Salisbury Bancorp (SAL) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
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, 2017
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		2,785,066
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 5,920	$ 5,434
Interest bearing demand deposits with other banks	55,472	30,051
Total cash and cash equivalents	61,392	35,485
Securities
Available-for-sale at fair value	81,016	79,623
Federal Home Loan Bank of Boston stock at cost	3,452	3,211
Loans held-for-sale	594
Loans receivable, net (allowance for loan losses: $6,493 and $6,127)	771,850	763,184
Other real estate owned	3,854	3,773
Bank premises and equipment, net	16,149	14,398
Goodwill	13,827	12,552
Intangible assets (net of accumulated amortization: $3,764 and $3,511)	2,116	1,737
Accrued interest receivable	2,303	2,424
Cash surrender value of life insurance policies	14,211	14,038
Deferred taxes	1,320	1,367
Other assets	2,722	3,574
Total Assets	974,806	935,366
Deposits
Demand (non-interest bearing)	219,660	218,420
Demand (interest bearing)	132,899	127,854
Money market	194,704	182,476
Savings and other	145,937	135,435
Certificates of deposit	118,141	117,585
Total deposits	811,341	781,770
Repurchase agreements	2,126	5,535
Federal Home Loan Bank of Boston advances	47,302	37,188
Subordinated debt	9,799	9,788	[1]
Note payable	327	344
Capital lease liability	1,987	418
Accrued interest and other liabilities	5,379	6,316
Total Liabilities	878,261	841,359
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,785,066 and 2,758,086	279	276
Paid-in capital	42,984	42,085
Retained earnings	53,453	51,521
Unearned compensation - restricted stock awards	(738)	(352)
Accumulated other comprehensive income, net	567	477
Total Shareholders' Equity	96,545	94,007
Total Liabilities and Shareholders' Equity	$ 974,806	$ 935,366
[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, 2017	Dec. 31, 2016
ASSETS
Allowance for loan losses, loans receivable	$ 6,493	$ 6,127
Accumulated amortization, intangible assets	$ 3,764	$ 3,511
Shareholders' Equity
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,785,066	2,758,086

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest and dividend income
Interest and fees on loans	$ 8,235	$ 7,938	$ 16,577	$ 15,869
Interest on debt securities
Taxable	354	286	672	579
Tax exempt	113	237	277	523
Other interest and dividends	94	60	176	134
Total interest and dividend income	8,796	8,521	17,702	17,105
Interest expense
Deposits	578	529	1,094	1,037
Repurchase agreements	1	1	1	2
Capital lease	20	17	37	35
Note payable	5	6	7	11
Subordinated debt	156	156	312	312
Federal Home Loan Bank of Boston advances	266	245	528	476
Total interest expense	1,026	954	1,979	1,873
Net interest and dividend income	7,770	7,567	15,723	15,232
Provision for loan losses	364	525	716	988
Net interest and dividend income after provision for loan losses	7,406	7,042	15,007	14,244
Non-interest income
Trust and wealth advisory	892	884	1,746	1,668
Service charges and fees	902	753	1,863	1,455
Gains on sales of mortgage loans, net	30	57	79	96
Mortgage servicing, net	31	45	76	79
(Loss)/gains and write-downs on sales and calls of available-for-sale securities, net	(14)	146	(14)	148
Other	110	115	223	229
Total non-interest income	1,951	2,000	3,973	3,675
Non-interest expense
Salaries	2,777	2,687	5,667	5,261
Employee benefits	831	910	1,919	1,998
Premises and equipment	907	844	1,802	1,739
Data processing	504	449	977	896
Professional fees	764	564	1,481	944
Collections, OREO and loan related	155	125	456	311
FDIC insurance	98	176	247	310
Marketing and community support	152	180	403	380
Amortization of core deposit intangibles	126	152	252	307
Other	546	551	1,081	1,330
Total non-interest expense	6,860	6,638	14,285	13,476
Income before income taxes	2,497	2,404	4,695	4,443
Income tax provision	615	669	1,208	1,196
Net income	1,882	1,735	3,487	3,247
Net income allocated to common stock	$ 1,867	$ 1,721	$ 3,461	$ 3,220
Basic earnings per common share	$ 0.68	$ .63	$ 1.26	$ 1.18
Weighted average common shares outstanding, to calculate basic earnings per share	2,757	2,734	2,753	2,729
Diluted earnings per common share	$ 0.67	$ .63	$ 1.25	$ 1.17
Weighted average common shares outstanding, to calculate diluted earnings per share	2,775	2,749	2,772	2,745
Common dividends per share	$ 0.28	$ .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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net income		$ 1,882	$ 1,735	$ 3,487	$ 3,247
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale		106	190	122	122
Reclassification of net realized losses (gains) and write-downs in net income	[1]	14	(146)	14	(148)
Unrealized gains (losses) on securities available-for-sale		120	44	136	(26)
Income tax (expense) benefit		(40)	(15)	(46)	9
Unrealized gains (losses) on securities available-for-sale, net of tax		80	29	90	(17)
Comprehensive income		$ 1,962	$ 1,764	$ 3,577	$ 3,230
[1]	(1) Reclassification adjustments include realized security gains and losses. The gains and losses have been reclassified out of other comprehensive income (loss) and have affected certain lines in the consolidated statements of income as follows: The 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. The net tax effect for the three months ending June 30th 2017 and 2016 are $5 thousand and ($50) thousand respectively. The net tax effect for the six month periods ending June 30th are the same.

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Paid-in capital	Retained earnings	Unearned compensation - restricted stock awards	Accumulated other comprehensive income	Total shareholders' equity
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 for the period			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
Balance - Beginning, amount at Dec. 31, 2016	$ 276	42,085	51,521	(352)	477	94,007
Balance - Beginning, shares at Dec. 31, 2016	2,758,086
Net income for the period			3,487			3,487
Other comprehensive loss, net of tax					90	90
Common stock dividends declared			(1,555)			(1,555)
Stock options exercised, amount	$ 1	312				313
Stock options exercised, shares	12,150
Issuance of restricted stock awards, amount	$ 2	426		(428)
Issuance of restricted stock awards, shares	10,950
Forfeiture of restricted stock awards, amount		(3)		3
Forfeiture of restricted stock awards, shares	(200)
Issuance of vested common stock for directors, amount		81				81
Issuance of vested common stock for directors, shares	2,056
Issuance of director's restricted stock awards, amount		83		(83)
Issuance of director's restricted stock awards, shares	2,024
Stock based compensation - restricted stock awards				122		122
Balance - Ending, amount at Jun. 30, 2017	$ 279	$ 42,984	$ 53,453	$ (738)	$ 567	$ 96,545
Balance - Ending, shares at Jun. 30, 2017	2,785,066

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net income	$ 3,487	$ 3,247
(Accretion), amortization and depreciation:
Securities	77	133
Bank premises and equipment	648	604
Core deposit intangible	253	307
Modification fees on Federal Home Loan Bank of Boston advances	114	116
Subordinated debt issuance costs	11	12
Mortgage servicing rights	136	116
Fair value adjustment on loans	(744)	(988)
Fair value adjustment on deposits	(47)	(72)
(Gains) and losses, including write-downs
Loss (gain) and write-downs on sales and calls of securities, available-for-sale, net	14	(148)
Gains on sales of loans, excluding capitalized servicing rights	(59)	(96)
Write-downs of other real estate owned	145
Loss on sale/disposals of premises and equipment	1	13
Provision for loan losses	716	988
Proceeds from loans sold	3,463	2,048
Loans originated for sale	(3,998)	(1,189)
Decrease (increase) in deferred loan origination fees and costs, net	47	(81)
Mortgage servicing rights originated	(38)	(45)
Increase in mortgage servicing rights impairment reserve	1	21
Decrease in interest receivable	133	90
(Increase) decrease in prepaid expenses	(104)	64
Increase in cash surrender value of life insurance policies	(173)	(177)
Decrease in income tax receivable	76	414
Decrease in other assets	802	234
Decrease in accrued expenses	(996)	(32)
Decrease in interest payable	(2)	(32)
Increase in other liabilities	58	890
Stock based compensation - restricted stock awards	122	93
Net cash provided by operating activities	4,143	6,530
Investing Activities
Purchase of Federal Home Loan Bank of Boston stock, net of redemptions	(241)	(260)
Purchases of securities available-for-sale	(25,116)	(32,536)
Proceeds from sales of securities available for sale		3,800
Proceeds from calls of securities available-for-sale	9,221	9,661
Proceeds from maturities of securities available-for-sale	14,547	15,320
Loan originations and principle collections, net	(2,091)	(50,488)
Recoveries of loans previously charged off	100	64
Proceeds from sales of other real estate owned	177
Capital expenditures	(795)	(817)
Cash and cash equivalents acquired from acquisition	22,375
Net cash provided (utilized) by investing activities	18,177	(55,256)
Financing Activities
(Decrease) increase in deposit transaction accounts, net	(2,418)	973
Increase (decrease) in time deposits, net	603	(963)
Decrease in securities sold under agreements to repurchase, net	(3,409)	(559)
Federal Home Loan Bank of Boston advances	10,000	19,994
Principal payments on Federal Home Loan Bank of Boston advances		(6)
Principal payments on note payable	(17)	(18)
Decrease in capital lease obligation	(11)	(2)
Stock options exercised	313	87
Issuance of shares for directors' fees	81	142
Common stock dividends paid	(1,555)	(1,542)
Net cash provided (utilized) by financing activities	3,587	18,106
Net increase (decrease) in cash and cash equivalents	25,907	(30,620)
Cash and cash equivalents, beginning of period	35,485	62,118
Cash and cash equivalents, end of period	61,392	31,498
Cash paid during year
Interest	1,903	1,977
Income taxes	1,133	782
Non-cash investing and financing activities
Transfer from loans to other real estate owned	403
Empire State Bank branch acquisition
Cash and cash equivalents acquired	22,375
Net loans acquired	7,097
Fixed assets acquired (including capital lease)	1,605
Accrued interest receivable acquired	12
Other assets acquired	20
Core deposit intangible	632
Goodwill	1,275
Deposits assumed	31,433
Capital lease assumed	1,580
Other liabilities assumed	$ 3

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2017
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2016 Annual Report on Form 10-K for the year ended December 31, 2016. The allowance for loan losses is a significant accounting policy and is presented in the Notes to Consolidated Financial Statements and in Management’s Discussion and Analysis, which provides information on how significant assets are valued in the financial statements and how those values are determined. Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions and estimates underlying those amounts, management has identified the determination of the allowance for loan losses to be the accounting area that requires the most subjective judgments, and as such could be most subject to revision as new information becomes available. Impact of New Accounting Pronouncements Issued In May 2014, August 2015, May 2016, and December 2016, respectively, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, 2015-14, 2016-12, and 2016-20, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but rather affect only certain narrow aspects aimed to reduce the potential for diversity in practice at initial application and the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in ASU 2016-20 include technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. Salisbury is currently reviewing ASU 2014-09, 2015-14, 2016-12, and 2016-20 to determine if they will have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments –overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of adoption only for provisions (3) and (6) above. Early adoption of the other provisions mentioned above is not permitted. Salisbury does not expect ASU No. 2016-01 to have a material impact on the Company's Consolidated Financial Statements; however, the Company will continue to closely monitor developments and additional guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. Salisbury is currently evaluating this ASU to determine the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. Salisbury has opted to recognize forfeitures as they occur as the impact is not expected to be material. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, but all of the guidance must be adopted in the same period. Salisbury adopted ASU 2016-09 as of January 1, 2017. Adoption did not have a material effect on the financial results for the first quarter of 2017 and contributed a $105 thousand benefit to the tax provision in the second quarter 2017. 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. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Salisbury is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. I n January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU are intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when a set of inputs, processes, and outputs is not a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance, or for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. Entities should apply the guidance prospectively on or after the effective date. Salisbury is currently evaluating the provisions of ASU 2017-01 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU is intended to allow companies to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Entities should apply the guidance prospectively. Salisbury is currently evaluating the provisions of ASU 2017-04 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU will amend the amortization period for certain purchased callable debt securities held at a premium. The Board is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2017-08 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” This ASU will provide clarity in the accounting guidance regarding a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury is currently evaluating the provisions of ASU 2017-09 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value June 30, 2017 Available-for-sale Municipal bonds $ 6,528 $ 71 $ — $ 6,599 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 48,866 271 173 48,964 Collateralized mortgage obligations U.S. Government agencies 8,694 66 1 8,759 Non-agency 2,733 419 8 3,144 SBA bonds 10,488 23 3 10,508 CRA mutual funds 842 — 11 831 Corporate bonds 2,000 45 — 2,045 Preferred stock 7 159 — 166 Total securities available-for-sale $ 80,158 $ 1,054 $ 196 $ 81,016 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,452 $ — $ — $ 3,452 (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2016 Available-for-sale Municipal bonds $ 15,800 $ 197 $ 1 $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 53,407 229 335 53,301 Collateralized mortgage obligations: U.S. Government agencies 1,470 4 — 1,474 Non-agency 3,327 414 6 3,735 SBA bonds 2,056 9 1 2,064 CRA mutual funds 834 — 16 818 Corporate bonds 2,000 16 3 2,013 Preferred stock 7 215 — 222 Total securities available-for-sale $ 78,901 $ 1,084 $ 362 $ 79,623 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,211 $ — $ — $ 3,211 (1) Net of other-than-temporary impairment write-downs recognized in earnings. Salisbury did not sell any available-for-sale securities during the six month period ended June 30, 2017. Salisbury sold $3.6 million of securities available-for-sale during the six month period ended June 30, 2016 realizing a pre-tax gain of $148 thousand and related tax expense of $50 thousand. 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 (loss), the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: June 30, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Mortgage-backed securities $ 15,685 $ 109 $ 10,615 $ 64 $ 26,300 $ 173 Collateralized mortgage obligations: Non-agency 2,526 1 286 3 2,812 4 SBA bonds 2,669 3 44 — 2,713 3 CRA funds 831 11 — — 831 11 Total temporarily impaired securities 21,711 124 10,945 67 32,656 191 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 120 5 — — 120 5 Total temporarily impaired and other-than-temporarily impaired securities $ 21,831 $ 129 $ 10,945 $ 67 $ 32,776 $ 196 December 31, 2016 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Municipal bonds $ 517 $ 1 $ — $ — $ 517 $ 1 Mortgage-backed securities 34,758 329 249 6 35,007 335 Collateralized mortgage obligations: Non-agency 60 — 339 5 399 5 SBA bonds 475 1 — — 475 1 CRA funds 818 16 — — 818 16 Corporate bonds 498 3 — — 498 3 Total temporarily impaired securities 37,126 350 588 11 37,714 361 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 174 1 — — 174 1 Total temporarily impaired and other-than-temporarily impaired securities $ 37,300 $ 351 $ 588 $ 11 $ 37,888 $ 362 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: June 30, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 257 $ 258 4.55 % After 1 year but within 5 years 543 547 3.25 After 10 years but within 15 years 2,661 2,684 4.48 After 15 years 3,067 3,110 4.51 Total 6,528 6,599 4.40 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 48,866 48,964 2.33 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 8,694 8,759 2.64 Non-agency 2,733 3,144 3.99 SBA bonds 10,488 10,508 2.99 CRA mutual funds 842 831 5.01 Corporate bonds After 5 years but within 10 years 2,000 2,045 5.50 Preferred stock 7 166 5.48 Securities available-for-sale $ 80,158 $ 81,016 2.78 % (1) Yield is based on amortized cost. Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at June 30, 2017. U.S. Government agency mortgage-backed securities: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider the twenty-four securities with unrealized losses at June 30, 2017 to be OTTI. SBA bonds: The contractual cash flows are guaranteed by the U.S. government. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality since time of purchase. 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 evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses on six positions were temporary in nature and does not consider these investments to be other-than temporarily impaired at June 30, 2017. Non-agency CMOs: Salisbury performed a detailed cash flow analysis of its non-agency CMOs at June 30, 2017, 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, 2017. It is possible that future loss assumptions could change necessitating Salisbury to recognize future OTTI for further deterioration in credit quality. Salisbury evaluates these securities for strategic fit and depending upon such factor could reduce its position in these securities, although it has no present intention to do so, and it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis. CRA mutual funds consist of an investment in a fixed income mutual fund ($831 thousand in total fair value and $11 thousand in total unrealized losses as of June 30, 2017). The severity of the impairment (fair value is approximately 1.32% less than cost) and the duration of the impairment correlates with interest rates in 2017. Salisbury evaluated the near-term prospects of this fund in relation to the severity and duration of the impairment. Based on that evaluation, Salisbury does not consider this investment to be OTTI at June 30, 2017. 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) 2017 2016 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, 2017. 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, 2017
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: June 30, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 300,750 $ 5,687 $ 306,437 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 11,472 5,456 16,928 7,976 5,649 13,625 Construction of residential 1-4 family 10,376 — 10,376 10,951 — 10,951 Home equity lines of credit 35,806 — 35,806 35,487 — 35,487 Residential real estate 358,404 11,143 369,547 349,444 11,747 361,191 Commercial 175,469 70,146 245,615 155,628 79,854 235,482 Construction of commercial 5,570 1,724 7,294 3,481 1,917 5,398 Commercial real estate 181,039 71,870 252,909 159,109 81,771 240,880 Farm land 4,453 — 4,453 3,914 — 3,914 Vacant land 6,969 — 6,969 6,600 — 6,600 Real estate secured 550,865 83,013 633,878 519,067 93,518 612,585 Commercial and industrial 110,424 15,222 125,646 121,144 20,329 141,473 Municipal 12,737 — 12,737 8,626 — 8,626 Consumer 4,826 56 4,882 5,312 68 5,380 Loans receivable, gross 678,852 98,291 777,143 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,200 — 1,200 1,247 — 1,247 Allowance for loan losses (6,186 ) (307 ) (6,493 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 673,866 $ 97,984 $ 771,850 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 594 $ — $ 594 $ — $ — $ — 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, 2017 Residential 1-4 family $ 291,306 $ 6,030 $ 3,414 $ — $ — $ 300,750 Residential 5+ multifamily 9,473 1,841 158 — — 11,472 Construction of residential 1-4 family 10,376 — — — — 10,376 Home equity lines of credit 34,709 819 278 — — 35,806 Residential real estate 345,864 8,690 3,850 — — 358,404 Commercial 165,520 3,675 6,274 — — 175,469 Construction of commercial 5,458 — 112 — — 5,570 Commercial real estate 170,978 3,675 6,386 — — 181,039 Farm land 3,467 — 986 — — 4,453 Vacant land 6,888 81 — — — 6,969 Real estate secured 527,197 12,446 11,222 — — 550,865 Commercial and industrial 108,798 1,337 289 — — 110,424 Municipal 12,737 — — — — 12,737 Consumer 4,809 17 — — — 4,826 Loans receivable, gross $ 653,541 $ 13,800 $ 11,511 $ — $ — $ 678,852 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2017 Residential 1-4 family $ 5,534 $ 105 $ 48 $ — $ — $ 5,687 Residential 5+ multifamily 5,456 — — — — 5,456 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 10,990 105 48 — — 11,143 Commercial 63,060 2,539 4,547 — — 70,146 Construction of commercial 1,466 — 258 — — 1,724 Commercial real estate 64,526 2,539 4,805 — — 71,870 Farm land — — — — — — Vacant land — — — — — — Real estate secured 75,516 2,644 4,853 — — 83,013 Commercial and industrial 14,247 915 58 2 — 15,222 Municipal — — — — — — Consumer 54 2 — — — 56 Loans receivable, gross $ 89,817 $ 3,561 $ 4,911 $ 2 $ — $ 98,291 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 285,939 $ 6,170 $ 2,832 $ 89 $ — $ 295,030 Residential 5+ multifamily 5,907 1,906 163 — — 7,976 Construction of residential 1-4 family 10,951 — — — — 10,951 Home equity lines credit 34,299 512 676 — — 35,487 Residential real estate 337,096 8,588 3,671 89 — 349,444 Commercial 145,849 3,759 6,020 — — 155,628 Construction of commercial 3,366 — 115 — — 3,481 Commercial real estate 149,215 3,759 6,135 — — 159,109 Farm land 2,912 — 1,002 — — 3,914 Vacant land 6,513 87 — — — 6,600 Real estate secured 495,736 12,434 10,808 89 — 519,067 Commercial and industrial 118,804 1,734 606 — — 121,144 Municipal 8,626 — — — — 8,626 Consumer 5,288 24 — — — 5,312 Loans receivable, gross $ 628,454 $ 14,192 $ 11,414 $ 89 $ — $ 654,149 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 5,989 $ 109 $ — $ — $ — $ 6,098 Residential 5+ multifamily 5,649 — — — — 5,649 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,638 109 — — — 11,747 Commercial 70,007 4,059 5,788 — — 79,854 Construction of commercial 1,659 — 258 — — 1,917 Commercial real estate 71,666 4,059 6,046 — — 81,771 Farm land — — — — — — Vacant land — — — — — — Real estate secured 83,304 4,168 6,046 — — 93,518 Commercial and industrial 19,110 1,160 59 — — 20,329 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 102,479 $ 5,331 $ 6,105 $ — $ — $ 113,915 The composition of loans receivable by delinquency status is as follows: Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over June 30, 2017 Residential 1-4 family $ 297,988 $ 184 $ 1,073 $ 160 $ 1,345 $ 2,762 $ 89 $ 1,934 Residential 5+ multifamily 11,472 — — — — — — 158 Construction of residential 1-4 family 10,376 — — — — — — — Home equity lines of credit 35,562 144 100 — — 244 — 70 Residential real estate 355,398 328 1,173 160 1,345 3,006 89 2,162 Commercial 173,231 165 280 — 1,793 2,238 — 1,793 Construction of commercial 5,570 — — — — — — — Commercial real estate 178,801 165 280 — 1,793 2,238 — 1,793 Farm land 3,730 — — — 723 723 — 986 Vacant land 6,969 — — — — — — — Real estate secured 544,898 493 1,453 160 3,861 5,967 89 4,941 Commercial and industrial 110,097 190 — 65 72 327 — 137 Municipal 12,737 — — — — — — — Consumer 4,823 1 2 — — 3 — — Loans receivable, gross $ 672,555 $ 684 $ 1,455 $ 225 $ 3,933 $ 6,297 $ 89 $ 5,078 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over June 30, 2017 Residential 1-4 family $ 5,598 $ 89 $ — $ — $ — $ 89 $ — $ — Residential 5+ multifamily 5,456 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,054 89 — — — 89 — — Commercial 67,058 — 720 1,000 1,368 3,088 1,000 1,368 Construction of commercial 1,466 — — — 258 258 — 258 Commercial real estate 68,524 — 720 1,000 1,626 3,346 1,000 1,626 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,578 89 720 1,000 1,626 3,435 1,000 1,626 Commercial and industrial 15,110 70 — 41 1 112 42 — Municipal — — — — — — — — Consumer 56 — — — — — — — Loans receivable, gross $ 94,744 $ 159 $ 720 $ 1,041 $ 1,627 $ 3,547 $ 1,042 $ 1,626 Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 291,941 $ 1,161 $ 213 $ 327 $ 1,388 $ 3,089 $ 236 $ 1,920 Residential 5+ multifamily 7,976 — — — — — — 163 Construction of residential 1-4 family 10,951 — — — — — — — Home equity lines of credit 35,190 155 88 — 54 297 — 519 Residential real estate 346,058 1,316 301 327 1,442 3,386 236 2,602 Commercial 152,905 451 250 1,793 229 2,723 — 2,022 Construction of commercial 3,481 — — — — — — — Commercial real estate 156,386 451 250 1,793 229 2,723 — 2,022 Farm land 2,402 789 — — 723 1,512 — 1,002 Vacant land 6,575 25 — — — 25 — — Real estate secured 511,421 2,581 551 2,120 2,394 7,646 236 5,626 Commercial and industrial 120,719 140 239 46 — 425 20 27 Municipal 8,626 — — — — — — — Consumer 5,268 26 15 3 — 44 — 4 Loans receivable, gross $ 646,034 $ 2,747 $ 805 $ 2,169 $ 2,394 $ 8,115 $ 256 $ 5,657 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 5,954 $ 144 $ — $ — $ — $ 144 $ — $ — Residential 5+ multifamily 5,649 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,603 144 — — — 144 — — Commercial 76,471 762 — 346 2,275 3,383 — 2,621 Construction of commercial 1,659 — — — 258 258 — 258 Commercial real estate 78,130 762 — 346 2,533 3,641 — 2,879 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 89,733 906 — 346 2,533 3,785 — 2,879 Commercial and industrial 19,904 425 — — — 425 — — Municipal — — — — — — — — Consumer 68 — — — — — — — Loans receivable, gross $ 109,705 $ 1,331 $ — $ 346 $ 2,533 $ 4,210 $ — $ 2,879 Interest on non-accrual loans that would have been recorded as additional interest income for the six months ended June 30, 2017 and 2016 had the loans been current in accordance with their original terms totaled $452 thousand and $578 thousand, respectively. Troubled Debt Restructurings Troubled debt restructurings occurring during the periods are as follows: Business Activities Loans Six months ended June 30, 2017 June 30, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 3 $ 316 $ 316 Commercial real estate 1 600 600 1 1,863 1,863 Troubled debt restructurings 1 $ 600 $ 600 4 $ 2,179 $ 2,179 Rate reduction and term extension — $ — $ — 2 $ 262 $ 262 Debt consolidation — — — 1 1,863 1,863 Term extension 1 600 600 1 54 54 Troubled debt restructurings 1 $ 600 $ 600 4 $ 2,179 $ 2,179 No acquired loans have been modified as a troubled debt restructure during the six months ended June 30, 2017 or June 30, 2016. 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, 2017 Three months ended June 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,482 $ (94 ) $ (37 ) $ 2 $ 2,353 $ — $ — $ — $ — $ — Commercial 1,752 347 — — 2,099 271 13 — 1 285 Land 189 (35 ) — — 154 — — — — — Real estate 4,423 218 (37 ) 2 4,606 271 13 — 1 285 Commercial and industrial 866 162 (56 ) 7 979 48 33 (64 ) 5 22 Municipal 55 (37 ) — — 18 — — — — — Consumer 92 (9 ) (15 ) 1 69 — — — — — Unallocated 530 (16 ) — — 514 — — — — — Totals $ 5,966 $ 318 $ (108 ) $ 10 $ 6,186 $ 319 $ 46 $ (64 ) $ 6 $ 307 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2017 Six months ended June 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 2 $ (80 ) $ 4 $ 2,353 $ — $ — $ — $ — $ — Commercial 1,683 454 (38 ) — 2,099 275 131 (150 ) 29 285 Land 198 (29 ) (15 ) — 154 — — — — — Real estate 4,308 427 (133 ) 4 4,606 275 131 (150 ) 29 285 Commercial and industrial 1,043 (56 ) (57 ) 49 979 36 41 (64 ) 9 22 Municipal 53 (35 ) — — 18 — — — — — Consumer 75 31 (46 ) 9 69 — — — — — Unallocated 337 177 — — 514 — — — — — Totals $ 5,816 $ 544 $ (236 ) $ 62 $ 6,186 $ 311 $ 172 $ (214 ) $ 38 $ 307 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 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, 2017 Residential 1-4 family $ 295,656 $ 1,782 $ 5,094 $ 135 $ 300,750 $ 1,917 Residential 5+ multifamily 9,712 114 1,760 2 11,472 116 Construction of residential 1-4 family 10,376 71 — — 10,376 71 Home equity lines of credit 35,624 248 182 1 35,806 249 Residential real estate 351,368 2,215 7,036 138 358,404 2,353 Commercial 171,448 1,990 4,021 64 175,469 2,054 Construction of commercial 5,458 44 112 — 5,570 44 Commercial real estate 176,906 2,034 4,133 64 181,039 2,098 Farm land 3,467 23 986 — 4,453 23 Vacant land 6,765 128 204 3 6,969 131 Real estate secured 538,506 4,400 12,359 205 550,865 4,605 Commercial and industrial 110,234 947 190 32 110,424 979 Municipal 12,737 18 — — 12,737 18 Consumer 4,826 69 — — 4,826 69 Unallocated allowance — 514 — — — 514 Totals $ 666,303 $ 5,948 $ 12,549 $ 237 $ 678,852 $ 6,185 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance June 30, 2017 Residential 1-4 family $ 5,687 $ — $ — $ — $ — $ — $ 5,687 $ — Residential 5+ multifamily 5,456 — — — — — 5,456 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,143 — — — — — 11,143 — Commercial 64,212 28 2,147 186 3,787 69 70,146 283 Construction of commercial 1,466 2 258 — — — 1,724 2 Commercial real estate 65,678 30 2,405 186 3,787 69 71,870 285 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 76,821 30 2,405 186 3,787 69 83,013 285 Commercial and industrial 15,097 11 — — 125 11 15,222 22 Municipal — — — — — — — — Consumer 41 — — — 15 — 56 — Unallocated allowance — — — — — — — — Totals $ 91,959 $ 41 $ 2,405 $ 186 $ 3,927 $ 80 $ 98,291 $ 307 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 289,900 $ 1,797 $ 5,130 $ 129 $ 295,030 $ 1,926 Residential 5+ multifamily 6,153 56 1,823 6 7,976 62 Construction of residential 1-4 family 10,951 91 — — 10,951 91 Home equity lines of credit 34,854 326 633 22 35,487 348 Residential real estate 341,858 2,270 7,586 157 349,444 2,427 Commercial 151,940 1,587 3,688 60 155,628 1,647 Construction of commercial 3,366 36 115 — 3,481 36 Commercial real estate 155,306 1,623 3,803 60 159,109 1,683 Farm land 2,912 28 1,002 — 3,914 28 Vacant land 6,390 166 210 4 6,600 170 Real estate secured 506,466 4,087 12,601 221 519,067 4,308 Commercial and industrial 121,060 1,043 84 — 121,144 1,043 Municipal 8,626 53 — — 8,626 53 Consumer 5,309 75 3 — 5,312 75 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 6,098 $ — $ — $ — $ — $ — $ 6,098 $ — Residential 5+ multifamily 5,649 — — — — — 5,649 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,747 — — — — — 11,747 — Commercial 72,569 22 3,388 191 3,897 59 79,854 272 Construction of commercial 1,659 3 258 — — — 1,917 3 Commercial real estate 74,228 25 3,646 191 3,897 59 81,771 275 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 85,975 25 3,646 191 3,897 59 93,518 275 Commercial and industrial 20,020 16 — — 309 20 20,329 36 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 106,047 $ 41 $ 3,646 $ 191 $ 4,222 $ 79 $ 113,915 $ 311 The credit quality segments of loans receivable and the allowance for loan losses are as follows: Business Activities Loans June 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 661,480 $ 5,226 $ — $ — $ 661,480 $ 5,226 Potential problem loans 4,823 208 — — 4,823 208 Impaired loans — — 12,549 238 12,549 238 Unallocated allowance — 514 — — — 514 Totals $ 666,303 $ 5,948 $ 12,549 $ 238 $ 678,852 $ 6,186 Acquired Loans June 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 93,380 $ 55 $ — $ — $ 93,380 $ 55 Potential problem loans 2,506 66 — — 2,506 66 Impaired loans — — 2,405 186 2,405 186 Unallocated allowance — — — — — — Totals $ 95,886 $ 121 $ 2,405 $ 186 $ 98,291 $ 307 Business Activities Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 636,645 $ 5,062 $ — $ — $ 636,645 $ 5,062 Potential problem loans 4,816 196 — — 4,816 196 Impaired loans — — 12,688 221 12,688 221 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 107,810 $ 55 $ — $ — $ 107,810 $ 55 Potential problem loans 2,459 65 — — 2,459 65 Impaired loans — — 3,646 191 3,646 191 Unallocated allowance — — — — — — Totals $ 110,269 $ 120 $ 3,646 $ 191 $ 113,915 $ 311 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or fair value of 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, 2017 Residential $ 3,395 $ 3,501 $ 3,451 $ 137 $ 53 $ 3,460 $ 4,198 $ 3,597 $ 57 Home equity lines of credit 47 49 99 1 1 135 186 183 10 Residential real estate 3,442 3,550 3,550 138 54 3,595 4,384 3,780 67 Commercial 1,571 1,612 2,108 64 30 2,450 2,959 1,687 22 Construction of commercial 112 118 16 — 4 — — 97 — Farm land — — — — — 986 1,151 982 — Vacant land 45 45 45 3 1 159 184 162 6 Real estate secured 5,170 5,325 5,719 205 89 7,190 8,678 6,708 95 Commercial and industrial 110 110 16 32 — 79 112 124 4 Consumer — — — — — — 7 2 — Totals $ 5,280 $ 5,435 $ 5,735 $ 237 $ 89 $ 7,269 $ 8,797 $ 6,834 $ 99 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, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 833 1,186 1,104 186 7 1,314 1,896 1,564 43 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 833 1,186 1,104 186 7 1,572 2,168 1,822 43 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 833 $ 1,186 $ 1,104 $ 186 $ 7 $ 1,572 $ 2,168 $ 1,822 $ 43 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, 2016 Residential $ 3,516 $ 3,684 $ 5,907 $ 135 $ 88 $ 3,437 $ 4,031 $ 2,822 $ 94 Home equity lines of credit 406 435 462 22 2 227 277 331 3 Residential real estate 3,922 4,119 6,369 157 90 3,664 4,308 3,153 97 Commercial 3,021 3,304 3,347 60 34 667 897 934 42 Construction of commercial — — 56 — — 115 121 63 8 Farm land — — 394 — — 1,002 1,140 622 — Vacant land 46 46 1,786 4 3 164 189 195 12 Real estate secured 6,989 7,469 11,952 221 127 5,612 6,655 4,967 159 Commercial and industrial — — 31 — — 84 130 201 3 Consumer — — — — — 3 16 7 — Totals $ 6,989 $ 7,469 $ 11,983 $ 221 $ 127 $ 5,699 $ 6,801 $ 5,175 $ 162 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, 2016 Residential $ — $ — $ 504 $ — $ — $ — $ — $ 238 $ — Home equity lines of credit — — — — — — — — — Residential real estate — — 504 — — — — 238 — Commercial 1,254 1,628 725 191 14 2,134 2,621 2,112 38 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,254 1,628 1,229 191 14 2,392 2,893 2,608 38 Commercial and industrial — — 77 — — — — 19 — Consumer — — — — — — — — — Totals $ 1,254 $ 1,628 $ 1,306 $ 191 $ 14 $ 2,392 $ 2,893 $ 2,627 $ 38 As of June 30, 2017 and December 31, 2016 the recorded investment in residential mortgage loans collateralized by real estate that were in the process of foreclosure was $1.2 million and $2.1 million, respectively. At June 30, 2017 and December 31, 2016, the carrying amount of foreclosed residential real estate held as a result of obtaining physical possession amounted to $1.1 million and $3.6 million respectively.

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2017
Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 4 - MORTGAGE SERVICING RIGHTS (in thousands) June 30, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 122,043 $ 125,243 Fair value of mortgage servicing rights 916 902 Changes in mortgage servicing rights are as follows: Three months Six months Periods ended June 30, (in thousands) 2017 2016 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 296 $ 456 $ 339 $ 487 Originated 14 24 38 45 Amortization (1) (69 ) (64 ) (136 ) (116 ) Balance, end of period $ 241 $ 416 $ 241 $ 416 Valuation Allowance Balance, beginning of period $ (25 ) $ (24 ) $ (23 ) $ (4 ) Decrease (increase) in impairment reserve (1) 1 (1 ) (1 ) (21 ) Balance, end of period (24 ) (25 ) (24 ) (25 ) Mortgage servicing rights, net $ 217 $ 391 $ 217 $ 391 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS

PLEDGED ASSETS	6 Months Ended
	Jun. 30, 2017
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 5 - PLEDGED ASSETS (in thousands) June 30, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 70,009 $ 63,833 Loans receivable (at book value) 193,833 203,145 Total pledged assets $ 263,842 $ 266,978 At June 30, 2017, securities were pledged as follows: $65.0 million to secure public deposits, $4.9 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, 2017
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 per share data) 2017 2016 2017 2016 Net income $ 1,882 $ 1,735 $ 3,487 $ 3,247 Less: Undistributed earnings allocated to participating securities (15 ) (14 ) (26 ) (27 ) Net income allocated to common stock $ 1,867 $ 1,721 $ 3,461 $ 3,220 Weighted average common shares issued 2,780 2,756 2,773 2,751 Less: Unvested restricted stock awards (23 ) (22 ) (20 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,757 2,734 2,753 2,729 Add: Dilutive effect of unvested restricted stock awards 18 15 19 16 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,775 2,749 2,772 2,745 Earnings per common share (basic) $ 0.68 $ 0.63 $ 1.26 $ 1.18 Earnings per common share (diluted) $ 0.67 $ 0.63 $ 1.25 $ 1.17

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 7 – SHAREHOLDERS’ EQUITY Capital Requirements Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury’s and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In July 2013, the Federal Reserve Bank (FRB) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for bank holding companies and their bank subsidiaries. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. On April 8, 2014, the FDIC adopted as final its interim final rule, which is identical in substance to the final rules issued by the FRB in July 2013. Under the final rules, minimum requirements increased for both the quantity and quality of capital held by the Bank and Company. The rules include a common equity Tier 1 capital risk-weighted assets minimum ratio of 4.5%, minimum ratio of Tier 1 capital to risk-weighted assets of 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 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 began phasing in 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. As of June 30, 2017, the Bank exceeded the fully phased in regulatory requirement for the capital conservation buffer. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. 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, 2017 Total Capital (to risk-weighted assets) Salisbury $ 97,802 13.10 % $ 59,725 8.0 % n/a — Bank 94,815 12.70 59,724 8.0 74,655 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,150 10.87 44,794 6.0 n/a — Bank 88,163 11.81 44,793 6.0 59,724 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,150 10.87 33,595 4.5 n/a — Bank 88,163 11.81 33,595 4.5 48,526 6.5 Tier 1 Capital (to average assets) Salisbury 81,150 8.77 37,013 4.0 n/a — Bank 88,163 9.53 37,007 4.0 46,259 5.0 December 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 96,166 13.26 % $ 57,997 8.0 % n/a — Bank 93,690 12.92 57,996 8.0 $ 72,495 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 43,498 6.0 n/a — Bank 87,392 12.05 43,497 6.0 57,996 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 32,623 4.5 n/a — Bank 87,392 12.05 32,623 4.5 47,122 6.5 Tier 1 Capital (to average assets) Salisbury 79,868 8.69 37,282 4.0 n/a — Bank 87,392 9.57 36,762 4.0 45,953 5.0 DIVIDENDS Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure.

BENEFITS

BENEFITS	6 Months Ended
	Jun. 30, 2017
Retirement Benefits [Abstract]
BENEFITS	NOTE 8 – BENEFITS Salisbury’s 401(k) Plan expense was $187,000 and $173,000, respectively, for the three month periods ended June 30, 2017 and 2016, and $472,000 and $389,000, respectively, for the six month periods ended June 30, 2017 and 2016. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $17,000 and $19,000, respectively, for the three month periods ended June 30, 2017 and 2016, and $36,000 and $37,000, respectively, for the six month periods ended June 30, 2017 and 2016. 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 $15,000 and $45,000, respectively, for the three month periods ended June 30, 2017 and 2016, and $49,000 and $81,000, respectively, for the six month periods ended June 30, 2017 and 2016. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "NQDC Plan") was adopted effective January 1, 2013. The NQDC 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 the NQDC 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. The NQDC Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2017, 2016, 2015, and 2014, the Bank awarded nine (9), nine (9), six (6) and seven (7) Executives, respectively, with discretionary contributions to the plan. Expenses related to the NQDC Plan amounted to $21,000 for the second quarter of 2017 and $10,000 for the second quarter of 2016. Additionally, expenses related to the NQDC plan amounted to $41,000 and $20,000 for the six months ended June 30, 2017 and 2016, respectively. The vesting schedule is based on the Executive’s date of retirement and ranges from 7.7% per year to 50% per year with two exceptions which are 10 and 15 year cliff vesting schedules from the date of initial award. On January 27, 2017, the Compensation Committee granted a total of 56,600 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,100 units to three Named Executive Officers. Mr. Cantele received 11,500 units, Mr. Davies received 6,000 units and Mr. White received 5,600 units. The units will vest on the third anniversary of the grant date. On January 29, 2016, the Compensation Committee granted a total of 47,470 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,012 units to three Named Executive Officers. Mr. Cantele received 11,484 units, Mr. Davies received 5,963 units and Mr. White received 5,565 units. The units will vest on the third anniversary of the grant date. On January 2, 2015, the Compensation Committee granted a total of 48,894 Phantom Stock Appreciation Units pursuant to the 2013 Phantom Stock Appreciation Unit and Long-Term Incentive Plan (the “Plan”), including 23,012 units to three Named Executive Officers. Mr. Cantele received 11,484 units, Mr. Davies received 5,963 units and Mr. White received 5,565 units. The units will vest on the third anniversary of the grant date. Grants of Restricted Stock and Options Restricted Stock On January 29, 2016, Salisbury granted a total of 15,800 shares of restricted stock pursuant to its 2011 Long Term Incentive Plan (“2011 LTIP”), which was approved by shareholders at the 2011 Annual Meeting, to 42 employees, including 6,000 shares to three Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 5,000 and John Davies, President New York Region and Chief Lending Officer and Donald E. White, Chief Financial Officer each received 500 shares. The fair value of the stock as of the grant date was determined to be $466 thousand and the stock will be vested three years from the grant date. Expense related to such grants in the three months ended June 30, 2017 and 2016 totaled $58 thousand and $46 thousand, respectively, and for the six months ended June 30, 2017 and 2016 totaled $122 thousand and $93 thousand, respectively. Unrecognized compensation cost relating to the awards as of June 30, 2017 and 2016 totaled $738 thousand and $483 thousand, respectively. There were no forfeitures in the three months ended June 30, 2017 and 2016, respectively. Forfeitures in the six months ended June 30, 2017 and 2016 totaled 200 and 0 shares, respectively. The Board of Directors adopted the 2017 Long Term Incentive Plan (the “2017 LTIP”) on February 24, 2017, which was approved by shareholders at the 2017 Annual Meeting on May 17, 2017. Pursuant to the 2017 LTIP as of May 17, 2017, following shareholder approval of the 2017 LTIP, no further awards will be made under the 2011 LTIP, which shall remain in existence solely for purposes of administering outstanding grants. Under the 2017 LTIP, the total number of shares of Common Stock reserved and available for issuance in the next ten years in connection with awards under the 2017 LTIP is 200,000 shares of Common Stock, which represents approximately 7% of Salisbury’s 2,770,036 outstanding shares of Common Stock as of March 20, 2017. Of the maximum shares available under the 2017 LTIP, 200,000 shares may be issued upon the exercise of stock options (all of which may be granted as incentive stock options) and 150,000 shares may be issued as restricted stock or restricted stock units (including deferred stock units), provided that, to the extent that a share is issued as a restricted stock award or a restricted stock unit, the share would no longer be available for award as a stock option, unless the restricted stock award or restricted unit is forfeited or otherwise returned to the 2017 LTIP. On April 28, 2017, Salisbury granted a total of 10,750 shares of restricted stock pursuant to its 2011 LTIP to 37 employees, including 2,500 shares to two Named Executive Officers. Richard J. Cantele, Jr., President and Chief Executive Officer received 2,000 and John Davies, President New York Region and Chief Lending Officer received 500 shares. The fair value of the stock as of the grant date was determined to be $419,250 and the stock will be vested three years from the grant date. On April 28, 2017, Salisbury granted a total of 2,056 shares of stock pursuant to its 2011 LTIP to directors as a component of their annual compensation. While all directors received partial awards for their 2016 service, Louise Brown received her full award due to her pending retirement from the board. The fair value of the stock as of the grant date was determined to be $80,184. On May 26, 2017, Salisbury granted a total of 200 shares of restricted stock pursuant to its 2017 LTIP, which was approved by shareholders at the 2017 Annual Meeting, to one employee. The fair value of the stock as of the grant date was determined to be $8,200 and the stock will be vested three years from the grant date. On May 26, 2017, Salisbury granted a total of 2,024 shares of stock pursuant to the 2017 LTIP to directors as a component of their annual compensation. The fair value of the stock as of the grant date was determined to be $82,984. Options On January 9, 2017, 2,700 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 1, 2017, 1,350 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 9, 2017, 1,350 shares of stock options were exercised at $25.93 per share by one former Riverside Bank executive. On February 14, 2017 and February 20, 2017, 5,400 and 1,350 shares of stock options were exercised, respectively, at $25.93 per share by two former Riverside Bank executives. The following table presents the pre-tax expense associated with stock options and restricted stock awards as well as the related recognized tax benefits: Three months Six months Periods ended June 30, (in thousands) 2017 2016 2017 2016 Stock Options $ — $ — $ — $ — Restricted stock awards 61 53 122 93 Total stock based compensation expense $ 61 $ 53 $ 122 $ 93 Related tax benefits recognized in earnings $ 21 $ 18 $ 41 $ 32 Not included in the above is the excess tax benefit related to the adoption of 2016-09 in the amount of $105 thousand for both the three and six month periods ending June 30,2017 respectively.

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE ASSETS AND LIABILITIES	NOTE 9 – 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. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the six months ended June 30, 2017. 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. Assets measured at fair value are as follo ws: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value June 30, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 6,599 $ — $ 6,599 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 48,964 — 48,964 Collateralized mortgage obligations: U.S. Government agencies — 8,759 — 8,759 Non-agency — 3,144 — 3,144 SBA bonds — 10,508 — 10,508 CRA mutual funds 831 — — 831 Corporate bonds — 2,045 — 2,045 Preferred stock 166 — — 166 Securities available-for-sale $ 997 $ 80,019 $ — $ 81,016 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,720 $ 4,720 Other real estate owned $ — $ — $ 3,854 $ 3,854 December 31, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 15,996 $ — $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 53,301 — 53,301 Collateralized mortgage obligations: U.S. Government agencies — 1,474 — 1,474 Non-agency — 3,735 — 3,735 SBA bonds — 2,064 — 2,064 CRA mutual funds 818 — — 818 Corporate bonds — 2,013 — 2,013 Preferred stock 222 — — 222 Securities available-for-sale $ 1,040 $ 78,583 $ — $ 79,623 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,256 $ 5,256 Other real estate owned $ — $ — $ 3,773 $ 3,773 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, 2017 Financial Assets Cash and cash equivalents $ 61,392 $ 61,392 $ 61,392 $ — $ — Securities available-for-sale 81,016 81,016 997 80,019 — Federal Home Loan Bank stock 3,452 3,452 — 3,452 — Loans held-for-sale 594 594 — — 594 Loans receivable, net 771,850 787,484 — — 787,484 Accrued interest receivable 2,303 2,303 — — 2,303 Cash surrender value of life insurance 14,211 14,211 14,211 — — Financial Liabilities Demand (non-interest bearing) $ 219,660 $ 219,660 $ — $ — $ 219,660 Demand (interest-bearing) 132,899 132,899 — — 132,899 Money market 194,704 194,704 — — 194,704 Savings and other 145,937 145,937 — — 145,937 Certificates of deposit 118,141 119,107 — — 119,107 Deposits 811,341 812,307 — — 812,307 Repurchase agreements 2,126 2,126 — — 2,126 FHLBB advances 47,302 48,286 — — 48,286 Subordinated debt 9,799 10,433 — — 10,433 Note payable 327 360 — — 360 Capital lease liability 1,987 2,285 — — 2,285 Accrued interest payable 88 88 — — 88 December 31, 2016 Financial Assets Cash and cash equivalents $ 35,485 $ 35,485 $ 35,485 $ — $ — Securities available-for-sale 79,623 79,623 1,040 78,583 — Federal Home Loan Bank stock 3,211 3,211 — — 3,211 Loans receivable, net 763,184 774,442 — — 774,442 Accrued interest receivable 2,424 2,424 — — 2,424 Cash surrender value of life insurance 14,038 14,038 14,038 — — Financial Liabilities Demand (non-interest bearing) $ 218,420 $ 218,420 $ — $ — $ 218,420 Demand (interest-bearing) 127,854 127,854 — — 127,854 Money market 182,476 182,476 — — 182,476 Savings and other 135,435 135,435 — — 135,435 Certificates of deposit 117,585 118,610 — — 118,610 Deposits 781,770 782,795 — — 782,795 Repurchase agreements 5,535 5,535 — — 5,535 FHLBB advances 37,188 38,440 — — 38,440 Subordinated debt 9,788 10,378 — — 10,378 Note payable 344 377 — — 377 Capital lease liability 418 841 — — 841 Accrued interest payable 89 89 — — 89 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, 2017
Accounting Policies [Abstract]
Impact of New Accounting Pronouncements Issued	Impact of New Accounting Pronouncements Issued In May 2014, August 2015, May 2016, and December 2016, respectively, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, 2015-14, 2016-12, and 2016-20, “Revenue from Contracts with Customers (Topic 606).” The objective of ASU 2014-09 is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, the amendments in ASU 2015-14 defer the effective date of ASU 2014-09 to interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before the original effective date (i.e. interim and annual reporting periods beginning after December 15, 2016). The amendments in ASU 2016-12 do not change the core principle of the guidance in Topic 606, but rather affect only certain narrow aspects aimed to reduce the potential for diversity in practice at initial application and the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. The amendments in ASU 2016-20 include technical corrections and improvements to Topic 606 and other Topics amended by ASU 2014-09 to increase stakeholders’ awareness of the proposals and to expedite improvements to ASU 2014-09. Salisbury is currently reviewing ASU 2014-09, 2015-14, 2016-12, and 2016-20 to determine if they will have an impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments –overall (subtopic 825-10): "Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted as of the beginning of the fiscal year of adoption only for provisions (3) and (6) above. Early adoption of the other provisions mentioned above is not permitted. Salisbury does not expect ASU No. 2016-01 to have a material impact on the Company's Consolidated Financial Statements; however, the Company will continue to closely monitor developments and additional guidance. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. They have the option to use certain relief; full retrospective application is prohibited. Salisbury is currently evaluating this ASU to determine the impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. Some of the key provisions of this new ASU include: (1) companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (“APIC”). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. The guidance also eliminates the requirement that excess tax benefits be realized before companies can recognize them. In addition, the guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity; (2) increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer’s statutory income tax withholding obligation. The new guidance will also require an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on its statement of cash flows (current guidance did not specify how these cash flows should be classified); and (3) permit companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as required today, or recognized when they occur. Salisbury has opted to recognize forfeitures as they occur as the impact is not expected to be material. ASU 2016-09 is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, but all of the guidance must be adopted in the same period. Salisbury adopted ASU 2016-09 as of January 1, 2017. Adoption did not have a material effect on the financial results for the first quarter of 2017 and contributed a $105 thousand benefit to the tax provision in the second quarter 2017. 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. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Salisbury is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments." This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on Salisbury’s Consolidated Financial Statements. I n January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business." The amendments in this ASU are intended to add guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a screen to determine when a set of inputs, processes, and outputs is not a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present. ASU 2017-01 is effective for public business entities for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted for transactions for which the acquisition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance, or for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. Entities should apply the guidance prospectively on or after the effective date. Salisbury is currently evaluating the provisions of ASU 2017-01 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This ASU is intended to allow companies to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for public business entities that are SEC filers for fiscal years beginning after December 15, 2019 and interim periods within those years. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Entities should apply the guidance prospectively. Salisbury is currently evaluating the provisions of ASU 2017-04 to determine the potential impact the new standard will have on Salisbury’s Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” This ASU will amend the amortization period for certain purchased callable debt securities held at a premium. The Board is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Salisbury is currently evaluating the provisions of ASU 2017-08 and does not expect that the adoption of the new standard will have a material impact on Salisbury’s Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting.” This ASU will provide clarity in the accounting guidance regarding a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted, including adoption in an interim period. Entities should apply the guidance prospectively to an award modified on or after the adoption date. Salisbury is currently evaluating the provisions of ASU 2017-09 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, 2017
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value June 30, 2017 Available-for-sale Municipal bonds $ 6,528 $ 71 $ — $ 6,599 Mortgage-backed securities U.S. Government agencies and U.S. Government-sponsored enterprises 48,866 271 173 48,964 Collateralized mortgage obligations U.S. Government agencies 8,694 66 1 8,759 Non-agency 2,733 419 8 3,144 SBA bonds 10,488 23 3 10,508 CRA mutual funds 842 — 11 831 Corporate bonds 2,000 45 — 2,045 Preferred stock 7 159 — 166 Total securities available-for-sale $ 80,158 $ 1,054 $ 196 $ 81,016 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,452 $ — $ — $ 3,452 (in thousands) Amortized cost basis (1) Gross un- realized gains Gross un- realized losses Fair Value December 31, 2016 Available-for-sale Municipal bonds $ 15,800 $ 197 $ 1 $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 53,407 229 335 53,301 Collateralized mortgage obligations: U.S. Government agencies 1,470 4 — 1,474 Non-agency 3,327 414 6 3,735 SBA bonds 2,056 9 1 2,064 CRA mutual funds 834 — 16 818 Corporate bonds 2,000 16 3 2,013 Preferred stock 7 215 — 222 Total securities available-for-sale $ 78,901 $ 1,084 $ 362 $ 79,623 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,211 $ — $ — $ 3,211 (1) Net of other-than-temporary impairment write-downs recognized in earnings.
Aggreggate fair value and gross unrealized loss of securities	June 30, 2017 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Mortgage-backed securities $ 15,685 $ 109 $ 10,615 $ 64 $ 26,300 $ 173 Collateralized mortgage obligations: Non-agency 2,526 1 286 3 2,812 4 SBA bonds 2,669 3 44 — 2,713 3 CRA funds 831 11 — — 831 11 Total temporarily impaired securities 21,711 124 10,945 67 32,656 191 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 120 5 — — 120 5 Total temporarily impaired and other-than-temporarily impaired securities $ 21,831 $ 129 $ 10,945 $ 67 $ 32,776 $ 196 December 31, 2016 (in thousands) Less than 12 Months 12 Months or Longer Total Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale Municipal bonds $ 517 $ 1 $ — $ — $ 517 $ 1 Mortgage-backed securities 34,758 329 249 6 35,007 335 Collateralized mortgage obligations: Non-agency 60 — 339 5 399 5 SBA bonds 475 1 — — 475 1 CRA funds 818 16 — — 818 16 Corporate bonds 498 3 — — 498 3 Total temporarily impaired securities 37,126 350 588 11 37,714 361 Other-than-temporarily impaired securities Collateralized mortgage obligations Non-agency 174 1 — — 174 1 Total temporarily impaired and other-than-temporarily impaired securities $ 37,300 $ 351 $ 588 $ 11 $ 37,888 $ 362
Amortized cost, fair value and tax equivalent yield of securities	June 30, 2017 (in thousands) Maturity Amortized cost Fair value Yield(1) Municipal bonds Within 1 year $ 257 $ 258 4.55 % After 1 year but within 5 years 543 547 3.25 After 10 years but within 15 years 2,661 2,684 4.48 After 15 years 3,067 3,110 4.51 Total 6,528 6,599 4.40 Mortgage-backed securities U.S. Government agency and U.S. Government-sponsored enterprises 48,866 48,964 2.33 Collateralized mortgage obligations U.S. Government agency and U.S. Government-sponsored enterprises 8,694 8,759 2.64 Non-agency 2,733 3,144 3.99 SBA bonds 10,488 10,508 2.99 CRA mutual funds 842 831 5.01 Corporate bonds After 5 years but within 10 years 2,000 2,045 5.50 Preferred stock 7 166 5.48 Securities available-for-sale $ 80,158 $ 81,016 2.78 % (1) Yield is based on amortized cost.
Activity related to credit losses recognized into earnings	Six months ended June 30 (in thousands) 2017 2016 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, 2017
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	June 30, 2017 December 31, 2016 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential 1-4 family $ 300,750 $ 5,687 $ 306,437 $ 295,030 $ 6,098 $ 301,128 Residential 5+ multifamily 11,472 5,456 16,928 7,976 5,649 13,625 Construction of residential 1-4 family 10,376 — 10,376 10,951 — 10,951 Home equity lines of credit 35,806 — 35,806 35,487 — 35,487 Residential real estate 358,404 11,143 369,547 349,444 11,747 361,191 Commercial 175,469 70,146 245,615 155,628 79,854 235,482 Construction of commercial 5,570 1,724 7,294 3,481 1,917 5,398 Commercial real estate 181,039 71,870 252,909 159,109 81,771 240,880 Farm land 4,453 — 4,453 3,914 — 3,914 Vacant land 6,969 — 6,969 6,600 — 6,600 Real estate secured 550,865 83,013 633,878 519,067 93,518 612,585 Commercial and industrial 110,424 15,222 125,646 121,144 20,329 141,473 Municipal 12,737 — 12,737 8,626 — 8,626 Consumer 4,826 56 4,882 5,312 68 5,380 Loans receivable, gross 678,852 98,291 777,143 654,149 113,915 768,064 Deferred loan origination fees and costs, net 1,200 — 1,200 1,247 — 1,247 Allowance for loan losses (6,186 ) (307 ) (6,493 ) (5,816 ) (311 ) (6,127 ) Loans receivable, net $ 673,866 $ 97,984 $ 771,850 $ 649,580 $ 113,604 $ 763,184 Loans held-for-sale Residential 1-4 family $ 594 $ — $ 594 $ — $ — $ —
Composition of loans receivable by risk rating grade	Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2017 Residential 1-4 family $ 291,306 $ 6,030 $ 3,414 $ — $ — $ 300,750 Residential 5+ multifamily 9,473 1,841 158 — — 11,472 Construction of residential 1-4 family 10,376 — — — — 10,376 Home equity lines of credit 34,709 819 278 — — 35,806 Residential real estate 345,864 8,690 3,850 — — 358,404 Commercial 165,520 3,675 6,274 — — 175,469 Construction of commercial 5,458 — 112 — — 5,570 Commercial real estate 170,978 3,675 6,386 — — 181,039 Farm land 3,467 — 986 — — 4,453 Vacant land 6,888 81 — — — 6,969 Real estate secured 527,197 12,446 11,222 — — 550,865 Commercial and industrial 108,798 1,337 289 — — 110,424 Municipal 12,737 — — — — 12,737 Consumer 4,809 17 — — — 4,826 Loans receivable, gross $ 653,541 $ 13,800 $ 11,511 $ — $ — $ 678,852 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2017 Residential 1-4 family $ 5,534 $ 105 $ 48 $ — $ — $ 5,687 Residential 5+ multifamily 5,456 — — — — 5,456 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 10,990 105 48 — — 11,143 Commercial 63,060 2,539 4,547 — — 70,146 Construction of commercial 1,466 — 258 — — 1,724 Commercial real estate 64,526 2,539 4,805 — — 71,870 Farm land — — — — — — Vacant land — — — — — — Real estate secured 75,516 2,644 4,853 — — 83,013 Commercial and industrial 14,247 915 58 2 — 15,222 Municipal — — — — — — Consumer 54 2 — — — 56 Loans receivable, gross $ 89,817 $ 3,561 $ 4,911 $ 2 $ — $ 98,291 Business Activities Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 285,939 $ 6,170 $ 2,832 $ 89 $ — $ 295,030 Residential 5+ multifamily 5,907 1,906 163 — — 7,976 Construction of residential 1-4 family 10,951 — — — — 10,951 Home equity lines credit 34,299 512 676 — — 35,487 Residential real estate 337,096 8,588 3,671 89 — 349,444 Commercial 145,849 3,759 6,020 — — 155,628 Construction of commercial 3,366 — 115 — — 3,481 Commercial real estate 149,215 3,759 6,135 — — 159,109 Farm land 2,912 — 1,002 — — 3,914 Vacant land 6,513 87 — — — 6,600 Real estate secured 495,736 12,434 10,808 89 — 519,067 Commercial and industrial 118,804 1,734 606 — — 121,144 Municipal 8,626 — — — — 8,626 Consumer 5,288 24 — — — 5,312 Loans receivable, gross $ 628,454 $ 14,192 $ 11,414 $ 89 $ — $ 654,149 Acquired Loans (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2016 Residential 1-4 family $ 5,989 $ 109 $ — $ — $ — $ 6,098 Residential 5+ multifamily 5,649 — — — — 5,649 Construction of residential 1-4 family — — — — — — Home equity lines of credit — — — — — — Residential real estate 11,638 109 — — — 11,747 Commercial 70,007 4,059 5,788 — — 79,854 Construction of commercial 1,659 — 258 — — 1,917 Commercial real estate 71,666 4,059 6,046 — — 81,771 Farm land — — — — — — Vacant land — — — — — — Real estate secured 83,304 4,168 6,046 — — 93,518 Commercial and industrial 19,110 1,160 59 — — 20,329 Municipal — — — — — — Consumer 65 3 — — — 68 Loans receivable, gross $ 102,479 $ 5,331 $ 6,105 $ — $ — $ 113,915
Composition of loans receivable by delinquency status	Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over June 30, 2017 Residential 1-4 family $ 297,988 $ 184 $ 1,073 $ 160 $ 1,345 $ 2,762 $ 89 $ 1,934 Residential 5+ multifamily 11,472 — — — — — — 158 Construction of residential 1-4 family 10,376 — — — — — — — Home equity lines of credit 35,562 144 100 — — 244 — 70 Residential real estate 355,398 328 1,173 160 1,345 3,006 89 2,162 Commercial 173,231 165 280 — 1,793 2,238 — 1,793 Construction of commercial 5,570 — — — — — — — Commercial real estate 178,801 165 280 — 1,793 2,238 — 1,793 Farm land 3,730 — — — 723 723 — 986 Vacant land 6,969 — — — — — — — Real estate secured 544,898 493 1,453 160 3,861 5,967 89 4,941 Commercial and industrial 110,097 190 — 65 72 327 — 137 Municipal 12,737 — — — — — — — Consumer 4,823 1 2 — — 3 — — Loans receivable, gross $ 672,555 $ 684 $ 1,455 $ 225 $ 3,933 $ 6,297 $ 89 $ 5,078 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over June 30, 2017 Residential 1-4 family $ 5,598 $ 89 $ — $ — $ — $ 89 $ — $ — Residential 5+ multifamily 5,456 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,054 89 — — — 89 — — Commercial 67,058 — 720 1,000 1,368 3,088 1,000 1,368 Construction of commercial 1,466 — — — 258 258 — 258 Commercial real estate 68,524 — 720 1,000 1,626 3,346 1,000 1,626 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 79,578 89 720 1,000 1,626 3,435 1,000 1,626 Commercial and industrial 15,110 70 — 41 1 112 42 — Municipal — — — — — — — — Consumer 56 — — — — — — — Loans receivable, gross $ 94,744 $ 159 $ 720 $ 1,041 $ 1,627 $ 3,547 $ 1,042 $ 1,626 Business Activities Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 291,941 $ 1,161 $ 213 $ 327 $ 1,388 $ 3,089 $ 236 $ 1,920 Residential 5+ multifamily 7,976 — — — — — — 163 Construction of residential 1-4 family 10,951 — — — — — — — Home equity lines of credit 35,190 155 88 — 54 297 — 519 Residential real estate 346,058 1,316 301 327 1,442 3,386 236 2,602 Commercial 152,905 451 250 1,793 229 2,723 — 2,022 Construction of commercial 3,481 — — — — — — — Commercial real estate 156,386 451 250 1,793 229 2,723 — 2,022 Farm land 2,402 789 — — 723 1,512 — 1,002 Vacant land 6,575 25 — — — 25 — — Real estate secured 511,421 2,581 551 2,120 2,394 7,646 236 5,626 Commercial and industrial 120,719 140 239 46 — 425 20 27 Municipal 8,626 — — — — — — — Consumer 5,268 26 15 3 — 44 — 4 Loans receivable, gross $ 646,034 $ 2,747 $ 805 $ 2,169 $ 2,394 $ 8,115 $ 256 $ 5,657 Acquired Loans Past due 180 30 Accruing (in thousands) Current 30-59 60-89 90-179 days days 90 days Non- days days days and and and accrual over over over December 31, 2016 Residential 1-4 family $ 5,954 $ 144 $ — $ — $ — $ 144 $ — $ — Residential 5+ multifamily 5,649 — — — — — — — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,603 144 — — — 144 — — Commercial 76,471 762 — 346 2,275 3,383 — 2,621 Construction of commercial 1,659 — — — 258 258 — 258 Commercial real estate 78,130 762 — 346 2,533 3,641 — 2,879 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 89,733 906 — 346 2,533 3,785 — 2,879 Commercial and industrial 19,904 425 — — — 425 — — Municipal — — — — — — — — Consumer 68 — — — — — — — Loans receivable, gross $ 109,705 $ 1,331 $ — $ 346 $ 2,533 $ 4,210 $ — $ 2,879
Troubled debt restructurings	Business Activities Loans Six months ended June 30, 2017 June 30, 2016 (in thousands) Quantity Pre- modification balance Post- modification balance Quantity Pre- modification balance Post- modification balance Residential real estate — $ — $ — 3 $ 316 $ 316 Commercial real estate 1 600 600 1 1,863 1,863 Troubled debt restructurings 1 $ 600 $ 600 4 $ 2,179 $ 2,179 Rate reduction and term extension — $ — $ — 2 $ 262 $ 262 Debt consolidation — — — 1 1,863 1,863 Term extension 1 600 600 1 54 54 Troubled debt restructurings 1 $ 600 $ 600 4 $ 2,179 $ 2,179
Changes in 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, 2017 Three months ended June 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,482 $ (94 ) $ (37 ) $ 2 $ 2,353 $ — $ — $ — $ — $ — Commercial 1,752 347 — — 2,099 271 13 — 1 285 Land 189 (35 ) — — 154 — — — — — Real estate 4,423 218 (37 ) 2 4,606 271 13 — 1 285 Commercial and industrial 866 162 (56 ) 7 979 48 33 (64 ) 5 22 Municipal 55 (37 ) — — 18 — — — — — Consumer 92 (9 ) (15 ) 1 69 — — — — — Unallocated 530 (16 ) — — 514 — — — — — Totals $ 5,966 $ 318 $ (108 ) $ 10 $ 6,186 $ 319 $ 46 $ (64 ) $ 6 $ 307 Business Activities Loans Acquired Loans (in thousands) Six months ended June 30, 2017 Six months ended June 30, 2017 Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential $ 2,427 $ 2 $ (80 ) $ 4 $ 2,353 $ — $ — $ — $ — $ — Commercial 1,683 454 (38 ) — 2,099 275 131 (150 ) 29 285 Land 198 (29 ) (15 ) — 154 — — — — — Real estate 4,308 427 (133 ) 4 4,606 275 131 (150 ) 29 285 Commercial and industrial 1,043 (56 ) (57 ) 49 979 36 41 (64 ) 9 22 Municipal 53 (35 ) — — 18 — — — — — Consumer 75 31 (46 ) 9 69 — — — — — Unallocated 337 177 — — 514 — — — — — Totals $ 5,816 $ 544 $ (236 ) $ 62 $ 6,186 $ 311 $ 172 $ (214 ) $ 38 $ 307 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
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, 2017 Residential 1-4 family $ 295,656 $ 1,782 $ 5,094 $ 135 $ 300,750 $ 1,917 Residential 5+ multifamily 9,712 114 1,760 2 11,472 116 Construction of residential 1-4 family 10,376 71 — — 10,376 71 Home equity lines of credit 35,624 248 182 1 35,806 249 Residential real estate 351,368 2,215 7,036 138 358,404 2,353 Commercial 171,448 1,990 4,021 64 175,469 2,054 Construction of commercial 5,458 44 112 — 5,570 44 Commercial real estate 176,906 2,034 4,133 64 181,039 2,098 Farm land 3,467 23 986 — 4,453 23 Vacant land 6,765 128 204 3 6,969 131 Real estate secured 538,506 4,400 12,359 205 550,865 4,605 Commercial and industrial 110,234 947 190 32 110,424 979 Municipal 12,737 18 — — 12,737 18 Consumer 4,826 69 — — 4,826 69 Unallocated allowance — 514 — — — 514 Totals $ 666,303 $ 5,948 $ 12,549 $ 237 $ 678,852 $ 6,185 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance June 30, 2017 Residential 1-4 family $ 5,687 $ — $ — $ — $ — $ — $ 5,687 $ — Residential 5+ multifamily 5,456 — — — — — 5,456 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,143 — — — — — 11,143 — Commercial 64,212 28 2,147 186 3,787 69 70,146 283 Construction of commercial 1,466 2 258 — — — 1,724 2 Commercial real estate 65,678 30 2,405 186 3,787 69 71,870 285 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 76,821 30 2,405 186 3,787 69 83,013 285 Commercial and industrial 15,097 11 — — 125 11 15,222 22 Municipal — — — — — — — — Consumer 41 — — — 15 — 56 — Unallocated allowance — — — — — — — — Totals $ 91,959 $ 41 $ 2,405 $ 186 $ 3,927 $ 80 $ 98,291 $ 307 Business Activities Loans (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 289,900 $ 1,797 $ 5,130 $ 129 $ 295,030 $ 1,926 Residential 5+ multifamily 6,153 56 1,823 6 7,976 62 Construction of residential 1-4 family 10,951 91 — — 10,951 91 Home equity lines of credit 34,854 326 633 22 35,487 348 Residential real estate 341,858 2,270 7,586 157 349,444 2,427 Commercial 151,940 1,587 3,688 60 155,628 1,647 Construction of commercial 3,366 36 115 — 3,481 36 Commercial real estate 155,306 1,623 3,803 60 159,109 1,683 Farm land 2,912 28 1,002 — 3,914 28 Vacant land 6,390 166 210 4 6,600 170 Real estate secured 506,466 4,087 12,601 221 519,067 4,308 Commercial and industrial 121,060 1,043 84 — 121,144 1,043 Municipal 8,626 53 — — 8,626 53 Consumer 5,309 75 3 — 5,312 75 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans (in thousands) Collectively evaluated Individually evaluated ASC 310-30 loans Total portfolio Loans Allowance Loans Allowance Loans Allowance Loans Allowance December 31, 2016 Residential 1-4 family $ 6,098 $ — $ — $ — $ — $ — $ 6,098 $ — Residential 5+ multifamily 5,649 — — — — — 5,649 — Construction of residential 1-4 family — — — — — — — — Home equity lines of credit — — — — — — — — Residential real estate 11,747 — — — — — 11,747 — Commercial 72,569 22 3,388 191 3,897 59 79,854 272 Construction of commercial 1,659 3 258 — — — 1,917 3 Commercial real estate 74,228 25 3,646 191 3,897 59 81,771 275 Farm land — — — — — — — — Vacant land — — — — — — — — Real estate secured 85,975 25 3,646 191 3,897 59 93,518 275 Commercial and industrial 20,020 16 — — 309 20 20,329 36 Municipal — — — — — — — — Consumer 52 — — — 16 — 68 — Unallocated allowance — — — — — — — — Totals $ 106,047 $ 41 $ 3,646 $ 191 $ 4,222 $ 79 $ 113,915 $ 311
Credit quality segments of loans receivable and allowance for loan losses	Business Activities Loans June 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 661,480 $ 5,226 $ — $ — $ 661,480 $ 5,226 Potential problem loans 4,823 208 — — 4,823 208 Impaired loans — — 12,549 238 12,549 238 Unallocated allowance — 514 — — — 514 Totals $ 666,303 $ 5,948 $ 12,549 $ 238 $ 678,852 $ 6,186 Acquired Loans June 30, 2017 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 93,380 $ 55 $ — $ — $ 93,380 $ 55 Potential problem loans 2,506 66 — — 2,506 66 Impaired loans — — 2,405 186 2,405 186 Unallocated allowance — — — — — — Totals $ 95,886 $ 121 $ 2,405 $ 186 $ 98,291 $ 307 Business Activities Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 636,645 $ 5,062 $ — $ — $ 636,645 $ 5,062 Potential problem loans 4,816 196 — — 4,816 196 Impaired loans — — 12,688 221 12,688 221 Unallocated allowance — 337 — — — 337 Totals $ 641,461 $ 5,595 $ 12,688 $ 221 $ 654,149 $ 5,816 Acquired Loans December 31, 2016 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 107,810 $ 55 $ — $ — $ 107,810 $ 55 Potential problem loans 2,459 65 — — 2,459 65 Impaired loans — — 3,646 191 3,646 191 Unallocated allowance — — — — — — Totals $ 110,269 $ 120 $ 3,646 $ 191 $ 113,915 $ 311
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, 2017 Residential $ 3,395 $ 3,501 $ 3,451 $ 137 $ 53 $ 3,460 $ 4,198 $ 3,597 $ 57 Home equity lines of credit 47 49 99 1 1 135 186 183 10 Residential real estate 3,442 3,550 3,550 138 54 3,595 4,384 3,780 67 Commercial 1,571 1,612 2,108 64 30 2,450 2,959 1,687 22 Construction of commercial 112 118 16 — 4 — — 97 — Farm land — — — — — 986 1,151 982 — Vacant land 45 45 45 3 1 159 184 162 6 Real estate secured 5,170 5,325 5,719 205 89 7,190 8,678 6,708 95 Commercial and industrial 110 110 16 32 — 79 112 124 4 Consumer — — — — — — 7 2 — Totals $ 5,280 $ 5,435 $ 5,735 $ 237 $ 89 $ 7,269 $ 8,797 $ 6,834 $ 99 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, 2017 Residential $ — $ — $ — $ — $ — $ — $ — $ — $ — Home equity lines of credit — — — — — — — — — Residential real estate — — — — — — — — — Commercial 833 1,186 1,104 186 7 1,314 1,896 1,564 43 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 833 1,186 1,104 186 7 1,572 2,168 1,822 43 Commercial and industrial — — — — — — — — — Consumer — — — — — — — — — Totals $ 833 $ 1,186 $ 1,104 $ 186 $ 7 $ 1,572 $ 2,168 $ 1,822 $ 43 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, 2016 Residential $ 3,516 $ 3,684 $ 5,907 $ 135 $ 88 $ 3,437 $ 4,031 $ 2,822 $ 94 Home equity lines of credit 406 435 462 22 2 227 277 331 3 Residential real estate 3,922 4,119 6,369 157 90 3,664 4,308 3,153 97 Commercial 3,021 3,304 3,347 60 34 667 897 934 42 Construction of commercial — — 56 — — 115 121 63 8 Farm land — — 394 — — 1,002 1,140 622 — Vacant land 46 46 1,786 4 3 164 189 195 12 Real estate secured 6,989 7,469 11,952 221 127 5,612 6,655 4,967 159 Commercial and industrial — — 31 — — 84 130 201 3 Consumer — — — — — 3 16 7 — Totals $ 6,989 $ 7,469 $ 11,983 $ 221 $ 127 $ 5,699 $ 6,801 $ 5,175 $ 162 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, 2016 Residential $ — $ — $ 504 $ — $ — $ — $ — $ 238 $ — Home equity lines of credit — — — — — — — — — Residential real estate — — 504 — — — — 238 — Commercial 1,254 1,628 725 191 14 2,134 2,621 2,112 38 Construction of commercial — — — — — 258 272 258 — Farm land — — — — — — — — — Vacant land — — — — — — — — — Real estate secured 1,254 1,628 1,229 191 14 2,392 2,893 2,608 38 Commercial and industrial — — 77 — — — — 19 — Consumer — — — — — — — — — Totals $ 1,254 $ 1,628 $ 1,306 $ 191 $ 14 $ 2,392 $ 2,893 $ 2,627 $ 38

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2017
Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	(in thousands) June 30, 2017 December 31, 2016 Residential mortgage loans serviced for others $ 122,043 $ 125,243 Fair value of mortgage servicing rights 916 902
Changes in mortgage servicing rights	Three months Six months Periods ended June 30, (in thousands) 2017 2016 2017 2016 Mortgage Servicing Rights Balance, beginning of period $ 296 $ 456 $ 339 $ 487 Originated 14 24 38 45 Amortization (1) (69 ) (64 ) (136 ) (116 ) Balance, end of period $ 241 $ 416 $ 241 $ 416 Valuation Allowance Balance, beginning of period $ (25 ) $ (24 ) $ (23 ) $ (4 ) Decrease (increase) in impairment reserve (1) 1 (1 ) (1 ) (21 ) Balance, end of period (24 ) (25 ) (24 ) (25 ) Mortgage servicing rights, net $ 217 $ 391 $ 217 $ 391 (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, 2017
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, 2017 December 31, 2016 Securities available-for-sale (at fair value) $ 70,009 $ 63,833 Loans receivable (at book value) 193,833 203,145 Total pledged assets $ 263,842 $ 266,978

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Computation of earnings per share	Three months Six months Periods ended June 30, (in thousands, except per share data) 2017 2016 2017 2016 Net income $ 1,882 $ 1,735 $ 3,487 $ 3,247 Less: Undistributed earnings allocated to participating securities (15 ) (14 ) (26 ) (27 ) Net income allocated to common stock $ 1,867 $ 1,721 $ 3,461 $ 3,220 Weighted average common shares issued 2,780 2,756 2,773 2,751 Less: Unvested restricted stock awards (23 ) (22 ) (20 ) (22 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,757 2,734 2,753 2,729 Add: Dilutive effect of unvested restricted stock awards 18 15 19 16 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,775 2,749 2,772 2,745 Earnings per common share (basic) $ 0.68 $ 0.63 $ 1.26 $ 1.18 Earnings per common share (diluted) $ 0.67 $ 0.63 $ 1.25 $ 1.17

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 Total Capital (to risk-weighted assets) Salisbury $ 97,802 13.10 % $ 59,725 8.0 % n/a — Bank 94,815 12.70 59,724 8.0 74,655 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 81,150 10.87 44,794 6.0 n/a — Bank 88,163 11.81 44,793 6.0 59,724 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 81,150 10.87 33,595 4.5 n/a — Bank 88,163 11.81 33,595 4.5 48,526 6.5 Tier 1 Capital (to average assets) Salisbury 81,150 8.77 37,013 4.0 n/a — Bank 88,163 9.53 37,007 4.0 47,001 5.0 December 31, 2016 Total Capital (to risk-weighted assets) Salisbury $ 96,166 13.26 % $ 57,997 8.0 % n/a — Bank 93,690 12.92 57,996 8.0 $ 72,495 10.0 % Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 43,498 6.0 n/a — Bank 87,392 12.05 43,497 6.0 57,996 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 79,868 11.02 32,623 4.5 n/a — Bank 87,392 12.05 32,623 4.5 47,122 6.5 Tier 1 Capital (to average assets) Salisbury 79,868 8.69 37,282 4.0 n/a — Bank 87,392 9.57 36,762 4.0 45,953 5.0

BENEFITS (Tables)

BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2017
Benefits Tables
Pre-tax expense associated with stock options and restricted stock	Three months Six months Periods ended June 30, (in thousands) 2017 2016 2017 2016 Stock Options $ — $ — $ — $ — Restricted stock awards 61 53 122 93 Total stock based compensation expense $ 61 $ 53 $ 122 $ 93 Related tax benefits recognized in earnings $ 21 $ 18 $ 41 $ 32

FAIR VALUE OF ASSETS AND LIAB25

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
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, 2017 Assets at fair value on a recurring basis Municipal bonds $ — $ 6,599 $ — $ 6,599 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 48,964 — 48,964 Collateralized mortgage obligations: U.S. Government agencies — 8,759 — 8,759 Non-agency — 3,144 — 3,144 SBA bonds — 10,508 — 10,508 CRA mutual funds 831 — — 831 Corporate bonds — 2,045 — 2,045 Preferred stock 166 — — 166 Securities available-for-sale $ 997 $ 80,019 $ — $ 81,016 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,720 $ 4,720 Other real estate owned $ — $ — $ 3,854 $ 3,854 December 31, 2016 Assets at fair value on a recurring basis Municipal bonds $ — $ 15,996 $ — $ 15,996 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 53,301 — 53,301 Collateralized mortgage obligations: U.S. Government agencies — 1,474 — 1,474 Non-agency — 3,735 — 3,735 SBA bonds — 2,064 — 2,064 CRA mutual funds 818 — — 818 Corporate bonds — 2,013 — 2,013 Preferred stock 222 — — 222 Securities available-for-sale $ 1,040 $ 78,583 $ — $ 79,623 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 5,256 $ 5,256 Other real estate owned $ — $ — $ 3,773 $ 3,773
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, 2017 Financial Assets Cash and cash equivalents $ 61,392 $ 61,392 $ 61,392 $ — $ — Securities available-for-sale 81,016 81,016 997 80,019 — Federal Home Loan Bank stock 3,452 3,452 — 3,452 — Loans held-for-sale 594 594 — — 594 Loans receivable, net 771,850 787,484 — — 787,484 Accrued interest receivable 2,303 2,303 — — 2,303 Cash surrender value of life insurance 14,211 14,211 14,211 — — Financial Liabilities Demand (non-interest bearing) $ 219,660 $ 219,660 $ — $ — $ 219,660 Demand (interest-bearing) 132,899 132,899 — — 132,899 Money market 194,704 194,704 — — 194,704 Savings and other 145,937 145,937 — — 145,937 Certificates of deposit 118,141 119,107 — — 119,107 Deposits 811,341 812,307 — — 812,307 Repurchase agreements 2,126 2,126 — — 2,126 FHLBB advances 47,302 48,286 — — 48,286 Subordinated debt 9,799 10,433 — — 10,433 Note payable 327 360 — — 360 Capital lease liability 1,987 2,285 — — 2,285 Accrued interest payable 88 88 — — 88 December 31, 2016 Financial Assets Cash and cash equivalents $ 35,485 $ 35,485 $ 35,485 $ — $ — Securities available-for-sale 79,623 79,623 1,040 78,583 — Federal Home Loan Bank stock 3,211 3,211 — — 3,211 Loans receivable, net 763,184 774,442 — — 774,442 Accrued interest receivable 2,424 2,424 — — 2,424 Cash surrender value of life insurance 14,038 14,038 14,038 — — Financial Liabilities Demand (non-interest bearing) $ 218,420 $ 218,420 $ — $ — $ 218,420 Demand (interest-bearing) 127,854 127,854 — — 127,854 Money market 182,476 182,476 — — 182,476 Savings and other 135,435 135,435 — — 135,435 Certificates of deposit 117,585 118,610 — — 118,610 Deposits 781,770 782,795 — — 782,795 Repurchase agreements 5,535 5,535 — — 5,535 FHLBB advances 37,188 38,440 — — 38,440 Subordinated debt 9,788 10,378 — — 10,378 Note payable 344 377 — — 377 Capital lease liability 418 841 — — 841 Accrued interest payable 89 89 — — 89

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized cost (1)
Available-for-sale
Municipal bonds	$ 6,528	$ 15,800
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	48,866	53,407
Collateralized mortgage obligations, U.S. Government Agencies	8,694	1,470
Collateralized mortgage obligations, Non-agency	2,733	3,327
SBA bonds	10,488	2,056
CRA mutual funds	842	834
Corporate bonds	2,000	2,000
Preferred stock	7	7
Total securities available-for-sale	80,158	78,901
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,452	3,211
Gross unrealized gains
Available-for-sale
Municipal bonds	71	197
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	271	229
Collateralized mortgage obligations, U.S. Government Agencies	66	4
Collateralized mortgage obligations, Non-agency	419	414
SBA bonds	23	9
CRA mutual funds
Corporate bonds	45	16
Preferred stock	159	215
Total securities available-for-sale	1,054	1,084
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
Municipal bonds		1
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	173	335
Collateralized mortgage obligations, U.S. Government Agencies	1
Collateralized mortgage obligations, Non-agency	8	6
SBA bonds	3	1
CRA mutual funds	11	16
Corporate bonds		3
Preferred stock
Total securities available-for-sale	196	362
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
Municipal bonds	6,599	15,996
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	48,964	53,301
Collateralized mortgage obligations, U.S. Government Agencies	8,759	1,474
Collateralized mortgage obligations, Non-agency	3,144	3,735
SBA bonds	10,508	2,064
CRA mutual funds	831	818
Corporate bonds	2,045	2,013
Preferred stock	166	222
Total securities available-for-sale	81,016	79,623
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,452	$ 3,211

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Less Than 12 Months, Fair value
Available-for-sale
Municipal bonds		$ 517
Mortgage-backed securities	$ 15,685	34,758
Collateralized mortgage obligations, Non-agency	2,526	60
SBA bonds	2,669	475
CRA mutual funds	831	818
Corporate bonds		498
Total temporarily impaired securities	21,711	37,126
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency	120	174
Total temporarily impaired and other-than-temporarily impaired securities	21,831	37,300
Less Than 12 Months, Unrealized losses
Available-for-sale
Municipal bonds		1
Mortgage-backed securities	109	329
Collateralized mortgage obligations, Non-agency	1
SBA bonds	3	1
CRA mutual funds	11	16
Corporate bonds		3
Total temporarily impaired securities	124	350
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency	5	1
Total temporarily impaired and other-than-temporarily impaired securities	129	351
12 Months or Longer, Fair value
Available-for-sale
Municipal bonds
Mortgage-backed securities	10,615	249
Collateralized mortgage obligations, Non-agency	286	339
SBA bonds	44
CRA mutual funds
Corporate bonds
Total temporarily impaired securities	10,945	588
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	10,945	599
12 Months or Longer, Unrealized losses
Available-for-sale
Municipal bonds
Mortgage-backed securities	64	6
Collateralized mortgage obligations, Non-agency	3	5
SBA bonds
CRA mutual funds
Corporate bonds
Total temporarily impaired securities	67	11
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency
Total temporarily impaired and other-than-temporarily impaired securities	67	11
Total, Fair value
Available-for-sale
Municipal bonds		517
Mortgage-backed securities	26,300	35,007
Collateralized mortgage obligations, Non-agency	2,812	399
SBA bonds	2,713	475
CRA mutual funds	831	818
Corporate bonds		498
Total temporarily impaired securities	32,656	37,714
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency	120	174
Total temporarily impaired and other-than-temporarily impaired securities	32,776	37,888
Total, Unrealized losses
Available-for-sale
Municipal bonds		1
Mortgage-backed securities	173	335
Collateralized mortgage obligations, Non-agency	4	5
SBA bonds	3	1
CRA mutual funds	11	16
Corporate bonds		3
Total temporarily impaired securities	191	361
Other than temporarily impaired securities, Collateralized mortgage obligations, Non-agency	5	1
Total temporarily impaired and other-than-temporarily impaired securities	$ 196	$ 362

SECURITIES - Amortized cost, fa

SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Municipal bonds - Within 1 year
Amortized cost	$ 257
Fair value	$ 258
Yield	4.55%
Municipal bonds - After 1 year but within 5 years
Amortized cost	$ 543
Fair value	$ 547
Yield	3.25%
Municipal bonds - After 10 years but within 15 years
Amortized cost	$ 2,661
Fair value	$ 2,684
Yield	4.48%
Municipal bonds - After 15 years
Amortized cost	$ 3,067
Fair value	$ 3,110
Yield	4.51%
Municipal bonds - Total
Amortized cost	$ 6,528
Fair value	$ 6,599
Yield	4.40%
Mortgage-backed securities - U.S. Government agency and U.S. Government-sponsored enterprises
Amortized cost	$ 48,866
Fair value	$ 48,964
Yield	2.33%
Collateralized mortgage obligations - U.S. Government agency and U.S. Government-sponsored enterprises
Amortized cost	$ 8,694
Fair value	$ 8,759
Yield	2.64%
Collateralized mortgage obligations - Non-agency
Amortized cost	$ 2,733
Fair value	$ 3,144
Yield	3.99%
SBA bonds
Amortized cost	$ 10,488
Fair value	$ 10,508
Yield	2.99%
CRA mutual funds
Amortized cost	$ 842
Fair value	$ 831
Yield	5.01%
Corporate bonds - After 5 years but within 10 years
Amortized cost	$ 2,000
Fair value	$ 2,045
Yield	5.50%
Preferred stock
Amortized cost	$ 7
Fair value	$ 166
Yield	5.48%
Securities available-for-sale
Amortized cost	$ 80,158
Fair value	$ 81,016
Yield	2.78%

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, 2017	Jun. 30, 2016
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, 2017	Dec. 31, 2009
Investments, Debt and Equity Securities [Abstract]
Sales of securities available-for-sale	$ 3,600
Pre-tax gain on sale of securities available-for-sale	148
Related tax expense on sale of securities available-for-sale	50
Recognized losses for deterioration in credit quality		$ 1,128
CRA mutual funds total fair value	831
CRA mutual funds total unrealized losses	$ (11)

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activites Loans
Residential 1-4 family	$ 300,750	$ 295,030
Residential 5+ multifamily	11,472	7,976
Construction of residential 1-4 family	10,376	10,951
Home equity lines of credit	35,806	35,487
Residential real estate	358,404	349,444
Commercial	175,469	155,628
Construction of commercial	5,570	3,481
Commercial real estate	181,039	159,109
Farm land	4,453	3,914
Vacant land	6,969	6,600
Real estate secured	550,865	519,067
Commercial and industrial	110,424	121,144
Municipal	12,737	8,626
Consumer	4,826	5,312
Loans receivable, gross	678,852	654,149
Deferred loan origination fees and costs, net	1,200	1,247
Allowance for loan losses	(6,186)	(5,816)
Loans receivable, net	673,866	649,580
Loans held-for-sale
Residential 1-4 family	594
Acquired Loans
Residential 1-4 family	5,687	6,098
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	11,143	11,747
Commercial	70,146	79,854
Construction of commercial	1,724	1,917
Commercial real estate	71,870	81,771
Farm land
Vacant land
Real estate secured	83,013	93,518
Commercial and industrial	15,222	20,329
Municipal
Consumer	56	68
Loans receivable, gross	98,291	113,915
Deferred loan origination fees and costs, net
Allowance for loan losses	(307)	(311)
Loans receivable, net	97,984	113,604
Loans held-for-sale
Residential 1-4 family
Total
Residential 1-4 family	306,437	301,128
Residential 5+ multifamily	16,928	13,625
Construction of residential 1-4 family	10,376	10,951
Home equity lines of credit	35,806	35,487
Residential real estate	369,547	361,191
Commercial	245,615	235,482
Construction of commercial	7,294	5,398
Commercial real estate	252,909	240,880
Farm land	4,453	3,914
Vacant land	6,969	6,600
Real estate secured	633,878	612,585
Commercial and industrial	125,646	141,473
Municipal	12,737	8,626
Consumer	4,882	5,380
Loans receivable, gross	777,143	768,064
Deferred loan origination fees and costs, net	1,200	1,247
Allowance for loan losses	(6,493)	(6,127)
Loans receivable, net	771,850	763,184
Loans held-for-sale
Residential 1-4 family	$ 594

LOANS - Composition of loans 32

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activities Loans - Pass
Residential 1-4 family	$ 291,306	$ 285,939
Residential 5+ multifamily	9,473	5,907
Construction of residential 1-4 family	10,376	10,951
Home equity lines of credit	34,709	34,299
Residential real estate	345,864	337,096
Commercial	165,520	145,849
Construction of commercial	5,458	3,366
Commercial real estate	170,978	149,215
Farm land	3,467	2,912
Vacant land	6,888	6,513
Real estate secured	527,197	495,736
Commercial and industrial	108,798	118,804
Municipal	12,737	8,626
Consumer	4,809	5,288
Loans receivable, gross	653,541	628,454
Business Activities Loans - Special mention
Residential 1-4 family	6,030	6,170
Residential 5+ multifamily	1,841	1,906
Construction of residential 1-4 family
Home equity lines of credit	819	512
Residential real estate	8,690	8,588
Commercial	3,675	3,759
Construction of commercial
Commercial real estate	3,675	3,759
Farm land
Vacant land	81	87
Real estate secured	12,446	12,434
Commercial and industrial	1,337	1,734
Municipal
Consumer	17	24
Loans receivable, gross	13,800	14,192
Business Activities Loans - Substandard
Residential 1-4 family	3,414	2,832
Residential 5+ multifamily	158	163
Construction of residential 1-4 family
Home equity lines of credit	278	676
Residential real estate	3,850	3,671
Commercial	6,274	6,020
Construction of commercial	112	115
Commercial real estate	6,386	6,135
Farm land	986	1,002
Vacant land
Real estate secured	11,222	10,808
Commercial and industrial	289	606
Municipal
Consumer
Loans receivable, gross	11,511	11,414
Business Activities Loans - Doubtful
Residential 1-4 family		89
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate		89
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured		89
Commercial and industrial
Municipal
Consumer
Loans receivable, gross		89
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	300,750	295,030
Residential 5+ multifamily	11,472	7,976
Construction of residential 1-4 family	10,376	10,951
Home equity lines of credit	35,806	35,487
Residential real estate	358,404	349,444
Commercial	175,469	155,628
Construction of commercial	5,570	3,481
Commercial real estate	181,039	159,109
Farm land	4,453	3,914
Vacant land	6,969	6,600
Real estate secured	550,865	519,067
Commercial and industrial	110,424	121,144
Municipal	12,737	8,626
Consumer	4,826	5,312
Loans receivable, gross	678,852	654,149
Acquired Loans - Pass
Residential 1-4 family	5,534	5,989
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	10,990	11,638
Commercial	63,060	70,007
Construction of commercial	1,466	1,659
Commercial real estate	64,526	71,666
Farm land
Vacant land
Real estate secured	75,516	83,304
Commercial and industrial	14,247	19,110
Municipal
Consumer	54	65
Loans receivable, gross	89,817	102,479
Acquired Loans - Special Mention
Residential 1-4 family	105	109
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	105	109
Commercial	2,539	4,059
Construction of commercial
Commercial real estate	2,539	4,059
Farm land
Vacant land
Real estate secured	2,644	4,168
Commercial and industrial	915	1,160
Municipal
Consumer	2	3
Loans receivable, gross	3,561	5,331
Acquired Loans - Substandard
Residential 1-4 family	48
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	48
Commercial	4,547	5,788
Construction of commercial	258	258
Commercial real estate	4,805	6,046
Farm land
Vacant land
Real estate secured	4,853	6,046
Commercial and industrial	58	59
Municipal
Consumer
Loans receivable, gross	4,911	6,105
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	2
Municipal
Consumer
Loans receivable, gross	2
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	5,687	6,098
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	11,143	11,747
Commercial	70,146	79,854
Construction of commercial	1,724	1,917
Commercial real estate	71,870	81,771
Farm land
Vacant land
Real estate secured	83,013	93,518
Commercial and industrial	15,222	20,329
Municipal
Consumer	56	68
Loans receivable, gross	$ 98,291	$ 113,915

LOANS - Composition of loans 33

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activities Loans - Current
Residential 1-4 family	$ 297,988	$ 291,941
Residential 5+ multifamily	11,472	7,976
Construction of residential 1-4 family	10,376	10,951
Home equity lines of credit	35,562	35,190
Residential real estate	355,398	346,058
Commercial	173,231	152,905
Construction of commercial	5,570	3,481
Commercial real estate	178,801	156,386
Farm land	3,730	2,402
Vacant land	6,969	6,575
Real estate secured	544,898	511,421
Commercial and industrial	110,097	120,719
Municipal	12,737	8,626
Consumer	4,823	5,268
Loans receivable, gross	672,555	646,034
Business Activities Loans - Past due 30-59 days
Residential 1-4 family	184	1,161
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	144	155
Residential real estate	328	1,316
Commercial	165	451
Construction of commercial
Commercial real estate	165	451
Farm land		789
Vacant land		25
Real estate secured	493	2,581
Commercial and industrial	190	140
Municipal
Consumer	1	26
Loans receivable, gross	684	2,747
Business Activities Loans - Past due 60-89 days
Residential 1-4 family	1,073	213
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	100	88
Residential real estate	1,173	301
Commercial	280	250
Construction of commercial
Commercial real estate	280	250
Farm land
Vacant land
Real estate secured	1,453	551
Commercial and industrial		239
Municipal
Consumer	2	15
Loans receivable, gross	1,455	805
Business Activities Loans - Past due 90-179 days
Residential 1-4 family	160	327
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	160	327
Commercial		1,793
Construction of commercial
Commercial real estate		1,793
Farm land
Vacant land
Real estate secured	160	2,120
Commercial and industrial	65	46
Municipal
Consumer		3
Loans receivable, gross	225	2,169
Business Activities Loans - Past due 180 days and over
Residential 1-4 family	1,345	1,388
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit		54
Residential real estate	1,345	1,442
Commercial	1,793	229
Construction of commercial
Commercial real estate	1,793	229
Farm land	723	723
Vacant land
Real estate secured	3,861	2,394
Commercial and industrial	72
Municipal
Consumer
Loans receivable, gross	3,933	2,394
Business Activities Loans - Past due 30 days and over
Residential 1-4 family	2,762	3,089
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	244	297
Residential real estate	3,006	3,386
Commercial	2,238	2,723
Construction of commercial
Commercial real estate	2,238	2,723
Farm land	723	1,512
Vacant land		25
Real estate secured	5,967	7,646
Commercial and industrial	327	425
Municipal
Consumer	3	44
Loans receivable, gross	6,297	8,115
Business Activities Loans - Accruing 90 days and over
Residential 1-4 family	89	236
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	89	236
Commercial
Construction of commercial
Commercial real estate
Farm land
Vacant land
Real estate secured	89	236
Commercial and industrial		20
Municipal
Consumer
Loans receivable, gross	89	256
Business Activities Loans - Non-accrual
Residential 1-4 family	1,934	1,920
Residential 5+ multifamily	158	163
Construction of residential 1-4 family
Home equity lines of credit	70	519
Residential real estate	2,162	2,602
Commercial	1,793	2,022
Construction of commercial
Commercial real estate	1,793	2,022
Farm land	986	1,002
Vacant land
Real estate secured	4,941	5,626
Commercial and industrial	137	27
Municipal
Consumer		4
Loans receivable, gross	5,078	5,657
Acquired Loans - Current
Residential 1-4 family	5,598	5,954
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	11,054	11,603
Commercial	67,058	76,471
Construction of commercial	1,466	1,659
Commercial real estate	68,524	78,130
Farm land
Vacant land
Real estate secured	79,578	89,733
Commercial and industrial	15,110	19,904
Municipal
Consumer	56	68
Loans receivable, gross	94,744	109,705
Acquired Loans - Past due 30-59 days
Residential 1-4 family	89	144
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	89	144
Commercial		762
Construction of commercial
Commercial real estate		762
Farm land
Vacant land
Real estate secured	89	906
Commercial and industrial	70	425
Municipal
Consumer
Loans receivable, gross	159	1,331
Acquired Loans - Past due 60-89 days
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	720
Construction of commercial
Commercial real estate	720
Farm land
Vacant land
Real estate secured	720
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	720
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	1,000	346
Construction of commercial
Commercial real estate	1,000	346
Farm land
Vacant land
Real estate secured	1,000	346
Commercial and industrial	41
Municipal
Consumer
Loans receivable, gross	1,041	346
Acquired Loans - Past due 180 days and over
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	1,368	2,275
Construction of commercial	258	258
Commercial real estate	1,626	2,533
Farm land
Vacant land
Real estate secured	1,626	2,533
Commercial and industrial	1
Municipal
Consumer
Loans receivable, gross	1,627	2,533
Acquired Loans - Past due 30 days and over
Residential 1-4 family	89	144
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	89	144
Commercial	3,088	3,383
Construction of commercial	258	258
Commercial real estate	3,346	3,641
Farm land
Vacant land
Real estate secured	3,435	3,785
Commercial and industrial	112	425
Municipal
Consumer
Loans receivable, gross	3,547	4,210
Acquired Loans - Accruing 90 days and over
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	1,000
Construction of commercial
Commercial real estate	1,000
Farm land
Vacant land
Real estate secured	1,000
Commercial and industrial	42
Municipal
Consumer
Loans receivable, gross	1,042
Acquired Loans - Non-accrual
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	1,368	2,621
Construction of commercial	258	258
Commercial real estate	1,626	2,879
Farm land
Vacant land
Real estate secured	1,626	2,879
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	$ 1,626	$ 2,879

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)Integer	Jun. 30, 2016USD ($)Integer
Business Activities Loans - Residential real estate
Quantity of troubled debt restructurings | Integer		3
Pre-modification balance		$ 316
Post-modification balance		$ 316
Business Activities Loans - Commercial real estate
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 600	$ 1,863
Post-modification balance	$ 600	$ 1,863
Business Activities Loans - Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	1	4
Pre-modification balance	$ 600	$ 2,179
Post-modification balance	$ 600	$ 2,179
Business Activities Loans - Rate reduction and term extension
Quantity of troubled debt restructurings | Integer		2
Pre-modification balance		$ 262
Post-modification balance		$ 262
Business Activities Loans - Debt consolidation
Quantity of troubled debt restructurings | Integer		1
Pre-modification balance		$ 1,863
Post-modification balance		$ 1,863
Business Activities Loans - Term extension
Quantity of troubled debt restructurings | Integer	1	1
Pre-modification balance	$ 600	$ 54
Post-modification balance	$ 600	$ 54

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Activities Loans - Residential
Beginning balance	$ 2,482	$ 2,458	$ 2,427	$ 2,477
Provision	(94)	59	2	146
Charge-offs	(37)	(287)	(80)	(394)
Recoveries	2	18	4	19
Ending balance	2,353	2,248	2,353	2,248
Business Activities Loans - Commercial
Beginning balance	1,752	1,585	1,683	1,466
Provision	347	149	454	302
Charge-offs			(38)	(35)
Recoveries				1
Ending balance	2,099	1,734	2,099	1,734
Business Activities Loans - Land
Beginning balance	189	164	198	188
Provision	(35)	25	(29)	24
Charge-offs		(23)	(15)	(46)
Recoveries
Ending balance	154	166	154	166
Business Activities Loans - Real Estate
Beginning balance	4,423	4,207	4,308	4,131
Provision	218	233	427	472
Charge-offs	(37)	(310)	(133)	(475)
Recoveries	2	18	4	20
Ending balance	4,606	4,148	4,606	4,148
Business Activities Loans - Commercial and industrial
Beginning balance	866	781	1,043	683
Provision	162	60	(56)	185
Charge-offs	(56)		(57)	(32)
Recoveries	7	10	49	15
Ending balance	979	851	979	851
Business Activities Loans - Municipal
Beginning balance	55	59	53	61
Provision	(37)	(3)	(35)	(5)
Charge-offs
Recoveries
Ending balance	18	56	18	56
Business Activities Loans - Consumer
Beginning balance	92	114	75	124
Provision	(9)	(26)	31	(15)
Charge-offs	(15)	(7)	(46)	(30)
Recoveries	1	8	9	10
Ending balance	69	89	69	89
Business Activities Loans - Unallocated
Beginning balance	530	412	337	482
Provision	(16)	(78)	177	(148)
Charge-offs
Recoveries
Ending balance	514	334	514	334
Business Activities Loans - Totals
Beginning balance	5,966	5,573	5,816	5,481
Provision	318	186	544	489
Charge-offs	(108)	(317)	(236)	(537)
Recoveries	10	36	62	45
Ending balance	6,186	5,478	6,186	5,478
Acquired Loans - Residential
Beginning balance		69		79
Provision				(10)
Charge-offs
Recoveries
Ending balance		69		69
Acquired Loans - Commercial
Beginning balance	271	94	275	132
Provision	13	40	131	96
Charge-offs		(1)	(150)	(98)
Recoveries	1	1	29	4
Ending balance	285	134	285	134
Acquired Loans - Land
Beginning balance
Provision
Charge-offs
Recoveries
Ending balance
Acquired Loans - Real Estate
Beginning balance	271	163	275	211
Provision	13	40	131	86
Charge-offs		(1)	(150)	(98)
Recoveries	1	1	29	4
Ending balance	285	203	285	203
Acquired Loans - Commercial and industrial
Beginning balance	48	141	36	24
Provision	33	299	41	413
Charge-offs	(64)	(414)	(64)	(415)
Recoveries	5	11	9	15
Ending balance	22	37	22	37
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 - Totals
Beginning balance	319	304	311	235
Provision	46	339	172	499
Charge-offs	(64)	(415)	(214)	(513)
Recoveries	6	12	38	19
Ending balance	$ 307	$ 240	$ 307	$ 240

LOANS - Composition of loans 36

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activities Loans - Collectively evaluated Loans
Residential 1-4 family	$ 295,656	$ 289,900
Residential 5+ multifamily	9,712	6,153
Construction of residential 1-4 family	10,376	10,951
Home equity lines credit	35,624	34,854
Residential real estate	351,368	341,858
Commercial	171,448	151,940
Construction of commercial	5,458	3,366
Commercial real estate	176,906	155,306
Farm land	3,467	2,912
Vacant land	6,765	6,390
Real estate secured	538,506	506,466
Commercial and industrial	110,234	121,060
Municipal	12,737	8,626
Consumer	4,826	5,309
Unallocated allowance
Totals	666,303	641,461
Business Activities Loans - Collectively evaluated Allowance
Residential 1-4 family	1,782	1,797
Residential 5+ multifamily	114	56
Construction of residential 1-4 family	71	91
Home equity lines credit	248	326
Residential real estate	2,215	2,270
Commercial	1,990	1,587
Construction of commercial	44	36
Commercial real estate	2,034	1,623
Farm land	23	28
Vacant land	128	166
Real estate secured	4,400	4,087
Commercial and industrial	947	1,043
Municipal	18	53
Consumer	69	75
Unallocated allowance	514	337
Totals	5,948	5,595
Business Activities Loans - Individually evaluated Loans
Residential 1-4 family	5,094	5,130
Residential 5+ multifamily	1,760	1,823
Construction of residential 1-4 family
Home equity lines credit	182	633
Residential real estate	7,036	7,586
Commercial	4,021	3,688
Construction of commercial	112	115
Commercial real estate	4,133	3,803
Farm land	986	1,002
Vacant land	204	210
Real estate secured	12,359	12,601
Commercial and industrial	190	84
Municipal
Consumer		3
Unallocated allowance
Totals	12,549	12,688
Business Activities Loans - Individually evaluated Allowance
Residential 1-4 family	135	129
Residential 5+ multifamily	2	6
Construction of residential 1-4 family
Home equity lines credit	1	22
Residential real estate	138	157
Commercial	64	60
Construction of commercial
Commercial real estate	64	60
Farm land
Vacant land	3	4
Real estate secured	205	221
Commercial and industrial	32
Municipal
Consumer
Unallocated allowance
Totals	237	221
Business Activities Loans - Total portfolio Loans
Residential 1-4 family	300,750	295,030
Residential 5+ multifamily	11,472	7,976
Construction of residential 1-4 family	10,376	10,951
Home equity lines credit	35,806	35,487
Residential real estate	358,404	349,444
Commercial	175,469	155,628
Construction of commercial	5,570	3,481
Commercial real estate	181,039	159,109
Farm land	4,453	3,914
Vacant land	6,969	6,600
Real estate secured	550,865	519,067
Commercial and industrial	110,424	121,144
Municipal	12,737	8,626
Consumer	4,826	5,312
Unallocated allowance
Totals	678,852	654,149
Business Activities Loans - Total portfolio Allowance
Residential 1-4 family	1,917	1,926
Residential 5+ multifamily	116	62
Construction of residential 1-4 family	71	91
Home equity lines credit	249	348
Residential real estate	2,353	2,427
Commercial	2,054	1,647
Construction of commercial	44	36
Commercial real estate	2,098	1,683
Farm land	23	28
Vacant land	131	170
Real estate secured	4,605	4,308
Commercial and industrial	979	1,043
Municipal	18	53
Consumer	69	75
Unallocated allowance	514	337
Totals	6,185	5,816
Acquired Loans - Collectively evaluated Loans
Residential 1-4 family	5,687	6,098
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	11,143	11,747
Commercial	64,212	72,569
Construction of commercial	1,466	1,659
Commercial real estate	65,678	74,228
Farm land
Vacant land
Real estate secured	76,821	85,975
Commercial and industrial	15,097	20,020
Municipal
Consumer	41	52
Unallocated allowance
Totals	91,959	106,047
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	28	22
Construction of commercial	2	3
Commercial real estate	30	25
Farm land
Vacant land
Real estate secured	30	25
Commercial and industrial	11	16
Municipal
Consumer
Unallocated allowance
Totals	41	41
Acquired Loans - Individually evaluated Loans
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	2,147	3,388
Construction of commercial	258	258
Commercial real estate	2,405	3,646
Farm land
Vacant land
Real estate secured	2,405	3,646
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	2,405	3,646
Acquired Loans - Individually evaluated Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	186	191
Construction of commercial
Commercial real estate	186	191
Farm land
Vacant land
Real estate secured	186	191
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	186	191
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	3,787	3,897
Construction of commercial
Commercial real estate	3,787	3,897
Farm land
Vacant land
Real estate secured	3,787	3,897
Commercial and industrial	125	309
Municipal
Consumer	15	16
Unallocated allowance
Totals	3,927	4,222
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	69	59
Construction of commercial
Commercial real estate	69	59
Farm land
Vacant land
Real estate secured	69	59
Commercial and industrial	11	20
Municipal
Consumer
Unallocated allowance
Totals	80	79
Acquired Loans - Total portfolio Loans
Residential 1-4 family	5,687	6,098
Residential 5+ multifamily	5,456	5,649
Construction of residential 1-4 family
Home equity lines credit
Residential real estate	11,143	11,747
Commercial	70,146	79,854
Construction of commercial	1,724	1,917
Commercial real estate	71,870	81,771
Farm land
Vacant land
Real estate secured	83,013	93,518
Commercial and industrial	15,222	20,329
Municipal
Consumer	56	68
Unallocated allowance
Totals	98,291	113,915
Acquired Loans - Total portfolio Allowance
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit
Residential real estate
Commercial	283	272
Construction of commercial	2	3
Commercial real estate	285	275
Farm land
Vacant land
Real estate secured	285	275
Commercial and industrial	22	36
Municipal
Consumer
Unallocated allowance
Totals	$ 307	$ 311

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activities Loans - Collectively evaluated Loans
Performing loans	$ 661,480	$ 636,645
Potential problem loans	4,823	4,816
Impaired loans
Unallocated allowance
Totals	666,303	641,461
Business Activities Loans - Collectively evaluated Allowance
Performing loans	5,226	5,062
Potential problem loans	208	196
Impaired loans
Unallocated allowance	514	337
Totals	5,948	5,595
Business Activities Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	12,549	12,688
Unallocated allowance
Totals	12,549	12,688
Business Activities Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	238	221
Unallocated allowance
Totals	238	221
Business Activities Loans - Total portfolio Loans
Performing loans	661,480	636,645
Potential problem loans	4,823	4,816
Impaired loans	12,549	12,688
Unallocated allowance
Totals	678,852	654,149
Business Activities Loans - Total portfolio Allowance
Performing loans	5,226	5,062
Potential problem loans	208	196
Impaired loans	238	221
Unallocated allowance	514	337
Totals	6,186	5,816
Acquired Loans - Collectively evaluated Loans
Performing loans	93,380	107,810
Potential problem loans	2,506	2,459
Impaired loans
Unallocated allowance
Totals	95,886	110,269
Acquired Loans - Collectively evaluated Allowance
Performing loans	55	55
Potential problem loans	66	65
Impaired loans
Unallocated allowance
Totals	121	120
Acquired Loans - Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	2,405	3,646
Unallocated allowance
Totals	2,405	3,646
Acquired Loans - Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	186	191
Unallocated allowance
Totals	186	191
Acquired Loans - Total portfolio Loans
Performing loans	93,380	107,810
Potential problem loans	2,506	2,459
Impaired loans	2,405	3,646
Unallocated allowance
Totals	98,291	113,915
Acquired Loans - Total portfolio Allowance
Performing loans	55	55
Potential problem loans	66	65
Impaired loans	186	191
Unallocated allowance
Totals	$ 307	$ 311

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Book
Residential	$ 3,395	$ 3,516
Home equity lines of credit	47	406
Residential real estate	3,442	3,922
Commercial	1,571	3,021
Construction of commercial	112
Farm land
Vacant land	45	46
Real estate secured	5,170	6,989
Commercial and industrial	110
Consumer
Totals	5,280	6,989
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Note
Residential	3,501	3,684
Home equity lines of credit	49	435
Residential real estate	3,550	4,119
Commercial	1,612	3,304
Construction of commercial	118
Farm land
Vacant land	45	46
Real estate secured	5,325	7,469
Commercial and industrial	110
Consumer
Totals	5,435	7,469
Business Activities Loans - Impaired loans with specific allowance - Loan balance - Average
Residential	3,451	5,907
Home equity lines of credit	99	462
Residential real estate	3,550	6,369
Commercial	2,108	3,347
Construction of commercial	16	56
Farm land		394
Vacant land	45	1,786
Real estate secured	5,719	11,952
Commercial and industrial	16	31
Consumer
Totals	5,735	11,983
Business Activities Loans - Impaired loans with specific allowance - Specific allowance
Residential	137	135
Home equity lines of credit	1	22
Residential real estate	138	157
Commercial	64	60
Construction of commercial
Farm land
Vacant land	3	4
Real estate secured	205	221
Commercial and industrial	32
Consumer
Totals	237	221
Business Activities Loans - Impaired loans with specific allowance - Income recognized
Residential	53	88
Home equity lines of credit	1	2
Residential real estate	54	90
Commercial	30	34
Construction of commercial	4
Farm land
Vacant land	1	3
Real estate secured	89	127
Commercial and industrial
Consumer
Totals	89	127
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential	3,460	3,437
Home equity lines of credit	135	227
Residential real estate	3,595	3,664
Commercial	2,450	667
Construction of commercial		115
Farm land	986	1,002
Vacant land	159	164
Real estate secured	7,190	5,612
Commercial and industrial	79	84
Consumer		3
Totals	7,269	5,699
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential	4,198	4,031
Home equity lines of credit	186	277
Residential real estate	4,384	4,308
Commercial	2,959	897
Construction of commercial		121
Farm land	1,151	1,140
Vacant land	184	189
Real estate secured	8,678	6,655
Commercial and industrial	112	130
Consumer	7	16
Totals	8,797	6,801
Business Activities Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential	3,597	2,822
Home equity lines of credit	183	331
Residential real estate	3,780	3,153
Commercial	1,687	934
Construction of commercial	97	63
Farm land	982	622
Vacant land	162	195
Real estate secured	6,708	4,967
Commercial and industrial	124	201
Consumer	2	7
Totals	6,834	5,175
Business Activities Loans - Impaired loans with no specific allowance - Income recognized
Residential	57	94
Home equity lines of credit	10	3
Residential real estate	67	97
Commercial	22	42
Construction of commercial		8
Farm land
Vacant land	6	12
Real estate secured	95	159
Commercial and industrial	4	3
Consumer
Totals	99	162
Acquired Loans - Impaired loans with specific allowance - Loan balance - Book
Residential
Home equity lines of credit
Residential real estate
Commercial	833	1,254
Construction of commercial
Farm land
Vacant land
Real estate secured	833	1,254
Commercial and industrial
Consumer
Totals	833	1,254
Acquired Loans - Impaired loans with specific allowance - Loan balance - Note
Residential
Home equity lines of credit
Residential real estate
Commercial	1,186	1,628
Construction of commercial
Farm land
Vacant land
Real estate secured	1,186	1,628
Commercial and industrial
Consumer
Totals	1,186	1,628
Acquired Loans - Impaired loans with specific allowance - Loan balance - Average
Residential		504
Home equity lines of credit
Residential real estate		504
Commercial	1,104	725
Construction of commercial
Farm land
Vacant land
Real estate secured	1,104	1,229
Commercial and industrial		77
Consumer
Totals	1,104	1,306
Acquired Loans - Impaired loans with specific allowance - Specific allowance
Residential
Home equity lines of credit
Residential real estate
Commercial	186	191
Construction of commercial
Farm land
Vacant land
Real estate secured	186	191
Commercial and industrial
Consumer
Totals	186	191
Acquired Loans - Impaired loans with specific allowance - Income recognized
Residential
Home equity lines of credit
Residential real estate
Commercial	7	14
Construction of commercial
Farm land
Vacant land
Real estate secured	7	14
Commercial and industrial
Consumer
Totals	7	14
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Book
Residential
Home equity lines of credit
Residential real estate
Commercial	1,314	2,134
Construction of commercial	258	258
Farm land
Vacant land
Real estate secured	1,572	2,392
Commercial and industrial
Consumer
Totals	1,572	2,392
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Note
Residential
Home equity lines of credit
Residential real estate
Commercial	1,896	2,621
Construction of commercial	272	272
Farm land
Vacant land
Real estate secured	2,168	2,893
Commercial and industrial
Consumer
Totals	2,168	2,893
Acquired Loans - Impaired loans with no specific allowance - Loan balance - Average
Residential		238
Home equity lines of credit
Residential real estate		238
Commercial	1,564	2,112
Construction of commercial	258	258
Farm land
Vacant land
Real estate secured	1,822	2,608
Commercial and industrial		19
Consumer
Totals	1,822	2,627
Acquired Loans - Impaired loans with no specific allowance - Income recognized
Residential
Home equity lines of credit
Residential real estate
Commercial	43	38
Construction of commercial
Farm land
Vacant land
Real estate secured	43	38
Commercial and industrial
Consumer
Totals	$ 43	$ 38

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
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	$ 452	$ 578
Investment in residential mortgage loans collateralized by real estate in process of foreclosure	1,200		$ 2,100
Carrying amount of foreclosed residential real estate held as a result of obtaining physical possession	$ 1,100		$ 3,600

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, 2017	Dec. 31, 2016
Residential mortgage loans serviced for others	$ 122,043	$ 125,243
Fair value of mortgage servicing rights	$ 916	$ 902

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Mortgage Servicing Rights
Balance, beginning of period		$ 296	$ 456	$ 339	$ 487
Originated		14	24	38	45
Amortization	[1]	(69)	(64)	(136)	(116)
Balance, end of period		241	416	241	416
Valuation Allowance
Balance, beginning of period		(25)	(24)	(23)	(4)
Decrease (increase) in impairment reserve	[1]	1	(1)	(1)	(21)
Balance, end of period		(24)	(25)	(24)	(25)
Mortgage servicing rights, net		$ 217	$ 391	$ 217	$ 391
[1]	(1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Securities and loans pledged - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Securities available-for-sale (at fair value)	$ 70,009	$ 63,833
Loans receivable (at book value)	193,833	203,145
Total pledged assets	$ 263,842	$ 266,978

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Jun. 30, 2017USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 65,000
Securities pledged to secure repurchase agreements	4,900
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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net income	$ 1,882	$ 1,735	$ 3,487	$ 3,247
Less: Undistributed earnings allocated to participating securities	(15)	(14)	(26)	(27)
Net income allocated to common stock	1,867	1,721	3,461	3,220
Weighted-average common shares issued	2,780	2,756	2,773	2,751
Less: Unvested restricted stock awards	(23)	(22)	(20)	(22)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,757	2,734	2,753	2,729
Add: Dilutive effect of unvested restricted stock awards	18	15	19	16
Weighted-average common shares outstanding used to calculate diluted earnings per common share	$ 2,775	$ 2,749	$ 2,772	$ 2,745
Earnings per common share (basic)	$ .68	$ .63	$ 1.26	$ 1.18
Earnings per common share (diluted)	$ .67	$ .63	$ 1.25	$ 1.17

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 97,802	$ 96,166
Actual - Ratio	13.10%	13.26%
For Capital Adequacy - Amount	$ 59,725	$ 57,997
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	$ 81,150	$ 79,868
Actual - Ratio	10.87%	11.02%
For Capital Adequacy - Amount	$ 44,794	$ 43,498
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	$ 81,150	$ 79,868
Actual - Ratio	10.87%	11.02%
For Capital Adequacy - Amount	$ 33,595	$ 32,623
For Capital Adequacy - Ratio	4.50%	4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Tier 1 Capital (to average assets)
Actual - Amount	$ 81,150	$ 79,868
Actual - Ratio	8.77%	8.69%
For Capital Adequacy - Amount	$ 37,013	$ 37,282
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		$ 93,690	$ 94,815
Actual - Ratio		12.92%	12.70%
For Capital Adequacy - Amount		$ 57,996	$ 59,724
For Capital Adequacy - Ratio		8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 72,495	$ 74,655
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		10.00%	10.00%
Tier 1 Capital (to risk-weighted assets)
Actual - Amount		$ 87,392	$ 88,163
Actual - Ratio		12.05%	11.81%
For Capital Adequacy - Amount		$ 43,497	$ 44,793
For Capital Adequacy - Ratio		6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 57,996	$ 59,724
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		$ 87,392	$ 88,163
Actual - Ratio		12.05%	11.81%
For Capital Adequacy - Amount		$ 32,623	$ 33,595
For Capital Adequacy - Ratio		4.50%	4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 47,122	$ 48,526
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		6.50%	6.50%
Tier 1 Capital (to average assets)
Actual - Amount		$ 87,392	$ 88,163
Actual - Ratio		9.51%	9.53%
For Capital Adequacy - Amount		$ 37,762	$ 37,007
For Capital Adequacy - Ratio		4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount		$ 45,953	$ 46,259
To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio		5.00%	5.00%

BENEFITS - Pre-tax expense asso

BENEFITS - Pre-tax expense associated with stock options and restricted stock (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total stock based compensation expense	$ 58	$ 46	$ 122	$ 93
Pre-tax expense associated with stock options and restricted stock awards as well as related recognized tax benefits
Stock Options
Restricted stock awards	61	53	122	93
Total stock based compensation expense	61	53	122	93
Related tax benefits recognized in earnings	$ 21	$ 18	$ 41	$ 32

BENEFITS (Details Narrative)

BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	May 26, 2017	Apr. 28, 2017	Feb. 20, 2017	Feb. 14, 2017	Feb. 09, 2017	Feb. 01, 2017	Jan. 27, 2017	Jan. 09, 2017	Jan. 29, 2016	Jan. 02, 2015
Retirement Benefits [Abstract]
401(k) Plan contribution expense	$ 187	$ 173	$ 472	$ 389
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	17	19	36	37
Employee Stock Ownership Plan (ESOP)
ESOP expense	15	45	49	81
Other Retirement Plans
Expenses related to discretionary contribution to Executives' account	21	10	41	20
Grants of Phantom Stock Appreciation Units pursuant to the Plan											56,600		47,470	48,894
Grants of Restricted Stock and Options
Stock options exercised by former Riverside Bank executives, shares							1,350	5,400	1,350	1,350		2,700
Stock options exercised by former Riverside Bank executives, price per share							$ 25.93	$ 25.93	$ 25.93	$ 25.93		$ 25.93
Shares of restricted stock granted pursuant to LTIP					200	10,750							15,800
Fair value of the stock as of the grant date, LTIP					$ 8	$ 419							$ 466
Stock granted to directors as a component of annual compensation					2,024	2,056
Fair value of the stock as of the grant date, component of annual compensation					$ 83	$ 80
Expense related to grants of restricted stock and options	$ 58	46	$ 122	93
Total shares of common stock available under 2017 LTIP	200,000		200,000
Unrecognized compensation cost relating to awards	$ 738	$ 483	$ 738	$ 483
Forfeiture of restricted common stock, shares			(200)
Excess tax benefit not included in pre-tax expense associated with stock options and restricted stock awards	$ 105		$ 105

FAIR VALUE OF ASSETS AND LIAB48

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets at fair value
Assets at fair value on a recurring basis
Municipal bonds	$ 6,599	$ 15,996
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	48,964	53,301
Collateralized mortgage obligations: U.S. Government agencies	8,759	1,474
Collateralized mortgage obligations: Non-agency	3,144	3,735
SBA bonds	10,508	2,064
CRA mutual funds	831	818
Corporate bonds	2,045	2,013
Preferred stock	166	222
Securities available-for-sale	81,016	79,623
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	4,720	5,256
Other real estate owned	3,854	3,773
Fair Value Measurements Using - Level 1
Assets at fair value on a recurring basis
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	831	818
Corporate bonds
Preferred stock	166	222
Securities available-for-sale	997	1,040
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
Municipal bonds	6,599	15,996
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	48,964	53,301
Collateralized mortgage obligations: U.S. Government agencies	8,759	1,474
Collateralized mortgage obligations: Non-agency	3,144	3,735
SBA bonds	10,508	2,064
CRA mutual funds
Corporate bonds	2,045	2,013
Preferred stock
Securities available-for-sale	80,019	78,583
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 3
Assets at fair value on a recurring basis
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	4,720	5,256
Other real estate owned	$ 3,854	$ 3,773

FAIR VALUE OF ASSETS AND LIAB49

FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying value
Financial Assets
Cash and cash equivalents	$ 61,392	$ 35,485
Securities available-for-sale	81,016	79,623
Federal Home Loan Bank stock	3,452	3,211
Loans held-for-sale	594
Loans receivable, net	771,850	763,184
Accrued interest receivable	2,303	2,424
Cash surrender value of life insurance	14,211	14,038
Financial Liabilities
Demand (non-interest-bearing)	219,660	218,420
Demand (interest-bearing)	132,899	127,854
Money market	194,704	182,476
Savings and other	145,937	135,435
Certificates of deposit	118,141	117,585
Deposits	811,341	781,770
Repurchase agreements	2,126	5,535
FHLBB advances	47,302	37,188
Subordinated debt	9,799	9,788
Note payable	327	344
Capital lease liability	1,987	418
Accrued interest payable	88	89
Estimated fair value
Financial Assets
Cash and cash equivalents	61,392	35,485
Securities available-for-sale	81,016	79,623
Federal Home Loan Bank stock	3,452	3,211
Loans held-for-sale	594
Loans receivable, net	787,484	774,442
Accrued interest receivable	2,303	2,424
Cash surrender value of life insurance	14,211	14,038
Financial Liabilities
Demand (non-interest-bearing)	219,660	218,420
Demand (interest-bearing)	132,899	127,854
Money market	194,704	182,476
Savings and other	145,937	135,435
Certificates of deposit	119,107	118,610
Deposits	812,307	782,795
Repurchase agreements	2,126	5,535
FHLBB advances	48,286	38,440
Subordinated debt	10,433	10,378
Note payable	360	377
Capital lease liability	2,285	841
Accrued interest payable	88	89
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	61,392	35,485
Securities available-for-sale	997	1,040
Federal Home Loan Bank stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance	14,211	14,038
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	80,019	78,583
Federal Home Loan Bank stock	3,452	3,211
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Subordinated debt
Note payable
Capital lease liability
Accrued interest payable
Fair Value Measurements Using - Level 3
Financial Assets
Cash and cash equivalents
Securities available-for-sale
Federal Home Loan Bank stock
Loans held-for-sale	594
Loans receivable, net	787,484	774,442
Accrued interest receivable	2,303	2,424
Cash surrender value of life insurance
Financial Liabilities
Demand (non-interest-bearing)	219,660	218,420
Demand (interest-bearing)	132,899	127,854
Money market	194,704	182,476
Savings and other	145,937	135,435
Certificates of deposit	119,107	118,610
Deposits	812,307	782,795
Repurchase agreements	2,126	5,535
FHLBB advances	48,286	38,440
Subordinated debt	10,433	10,378
Note payable	360	377
Capital lease liability	2,285	841
Accrued interest payable	$ 88	$ 89