Salisbury Bancorp (SAL) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 16, 2016
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	1,060,219
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,753,426
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks		$ 9,309	$ 14,891
Interest bearing demand deposits with other banks		22,194	47,227
Total cash and cash equivalents		31,503	62,118
Securities
Available-for-sale at fair value		79,034	76,694
Federal Home Loan Bank of Boston stock at cost		3,117	3,176
Loans held-for-sale		183	763
Loans receivable, net (allowance for loan losses: $5,877 and $5,716)		728,845	699,018
Bank premises and equipment, net		14,632	14,307
Goodwill		12,552	12,552
Intangible assets (net of accumulated amortization: $3,064 and $2,909)		2,183	2,338
Accrued interest receivable		2,451	2,307
Cash surrender value of life insurance policies		13,775	13,685
Deferred taxes		2,013	1,989
Other assets		1,516	2,245
Total Assets		891,804	891,192
Deposits
Demand (non-interest bearing)		192,184	201,340
Demand (interest bearing)		122,814	125,465
Money market		192,357	183,783
Savings and other		126,214	119,651
Certificates of deposit		122,089	124,294
Total deposits		755,658	754,533
Repurchase agreements		2,620	3,914
Federal Home Loan Bank of Boston advances		27,031	26,979
Subordinated debt	[1]	9,770	9,764
Note payable		365	376
Capital lease liability		420	422
Accrued interest and other liabilities		4,538	4,630
Total Liabilities		800,402	800,618
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,753,426 and 2,733,576		275	273
Paid-in capital		41,915	41,364
Retained earnings		48,662	47,922
Unearned compensation - restricted stock awards		(529)	(110)
Accumulated other comprehensive income		1,079	1,125
Total Shareholders' Equity		91,402	90,574
Total Liabilities and Shareholders' Equity		$ 891,804	$ 891,192
[1]	(1) Net of issuance costs, which are capitalized and amortized as a component of interest expense over a period of 10 years.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Allowance for loan losses, loans receivable	$ 5,877	$ 5,716
Accumulated amortization, intangible assets	$ 3,064	$ 2,909
Shareholders' Equity
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,753,426	2,733,576

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and dividend income
Interest and fees on loans	$ 7,925	$ 7,922
Interest on debt securities
Taxable	293	326
Tax exempt	286	390
Other interest and dividends	74	33
Total interest and dividend income	8,578	8,671
Interest expense
Deposits	508	444
Repurchase agreements	1	1
Capital lease	18	$ 18
Note payable	5
Subordinated debt	156
Federal Home Loan Bank of Boston advances	231	$ 282
Total interest expense	919	745
Net interest and dividend income	7,659	7,926
Provision (benefit) for loan losses	463	(200)
Net interest and dividend income after provision (benefit) for loan losses	7,196	8,126
Non-interest income
Trust and wealth advisory	784	822
Service charges and fees	730	731
Gains on sales of mortgage loans, net	39	94
Mortgage servicing, net	12	(40)
Gains on sales and calls of available-for-sale securities, net	2	175
Other	117	114
Total non-interest income	1,684	1,896
Non-interest expense
Salaries	2,574	2,540
Employee benefits	1,088	1,005
Premises and equipment	895	908
Data processing	447	474
Professional fees	380	650
Collections and OREO	157	244
FDIC insurance	134	198
Marketing and community support	200	110
Amortization of core deposit intangibles	155	169
Other	810	537
Total non-interest expense	6,840	6,835
Income before income taxes	2,040	3,187
Income tax provision	528	953
Net income	1,512	2,234
Net income available to common shareholders	$ 1,512	$ 2,194
Basic earnings per common share	$ 0.55	$ 0.81
Weighted average common shares outstanding, to calculate basic earnings per share	2,723	2,699
Diluted earnings per common share	$ 0.55	$ 0.80
Weighted average common shares outstanding, to calculate diluted earnings per share	2,741	2,716
Common dividends per share	$ 0.28	$ 0.28

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Net income		$ 1,512	$ 2,234
Other comprehensive loss
Net unrealized losses on securities available-for-sale		(68)	(193)
Reclassification of net realized gains in net income	[1]	(2)	(175)
Unrealized losses on securities available-for-sale		(70)	(368)
Income tax benefit		24	128
Unrealized losses on securities available-for-sale, net of tax		(46)	(240)
Comprehensive income		$ 1,466	$ 1,994
[1]	(1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of other comprehensive loss and have affected certain lines in the consolidated statements of income as follows: The pre-tax amount is reflected as gains on sales and calls of available-for-sale securities, net, the tax effect is included in the income tax provision and the after tax amount is included in net income.

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Preferred stock	Paid-in capital	Retained earnings	Unearned compensation - restricted stock awards	Accumulated other comprehensive income	Total shareholders' equity
Balance - Beginning, amount at Dec. 31, 2014	$ 272	$ 16,000	$ 41,077	$ 42,677	$ (313)	$ 2,108	$ 101,821
Balance - Beginning, shares at Dec. 31, 2014	2,720,766
Net income				$ 2,234			2,234
Other comprehensive loss, net of tax						$ (240)	(240)
Common stock dividends declared				$ (761)			(761)
Preferred stock dividends declared				$ (40)			(40)
Stock options exercised, amount	$ 1		$ 125				126
Stock options exercised, shares	6,750
Issuance of common stock for executives, amount			$ 29				29
Issuance of common stock for executives, shares	1,000
Stock based compensation - restricted stock awards					$ 42		42
Balance - Ending, amount at Mar. 31, 2015	$ 273	$ 16,000	$ 41,231	$ 44,110	(271)	$ 1,868	103,211
Balance - Ending, shares at Mar. 31, 2015	2,728,516
Balance - Beginning, amount at Dec. 31, 2015	$ 273		$ 41,364	47,922	$ (110)	$ 1,125	90,574
Balance - Beginning, shares at Dec. 31, 2015	2,733,576
Net income				$ 1,512			1,512
Other comprehensive loss, net of tax						$ (46)	(46)
Common stock dividends declared				$ (772)			(772)
Stock options exercised, amount			$ 87				87
Stock options exercised, shares	4,050
Issuance of restricted stock awards, amount	$ 2		$ 464				466
Issuance of restricted stock awards, shares	15,800
Stock based compensation - restricted stock awards					$ (419)		(419)
Balance - Ending, amount at Mar. 31, 2016	$ 275		$ 41,915	$ 48,662	$ (529)	$ 1,079	$ 91,402
Balance - Ending, shares at Mar. 31, 2016	2,753,426

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Activities
Net income	$ 1,512	$ 2,234
(Accretion), amortization and depreciation:
Securities	60	38
Bank premises and equipment	306	311
Core deposit intangible	155	169
Mortgage servicing rights	51	119
Fair value adjustment on loans	(586)	(650)
Fair value adjustment on deposits	(38)	$ (135)
Debt issuance costs	6
(Gains) and losses, including write-downs
Gains on sales and calls of securities, available-for-sale, net	(2)	$ (175)
Gains on sales of loans, excluding capitalized servicing rights	$ (19)	(32)
Write-downs of other real estate owned		127
Loss on sale/disposals of premises and equipment	$ 13	45
Provision (benefit) for loan losses	463	(200)
Proceeds from loans sold	1,787	2,134
Loans originated for sale	(1,188)	(1,862)
Increase in deferred loan origination fees and costs, net	(44)	(3)
Mortgage servicing rights originated	(20)	(62)
Increase in mortgage servicing rights impairment reserve	20	10
Increase in interest receivable	$ (144)	(22)
Deferred tax benefit		(13)
Decrease (increase) in prepaid expenses	$ 47	(126)
Increase in cash surrender value of life insurance policies	(90)	$ (92)
Decrease in income tax receivable	$ 506
Increase in income tax payable		$ 55
Decrease in other assets	$ 125	64
Decrease in accrued expenses	(113)	$ (184)
Decrease in interest payable	(30)
Increase in other liabilities	51	$ 161
Stock based compensation - restricted stock awards	47	71
Net cash provided by operating activities	2,875	$ 1,982
Investing Activities
Redemption of Federal Home Loan Bank stock	59
Purchases of securities available-for-sale	$ (10,072)	$ (3)
Proceeds from sales of securities available-for-sale		3,861
Proceeds from calls of securities available-for-sale	$ 5,351	3,740
Proceeds from maturities of securities available-for-sale	2,253	2,304
Loan originations and principle collections, net	(29,674)	(3,011)
Recoveries of loans previously charged off	14	460
Capital expenditures	(644)	(186)
Net cash (utilized) provided by investing activities	(32,713)	7,165
Financing Activities
Increase in deposit transaction accounts, net	3,330	9,556
(Decrease) increase in time deposits, net	(2,167)	63
Decrease in securities sold under agreements to repurchase, net	(1,294)	(885)
Principal payments on Federal Home Loan Bank of Boston advances	(6)	$ (410)
Modification fees on Federal Home Loan Bank of Boston advances	58
Principal payments on note payable	(11)
Decrease in capital lease obligation	(2)	$ (1)
Stock options exercised	87	126
Common stock dividends paid	$ (772)	(761)
Series B preferred stock dividends paid		(40)
Net cash (utilized) provided by financing activities	$ (777)	7,648
Net (decrease) increase in cash and cash equivalents	(30,615)	16,795
Cash and cash equivalents, beginning of period	62,118	36,105
Cash and cash equivalents, end of period	31,503	52,900
Cash paid during year
Interest	760	745
Income taxes	$ 258	$ 911

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position of Salisbury and the statements of income, comprehensive income, shareholders’ equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, expected cash flows from loans acquired in a business combination, other-than-temporary impairment of securities and impairment of goodwill and intangibles. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2015 Annual Report on Form 10-K for the year ended December 31, 2015. The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. Impact of New Accounting Pronouncements Issued In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). . "Improvements to Employee Share-Based Payment Accounting.”

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized Gross un- Gross un- Fair value March 31, 2016 Available-for-sale U.S. Treasury notes $ 7,497 $ 33 $ (1 ) $ 7,529 Municipal bonds 24,893 495 — 25,388 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,328 497 (23 ) 35,802 Collateralized mortgage obligations: U.S. Government agencies 1,850 12 — 1,862 Non-agency 4,198 382 (12 ) 4,568 SBA bonds 2,843 28 — 2,871 CRA mutual funds 770 9 — 779 Preferred stock 20 215 — 235 Total securities available-for-sale $ 77,399 $ 1,671 $ (36 ) $ 79,034 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,117 $ — $ — $ 3,117 (in thousands) Amortized Gross un- Gross un- 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 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury did not sell any available-for-sale securities during the three month period ended March 31, 2016, and sold $3.9 million in available-for-sale securities during the three month period ended March 31, 2015, for a gain of $165,000. The after tax gain totaled $150,000. The following table summarizes, for all securities in an unrealized loss position, including debt securities for which a portion of other-than-temporary impairment (OTTI) has been recognized in other comprehensive loss, the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: (in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses March 31, 2016 Available-for-sale Municipal bonds $ 4,997 $ (1 ) $ — $ — $ 4,997 $ (1 ) Mortgage-backed securities 7,096 (18 ) 177 (5 ) 7,273 (23 ) Collateralized mortgage obligations: Non-agency 343 (2 ) 211 (6 ) 554 (8 ) Total temporarily impaired securities 12,436 (21 ) 388 (11 ) 12,824 (32 ) Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 217 (4 ) — — 217 (4 ) Total temporarily impaired and other-than-temporarily impaired securities $ 12,653 $ (25 ) $ 388 $ (11 ) $ 13,041 $ (36 ) 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 March 31, 2016. 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 these securities to be OTTI at March 31, 2016. Municipal bonds: Contractual cash flows are performing as expected. Salisbury’s portfolio is mostly comprised of tax-exempt general obligation bonds or public-purpose revenue bonds for schools, municipal offices, sewer infrastructure and fire houses, for small towns and municipalities across the United States. In the wake of the financial crisis, most monoline bond insurers had their ratings downgraded or withdrawn because of excessive exposure to insurance for collateralized debt obligations. Where appropriate, Salisbury performs credit underwriting reviews of unrated issuers, including some that have had their ratings withdrawn and are insured by insurers that have had their ratings withdrawn, to assess default risk. For all completed reviews, pass credit risk ratings have been assigned. Management expects to recover the entire amortized cost basis of these securities. It is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be at maturity, and Salisbury does not intend to sell these securities. Therefore, management does not consider these securities to be OTTI at March 31, 2016. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at March 31, 2016, 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 March 31, 2016. 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 bases. The following table presents activity related to credit losses recognized into earnings on the non-agency CMOs held by Salisbury for which a portion of an OTTI charge was recognized in accumulated other comprehensive income: Three months ended March 31 (in thousands) 2016 2015 Balance, beginning of period $ 1,128 $ 1,128 Credit component on debt securities in which OTTI was not previously recognized — — Balance, end of period $ 1,128 $ 1,128 The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of March 31, 2016. 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	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: March 31, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 274,881 $ 7,443 $ 282,324 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 8,095 6,050 14,145 6,411 6,136 12,547 Construction of residential 1-4 family 9,332 — 9,332 7,998 — 7,998 Home equity lines of credit 34,329 — 34,329 35,017 — 35,017 Residential real estate 326,637 13,493 340,130 310,921 13,935 324,856 Commercial 136,315 86,500 222,815 129,446 88,829 218,275 Construction of commercial 10,145 4,903 15,048 6,525 4,874 11,399 Commercial real estate 146,460 91,403 237,863 135,971 93,703 229,674 Farm land 4,007 — 4,007 3,193 — 3,193 Vacant land 8,198 — 8,198 8,563 — 8,563 Real estate secured 485,302 104,896 590,198 458,648 107,638 566,286 Commercial and industrial 92,528 35,517 128,045 74,657 46,764 121,421 Municipal 9,364 — 9,364 9,566 — 9,566 Consumer 5,806 76 5,882 6,195 77 6,272 Loans receivable, gross 593,000 140,489 733,489 549,066 154,479 703,545 Deferred loan origination fees and costs, net 1,233 — 1,233 1,189 — 1,189 Allowance for loan losses (5,573 ) (304 ) (5,877 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 588,660 $ 140,185 $ 728,845 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ 183 $ — $ 183 $ 763 $ — $ 763 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. Loan Credit Quality The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2016 Residential 1-4 family $ 260,994 $ 6,386 $ 7,411 $ 90 $ — $ 274,881 Residential 5+ multifamily 6,075 1,931 89 — — 8,095 Construction of residential 1-4 family 8,445 887 — — — 9,332 Home equity lines of credit 32,954 510 865 — — 34,329 Residential real estate 308,468 9,714 8,365 90 — 326,637 Commercial 125,703 5,269 5,343 — — 136,315 Construction of commercial 10,025 — 120 — — 10,145 Commercial real estate 135,728 5,269 5,463 — — 146,460 Farm land 2,983 — 1,024 — — 4,007 Vacant land 5,207 67 2,924 — — 8,198 Real estate secured 452,386 15,050 17,776 90 — 485,302 Commercial and industrial 88,953 2,995 578 2 — 92,528 Municipal 9,364 — — — — 9,364 Consumer 5,788 17 1 — — 5,806 Loans receivable, gross $ 556,491 $ 18,062 $ 18,355 $ 92 $ — $ 593,000 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2016 Residential 1-4 family $ 6,663 $ — $ 780 $ — $ — $ 7,443 Residential 5+ multifamily 5,927 — 123 — — 6,050 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,590 — 903 — — 13,493 Commercial 77,995 3,067 5,438 — — 86,500 Construction of commercial 4,645 — 258 — — 4,903 Commercial real estate 82,640 3,067 5,696 — — 91,403 Farm land — — — — — — Vacant land — — — — — — Real estate secured 95,230 3,067 6,599 — — 104,896 Commercial and industrial 34,007 917 509 84 — 35,517 Municipal — — — — — — Consumer 71 5 — — — 76 Loans receivable, gross $ 129,308 $ 3,989 $ 7,108 $ 84 $ — $ 140,489 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 The composition of loans receivable by delinquency status is as follows: Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over March 31, 2016 Residential 1-4 family $ 267,101 $ 1,334 $ 3,509 $ 75 $ — $ 2,862 $ 6,446 $ — $ 5,834 Residential 5+ multifamily 7,946 60 — — — 89 89 — — Construction of residential 1-4 family 9,160 172 — — — — — — — Home equity lines of credit 33,395 434 218 43 150 89 500 — 701 Residential real estate 317,602 2,000 3,727 118 150 3,040 7,035 — 6,535 Commercial 133,401 156 833 668 342 915 2,758 — 2,557 Construction of commercial 10,145 — — — — — — — — Commercial real estate 143,546 156 833 668 342 915 2,758 — 2,557 Farm land 2,983 301 — — — 723 723 — 1,024 Vacant land 5,371 — 4 — — 2,823 2,827 — 2,854 Real estate secured 469,502 2,457 4,564 786 492 7,501 13,343 — 12,970 Commercial and industrial 90,851 398 973 288 — 18 1,279 — 447 Municipal 9,364 — — — — — — — — Consumer 5,763 24 15 4 — — 19 — — Loans receivable, gross $ 575,480 $ 2,879 $ 5,552 $ 1,078 $ 492 $ 7,519 $ 14,641 $ — $ 13,417 Acquired Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over March 31, 2016 Residential 1-4 family $ 6,664 $ — $ — $ — $ — $ 779 $ 779 $ — $ 779 Residential 5+ multifamily 5,168 759 — — 123 — 123 — 123 Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 11,832 759 — — 123 779 902 — 902 Commercial 80,481 2,635 1,605 — — 1,779 3,384 — 1,839 Construction of commercial 4,645 — — — — 258 258 — 258 Commercial real estate 85,126 2,635 1,605 — — 2,037 3,642 — 2,097 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 96,958 3,394 1,605 — 123 2,816 4,544 — 2,999 Commercial and industrial 33,725 844 123 825 — — 948 — 414 Municipal — — — — — — — — — Consumer 72 4 — — — — — — — Loans receivable, gross $ 130,755 $ 4,242 $ 1,728 $ 825 $ 123 $ 2,816 $ 5,492 $ — $ 3,413 The composition of loans receivable by delinquency status is as follows: Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 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 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential — — — — — — — — — 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 Interest on non-accrual loans that would have been recorded as additional interest income for the quarters ended March 31, 2016 and 2015 had the loans been current in accordance with their original terms totaled $365,000 and $135,000, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans March 31, 2016 March 31, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 1 $ 89 $ 89 1 $ 51 $ 51 Commercial real estate — — — 1 297 297 Home equity lines of credit — — — — — — Troubled debt restructurings 1 $ 89 $ 89 2 $ 348 $ 348 Refinance 1 $ 89 $ 89 — — — Rate reduction and term extension — — — 1 $ 297 $ 297 Debt consolidation and term extension — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — 1 51 51 Term extension — — — — — — Troubled debt restructurings 1 $ 89 $ 89 2 $ 348 $ 348 Acquired Loans March 31, 2016 March 31, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Commercial real estate — $ — $ — — $ — $ — Troubled debt restructurings — $ — $ — — $ — $ — Rate reduction and term extension — $ — $ — — $ — $ — Troubled debt restructurings — $ — $ — — $ — $ — One loan has been modified as a troubled debt restructure during 2016 and was not past due at March 31, 2016. Allowance for Loan Losses Business Activities Loans Acquired Loans (in thousands) March 31, 2016 March 31, 2016 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 86 $ (106 ) $ 1 $ 2,458 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 154 (36 ) 1 1,585 132 56 (96 ) 2 94 Land 188 (1 ) (23 ) — 164 — — — — — Real estate 4,131 239 (165 ) 2 4,207 211 46 (96 ) 2 163 Commercial and industrial 683 125 (31 ) 4 781 24 114 (1 ) 4 141 Municipal 61 (2 ) — — 59 — — — — — Consumer 124 11 (23 ) 2 114 — — — — — Unallocated 482 (70 ) — — 412 — — — — — Totals $ 5,481 $ 303 $ (219 ) $ 8 $ 5,573 $ 235 $ 160 $ (97 ) $ 6 $ 304 Business Activities Loans Acquired Loans (in thousands) December 31, 2015 December 31, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending 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 The composition of loans receivable and the allowance for loan losses is as follows: Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2016 Residential 1-4 family $ 266,482 $ 1,534 $ 8,399 $ 474 $ 274,881 $ 2,008 Residential 5+ multifamily 6,330 45 1,765 — 8,095 45 Construction of residential 1-4 family 9,332 75 — — 9,332 75 Home equity lines of credit 33,511 309 818 21 34,329 330 Residential real estate 315,655 1,963 10,982 495 326,637 2,458 Commercial 132,084 1,377 4,231 80 136,315 1,457 Construction of commercial 10,025 127 120 1 10,145 128 Commercial real estate 142,109 1,504 4,351 81 146,460 1,585 Farm land 2,983 24 1,024 1 4,007 25 Vacant land 5,125 120 3,073 19 8,198 139 Real estate secured 465,872 3,611 19,430 596 485,302 4,207 Commercial and industrial 92,019 780 509 1 92,528 781 Municipal 9,364 59 — — 9,364 59 Consumer 5,806 114 — — 5,806 114 Unallocated allowance — 412 — — — 412 Totals $ 573,061 $ 4,976 $ 19,939 $ 597 $ 593,000 $ 5,573 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance March 31, 2016 Residential 1-4 family $ 6,664 $ — $ 779 $ 69 $ — $ — $ 7,443 69 Residential 5+ multifamily 5,927 — 123 — — — 6,050 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 12,591 — 902 69 — — 13,493 69 Commercial 79,134 19 2,585 27 4,781 44 86,500 90 Construction of commercial 4,645 4 258 — — — 4,903 4 Commercial real estate 83,779 23 2,843 27 4,781 44 91,403 94 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 96,370 23 3,745 96 4,781 44 104,896 163 Commercial and industrial 34,475 21 414 114 628 6 35,517 141 Municipal — — — — — — — — Consumer 60 — — — 16 — 76 — Unallocated allowance — — — — — — — — Totals $ 130,905 $ 44 $ 4,159 $ 210 $ 5,425 $ 50 $ 140,489 $ 304 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 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans March 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 569,493 $ 4,429 $ — $ — $ 569,493 $4,429 Potential problem loans 3,568 135 — — 3,568 135 Impaired loans — — 19,939 597 19,939 597 Unallocated allowance — 412 — — — 412 Totals $ 573,061 $ 4,976 $ 19,939 $ 597 $ 593,000 $5,573 Acquired Loans March 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 133,381 $ 51 $ — $ — $ 133,381 $ 51 Potential problem loans 2,949 42 — — 2,949 42 Impaired loans — — 4,159 211 4,159 211 Unallocated allowance — — — — — — Totals $ 136,330 $ 93 $ 4,159 $ 211 $ 140,489 $ 304 Business Activities Loans December 31, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio 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 December 31, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio 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 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 March 31, 2016 Residential $ 7,155 $ 7,787 $ 8,032 $ 474 $ 18 $ 3,009 $ 3,230 $ 2,740 $ 20 Home equity lines of credit 488 513 503 21 — 330 347 296 — Residential real estate 7,643 8,300 8,535 495 18 3,339 3,577 3,036 20 Commercial 3,095 3,412 3,058 80 13 1,136 1,403 1,195 7 Construction of commercial 120 126 121 1 2 — — — — Farm land 11 13 372 1 — 1,013 1,109 656 — Vacant land 2,870 3,859 2,870 19 1 203 238 205 — Real estate secured 13,739 15,710 14,956 596 34 5,691 6,327 5,092 27 Commercial and industrial 94 98 95 1 — 415 468 421 1 Consumer — — — — — — — 20 — Totals $ 13,833 $ 15,808 $ 15,051 $ 597 $ 34 $ 6,106 $ 6,795 $ 5,533 $ 28 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 March 31, 2016 Residential $ 602 $ 716 $ 645 $ 69 $ — $ 300 $ 300 $ 263 $ — Home equity lines of — — — — — — — — — Residential real estate 602 716 645 69 — 300 300 263 — Commercial 331 723 547 27 4 2,255 2,853 2,176 13 Construction of commercial — — — — — 258 271 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 933 1,439 1,192 96 4 2,813 3,424 2,698 13 Commercial and 332 439 83 114 — — — — — Consumer — — — — — — — — — Totals $ 1,265 $ 1,878 $ 1,275 $ 210 $ 4 $ 2,813 $ 3,424 $ 2,698 $ 13 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 1-4 family $ 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 1-4 family $ 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

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2016
Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 4 - MORTGAGE SERVICING RIGHTS March 31, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 129,194 $ 137,186 Fair value of mortgage servicing rights 1,037 1,355 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 486 $ 694 Originated 20 62 Amortization (1) (51 ) (119 ) Balance, end of period $ 455 $ 637 Valuation Allowance Balance, beginning of period $ (3 ) $ — Increase in impairment reserve (1) (20 ) (9 ) Balance, end of period (23 ) (9 ) Mortgage servicing rights, net $ 432 $ 628 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income.

PLEDGED ASSETS

PLEDGED ASSETS	3 Months Ended
	Mar. 31, 2016
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 5 - PLEDGED ASSETS (in thousands) March 31, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 71,444 $ 67,750 Loans receivable 162,284 153,269 Total pledged assets $ 233,728 $ 221,019 At March 31, 2016, securities were pledged as follows: $64.5 million to secure public deposits, $6.8 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. Additionally, loans receivable were pledged to secure FHLBB advances and credit facilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6 – 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. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months ended March 31, (in thousands, except per share data) 2016 2015 Net income $ 1,512 $ 2,234 Less: Preferred stock dividends declared — (40 ) Net income available to common shareholders 1,512 2,194 Less: Undistributed earnings allocated to participating securities (13 ) (19 ) Net income allocated to common stock $ 1,499 $ 2,175 Weighted-average common shares issued 2,747 2,723 Less: Unvested restricted stock awards (24 ) (24 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,723 2,699 Add: Dilutive effect of stock options 18 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,741 2,716 Earnings per common share (basic) $ 0.55 $ 0.81 Earnings per common share (diluted) $ 0.55 $ 0.80

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 7 – SHAREHOLDERS’ EQUITY Capital Requirements Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury 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 Salisbury and the Bank. 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 was phased in effective January 1, 2016 at 0.625% of risk-weighted assets and increases 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 March 31, 2016, Salisbury 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. Actual regulatory capital position and minimum capital requirements as defined "To Be Well Capitalized Under Prompt Corrective Action Provisions" and "For Capital Adequacy Purposes" for Salisbury and the Bank are as follows: To be Well Capitalized Actual For Capital Adequacy Purposes Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio March 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 93,065 12.92 % $ 57,633 8.0 % n/a — Bank 90,245 12.53 57,633 8.0 $ 72,042 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 77,000 10.69 43,225 6.0 n/a — Bank 84,180 11.68 43,225 6.0 57,633 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 77,000 10.69 40,429 4.5 n/a — Bank 84,180 11.68 32,419 4.5 46,827 6.5 Tier 1 Capital (to average assets) Salisbury 77,000 8.57 35,937 4.0 n/a — Bank 84,180 9.51 35,403 4.0 39,828 5.0 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 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, Salisbury 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 Salisbury'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 Salisbury’s participation in the U.S. Treasury’s SBLF program.

BENEFITS

BENEFITS	3 Months Ended
	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
BENEFITS	NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $216,000 and $162,000, respectively, for the three month periods ended March 31, 2016 and 2015. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $19,000 and $18,000 for the three month periods ended March 31, 2016 and 2015, respectively. 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). ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which generally vest in full upon six years of qualified service. Salisbury’s ESOP expense was $36,000 and $96,000, respectively, for the three month periods ended March 31, 2016 and 2015. First quarter 2015 included an increased ESOP accrual. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 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 $11,000 for the first quarter of 2016 and $33,000 for the first quarter of 2015. Based on the Executive’s date of retirement, the vesting schedule ranges from 7.7% per year to 50% per year. 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. Grants of Restricted Stock and Options On February 16, 2016, 1,350 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. 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 26, 2016, 2,700 shares of stock options were exercised at $21.48 per share by two former Riverside Bank executives. On September 28, 2015, 2,700 shares of stock options were exercised at $21.48 per share by one former Riverside Bank executive. On February 17, 2015 and February 25, 2015, 1,350 and 5,400 shares of stock options were exercised, respectively, at $18.52 per share by two former Riverside Bank executives. On 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. Expense in first quarter 2016 and 2015 related to stock based compensation totaled $47,000 and $71,000, respectively. Unrecognized compensation cost relating to the awards as of March 31, 2016 and 2015 totaled $275,000 and $271,000, respectively. There were no forfeitures in the first quarter of 2016 or the first quarter of 2015.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive income is as follows: (in thousands) March 31, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 1,079 $ 1,125 Accumulated other comprehensive income, net $ 1,079 $ 1,125

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE ASSETS AND LIABILITIES	NOTE 10 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. ASC 820-10, “Fair Value Measurement-Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the quarter ended March 31, 2016. 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. • Mortgage servicing assets are accounted for at cost, subject to impairment testing. When the carrying cost exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is calculated as the present value of estimated future net servicing income and relies on market based assumptions for loan prepayment speeds, servicing costs, discount rates, and other economic factors; as such, the primary risk inherent in valuing mortgage servicing assets is the impact of fluctuating interest rates on the servicing revenue stream. Mortgage servicing assets are classified within Level 3 of the fair value hierarchy. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2016 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,529 $ — $ 7,529 Municipal bonds — 25,388 — 25,388 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 35,802 — 35,802 Collateralized mortgage obligations: U.S. Government agencies — 1,862 — 1,862 Non-agency — 4,568 — 4,568 SBA bonds — 2,871 — 2,871 CRA mutual funds — 779 — 779 Preferred stock 235 — — 235 Securities available-for-sale $ 235 $ 78,799 $ — $ 79,034 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 14,290 14,290 Mortgage servicing rights — — 1,037 1,037 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 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2016 Financial Assets Cash and cash equivalents $ 31,503 $ 31,503 $ 31,503 $ — $ — Securities available-for-sale 79,034 79,034 235 78,799 — Federal Home Loan Bank stock 3,117 3,117 — 3,117 — Loans held-for-sale 183 183 — — 183 Loans receivable, net 728,845 732,699 — — 732,699 Accrued interest receivable 2,451 2,451 — — 2,451 Cash surrender value of life insurance 13,775 13,775 13,775 — — Financial Liabilities Demand (non-interest-bearing) $ 192,184 $ 192,184 $ — $ — $ 192,184 Demand (interest-bearing) 122,814 122,814 — — 122,814 Money market 192,357 192,357 — — 192,357 Savings and other 126,214 126,214 — — 126,214 Certificates of deposit 122,089 122,952 — — 122,952 Deposits 755,658 756,521 — — 756,521 Repurchase agreements 2,620 2,620 — — 2,620 FHLBB advances 27,031 29,046 — — 29,046 Subordinated debt 9,770 10,190 — — 10,190 Note payable 365 404 — — 404 Capital lease liability 420 895 — — 895 Accrued interest payable 120 120 — — 120 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 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Impact of New Accounting Pronouncements Issued	Impact of New Accounting Pronouncements Issued In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). . "Improvements to Employee Share-Based Payment Accounting.”

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized Gross un- Gross un- Fair value March 31, 2016 Available-for-sale U.S. Treasury notes $ 7,497 $ 33 $ (1 ) $ 7,529 Municipal bonds 24,893 495 — 25,388 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,328 497 (23 ) 35,802 Collateralized mortgage obligations: U.S. Government agencies 1,850 12 — 1,862 Non-agency 4,198 382 (12 ) 4,568 SBA bonds 2,843 28 — 2,871 CRA mutual funds 770 9 — 779 Preferred stock 20 215 — 235 Total securities available-for-sale $ 77,399 $ 1,671 $ (36 ) $ 79,034 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,117 $ — $ — $ 3,117 (in thousands) Amortized Gross un- Gross un- 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 (1) Net of other-than-temporary impairment write-downs recognized in earnings.
Aggreggate fair value and gross unrealized loss of securities	(in thousands) Less than 12 Months 12 Months or Longer Total Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses March 31, 2016 Available-for-sale Municipal bonds $ 4,997 $ (1 ) $ — $ — $ 4,997 $ (1 ) Mortgage-backed securities 7,096 (18 ) 177 (5 ) 7,273 (23 ) Collateralized mortgage obligations: Non-agency 343 (2 ) 211 (6 ) 554 (8 ) Total temporarily impaired securities 12,436 (21 ) 388 (11 ) 12,824 (32 ) Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 217 (4 ) — — 217 (4 ) Total temporarily impaired and other-than-temporarily impaired securities $ 12,653 $ (25 ) $ 388 $ (11 ) $ 13,041 $ (36 )
Activity related to credit losses recognized into earnings	Three months ended March 31 (in thousands) 2016 2015 Balance, beginning of period $ 1,128 $ 1,128 Credit component on debt securities in which OTTI was not previously recognized — — Balance, end of period $ 1,128 $ 1,128

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	March 31, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 274,881 $ 7,443 $ 282,324 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 8,095 6,050 14,145 6,411 6,136 12,547 Construction of residential 1-4 family 9,332 — 9,332 7,998 — 7,998 Home equity lines of credit 34,329 — 34,329 35,017 — 35,017 Residential real estate 326,637 13,493 340,130 310,921 13,935 324,856 Commercial 136,315 86,500 222,815 129,446 88,829 218,275 Construction of commercial 10,145 4,903 15,048 6,525 4,874 11,399 Commercial real estate 146,460 91,403 237,863 135,971 93,703 229,674 Farm land 4,007 — 4,007 3,193 — 3,193 Vacant land 8,198 — 8,198 8,563 — 8,563 Real estate secured 485,302 104,896 590,198 458,648 107,638 566,286 Commercial and industrial 92,528 35,517 128,045 74,657 46,764 121,421 Municipal 9,364 — 9,364 9,566 — 9,566 Consumer 5,806 76 5,882 6,195 77 6,272 Loans receivable, gross 593,000 140,489 733,489 549,066 154,479 703,545 Deferred loan origination fees and costs, net 1,233 — 1,233 1,189 — 1,189 Allowance for loan losses (5,573 ) (304 ) (5,877 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 588,660 $ 140,185 $ 728,845 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ 183 $ — $ 183 $ 763 $ — $ 763
Composition of loans receivable by risk rating grade	(in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2016 Residential 1-4 family $ 260,994 $ 6,386 $ 7,411 $ 90 $ — $ 274,881 Residential 5+ multifamily 6,075 1,931 89 — — 8,095 Construction of residential 1-4 family 8,445 887 — — — 9,332 Home equity lines of credit 32,954 510 865 — — 34,329 Residential real estate 308,468 9,714 8,365 90 — 326,637 Commercial 125,703 5,269 5,343 — — 136,315 Construction of commercial 10,025 — 120 — — 10,145 Commercial real estate 135,728 5,269 5,463 — — 146,460 Farm land 2,983 — 1,024 — — 4,007 Vacant land 5,207 67 2,924 — — 8,198 Real estate secured 452,386 15,050 17,776 90 — 485,302 Commercial and industrial 88,953 2,995 578 2 — 92,528 Municipal 9,364 — — — — 9,364 Consumer 5,788 17 1 — — 5,806 Loans receivable, gross $ 556,491 $ 18,062 $ 18,355 $ 92 $ — $ 593,000 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2016 Residential 1-4 family $ 6,663 $ — $ 780 $ — $ — $ 7,443 Residential 5+ multifamily 5,927 — 123 — — 6,050 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 12,590 — 903 — — 13,493 Commercial 77,995 3,067 5,438 — — 86,500 Construction of commercial 4,645 — 258 — — 4,903 Commercial real estate 82,640 3,067 5,696 — — 91,403 Farm land — — — — — — Vacant land — — — — — — Real estate secured 95,230 3,067 6,599 — — 104,896 Commercial and industrial 34,007 917 509 84 — 35,517 Municipal — — — — — — Consumer 71 5 — — — 76 Loans receivable, gross $ 129,308 $ 3,989 $ 7,108 $ 84 $ — $ 140,489 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
Composition of loans receivable by delinquency status	Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over March 31, 2016 Residential 1-4 family $ 267,101 $ 1,334 $ 3,509 $ 75 $ — $ 2,862 $ 6,446 $ — $ 5,834 Residential 5+ multifamily 7,946 60 — — — 89 89 — — Construction of residential 1-4 family 9,160 172 — — — — — — — Home equity lines of credit 33,395 434 218 43 150 89 500 — 701 Residential real estate 317,602 2,000 3,727 118 150 3,040 7,035 — 6,535 Commercial 133,401 156 833 668 342 915 2,758 — 2,557 Construction of commercial 10,145 — — — — — — — — Commercial real estate 143,546 156 833 668 342 915 2,758 — 2,557 Farm land 2,983 301 — — — 723 723 — 1,024 Vacant land 5,371 — 4 — — 2,823 2,827 — 2,854 Real estate secured 469,502 2,457 4,564 786 492 7,501 13,343 — 12,970 Commercial and industrial 90,851 398 973 288 — 18 1,279 — 447 Municipal 9,364 — — — — — — — — Consumer 5,763 24 15 4 — — 19 — — Loans receivable, gross $ 575,480 $ 2,879 $ 5,552 $ 1,078 $ 492 $ 7,519 $ 14,641 $ — $ 13,417 Acquired Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over March 31, 2016 Residential 1-4 family $ 6,664 $ — $ — $ — $ — $ 779 $ 779 $ — $ 779 Residential 5+ multifamily 5,168 759 — — 123 — 123 — 123 Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 11,832 759 — — 123 779 902 — 902 Commercial 80,481 2,635 1,605 — — 1,779 3,384 — 1,839 Construction of commercial 4,645 — — — — 258 258 — 258 Commercial real estate 85,126 2,635 1,605 — — 2,037 3,642 — 2,097 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 96,958 3,394 1,605 — 123 2,816 4,544 — 2,999 Commercial and industrial 33,725 844 123 825 — — 948 — 414 Municipal — — — — — — — — — Consumer 72 4 — — — — — — — Loans receivable, gross $ 130,755 $ 4,242 $ 1,728 $ 825 $ 123 $ 2,816 $ 5,492 $ — $ 3,413 Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 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 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential — — — — — — — — — 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
Troubled debt restructurings	Business Activities Loans March 31, 2016 March 31, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 1 $ 89 $ 89 1 $ 51 $ 51 Commercial real estate — — — 1 297 297 Home equity lines of credit — — — — — — Troubled debt restructurings 1 $ 89 $ 89 2 $ 348 $ 348 Refinance 1 $ 89 $ 89 — — — Rate reduction and term extension — — — 1 $ 297 $ 297 Debt consolidation and term extension — — — — — — Debt consolidation, rate reduction, term extension and note bifurcation — — — 1 51 51 Term extension — — — — — — Troubled debt restructurings 1 $ 89 $ 89 2 $ 348 $ 348 Acquired Loans March 31, 2016 March 31, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Commercial real estate — $ — $ — — $ — $ — Troubled debt restructurings — $ — $ — — $ — $ — Rate reduction and term extension — $ — $ — — $ — $ — Troubled debt restructurings — $ — $ — — $ — $ —
Changes in allowance for loan losses	Business Activities Loans Acquired Loans (in thousands) March 31, 2016 March 31, 2016 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 86 $ (106 ) $ 1 $ 2,458 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 154 (36 ) 1 1,585 132 56 (96 ) 2 94 Land 188 (1 ) (23 ) — 164 — — — — — Real estate 4,131 239 (165 ) 2 4,207 211 46 (96 ) 2 163 Commercial and industrial 683 125 (31 ) 4 781 24 114 (1 ) 4 141 Municipal 61 (2 ) — — 59 — — — — — Consumer 124 11 (23 ) 2 114 — — — — — Unallocated 482 (70 ) — — 412 — — — — — Totals $ 5,481 $ 303 $ (219 ) $ 8 $ 5,573 $ 235 $ 160 $ (97 ) $ 6 $ 304 Business Activities Loans Acquired Loans (in thousands) December 31, 2015 December 31, 2015 Beginning balance Provision (benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (benefit) Charge- offs Reco- veries Ending 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
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 March 31, 2016 Residential 1-4 family $ 266,482 $ 1,534 $ 8,399 $ 474 $ 274,881 $ 2,008 Residential 5+ multifamily 6,330 45 1,765 — 8,095 45 Construction of residential 1-4 family 9,332 75 — — 9,332 75 Home equity lines of credit 33,511 309 818 21 34,329 330 Residential real estate 315,655 1,963 10,982 495 326,637 2,458 Commercial 132,084 1,377 4,231 80 136,315 1,457 Construction of commercial 10,025 127 120 1 10,145 128 Commercial real estate 142,109 1,504 4,351 81 146,460 1,585 Farm land 2,983 24 1,024 1 4,007 25 Vacant land 5,125 120 3,073 19 8,198 139 Real estate secured 465,872 3,611 19,430 596 485,302 4,207 Commercial and industrial 92,019 780 509 1 92,528 781 Municipal 9,364 59 — — 9,364 59 Consumer 5,806 114 — — 5,806 114 Unallocated allowance — 412 — — — 412 Totals $ 573,061 $ 4,976 $ 19,939 $ 597 $ 593,000 $ 5,573 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance March 31, 2016 Residential 1-4 family $ 6,664 $ — $ 779 $ 69 $ — $ — $ 7,443 69 Residential 5+ multifamily 5,927 — 123 — — — 6,050 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 12,591 — 902 69 — — 13,493 69 Commercial 79,134 19 2,585 27 4,781 44 86,500 90 Construction of commercial 4,645 4 258 — — — 4,903 4 Commercial real estate 83,779 23 2,843 27 4,781 44 91,403 94 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 96,370 23 3,745 96 4,781 44 104,896 163 Commercial and industrial 34,475 21 414 114 628 6 35,517 141 Municipal — — — — — — — — Consumer 60 — — — 16 — 76 — Unallocated allowance — — — — — — — — Totals $ 130,905 $ 44 $ 4,159 $ 210 $ 5,425 $ 50 $ 140,489 $ 304 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
Credit quality segments of loans receivable and allowance for loan losses	Business Activities Loans March 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 569,493 $ 4,429 $ — $ — $ 569,493 $4,429 Potential problem loans 3,568 135 — — 3,568 135 Impaired loans — — 19,939 597 19,939 597 Unallocated allowance — 412 — — — 412 Totals $ 573,061 $ 4,976 $ 19,939 $ 597 $ 593,000 $5,573 Acquired Loans March 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 133,381 $ 51 $ — $ — $ 133,381 $ 51 Potential problem loans 2,949 42 — — 2,949 42 Impaired loans — — 4,159 211 4,159 211 Unallocated allowance — — — — — — Totals $ 136,330 $ 93 $ 4,159 $ 211 $ 140,489 $ 304 Business Activities Loans December 31, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio 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 December 31, 2015 (in thousands) Collectively evaluated Individually evaluated Total portfolio 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
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 March 31, 2016 Residential $ 7,155 $ 7,787 $ 8,032 $ 474 $ 18 $ 3,009 $ 3,230 $ 2,740 $ 20 Home equity lines of credit 488 513 503 21 — 330 347 296 — Residential real estate 7,643 8,300 8,535 495 18 3,339 3,577 3,036 20 Commercial 3,095 3,412 3,058 80 13 1,136 1,403 1,195 7 Construction of commercial 120 126 121 1 2 — — — — Farm land 11 13 372 1 — 1,013 1,109 656 — Vacant land 2,870 3,859 2,870 19 1 203 238 205 — Real estate secured 13,739 15,710 14,956 596 34 5,691 6,327 5,092 27 Commercial and industrial 94 98 95 1 — 415 468 421 1 Consumer — — — — — — — 20 — Totals $ 13,833 $ 15,808 $ 15,051 $ 597 $ 34 $ 6,106 $ 6,795 $ 5,533 $ 28 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 March 31, 2016 Residential $ 602 $ 716 $ 645 $ 69 $ — $ 300 $ 300 $ 263 $ — Home equity lines of — — — — — — — — — Residential real estate 602 716 645 69 — 300 300 263 — Commercial 331 723 547 27 4 2,255 2,853 2,176 13 Construction of commercial — — — — — 258 271 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 933 1,439 1,192 96 4 2,813 3,424 2,698 13 Commercial and 332 439 83 114 — — — — — Consumer — — — — — — — — — Totals $ 1,265 $ 1,878 $ 1,275 $ 210 $ 4 $ 2,813 $ 3,424 $ 2,698 $ 13 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 1-4 family $ 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 1-4 family $ 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

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2016
Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	March 31, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 129,194 $ 137,186 Fair value of mortgage servicing rights 1,037 1,355
Changes in mortgage servicing rights	Three months ended March 31, (in thousands) 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 486 $ 694 Originated 20 62 Amortization (1) (51 ) (119 ) Balance, end of period $ 455 $ 637 Valuation Allowance Balance, beginning of period $ (3 ) $ — Increase in impairment reserve (1) (20 ) (9 ) Balance, end of period (23 ) (9 ) Mortgage servicing rights, net $ 432 $ 628 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income.

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Guarantees [Abstract]
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	(in thousands) March 31, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 71,444 $ 67,750 Loans receivable 162,284 153,269 Total pledged assets $ 233,728 $ 221,019

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Computation of earnings per share	Three months ended March 31, (in thousands, except per share data) 2016 2015 Net income $ 1,512 $ 2,234 Less: Preferred stock dividends declared — (40 ) Net income available to common shareholders 1,512 2,194 Less: Undistributed earnings allocated to participating securities (13 ) (19 ) Net income allocated to common stock $ 1,499 $ 2,175 Weighted-average common shares issued 2,747 2,723 Less: Unvested restricted stock awards (24 ) (24 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,723 2,699 Add: Dilutive effect of stock options 18 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,741 2,716 Earnings per common share (basic) $ 0.55 $ 0.81 Earnings per common share (diluted) $ 0.55 $ 0.80

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 93,065 12.92 % $ 57,633 8.0 % n/a — Bank 90,245 12.53 57,633 8.0 $ 72,042 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 77,000 10.69 43,225 6.0 n/a — Bank 84,180 11.68 43,225 6.0 57,633 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 77,000 10.69 40,429 4.5 n/a — Bank 84,180 11.68 32,419 4.5 46,827 6.5 Tier 1 Capital (to average assets) Salisbury 77,000 8.57 35,937 4.0 n/a — Bank 84,180 9.51 35,403 4.0 39,828 5.0 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

ACCUMULATED OTHER COMPREHENSI25

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Components of accumulated other comprehensive income	(in thousands) March 31, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 1,079 $ 1,125 Accumulated other comprehensive income, net $ 1,079 $ 1,125

FAIR VALUE OF ASSETS AND LIAB26

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 7,529 $ — $ 7,529 Municipal bonds — 25,388 — 25,388 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 35,802 — 35,802 Collateralized mortgage obligations: U.S. Government agencies — 1,862 — 1,862 Non-agency — 4,568 — 4,568 SBA bonds — 2,871 — 2,871 CRA mutual funds — 779 — 779 Preferred stock 235 — — 235 Securities available-for-sale $ 235 $ 78,799 $ — $ 79,034 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 14,290 14,290 Mortgage servicing rights — — 1,037 1,037 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
Carrying value and estimated fair values of financial instruments	(in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2016 Financial Assets Cash and cash equivalents $ 31,503 $ 31,503 $ 31,503 $ — $ — Securities available-for-sale 79,034 79,034 235 78,799 — Federal Home Loan Bank stock 3,117 3,117 — 3,117 — Loans held-for-sale 183 183 — — 183 Loans receivable, net 728,845 732,699 — — 732,699 Accrued interest receivable 2,451 2,451 — — 2,451 Cash surrender value of life insurance 13,775 13,775 13,775 — — Financial Liabilities Demand (non-interest-bearing) $ 192,184 $ 192,184 $ — $ — $ 192,184 Demand (interest-bearing) 122,814 122,814 — — 122,814 Money market 192,357 192,357 — — 192,357 Savings and other 126,214 126,214 — — 126,214 Certificates of deposit 122,089 122,952 — — 122,952 Deposits 755,658 756,521 — — 756,521 Repurchase agreements 2,620 2,620 — — 2,620 FHLBB advances 27,031 29,046 — — 29,046 Subordinated debt 9,770 10,190 — — 10,190 Note payable 365 404 — — 404 Capital lease liability 420 895 — — 895 Accrued interest payable 120 120 — — 120 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

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Amortized cost (1)
Available-for-sale
U.S. Treasury notes	$ 7,497	$ 2,499
U.S. Government Agency notes		498
Municipal bonds	24,893	29,752
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	35,328	31,900
Collateralized mortgage obligations, U.S. Government Agencies	1,850	2,002
Collateralized mortgage obligations, Non-agency	4,198	4,487
SBA bonds	2,843	3,065
CRA mutual funds	770	766
Preferred stock	20	20
Total securities available-for-sale	77,399	74,989
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,117	3,176
Gross unrealized gains
Available-for-sale
U.S. Treasury notes	33	$ 42
U.S. Government Agency notes
Municipal bonds	495	$ 633
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	497	385
Collateralized mortgage obligations, U.S. Government Agencies	12	12
Collateralized mortgage obligations, Non-agency	382	468
SBA bonds	28	$ 31
CRA mutual funds	9
Preferred stock	215	$ 226
Total securities available-for-sale	$ 1,671	$ 1,797
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
U.S. Treasury notes	$ (1)
U.S. Government Agency notes
Municipal bonds
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	$ (23)	$ (83)
Collateralized mortgage obligations, U.S. Government Agencies
Collateralized mortgage obligations, Non-agency	$ (12)	$ (7)
SBA bonds
CRA mutual funds		$ (2)
Preferred stock
Total securities available-for-sale	$ (36)	$ (92)
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Treasury notes	$ 7,529	$ 2,541
U.S. Government Agency notes		498
Municipal bonds	25,388	30,385
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	35,802	32,202
Collateralized mortgage obligations, U.S. Government Agencies	1,862	2,014
Collateralized mortgage obligations, Non-agency	4,568	4,948
SBA bonds	2,871	3,096
CRA mutual funds	779	764
Preferred stock	235	246
Total securities available-for-sale	79,034	76,694
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,117	$ 3,176

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) $ in Thousands	Mar. 31, 2016USD ($)
Less Than 12 Months, Fair value
Available-for-sale
Municipal bonds	$ 4,997
Mortgage-backed securities	7,096
Collateralized mortgage obligations, Non-agency	343
Total temporarily impaired securities	12,436
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	217
Total temporarily impaired and other-than-temporarily impaired securities	12,653
Less Than 12 Months, Unrealized losses
Available-for-sale
Municipal bonds	(1)
Mortgage-backed securities	(18)
Collateralized mortgage obligations, Non-agency	(2)
Total temporarily impaired securities	(21)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	(4)
Total temporarily impaired and other-than-temporarily impaired securities	$ (25)
12 Months or Longer, Fair value
Available-for-sale
Municipal bonds
Mortgage-backed securities	$ 177
Collateralized mortgage obligations, Non-agency	211
Total temporarily impaired securities	$ 388
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	$ 388
12 Months or Longer, Unrealized losses
Available-for-sale
Municipal bonds
Mortgage-backed securities	$ (5)
Collateralized mortgage obligations, Non-agency	(6)
Total temporarily impaired securities	$ (11)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	$ (11)
Total, Fair value
Available-for-sale
Municipal bonds	4,997
Mortgage-backed securities	7,273
Collateralized mortgage obligations, Non-agency	554
Total temporarily impaired securities	12,824
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	217
Total temporarily impaired and other-than-temporarily impaired securities	13,041
Total, Unrealized losses
Available-for-sale
Municipal bonds	(1)
Mortgage-backed securities	(23)
Collateralized mortgage obligations, Non-agency	(8)
Total temporarily impaired securities	(32)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	(4)
Total temporarily impaired and other-than-temporarily impaired securities	$ (36)

SECURITIES - Activity related t

SECURITIES - Activity related to credit losses recognized into earnings (Details) - Activity related to credit losses recognized into earnings - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Balance, beginning of period	$ 1,128	$ 1,128
Credit component on debt securities in which OTTI was not previously recognized
Balance, end of period	$ 1,128	$ 1,128

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2009
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities sold		$ 3,900
Gain on sale of available-for-sale securities, gross		165
Gain on sale of available-for-sale securities, net of tax		$ 150
Recognized losses for deterioration in credit quality			$ 1,128

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activites Loans
Residential 1-4 family	$ 274,881	$ 261,495
Residential 5+ multifamily	8,095	6,411
Construction of residential 1-4 family	9,332	7,998
Home equity lines of credit	34,329	35,017
Residential real estate	326,637	310,921
Commercial	136,315	129,446
Construction of commercial	10,145	6,525
Commercial real estate	146,460	135,971
Farm land	4,007	3,193
Vacant land	8,198	8,563
Real estate secured	485,302	458,648
Commercial and industrial	92,528	74,657
Municipal	9,364	9,566
Consumer	5,806	6,195
Loans receivable, gross	593,000	549,066
Deferred loan origination fees and costs, net	1,233	1,189
Allowance for loan losses	(5,573)	(5,481)
Loans receivable, net	588,660	544,774
Loans held-for-sale
Residential 1-4 family	183	763
Acquired Loans
Residential 1-4 family	7,443	7,799
Residential 5+ multifamily	$ 6,050	$ 6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,493	$ 13,935
Commercial	86,500	88,829
Construction of commercial	4,903	4,874
Commercial real estate	$ 91,403	$ 93,703
Farm land
Vacant land
Real estate secured	$ 104,896	$ 107,638
Commercial and industrial	$ 35,517	$ 46,764
Municipal
Consumer	$ 76	$ 77
Loans receivable, gross	$ 140,489	$ 154,479
Deferred loan origination fees and costs, net
Allowance for loan losses	$ (304)	$ (235)
Loans receivable, net	$ 140,185	$ 154,244
Loans held-for-sale
Residential 1-4 family
Total
Residential 1-4 family	$ 282,324	$ 269,294
Residential 5+ multifamily	14,145	12,547
Construction of residential 1-4 family	9,332	7,998
Home equity lines of credit	34,329	35,017
Residential real estate	340,130	324,856
Commercial	222,815	218,275
Construction of commercial	15,048	11,399
Commercial real estate	237,863	229,674
Farm land	4,007	3,193
Vacant land	8,198	8,563
Real estate secured	590,198	566,286
Commercial and industrial	128,045	121,421
Municipal	9,364	9,566
Consumer	5,882	6,272
Loans receivable, gross	733,489	703,545
Deferred loan origination fees and costs, net	1,233	1,189
Allowance for loan losses	(5,877)	(5,716)
Loans receivable, net	728,845	699,018
Loans held-for-sale
Residential 1-4 family	$ 183	$ 763

LOANS - Composition of loans 32

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Pass
Residential 1-4 family	$ 260,994	$ 248,027
Residential 5+ multifamily	6,075	4,507
Construction of residential 1-4 family	8,445	7,111
Home equity lines of credit	32,954	33,687
Residential real estate	308,468	293,332
Commercial	125,703	120,903
Construction of commercial	10,025	6,525
Commercial real estate	135,728	127,428
Farm land	2,983	2,162
Vacant land	5,207	5,567
Real estate secured	452,386	428,489
Commercial and industrial	88,953	72,887
Municipal	9,364	9,566
Consumer	5,788	6,171
Loans receivable, gross	556,491	517,113
Business Activities Loans - Special mention
Residential 1-4 family	6,386	6,933
Residential 5+ multifamily	1,931	1,815
Construction of residential 1-4 family	887	887
Home equity lines of credit	510	545
Residential real estate	9,714	10,180
Commercial	$ 5,269	$ 4,801
Construction of commercial
Commercial real estate	$ 5,269	$ 4,801
Farm land
Vacant land	$ 67	$ 69
Real estate secured	15,050	15,050
Commercial and industrial	$ 2,995	$ 1,214
Municipal
Consumer	$ 17	$ 18
Loans receivable, gross	18,062	16,282
Business Activities Loans - Substandard
Residential 1-4 family	7,411	6,444
Residential 5+ multifamily	$ 89	$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 865	$ 785
Residential real estate	8,365	7,318
Commercial	5,343	$ 3,742
Construction of commercial	120
Commercial real estate	5,463	$ 3,742
Farm land	1,024	1,031
Vacant land	2,924	2,927
Real estate secured	17,776	15,018
Commercial and industrial	$ 578	$ 555
Municipal
Consumer	$ 1	$ 6
Loans receivable, gross	18,355	15,579
Business Activities Loans - Doubtful
Residential 1-4 family	$ 90	$ 91
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 90	$ 91
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 90	$ 91
Commercial and industrial	$ 2	$ 1
Municipal
Consumer
Loans receivable, gross	$ 92	$ 92
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	$ 274,881	$ 261,495
Residential 5+ multifamily	8,095	6,411
Construction of residential 1-4 family	9,332	7,998
Home equity lines of credit	34,329	35,017
Residential real estate	326,637	310,921
Commercial	136,315	129,446
Construction of commercial	10,145	6,525
Commercial real estate	146,460	135,971
Farm land	4,007	3,193
Vacant land	8,198	8,563
Real estate secured	485,302	458,648
Commercial and industrial	92,528	74,657
Municipal	9,364	9,566
Consumer	5,806	6,195
Loans receivable, gross	593,000	549,066
Acquired Loans - Pass
Residential 1-4 family	6,663	6,824
Residential 5+ multifamily	$ 5,927	$ 6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 12,590	$ 12,960
Commercial	77,995	80,406
Construction of commercial	4,645	4,612
Commercial real estate	$ 82,640	$ 85,018
Farm land
Vacant land
Real estate secured	$ 95,230	$ 97,978
Commercial and industrial	$ 34,007	$ 45,363
Municipal
Consumer	$ 71	$ 71
Loans receivable, gross	$ 129,308	143,412
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	$ 3,067	$ 4,005
Construction of commercial
Commercial real estate	$ 3,067	$ 4,005
Farm land
Vacant land
Real estate secured	$ 3,067	$ 4,204
Commercial and industrial	$ 917	$ 875
Municipal
Consumer	$ 5	$ 6
Loans receivable, gross	3,989	5,085
Acquired Loans - Substandard
Residential 1-4 family	780	$ 776
Residential 5+ multifamily	$ 123
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 903	$ 776
Commercial	5,438	4,418
Construction of commercial	258	262
Commercial real estate	$ 5,696	$ 4,680
Farm land
Vacant land
Real estate secured	$ 6,599	$ 5,456
Commercial and industrial	$ 509	$ 443
Municipal
Consumer
Loans receivable, gross	$ 7,108	$ 5,899
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
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured
Commercial and industrial	$ 84	$ 83
Municipal
Consumer
Loans receivable, gross	$ 84	$ 83
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	$ 7,443	$ 7,799
Residential 5+ multifamily	$ 6,050	$ 6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 13,493	$ 13,935
Commercial	86,500	88,829
Construction of commercial	4,903	4,874
Commercial real estate	$ 91,403	$ 93,703
Farm land
Vacant land
Real estate secured	$ 104,896	$ 107,638
Commercial and industrial	$ 35,517	$ 46,764
Municipal
Consumer	$ 76	$ 77
Loans receivable, gross	$ 140,489	$ 154,479

LOANS - Composition of loans 33

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Current
Residential 1-4 family	$ 267,101	$ 254,152
Residential 5+ multifamily	7,946	6,254
Construction of residential 1-4 family	9,160	7,826
Home equity lines of credit	33,395	33,744
Residential real estate	317,602	301,976
Commercial	133,401	126,440
Construction of commercial	10,145	6,525
Commercial real estate	143,546	132,965
Farm land	2,983	2,172
Vacant land	5,371	5,734
Real estate secured	469,502	442,847
Commercial and industrial	90,851	73,698
Municipal	9,364	9,566
Consumer	5,763	6,096
Loans receivable, gross	575,480	532,207
Business Activities Loans - Past due 1-29 days
Residential 1-4 family	1,334	$ 1,781
Residential 5+ multifamily	60
Construction of residential 1-4 family	172	$ 172
Home equity lines of credit	434	363
Residential real estate	2,000	2,316
Commercial	$ 156	$ 1,618
Construction of commercial
Commercial real estate	$ 156	$ 1,618
Farm land	$ 301	$ 298
Vacant land
Real estate secured	$ 2,457	$ 4,232
Commercial and industrial	$ 398	$ 906
Municipal
Consumer	$ 24	$ 61
Loans receivable, gross	2,879	5,199
Business Activities Loans - Past due 30-59 days
Residential 1-4 family	$ 3,509	1,931
Residential 5+ multifamily		$ 68
Construction of residential 1-4 family
Home equity lines of credit	$ 218	$ 306
Residential real estate	3,727	2,305
Commercial	$ 833	$ 474
Construction of commercial
Commercial real estate	$ 833	$ 474
Farm land
Vacant land	$ 4	$ 6
Real estate secured	4,564	2,785
Commercial and industrial	$ 973	$ 35
Municipal
Consumer	$ 15	$ 21
Loans receivable, gross	5,552	2,841
Business Activities Loans - Past due 60-89 days
Residential 1-4 family	$ 75	$ 683
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	$ 43	$ 101
Residential real estate	118	$ 784
Commercial	$ 668
Construction of commercial
Commercial real estate	$ 668
Farm land
Vacant land
Real estate secured	$ 786	$ 784
Commercial and industrial	$ 288
Municipal
Consumer	$ 4	$ 17
Loans receivable, gross	$ 1,078	801
Business Activities Loans - Past due 90-179 days
Residential 1-4 family		$ 973
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	$ 150	$ 113
Residential real estate	150	1,086
Commercial	$ 342	$ 233
Construction of commercial
Commercial real estate	$ 342	$ 233
Farm land
Vacant land
Real estate secured	$ 492	$ 1,319
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 492	$ 1,319
Business Activities Loans - Past due 180 days and over
Residential 1-4 family	2,862	1,975
Residential 5+ multifamily	$ 89	$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 89	$ 390
Residential real estate	3,040	2,454
Commercial	$ 915	$ 681
Construction of commercial
Commercial real estate	$ 915	$ 681
Farm land	723	723
Vacant land	2,823	2,823
Real estate secured	7,501	6,681
Commercial and industrial	$ 18	$ 18
Municipal
Consumer
Loans receivable, gross	$ 7,519	$ 6,699
Business Activities Loans - Past due 30 days and over
Residential 1-4 family	6,446	5,562
Residential 5+ multifamily	$ 89	$ 157
Construction of residential 1-4 family
Home equity lines of credit	$ 500	$ 910
Residential real estate	7,035	6,629
Commercial	$ 2,758	$ 1,388
Construction of commercial
Commercial real estate	$ 2,758	$ 1,388
Farm land	723	723
Vacant land	2,827	2,829
Real estate secured	13,343	11,569
Commercial and industrial	$ 1,279	$ 53
Municipal
Consumer	$ 19
Loans receivable, gross	$ 14,641	$ 11,660
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
Municipal
Consumer
Loans receivable, gross
Business Activities Loans - Non-accrual
Residential 1-4 family	$ 5,834	$ 5,671
Residential 5+ multifamily		$ 89
Construction of residential 1-4 family
Home equity lines of credit	$ 701	$ 601
Residential real estate	6,535	6,361
Commercial	$ 2,557	$ 2,349
Construction of commercial
Commercial real estate	$ 2,557	$ 2,349
Farm land	1,024	1,031
Vacant land	2,854	2,855
Real estate secured	12,970	12,596
Commercial and industrial	$ 447	$ 461
Municipal
Consumer		$ 80
Loans receivable, gross	$ 13,417	13,137
Acquired Loans - Current
Residential 1-4 family	6,664	6,823
Residential 5+ multifamily	$ 5,168	$ 6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 11,832	$ 12,959
Commercial	80,481	81,140
Construction of commercial	4,645	4,612
Commercial real estate	$ 85,126	$ 85,752
Farm land
Vacant land
Real estate secured	$ 96,958	$ 98,711
Commercial and industrial	$ 33,725	$ 46,128
Municipal
Consumer	$ 72	$ 77
Loans receivable, gross	$ 130,755	$ 144,916
Acquired Loans - Past due 1-29 days
Residential 1-4 family
Residential 5+ multifamily	$ 759
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 759
Commercial	$ 2,635	$ 4,848
Construction of commercial
Commercial real estate	$ 2,635	$ 4,848
Farm land
Vacant land
Real estate secured	$ 3,394	$ 4,848
Commercial and industrial	$ 844	$ 471
Municipal
Consumer	$ 4
Loans receivable, gross	$ 4,242	$ 5,319
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	$ 1,605	$ 916
Construction of commercial
Commercial real estate	$ 1,605	$ 916
Farm land
Vacant land
Real estate secured	$ 1,605	$ 916
Commercial and industrial	$ 123	$ 83
Municipal
Consumer
Loans receivable, gross	$ 1,728	$ 999
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	$ 825	$ 82
Municipal
Consumer
Loans receivable, gross	$ 825	$ 192
Acquired Loans - Past due 90-179 days
Residential 1-4 family
Residential 5+ multifamily	$ 123
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 123
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	$ 123
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 123
Acquired Loans - Past due 180 days and over
Residential 1-4 family	$ 779	$ 866
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 779	$ 866
Commercial	1,779	1,925
Construction of commercial	258	262
Commercial real estate	$ 2,037	$ 2,187
Farm land
Vacant land
Real estate secured	$ 2,816	$ 3,053
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 2,816	$ 3,053
Acquired Loans - Past due 30 days and over
Residential 1-4 family	779	$ 976
Residential 5+ multifamily	$ 123
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 902	$ 976
Commercial	3,384	2,841
Construction of commercial	258	262
Commercial real estate	$ 3,642	$ 3,103
Farm land
Vacant land
Real estate secured	$ 4,544	$ 4,079
Commercial and industrial	$ 948	$ 165
Municipal
Consumer
Loans receivable, gross	$ 5,492	$ 4,244
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	$ 779	$ 766
Residential 5+ multifamily	$ 123
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	$ 902	$ 766
Commercial	1,839	2,000
Construction of commercial	258	262
Commercial real estate	$ 2,097	$ 2,262
Farm land
Vacant land
Real estate secured	$ 2,999	$ 3,038
Commercial and industrial	$ 414
Municipal
Consumer
Loans receivable, gross	$ 3,413	$ 3,038

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)Integer	Mar. 31, 2015USD ($)Integer
Business Activities Loans - Residential real estate
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 89	$ 51
Post-modification balance	$ 89	$ 51
Business Activities Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 297
Post-modification balance		$ 297
Business Activities Loans - Home equity lines of credit
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Business Activities Loans - Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	1	2
Pre-modification balance	$ 89	$ 348
Post-modification balance	$ 89	$ 348
Business Activities Loans - Refinance
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 89
Post-modification balance	$ 89
Business Activities Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 297
Post-modification balance		$ 297
Business Activities Loans - Debt consolidation and term extension
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
Pre-modification balance		$ 51
Post-modification balance		$ 51
Business Activities Loans - Term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Troubled debt restructurings
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Acquired Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Beginning 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
Business Activities Loans - Provision (benefit)
Residential	86	746
Commercial	154	(18)
Land	(1)	157
Real estate	239	885
Commercial and industrial	125	$ (295)
Municipal	(2)
Consumer	11	$ 71
Unallocated	(70)	73
Totals	303	734
Business Activities Loans - Charge-offs
Residential	(106)	(698)
Commercial	(36)	(214)
Land	(23)	(133)
Real estate	(165)	(1,045)
Commercial and industrial	$ (31)	$ (69)
Municipal
Consumer	$ (23)	$ (82)
Unallocated
Totals	$ (219)	$ (1,196)
Business Activities Loans - Recoveries
Residential	1	123
Commercial	$ 1	$ 1
Land
Real estate	$ 2	$ 124
Commercial and industrial	$ 4	$ 464
Municipal
Consumer	$ 2	$ 18
Unallocated
Totals	$ 8	$ 606
Business Activities Loans - Ending balance
Residential	2,458	2,477
Commercial	1,585	1,466
Land	164	188
Real estate	4,207	4,131
Commercial and industrial	781	683
Municipal	59	61
Consumer	114	124
Unallocated	412	482
Totals	5,573	$ 5,481
Acquired Loans - Beginning balance
Residential	79
Commercial	$ 132	$ 7
Land
Real estate	$ 211	$ 7
Commercial and industrial	$ 24	$ 14
Municipal
Consumer
Unallocated
Totals	$ 235	$ 21
Acquired Loans - Provision (benefit)
Residential	(10)	79
Commercial	$ 56	$ 136
Land
Real estate	$ 46	$ 215
Commercial and industrial	$ 114	$ (24)
Municipal
Consumer		$ (8)
Unallocated
Totals	$ 160	$ 183
Acquired Loans - Charge-offs
Residential
Commercial	$ (96)	$ (16)
Land
Real estate	$ (96)	$ (16)
Commercial and industrial	$ (1)
Municipal
Consumer
Unallocated
Totals	$ (97)	$ (16)
Acquired Loans - Recoveries
Residential
Commercial	$ 2	$ 5
Land
Real estate	$ 2	$ 5
Commercial and industrial	$ 4	$ 34
Municipal
Consumer		$ 8
Unallocated
Totals	$ 6	$ 47
Acquired Loans - Ending balance
Residential	69	79
Commercial	$ 94	$ 132
Land
Real estate	$ 163	$ 211
Commercial and industrial	$ 141	$ 24
Municipal
Consumer
Unallocated
Totals	$ 304	$ 235

LOANS - Composition of loans 36

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Collectively evaluated Loans
Residential 1-4 family	$ 266,482	$ 253,156
Residential 5+ multifamily	6,330	4,640
Construction of residential 1-4 family	9,332	7,998
Home equity lines credit	33,511	34,298
Residential real estate	315,655	300,092
Commercial	132,084	125,173
Construction of commercial	10,025	6,403
Commercial real estate	142,109	131,576
Farm land	2,983	2,162
Vacant land	5,125	5,486
Real estate secured	465,872	439,316
Commercial and industrial	92,019	74,131
Municipal	9,364	9,566
Consumer	$ 5,806	$ 6,115
Unallocated allowance
Totals	$ 573,061	$ 529,128
Business Activities Loans - Collectively evaluated Allowance
Residential 1-4 family	1,534	1,415
Residential 5+ multifamily	45	33
Construction of residential 1-4 family	75	65
Home equity lines credit	309	286
Residential real estate	1,963	1,799
Commercial	1,377	1,265
Construction of commercial	127	87
Commercial real estate	1,504	1,352
Farm land	24	23
Vacant land	120	122
Real estate secured	3,611	3,296
Commercial and industrial	780	673
Municipal	59	61
Consumer	114	124
Unallocated allowance	412	482
Totals	4,976	4,636
Business Activities Loans - Individually evaluated Loans
Residential 1-4 family	8,399	8,339
Residential 5+ multifamily	$ 1,765	$ 1,771
Construction of residential 1-4 family
Home equity lines credit	$ 818	$ 719
Residential real estate	10,982	10,829
Commercial	4,231	4,273
Construction of commercial	120	122
Commercial real estate	4,351	4,395
Farm land	1,024	1,031
Vacant land	3,073	3,077
Real estate secured	19,430	19,332
Commercial and industrial	$ 509	$ 526
Municipal
Consumer		$ 80
Unallocated allowance
Totals	$ 19,939	$ 19,938
Business Activities Loans - Individually evaluated Allowance
Residential 1-4 family	$ 474	$ 610
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit	$ 21	$ 68
Residential real estate	495	678
Commercial	80	113
Construction of commercial	1	1
Commercial real estate	81	114
Farm land	1	14
Vacant land	19	29
Real estate secured	596	835
Commercial and industrial	$ 1	$ 10
Municipal
Consumer
Unallocated allowance
Totals	$ 597	$ 845
Business Activities Loans - Total portfolio Loans
Residential 1-4 family	274,881	261,495
Residential 5+ multifamily	8,095	6,411
Construction of residential 1-4 family	9,332	7,998
Home equity lines credit	34,329	35,017
Residential real estate	326,637	310,921
Commercial	136,315	129,446
Construction of commercial	10,145	6,525
Commercial real estate	146,460	135,971
Farm land	4,007	3,193
Vacant land	8,198	8,563
Real estate secured	485,302	458,648
Commercial and industrial	92,528	74,657
Municipal	9,364	9,566
Consumer	$ 5,806	$ 6,195
Unallocated allowance
Totals	$ 593,000	$ 549,066
Business Activities Loans - Total portfolio Allowance
Residential 1-4 family	2,008	2,025
Residential 5+ multifamily	45	33
Construction of residential 1-4 family	75	65
Home equity lines credit	330	354
Residential real estate	2,458	2,477
Commercial	1,457	1,378
Construction of commercial	128	88
Commercial real estate	1,585	1,466
Farm land	25	37
Vacant land	139	151
Real estate secured	4,207	4,131
Commercial and industrial	781	683
Municipal	59	61
Consumer	114	124
Unallocated allowance	412	482
Totals	5,573	5,481
Acquired Loans - Collectively evaluated Loans
Residential 1-4 family	6,664	7,023
Residential 5+ multifamily	$ 5,927	$ 6,136
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	$ 12,591	$ 13,159
Commercial	79,134	81,300
Construction of commercial	4,645	4,612
Commercial real estate	$ 83,779	$ 85,912
Farm land
Vacant land
Real estate secured	$ 96,370	$ 99,071
Commercial and industrial	$ 34,475	$ 45,650
Municipal
Consumer	$ 60	$ 61
Unallocated allowance
Totals	$ 130,905	$ 144,782
Acquired Loans - Collectively evaluated Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	$ 19	$ 19
Construction of commercial	4	4
Commercial real estate	$ 23	$ 23
Farm land
Vacant land
Real estate secured	$ 23	$ 23
Commercial and industrial	$ 21	$ 24
Municipal
Consumer
Unallocated allowance
Totals	$ 44	$ 47
Acquired Loans - Individually evaluated Loans
Residential 1-4 family	779	$ 776
Residential 5+ multifamily	$ 123
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	$ 902	$ 776
Commercial	2,585	2,742
Construction of commercial	258	262
Commercial real estate	$ 2,843	$ 3,004
Farm land
Vacant land
Real estate secured	$ 3,745	$ 3,780
Commercial and industrial	$ 414
Municipal
Consumer
Unallocated allowance
Totals	$ 4,159	$ 3,780
Acquired Loans - Individually evaluated Allowance
Residential 1-4 family	$ 69	$ 79
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	$ 69	$ 79
Commercial	$ 27	$ 107
Construction of commercial
Commercial real estate	$ 27	$ 107
Farm land
Vacant land
Real estate secured	$ 96	$ 186
Commercial and industrial	$ 114
Municipal
Consumer
Unallocated allowance
Totals	$ 210	$ 186
Acquired Loans - ASC 310-30 Loans
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	$ 4,781	$ 4,787
Construction of commercial
Commercial real estate	$ 4,781	$ 4,787
Farm land
Vacant land
Real estate secured	$ 4,781	$ 4,787
Commercial and industrial	$ 628	$ 1,114
Municipal
Consumer	$ 16	$ 16
Unallocated allowance
Totals	$ 5,425	$ 5,917
Acquired Loans - ASC 310-30 loans Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	$ 44	$ 2
Construction of commercial
Commercial real estate	$ 44	$ 2
Farm land
Vacant land
Real estate secured	$ 44	$ 2
Commercial and industrial	$ 6
Municipal
Consumer
Unallocated allowance
Totals	$ 50	$ 2
Acquired Loans - Total portfolio Loans
Residential 1-4 family	7,443	7,799
Residential 5+ multifamily	$ 6,050	$ 6,136
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	$ 13,493	$ 13,935
Commercial	86,500	88,829
Construction of commercial	4,903	4,874
Commercial real estate	$ 91,403	$ 93,703
Farm land
Vacant land
Real estate secured	$ 104,896	$ 107,638
Commercial and industrial	$ 35,517	$ 46,764
Municipal
Consumer	$ 76	$ 77
Unallocated allowance
Totals	$ 140,489	$ 154,479
Acquired Loans - Total portfolio Allowance
Residential 1-4 family	$ 69	$ 79
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	$ 69	$ 79
Commercial	90	128
Construction of commercial	4	4
Commercial real estate	$ 94	$ 132
Farm land
Vacant land
Real estate secured	$ 163	$ 211
Commercial and industrial	$ 141	$ 24
Municipal
Consumer
Unallocated allowance
Totals	$ 304	$ 235

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Collectively evaluated Loans
Performing loans	$ 569,493	$ 527,905
Potential problem loans	$ 3,568	$ 1,223
Impaired loans
Unallocated allowance
Totals	$ 573,061	$ 529,128
Business Activities Loans - Collectively evaluated Allowance
Performing loans	4,429	4,110
Potential problem loans	$ 135	$ 44
Impaired loans
Unallocated allowance	$ 412	$ 482
Totals	$ 4,976	$ 4,636
Business Activities Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	$ 19,939	$ 19,938
Unallocated allowance
Totals	$ 19,939	$ 19,938
Business Activities Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 597	$ 845
Unallocated allowance
Totals	$ 597	$ 845
Business Activities Loans - Total portfolio Loans
Performing loans	569,493	527,905
Potential problem loans	3,568	1,223
Impaired loans	$ 19,939	$ 19,938
Unallocated allowance
Totals	$ 593,000	$ 549,066
Business Activities Loans - Total portfolio Allowance
Performing loans	4,429	4,110
Potential problem loans	135	44
Impaired loans	597	845
Unallocated allowance	412	482
Totals	5,573	5,481
Acquired Loans - Collectively evaluated Loans
Performing loans	133,381	148,580
Potential problem loans	$ 2,949	$ 2,119
Impaired loans
Unallocated allowance
Totals	$ 136,330	$ 150,699
Acquired Loans - Collectively evaluated Allowance
Performing loans	51	46
Potential problem loans	$ 42	$ 2
Impaired loans
Unallocated allowance
Totals	$ 93	$ 48
Acquired Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	$ 4,159	$ 3,780
Unallocated allowance
Totals	$ 4,159	$ 3,780
Acquired Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	$ 211	$ 187
Unallocated allowance
Totals	$ 211	$ 187
Acquired Loans - Total portfolio Loans
Performing loans	133,381	148,580
Potential problem loans	2,949	2,119
Impaired loans	$ 4,159	$ 3,780
Unallocated allowance
Totals	$ 140,489	$ 154,479
Acquired Loans - Total portfolio Allowance
Performing loans	51	46
Potential problem loans	42	2
Impaired loans	$ 211	$ 187
Unallocated allowance
Totals	$ 304	$ 235

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book
Residential 1-4 family	$ 7,155	$ 7,482
Home equity lines of credit	488	535
Residential real estate	7,643	8,017
Commercial	3,095	3,131
Commercial construction	120	122
Farm land	11	733
Vacant land	2,870	2,870
Real estate secured	13,739	14,873
Commercial and industrial	$ 94	$ 95
Consumer
Totals	$ 13,833	$ 14,968
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note
Residential 1-4 family	7,787	8,094
Home equity lines of credit	513	659
Residential real estate	8,300	8,753
Commercial	3,412	3,405
Commercial construction	126	128
Farm land	13	773
Vacant land	3,859	3,836
Real estate secured	15,710	16,895
Commercial and industrial	$ 98	$ 98
Consumer
Totals	$ 15,808	$ 16,993
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	8,032	6,449
Home equity lines of credit	503	260
Residential real estate	8,535	6,709
Commercial	3,058	2,850
Commercial construction	121	9
Farm land	372	400
Vacant land	2,870	3,015
Real estate secured	14,956	12,983
Commercial and industrial	$ 95	$ 145
Consumer
Totals	$ 15,051	$ 13,128
Business Activities Loans - Impaired loans with specific allowance - Specific allowance
Residential 1-4 family	474	610
Home equity lines of credit	21	68
Residential real estate	495	678
Commercial	80	113
Commercial construction	1	1
Farm land	1	14
Vacant land	19	29
Real estate secured	596	835
Commercial and industrial	$ 1	$ 10
Consumer
Totals	$ 597	$ 845
Business Activities Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family	$ 18	167
Home equity lines of credit		9
Residential real estate	$ 18	176
Commercial	13	123
Commercial construction	$ 2	7
Farm land		25
Vacant land	$ 1	3
Real estate secured	$ 34	334
Commercial and industrial		$ 4
Consumer
Totals	$ 34	$ 338
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential 1-4 family	3,009	2,628
Home equity lines of credit	330	184
Residential real estate	3,339	2,812
Commercial	$ 1,136	$ 1,142
Commercial construction
Farm land	$ 1,013	$ 298
Vacant land	203	207
Real estate secured	5,691	4,459
Commercial and industrial	$ 415	431
Consumer		80
Totals	$ 6,106	4,970
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential 1-4 family	3,230	2,770
Home equity lines of credit	347	199
Residential real estate	3,577	2,969
Commercial	$ 1,403	$ 1,393
Commercial construction
Farm land	$ 1,109	$ 352
Vacant land	238	241
Real estate secured	6,327	4,955
Commercial and industrial	$ 468	481
Consumer		108
Totals	$ 6,795	5,544
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	2,740	3,089
Home equity lines of credit	296	423
Residential real estate	3,036	3,512
Commercial	$ 1,195	1,624
Commercial construction		116
Farm land	$ 656	461
Vacant land	205	72
Real estate secured	5,092	5,785
Commercial and industrial	421	383
Consumer	20	12
Totals	5,533	6,180
Business Activities Loans - Impaired loans with no specific allowance - Income recognized
Residential 1-4 family	$ 20	98
Home equity lines of credit		2
Residential real estate	$ 20	100
Commercial	$ 7	$ 49
Commercial construction
Farm land
Vacant land		$ 9
Real estate secured	$ 27	158
Commercial and industrial	$ 1	22
Consumer		1
Totals	$ 28	181
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book
Residential 1-4 family	$ 602	$ 599
Home equity lines of credit
Residential real estate	$ 602	$ 599
Commercial	$ 331	$ 675
Commercial construction
Farm land
Vacant land
Real estate secured	$ 933	$ 1,274
Commercial and industrial	$ 332
Consumer
Totals	$ 1,265	$ 1,274
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note
Residential 1-4 family	$ 716	$ 716
Home equity lines of credit
Residential real estate	$ 716	$ 716
Commercial	$ 723	$ 826
Commercial construction
Farm land
Vacant land
Real estate secured	$ 1,439	$ 1,542
Commercial and industrial	$ 439
Consumer
Totals	$ 1,878	$ 1,542
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	$ 645	$ 273
Home equity lines of credit
Residential real estate	$ 645	$ 273
Commercial	$ 547	$ 698
Commercial construction
Farm land
Vacant land
Real estate secured	$ 1,192	$ 971
Commercial and industrial	$ 83	$ 6
Consumer
Totals	$ 1,275	$ 977
Acquired Loans - Impaired loans with specific allowance - Specific allowance
Residential 1-4 family	$ 69	$ 79
Home equity lines of credit
Residential real estate	$ 69	$ 79
Commercial	$ 27	$ 107
Commercial construction
Farm land
Vacant land
Real estate secured	$ 96	$ 186
Commercial and industrial	$ 114
Consumer
Totals	$ 210	$ 186
Acquired Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	$ 4	$ 34
Commercial construction
Farm land
Vacant land
Real estate secured	$ 4	$ 34
Commercial and industrial
Consumer
Totals	$ 4	$ 34
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential 1-4 family	$ 300	$ 177
Home equity lines of credit
Residential real estate	$ 300	$ 177
Commercial	2,255	2,067
Commercial construction	$ 258	$ 262
Farm land
Vacant land
Real estate secured	$ 2,813	$ 2,506
Commercial and industrial
Consumer
Totals	$ 2,813	$ 2,506
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential 1-4 family	$ 300	$ 177
Home equity lines of credit
Residential real estate	$ 300	$ 177
Commercial	2,853	2,843
Commercial construction	$ 271	$ 273
Farm land
Vacant land
Real estate secured	$ 3,424	$ 3,293
Commercial and industrial		$ 4
Consumer
Totals	$ 3,424	$ 3,297
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	$ 300	$ 376
Home equity lines of credit
Residential real estate	$ 263	$ 376
Commercial	2,176	2,011
Commercial construction	$ 259	$ 167
Farm land
Vacant land
Real estate secured	$ 2,698	$ 2,554
Commercial and industrial
Consumer
Totals	$ 2,698	$ 2,554
Acquired Loans - Impaired loans with no specific allowance - Income recognized
Residential 1-4 family		$ 7
Home equity lines of credit
Residential real estate		$ 7
Commercial	$ 13	32
Commercial construction		$ 22
Farm land
Vacant land
Real estate secured	$ 13	$ 61
Commercial and industrial
Consumer
Totals	$ 13	$ 61

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Loans Details Narrative
Interest on non-accrual loans that would have been recorded as additional interest income had the loans been current in accordance with their original terms	$ 365	$ 135

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	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015
Residential mortgage loans serviced for others	$ 129,194	$ 137,186
Fair value of mortgage servicing rights	$ 1,037		$ 1,355

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Mortgage Servicing Rights
Balance, beginning of period		$ 486	$ 694
Originated		20	62
Amortization (1)	[1]	(51)	(119)
Balance, end of period		455	$ 637
Valuation Allowance
Balance, beginning of period		(3)
Increase in impairment reserve (1)		(20)	$ (9)
Balance, end of period		(23)	(9)
Mortgage servicing rights, net		$ 432	$ 628
[1]	(1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net, in the consolidated statements of income.

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Securities available-for-sale (at fair value)	$ 71,444	$ 67,750
Loans receivable	162,284	153,269
Total pledged assets	$ 233,728	$ 221,019

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Mar. 31, 2016USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 64,500
Securities pledged to secure repurchase agreements	6,800
Securities pledged to secure FHLBB advances	$ 100

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of earnings per share (Details) - Calculation of earnings per share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 1,512	$ 2,234
Less: Preferred stock dividends declared		(40)
Net income available to common shareholders	$ 1,512	2,194
Less: Undistributed earnings allocated to participating securities	(13)	(19)
Net income allocated to common stock	1,499	2,175
Weighted-average common shares issued	2,747	2,723
Less: Unvested restricted stock awards	(24)	(24)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,723	2,699
Add: Dilutive effect of stock options	18	17
Weighted-average common shares outstanding used to calculate diluted earnings per common share	$ 2,741	$ 2,716
Earnings per common share (basic)	$ 0.55	$ 0.81
Earnings per common share (diluted)	$ 0.55	$ 0.80

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 93,065	$ 92,030
Actual - Ratio	12.92%	13.51%
For Capital Adequacy - Amount	$ 57,633	$ 54,509
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	$ 77,000	$ 76,120
Actual - Ratio	10.69%	11.17%
For Capital Adequacy - Amount	$ 43,225	$ 40,878
For Capital Adequacy - Ratio	6.00%	6.00%
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	$ 77,000	$ 76,120
Actual - Ratio	10.69%	11.17%
For Capital Adequacy - Amount	$ 40,429	$ 30,659
For Capital Adequacy - Ratio	4.50%	4.50%
To Be Well Capitalized - Amount
To Be Well Capitalized - Ratio
Tier 1 Capital (to average assets)
Actual - Amount	$ 77,000	$ 76,120
Actual - Ratio	8.57%	8.56%
For Capital Adequacy - Amount	$ 35,937	$ 36,102
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	$ 90,245
Actual - Ratio		13.10%	12.53%
For Capital Adequacy - Amount		$ 54,504	$ 57,633
For Capital Adequacy - Ratio		8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 68,131	$ 72,042
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	$ 84,180
Actual - Ratio		12.23%	11.68%
For Capital Adequacy - Amount		$ 40,878	$ 43,225
For Capital Adequacy - Ratio		6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 54,504	$ 57,633
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		8.00%	8.00%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount		$ 83,340	$ 84,180
Actual - Ratio		12.23%	11.68%
For Capital Adequacy - Amount		$ 30,659	$ 32,419
For Capital Adequacy - Ratio		4.50%	4.50%
To Be Well Capitalized - Amount		$ 44,285	$ 46,827
To Be Well Capitalized - Ratio		6.50%	6.50%
Tier 1 Capital (to average assets)
Actual - Amount		$ 83,340	$ 84,180
Actual - Ratio		9.37%	9.51%
For Capital Adequacy - Amount		$ 35,593	$ 35,403
For Capital Adequacy - Ratio		4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 44,491	$ 39,828
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		5.00%	5.00%

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - Shareholders' Equity Details - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Aug. 31, 2011
Series B Preferred Stock issued to Treasury under SBLF program		$ 16,000
Completed offering of unsecured fixed-to-floating rate subordinated notes	$ 10,000
Senior Non-Cumulative Perpetual Preferred Stock redeemed	$ 16,000

BENEFITS (Details Narrative)

BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Feb. 16, 2016	Jan. 29, 2016	Jan. 26, 2016	Sep. 28, 2015	Mar. 27, 2015	Feb. 25, 2015	Feb. 17, 2015
Compensation and Retirement Disclosure [Abstract]
401(k) Plan contribution expense	$ 216	$ 162
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	19	18
Excess assets distributed to 401k and ESOP for future allocations to employees			$ 1,018
Employee Stock Ownership Plan (ESOP)
ESOP expense	36	96
Other Retirement Plans
Discretionary contribution to Executives' account	11	33
Grants of Restricted Stock and Options
Stock options exercised by former Riverside Bank executives, shares				1,350		2,700	2,700		5,400	1,350
Stock options exercised by former Riverside Bank executives, price per share				$ 21.48		$ 21.48	$ 21.48		$ 18.52	$ 18.52
Shares of restricted stock granted pursuant to 2011 Long Term Incentive Plan					15,800			1,000
Fair value of the stock as of the grant date					$ 466			$ 29
Expense related to grants of restricted stock and options	47	71
Unrecognized compensation cost relating to awards	$ 275	$ 271
Forfeiture of restricted common stock, shares

ACCUMULATED OTHER COMPREHENSI48

ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of accumulated other comprehensive income (Details) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Unrealized gains on securities available-for-sale, net of tax	$ 1,079	$ 1,125
Accumulated other comprehensive income, net	$ 1,079	$ 1,125

FAIR VALUE OF ASSETS AND LIAB49

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
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	$ 235	$ 246
Securities available-for-sale	$ 235	$ 246
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Mortgage servicing rights
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
U.S. Treasury notes	$ 7,529	$ 2,541
U.S. Government agency notes		498
Municipal bonds	25,388	30,385
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	35,802	32,202
Collateralized mortgage obligations: U.S. Government agencies	1,862	2,014
Collateralized mortgage obligations: Non-agency	4,568	4,948
SBA bonds	2,871	3,096
CRA mutual funds	$ 779	$ 764
Preferred stock
Securities available-for-sale	$ 78,799	$ 76,448
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Mortgage servicing rights
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	$ 14,290	$ 15,211
Mortgage servicing rights	1,037	1,315
Assets at fair value
Assets at fair value on a recurring basis
U.S. Treasury notes	7,529	2,541
U.S. Government agency notes		498
Municipal bonds	25,388	30,385
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	35,802	32,202
Collateralized mortgage obligations: U.S. Government agencies	1,862	2,014
Collateralized mortgage obligations: Non-agency	4,568	4,948
SBA bonds	2,871	3,096
CRA mutual funds	779	764
Preferred stock	235	246
Securities available-for-sale	79,034	76,694
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	14,290	15,211
Mortgage servicing rights	$ 1,037	$ 1,315

FAIR VALUE OF ASSETS AND LIAB50

FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Carrying value
Financial Assets
Cash and cash equivalents	$ 31,503	$ 62,118
Securities available-for-sale	79,034	76,694
Federal Home Loan Bank stock	3,117	3,176
Loans held-for-sale	183	763
Loans receivable, net	728,845	699,018
Accrued interest receivable	2,451	2,307
Cash surrender value of life insurance	13,775	13,685
Financial Liabilities
Demand (non-interest-bearing)	192,184	201,340
Demand (interest-bearing)	122,814	125,465
Money market	192,357	183,783
Savings and other	126,214	119,651
Certificates of deposit	122,089	124,294
Deposits	755,658	754,533
Repurchase agreements	2,620	3,914
FHLBB advances	27,031	26,979
Subordinated debt	9,770	9,764
Note payable	365	376
Capital lease liability	420	422
Accrued interest payable	120	150
Estimated fair value
Financial Assets
Cash and cash equivalents	31,503	62,118
Securities available-for-sale	79,034	76,694
Federal Home Loan Bank stock	3,117	3,176
Loans held-for-sale	183	778
Loans receivable, net	732,699	707,154
Accrued interest receivable	2,451	2,307
Cash surrender value of life insurance	13,775	13,685
Financial Liabilities
Demand (non-interest-bearing)	192,184	201,340
Demand (interest-bearing)	122,814	125,465
Money market	192,357	183,783
Savings and other	126,214	119,651
Certificates of deposit	122,952	125,437
Deposits	756,521	755,676
Repurchase agreements	2,620	3,914
FHLBB advances	29,046	28,559
Subordinated debt	10,190	9,764
Note payable	404	405
Capital lease liability	895	870
Accrued interest payable	120	150
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	31,503	62,118
Securities available-for-sale	$ 235	$ 246
Federal Home Loan Bank stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance	$ 13,775	$ 13,685
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	$ 78,799	$ 76,448
Federal Home Loan Bank stock	$ 3,117	$ 3,176
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	$ 183	$ 788
Loans receivable, net	732,699	707,154
Accrued interest receivable	$ 2,451	$ 2,307
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)	$ 192,184	$ 201,340
Demand (interest-bearing)	122,814	125,465
Money market	192,357	183,783
Savings and other	126,214	119,651
Certificates of deposit	122,952	125,437
Deposits	756,521	755,676
Repurchase agreements	2,620	3,914
FHLBB advances	29,046	28,559
Subordinated debt	10,190	9,764
Note payable	404	405
Capital lease liability	895	870
Accrued interest payable	$ 120	$ 150