilities 73 152 Shareholders' equity 90,574 101,821 Total Liabilities and Shareholders' Equity $ 100,411 $ 101,973
Unconsolidated statements of income of Salisbury Bancorp, Inc.	Statements of Income 2015 2014 2013 Dividends from subsidiary $ 2,743 $ 2,143 $ 2,128 Interest income 19 21 27 Interest expense 35 — — Expenses 511 986 394 Income before taxes and equity in undistributed net income of subsidiary 2,216 1,178 1,761 Income tax benefit 192 91 — Income before equity in undistributed net income of subsidiary 2,408 1,269 1,761 Equity in undistributed net income of subsidiary 6,049 1,252 2,322 Net income $ 8,457 $ 2,521 $ 4,083
Unconsolidated statements of cash flows of Salisbury Bancorp, Inc.	Statements of Cash Flows 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary (6,049 ) (1,252 ) (2,322 ) Other (275 ) 85 24 Net cash provided by operating activities 2,133 1,354 1,785 Investing Activities Investment in bank — (27,251 ) — Maturities (purchases) of interest-bearing time deposits of other banks — 738 (738 ) Maturities of securities available-for-sale — — — Net cash utilized by investing activities — (26,513 ) (738 ) Financing Activities Common stock dividends paid (3,054 ) (1,918 ) (1,915 ) Preferred stock dividends paid (158 ) (166 ) (161 ) Proceeds from issuance of subordinated debt, net of issue cost 9,764 — — Payment to repurchase preferred stock (16,000 ) — — Proceeds from issuance of common stock 491 126 34 Issuance of Salisbury stock to Riverside shareholders — 27,251 — Net cash (utilized) provided by financing activities (8,957 ) 25,293 (2,042 ) (Decrease) increase in cash and cash equivalents (6,824 ) 134 (995 ) Cash and cash equivalents, beginning of period 9,436 9,302 10,297 Cash and cash equivalents, end of period $ 2,612 $ 9,436 $ 9,302

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Calculation of earnings per share	Years ended December 31, (in thousands, except per share amounts) 2015 2014 2013 Net income $ 8,457 $ 2,521 $ 4,083 Less: Preferred stock dividends declared (158 ) (166 ) (161 ) Net income available to common shareholders 8,299 2,355 3,922 Less: Undistributed earnings allocated to participating securities (72 ) (27 ) (39 ) Net income allocated to common stock $ 8,227 $ 2,328 $ 3,883 Weighted average common shares issued 2,730 1,785 1,710 Less: Unvested restricted stock awards (24 ) (21 ) (19 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,706 1,764 1,691 Add: Dilutive effect of unvested restricted stock awards 17 1 — Weighted average common shares outstanding used to calculate diluted earnings per common share 2,723 1,765 1,691 Earnings per common share (basic) $ 3.04 $ 1.32 $ 2.30 Earnings per common share (diluted) $ 3.02 $ 1.32 $ 2.30

SELECTED QUARTERLY CONSOLIDAT53

SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Selected quarterly consolidated financial data	Year ended December 31, 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Statement of Income Interest and dividend income $ 8,671 $ 8,545 $ 8,650 $ 8,705 Interest expense 745 753 753 775 Net interest and dividend income 7,926 7,792 7,897 7,930 (Benefit) provision for loan losses (200 ) 196 655 266 Gains on securities, net 175 11 6 — Trust and Wealth Advisory 822 890 798 755 Service charges and fees 731 778 798 763 Gains on sales of mortgage loans, net 93 87 47 47 Mortgage servicing, net (40 ) 20 5 16 Other 115 114 115 166 Non-interest income 1,896 1,900 1,769 1,747 Non-interest expense 6,835 6,539 6,202 6,344 Income before income taxes 3,187 2,957 2,809 3,067 Income tax provision 953 885 824 901 Net income 2,234 2,072 1,985 2,166 Net income available to common shareholders 2,194 2,032 1,945 2,128 Financial Condition Total assets $ 865,037 $ 860,794 $ 904,233 $ 891,192 Loans, net 676,734 677,726 687,719 699,018 Allowance for loan losses 5,182 5,059 5,659 5,716 Securities 84,694 92,932 83,886 79,870 Deposits 724,910 720,734 761,479 754,533 Repurchase agreements 3,278 2,771 4,210 3,914 FHLBB advances 28,403 28,033 26,928 26,979 Shareholders' equity 103,211 104,104 105,450 90,574 Non-performing assets 14,875 14,995 16,602 16,264 Per Common Share Data Earnings, basic $ 0.81 $ 0.74 $ 0.71 $ 0.78 Earnings, diluted 0.80 0.74 0.71 0.77 Cash dividends declared 0.28 0.28 0.28 0.28 Cash dividends paid 0.28 0.28 0.28 0.28 Book value 31.96 32.26 32.72 33.13 Market price: (a) High 30.39 32.30 31.74 33.70 Low 26.08 28.80 28.38 28.80 Statistical Data Net interest margin (fully tax equivalent) 4.11 % 4.01 % 3.91 % 3.88 % Efficiency ratio (fully tax equivalent) 65.45 62.91 60.40 63.64 Return on average assets 1.03 0.94 0.87 0.94 Return on average shareholders' equity 10.22 9.26 8.64 9.34 Weighted average common shares outstanding, basic 2,699 2,706 2,708 2,710 Weighted average common shares outstanding, diluted 2,716 2,724 2,724 2,727 (a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions. Year ended December 31, 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Statement of Income Interest and dividend income $ 5,443 $ 5,552 $ 5,444 $ 6,416 Interest expense 668 647 690 699 Net interest and dividend income 4,775 4,905 4,754 5,717 Provision for loan losses 337 314 318 165 Trust and Wealth Advisory 779 939 791 786 Service charges and fees 542 626 639 666 Gains on sales of mortgage loans, net 11 32 — 21 Mortgage servicing, net 27 11 41 15 Other 79 74 82 91 Non-interest income 1,438 1,682 1,553 1,579 Non-interest expense 5,110 5,068 5,108 6,852 Income before income taxes 766 1,205 881 279 Income tax provision 215 239 113 43 Net income 551 966 768 236 Net income available to common shareholders 505 926 728 196 Financial Condition Total assets $ 589,771 $ 621,476 $ 638,089 $ 855,427 Loans, net 446,518 456,627 461,913 673,330 Allowance for loan losses 4,894 5,102 5,384 5,358 Securities 98,015 92,884 88,960 94,827 Deposits 477,512 507,361 522,294 715,426 Repurchase agreements 2,643 4,344 6,500 4,163 FHLBB advances 30,017 29,619 29,218 28,813 Shareholders' equity 74,001 75,000 75,516 101,821 Non-performing assets 8,526 8,757 8,945 10,892 Per Common Share Data Earnings, basic and diluted $ 0.29 $ 0.54 $ 0.43 $ 0.10 Cash dividends declared 0.28 0.28 0.28 0.28 Cash dividends paid 0.28 0.28 0.28 0.28 Book value 33.90 34.44 34.74 31.54 Market price: (a) High 27.58 30.98 30.70 28.39 Low 25.90 27.13 26.95 25.88 Statistical Data Net interest margin (fully tax equivalent) Efficiency ratio (fully tax equivalent) 3.72 % 3.74 % 3.39 % 3.68 % Return on average assets 77.11 72.35 75.92 77.80 Return on average shareholders' equity 0.35 0.62 0.45 0.11 Weighted average equivalent shares outstanding, basic and diluted 1,691 1,691 1,693 1,981 (a) The above market prices reflect inter-dealer prices, without retail markup, markdown or commissions, and may not necessarily represent actual transactions.

SUMMARY OF SIGNIFICANT ACCOUN54

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Bank Premises and Equipment (Details Narrative)	12 Months Ended
	Dec. 31, 2015
Building/Improvements
Expected useful life	39 years
Land Improvements
Expected useful life	15 years
Furniture and Fixtures
Expected useful life	7 years
Computer Equipment
Expected useful life	5 years
Software
Expected useful life	3 years

SUMMARY OF SIGNIFICANT ACCOUN55

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details Narrative)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net transaction accounts over $14.5 million, up to and including $103.6 million
Reserve ratio	3.00%
Net transaction accounts in excess of $103.6 million
Reserve ratio	10.00%
Net transaction accounts over $13.3 million, up to and including $89.0 million
Reserve ratio		3.00%
Net transaction accounts in excess of $89.0 million
Reserve ratio		10.00%

SUMMARY OF SIGNIFICANT ACCOUN56

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Changes in carrying values of goodwill and intangible assets
Goodwill from purchases and acquisitions	$ 2,358	$ 2,358
Canaan National Bancorp, Inc. acquisition in 2004
Goodwill from purchases and acquisitions	7,152	7,152
Branch office purchase in New York State in 2007
Goodwill from purchases and acquisitions	319	319
Riverside Bank acquisition in December 2014
Goodwill from purchases and acquisitions	$ 2,723	$ 2,723

SUMMARY OF SIGNIFICANT ACCOUN57

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Real Estate Owned (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Summary Of Significant Accounting Policies - Other Real Estate Owned Details Narrative
Recorded investment in residential mortgage loans collateralized by residential real estate in process of foreclosure	$ 2,900

MERGERS AND ACQUISITIONS - Cons

MERGERS AND ACQUISITIONS - Consideration paid (Details) - Consideration Paid $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Salisbury Bancorp common stock issued to Riverside Bank common stockholders	$ 27,230
Cash consideration paid for fractional shares	1
Riverside stock options, vested upon acquisition	20
Total consideration paid	$ 27,251

MERGERS AND ACQUISITIONS - Reco

MERGERS AND ACQUISITIONS - Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value (Details) $ in Thousands	Dec. 31, 2015USD ($)
As Acquired
Cash and cash equivalents	$ 18,650
Investment securities	11,820
Loans	204,398
Premises and equipment	1,046
Other assets	$ 7,006
Core deposit intangible
Deposits	$ (210,559)
Other liabilities	(1,733)
Total identifiable net assets	$ 30,628
Goodwill
Fair Value Adjustment
Cash and cash equivalents
Investment securities	$ (78)
Loans	(8,093)
Premises and equipment	$ 497
Other assets
Core deposit intangible	$ 2,215
Deposits	$ (641)
Other liabilities
Total identifiable net assets	$ (6,100)
Goodwill
As Recorded at Aquisition
Cash and cash equivalents	$ 18,650
Investment securities	11,742
Loans	196,305
Premises and equipment	1,543
Other assets	7,006
Core deposit intangible	2,215
Deposits	(211,200)
Other liabilities	(1,733)
Total identifiable net assets	24,528
Goodwill	$ 2,723

MERGERS AND ACQUISITIONS - Acqu

MERGERS AND ACQUISITIONS - Acquired loan portfolio and activity in the accretable yield (Details) - ASC 310-30 Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Acquired loan portfolio subject to purchased credit impaired loan accounting guidance
Contractually required principal and interest at acquisition		$ 16,209
Contractual cash flows not expected to be collected (nonaccretable discount)		(4,288)
Expected cash flows at acquisition		11,921
Interest component of expected cash flows (accretable discount)		(1,293)
Fair value of acquired loans		$ 10,628
Activity in accretable yield for acquired loan portfolio
Balance at beginning of period	$ 1,242
Acquisitions		$ 1,293
Accretion	$ (1,109)	$ (51)
Reclassification from non-accretable to accretable	1,768
Balance at end of period	$ 1,901	$ 1,242

MERGERS AND ACQUISITIONS - Pro

MERGERS AND ACQUISITIONS - Pro forma results of operations of Riverside Bank since acquisition date (Details) - Pro forma results of operations of Riverside Bank since acquisition date - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Total revenue	$ 39,841	$ 39,640
Net income	6,411	7,136
Net income available to common shareholders	$ 6,245	$ 6,975
Earnings per share
Basic	$ 2.26	$ 2.59
Diluted	$ 2.24	$ 2.57

MERGERS AND ACQUISITIONS (Detai

MERGERS AND ACQUISITIONS (Details Narrative) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014USD ($)shares	Dec. 31, 2013USD ($)	Dec. 31, 2015USD ($)	Dec. 05, 2014USD ($)$ / sharesshares
ASC 310-30 loans, outstanding balance	$ 13,300		$ 10,900
ASC 310-30 loans, carrying value	$ 10,600		$ 8,900
Mergers and Acquisitions
Stock issued to Riverside Bank shareholders | shares	1,001,485
Outstanding shares of Riverside Bank on acquisition date | shares				741,876
Exchange ratio for each share of Riverside Bank stock				1.35
Value per share of stock issued | $ / shares				$ 27.19
Consideration paid	$ 27,251
Cash consideration paid to settle all fractional shares outstanding of Riverside bank	1
Carrying amount of loans accounted for in accordance with ASC 310-30				$ 13,700
Carrying value of non-impaired loans not accounted for under ASC 310-30				$ 190,700
Direct merger, acquisition and integration costs expensed	$ 2,000	$ 312

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Amortized cost (1)
Available-for-sale
U.S. Treasury notes	$ 2,499	$ 2,699
U.S. Government Agency notes	498	5,850
Municipal bonds	29,752	38,962
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	31,900	27,036
Collateralized mortgage obligations, U.S. Government agencies	2,002	2,657
Collateralized mortgage obligations, Non-agency	4,487	6,056
SBA bonds	3,065	4,336
CRA mutual funds	766	502
Preferred Stock	20	20
Total securities available-for-sale	74,989	88,118
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,176	3,515
Gross unrealized gains
Available-for-sale
U.S. Treasury notes	$ 42	107
U.S. Government Agency notes		24
Municipal bonds	$ 633	1,455
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	385	688
Collateralized mortgage obligations, U.S. Government agencies	12	22
Collateralized mortgage obligations, Non-agency	468	552
SBA bonds	$ 31	129
CRA mutual funds		2
Preferred Stock	$ 226	307
Total securities available-for-sale	$ 1,797	$ 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		$ (65)
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	$ (83)	$ (15)
Collateralized mortgage obligations, U.S. Government agencies
Collateralized mortgage obligations, Non-agency	$ (7)	$ (12)
SBA bonds
CRA mutual funds	$ (2)
Preferred Stock
Total securities available-for-sale	$ (92)	$ (92)
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Treasury notes	$ 2,541	$ 2,806
U.S. Government Agency notes	498	5,874
Municipal bonds	30,385	40,352
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	32,202	27,709
Collateralized mortgage obligations, U.S. Government agencies	2,014	2,679
Collateralized mortgage obligations, Non-agency	4,948	6,596
SBA bonds	3,096	4,465
CRA mutual funds	764	504
Preferred Stock	246	327
Total securities available-for-sale	76,694	91,312
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,176	$ 3,515

SECURITIES - Sales of securitie

SECURITIES - Sales of securities available-for-sale and gains realized (Details) - Components of sales of securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Proceeds	$ 3,861
Gains realized	180
Losses realized	(27)
Net gains realized	153
Income tax provision	$ 52

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Less Than 12 Months, Fair value
Available-for-sale
Municipal bonds		$ 177
Mortgage-backed securities	$ 14,750	56
Collateralized mortgage obligations, Non-agency	237	441
CRA mutual funds	764
Total temporarily impaired securities	15,751	674
Less Than 12 Months, Unrealized losses
Available-for-sale
Municipal bonds		1
Mortgage-backed securities	$ 83	1
Collateralized mortgage obligations, Non-agency		7
CRA mutual funds	$ 2
Total temporarily impaired securities	85	9
12 Months or Longer, Fair value
Available-for-sale
Municipal bonds		1,589
Mortgage-backed securities	53	1,885
Collateralized mortgage obligations, Non-agency	$ 226	164
CRA mutual funds
Total temporarily impaired securities	$ 279	3,638
12 Months or Longer, Unrealized losses
Available-for-sale
Municipal bonds		64
Mortgage-backed securities		14
Collateralized mortgage obligations, Non-agency	$ 7	5
CRA mutual funds
Total temporarily impaired securities	$ 7	83
Total, Fair value
Available-for-sale
Municipal bonds		1,766
Mortgage-backed securities	14,803	1,941
Collateralized mortgage obligations, Non-agency	463	605
CRA mutual funds	764
Total temporarily impaired securities	16,030	4,312
Total, Unrealized losses
Available-for-sale
Municipal bonds		65
Mortgage-backed securities	83	15
Collateralized mortgage obligations, Non-agency	7	12
CRA mutual funds	2
Total temporarily impaired securities	$ 92	$ 92

SECURITIES - Securities amortiz

SECURITIES - Securities amortized cost; fair value and tax equivalent yield by maturity (Details) $ in Thousands	Dec. 31, 2015USD ($)
Amortized cost, Within 1 year
U.S. Treasury notes	$ 2,499
Municipal bonds	254
Fair value, Within 1 year
U.S. Treasury notes	2,541
Municipal bonds	$ 254
Yield, Within 1 year
U.S. Treasury notes, Yield	3.00%
Municipal bonds, Yield	5.60%
Amortized cost, After 1 year but within 5 years
U.S. Treasury notes	$ 2,497
U.S. Government Agency notes	498
Municipal bonds	1,217
Fair value, After 1 year but within 5 years
U.S. Treasury notes	2,604
U.S. Government Agency notes	498
Municipal bonds	$ 1,225
Yield, After 1 year but within 5 years
U.S. Treasury notes, Yield	3.00%
U.S. Government Agency notes, Yield	0.88%
Municipal bonds, Yield	5.57%
Amortized cost, After 5 years but within 10 years
Municipal bonds	$ 1,894
Fair value, After 5 years but within 10 years
Municipal bonds	$ 1,922
Yield, After 5 years but within 10 years
U.S. Government Agency notes, Yield	1.25%
Municipal bonds, Yield	6.38%
Amortized cost, After 10 years but within 15 years
Municipal bonds	$ 2,632
Fair value, After 10 years but within 15 years
Municipal bonds	$ 2,708
Yield, After 10 years but within 15 years
Municipal bonds, Yield	6.30%
Amortized cost, After 15 years
Municipal bonds	$ 23,755
Fair value, After 15 years
Municipal bonds	$ 24,276
Yield, After 15 years
U.S. Government Agency notes, Yield	5.38%
Municipal bonds, Yield	6.68%
Amortized cost, total
U.S. Treasury notes	$ 2,499
U.S. Government Agency notes	498
Municipal bonds	29,752
Mortgage-backed securities, U.S. Government agency and U.S. Government-sponsored enterprises	31,900
Collateralized mortgage obligations, U.S. Government agency and U.S. Government-sponsored enterprises	2,002
Collateralized mortgage obligations, Non-agency	4,487
SBA bonds	3,065
CRA mutual funds	766
Preferred Stock	20
Securities available-for-sale	74,989
Fair value, total
U.S. Treasury notes	2,541
U.S. Government Agency notes	498
Municipal bonds	30,385
Mortgage-backed securities, U.S. Government agency and U.S. Government-sponsored enterprises	32,202
Collateralized mortgage obligations, U.S. Government agency and U.S. Government-sponsored enterprises	2,014
Collateralized mortgage obligations, Non-agency	4,948
SBA bonds	3,096
CRA mutual funds	764
Preferred Stock	246
Securities available-for-sale	$ 76,694
Yield, total
U.S. Treasury notes, Yield	3.00%
U.S. Government Agency notes, Yield	0.88%
Municipal bonds, Yield	6.57%
Mortgage-backed securities, U.S. Government agency and U.S. Government-sponsored enterprises, Yield	2.96%
Collateralized mortgage obligations, U.S. Government agency and U.S. Government-sponsored enterprises, Yield	1.02%
Collateralized mortgage obligations, Non-agency, Yield	4.20%
SBA bonds, Yield	2.93%
CRA mutual funds, Yield	2.07%
Preferred Stock, Yield	2.26%
Securities available-for-sale, Yield	4.47%

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Recognized losses for deterioration in credit quality	$ 1,128
CRA mutual funds total fair value		$ 764
CRA mutual funds total unrealized losses	$ 2

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activites Loans
Residential 1-4 family	$ 261,495	$ 252,258
Residential 5+ multifamily	6,411	5,556
Construction of residential 1-4 family	7,998	2,004
Home equity lines of credit	35,017	34,627
Residential real estate	310,921	294,445
Commercial	129,446	98,498
Construction of commercial	6,525	18,602
Commercial real estate	135,971	117,100
Farm land	3,193	3,239
Vacant land	8,563	9,342
Real estate secured	458,648	424,126
Commercial and industrial	74,657	49,204
Municipal	9,566	6,083
Consumer	6,195	4,334
Loans receivable, gross	549,066	483,747
Deferred loan origination fees and costs, net	1,189	1,203
Allowance for loan losses	(5,481)	(5,337)
Loans receivable, net	544,774	479,613
Loans held-for-sale
Residential 1-4 family	763	568
Acquired Loans
Residential 1-4 family	7,799	9,223
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,935	$ 17,958
Commercial	88,829	97,899
Construction of commercial	4,874	9,045
Commercial real estate	$ 93,703	$ 106,944
Farm land
Vacant land
Real estate secured	$ 107,638	$ 124,902
Commercial and industrial	$ 46,764	$ 68,714
Municipal
Consumer	$ 77	$ 122
Loans receivable, gross	$ 154,479	$ 193,738
Deferred loan origination fees and costs, net
Allowance for loan losses	$ (235)	$ (21)
Loans receivable, net	$ 154,244	$ 193,717
Loans held-for-sale
Residential 1-4 family
Total
Residential 1-4 family	$ 269,294	$ 261,481
Residential 5+ multifamily	12,547	14,291
Construction of residential 1-4 family	7,998	2,004
Home equity lines of credit	35,017	34,627
Residential real estate	324,856	312,403
Commercial	218,275	196,397
Construction of commercial	11,399	27,647
Commercial real estate	229,674	224,044
Farm land	3,193	3,239
Vacant land	8,563	9,342
Real estate secured	566,286	549,028
Commercial and industrial	121,421	117,918
Municipal	9,566	6,083
Consumer	6,272	4,456
Loans receivable, gross	703,545	677,485
Deferred loan origination fees and costs, net	1,189	1,203
Allowance for loan losses	(5,716)	(5,358)
Loans receivable, net	699,018	673,330
Loans held-for-sale
Residential 1-4 family	$ 763	$ 568

LOANS - Composition of loans 69

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans - Pass
Residential 1-4 family	$ 248,027	$ 232,628
Residential 5+ multifamily	4,507	3,420
Construction of residential 1-4 family	7,111	2,004
Home equity lines of credit	33,687	32,639
Residential real estate	293,332	270,691
Commercial	120,903	79,975
Construction of commercial	6,525	18,024
Commercial real estate	127,428	97,999
Farm land	2,162	772
Vacant land	5,567	6,039
Real estate secured	428,489	375,501
Commercial and industrial	72,887	44,903
Municipal	9,566	6,083
Consumer	6,171	4,271
Loans receivable, gross	517,113	430,758
Business Activities Loans - Special mention
Residential 1-4 family	6,933	12,350
Residential 5+ multifamily	1,815	$ 1,072
Construction of residential 1-4 family	887
Home equity lines of credit	545	$ 807
Residential real estate	10,180	14,229
Commercial	$ 4,801	$ 10,728
Construction of commercial
Commercial real estate	$ 4,801	$ 10,728
Farm land		1,361
Vacant land	$ 69	140
Real estate secured	15,050	26,458
Commercial and industrial	$ 1,214	$ 3,527
Municipal
Consumer	$ 18	$ 53
Loans receivable, gross	16,282	30,038
Business Activities Loans - Substandard
Residential 1-4 family	6,444	7,187
Residential 5+ multifamily	$ 89	$ 1,064
Construction of residential 1-4 family
Home equity lines of credit	$ 785	$ 1,181
Residential real estate	7,318	9,432
Commercial	$ 3,742	7,795
Construction of commercial		578
Commercial real estate	$ 3,742	8,373
Farm land	1,031	1,106
Vacant land	2,927	3,163
Real estate secured	15,018	22,074
Commercial and industrial	$ 555	$ 774
Municipal
Consumer	$ 6	$ 10
Loans receivable, gross	15,579	22,858
Business Activities Loans - Doubtful
Residential 1-4 family	$ 91	$ 93
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 91	$ 93
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 91	$ 93
Commercial and industrial	$ 1
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 lines of 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	$ 261,495	$ 252,258
Residential 5+ multifamily	6,411	5,556
Construction of residential 1-4 family	7,998	2,004
Home equity lines of credit	35,017	34,627
Residential real estate	310,921	294,445
Commercial	129,446	98,498
Construction of commercial	6,525	18,602
Commercial real estate	135,971	117,100
Farm land	3,193	3,239
Vacant land	8,563	9,342
Real estate secured	458,648	424,126
Commercial and industrial	74,657	49,204
Municipal	9,566	6,083
Consumer	6,195	4,334
Loans receivable, gross	549,066	483,747
Acquired Loans - Pass
Residential 1-4 family	6,824	8,661
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 12,960	$ 17,396
Commercial	80,406	89,820
Construction of commercial	4,612	9,045
Commercial real estate	$ 85,018	$ 98,865
Farm land
Vacant land
Real estate secured	$ 97,978	$ 116,261
Commercial and industrial	$ 45,363	$ 66,098
Municipal
Consumer	$ 71	$ 96
Loans receivable, gross	143,412	$ 182,455
Acquired Loans - Special Mention
Residential 1-4 family	$ 199
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 199
Commercial	$ 4,005	$ 3,830
Construction of commercial
Commercial real estate	$ 4,005	$ 3,830
Farm land
Vacant land
Real estate secured	$ 4,204	$ 3,830
Commercial and industrial	$ 875	$ 1,675
Municipal
Consumer	$ 6	$ 7
Loans receivable, gross	5,085	5,512
Acquired Loans - Substandard
Residential 1-4 family	$ 776	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 776	$ 562
Commercial	4,418	$ 3,723
Construction of commercial	262
Commercial real estate	$ 4,680	$ 3,723
Farm land
Vacant land
Real estate secured	$ 5,456	$ 4,285
Commercial and industrial	$ 443	$ 941
Municipal
Consumer		$ 19
Loans receivable, gross	$ 5,899	$ 5,245
Acquired Loans - Doubtful
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial		$ 526
Construction of commercial
Commercial real estate		$ 526
Farm land
Vacant land
Real estate secured		$ 526
Commercial and industrial	$ 83
Municipal
Consumer
Loans receivable, gross	$ 83	$ 526
Acquired Loans - Loss
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of 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	$ 7,799	$ 9,223
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,935	$ 17,958
Commercial	88,829	97,899
Construction of commercial	4,874	9,045
Commercial real estate	$ 93,703	$ 106,944
Farm land
Vacant land
Real estate secured	$ 107,638	$ 124,902
Commercial and industrial	$ 46,764	$ 68,714
Municipal
Consumer	$ 77	$ 122
Loans receivable, gross	$ 154,479	$ 193,738

LOANS - Composition of loans 70

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans - Current
Residential 1-4 family	$ 254,152	$ 241,567
Residential 5+ multifamily	6,254	5,467
Construction of residential 1-4 family	7,826	2,004
Home equity lines of credit	33,744	33,488
Residential real estate	301,976	282,526
Commercial	126,440	94,598
Construction of commercial	6,525	18,602
Commercial real estate	132,965	113,200
Farm land	2,172	2,119
Vacant land	5,734	6,422
Real estate secured	442,847	404,267
Commercial and industrial	73,698	48,478
Municipal	9,566	6,083
Consumer	6,096	4,274
Loans receivable, gross	532,207	463,102
Business Activities Loans - Past due 1-29 days
Residential 1-4 family	$ 1,781	$ 7,299
Residential 5+ multifamily
Construction of residential 1-4 family	$ 172
Home equity lines of credit	363	$ 387
Residential real estate	2,316	7,686
Commercial	$ 1,618	$ 2,079
Construction of commercial
Commercial real estate	$ 1,618	$ 2,079
Farm land	$ 298
Vacant land		$ 51
Real estate secured	$ 4,232	9,816
Commercial and industrial	$ 906	$ 582
Municipal
Consumer	$ 61	$ 47
Loans receivable, gross	5,199	10,445
Business Activities Loans - Past due 30-59 days
Residential 1-4 family	1,931	$ 1,250
Residential 5+ multifamily	$ 68
Construction of residential 1-4 family
Home equity lines of credit	$ 306	$ 122
Residential real estate	2,305	1,372
Commercial	$ 474	$ 602
Construction of commercial
Commercial real estate	$ 474	$ 602
Farm land		13
Vacant land	$ 6	7
Real estate secured	2,785	1,994
Commercial and industrial	$ 35	$ 91
Municipal
Consumer	$ 21	$ 8
Loans receivable, gross	2,841	2,093
Business Activities Loans - Past due 60-89 days
Residential 1-4 family	$ 683	$ 555
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	$ 101	$ 528
Residential real estate	$ 784	$ 1,083
Commercial
Construction of commercial
Commercial real estate
Farm land		$ 723
Vacant land
Real estate secured	$ 784	$ 1,806
Commercial and industrial		$ 17
Municipal
Consumer	$ 17	$ 5
Loans receivable, gross	801	1,828
Business Activities Loans - Past due 90-179 days
Residential 1-4 family	$ 973	976
Residential 5+ multifamily		$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 113	$ 39
Residential real estate	1,086	$ 1,104
Commercial	$ 233
Construction of commercial
Commercial real estate	$ 233
Farm land
Vacant land		$ 39
Real estate secured	$ 1,319	1,143
Commercial and industrial		$ 36
Municipal
Consumer
Loans receivable, gross	$ 1,319	$ 1,179
Business Activities Loans - Past due 180 days and over
Residential 1-4 family	1,975	$ 611
Residential 5+ multifamily	$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 390	$ 63
Residential real estate	2,454	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	6,681	$ 5,100
Commercial and industrial	$ 18
Municipal
Consumer
Loans receivable, gross	$ 6,699	$ 5,100
Business Activities Loans - Past due 30 days and over
Residential 1-4 family	5,562	3,392
Residential 5+ multifamily	$ 157	$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 910	$ 752
Residential real estate	6,629	4,233
Commercial	$ 1,388	$ 1,821
Construction of commercial
Commercial real estate	$ 1,388	$ 1,821
Farm land	723	1,120
Vacant land	2,829	2,869
Real estate secured	11,569	10,043
Commercial and industrial	$ 53	$ 144
Municipal
Consumer		$ 13
Loans receivable, gross	$ 11,660	$ 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 lines of credit
Residential real estate
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured
Commercial and industrial		$ 17
Municipal
Consumer
Loans receivable, gross		$ 17
Business Activities Loans - Non-accrual
Residential 1-4 family	$ 5,671	2,445
Residential 5+ multifamily	$ 89	$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 601	$ 348
Residential real estate	6,361	2,882
Commercial	$ 2,349	$ 1,219
Construction of commercial
Commercial real estate	$ 2,349	$ 1,219
Farm land	1,031	384
Vacant land	2,855	2,862
Real estate secured	12,596	7,347
Commercial and industrial	$ 461	$ 33
Municipal
Consumer	$ 80
Loans receivable, gross	13,137	$ 7,380
Acquired Loans - Current
Residential 1-4 family	6,823	8,661
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 12,959	$ 17,396
Commercial	81,140	95,695
Construction of commercial	4,612	3,045
Commercial real estate	$ 85,752	$ 104,740
Farm land
Vacant land
Real estate secured	$ 98,711	$ 122,136
Commercial and industrial	$ 46,128	$ 67,665
Municipal
Consumer	$ 77	$ 117
Loans receivable, gross	$ 144,916	$ 189,918
Acquired Loans - Past due 1-29 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	$ 4,848	$ 1,109
Construction of commercial
Commercial real estate	$ 4,848	$ 1,109
Farm land
Vacant land
Real estate secured	$ 4,848	$ 1,109
Commercial and industrial	$ 471	$ 740
Municipal
Consumer		$ 5
Loans receivable, gross	$ 5,319	$ 1,854
Acquired Loans - Past due 30-59 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	$ 916	$ 167
Construction of commercial
Commercial real estate	$ 916	$ 167
Farm land
Vacant land
Real estate secured	$ 916	$ 167
Commercial and industrial	$ 83	$ 89
Municipal
Consumer
Loans receivable, gross	$ 999	$ 256
Acquired Loans - Past due 60-89 days
Residential 1-4 family	$ 110
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 110
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 110
Commercial and industrial	$ 82	$ 220
Municipal
Consumer
Loans receivable, gross	$ 192	$ 220
Acquired Loans - Past due 90-179 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial		$ 285
Construction of commercial
Commercial real estate		$ 285
Farm land
Vacant land
Real estate secured		$ 285
Commercial and industrial
Municipal
Consumer
Loans receivable, gross		$ 285
Acquired Loans - Past due 180 days and over
Residential 1-4 family	$ 866	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 866	$ 562
Commercial	1,925	$ 643
Construction of commercial	262
Commercial real estate	$ 2,187	$ 643
Farm land
Vacant land
Real estate secured	$ 3,053	$ 1,205
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 3,053	$ 1,205
Acquired Loans - Past due 30 days and over
Residential 1-4 family	$ 976	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 976	$ 562
Commercial	2,841	$ 1,095
Construction of commercial	262
Commercial real estate	$ 3,103	$ 1,095
Farm land
Vacant land
Real estate secured	$ 4,079	$ 1,657
Commercial and industrial	$ 165	$ 309
Municipal
Consumer
Loans receivable, gross	$ 4,244	$ 1,966
Acquired Loans - Accruing 90 days and over
Residential 1-4 family	$ 90
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 90
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 90
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 90
Acquired Loans - Non-accrual
Residential 1-4 family	$ 766	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 766	$ 562
Commercial	2,000	$ 1,931
Construction of commercial	262
Commercial real estate	$ 2,262	$ 1,931
Farm land
Vacant land
Real estate secured	$ 3,038	$ 2,493
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 3,038	$ 2,493

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Integer	Dec. 31, 2014USD ($)Integer
Business Activities Loans - Residential real estate
Quantity of troubled debt restructurings | Integer	3	4
Pre-modification balance	$ 1,071	$ 308
Post-modification balance	$ 1,071	$ 308
Business Activities Loans - Land
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer	1	4
Pre-modification balance	$ 294	$ 1,076
Post-modification balance	$ 294	$ 1,076
Business Activities Loans - Construction of commercial
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 131
Post-modification balance		$ 131
Business Activities Loans - Consumer
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Commercial and industrial
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - HELOC
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 35
Post-modification balance	$ 35
Business Activities Loans - Total Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	5	9
Pre-modification balance	$ 1,400	$ 1,515
Post-modification balance	$ 1,400	$ 1,515
Business Activities Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 294
Post-modification balance	$ 294
Business Activities Loans - Interest only pursuant to sale
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 24
Post-modification balance		$ 24
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 - Interest only pursuant to sale and term extension
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 230
Post-modification balance		$ 230
Business Activities Loans - Interest only
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 30
Post-modification balance		$ 30
Business Activities Loans - Debt consolidation and term extension
Quantity of troubled debt restructurings | Integer	1	2
Pre-modification balance	$ 148	$ 447
Post-modification balance	$ 148	$ 447
Business Activities Loans - Rate reduction
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Rate reduction interest only
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Debt consolidation, rate reduction, term extension and note bifurcation
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 48	$ 399
Post-modification balance	$ 48	$ 399
Business Activities Loans - Rate reduction and debt consolidation
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Term extension
Quantity of troubled debt restructurings | Integer	2	2
Pre-modification balance	$ 910	$ 337
Post-modification balance	$ 910	$ 337
Acquired Loans - Residential real estate
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Land
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 184	$ 571
Post-modification balance	$ 184	$ 571
Acquired Loans - Construction of commercial
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Consumer
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Commercial and industrial
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - HELOC
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Total Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 184	$ 571
Post-modification balance	$ 184	$ 571
Acquired Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 184
Post-modification balance	$ 184
Acquired Loans - Interest only pursuant to sale
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Interest only and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Interest only pursuant to sale and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Interest only
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Debt consolidation and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Rate reduction
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 571
Post-modification balance		$ 571
Acquired Loans - Rate reduction interest only
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Debt consolidation, rate reduction, term extension and note bifurcation
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Rate reduction and debt consolidation
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance

LOANS - Recorded investment and

LOANS - Recorded investment and number of modifications for TDRs (Details) $ in Thousands	Dec. 31, 2014USD ($)Integer
Residential 1-4 family
Quanity, TDRs with Modifications that Subsequently Defaulted | Integer	2
Balance, TDRs with Modifications that Subsequently Defaulted | $	$ 38
Commercial real estate
Quanity, TDRs with Modifications that Subsequently Defaulted | Integer	1
Balance, TDRs with Modifications that Subsequently Defaulted | $
Commercial and industrial
Quanity, TDRs with Modifications that Subsequently Defaulted | Integer
Balance, TDRs with Modifications that Subsequently Defaulted | $
Total
Quanity, TDRs with Modifications that Subsequently Defaulted | Integer	3
Balance, TDRs with Modifications that Subsequently Defaulted | $	$ 38

LOANS - Components of impaired

LOANS - Components of impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans
Non-accrual loans, excluding troubled debt restructured loans	$ 10,093	$ 6,752
Non-accrual troubled debt restructured loans	3,044	628
Accruing troubled debt restructured loans	6,802	9,189
Total impaired loans	$ 19,939	$ 16,569
Commitments to lend additional amounts to impaired borrowers
Acquired Loans
Non-accrual loans, excluding troubled debt restructured loans	$ 3,038	$ 2,493
Non-accrual troubled debt restructured loans
Accruing troubled debt restructured loans	$ 742	$ 571
Total impaired loans	$ 3,780	$ 3,064
Commitments to lend additional amounts to impaired borrowers

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans - Beginning balance
Residential	$ 2,306	$ 1,938
Commercial	1,697	1,385
Land	164	226
Real estate	4,167	3,549
Commercial and industrial	583	561
Municipal	61	43
Consumer	117	105
Unallocated	409	425
Totals	5,337	4,683
Business Activities Loans - Provision
Residential	746	657
Commercial	(18)	355
Land	157	58
Real estate	885	1,070
Commercial and industrial	$ (295)	25
Municipal		18
Consumer	$ 71	16
Unallocated	73	(16)
Totals	734	1,113
Business Activities Loans - Charge-offs
Residential	(698)	(307)
Commercial	(214)	(84)
Land	(133)	(121)
Real estate	(1,045)	(512)
Commercial and industrial	$ (69)	$ (19)
Municipal
Consumer	$ (82)	$ (28)
Unallocated
Totals	$ (1,196)	$ (559)
Business Activities Loans - Recoveries
Residential	123	18
Commercial	$ 1	41
Land		1
Real estate	$ 124	60
Commercial and industrial	$ 464	$ 16
Municipal
Consumer	$ 18	$ 24
Unallocated
Totals	$ 606	$ 100
Business Activities Loans - Ending balance
Residential	2,477	2,306
Commercial	1,466	1,697
Land	188	164
Real estate	4,131	4,167
Commercial and industrial	683	583
Municipal	61	61
Consumer	124	117
Unallocated	482	409
Totals	$ 5,481	$ 5,337
Acquired Loans - Beginning balance
Residential
Commercial	$ 7
Land
Real estate	$ 7
Commercial and industrial	$ 14
Municipal
Consumer
Unallocated
Totals	$ 21
Acquired Loans - Provision
Residential	79
Commercial	$ 136	$ 7
Land
Real estate	$ 215	$ 7
Commercial and industrial	$ (24)	$ 14
Municipal
Consumer	$ (8)
Unallocated
Totals	$ 183	$ 21
Acquired Loans - Charge-offs
Residential
Commercial	$ (16)
Land
Real estate	$ (16)
Commercial and industrial
Municipal
Consumer
Unallocated
Totals	$ (16)
Acquired Loans - Recoveries
Residential
Commercial	$ 5
Land
Real estate	$ 5
Commercial and industrial	$ 34
Municipal
Consumer	$ 8
Unallocated
Totals	$ 47
Acquired Loans - Ending balance
Residential	79
Commercial	$ 132	$ 7
Land
Real estate	$ 211	$ 7
Commercial and industrial	$ 24	$ 14
Municipal
Consumer
Unallocated
Totals	$ 235	$ 21

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans - Collectively evaluated Loans
Performing loans	$ 527,905	$ 457,744
Potential problem loans	$ 1,223	$ 9,423
Impaired loans
Unallocated allowance
Totals	$ 529,128	$ 467,167
Business Activities Loans - Collectively evaluated Allowance
Performing loans	4,110	3,283
Potential problem loans	$ 44	$ 509
Impaired loans
Unallocated allowance	$ 482	$ 409
Totals	$ 4,636	$ 4,201
Business Activities Loans - Individually evaluated Loans
Performing loans
Potential problem loans		$ 11
Impaired loans	$ 19,938	$ 16,569
Unallocated allowance
Totals	$ 19,938	$ 16,580
Business Activities Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 845	$ 1,136
Unallocated allowance
Totals	$ 845	$ 1,136
Business Activities Loans - Total portfolio Loans
Performing loans	527,905	457,744
Potential problem loans	1,223	9,434
Impaired loans	$ 19,938	$ 16,569
Unallocated allowance
Totals	$ 549,066	$ 483,747
Business Activities Loans - Total portfolio Allowance
Performing loans	4,110	3,283
Potential problem loans	44	509
Impaired loans	845	1,136
Unallocated allowance	482	409
Totals	5,481	5,337
Acquired Loans - Collectively evaluated Loans
Performing loans	148,580	187,966
Potential problem loans	$ 2,119	$ 2,708
Impaired loans
Unallocated allowance
Totals	$ 150,699	$ 190,674
Acquired Loans - Collectively evaluated Allowance
Performing loans	46	$ 21
Potential problem loans	$ 2
Impaired loans
Unallocated allowance
Totals	$ 48	$ 21
Acquired Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	$ 3,780	$ 3,064
Unallocated allowance
Totals	$ 3,780	$ 3,064
Acquired Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 187
Unallocated allowance
Totals	$ 187
Acquired Loans - Total portfolio Loans
Performing loans	148,580	$ 187,966
Potential problem loans	2,119	2,708
Impaired loans	$ 3,780	$ 3,064
Unallocated allowance
Totals	$ 154,479	$ 193,738
Acquired Loans - Total portfolio Allowance
Performing loans	46	$ 21
Potential problem loans	2
Impaired loans	$ 187
Unallocated allowance
Totals	$ 235	$ 21

LOANS - Composition of loans 76

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Business Activities Loans - Collectively evaluated Loans
Residential 1-4 family	$ 253,156	$ 245,997
Residential 5+ multifamily	4,640	4,536
Construction of residential 1-4 family	7,998	2,004
Home equity lines of credit	34,298	34,231
Residential real estate	300,092	286,768
Commercial	125,173	93,784
Construction of commercial	6,403	18,474
Commercial real estate	131,576	112,258
Farm land	2,162	2,855
Vacant land	5,486	6,245
Real estate secured	439,316	408,126
Commercial and industrial	74,131	48,635
Municipal	9,566	6,083
Consumer	$ 6,115	$ 4,334
Unallocated allowance
Totals	$ 529,128	$ 467,178
Business Activities Loans - Collectively evaluated Allowance
Residential 1-4 family	1,415	1,316
Residential 5+ multifamily	33	66
Construction of residential 1-4 family	65	13
Home equity lines of credit	286	350
Residential real estate	1,799	1,745
Commercial	1,265	1,018
Construction of commercial	87	193
Commercial real estate	1,352	1,211
Farm land	23	59
Vacant land	122	67
Real estate secured	3,296	3,082
Commercial and industrial	673	532
Municipal	61	61
Consumer	124	$ 117
Unallocated allowance	482
Totals	4,636	$ 3,792
Business Activities Loans - Individually evaluated Loans
Residential 1-4 family	8,339	6,261
Residential 5+ multifamily	$ 1,771	$ 1,020
Construction of residential 1-4 family
Home equity lines of credit	$ 719	$ 396
Residential real estate	10,829	7,677
Commercial	4,273	4,714
Construction of commercial	122	128
Commercial real estate	4,395	4,842
Farm land	1,031	384
Vacant land	3,077	3,097
Real estate secured	19,332	16,000
Commercial and industrial	$ 526	$ 569
Municipal
Consumer	$ 80
Unallocated allowance
Totals	$ 19,938	$ 16,569
Business Activities Loans - Individually evaluated Allowance
Residential 1-4 family	$ 610	549
Residential 5+ multifamily		$ 3
Construction of residential 1-4 family
Home equity lines of credit	$ 68	$ 9
Residential real estate	678	561
Commercial	113	$ 486
Construction of commercial	1
Commercial real estate	114	$ 486
Farm land	14
Vacant land	29	$ 38
Real estate secured	835	1,085
Commercial and industrial	$ 10	$ 51
Municipal
Consumer
Unallocated allowance
Totals	$ 845	$ 1,136
Business Activities Loans - Total portfolio Loans
Residential 1-4 family	261,495	252,258
Residential 5+ multifamily	6,411	5,556
Construction of residential 1-4 family	7,998	2,004
Home equity lines of credit	35,017	34,627
Residential real estate	310,921	294,445
Commercial	129,446	98,498
Construction of commercial	6,525	18,602
Commercial real estate	135,971	117,100
Farm land	3,193	3,239
Vacant land	8,563	9,342
Real estate secured	458,648	424,126
Commercial and industrial	74,657	49,204
Municipal	9,566	6,083
Consumer	$ 6,195	$ 4,334
Unallocated allowance
Totals	$ 549,066	$ 483,747
Business Activities Loans - Total portfolio Allowance
Residential 1-4 family	2,025	1,865
Residential 5+ multifamily	33	69
Construction of residential 1-4 family	65	13
Home equity lines of credit	354	359
Residential real estate	2,477	2,306
Commercial	1,378	1,504
Construction of commercial	88	193
Commercial real estate	1,466	1,697
Farm land	37	59
Vacant land	151	105
Real estate secured	4,131	4,167
Commercial and industrial	683	583
Municipal	61	61
Consumer	124	117
Unallocated allowance	482	409
Totals	5,481	5,337
Acquired Loans - Collectively evaluated Loans
Residential 1-4 family	7,023	8,661
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,159	$ 17,396
Commercial	81,300	89,820
Construction of commercial	4,612	9,045
Commercial real estate	$ 85,912	$ 98,865
Farm land
Vacant land
Real estate secured	$ 99,071	$ 116,261
Commercial and industrial	$ 45,650	$ 66,874
Municipal
Consumer	$ 61	$ 103
Unallocated allowance
Totals	$ 144,782	$ 183,238
Acquired Loans - Collectively evaluated Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	$ 19
Construction of commercial	4	$ 7
Commercial real estate	$ 23	$ 7
Farm land
Vacant land
Real estate secured	$ 23	$ 7
Commercial and industrial	$ 24	$ 14
Municipal
Consumer
Unallocated allowance
Totals	$ 47	$ 21
Acquired Loans - Individually evaluated Loans
Residential 1-4 family	$ 776	$ 562
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 776	$ 562
Commercial	2,742	$ 2,502
Construction of commercial	262
Commercial real estate	$ 3,004	$ 2,502
Farm land
Vacant land
Real estate secured	$ 3,780	$ 3,064
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	$ 3,780	$ 3,064
Acquired Loans - Individually evaluated Allowance
Residential 1-4 family	$ 79
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 79
Commercial	$ 107
Construction of commercial
Commercial real estate	$ 107
Farm land
Vacant land
Real estate secured	$ 186
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	$ 186
Acquired Loans - ASC 310-30 Loans
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	$ 4,787	$ 5,577
Construction of commercial
Commercial real estate	$ 4,787	$ 5,577
Farm land
Vacant land
Real estate secured	$ 4,787	$ 5,577
Commercial and industrial	$ 1,114	$ 1,840
Municipal
Consumer	$ 16	$ 19
Unallocated allowance
Totals	$ 5,917	$ 7,436
Acquired Loans - ASC 310-30 loans Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of 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	7,799	$ 9,223
Residential 5+ multifamily	$ 6,136	$ 8,735
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,935	$ 17,958
Commercial	88,829	97,899
Construction of commercial	4,874	9,045
Commercial real estate	$ 93,703	$ 106,944
Farm land
Vacant land
Real estate secured	$ 107,638	$ 124,902
Commercial and industrial	$ 46,764	$ 68,714
Municipal
Consumer	$ 77	$ 122
Unallocated allowance
Totals	$ 154,479	$ 193,738
Acquired Loans - Total portfolio Allowance
Residential 1-4 family	$ 79
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 79
Commercial	128
Construction of commercial	4	$ 7
Commercial real estate	$ 132	$ 7
Farm land
Vacant land
Real estate secured	$ 211	$ 7
Commercial and industrial	$ 24	$ 14
Municipal
Consumer
Unallocated allowance
Totals	$ 235	$ 21

LOANS (Details Narrative)

LOANS (Details Narrative) - Loans Details - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commercial loans for other banks serviced by Company under loan participation agreements	$ 63,000	$ 48,000
Participation interests sold, gross outstanding balances	37,300
Participation interests sold, net balances retained	13,800
Purchase of share of participation loans, outstanding balances	9,400
Significant decrease in loans receivable by risk rating grade	(14,600)
Interest on non-accrual loans that would have been recorded as additional interest income had the loans been current	$ 1,089	$ 632	$ 487

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	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Residential mortgage loans serviced for others	$ 130,816	$ 138,106
Fair value of mortgage servicing rights	$ 1,315	$ 1,568

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage Servicing Rights
Balance, beginning of period	$ 694	$ 980	$ 1,075
Originated	148	17	294
Amortization (1)	(356)	(303)	(389)
Balance, end of period	$ 486	694	980
Valuation Allowance
Balance, beginning of period		(15)	(38)
(Increase) decrease in impairment reserve (1)	$ (3)	$ 15	23
Balance, end of period	(3)		(15)
Mortgage servicing rights, net	$ 483	$ 694	$ 965

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Securities available-for-sale (at fair value)	$ 67,750	$ 69,055
Loans receivable	153,269	157,581
Total pledged assets	$ 221,019	$ 226,636

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 60,400
Securities pledged to secure repurchase agreements	7,300
Securities pledged to secure FHLBB and FRB advances	$ 100

BANK PREMISES AND EQUIPMENT -

BANK PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - Components of premises and equipment - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Land	$ 2,593	$ 2,237
Buildings and improvements	11,514	11,070
Leasehold improvements	1,682	1,953
Capital lease	425	425
Furniture, fixtures, equipment and software	6,220	5,869
Construction in progress, including land acquisition and development	185	257
Total cost	22,619	21,811
Accumulated depreciation and amortization	(8,312)	(7,380)
Bank premises and equipment, net	$ 14,307	$ 14,431

GOODWILL AND INTANGIBLE ASSET83

GOODWILL AND INTANGIBLE ASSETS - Changes in carrying values of goodwill and intangible assets (Details) - Changes in carrying values of goodwill and intangible assets - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill (1)
Balance, beginning of period	$ 12,552	$ 9,829	$ 9,829
Additions		$ 2,723
Impairment
Balance, end of period	$ 12,552	$ 12,552	$ 9,829
Core Deposit Intangibles
Cost, beginning of period	$ 5,248	2,543	$ 2,543
Union Savings branch purchase		490
Riverside Bank merger		$ 2,215
Impairment
Cost, end of period	$ 5,248	$ 5,248	$ 2,543
Amortization, beginning of period	(2,258)	(1,967)	(1,745)
Amortization	(652)	(291)	(222)
Amortization, end of period	(2,910)	(2,258)	(1,967)
Core deposit intangibles, net	$ 2,338	$ 2,990	$ 576

GOODWILL AND INTANGIBLE ASSET84

GOODWILL AND INTANGIBLE ASSETS - Estimated annual amortization expense of core deposit intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CDI in demoninations of $250,000 or more
Core deposit intangibles amortization	$ 24	$ 78	$ 130	$ 180	$ 234	$ 288	$ 342	$ 461	$ 601

GOODWILL AND INTANGIBLE ASSET85

GOODWILL AND INTANGIBLE ASSETS (Details Narrative) - USD ($) $ in Thousands	1 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Acquisition of Sharon, Connecticut branch office of Union Savings Bank
Deposits assumed from acquisition		$ 18,200
Loans acquired from acquisition		$ 63
Goodwill realized
Core deposit intangible assigned to acquisition		$ 490
Acquisition of Riverside Bank
Deposits assumed from acquisition	$ 211,200
Loans acquired from acquisition	196,300
Goodwill realized	2,700
Core deposit intangible assigned to acquisition	$ 2,200

DEPOSITS - Scheduled maturities

DEPOSITS - Scheduled maturities of time certificates of deposit (Details) - CDI maturities $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 71,932
2,017	20,214
2,018	10,319
2,019	12,220
2,020	7,900
2,021	1,799
Total	$ 124,294

DEPOSITS - Total amount and sch

DEPOSITS - Total amount and scheduled maturities of time certificates of deposit (Details) - CDI in demoninations of $250,000 or more - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Within three months	$ 2,520	$ 2,406
Within three-to-six months	2,624	3,568
Within six-to-twelve months	2,929	2,900
Over one year	3,195	4,248
Total	$ 11,268	$ 13,122

SECURITIES SOLD UNDER AGREEME88

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE - Securities sold under repurchase agreements (Details) - Securities sold under repurchase agreements - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Repurchase agreements, ending balance	$ 3,914	$ 4,163
Repurchase agreements, average balance during period	4,111	4,598
Book value of collateral	7,287	10,034
Market value of collateral	$ 7,349	$ 10,729
Weighted average rate during period	0.17%	0.18%
Weighted average maturity	1 day	1 day

FEDERAL HOME LOAN BANK OF BOS89

FEDERAL HOME LOAN BANK OF BOSTON ADVANCES - Federal Home Loan Bank of Boston ("FHLBB") advances (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Total
2015 advances		$ 791
2016 advances	$ 21	15,022
2017 advances		6,000
2018 advances	$ 7,000	$ 7,000
2019 advances
2020 advances	$ 14,337
2021 advances	5,621
Total advances	$ 26,979	$ 28,813
Callable (1)
2015 advances
2016 advances		$ 15,000
2017 advances		$ 6,000
2018 advances
2019 advances
2020 advances
2021 advances
Total advances		$ 21,000
Rate (2)
2015 rate		3.88%
2016 rate	5.06%	4.05%
2017 rate		3.99%
2018 rate	3.69%	3.69%
2019 rate
2020 rate	2.08%
2021 rate	2.39%
Total weighted average rate	2.58%	3.95%

FEDERAL HOME LOAN BANK OF BOS90

FEDERAL HOME LOAN BANK OF BOSTON ADVANCES - Certain information concerning short-term FHLBB advances (Details) - Short-term FHLBB advances Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Highest month-end balance during period		$ 5,545
Ending balance
Average balance during period		$ 664
Weighted average rate during period	0.00%	0.29%

FEDERAL HOME LOAN BANK OF BOS91

FEDERAL HOME LOAN BANK OF BOSTON ADVANCES (Details Narrative) - FHLBB advances information - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
Additional available borrowing capacity in addition to outstanding FHLBB advances	$ 75,600
Unused FHLBB line of credit Company has access to	3,500
Modification extension of advances, amount		$ 21,000
Modification extension of advances, weight average term		39 months
Subordinated Debentures
Issuance of debt in private placement, aggregate principal amount	10,000
Portion to certain related parties	$ 500
Maturity date	Dec. 25, 2025
Annual interest rate	6.00%
Total subordinated debentures	$ 9,764
Remaining unamortized debt issuance costs	$ 236
Effective interest rate of subordinated debentures	6.24%

NET DEFERRED TAX ASSETS AND I92

NET DEFERRED TAX ASSETS AND INCOME TAXES - Components of income tax provision (Details) - Components of income tax provision - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal	$ 2,186	$ 1,057	$ 940
State	432	226	103
Current provision	2,618	1,283	1,043
Federal	896	(553)	$ 215
State	$ 49	$ (120)
Change in valuation allowance			$ (349)
Deferred expense (benefit)	$ 945	$ (673)	(134)
Income tax provision	$ 3,563	$ 610	$ 909

NET DEFERRED TAX ASSETS AND I93

NET DEFERRED TAX ASSETS AND INCOME TAXES - Reconciliation of expected federal statutory tax to income tax provision (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax at statutory federal tax rate	34.00%	34.00%	34.00%
State tax, net of federal tax benefit	2.63%	2.23%	1.35%
Tax exempt income and dividends received deduction	(7.38%)	(30.22%)	(18.18%)
Expiration of capital loss carry forward	0.00%	0.00%	7.00%
Merger/acquisition related costs	0.00%	7.77%	0.00%
Other	0.39%	5.71%	1.04%
Change in valuation allowance	0.00%	0.00%	(7.00%)
Effective income tax rates	29.64%	19.49%	18.21%

NET DEFERRED TAX ASSETS AND I94

NET DEFERRED TAX ASSETS AND INCOME TAXES - Components of net deferred tax assets (Details) - Components of net deferred tax assets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets
Allowance for loan losses	$ 1,877	$ 1,373
Interest on non-performing loans	343	236
Accrued deferred compensation	153	301
Post-retirement benefits	$ 17	17
Other real estate owned write-down		72
Restricted stock awards	$ 147	111
Mark-to-market purchase accounting adjustments	1,109	2,180
Write-down of securities	$ 1,497	1,497
Alternative minimum tax		540
Other	$ 22	10
Gross deferred tax assets	5,165	6,337
Deferred tax liabilities
Deferred loan costs, net	(436)	(538)
Goodwill and core deposit intangible asset	(853)	(821)
Accelerated depreciation	(1,130)	(1,209)
Mortgage servicing rights	(177)	(255)
Net unrealized holding gain on available-for-sale securities	(580)	(1,086)
Gross deferred tax liabilities	(3,176)	(3,909)
Net deferred tax asset	$ 1,989	$ 2,428

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 92,030	$ 89,783
Actual - Ratio	13.51%	14.27%
For Capital Adequacy - Amount	$ 54,509	$ 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	$ 76,120	$ 84,171
Actual - Ratio	11.17%	13.38%
For Capital Adequacy - Amount	$ 40,878	$ 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	$ 76,120
Actual - Ratio	11.17%
For Capital Adequacy - Amount	$ 30,659
For Capital Adequacy - Ratio	4.50%
To Be Well Capitalized - Amount
To Be Well Capitalized - Ratio
Tier 1 Capital (to average assets)
Actual - Amount	$ 76,120	$ 84,171
Actual - Ratio	8.56%	12.31%
For Capital Adequacy - Amount	$ 36,102	$ 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	$ 89,249	$ 80,492
Actual - Ratio	13.10%	12.75%
For Capital Adequacy - Amount	$ 54,504	$ 50,492
For Capital Adequacy - Ratio	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 68,131	$ 63,116
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	10.00%	10.00%
Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 83,340	$ 74,881
Actual - Ratio	12.23%	11.86%
For Capital Adequacy - Amount	$ 40,878	$ 25,246
For Capital Adequacy - Ratio	6.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 54,504	$ 37,869
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	8.00%	6.00%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 83,340
Actual - Ratio	12.23%
For Capital Adequacy - Amount	$ 30,659
For Capital Adequacy - Ratio	4.50%
To Be Well Capitalized - Amount	$ 44,285
To Be Well Capitalized - Ratio	6.50%
Tier 1 Capital (to average assets)
Actual - Amount	$ 83,340	$ 74,881
Actual - Ratio	9.37%	10.95%
For Capital Adequacy - Amount	$ 35,593	$ 27,345
For Capital Adequacy - Ratio	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 44,491	$ 34,181
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	5.00%	5.00%

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Aug. 31, 2012
Preferred stock redeemed	$ 16,000
Shareholders' Equity Details
Series B Preferred Stock issued to Treasury under SBLF program		$ 16,000

PENSIONS AND OTHER BENEFITS - T

PENSIONS AND OTHER BENEFITS - Transition from providing retirement benefits under defined pension plan to defined contribution 401(K) plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Change in projected benefit obligation
Service cost
Interest cost	$ 277	$ 255
Transition from defined pension plan to defined contribution 401(k) plan
Change in projected benefit obligation
Benefit obligation at beginning of year	5,250	6,039
Actuarial gain	$ (977)	$ (860)
Service cost
Interest cost	$ 277	$ 255
Curtailments and settlements
Benefits paid	$ (4,550)	$ (184)
Benefit obligation at end of year		5,250
Change in plan assets
Plan assets at estimated fair value at beginning of year	$ 6,868	6,019
Actual return on plan assets	$ (2,318)	$ 1,033
Contributions by employer
Curtailments and settlements
Benefits paid	$ (4,550)	$ (184)
Fair value of plan assets at end of year		6,868
Funded status and recognized asset included in other assets on the balance sheet		$ 1,618

PENSIONS AND OTHER BENEFITS - C

PENSIONS AND OTHER BENEFITS - Components of amounts recognized in accumulated other comprehensive income, before tax effect (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Components of amounts recognized in accumulated other comprehensive income, before tax effect
Unrecognized gain (loss)		$ 924

PENSIONS AND OTHER BENEFITS -99

PENSIONS AND OTHER BENEFITS - Components of net periodic cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Service cost
Interest cost on benefit obligation	$ 277	$ 255
Expected return on plan assets	(297)	$ (258)
Amortization of net gain (loss)	(1)
Net periodic benefit cost	$ (21)	$ (3)
Additional amount recognized due to settlement or curtailment
Total recognized in net periodic cost	$ (21)	$ (3)
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income):
Net actuarial loss (gain)	923	$ (1,635)
Amortization of net gain (loss)	1
Total recognized in other comprehensive loss (income)	924	$ (1,635)
Total recognized in net periodic cost and other comprehensive loss (income)	$ 903	$ (1,638)

PENSIONS AND OTHER BENEFITS (De

PENSIONS AND OTHER BENEFITS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Accumulated benefit obligation for plan			$ 5,250
Discount rate used in determining actuarial present value of projected benefit obligation			5.10%
Discount rate used to determine net periodic benefit cost		5.10%	4.35%
Expected return on plan assets		4.35%	4.35%
Excess assets distributed to 401k and ESOP for future allocations to employees		$ 1,018
401(k) Plan
401(k) Plan contribution expense	$ 679	331	$ 657
Employee Stock Ownership Plan (ESOP)
2013 benefit expenses	323	15	160
Other Retirement Plans
Total liability for endorsement split-dollar life insurance arrangements included in other liabilities	672	581
Expense under endorsement split-dollar life insurance arrangement	91	53	49
Former CEO supplemental post retirement payment liability	88	105
Former CEO supplemental post retirement payments related expense	7	8	9
Former Riverside CEO supplemental post retirement payment liability	629	668
Former Riverside CEO supplemental post retirement payments related expense	21	2
Expenses related to discretionary contribution to Executives' account	$ 39	0	$ 60
Recovery of prior expenses from contributions		$ 8

LONG TERM INCENTIVE PLAN (Detai

LONG TERM INCENTIVE PLAN (Details Narrative) - Long Term Incentive Plan - USD ($) $ in Thousands	Mar. 27, 2015	Jan. 03, 2015	Jan. 02, 2015	Dec. 05, 2014	Feb. 08, 2013	Jan. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2022
Annual stock retainer, individual director maximum						340	240	240	240
Total Phantom Stock Appreciation Units granted pursuant to the Plan			48,894
Total number of shares of Common Stock reserved and available for issuance										84,000
Total shares of Common Stock that may be issued pursuant to Awards in any one calendar year							30,000	30,000	30,000
Total number of shares that may be awarded as Incentive Stock Options										42,000
Total number of shares that may be issued as Directors Stock Retainer Awards										15,000
Shares issued under the Plan							2,660	2,160	1,330
Related compensation expense of Plan issuances							$ 81	$ 65	$ 34
Grants of Restricted Stock and Options
Shares of restricted stock granted pursuant to the Plan	1,000	3,000		6,000	19,600
Fair value of stock granted pursuant to the Plan	$ 29				$ 490
Deferred compensation expense							222	216	$ 142
Unrecognized compensation cost relating to awards							$ 110	$ 313
Stock award forfeitures							300	2,000	500

RELATED PARTY TRANSACTIONS - Ch

RELATED PARTY TRANSACTIONS - Changes in loans to executive officers, directors and their related associates (Details) - Related party transactions - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balance, beginning of period	$ 8,060	$ 1,279
Additional related party loans acquired pursuant to Riverside Bank merger		6,828
Advances	$ 5,045	271
Repayments	(4,985)	(318)
Balance, end of period	$ 8,120	$ 8,060

COMPREHENSIVE INCOME - Componen

COMPREHENSIVE INCOME - Components of comprehensive income (Details) - Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 8,457	$ 2,521	$ 4,083
Other comprehensive (loss) income
Net unrealized (losses) gains on securities available-for-sale	(1,297)	$ 2,534	$ (3,743)
Reclassification of net realized gains in net income	(192)
Unrealized (losses) gains on securities available-for-sale	(1,489)	$ 2,534	$ (3,743)
Income tax benefit (expense)	506	(862)	1,273
Unrealized (losses) gains on securities available-for-sale, net of tax	$ (983)	1,672	(2,470)
Pension plan (expense) income (see Note 14)		(924)	1,635
Income tax benefit (expense)		314	(556)
Pension plan (expense) income, net of tax		(610)	1,079
Other comprehensive (loss) income, net of tax	$ (983)	1,062	(1,391)
Comprehensive income	$ 7,474	$ 3,583	$ 2,692

COMPREHENSIVE INCOME - Compo104

COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Components of accumulated other comprehensive income - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Unrealized gains on securities available-for-sale, net of tax	$ 1,125	$ 2,108
Accumulated other comprehensive income	$ 1,125	$ 2,108

COMMITMENTS AND CONTINGENT L105

COMMITMENTS AND CONTINGENT LIABILITIES - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
Future minimum lease payments
2,016	$ 207
2,017	166
2,018	93
2,019	79
2,020	82
2,021	28
2,022	28
2,023	16
Total	$ 699

COMMITMENTS AND CONTINGENT L106

COMMITMENTS AND CONTINGENT LIABILITIES - Future minimum lease payments under capital lease with present value of net minimum lease payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
Future minimum lease payments
2,016	$ 73
2,017	73
2,018	73
2,019	84
2,020	84
Thereafter	693
Total minimum lease payments	1,080
Less amount representing interest	658
Total minimum lease payments, net	$ 422

COMMITMENTS AND CONTINGENT L107

COMMITMENTS AND CONTINGENT LIABILITIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Aug. 08, 2007
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 295	$ 147	$ 85
Loan to Trust, secured by commercial mortgage in favor to Bank on Westport property				$ 3,387

FINANCIAL INSTRUMENTS - Financi

FINANCIAL INSTRUMENTS - Financial instrument liabilities with off-balance sheet credit risk (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Standby letters of credit	$ 1,401	$ 3,422
Financial instrument liabilities with off-balance sheet credit risk
Residential	6,620	3,030
Home equity lines of credit	25,912	25,882
Commercial	13,922	16,751
Land	218	5
Real estate secured	46,672	45,668
Commercial and industrial	67,725	$ 57,905
Municipal	790
Consumer	1,507	$ 1,537
Unadvanced portions of loans	116,694	105,110
Commitments to originate loans	37,688	20,953
Standby letters of credit	1,401	3,422
Total	$ 155,783	$ 129,485

FINANCIAL INSTRUMENTS (Details

FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments, All Other Investments [Abstract]
Maximum potential amount of Bank's obligation for financial, commercial and standby letters of credit	$ 1,401	$ 3,422
Allowance for off-balance sheet commitments	$ 93	$ 115

FAIR VALUE MEASUREMENTS - Asset

FAIR VALUE MEASUREMENTS - Assets measured at fair value (Details) - USD ($) $ in Thousands	Dec. 31, 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	$ 246	$ 327
Securities available-for-sale	$ 246	$ 246
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Mortgage servicing rights
Other real estate owned
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
U.S. Treasury notes	$ 2,541	$ 2,806
U.S. Government agency notes	498	5,874
Municipal bonds	30,385	40,352
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	32,202	27,709
Collateralized mortgage obligations, U.S. Government agencies	2,014	2,679
Collateralized mortgage obligations, Non-agency	4,948	6,596
SBA bonds	3,096	4,465
CRA mutual funds	$ 764	$ 504
Preferred Stock
Securities available-for-sale	$ 76,448	$ 76,448
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Mortgage servicing rights	$ 1,315	$ 1,568
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	$ 15,211	$ 10,463
Mortgage servicing rights
Other real estate owned		$ 1,002
Assets at fair value
Assets at fair value on a recurring basis
U.S. Treasury notes	$ 2,541	2,806
U.S. Government agency notes	498	5,874
Municipal bonds	30,385	40,352
Mortgage backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	32,202	27,709
Collateralized mortgage obligations, U.S. Government agencies	2,014	2,679
Collateralized mortgage obligations, Non-agency	4,948	6,596
SBA bonds	3,096	4,465
CRA mutual funds	764	504
Preferred Stock	246	327
Securities available-for-sale	76,694	91,312
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	15,211	10,463
Mortgage servicing rights	$ 1,315	1,568
Other real estate owned		$ 1,002

FAIR VALUE MEASUREMENTS - Carry

FAIR VALUE MEASUREMENTS - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Carrying value
Financial Assets
Cash and cash equivalents	$ 62,118	$ 36,105
Securities available-for-sale	76,694	91,312
Federal Home Loan Bank stock	3,176	3,515
Loans held-for-sale	763	568
Loans receivable, net	699,018	673,330
Accrued interest receivable	2,307	2,334
Cash surrender value of life insurance	13,685	13,314
Financial Liabilities
Demand (non-interest-bearing)	201,340	161,386
Demand (interest-bearing)	125,465	117,169
Money market	183,783	174,274
Savings and other	119,651	121,387
Certificates of deposit	124,294	141,210
Deposits	754,533	715,426
Repurchase agreements	3,914	4,163
FHLBB advances	26,979	28,813
Subordinated debt	9,764
Note payable	376
Capital lease liability	422	424
Accrued interest payable	150	166
Estimated fair value
Financial Assets
Cash and cash equivalents	62,118	36,105
Securities available-for-sale	76,694	91,312
Federal Home Loan Bank stock	3,176	3,515
Loans held-for-sale	778	572
Loans receivable, net	707,154	683,845
Accrued interest receivable	2,307	2,334
Cash surrender value of life insurance	13,685	13,314
Financial Liabilities
Demand (non-interest-bearing)	201,340	161,386
Demand (interest-bearing)	125,465	117,169
Money market	183,783	174,274
Savings and other	119,651	121,387
Certificates of deposit	125,437	142,261
Deposits	755,676	716,477
Repurchase agreements	3,914	4,163
FHLBB advances	28,559	30,626
Subordinated debt	9,764
Note payable	405
Capital lease liability	870	929
Accrued interest payable	150	166
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	62,118	36,105
Securities available-for-sale	$ 246	$ 246
Federal Home Loan Bank stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance	$ 13,685	$ 13,314
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Subordinated debt
Note payable
Capital lease liability
Accrued interest payable
Fair Value Measurements Using - Level 2
Financial Assets
Cash and cash equivalents
Securities available-for-sale	$ 76,448	$ 76,448
Federal Home Loan Bank stock	$ 3,176	$ 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
Subordinated debt
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	$ 788	$ 572
Loans receivable, net	707,154	683,845
Accrued interest receivable	$ 2,307	$ 2,334
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)	$ 201,340	$ 161,386
Demand (interest-bearing)	125,465	117,169
Money market	183,783	174,274
Savings and other	119,651	121,387
Certificates of deposit	125,437	142,261
Deposits	755,676	716,477
Repurchase agreements	3,914	4,163
FHLBB advances	28,559	30,626
Subordinated debt	9,764
Note payable	405
Capital lease liability	870	929
Accrued interest payable	$ 150	$ 166

SALISBURY BANCORP (PARENT ON112

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated balance sheets of Salisbury Bancorp, Inc. (Details) - Salisbury Bancorp, Inc. (Parent Only) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 2,612	$ 9,436
Investment in bank subsidiary	97,794	92,531
Other assets	5	6
Total Assets	100,411	$ 101,973
Liabilities and Shareholders' Equity
Subordinated debt	9,764
Other liabilities	73	$ 152
Shareholders' equity	90,574	101,821
Total Liabilities and Shareholders' Equity	$ 100,411	$ 101,973

SALISBURY BANCORP (PARENT ON113

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated statements of income of Salisbury Bancorp, Inc. (Details) - Salisbury Bancorp, Inc. (Parent Only) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Dividends from subsidiary	$ 2,743	$ 2,143	$ 2,128
Interest income	19	$ 21	$ 27
Interest expense	35
Expenses	511	$ 986	$ 394
Income before taxes and equity in undistributed net income of subsidiary	2,216	1,178	$ 1,761
Income tax benefit	192	91
Income before equity in undistributed net income of subsidiary	2,408	1,269	$ 1,761
Equity in undistributed net income of subsidiary	6,049	1,252	2,322
Net income	$ 8,457	$ 2,521	$ 4,083

SALISBURY BANCORP (PARENT ON114

SALISBURY BANCORP (PARENT ONLY) CONDENSED FINANCIAL INFORMATION - Unconsolidated statements of cash flows of Salisbury Bancorp, Inc. (Details) - Salisbury Bancorp, Inc. (Parent Only) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 8,457	$ 2,521	$ 4,083
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(6,049)	(1,252)	(2,322)
Other	(275)	85	24
Net cash provided by operating activities	$ 2,133	1,354	$ 1,785
Investing Activities
Investment in bank		(27,251)
Maturities (purchases) of interest-bearing time deposits of other banks		$ 738	$ (738)
Maturities of securities available-for-sale
Net cash utilized by investing activities		$ (26,513)	$ (738)
Financing Activities
Common stock dividends paid	$ (3,054)	(1,918)	(1,915)
Preferred stock dividends paid	(158)	$ (166)	$ (161)
Proceeds from issuance of subordinated debt, net of issue cost	9,764
Payment to repurchase preferred stock	(16,000)
Proceeds from issuance of Common Stock	$ 491	$ 126	$ 34
Issuance of Salisbury stock to Riverside shareholders		27,251
Net cash (utilized) provided by financing activities	$ (8,957)	25,293	$ (2,042)
(Decrease) increase in cash and cash equivalents	(6,824)	134	(995)
Cash and cash equivalents, beginning of year	9,436	9,302	10,297
Cash and cash equivalents, end of year	$ 2,612	$ 9,436	$ 9,302

EARNINGS PER SHARE - Calculatio

EARNINGS PER SHARE - Calculation of earnings per share (Details) - Calculation of earnings per share - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 8,457	$ 2,521	$ 4,083
Less: Preferred stock dividends declared	(158)	(166)	(161)
Net income available to common shareholders	8,299	2,355	3,922
Less: Undistributed earnings allocated to participating securities	(72)	(27)	(39)
Net income allocated to common stock	$ 8,227	$ 2,328	$ 3,883
Weighted average common shares issued	2,730	1,785	1,710
Less: Unvested restricted stock awards	$ (24)	$ (21)	$ (19)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,706	1,764	1,691
Add: Dilutive effect of unvested restricted stock awards	$ 17	$ 1
Weighted average common shares outstanding used to calculate diluted earnings per common share	2,723	1,765	1,691
Earnings per common share (basic)	$ 3.04	$ 1.32	$ 2.30
Earnings per common share (diluted)	$ 3.02	$ 1.32	$ 2.30

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Events $ / shares in Units, $ in Thousands	Jan. 29, 2016USD ($)$ / sharesshares
Quarterly cash dividend declared and paid | $ / shares	$ 0.28
Shares of restricted stock granted pursuant to the Plan	15,800
Fair value of stock granted pursuant to the Plan | $	$ 466
Total Phantom Stock Appreciation Units granted pursuant to the Plan	47,470

SELECTED QUARTERLY CONSOLIDA117

SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA - Selected quarterly consolidated financial data (Details) - Selected quarterly consolidated financial data - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Statement of Income
Interest and dividend income	$ 8,705	$ 8,650	$ 8,545	$ 8,671	$ 6,416	$ 5,444	$ 5,552	$ 5,443
Interest expense	775	753	753	745	699	690	647	668
Net interest and dividend income	7,930	7,897	7,792	7,926	5,717	4,754	4,905	4,775
(Benefit) provision for loan losses	$ 266	655	196	(200)	165	318	314	337
Gains on securities, net		6	11	175
Trust and Wealth Advisory	$ 755	798	890	822	786	791	939	779
Service charges and fees	763	798	778	731	666	$ 639	626	542
Gains on sales of mortgage loans, net	47	47	87	93	21		32	11
Mortgage servicing, net	16	5	20	(40)	15	$ 41	11	27
Other	166	115	114	115	91	82	74	79
Non-interest income	1,747	1,769	1,900	1,896	1,579	1,553	1,682	1,438
Non-interest expense	6,344	6,202	6,539	6,835	6,852	5,108	5,068	5,110
Income before income taxes	3,067	2,809	2,957	3,187	279	881	1,205	766
Income tax provision	901	824	885	953	43	113	239	215
Net income	2,166	1,985	2,072	2,234	236	768	966	551
Net income available to common shareholders	2,128	1,945	2,032	2,194	196	728	926	505
Financial Condition
Total assets	891,192	904,233	860,794	865,037	855,427	638,089	621,476	589,771
Loans, net	699,018	687,719	677,726	676,734	673,330	461,913	456,627	446,518
Allowance for loan losses	5,716	5,659	5,059	5,182	5,358	5,384	5,102	4,894
Securities	79,870	83,886	92,932	84,694	94,827	88,960	92,884	98,015
Deposits	754,533	761,479	720,734	724,910	715,426	522,294	507,361	477,512
Repurchase agreements	3,914	4,210	2,771	3,278	4,163	6,500	4,344	2,643
FHLBB advances	26,979	26,928	28,033	28,403	28,813	29,218	29,619	30,017
Shareholders' equity	90,574	105,450	104,104	103,211	101,821	75,516	75,000	74,001
Non-performing assets	$ 16,264	$ 16,602	$ 14,995	$ 14,875	$ 10,892	$ 8,945	$ 8,757	$ 8,526
Per Common Share Data
Earnings, basic and diluted					$ .10	$ .43	$ .54	$ .29
Earnings, basic	$ .78	$ .71	$ .74	$ .81
Earnings, diluted	.77	.71	.74	.80
Cash dividends declared	0.28	0.28	0.28	.28	0.28	0.28	0.28	0.28
Cash dividends paid	0.28	0.28	0.28	0.28	0.28	0.28	0.28	0.28
Book value	33.13	32.72	32.26	31.96	31.54	34.74	34.44	33.90
Market price: High	33.70	31.74	32.30	30.39	28.39	30.70	30.98	27.58
Market price: Low	$ 28.80	$ 28.38	$ 28.80	$ 26.08	$ 25.88	$ 26.95	$ 27.13	$ 25.90
Statistical Data
Net interest margin (fully tax equivalent)	3.88%	3.91%	4.01%	4.11%	3.68%	3.39%	3.74%	3.72%
Efficiency ratio (fully tax equivalent)	63.64%	60.40%	62.91%	65.45%	77.80%	75.92%	72.35%	77.11%
Return on average assets	0.94%	0.87%	0.94%	1.03%	0.11%	0.45%	0.62%	0.35%
Return on average shareholders' equity	9.34%	8.64%	9.26%	10.22%	1.18%	4.85%	6.32%	3.53%
Weighted average equivalent shares outstanding, diluted					1,981	1,693	1,691	1,691
Weighted average common shares outstanding, basic	2,710	2,708	2,706	2,699
Weighted average common shares outstanding, diluted	2,727	2,724	2,724	2,716