Salisbury Bancorp (SAL) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 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	Jun. 30, 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		2,758,186
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks		$ 10,961	$ 14,891
Interest bearing demand deposits with other banks		20,537	47,227
Total cash and cash equivalents		31,498	62,118
Securities
Available-for-sale at fair value		80,438	76,694
Federal Home Loan Bank of Boston stock at cost		3,436	3,176
Loans held-for-sale			763
Loans receivable, net (allowance for loan losses: $5,718 and $5,716)		749,523	699,018
Bank premises and equipment, net		14,507	14,307
Goodwill		12,552	12,552
Intangible assets (net of accumulated amortization: $3,216 and $2,909)		2,031	2,338
Accrued interest receivable		2,217	2,307
Cash surrender value of life insurance policies		13,862	13,685
Deferred taxes		1,998	1,989
Other assets		1,432	2,245
Total Assets		913,494	891,192
Deposits
Demand (non-interest bearing)		189,182	201,340
Demand (interest bearing)		120,142	125,465
Money market		197,869	183,783
Savings and other		124,019	119,651
Certificates of deposit		123,259	124,294
Total deposits		754,471	754,533
Repurchase agreements		3,355	3,914
Federal Home Loan Bank of Boston advances		47,083	26,979
Subordinated debt	[1]	9,776	9,764
Note payable		358	376
Capital lease liability		420	422
Accrued interest and other liabilities		5,447	4,630
Total Liabilities		820,910	800,618
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,758,186 and 2,733,576		276	273
Paid-in capital		42,056	41,364
Retained earnings		49,627	47,922
Unearned compensation - restricted stock awards		(483)	(110)
Accumulated other comprehensive income		1,108	1,125
Total Shareholders' Equity		92,584	90,574
Total Liabilities and Shareholders' Equity		$ 913,494	$ 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	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Allowance for loan losses, loans receivable	$ 5,718	$ 5,716
Accumulated amortization, intangible assets	$ 3,216	$ 2,909
Shareholders' Equity
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,758,186	2,733,576

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest and dividend income
Interest and fees on loans	$ 7,930	$ 7,850	$ 15,855	$ 15,772
Interest on debt securities
Taxable	286	298	579	624
Tax exempt	237	357	523	747
Other interest and dividends	60	40	134	73
Total interest and dividend income	8,513	8,545	17,091	17,216
Interest expense
Deposits	529	453	1,037	897
Repurchase agreements	1	2	2	3
Capital lease	17	17	35	35
Note payable	6		11
Subordinated debt	156		312
Federal Home Loan Bank of Boston advances	245	280	476	562
Total interest expense	954	752	1,873	1,497
Net interest and dividend income	7,559	7,793	15,218	15,719
Provision (benefit) for loan losses	525	196	988	(4)
Net interest and dividend income after provision (benefit) for loan losses	7,034	7,597	14,230	15,723
Non-interest income
Trust and wealth advisory	884	890	1,668	1,712
Service charges and fees	785	778	1,515	1,509
Gains on sales of mortgage loans, net	57	87	96	181
Mortgage servicing, net	21	20	33	(20)
Gains on sales and calls of available-for-sale securities, net	146	11	148	186
Other	116	114	233	228
Total non-interest income	2,009	1,900	3,693	3,796
Non-interest expense
Salaries	2,687	2,449	5,261	4,989
Employee benefits	910	960	1,998	1,965
Premises and equipment	844	913	1,739	1,821
Data processing	449	398	896	872
Professional fees	564	593	944	1,243
Collections, OREO and loan related	125	228	311	472
FDIC insurance	176	133	310	331
Marketing and community support	180	180	380	290
Amortization of core deposit intangibles	152	164	307	333
Other	552	522	1,334	1,059
Total non-interest expense	6,639	6,540	13,480	13,375
Income before income taxes	2,404	2,957	4,443	6,144
Income tax provision	669	885	1,196	1,838
Net income	1,735	2,072	3,247	4,306
Net income available to common shareholders	$ 1,735	$ 2,032	$ 3,247	$ 4,226
Basic earnings per common share	$ .63	$ .74	$ 1.18	$ 1.55
Weighted average common shares outstanding, to calculate basic earnings per share	2,735	2,706	2,729	2,703
Diluted earnings per common share	$ .63	$ .74	$ 1.17	$ 1.54
Weighted average common shares outstanding, to calculate diluted earnings per share	2,750	2,724	2,745	2,720
Common dividends per share	$ .28	$ .28	$ .56	$ .56

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income		$ 1,735	$ 2,072	$ 3,247	$ 4,306
Other comprehensive loss
Net unrealized gains (losses) on securities available-for-sale		190	(739)	122	(932)
Reclassification of net realized gains in net income	[1]	(146)	(11)	(148)	(186)
Unrealized gains (losses) on securities available-for-sale		44	(750)	(26)	(1,118)
Income tax (expense) benefit		(15)	252	9	380
Unrealized gains (losses) on securities available-for-sale, net of tax		29	(498)	(17)	(738)
Comprehensive income		$ 1,764	$ 1,574	$ 3,230	$ 3,568
[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				4,306			4,306
Other comprehensive loss, net of tax						(738)	(738)
Common stock dividends declared				(1,525)			(1,525)
Preferred stock dividends declared				(80)			(80)
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
Issuance of common stock for directors, amount			81				81
Issuance of common stock for directors, shares	2,660
Stock based compensation - restricted stock awards					84		84
Balance - Ending, amount at Jun. 30, 2015	$ 273	16,000	41,312	45,378	(229)	1,370	104,104
Balance - Ending, shares at Jun. 30, 2015	2,731,176
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				3,247			3,247
Other comprehensive loss, net of tax						(17)	(17)
Common stock dividends declared				(1,542)			(1,542)
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
Issuance of common stock for directors, amount	$ 1		141				142
Issuance of common stock for directors, shares	4,760
Stock based compensation - restricted stock awards					93		93
Balance - Ending, amount at Jun. 30, 2016	$ 276		$ 42,056	$ 49,627	$ (483)	$ 1,108	$ 92,584
Balance - Ending, shares at Jun. 30, 2016	2,758,186

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net income	$ 3,247	$ 4,306
(Accretion), amortization and depreciation:
Securities	133	111
Bank premises and equipment	604	610
Core deposit intangible	307	333
Mortgage servicing rights	116	197
Fair value adjustment on loans	(988)	(1,305)
Fair value adjustment on deposits	(72)	(258)
(Gains) and losses, including write-downs
Gains on calls of securities available-for-sale, net	(2)	(34)
Gains on sales of securities, available-for-sale, net	(146)	(152)
Gains on sales of loans, excluding capitalized servicing rights	(96)	(78)
Write-downs of other real estate owned		230
Loss on sale/disposals of premises and equipment	13	45
Provision (benefit) for loan losses	988	(4)
Proceeds from loans sold	2,048	5,146
Loans originated for sale	(1,189)	(4,800)
Increase in deferred loan origination costs, net	(81)	(13)
Mortgage servicing rights originated	(45)	(102)
Increase in mortgage servicing rights impairment reserve	21	3
Decrease in interest receivable	90	42
Deferred tax benefit		(26)
Decrease in prepaid expenses	64	116
Increase in cash surrender value of life insurance policies	(177)	(185)
Decrease (increase) in income tax receivable	414	(91)
Decrease in other assets	234	129
Decrease in accrued expenses	(32)	(146)
Modification fees on Federal Home Loan Bank advances	116
Amortization of debt issuance costs	12
Decrease in interest payable	(32)	(8)
Increase in other liabilities	890	103
Stock based compensation - restricted stock awards	93	84
Net cash provided by operating activities	6,530	4,253
Investing Activities
Purchase of Federal Home Loan Bank of Boston stock	(319)
Redemption of Federal Home Loan Bank of Boston stock	59
Purchases of securities available-for-sale	(32,536)	(4,319)
Proceeds from sales of securities available-for-sale	3,800	3,861
Proceeds from calls of securities available-for-sale	9,661	6,480
Proceeds from maturities of securities available-for-sale	15,320	4,830
Loan originations and principle collections, net	(50,488)	(3,652)
Recoveries of loans previously charged off	64	477
Proceeds from sales of other real estate owned		605
Capital expenditures	(817)	(244)
Net cash (used in) provided by investing activities	(55,256)	8,038
Financing Activities
Increase in deposit transaction accounts, net	973	12,284
Decrease in time deposits, net	(963)	(6,718)
Decrease in securities sold under agreements to repurchase, net	(559)	(1,392)
Advances from Federal Home Loan Bank of Boston	19,994
Principal payments on Federal Home Loan Bank of Boston advances	(6)	(780)
Principal payments on note payable	(18)
Decrease in capital lease obligation	(2)	(1)
Stock options exercised	87	126
Issuance of shares for director fees	142	81
Issuance of shares for executives		29
Common stock dividends paid	(1,542)	(1,525)
Series B preferred stock dividends paid		(80)
Net cash provided by financing activities	18,106	2,024
Net (decrease) increase in cash and cash equivalents	(30,620)	14,315
Cash and cash equivalents, beginning of period	62,118	36,105
Cash and cash equivalents, end of period	31,498	50,420
Cash paid during year
Interest	1,977	1,763
Income taxes	782	1,955
Non-cash investing and financing activities
Transfer from loans to other real estate owned		$ 101

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 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 consolidated financial position of Salisbury and the consolidated 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 June 30, 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 Financial Accounting Standard Board (FASB) issued Accounting Standards Update (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). . In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): "Improvements to Employee Share-Based Payment Accounting.” In June 2016 the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Salisbury is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value June 30, 2016 Available-for-sale U.S. Treasury notes $ 9,998 $ 17 $ — $ 10,015 Municipal bonds 20,459 490 — 20,949 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 38,220 430 (9 ) 38,641 Collateralized mortgage obligations U.S. Government agencies 1,732 8 — 1,740 Non-agency 3,928 395 (11 ) 4,312 SBA bonds 2,628 26 — 2,654 CRA mutual funds 774 14 — 788 Corporate bonds 1,000 — (3 ) 997 Preferred stock 20 322 — 342 Total securities available-for-sale $ 78,759 $ 1,702 $ (23 ) $ 80,438 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,436 $ — $ — $ 3,436 (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury sold $3.6 million in securities available-for-sale during the six month period ended June 30, 2016, and sold $3.7 million in securities available-for-sale during the six month period ended June 30, 2015. 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 income, 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 June 30, 2016 Available-for-sale Mortgage-backed securities $ 255 $ (3 ) $ 218 $ (6 ) $ 473 $ (9 ) Collateralized mortgage obligations: Non-agency 323 (2 ) 192 (4 ) 515 (6 ) Corporate bonds 498 (3 ) — — 498 (3 ) Total temporarily impaired securities 1,076 (8 ) 410 (10 ) 1,486 (18 ) Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 207 (5 ) — — 207 (5 ) Total temporarily impaired and other-than-temporarily impaired securities $ 1,283 $ (13 ) $ 410 $ (10 ) $ 1,693 $ (23 ) 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 June 30, 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 June 30, 2016. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at June 30, 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 June 30, 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 basis. Corporate Bonds: There is one corporate bond, which was purchased in June 2016, with an unrealized loss due to changes in interest rates. No loss on this bond is currently expected if held to maturity. 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: Six months ended June 30 (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 June 30, 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	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: June 30, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 280,253 $ 7,249 $ 287,502 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 7,230 5,960 13,190 6,411 6,136 12,547 Construction of residential 1-4 family 10,343 — 10,343 7,998 — 7,998 Home equity lines of credit 34,767 — 34,767 35,017 — 35,017 Residential real estate 332,593 13,209 345,802 310,921 13,935 324,856 Commercial 150,669 84,115 234,784 129,446 88,829 218,275 Construction of commercial 9,350 4,110 13,460 6,525 4,874 11,399 Commercial real estate 160,019 88,225 248,244 135,971 93,703 229,674 Farm land 4,036 — 4,036 3,193 — 3,193 Vacant land 8,149 — 8,149 8,563 — 8,563 Real estate secured 504,797 101,434 606,231 458,648 107,638 566,286 Commercial and industrial 101,109 31,941 133,050 74,657 46,764 121,421 Municipal 9,005 — 9,005 9,566 — 9,566 Consumer 5,617 68 5,685 6,195 77 6,272 Loans receivable, gross 620,528 133,443 753,971 549,066 154,479 703,545 Deferred loan origination costs, net 1,270 — 1,270 1,189 — 1,189 Allowance for loan losses (5,478 ) (240 ) (5,718 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 616,320 $ 133,203 $ 749,523 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ — $ — $ — $ 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: Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2016 Residential 1-4 family $ 269,086 $ 6,418 $ 4,659 $ 90 $ — $ 280,253 Residential 5+ multifamily 5,219 1,922 89 — — 7,230 Construction of residential 1-4 family 10,343 — — — — 10,343 Home equity credit 33,341 573 853 — — 34,767 Residential real estate 317,989 8,913 5,601 90 — 332,593 Commercial 139,570 3,707 7,392 — — 150,669 Construction of commercial 9,232 — 118 — — 9,350 Commercial real estate 148,802 3,707 7,510 — — 160,019 Farm land 3,018 — 1,018 — — 4,036 Vacant land 5,232 65 2,852 — — 8,149 Real estate secured 475,041 12,685 16,981 90 — 504,797 Commercial and industrial 97,051 3,402 654 2 — 101,109 Municipal 9,005 — — — — 9,005 Consumer 5,582 34 1 — — 5,617 Loans receivable, gross $ 586,679 $ 16,121 $ 17,636 $ 92 $ — $ 620,528 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2016 Residential 1-4 family $ 6,470 $ 1 $ 778 $ — $ — $ 7,249 Residential 5+ multifamily 5,837 — 123 — — 5,960 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 12,307 1 901 — — 13,209 Commercial 76,876 2,631 4,608 — — 84,115 Construction of commercial 3,852 — 258 — — 4,110 Commercial real estate 80,728 2,631 4,866 — — 88,225 Farm land — — — — — — Vacant land — — — — — — Real estate secured 93,035 2,632 5,767 — — 101,434 Commercial and industrial 31,652 233 56 — — 31,941 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 124,752 $ 2,868 $ 5,823 $ — $ — $ 133,443 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 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: 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 June 30, 2016 Residential 1-4 family $ 272,795 $ 2,791 $ 1,102 $ 521 $ 605 $ 2,439 $ 4,667 $ — $ 3,801 Residential 5+ multifamily 7,086 54 — — 1 89 90 — — Construction of residential 1-4 family 10,343 — — — — — — — — Home equity lines of credit 33,739 345 453 60 10 160 683 10 693 Residential real estate 323,963 3,190 1,555 581 616 2,688 5,440 10 4,494 Commercial 148,166 918 20 254 288 1,023 1,585 288 2,869 Construction of commercial 9,350 — — — — — — — — Commercial real estate 157,516 918 20 254 288 1,023 1,585 288 2,869 Farm land 3,027 — 286 — — 723 1,009 — 1,018 Vacant land 5,318 — 8 — — 2,823 2,831 — 2,852 Real estate secured 489,824 4,108 1,869 835 904 7,257 10,865 298 11,233 Commercial and industrial 100,049 826 106 106 4 18 234 — 25 Municipal 9,005 — — — — — — — — Consumer 5,565 37 12 3 — — 15 — — Loans receivable, gross $ 604,443 $ 4,971 $ 1,987 $ 944 $ 908 $ 7,275 $ 11,114 $ 298 $ 11,258 Acquired Loans June 30, 2016 Residential 1-4 family $ 6,379 $ 91 $ — $ — $ — $ 779 $ 779 $ — $ 902 Residential 5+ multifamily 5,836 — — — — 124 124 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,215 91 — — — 903 903 — 902 Commercial 78,259 2,753 — 1,241 321 1,541 3,103 322 1,541 Construction of commercial 3,852 — — — — 258 258 258 Commercial real estate 82,111 2,753 — 1,241 321 1,799 3,361 322 1,799 Farm land — — — — — — — — Vacant land — — — — — — — — — Real estate secured 94,326 2,844 — 1,241 321 2,702 4,264 322 2,701 Commercial and industrial 31,484 271 136 50 — — 186 — — Municipal — — — — — — — — Consumer 53 15 — — — — — — Loans receivable, gross $ 125,863 $ 3,130 $ 136 $ 1,291 $ 321 $ 2,702 $ 4,450 $ 322 $ 2,701 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 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 December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038 Interest on non-accrual loans that would have been recorded as additional interest income for the six months ended June 30, 2016 and 2015 had the loans been current in accordance with their original terms totaled $578,000 and $511,000, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Six months ended June 30, 2016 June 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 3 $ 316 $ 316 1 $ 875 $ 875 Commercial real estate 1 1,863 1,863 1 184 184 Home equity lines of credit — — — — — — Troubled debt restructurings 4 $ 2,179 $ 2,179 2 $ 1,059 $ 1,059 Rate reduction and term extension 2 $ 262 $ 262 1 $ 184 $ 184 Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation 1 1,863 1,863 — — — Term extension 1 54 54 1 875 875 Troubled debt restructurings 4 $ 2,179 $ 2,179 2 $ 1,059 $ 1,059 Acquired Loans Six months ended June 30, 2016 June 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — — $ — $ — Commercial real estate — — — — — — Home equity lines of credit — — — — — — Troubled debt restructurings — $ — $ — — $ — $ — Rate reduction and term extension — $ — $ — — $ — $ — Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Term extension — — — — — — Troubled debt restructurings — $ — $ — — $ — $ — Four loans were modified in troubled debt restructurings during 2016, none of which were past due at June 30, 2016. As of June 30, 2016, there were no commitments to lend additional amounts on troubled debt restructurings. As of June 30, 2016, the Bank had $2,736,000 in loans collateralized by residential real estate property in the process of foreclosure. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Business Activities Loans Acquired Loans (in thousands) Three months ended June 30, 2016 Three months ended June 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,458 $ 59 $ (287 ) $ 18 $ 2,248 $ 69 $ — $ — $ — $ 69 Commercial 1,585 149 — — 1,734 94 40 (1 ) 1 134 Land 164 25 (23 ) — 166 — — — — — Real estate 4,207 233 (310 ) 18 4,148 163 40 (1 ) 1 203 Commercial and industrial 781 60 — 10 851 141 299 (414 ) 11 37 Municipal 59 (3 ) — — 56 — — — — — Consumer 114 (26 ) (7 ) 8 89 — — — — — Unallocated 412 (78 ) — — 334 — — — — — Totals $ 5,573 $ 186 $ (317 ) $ 36 $ 5,478 $ 304 $ 339 $ (415 ) $ 12 $ 240 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2016 Six months ended June 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 146 $ (394 ) $ 19 $ 2,248 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 302 (35 ) 1 1,734 132 96 (98 ) 4 134 Land 188 24 (46 ) — 166 — — — — — Real estate 4,131 472 (475 ) 20 4,148 211 86 (98 ) 4 203 Commercial and industrial 683 185 (32 ) 15 851 24 413 (415 ) 15 37 Municipal 61 (5 ) — — 56 — — — — — Consumer 124 (15 ) (30 ) 10 89 — — — — — Unallocated 482 (148 ) — — 334 — — — — — Totals $ 5,481 $ 489 $ (537 ) $ 45 $ 5,478 $ 235 $ 499 $ (513 ) $ 19 $ 240 Business Activities Loans Acquired Loans (in thousands) Three months ended June 30, 2015 Three months ended June 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,386 $ (52 ) $ (188 ) $ 1 $ 2,147 $ — $ 15 $ — $ — $ 15 Commercial 1,355 116 (132 ) — 1,339 18 59 — — 77 Land 176 6 — — 182 — — — — — Real estate 3,917 70 (320 ) 1 3,668 18 74 — — 92 Commercial and industrial 637 52 — 2 691 45 (3 ) — 10 52 Municipal 61 3 — — 64 — — — — — Consumer 120 15 (16 ) 4 123 — — — — — Unallocated 384 (15 ) — — 369 — — — — — Totals $ 5,119 $ 125 $ (336 ) $ 7 $ 4,915 $ 63 $ 71 $ — $ 10 $ 144 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2015 Six months ended June 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 320 $ (481 ) $ 2 $ 2,147 $ — $ 15 $ — $ — $ 15 Commercial 1,697 (154 ) (204 ) — 1,339 7 70 — — 77 Land 164 18 — — 182 — — — — — Real estate 4,167 184 (685 ) 2 3,668 7 85 — — 92 Commercial and industrial 583 (288 ) (56 ) 452 691 14 21 — 17 52 Municipal 61 3 — — 64 — — — — — Consumer 117 31 (31 ) 6 123 — — — — — Unallocated 409 (40 ) — — 369 — — — — — Totals $ 5,337 $ (110 ) $ (772 ) $ 460 $ 4,915 $ 21 $ 106 $ — $ 17 $ 144 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 June 30, 2016 Residential 1-4 family $ 273,585 $ 1,574 $ 6,668 $ 230 $ 280,253 $ 1,804 Residential 5+ multifamily 5,471 39 1,759 — 7,230 39 Construction of residential 1-4 family 10,343 77 — — 10,343 77 Home equity lines of credit 33,958 312 809 16 34,767 328 Residential real estate 323,357 2,002 9,236 246 332,593 2,248 Commercial 146,144 1,538 4,525 76 150,669 1,614 Construction of commercial 9,232 120 118 — 9,350 120 Commercial real estate 155,376 1,658 4,643 76 160,019 1,734 Farm land 3,018 25 1,018 6 4,036 31 Vacant land 5,080 121 3,069 14 8,149 135 Real estate secured 486,831 3,806 17,966 342 504,797 4,148 Commercial and industrial 101,024 850 85 1 101,109 851 Municipal 9,005 56 — — 9,005 56 Consumer 5,617 89 — — 5,617 89 Unallocated allowance — 334 — — — 334 Totals $ 602,477 $ 5,135 $ 18,051 $ 343 $ 620,528 $ 5,478 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance June 30, 2016 Residential 1-4 family $ 6,470 $ — $ 779 $ 69 $ — $ — $ 7,249 $ 69 Residential 5+ multifamily 5,837 — 123 — — — 5,960 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 12,307 — 902 69 — — 13,209 69 Commercial 77,041 24 2,291 26 4,783 81 84,115 131 Construction of commercial 3,852 3 258 — — — 4,110 3 Commercial real estate 80,893 27 2,549 26 4,783 81 88,225 134 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 93,200 27 3,451 95 4,783 81 101,434 203 Commercial and industrial 31,592 27 — — 349 10 31,941 37 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 124,844 $ 54 $ 3,451 $ 95 $ 5,148 $ 91 $ 133,443 $ 240 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 June 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 597,508 $ 4,601 $ — $ — $ 597,508 $ 4,601 Potential problem loans 4,969 200 — — 4,969 200 Impaired loans — — 18,051 343 18,051 343 Unallocated allowance — 334 — — — 334 Totals $ 602,477 $ 5,135 $ 18,051 $ 343 $ 620,528 $ 5,478 Acquired Loans June 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 127,619 $ 70 $ — $ — $ 127,619 $ 70 Potential problem loans 2,373 75 — — 2,373 75 Impaired loans — — 3,451 95 3,451 95 Totals $ 129,992 $ 145 $ 3,451 $ 95 $ 133,443 $ 240 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 June 30, 2016 Residential 1-4 family $ 5,760 $ 6,209 $ 6,738 $ 230 $ 42 $ 2,667 $ 2,883 $ 2,748 $ 39 Home equity lines of credit 416 436 485 16 1 393 421 329 2 Residential real estate 6,176 6,645 7,223 246 43 3,060 3,304 3,077 41 Commercial 3,629 3,993 3,309 76 45 896 1,152 1,068 15 Construction of commercial — — 103 — — 118 125 17 4 Farm land 722 760 319 6 — 296 361 706 — Vacant land 2,870 3,881 2,870 14 1 199 235 203 — Real estate secured 13,397 15,279 13,824 342 89 4,569 5,177 5,071 60 Commercial and industrial 4 4 55 1 — 81 109 276 1 Consumer — — — — — — — 11 — Totals $ 13,401 $ 15,283 $ 13,879 $ 343 $ 89 $ 4,650 $ 5,286 $ 5,358 $ 61 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 June 30, 2016 Residential 1-4 family $ 602 $ 716 $ 627 $ 69 $ 3 $ 300 $ 300 $ 279 $ — Home equity credit lines of credit — — — — — — — — — Residential real estate 602 716 627 69 3 300 300 279 — Commercial 181 283 412 26 10 2,110 2,663 2,140 65 Construction of commercial — — — — — 258 272 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 783 999 1,039 95 13 2,668 3,235 2,678 65 Commercial and industrial — — 142 — — — 591 35 22 Consumer — — — — — — — — — Totals $ 783 $ 999 $ 1,181 $ 95 $ 13 $ 2,668 $ 3,826 $ 2,713 $ 87 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	6 Months Ended
	Jun. 30, 2016
Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 4 - MORTGAGE SERVICING RIGHTS June 30, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 128,141 $ 135,831 Fair value of mortgage servicing rights 961 1,383 Changes in mortgage servicing rights are as follows: Three months Six months Periods ended June 30, (in thousands) 2016 2015 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 456 $ 637 $ 487 $ 694 Originated 24 40 45 102 Amortization (1) (64 ) (78 ) (116 ) (197 ) Balance, end of period 416 599 416 599 Valuation Allowance Balance, beginning of period (24 ) (9 ) (4 ) — (Increase) decrease in impairment reserve (1) (1 ) 7 (21 ) (2 ) Balance, end of period (25 ) (2 ) (25 ) (2 ) Loan servicing rights, net $ 391 $ 597 $ 391 $ 597 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS

PLEDGED ASSETS	6 Months Ended
	Jun. 30, 2016
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 5 - PLEDGED ASSETS (in thousands) June 30, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 65,674 $ 67,750 Loans receivable 162,232 153,269 Total pledged assets $ 227,906 $ 221,019 At June 30, 2016, securities were pledged as follows: $59.3 million to secure public deposits, $6.3 million to secure repurchase agreements and $0.1 million to secure FHLBB advances. In addition to securities, loans receivable were pledged to secure FHLBB advances and credit facilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 6 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months Six months Periods ended June 30, (in thousands, except share and per share data) 2016 2015 2016 2015 Net income $ 1,735 $ 2,072 $ 3,247 $ 4,306 Less: Preferred stock dividends declared — (40 ) — (80 ) Net income available to common shareholders 1,735 2,032 3,247 4,226 Less: Undistributed earnings allocated to participating securities (13 ) (18 ) (27 ) (37 ) Net income allocated to common stock $ 1,722 $ 2,014 $ 3,220 $ 4,189 Weighted-average common shares issued 2,756 2,730 2,751 2,727 Less: Unvested restricted stock awards (21 ) (24 ) (22 ) (24 ) Weighted-average common shares outstanding used to calculate basic earnings per common share 2,735 2,706 2,729 2,703 Add: Dilutive effect of stock options 15 18 16 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,750 2,724 2,745 2,720 Earnings per common share (basic) $ 0.63 $ 0.74 $ 1.18 $ 1.55 Earnings per common share (diluted) $ 0.63 $ 0.74 $ 1.17 $ 1.54

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 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. The Board of Governors of the Federal Reserve System (FRB) and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. 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 initial implementation of the capital conservation buffer was phased in beginning 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. As of June 30, 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 June 30, 2016 Total Capital (to risk-weighted assets) Salisbury $ 93,863 13.08 % $ 57,390 8.0 % n/a — Bank 91,122 12.70 57,390 8.0 71,738 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 77,922 10.86 43,042 6.0 n/a — Bank 85,181 11.87 43,043 6.0 57,390 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 77,922 10.86 39,997 4.5 n/a — Bank 85,181 11.87 39,997 4.5 57,772 6.5 Tier 1 Capital (to average assets) Salisbury 77,922 8.77 35,553 4.0 n/a — Bank 85,181 9.58 35,553 4.0 44,441 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 DIVIDENDS Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. 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 the Salisbury’s participation in the U.S. Treasury’s SBLF program.

BENEFITS

BENEFITS	6 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
BENEFITS	NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $173,000 and $189,000, respectively, for the three month periods ended June 30, 2016 and 2015, and $389,000 and $351,000, respectively, for the six month periods ended June 30, 2016 and 2015. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $19,000 and $14,000, respectively, for the three month periods ended June 30, 2016 and 2015, and $38,000 and $31,000, respectively, for the six month periods ended June 30, 2016 and 2015. 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 $45,000 and $96,000, respectively, for the three month periods ended June 30, 2016 and 2015, and $81,000 and $192,000, respectively, for the six month periods ended June 30, 2016 and 2015. 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 of the Code. 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 $10,000 for the second quarter of 2016 and $8,000 for the second quarter of 2015. Additionally, expenses related to this plan amounted to $20,000 and $18,000 for the six months ended June 30, 2016 and 2015, respectively. 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 of the 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 all such 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 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 related to such grants in the three months ended June 30, 2016 and 2015 totaled $46,000 and $42,000, respectively, and for the six months ended June 30, 2016 and 2015 totaled $93,000 and $84,000, respectively. Unrecognized compensation cost relating to the awards as of June 30, 2016 and 2015 totaled $483,000 and $229,000, respectively. There were no forfeitures in the six months ended June 30, 2016 or the six months ended June 30, 2015.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 9 –ACCUMULATED OTHER COMPREHENSIVE INCOME (in thousands) June 30, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 1,108 $ 1,125 Accumulated other comprehensive income, net $ 1,108 $ 1,125

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 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. Accounting Standards Codification (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 w ith 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 June 30, 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 2 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 June 30, 2016 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 10,015 $ — $ 10,015 Municipal bonds — 20,949 — 20,949 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 38,641 — 38,641 Collateralized mortgage obligations: U.S. Government agencies — 1,740 — 1,740 Non-agency — 4,312 — 4,312 SBA bonds — 2,654 — 2,654 CRA mutual funds — 788 — 788 Corporate bonds — 997 — 997 Preferred stock 342 — — 342 Securities available-for-sale $ 342 $ 80,096 $ — $ 80,438 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 13,743 13,743 Mortgage servicing rights — 961 — 961 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 June 30, 2016 Financial Assets Cash and cash equivalents $ 31,498 $ 31,498 $ 31,498 $ — $ — Securities available-for-sale 80,438 80,438 342 80,096 — Federal Home Loan Bank stock 3,436 3,436 — 3,436 — Loans receivable, net 749,523 754,270 — — 754,270 Accrued interest receivable 2,217 2,217 — — 2,217 Cash surrender value of life insurance 13,862 13,862 13,862 — — Mortgage servicing rights 391 961 — 961 — Financial Liabilities Demand (non-interest-bearing) $ 189,182 $ 189,182 $ — $ — $ 189,182 Demand (interest-bearing) 120,142 120,142 — — 120,142 Money market 197,869 197,869 — — 197,869 Savings and other 124,019 124,019 — — 124,019 Certificates of deposit 123,259 124,556 — — 124,556 Deposits 754,471 755,768 — — 755,768 Repurchase agreements 3,355 3,355 — — 3,355 FHLBB advances 47,083 49,154 — — 49,154 Subordinated debt 9,776 10,162 — — 10,162 Note payable 358 385 — — 385 Capital lease liability 420 903 — — 903 Accrued interest payable 118 118 — — 118 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 — — Mortgage servicing rights 597 1,383 — 1,383 — 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)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Impact of New Accounting Pronouncements Issued	Impact of New Accounting Pronouncements Issued In January 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (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). . In March 2016, the FASB issued ASU No. 2016-09, Compensation–Stock Compensation (Topic 718): "Improvements to Employee Share-Based Payment Accounting.” In June 2016 the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Salisbury is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value June 30, 2016 Available-for-sale U.S. Treasury notes $ 9,998 $ 17 $ — $ 10,015 Municipal bonds 20,459 490 — 20,949 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 38,220 430 (9 ) 38,641 Collateralized mortgage obligations U.S. Government agencies 1,732 8 — 1,740 Non-agency 3,928 395 (11 ) 4,312 SBA bonds 2,628 26 — 2,654 CRA mutual funds 774 14 — 788 Corporate bonds 1,000 — (3 ) 997 Preferred stock 20 322 — 342 Total securities available-for-sale $ 78,759 $ 1,702 $ (23 ) $ 80,438 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,436 $ — $ — $ 3,436 (in thousands) Amortized cost (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2015 Available-for-sale U.S. Treasury notes $ 2,499 $ 42 $ — $ 2,541 U.S. Government agency notes 498 — — 498 Municipal bonds 29,752 633 — 30,385 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 31,900 385 (83 ) 32,202 Collateralized mortgage obligations U.S. Government agencies 2,002 12 — 2,014 Non-agency 4,487 468 (7 ) 4,948 SBA bonds 3,065 31 — 3,096 CRA mutual funds 766 — (2 ) 764 Preferred stock 20 226 — 246 Total securities available-for-sale $ 74,989 $ 1,797 $ (92 ) $ 76,694 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,176 $ — $ — $ 3,176 (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 June 30, 2016 Available-for-sale Mortgage-backed securities $ 255 $ (3 ) $ 218 $ (6 ) $ 473 $ (9 ) Collateralized mortgage obligations: Non-agency 323 (2 ) 192 (4 ) 515 (6 ) Corporate bonds 498 (3 ) — — 498 (3 ) Total temporarily impaired securities 1,076 (8 ) 410 (10 ) 1,486 (18 ) Other-than-temporarily impaired securities Collateralized mortgage obligations: Non-agency 207 (5 ) — — 207 (5 ) Total temporarily impaired and other-than-temporarily impaired securities $ 1,283 $ (13 ) $ 410 $ (10 ) $ 1,693 $ (23 )
Activity related to credit losses recognized into earnings	Six months ended June 30 (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)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	June 30, 2016 December 31, 2015 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 280,253 $ 7,249 $ 287,502 $ 261,495 $ 7,799 $ 269,294 Residential 5+ multifamily 7,230 5,960 13,190 6,411 6,136 12,547 Construction of residential 1-4 family 10,343 — 10,343 7,998 — 7,998 Home equity lines of credit 34,767 — 34,767 35,017 — 35,017 Residential real estate 332,593 13,209 345,802 310,921 13,935 324,856 Commercial 150,669 84,115 234,784 129,446 88,829 218,275 Construction of commercial 9,350 4,110 13,460 6,525 4,874 11,399 Commercial real estate 160,019 88,225 248,244 135,971 93,703 229,674 Farm land 4,036 — 4,036 3,193 — 3,193 Vacant land 8,149 — 8,149 8,563 — 8,563 Real estate secured 504,797 101,434 606,231 458,648 107,638 566,286 Commercial and industrial 101,109 31,941 133,050 74,657 46,764 121,421 Municipal 9,005 — 9,005 9,566 — 9,566 Consumer 5,617 68 5,685 6,195 77 6,272 Loans receivable, gross 620,528 133,443 753,971 549,066 154,479 703,545 Deferred loan origination costs, net 1,270 — 1,270 1,189 — 1,189 Allowance for loan losses (5,478 ) (240 ) (5,718 ) (5,481 ) (235 ) (5,716 ) Loans receivable, net $ 616,320 $ 133,203 $ 749,523 $ 544,774 $ 154,244 $ 699,018 Loans held-for-sale Residential 1-4 family $ — $ — $ — $ 763 $ — $ 763
Composition of loans receivable by risk rating grade	Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2016 Residential 1-4 family $ 269,086 $ 6,418 $ 4,659 $ 90 $ — $ 280,253 Residential 5+ multifamily 5,219 1,922 89 — — 7,230 Construction of residential 1-4 family 10,343 — — — — 10,343 Home equity credit 33,341 573 853 — — 34,767 Residential real estate 317,989 8,913 5,601 90 — 332,593 Commercial 139,570 3,707 7,392 — — 150,669 Construction of commercial 9,232 — 118 — — 9,350 Commercial real estate 148,802 3,707 7,510 — — 160,019 Farm land 3,018 — 1,018 — — 4,036 Vacant land 5,232 65 2,852 — — 8,149 Real estate secured 475,041 12,685 16,981 90 — 504,797 Commercial and industrial 97,051 3,402 654 2 — 101,109 Municipal 9,005 — — — — 9,005 Consumer 5,582 34 1 — — 5,617 Loans receivable, gross $ 586,679 $ 16,121 $ 17,636 $ 92 $ — $ 620,528 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2016 Residential 1-4 family $ 6,470 $ 1 $ 778 $ — $ — $ 7,249 Residential 5+ multifamily 5,837 — 123 — — 5,960 Construction of residential 1-4 family — — — — — — Home equity credit — — — — — — Residential real estate 12,307 1 901 — — 13,209 Commercial 76,876 2,631 4,608 — — 84,115 Construction of commercial 3,852 — 258 — — 4,110 Commercial real estate 80,728 2,631 4,866 — — 88,225 Farm land — — — — — — Vacant land — — — — — — Real estate secured 93,035 2,632 5,767 — — 101,434 Commercial and industrial 31,652 233 56 — — 31,941 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 124,752 $ 2,868 $ 5,823 $ — $ — $ 133,443 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 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 June 30, 2016 Residential 1-4 family $ 272,795 $ 2,791 $ 1,102 $ 521 $ 605 $ 2,439 $ 4,667 $ — $ 3,801 Residential 5+ multifamily 7,086 54 — — 1 89 90 — — Construction of residential 1-4 family 10,343 — — — — — — — — Home equity lines of credit 33,739 345 453 60 10 160 683 10 693 Residential real estate 323,963 3,190 1,555 581 616 2,688 5,440 10 4,494 Commercial 148,166 918 20 254 288 1,023 1,585 288 2,869 Construction of commercial 9,350 — — — — — — — — Commercial real estate 157,516 918 20 254 288 1,023 1,585 288 2,869 Farm land 3,027 — 286 — — 723 1,009 — 1,018 Vacant land 5,318 — 8 — — 2,823 2,831 — 2,852 Real estate secured 489,824 4,108 1,869 835 904 7,257 10,865 298 11,233 Commercial and industrial 100,049 826 106 106 4 18 234 — 25 Municipal 9,005 — — — — — — — — Consumer 5,565 37 12 3 — — 15 — — Loans receivable, gross $ 604,443 $ 4,971 $ 1,987 $ 944 $ 908 $ 7,275 $ 11,114 $ 298 $ 11,258 Acquired Loans June 30, 2016 Residential 1-4 family $ 6,379 $ 91 $ — $ — $ — $ 779 $ 779 $ — $ 902 Residential 5+ multifamily 5,836 — — — — 124 124 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,215 91 — — — 903 903 — 902 Commercial 78,259 2,753 — 1,241 321 1,541 3,103 322 1,541 Construction of commercial 3,852 — — — — 258 258 258 Commercial real estate 82,111 2,753 — 1,241 321 1,799 3,361 322 1,799 Farm land — — — — — — — — Vacant land — — — — — — — — — Real estate secured 94,326 2,844 — 1,241 321 2,702 4,264 322 2,701 Commercial and industrial 31,484 271 136 50 — — 186 — — Municipal — — — — — — — — Consumer 53 15 — — — — — — Loans receivable, gross $ 125,863 $ 3,130 $ 136 $ 1,291 $ 321 $ 2,702 $ 4,450 $ 322 $ 2,701 Business Activities Loans Past due 180 30 (in thousands) Current 1-29 30-59 60-89 90-179 days days Accruing Non- days days days days and and 90 days accrual over over and over December 31, 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 December 31, 2015 Residential 1-4 family $ 6,823 $ — $ — $ 110 $ — $ 866 $ 976 $ 90 $ 776 Residential 5+ multifamily 6,136 — — — — — — — — Construction of residential 1-4 family — — — — — — — — — Home equity lines of credit — — — — — — — — — Residential real estate 12,959 — — 110 — 866 976 90 776 Commercial 81,140 4,848 916 — — 1,925 2,841 — 2,000 Construction of commercial 4,612 — — — — 262 262 — 262 Commercial real estate 85,752 4,848 916 — — 2,187 3,103 — 2,262 Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 98,711 4,848 916 110 — 3,053 4,079 90 3,038 Commercial and industrial 46,128 471 83 82 — — 165 — — Municipal — — — — — — — — — Consumer 77 — — — — — — — — Loans receivable, gross $ 144,916 $ 5,319 $ 999 $ 192 $ — $ 3,053 $ 4,244 $ 90 $ 3,038
Troubled debt restructurings	Business Activities Loans Six months ended June 30, 2016 June 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate 3 $ 316 $ 316 1 $ 875 $ 875 Commercial real estate 1 1,863 1,863 1 184 184 Home equity lines of credit — — — — — — Troubled debt restructurings 4 $ 2,179 $ 2,179 2 $ 1,059 $ 1,059 Rate reduction and term extension 2 $ 262 $ 262 1 $ 184 $ 184 Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation 1 1,863 1,863 — — — Term extension 1 54 54 1 875 875 Troubled debt restructurings 4 $ 2,179 $ 2,179 2 $ 1,059 $ 1,059 Acquired Loans Six months ended June 30, 2016 June 30, 2015 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — — $ — $ — Commercial real estate — — — — — — Home equity lines of credit — — — — — — Troubled debt restructurings — $ — $ — — $ — $ — Rate reduction and term extension — $ — $ — — $ — $ — Interest only and term extension — — — — — — Interest only — — — — — — Debt consolidation and term extension — — — — — — Term extension — — — — — — Troubled debt restructurings — $ — $ — — $ — $ —
Changes in allowance for loan losses	Business Activities Loans Acquired Loans (in thousands) Three months ended June 30, 2016 Three months ended June 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,458 $ 59 $ (287 ) $ 18 $ 2,248 $ 69 $ — $ — $ — $ 69 Commercial 1,585 149 — — 1,734 94 40 (1 ) 1 134 Land 164 25 (23 ) — 166 — — — — — Real estate 4,207 233 (310 ) 18 4,148 163 40 (1 ) 1 203 Commercial and industrial 781 60 — 10 851 141 299 (414 ) 11 37 Municipal 59 (3 ) — — 56 — — — — — Consumer 114 (26 ) (7 ) 8 89 — — — — — Unallocated 412 (78 ) — — 334 — — — — — Totals $ 5,573 $ 186 $ (317 ) $ 36 $ 5,478 $ 304 $ 339 $ (415 ) $ 12 $ 240 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2016 Six months ended June 30, 2016 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,477 $ 146 $ (394 ) $ 19 $ 2,248 $ 79 $ (10 ) $ — $ — $ 69 Commercial 1,466 302 (35 ) 1 1,734 132 96 (98 ) 4 134 Land 188 24 (46 ) — 166 — — — — — Real estate 4,131 472 (475 ) 20 4,148 211 86 (98 ) 4 203 Commercial and industrial 683 185 (32 ) 15 851 24 413 (415 ) 15 37 Municipal 61 (5 ) — — 56 — — — — — Consumer 124 (15 ) (30 ) 10 89 — — — — — Unallocated 482 (148 ) — — 334 — — — — — Totals $ 5,481 $ 489 $ (537 ) $ 45 $ 5,478 $ 235 $ 499 $ (513 ) $ 19 $ 240 Business Activities Loans Acquired Loans (in thousands) Three months ended June 30, 2015 Three months ended June 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,386 $ (52 ) $ (188 ) $ 1 $ 2,147 $ — $ 15 $ — $ — $ 15 Commercial 1,355 116 (132 ) — 1,339 18 59 — — 77 Land 176 6 — — 182 — — — — — Real estate 3,917 70 (320 ) 1 3,668 18 74 — — 92 Commercial and industrial 637 52 — 2 691 45 (3 ) — 10 52 Municipal 61 3 — — 64 — — — — — Consumer 120 15 (16 ) 4 123 — — — — — Unallocated 384 (15 ) — — 369 — — — — — Totals $ 5,119 $ 125 $ (336 ) $ 7 $ 4,915 $ 63 $ 71 $ — $ 10 $ 144 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2015 Six months ended June 30, 2015 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,306 $ 320 $ (481 ) $ 2 $ 2,147 $ — $ 15 $ — $ — $ 15 Commercial 1,697 (154 ) (204 ) — 1,339 7 70 — — 77 Land 164 18 — — 182 — — — — — Real estate 4,167 184 (685 ) 2 3,668 7 85 — — 92 Commercial and industrial 583 (288 ) (56 ) 452 691 14 21 — 17 52 Municipal 61 3 — — 64 — — — — — Consumer 117 31 (31 ) 6 123 — — — — — Unallocated 409 (40 ) — — 369 — — — — — Totals $ 5,337 $ (110 ) $ (772 ) $ 460 $ 4,915 $ 21 $ 106 $ — $ 17 $ 144
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 June 30, 2016 Residential 1-4 family $ 273,585 $ 1,574 $ 6,668 $ 230 $ 280,253 $ 1,804 Residential 5+ multifamily 5,471 39 1,759 — 7,230 39 Construction of residential 1-4 family 10,343 77 — — 10,343 77 Home equity lines of credit 33,958 312 809 16 34,767 328 Residential real estate 323,357 2,002 9,236 246 332,593 2,248 Commercial 146,144 1,538 4,525 76 150,669 1,614 Construction of commercial 9,232 120 118 — 9,350 120 Commercial real estate 155,376 1,658 4,643 76 160,019 1,734 Farm land 3,018 25 1,018 6 4,036 31 Vacant land 5,080 121 3,069 14 8,149 135 Real estate secured 486,831 3,806 17,966 342 504,797 4,148 Commercial and industrial 101,024 850 85 1 101,109 851 Municipal 9,005 56 — — 9,005 56 Consumer 5,617 89 — — 5,617 89 Unallocated allowance — 334 — — — 334 Totals $ 602,477 $ 5,135 $ 18,051 $ 343 $ 620,528 $ 5,478 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance June 30, 2016 Residential 1-4 family $ 6,470 $ — $ 779 $ 69 $ — $ — $ 7,249 $ 69 Residential 5+ multifamily 5,837 — 123 — — — 5,960 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 12,307 — 902 69 — — 13,209 69 Commercial 77,041 24 2,291 26 4,783 81 84,115 131 Construction of commercial 3,852 3 258 — — — 4,110 3 Commercial real estate 80,893 27 2,549 26 4,783 81 88,225 134 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 93,200 27 3,451 95 4,783 81 101,434 203 Commercial and industrial 31,592 27 — — 349 10 31,941 37 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 124,844 $ 54 $ 3,451 $ 95 $ 5,148 $ 91 $ 133,443 $ 240 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 June 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 597,508 $ 4,601 $ — $ — $ 597,508 $ 4,601 Potential problem loans 4,969 200 — — 4,969 200 Impaired loans — — 18,051 343 18,051 343 Unallocated allowance — 334 — — — 334 Totals $ 602,477 $ 5,135 $ 18,051 $ 343 $ 620,528 $ 5,478 Acquired Loans June 30, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 127,619 $ 70 $ — $ — $ 127,619 $ 70 Potential problem loans 2,373 75 — — 2,373 75 Impaired loans — — 3,451 95 3,451 95 Totals $ 129,992 $ 145 $ 3,451 $ 95 $ 133,443 $ 240 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 June 30, 2016 Residential 1-4 family $ 5,760 $ 6,209 $ 6,738 $ 230 $ 42 $ 2,667 $ 2,883 $ 2,748 $ 39 Home equity lines of credit 416 436 485 16 1 393 421 329 2 Residential real estate 6,176 6,645 7,223 246 43 3,060 3,304 3,077 41 Commercial 3,629 3,993 3,309 76 45 896 1,152 1,068 15 Construction of commercial — — 103 — — 118 125 17 4 Farm land 722 760 319 6 — 296 361 706 — Vacant land 2,870 3,881 2,870 14 1 199 235 203 — Real estate secured 13,397 15,279 13,824 342 89 4,569 5,177 5,071 60 Commercial and industrial 4 4 55 1 — 81 109 276 1 Consumer — — — — — — — 11 — Totals $ 13,401 $ 15,283 $ 13,879 $ 343 $ 89 $ 4,650 $ 5,286 $ 5,358 $ 61 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 June 30, 2016 Residential 1-4 family $ 602 $ 716 $ 627 $ 69 $ 3 $ 300 $ 300 $ 279 $ — Home equity credit lines of credit — — — — — — — — — Residential real estate 602 716 627 69 3 300 300 279 — Commercial 181 283 412 26 10 2,110 2,663 2,140 65 Construction of commercial — — — — — 258 272 259 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 783 999 1,039 95 13 2,668 3,235 2,678 65 Commercial and industrial — — 142 — — — 591 35 22 Consumer — — — — — — — — — Totals $ 783 $ 999 $ 1,181 $ 95 $ 13 $ 2,668 $ 3,826 $ 2,713 $ 87 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)	6 Months Ended
	Jun. 30, 2016
Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	June 30, (in thousands) 2016 2015 Residential mortgage loans serviced for others $ 128,141 $ 135,831 Fair value of mortgage servicing rights 961 1,383
Changes in mortgage servicing rights	Three months Six months Periods ended June 30, (in thousands) 2016 2015 2016 2015 Mortgage Servicing Rights Balance, beginning of period $ 456 $ 637 $ 487 $ 694 Originated 24 40 45 102 Amortization (1) (64 ) (78 ) (116 ) (197 ) Balance, end of period 416 599 416 599 Valuation Allowance Balance, beginning of period (24 ) (9 ) (4 ) — (Increase) decrease in impairment reserve (1) (1 ) 7 (21 ) (2 ) Balance, end of period (25 ) (2 ) (25 ) (2 ) Loan servicing rights, net $ 391 $ 597 $ 391 $ 597 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	6 Months Ended
	Jun. 30, 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) June 30, 2016 December 31, 2015 Securities available-for-sale (at fair value) $ 65,674 $ 67,750 Loans receivable 162,232 153,269 Total pledged assets $ 227,906 $ 221,019

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Computation of earnings per share	Three months Six months Periods ended June 30, (in thousands, except share and per share data) 2016 2015 2016 2015 Net income $ 1,735 $ 2,072 $ 3,247 $ 4,306 Less: Preferred stock dividends declared — (40 ) — (80 ) Net income available to common shareholders 1,735 2,032 3,247 4,226 Less: Undistributed earnings allocated to participating securities (13 ) (18 ) (27 ) (37 ) Net income allocated to common stock $ 1,722 $ 2,014 $ 3,220 $ 4,189 Weighted-average common shares issued 2,756 2,730 2,751 2,727 Less: Unvested restricted stock awards (21 ) (24 ) (22 ) (24 ) Weighted-average common shares outstanding used to calculate basic earnings per common share 2,735 2,706 2,729 2,703 Add: Dilutive effect of stock options 15 18 16 17 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,750 2,724 2,745 2,720 Earnings per common share (basic) $ 0.63 $ 0.74 $ 1.18 $ 1.55 Earnings per common share (diluted) $ 0.63 $ 0.74 $ 1.17 $ 1.54

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2016 Total Capital (to risk-weighted assets) Salisbury $ 93,863 13.08 % $ 57,390 8.0 % n/a — Bank 91,122 12.70 57,390 8.0 71,738 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 77,922 10.86 43,042 6.0 n/a — Bank 85,181 11.87 43,043 6.0 57,390 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 77,922 10.86 39,997 4.5 n/a — Bank 85,181 11.87 39,997 4.5 57,772 6.5 Tier 1 Capital (to average assets) Salisbury 77,922 8.77 35,553 4.0 n/a — Bank 85,181 9.58 35,553 4.0 44,441 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)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Components of accumulated other comprehensive income	(in thousands) June 30, 2016 December 31, 2015 Unrealized gains on securities available-for-sale, net of tax $ 1,108 $ 1,125 Accumulated other comprehensive income, net $ 1,108 $ 1,125

FAIR VALUE OF ASSETS AND LIAB26

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2016 Assets at fair value on a recurring basis U.S. Treasury notes $ — $ 10,015 $ — $ 10,015 Municipal bonds — 20,949 — 20,949 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 38,641 — 38,641 Collateralized mortgage obligations: U.S. Government agencies — 1,740 — 1,740 Non-agency — 4,312 — 4,312 SBA bonds — 2,654 — 2,654 CRA mutual funds — 788 — 788 Corporate bonds — 997 — 997 Preferred stock 342 — — 342 Securities available-for-sale $ 342 $ 80,096 $ — $ 80,438 Assets at fair value on a non-recurring basis Collateral dependent impaired loans — — 13,743 13,743 Mortgage servicing rights — 961 — 961 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 June 30, 2016 Financial Assets Cash and cash equivalents $ 31,498 $ 31,498 $ 31,498 $ — $ — Securities available-for-sale 80,438 80,438 342 80,096 — Federal Home Loan Bank stock 3,436 3,436 — 3,436 — Loans receivable, net 749,523 754,270 — — 754,270 Accrued interest receivable 2,217 2,217 — — 2,217 Cash surrender value of life insurance 13,862 13,862 13,862 — — Mortgage servicing rights 391 961 — 961 — Financial Liabilities Demand (non-interest-bearing) $ 189,182 $ 189,182 $ — $ — $ 189,182 Demand (interest-bearing) 120,142 120,142 — — 120,142 Money market 197,869 197,869 — — 197,869 Savings and other 124,019 124,019 — — 124,019 Certificates of deposit 123,259 124,556 — — 124,556 Deposits 754,471 755,768 — — 755,768 Repurchase agreements 3,355 3,355 — — 3,355 FHLBB advances 47,083 49,154 — — 49,154 Subordinated debt 9,776 10,162 — — 10,162 Note payable 358 385 — — 385 Capital lease liability 420 903 — — 903 Accrued interest payable 118 118 — — 118 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 — — Mortgage servicing rights 597 1,383 — 1,383 — 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	Jun. 30, 2016	Dec. 31, 2015
Amortized cost (1)
Available-for-sale
U.S. Treasury notes	$ 9,998	$ 2,499
U.S. Government Agency notes		498
Municipal bonds	20,459	29,752
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	38,220	31,900
Collateralized mortgage obligations, U.S. Government Agencies	1,732	2,002
Collateralized mortgage obligations, Non-agency	3,928	4,487
SBA bonds	2,628	3,065
CRA mutual funds	774	766
Corporate bonds	1,000
Preferred stock	20	20
Total securities available-for-sale	78,759	74,989
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,436	3,176
Gross unrealized gains
Available-for-sale
U.S. Treasury notes	17	42
U.S. Government Agency notes
Municipal bonds	490	633
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	430	385
Collateralized mortgage obligations, U.S. Government Agencies	8	12
Collateralized mortgage obligations, Non-agency	395	468
SBA bonds	26	31
CRA mutual funds	14
Corporate bonds
Preferred stock	322	226
Total securities available-for-sale	1,702	1,797
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
U.S. Treasury notes
U.S. Government Agency notes
Municipal bonds
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	(9)	(83)
Collateralized mortgage obligations, U.S. Government Agencies
Collateralized mortgage obligations, Non-agency	(11)	(7)
SBA bonds
CRA mutual funds		(2)
Corporate bonds	(3)
Preferred stock
Total securities available-for-sale	(23)	(92)
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Treasury notes	10,015	2,541
U.S. Government Agency notes		498
Municipal bonds	20,949	30,385
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	38,641	32,202
Collateralized mortgage obligations, U.S. Government Agencies	1,740	2,014
Collateralized mortgage obligations, Non-agency	4,312	4,948
SBA bonds	2,654	3,096
CRA mutual funds	788	764
Corporate bonds	997
Preferred stock	342	246
Total securities available-for-sale	80,438	76,694
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,436	$ 3,176

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) $ in Thousands	Jun. 30, 2016USD ($)
Less Than 12 Months, Fair value
Available-for-sale
Mortgage-backed securities	$ 255
Collateralized mortgage obligations, Non-agency	323
Corporate bonds	498
Total temporarily impaired securities	1,076
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	207
Total temporarily impaired and other-than-temporarily impaired securities	1,283
Less Than 12 Months, Unrealized losses
Available-for-sale
Mortgage-backed securities	(3)
Collateralized mortgage obligations, Non-agency	(2)
Corporate bonds	(3)
Total temporarily impaired securities	(8)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	(5)
Total temporarily impaired and other-than-temporarily impaired securities	(13)
12 Months or Longer, Fair value
Available-for-sale
Mortgage-backed securities	218
Collateralized mortgage obligations, Non-agency	192
Corporate bonds
Total temporarily impaired securities	410
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	410
12 Months or Longer, Unrealized losses
Available-for-sale
Mortgage-backed securities	(6)
Collateralized mortgage obligations, Non-agency	(4)
Corporate bonds
Total temporarily impaired securities	(10)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	(10)
Total, Fair value
Available-for-sale
Mortgage-backed securities	473
Collateralized mortgage obligations, Non-agency	515
Corporate bonds	498
Total temporarily impaired securities	1,486
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	207
Total temporarily impaired and other-than-temporarily impaired securities	1,693
Total, Unrealized losses
Available-for-sale
Mortgage-backed securities	(9)
Collateralized mortgage obligations, Non-agency	(6)
Corporate bonds	(3)
Total temporarily impaired securities	(18)
Other-than-temporarily impaired securities, Collateralized mortgage obligations, Non-agency	(5)
Total temporarily impaired and other-than-temporarily impaired securities	$ (23)

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	6 Months Ended
	Jun. 30, 2016	Jun. 30, 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	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2009
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities sold	$ 3,600	$ 3,700
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	Jun. 30, 2016	Dec. 31, 2015
Business Activites Loans
Residential 1-4 family	$ 280,253	$ 261,495
Residential 5+ multifamily	7,230	6,411
Construction of residential 1-4 family	10,343	7,998
Home equity lines of credit	34,767	35,017
Residential real estate	332,593	310,921
Commercial	150,669	129,446
Construction of commercial	9,350	6,525
Commercial real estate	160,019	135,971
Farm land	4,036	3,193
Vacant land	8,149	8,563
Real estate secured	504,797	458,648
Commercial and industrial	101,109	74,657
Municipal	9,005	9,566
Consumer	5,617	6,195
Loans receivable, gross	620,528	549,066
Deferred loan origination fees and costs, net	1,270	1,189
Allowance for loan losses	(5,478)	(5,481)
Loans receivable, net	616,320	544,774
Loans held-for-sale
Residential 1-4 family		763
Acquired Loans
Residential 1-4 family	7,249	7,799
Residential 5+ multifamily	5,960	6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	13,209	13,935
Commercial	84,115	88,829
Construction of commercial	4,110	4,874
Commercial real estate	88,225	93,703
Farm land
Vacant land
Real estate secured	101,434	107,638
Commercial and industrial	31,941	46,764
Municipal
Consumer	68	77
Loans receivable, gross	133,443	154,479
Deferred loan origination fees and costs, net
Allowance for loan losses	(240)	(235)
Loans receivable, net	133,203	154,244
Loans held-for-sale
Residential 1-4 family
Total
Residential 1-4 family	287,502	269,294
Residential 5+ multifamily	13,190	12,547
Construction of residential 1-4 family	10,343	7,998
Home equity lines of credit	34,767	35,017
Residential real estate	345,802	324,856
Commercial	234,784	218,275
Construction of commercial	13,460	11,399
Commercial real estate	248,244	229,674
Farm land	4,036	3,193
Vacant land	8,149	8,563
Real estate secured	606,231	566,286
Commercial and industrial	133,050	121,421
Municipal	9,005	9,566
Consumer	5,685	6,272
Loans receivable, gross	753,971	703,545
Deferred loan origination fees and costs, net	1,270	1,189
Allowance for loan losses	(5,718)	(5,716)
Loans receivable, net	749,523	699,018
Loans held-for-sale
Residential 1-4 family		$ 763

LOANS - Composition of loans 32

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Activities Loans - Pass
Residential 1-4 family	$ 269,086	$ 248,027
Residential 5+ multifamily	5,219	4,507
Construction of residential 1-4 family	10,343	7,111
Home equity lines of credit	33,341	33,687
Residential real estate	317,989	293,332
Commercial	139,570	120,903
Construction of commercial	9,232	6,525
Commercial real estate	148,802	127,428
Farm land	3,018	2,162
Vacant land	5,232	5,567
Real estate secured	475,041	428,489
Commercial and industrial	97,051	72,887
Municipal	9,005	9,566
Consumer	5,582	6,171
Loans receivable, gross	586,679	517,113
Business Activities Loans - Special mention
Residential 1-4 family	6,418	6,933
Residential 5+ multifamily	1,922	1,815
Construction of residential 1-4 family		887
Home equity lines of credit	573	545
Residential real estate	8,913	10,180
Commercial	3,707	4,801
Construction of commercial
Commercial real estate	3,707	4,801
Farm land
Vacant land	65	69
Real estate secured	12,685	15,050
Commercial and industrial	3,402	1,214
Municipal
Consumer	34	18
Loans receivable, gross	16,121	16,282
Business Activities Loans - Substandard
Residential 1-4 family	4,659	6,444
Residential 5+ multifamily	89	89
Construction of residential 1-4 family
Home equity lines of credit	853	785
Residential real estate	5,601	7,318
Commercial	7,392	3,742
Construction of commercial	118
Commercial real estate	7,510	3,742
Farm land	1,018	1,031
Vacant land	2,852	2,927
Real estate secured	16,981	15,018
Commercial and industrial	654	555
Municipal
Consumer	1	6
Loans receivable, gross	17,636	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	280,253	261,495
Residential 5+ multifamily	7,230	6,411
Construction of residential 1-4 family	10,343	7,998
Home equity lines of credit	34,767	35,017
Residential real estate	332,593	310,921
Commercial	150,669	129,446
Construction of commercial	9,350	6,525
Commercial real estate	160,019	135,971
Farm land	4,036	3,193
Vacant land	8,149	8,563
Real estate secured	504,797	458,648
Commercial and industrial	101,109	74,657
Municipal	9,005	9,566
Consumer	5,617	6,195
Loans receivable, gross	620,528	549,066
Acquired Loans - Pass
Residential 1-4 family	6,470	6,824
Residential 5+ multifamily	5,837	6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	12,307	12,960
Commercial	76,876	80,406
Construction of commercial	3,852	4,612
Commercial real estate	80,728	85,018
Farm land
Vacant land
Real estate secured	93,035	97,978
Commercial and industrial	31,652	45,363
Municipal
Consumer	65	71
Loans receivable, gross	124,752	143,412
Acquired Loans - Special Mention
Residential 1-4 family	1	199
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	1	199
Commercial	2,631	4,005
Construction of commercial
Commercial real estate	2,631	4,005
Farm land
Vacant land
Real estate secured	2,632	4,204
Commercial and industrial	233	875
Municipal
Consumer	3	6
Loans receivable, gross	2,868	5,085
Acquired Loans - Substandard
Residential 1-4 family	778	776
Residential 5+ multifamily	123
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	901	776
Commercial	4,608	4,418
Construction of commercial	258	262
Commercial real estate	4,866	4,680
Farm land
Vacant land
Real estate secured	5,767	5,456
Commercial and industrial	56	443
Municipal
Consumer
Loans receivable, gross	5,823	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		83
Municipal
Consumer
Loans receivable, gross		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	7,249	7,799
Residential 5+ multifamily	5,960	6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	13,209	13,935
Commercial	84,115	88,829
Construction of commercial	4,110	4,874
Commercial real estate	88,225	93,703
Farm land
Vacant land
Real estate secured	101,434	107,638
Commercial and industrial	31,941	46,764
Municipal
Consumer	68	77
Loans receivable, gross	$ 133,443	$ 154,479

LOANS - Composition of loans 33

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Activities Loans - Current
Residential 1-4 family	$ 272,795	$ 254,152
Residential 5+ multifamily	7,086	6,254
Construction of residential 1-4 family	10,343	7,826
Home equity lines of credit	33,739	33,744
Residential real estate	323,963	301,976
Commercial	148,166	126,440
Construction of commercial	9,350	6,525
Commercial real estate	157,516	132,965
Farm land	3,027	2,172
Vacant land	5,318	5,734
Real estate secured	489,824	442,847
Commercial and industrial	100,049	73,698
Municipal	9,005	9,566
Consumer	5,565	6,096
Loans receivable, gross	604,443	532,207
Business Activities Loans - Past due 1-29 days
Residential 1-4 family	2,791	1,781
Residential 5+ multifamily	54
Construction of residential 1-4 family		172
Home equity lines of credit	345	363
Residential real estate	3,190	2,316
Commercial	918	1,618
Construction of commercial
Commercial real estate	918	1,618
Farm land		298
Vacant land
Real estate secured	4,108	4,232
Commercial and industrial	826	906
Municipal
Consumer	37	61
Loans receivable, gross	4,971	5,199
Business Activities Loans - Past due 30-59 days
Residential 1-4 family	1,102	1,931
Residential 5+ multifamily		68
Construction of residential 1-4 family
Home equity lines of credit	453	306
Residential real estate	1,555	2,305
Commercial	20	474
Construction of commercial
Commercial real estate	20	474
Farm land	286
Vacant land	8	6
Real estate secured	1,869	2,785
Commercial and industrial	106	35
Municipal
Consumer	12	21
Loans receivable, gross	1,987	2,841
Business Activities Loans - Past due 60-89 days
Residential 1-4 family	521	683
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	60	101
Residential real estate	581	784
Commercial	254
Construction of commercial
Commercial real estate	254
Farm land
Vacant land
Real estate secured	835	784
Commercial and industrial	106
Municipal
Consumer	3	17
Loans receivable, gross	944	801
Business Activities Loans - Past due 90-179 days
Residential 1-4 family	605	973
Residential 5+ multifamily	1
Construction of residential 1-4 family
Home equity lines of credit	10	113
Residential real estate	616	1,086
Commercial	288	233
Construction of commercial
Commercial real estate	288	233
Farm land
Vacant land
Real estate secured	904	1,319
Commercial and industrial	4
Municipal
Consumer
Loans receivable, gross	908	1,319
Business Activities Loans - Past due 180 days and over
Residential 1-4 family	2,439	1,975
Residential 5+ multifamily	89	89
Construction of residential 1-4 family
Home equity lines of credit	160	390
Residential real estate	2,688	2,454
Commercial	1,023	681
Construction of commercial
Commercial real estate	1,023	681
Farm land	723	723
Vacant land	2,823	2,823
Real estate secured	7,257	6,681
Commercial and industrial	18	18
Municipal
Consumer
Loans receivable, gross	7,275	6,699
Business Activities Loans - Past due 30 days and over
Residential 1-4 family	4,667	5,562
Residential 5+ multifamily	90	157
Construction of residential 1-4 family
Home equity lines of credit	683	910
Residential real estate	5,440	6,629
Commercial	1,585	1,388
Construction of commercial
Commercial real estate	1,585	1,388
Farm land	1,009	723
Vacant land	2,831	2,829
Real estate secured	10,865	11,569
Commercial and industrial	234	53
Municipal
Consumer	15
Loans receivable, gross	11,114	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	10
Residential real estate	10
Commercial	288
Construction of commercial
Commercial real estate	288
Farm land
Vacant land
Real estate secured	298
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	298
Business Activities Loans - Non-accrual
Residential 1-4 family	3,801	5,671
Residential 5+ multifamily		89
Construction of residential 1-4 family
Home equity lines of credit	693	601
Residential real estate	4,494	6,361
Commercial	2,869	2,349
Construction of commercial
Commercial real estate	2,869	2,349
Farm land	1,018	1,031
Vacant land	2,852	2,855
Real estate secured	11,233	12,596
Commercial and industrial	25	461
Municipal
Consumer		80
Loans receivable, gross	11,258	13,137
Acquired Loans - Current
Residential 1-4 family	6,379	6,823
Residential 5+ multifamily	5,836	6,136
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	12,215	12,959
Commercial	78,259	81,140
Construction of commercial	3,852	4,612
Commercial real estate	82,111	85,752
Farm land
Vacant land
Real estate secured	94,326	98,711
Commercial and industrial	31,484	46,128
Municipal
Consumer	53	77
Loans receivable, gross	125,863	144,916
Acquired Loans - Past due 1-29 days
Residential 1-4 family	91
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	91
Commercial	2,753	4,848
Construction of commercial
Commercial real estate	2,753	4,848
Farm land
Vacant land
Real estate secured	2,844	4,848
Commercial and industrial	271	471
Municipal
Consumer	15
Loans receivable, gross	3,130	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		916
Construction of commercial
Commercial real estate		916
Farm land
Vacant land
Real estate secured		916
Commercial and industrial	136	83
Municipal
Consumer
Loans receivable, gross	136	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	1,241
Construction of commercial
Commercial real estate	1,241
Farm land
Vacant land
Real estate secured	1,241	110
Commercial and industrial	50	82
Municipal
Consumer
Loans receivable, gross	1,291	192
Acquired Loans - Past due 90-179 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	321
Construction of commercial
Commercial real estate	321
Farm land
Vacant land
Real estate secured	321
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	321
Acquired Loans - Past due 180 days and over
Residential 1-4 family	779	866
Residential 5+ multifamily	124
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	903	866
Commercial	1,541	1,925
Construction of commercial	258	262
Commercial real estate	1,799	2,187
Farm land
Vacant land
Real estate secured	2,702	3,053
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	2,702	3,053
Acquired Loans - Past due 30 days and over
Residential 1-4 family	779	976
Residential 5+ multifamily	124
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	903	976
Commercial	3,103	2,841
Construction of commercial	258	262
Commercial real estate	3,361	3,103
Farm land
Vacant land
Real estate secured	4,264	4,079
Commercial and industrial	186	165
Municipal
Consumer
Loans receivable, gross	4,450	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	322
Construction of commercial
Commercial real estate	322
Farm land
Vacant land
Real estate secured	322	90
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	322	90
Acquired Loans - Non-accrual
Residential 1-4 family	902	766
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	902	766
Commercial	1,541	2,000
Construction of commercial	258	262
Commercial real estate	1,799	2,262
Farm land
Vacant land
Real estate secured	2,701	3,038
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 2,701	$ 3,038

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)Integer	Jun. 30, 2015USD ($)Integer
Business Activities Loans - Residential real estate
Quantity of troubled debt restructurings | Integer	3	1
Pre-modification balance	$ 316	$ 875
Post-modification balance	$ 316	$ 875
Business Activities Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 1,863	$ 184
Post-modification balance	$ 1,863	$ 184
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	4	2
Pre-modification balance	$ 2,179	$ 1,059
Post-modification balance	$ 2,179	$ 1,059
Rate reduction and term extension
Quantity of troubled debt restructurings | Integer	2	1
Pre-modification balance	$ 262	$ 184
Post-modification balance	$ 262	$ 184
Interest only and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Interest only
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Debt consolidation
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 1,863
Post-modification balance	$ 1,863
Term extension
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 54	$ 875
Post-modification balance	$ 54	$ 857
Acquired Loans - Residential real estate
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 - Home equity lines of credit
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
Rate reduction and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Interest only and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Interest only
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Debt consolidation and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
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	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Activities Loans - Residential
Beginning balance	$ 2,458	$ 2,386	$ 2,477	$ 2,306
Provision	59	(52)	146	320
Charge-offs	(287)	(188)	(394)	(481)
Recoveries	18	1	19	2
Ending balance	2,248	2,147	2,248	2,147
Business Activities Loans - Commercial
Beginning balance	1,585	1,355	1,466	1,697
Provision	149	166	302	(154)
Charge-offs		(132)	(35)	(204)
Recoveries			1
Ending balance	1,734	1,339	1,734	1,339
Business Activities Loans - Land
Beginning balance	164	176	188	164
Provision	25	6	24	18
Charge-offs	(23)		(46)
Recoveries
Ending balance	166	182	166	182
Business Activities Loans - Real estate
Beginning balance	4,207	3,917	4,131	4,167
Provision	233	70	472	184
Charge-offs	(310)	(320)	(475)	(685)
Recoveries	18	1	20	2
Ending balance	4,148	3,668	4,148	3,668
Business Activities Loans - Commercial and industrial
Beginning balance	781	637	683	583
Provision	60	52	185	(288)
Charge-offs			(32)	(56)
Recoveries	10	2	15	452
Ending balance	851	691	851	691
Business Activities Loans - Municipal
Beginning balance	59	61	61	61
Provision	(3)	3	(5)	3
Charge-offs
Recoveries
Ending balance	56	64	56	64
Business Activities Loans - Consumer
Beginning balance	114	120	124	117
Provision	(26)	15	(15)	31
Charge-offs	(7)	(16)	(30)	(31)
Recoveries	8	4	10	6
Ending balance	89	123	89	123
Business Activities Loans - Unallocated
Beginning balance	412	384	482	409
Provision	(78)	(15)	(148)	(40)
Charge-offs
Recoveries
Ending balance	334	369	334	369
Business Activities Loans - Total
Beginning balance	5,573	5,119	5,481	5,337
Provision	186	125	489	(110)
Charge-offs	(317)	(336)	(537)	(772)
Recoveries	36	7	45	460
Ending balance	5,478	4,915	5,478	4,915
Acquired Loans - Residential
Beginning balance	69		79
Provision		15	(10)	15
Charge-offs
Recoveries
Ending balance	69	15	69	15
Acquired Loans - Commercial
Beginning balance	94	18	132	7
Provision	40	59	96	70
Charge-offs	(1)		(98)
Recoveries	1		4
Ending balance	134	77	134	77
Acquired Activities Loans - Land
Beginning balance
Provision
Charge-offs
Recoveries
Ending balance
Acquired Loans - Real estate
Beginning balance	163	18	211	7
Provision	40	74	86	85
Charge-offs	(1)		(98)
Recoveries	1		4
Ending balance	203	92	203	92
Acquired Loans - Commercial and industrial
Beginning balance	141	45	24	14
Provision	299	(3)	413	21
Charge-offs	(414)		(415)
Recoveries	11	10	15	17
Ending balance	37	52	37	52
Acquired Loans - Municipal
Beginning balance
Provision
Charge-offs
Recoveries
Ending balance
Acquired Loans - Consumer
Beginning balance
Provision
Charge-offs
Recoveries
Ending balance
Acquired Loans - Unallocated
Beginning balance
Provision
Charge-offs
Recoveries
Ending balance
Acquired Loans - Total
Beginning balance	304	63	235	21
Provision	339	71	499	106
Charge-offs	(415)		(513)
Recoveries	12	10	19	17
Ending balance	$ 240	$ 144	$ 240	$ 144

LOANS - Composition of loans 36

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Activities Loans - Collectively evaluated Loans
Residential 1-4 family	$ 273,585	$ 253,156
Residential 5+ multifamily	5,471	4,640
Construction of residential 1-4 family	10,343	7,998
Home equity lines credit	33,958	34,298
Residential real estate	323,357	300,092
Commercial	146,144	125,173
Construction of commercial	9,232	6,403
Commercial real estate	155,376	131,576
Farm land	3,018	2,162
Vacant land	5,080	5,486
Real estate secured	486,831	439,316
Commercial and industrial	101,024	74,131
Municipal	9,005	9,566
Consumer	5,617	6,115
Unallocated allowance
Totals	602,477	529,128
Business Activities Loans - Collectively evaluated Allowance
Residential 1-4 family	1,574	1,415
Residential 5+ multifamily	39	33
Construction of residential 1-4 family	77	65
Home equity lines credit	312	286
Residential real estate	2,002	1,799
Commercial	1,538	1,265
Construction of commercial	120	87
Commercial real estate	1,658	1,352
Farm land	25	23
Vacant land	121	122
Real estate secured	3,806	3,296
Commercial and industrial	850	673
Municipal	56	61
Consumer	89	124
Unallocated allowance	334	482
Totals	5,135	4,636
Business Activities Loans - Individually evaluated Loans
Residential 1-4 family	6,668	8,339
Residential 5+ multifamily	1,759	1,771
Construction of residential 1-4 family
Home equity lines credit	809	719
Residential real estate	9,236	10,829
Commercial	4,525	4,273
Construction of commercial	118	122
Commercial real estate	4,643	4,395
Farm land	1,018	1,031
Vacant land	3,069	3,077
Real estate secured	17,966	19,332
Commercial and industrial	85	526
Municipal
Consumer		80
Unallocated allowance
Totals	18,051	19,938
Business Activities Loans - Individually evaluated Allowance
Residential 1-4 family	230	610
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit	16	68
Residential real estate	246	678
Commercial	76	113
Construction of commercial		1
Commercial real estate	76	114
Farm land	6	14
Vacant land	14	29
Real estate secured	342	835
Commercial and industrial	1	10
Municipal
Consumer
Unallocated allowance
Totals	343	845
Business Activities Loans - Total portfolio Loans
Residential 1-4 family	280,253	261,495
Residential 5+ multifamily	7,230	6,411
Construction of residential 1-4 family	10,343	7,998
Home equity lines credit	34,767	35,017
Residential real estate	332,593	310,921
Commercial	150,669	129,446
Construction of commercial	9,350	6,525
Commercial real estate	160,019	135,971
Farm land	4,036	3,193
Vacant land	8,149	8,563
Real estate secured	504,797	458,648
Commercial and industrial	101,109	74,657
Municipal	9,005	9,566
Consumer	5,617	6,195
Unallocated allowance
Totals	620,528	549,066
Business Activities Loans - Total portfolio Allowance
Residential 1-4 family	1,804	2,025
Residential 5+ multifamily	39	33
Construction of residential 1-4 family	77	65
Home equity lines credit	328	354
Residential real estate	2,248	2,477
Commercial	1,614	1,378
Construction of commercial	120	88
Commercial real estate	1,734	1,466
Farm land	31	37
Vacant land	135	151
Real estate secured	4,418	4,131
Commercial and industrial	851	683
Municipal	56	61
Consumer	89	124
Unallocated allowance	334	482
Totals	5,478	5,481
Acquired Loans - Collectively evaluated Loans
Residential 1-4 family	6,470	7,023
Residential 5+ multifamily	5,837	6,136
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	12,307	13,159
Commercial	77,041	81,300
Construction of commercial	3,852	4,612
Commercial real estate	80,893	85,912
Farm land
Vacant land
Real estate secured	93,200	99,071
Commercial and industrial	31,592	45,650
Municipal
Consumer	52	61
Unallocated allowance
Totals	124,844	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	24	19
Construction of commercial	3	4
Commercial real estate	27	23
Farm land
Vacant land
Real estate secured	27	23
Commercial and industrial	27	24
Municipal
Consumer
Unallocated allowance
Totals	54	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	2,291	2,742
Construction of commercial	258	262
Commercial real estate	2,549	3,004
Farm land
Vacant land
Real estate secured	3,451	3,780
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	3,451	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	26	107
Construction of commercial
Commercial real estate	26	107
Farm land
Vacant land
Real estate secured	95	186
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	95	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	4,783	4,787
Construction of commercial
Commercial real estate	4,783	4,787
Farm land
Vacant land
Real estate secured	4,783	4,787
Commercial and industrial	349	1,114
Municipal
Consumer	16	16
Unallocated allowance
Totals	5,148	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	81	2
Construction of commercial
Commercial real estate	81	2
Farm land
Vacant land
Real estate secured	81	2
Commercial and industrial	10
Municipal
Consumer
Unallocated allowance
Totals	91	2
Acquired Loans - Total portfolio Loans
Residential 1-4 family	7,249	7,799
Residential 5+ multifamily	5,960	6,136
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	13,209	13,935
Commercial	84,115	88,829
Construction of commercial	4,110	4,874
Commercial real estate	88,225	93,703
Farm land
Vacant land
Real estate secured	101,434	107,638
Commercial and industrial	31,941	46,764
Municipal
Consumer	68	77
Unallocated allowance
Totals	133,443	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	131	128
Construction of commercial	3	4
Commercial real estate	134	132
Farm land
Vacant land
Real estate secured	203	211
Commercial and industrial	37	24
Municipal
Consumer
Unallocated allowance
Totals	$ 240	$ 235

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Activities Loans - Collectively evaluated Loans
Performing loans	$ 597,508	$ 527,905
Potential problem loans	4,969	1,223
Impaired loans
Unallocated allowance
Totals	602,477	529,128
Business Activities Loans - Collectively evaluated Allowance
Performing loans	4,601	4,110
Potential problem loans	200	44
Impaired loans
Unallocated allowance	334	482
Totals	5,135	4,636
Business Activities Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	18,051	19,938
Unallocated allowance
Totals	18,051	19,938
Business Activities Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	343	845
Unallocated allowance
Totals	343	845
Business Activities Loans - Total portfolio Loans
Performing loans	597,508	527,905
Potential problem loans	4,696	1,223
Impaired loans	18,051	19,938
Unallocated allowance
Totals	620,528	549,066
Business Activities Loans - Total portfolio Allowance
Performing loans	4,601	4,110
Potential problem loans	200	44
Impaired loans	343	845
Unallocated allowance	334	482
Totals	5,478	5,481
Acquired Loans - Collectively evaluated Loans
Performing loans	127,619	148,580
Potential problem loans	2,373	2,119
Impaired loans
Unallocated allowance
Totals	129,992	150,699
Acquired Loans - Collectively evaluated Allowance
Performing loans	70	46
Potential problem loans	75	2
Impaired loans
Unallocated allowance
Totals	145	48
Acquired Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	3,451	3,780
Unallocated allowance
Totals	3,451	3,780
Acquired Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	95	187
Unallocated allowance
Totals	95	187
Acquired Loans - Total portfolio Loans
Performing loans	127,619	148,580
Potential problem loans	2,373	2,119
Impaired loans	3,451	3,780
Unallocated allowance
Totals	133,443	154,479
Acquired Loans - Total portfolio Allowance
Performing loans	70	46
Potential problem loans	75	2
Impaired loans	95	187
Unallocated allowance
Totals	$ 240	$ 235

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book
Residential 1-4 family	$ 5,760	$ 7,482
Home equity lines of credit	416	535
Residential real estate	6,176	8,017
Commercial	3,629	3,131
Commercial construction		122
Farm land	722	733
Vacant land	2,870	2,870
Real estate secured	13,397	14,873
Commercial and industrial	4	95
Consumer
Totals	13,401	14,968
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note
Residential 1-4 family	6,209	8,094
Home equity lines of credit	436	659
Residential real estate	6,645	8,753
Commercial	3,993	3,405
Commercial construction		128
Farm land	760	773
Vacant land	3,881	3,836
Real estate secured	15,279	16,895
Commercial and industrial	4	98
Consumer
Totals	15,283	16,993
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	6,738	6,449
Home equity lines of credit	485	260
Residential real estate	7,223	6,709
Commercial	3,309	2,850
Commercial construction	103	9
Farm land	319	400
Vacant land	2,870	3,015
Real estate secured	13,824	12,983
Commercial and industrial	55	145
Consumer
Totals	13,879	13,128
Business Activities Loans - Impaired loans with specific allowance - Specific allowance
Residential 1-4 family	230	610
Home equity lines of credit	16	68
Residential real estate	246	678
Commercial	76	113
Commercial construction		1
Farm land	6	14
Vacant land	14	29
Real estate secured	342	835
Commercial and industrial	1	10
Consumer
Totals	343	845
Business Activities Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family	42	167
Home equity lines of credit	1	9
Residential real estate	43	176
Commercial	45	123
Commercial construction		7
Farm land		25
Vacant land	1	3
Real estate secured	89	334
Commercial and industrial		4
Consumer
Totals	89	338
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential 1-4 family	2,667	2,628
Home equity lines of credit	393	184
Residential real estate	3,060	2,812
Commercial	896	1,142
Commercial construction	118
Farm land	296	298
Vacant land	199	207
Real estate secured	4,569	4,459
Commercial and industrial	81	431
Consumer		80
Totals	4,650	4,970
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential 1-4 family	2,883	2,770
Home equity lines of credit	421	199
Residential real estate	3,304	2,969
Commercial	1,152	1,393
Commercial construction	125
Farm land	361	352
Vacant land	235	241
Real estate secured	5,177	4,955
Commercial and industrial	109	481
Consumer		108
Totals	5,286	5,544
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	2,748	3,089
Home equity lines of credit	329	423
Residential real estate	3,077	3,512
Commercial	1,068	1,624
Commercial construction	17	116
Farm land	706	461
Vacant land	203	72
Real estate secured	5,071	5,785
Commercial and industrial	276	383
Consumer	11	12
Totals	5,358	6,180
Business Activities Loans - Impaired loans with no specific allowance - Income recognized
Residential 1-4 family	39	98
Home equity lines of credit	2	2
Residential real estate	41	100
Commercial	15	49
Commercial construction	4
Farm land
Vacant land		9
Real estate secured	60	158
Commercial and industrial	1	22
Consumer		1
Totals	61	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	181	675
Commercial construction
Farm land
Vacant land
Real estate secured	783	1,274
Commercial and industrial
Consumer
Totals	783	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	283	826
Commercial construction
Farm land
Vacant land
Real estate secured	999	1,542
Commercial and industrial
Consumer
Totals	999	1,542
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average
Residential 1-4 family	627	273
Home equity lines of credit
Residential real estate	627	273
Commercial	412	698
Commercial construction
Farm land
Vacant land
Real estate secured	1,039	971
Commercial and industrial	142	6
Consumer
Totals	1,181	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	26	107
Commercial construction
Farm land
Vacant land
Real estate secured	95	186
Commercial and industrial
Consumer
Totals	95	186
Acquired Loans - Impaired loans with specific allowance - Income recognized
Residential 1-4 family	3
Home equity lines of credit
Residential real estate	3
Commercial	10	34
Commercial construction
Farm land
Vacant land
Real estate secured	13	34
Commercial and industrial
Consumer
Totals	13	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	2,110	2,067
Commercial construction	258	262
Farm land
Vacant land
Real estate secured	2,668	2,506
Commercial and industrial
Consumer
Totals	2,668	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	2,663	2,843
Commercial construction	272	273
Farm land
Vacant land
Real estate secured	3,235	3,293
Commercial and industrial	591	4
Consumer
Totals	3,826	3,297
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential 1-4 family	279	376
Home equity lines of credit
Residential real estate	279	376
Commercial	2,140	2,011
Commercial construction	259	167
Farm land
Vacant land
Real estate secured	2,678	2,554
Commercial and industrial	35
Consumer
Totals	2,713	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	65	32
Commercial construction		22
Farm land
Vacant land
Real estate secured	65	61
Commercial and industrial	22
Consumer
Totals	$ 87	$ 61

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 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	$ 578	$ 511
Loans collateralized by residential real estate property in the process of foreclosure	$ 2,736

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	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2014	Dec. 31, 2015
Residential mortgage loans serviced for others	$ 128,141	$ 135,831
Fair value of mortgage servicing rights	$ 961		$ 1,383

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Mortgage Servicing Rights
Balance, beginning of period		$ 456	$ 637	$ 487	$ 694
Originated		24	40	45	102
Amortization (1)	[1]	(64)	(78)	(116)	(197)
Balance, end of period		416	599	416	599
Valuation Allowance
Balance, beginning of period		(24)	(9)	(4)
(Increase) decrease in impairment reserve (1)	[1]	(1)	7	(21)	(2)
Balance, end of period		(25)	(2)	(25)	(2)
Loan servicing rights, net		$ 391	$ 597	$ 391	$ 597
[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	Jun. 30, 2016	Dec. 31, 2015
Securities available-for-sale (at fair value)	$ 65,674	$ 67,750
Loans receivable	162,232	153,269
Total pledged assets	$ 227,906	$ 221,019

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Jun. 30, 2016USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 59,300
Securities pledged to secure repurchase agreements	6,300
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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income	$ 1,735	$ 2,072	$ 3,247	$ 4,306
Less: Preferred stock dividends declared		(40)		(80)
Net income available to common shareholders	1,735	2,032	3,247	4,226
Less: Undistributed earnings allocated to participating securities	(13)	(18)	(27)	(37)
Net income allocated to common stock	1,722	2,014	3,220	4,189
Weighted-average common shares issued	2,756	2,730	2,751	2,727
Less: Unvested restricted stock awards	(21)	(24)	(22)	(24)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,735	2,706	2,729	2,703
Add: Dilutive effect of stock options	15	18	16	17
Weighted-average common shares outstanding used to calculate diluted earnings per common share	$ 2,750	$ 2,724	$ 2,745	$ 2,720
Earnings per common share (basic)	$ .63	$ .74	$ 1.18	$ 1.55
Earnings per common share (diluted)	$ .63	$ .74	$ 1.17	$ 1.54

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 93,863	$ 92,030
Actual - Ratio	13.08%	13.51%
For Capital Adequacy - Amount	$ 57,390	$ 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	$ 77,922	$ 76,120
Actual - Ratio	10.86%	11.17%
For Capital Adequacy - Amount	$ 43,042	$ 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	$ 77,922	$ 76,120
Actual - Ratio	10.86%	11.17%
For Capital Adequacy - Amount	$ 39,997	$ 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	$ 77,922	$ 76,120
Actual - Ratio	8.77%	8.56%
For Capital Adequacy - Amount	$ 35,553	$ 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	$ 91,122
Actual - Ratio		13.10%	12.70%
For Capital Adequacy - Amount		$ 54,504	$ 57,390
For Capital Adequacy - Ratio		8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 68,131	$ 71,738
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	$ 85,181
Actual - Ratio		12.23%	11.87%
For Capital Adequacy - Amount		$ 40,878	$ 43,043
For Capital Adequacy - Ratio		6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 54,504	$ 57,390
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	$ 85,181
Actual - Ratio		12.23%	11.87%
For Capital Adequacy - Amount		$ 30,659	$ 39,997
For Capital Adequacy - Ratio		4.50%	4.50%
To Be Well Capitalized - Amount		$ 44,285	$ 57,772
To Be Well Capitalized - Ratio		6.50%	6.50%
Tier 1 Capital (to average assets)
Actual - Amount		$ 83,340	$ 85,181
Actual - Ratio		9.37%	9.58%
For Capital Adequacy - Amount		$ 35,593	$ 35,553
For Capital Adequacy - Ratio		4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 44,491	$ 44,441
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		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 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	$ 173	$ 189	$ 389	$ 351
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	19	14	38	31
Excess assets distributed to 401k and ESOP for future allocations to employees					$ 1,018
Employee Stock Ownership Plan (ESOP)
ESOP expense	45	96	81	192
Other Retirement Plans
Discretionary contribution to Executives' account	10	8	20	18
Phantom Stock Appreciation Units granted							47,470
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	46	42	93	84
Unrecognized compensation cost relating to awards	$ 483	$ 229	$ 483	$ 229
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	Jun. 30, 2016	Dec. 31, 2015
Unrealized gains on securities available-for-sale, net of tax	$ 1,108	$ 1,125
Accumulated other comprehensive income, net	$ 1,108	$ 1,125

FAIR VALUE OF ASSETS AND LIAB49

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 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
Corporate bonds
Preferred stock	342	246
Securities available-for-sale	342	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	10,015	2,541
U.S. Government agency notes		498
Municipal bonds	20,949	30,385
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	38,641	32,202
Collateralized mortgage obligations: U.S. Government agencies	1,740	2,014
Collateralized mortgage obligations: Non-agency	4,312	4,948
SBA bonds	2,654	3,096
CRA mutual funds	788	764
Corporate bonds	997
Preferred stock
Securities available-for-sale	80,096	76,448
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Mortgage servicing rights	961
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
Corporate bonds
Preferred stock
Securities available-for-sale
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	13,743	15,211
Mortgage servicing rights		1,315
Assets at fair value
Assets at fair value on a recurring basis
U.S. Treasury notes	10,015	2,541
U.S. Government agency notes		498
Municipal bonds	20,949	30,385
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	38,641	32,202
Collateralized mortgage obligations: U.S. Government agencies	1,740	2,014
Collateralized mortgage obligations: Non-agency	4,312	4,948
SBA bonds	2,654	3,096
CRA mutual funds	788	764
Corporate bonds	997
Preferred stock	342	246
Securities available-for-sale	80,438	76,694
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	13,743	15,211
Mortgage servicing rights	$ 961	$ 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	Jun. 30, 2016	Dec. 31, 2015
Carrying value
Financial Assets
Cash and cash equivalents	$ 31,498	$ 62,118
Securities available-for-sale	80,438	76,694
Federal Home Loan Bank stock	3,436	3,176
Loans receivable, net	749,523	699,018
Accrued interest receivable	2,217	2,307
Cash surrender value of life insurance	13,862	13,685
Mortgage servicing rights	391	597
Financial Liabilities
Demand (non-interest-bearing)	189,182	201,340
Demand (interest-bearing)	120,142	125,465
Money market	197,869	183,783
Savings and other	124,019	119,651
Certificates of deposit	123,259	124,294
Deposits	754,471	754,533
Repurchase agreements	3,355	3,914
FHLBB advances	47,083	26,979
Subordinated debt	9,776	9,764
Note payable	358	376
Capital lease liability	420	422
Accrued interest payable	118	150
Estimated fair value
Financial Assets
Cash and cash equivalents	31,498	62,118
Securities available-for-sale	80,438	76,694
Federal Home Loan Bank stock	3,436	3,176
Loans receivable, net	754,270	707,154
Accrued interest receivable	2,217	2,307
Cash surrender value of life insurance	13,862	13,685
Mortgage servicing rights	961	1,383
Financial Liabilities
Demand (non-interest-bearing)	189,182	201,340
Demand (interest-bearing)	120,142	125,465
Money market	197,869	183,783
Savings and other	124,019	119,651
Certificates of deposit	124,556	125,437
Deposits	755,768	755,676
Repurchase agreements	3,355	3,914
FHLBB advances	49,154	28,559
Subordinated debt	10,162	9,764
Note payable	385	405
Capital lease liability	903	870
Accrued interest payable	118	150
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	31,498	62,118
Securities available-for-sale	342	246
Federal Home Loan Bank stock
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance	13,862	13,685
Mortgage servicing rights
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	80,096	76,448
Federal Home Loan Bank stock	3,436	3,176
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance
Mortgage servicing rights	961	1,383
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 receivable, net	754,270	707,154
Accrued interest receivable	2,217	2,307
Cash surrender value of life insurance
Mortgage servicing rights
Financial Liabilities
Demand (non-interest-bearing)	189,182	201,340
Demand (interest-bearing)	120,142	125,465
Money market	197,869	183,783
Savings and other	124,019	119,651
Certificates of deposit	124,556	125,437
Deposits	755,768	755,676
Repurchase agreements	3,355	3,914
FHLBB advances	49,154	28,559
Subordinated debt	10,162	9,764
Note payable	385	405
Capital lease liability	903	870
Accrued interest payable	$ 118	$ 150