Salisbury Bancorp (SAL) 10-Q 10 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 10, 2019
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	0001060219
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		2,808,706
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 6,944	$ 7,238
Interest bearing demand deposits with other banks	41,685	51,207
Total cash and cash equivalents	48,629	58,445
Securities
Available-for-sale at fair value	98,255	91,818
CRA mutual fund at fair value	852	836
Federal Home Loan Bank of Boston stock at cost	3,372	4,496
Loans receivable, net (allowance for loan losses: $8,750 and $7,831)	911,188	909,279
Other real estate owned	741	1,810
Bank premises and equipment, net	17,812	18,175
Goodwill	13,815	13,815
Intangible assets (net of accumulated amortization: $4,601 and $4,497)	1,279	1,383
Accrued interest receivable	3,411	3,148
Cash surrender value of life insurance policies	15,267	14,438
Deferred taxes	766	1,276
Other assets	3,538	2,635
Total Assets	1,118,925	1,121,554
Deposits
Demand (non-interest bearing)	219,168	228,448
Demand (interest bearing)	157,123	153,586
Money market	203,309	204,219
Savings and other	190,011	178,807
Certificates of deposit	172,358	161,679
Total deposits	941,969	926,739
Repurchase agreements	2,951	4,104
Federal Home Loan Bank of Boston advances	47,712	67,154
Subordinated debt	9,841	9,835
Note payable	272	280
Financial lease obligations	3,046	3,081
Accrued interest and other liabilities	7,025	6,902
Total Liabilities	1,012,816	1,018,095
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,884,888 and 2,884,988; Outstanding: 2,806,681 and 2,806,781	281	281
Unearned compensation - restricted stock awards	(606)	(711)
Paid-in capital	43,765	43,770
Retained earnings	61,989	60,339
Accumulated other comprehensive income (loss), net	680	(220)
Total Shareholders' Equity	106,109	103,459
Total Liabilities and Shareholders' Equity	$ 1,118,925	$ 1,121,554

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Allowance for loan losses, loans receivable	$ 8,750	$ 7,831
Accumulated amortization, intangible assets	$ 4,601	$ 4,497
Shareholders' Equity
Common stock, par value	$ 0.10	$ .10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,884,888	2,884,988
Common stock, outstanding	2,806,681	2,806,781

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest and dividend income
Interest and fees on loans	$ 9,934	$ 8,649
Interest on debt securities
Taxable	621	460
Tax exempt	72	32
Other interest and dividends	227	159
Total interest and dividend income	10,854	9,300
Interest expense
Deposits	1,796	777
Repurchase agreements	3	1
Finance lease	46	35
Note payable	4	5
Subordinated debt	156	156
Federal Home Loan Bank of Boston advances	412	332
Total interest expense	2,417	1,306
Net interest and dividend income	8,437	7,994
Provision for loan losses	294	326
Net interest and dividend income after provision for loan losses	8,143	7,668
Non-interest income
Trust and wealth advisory	906	894
Service charges and fees	920	868
Gains on sales of mortgage loans, net	7	18
Mortgage servicing, net	76	83
Gains (losses) on CRA mutual fund	11	(13)
Losses on available-for-sale securities, net	(9)	(2)
Other	116	126
Total non-interest income	2,027	1,974
Non-interest expense
Salaries	2,993	2,846
Employee benefits	1,185	1,159
Premises and equipment	972	1,024
Data processing	509	486
Professional fees	535	619
OREO gains, losses and writedowns	52	52
Collections and other real estate owned	130	82
FDIC insurance	163	130
Marketing and community support	156	242
Amortization of core deposit intangibles	104	120
Other	412	422
Total non-interest expense	7,211	7,182
Income before income taxes	2,959	2,460
Income tax provision	525	445
Net income	2,434	2,015
Net income allocated to common stock	$ 2,408	$ 1,995
Basic earnings per common share	$ 0.87	$ 0.72
Weighted average common shares outstanding, to calculate basic earnings per share	2,777	2,759
Diluted earnings per common share	$ 0.86	$ 0.72
Weighted average common shares outstanding, to calculate diluted earnings per share	2,789	2,780
Common dividends per share	$ 0.28	$ 0.28

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net income	$ 2,434	$ 2,015
Other comprehensive income
Net unrealized gains (losses) on securities available-for-sale	1,130	(1,019)
Reclassification of net realized losses in net income	9	2
Unrealized gains (losses) on securities available-for-sale	1,139	(1,017)
Income tax (expense) benefit	(239)	210
Unrealized gains (losses) on securities available-for-sale, net of tax	900	(807)
Comprehensive income	$ 3,334	$ 1,208

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
Balance - Beginning, amount at Dec. 31, 2017	$ 279	$ 42,998	$ 54,664	$ (606)	$ 179	$ 97,514
Balance - Beginning, shares at Dec. 31, 2017	2,785,216
Net income			2,015			2,015
Adoption of new accounting principle			(16)		16
Other comprehensive loss/income, net of tax					(807)	(807)
Common stock dividends declared			(780)			(780)
Stock options exercised, amount		42				$ 42
Stock options exercised, shares	1,350					1,350
Stock based compensation - restricted stock awards				113		$ 113
Balance - Ending, amount at Mar. 31, 2018	$ 279	43,040	55,883	(493)	(612)	98,097
Balance - Ending, shares at Mar. 31, 2018	2,786,566
Balance - Beginning, amount at Dec. 31, 2018	$ 281	43,770	60,339	(711)	(220)	$ 103,459
Balance - Beginning, shares at Dec. 31, 2018	2,806,781					2,806,781
Net income			2,434			$ 2,434
Other comprehensive loss/income, net of tax					900	900
Common stock dividends declared			(784)			$ (784)
Stock options exercised, shares
Forfeiture of restricted stock, amount		(5)		5
Forfeiture of restricted stock, shares	(100)
Stock based compensation - restricted stock awards				100		100
Balance - Ending, amount at Mar. 31, 2019	$ 281	$ 43,765	$ 61,989	$ (606)	$ 680	$ 106,109
Balance - Ending, shares at Mar. 31, 2019	2,806,681					2,806,681

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income	$ 2,434	$ 2,015
(Accretion), amortization and depreciation:
Securities	12	19
Bank premises and equipment	410	371
Core deposit intangible	104	120
Modification fees on Federal Home Loan Bank of Boston advances	58	58
Subordinated debt issuance costs	6	6
Mortgage servicing rights	11	11
Fair value adjustment on loans	(64)	(285)
Fair value adjustment on deposits	(2)	(11)
(Gains) and losses, including write-downs
(Gain) loss on CRA mutual fund	(11)	13
Loss on securities available-for-sale, net	9	2
Gain on sales of loans, excluding capitalized servicing rights	(5)	(10)
Write-downs of other real estate owned	52	52
Provision for loan losses	294	326
Proceeds from loans sold	368	679
Loans originated for sale	(363)
Decrease (increase) in deferred loan origination fees and costs, net	88	(92)
Mortgage servicing rights originated	(4)	(6)
Increase in interest receivable	(263)	(39)
Deferred tax expense (benefit)	271	(18)
Increase in prepaid expenses	(143)	(170)
Increase in cash surrender value of life insurance policies	(79)	(81)
Decrease in income tax receivable	137	625
Decrease in other assets	649	70
Decrease in accrued expenses	(1,628)	(821)
Increase in interest payable	341	208
Decrease in other liabilities	(142)	(55)
Stock based compensation - restricted stock awards	100	113
Net cash provided by operating activities	2,640	3,100
Investing Activities
Redemption (purchase) of Federal Home Loan Bank of Boston stock	1,124	(333)
Purchases of securities available-for-sale	(9,391)	(7,999)
Proceeds from sales of securities	965
Reinvestment of CRA mutual fund	(5)	(4)
Proceeds from calls of securities available-for-sale		500
Proceeds from maturities/principal payments of securities available-for-sale	3,107	4,767
Loan originations and principle collections, net	(2,235)	(28,630)
Recoveries of loans previously charged off	7	14
Proceeds from sales of OREO	1,017
Purchase of life insurance (BOLI)	(750)
Capital expenditures	(47)	(794)
Net cash utilized provided by investing activities	(6,208)	(32,479)
Financing Activities
Increase in deposit transaction accounts, net	4,551	10,029
Increase in time deposits, net	10,681	6,324
(Decrease) increase in securities sold under agreements to repurchase, net	(1,153)	2,294
Federal Home Loan Bank of Boston advances, net change in advances with maturity dates less than three months	(9,500)	35,000
Principal payments on Federal Home Loan Bank of Boston long term advances	(10,000)	(27,000)
Principal payments on note payable	(8)	(8)
Principal payments on finance lease obligations	(35)	(29)
Stock options exercised		42
Common stock dividends paid	(784)	(780)
Net cash (utilized) provided by financing activities	(6,248)	25,872
Net decrease in cash and cash equivalents	(9,816)	(3,507)
Cash and cash equivalents, beginning of period	58,445	48,486
Cash and cash equivalents, end of period	48,629	44,979
Cash paid (received) during year
Interest	2,014	1,045
Income taxes	81	(162)
Non-cash investing and financing activities
Finance lease obligation		1,373
Adoption of new accounting principle - Other assets	1,552
Adoption of new accounting principle - Other liabilities	(1,552)
Adoption of new accounting principle - Recognition and measurement of financial assets and liabilities		$ 16

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
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, changes in 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, other-than-temporary impairment of securities and impairment of goodwill and intangibles. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2018 Annual Report on Form 10-K for the year ended December 31, 2018. 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. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees are 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 are 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. In July 2018, the FASB issued ASU 2018-10 which provided technical corrections to the new lease standard. In August 2018, the FASB issued ASU 2018-11 Leases – Targeted Improvements, to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, entities may elect not to recast the comparative periods presented when transitioning to the new lease standard. ASU 2018-11 has the same effective date as ASU 2016-02 (January 1, 2019 for the Company). Salisbury adopted ASU 2018-11 and elected the transition option. In March 2019, the FASB issued ASU 2019-01, the transition guidance related to certain interim disclosures provided in the year of adoption. To coincide with the adoption of AU 2016-02, Salisbury elected to early adopt ASU 2019-01 on January 1, 2019. Salisbury's consolidated assets and liabilities increased by approximately $1.6 million due to the recording of operating leases as a result of adopting ASU 2016-02 effective January 1, 2019. See also note 4 for further information. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Salisbury will adopt the standard in the first quarter of 2020. Salisbury will apply the standard's provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury has been working with a third-party vendor and is in the process of finalizing the methodologies that will be utilized. Salisbury anticipates that adoption of ASU 2016-13 will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses and the Bank continues to evaluate the extent of potential impact. 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. Salisbury adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not have a material impact 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. The FASB is researching whether similar amendments should be considered for other entities, including public business entities. 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 previous generally accepted accounting principles, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. On January 1, 2019, the Bank adopted the new standard, which did not have a material impact on Salisbury's Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-03, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-03 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. As ASU 2018-13 only revises disclosure requirements, it will not have a material impact on the Bank's Consolidated Financial Statements.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Available-for-sale U.S. Government Agency notes $ 7,391 $ 124 $ 2 $ 7,513 Municipal bonds 9,251 240 — 9,491 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 56,009 503 153 56,359 Collateralized mortgage obligations: U.S. Government agencies 20,493 186 74 20,605 Corporate bonds 4,250 37 — 4,287 Total securities available-for-sale $ 97,394 $ 1,090 $ 229 $ 98,255 CRA mutual fund $ 852 $ — $ — $ 852 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,372 $ — $ — $ 3,372 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2018 Available-for-sale U.S. Government Agency notes $ 7,590 $ 83 $ 3 $ 7,670 Municipal bonds 5,334 45 — 5,379 Mortgage-backed securities: U.S. Government agencies and U.S. Government sponsored enterprises 57,837 170 561 57,446 Collateralized mortgage obligations: U.S. Government agencies 17,835 85 173 17,747 Corporate bonds 3,500 76 — 3,576 Total securities available-for-sale $ 92,096 $ 459 $ 737 $ 91,818 CRA mutual fund $ 836 $ — $ — $ 836 Non-marketable securities Federal Home Loan Bank of Boston stock $ 4,496 $ — $ — $ 4,496 Salisbury sold $1.0 million in securities available-for-sale during the three month period ended March 31, 2019 realizing a pre-tax loss of $9 thousand and related tax benefit of $2 thousand. Salisbury did not sell any available-for-sale securities during the three month period ended March 31, 2018. The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: Less than 12 Months 12 Months or Longer Total March 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 448 $ 2 $ 448 $ 2 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 1,060 13 22,957 140 24,017 153 Collateralized mortgage obligations: U.S. Government Agencies — — 8,159 74 8,159 74 Total temporarily impaired securities $ 1,060 $ 13 $ 31,564 $ 216 $ 32,624 $ 229 Less than 12 Months 12 Months or Longer Total December 31, 2018 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ 34 $ — $ 532 $ 3 $ 566 $ 3 Mortgage-backed securities: U.S. Government agencies and U.S. Government –sponsored enterprises 13,063 175 26,777 386 39,840 561 Collateralized mortgage obligations: U.S. Government Agencies — — 8,281 173 8,281 173 Total temporarily impaired securities $ 13,097 $ 175 $ 35,590 $ 562 $ 48,687 $ 737 The amortized cost, fair value and tax equivalent yield of securities, by maturity, are as follows: March 31, 2019 (in thousands) Maturity Amortized cost Fair value Yield(1) U.S. Government Agency notes After 1 year but within 5 years $ 505 $ 503 3.63 % After 5 year but within 10 years 6,886 7,010 3.48 Total 7,391 7,513 3.49 Municipal bonds Within 1 year 257 257 2.44 After 10 years 8,994 9,234 4.06 Total 9,251 9,491 4.02 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 76,502 76,964 2.92 Corporate bonds After 5 years but within 10 years 4,250 4,287 5.43 Securities available-for-sale $ 97,394 $ 98,255 3.04 % (1) Salisbury evaluates securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security's amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at March 31, 2019. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Four securities had unrealized losses at March 31, 2019, which approximated 0.44% of their amortized cost. 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. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2019. U.S. Government agency and U.S. Government-sponsored mortgage-backed securities and collateralized mortgage obligations: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Twenty-eight securities had unrealized losses at March 31, 2019, which approximated 0.70% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2019. The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank's FHLBB stock as of March 31, 2019. Deterioration of the FHLBB's capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
LOANS	NOTE 3 - LOANS The composition of loans receivable is as follows: (In thousands) March 31, 2019 December 31, 2018 Residential 1-4 family $ 334,357 $ 345,862 Residential 5+ multifamily 37,427 36,510 Construction of residential 1-4 family 11,272 12,041 Home equity credit 35,022 34,433 Residential real estate 418,078 428,846 Commercial 289,267 283,599 Construction of commercial 11,359 8,976 Commercial real estate 300,626 292,575 Farm land 4,155 4,185 Vacant land 8,164 8,322 Real estate secured 731,023 733,928 Commercial and industrial 167,503 162,905 Municipal 15,702 14,344 Consumer 4,377 4,512 Loans receivable, gross 918,605 915,689 Deferred loan origination fees and costs, net 1,333 1,421 Allowance for loan losses (8,750 ) (7,831 ) Loans receivable, net $ 911,188 $ 909,279 Concentrations of Credit Risk Salisbury's loans consist primarily of residential and commercial real estate loans located principally in Litchfield County, Connecticut; Dutchess, Orange and Ulster Counties, New York; and Berkshire County, Massachusetts, which constitute Salisbury's service area. Salisbury offers a broad range of loan and credit facilities to borrowers in its service area, including residential mortgage loans, commercial real estate loans, construction loans, working capital loans, equipment loans, and a variety of consumer loans, including home equity lines of credit, installment loans and collateral loans. All residential and commercial mortgage loans are collateralized by first or second mortgages on real estate. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in Salisbury's market area. Credit Quality Salisbury uses credit risk ratings as part of its determination of the allowance for loan losses. Credit risk ratings categorize loans by common financial and structural characteristics that measure the credit strength of a borrower. The rating model has eight risk rating grades, with each grade corresponding to a progressively greater risk of default. Grades 1 through 4 are pass ratings and 5 through 8 are criticized as defined by the regulatory agencies. Risk ratings are assigned to differentiate risk within the portfolio and are reviewed on an ongoing basis and revised, if needed, to reflect changes in the borrowers' current financial position and outlook, risk profiles and the related collateral and structural positions. Loans rated as "special mention" possess credit deficiencies or potential weaknesses deserving management's close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. Loans rated as "substandard" are loans where the Bank's position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. Loans rated "doubtful" have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. Loans classified as "loss" are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank's loan portfolio is examined periodically by its regulatory agencies, the FDIC and the CTDOB. The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2019 Residential 1-4 family $ 325,934 $ 4,235 $ 4,188 $ — $ — $ 334,357 Residential 5+ multifamily 35,941 492 994 — — 37,427 Construction of residential 1-4 family 11,272 — — — — 11,272 Home equity lines of credit 34,351 264 407 — — 35,022 Residential real estate 407,498 4,991 5,589 — — 418,078 Commercial 274,021 5,485 9,761 — — 289,267 Construction of commercial 11,010 — 349 — — 11,359 Commercial real estate 285,031 5,485 10,110 — — 300,626 Farm land 2,400 — 1,755 — — 4,155 Vacant land 8,097 67 — — — 8,164 Real estate secured 703,026 10,543 17,454 — — 731,023 Commercial and industrial 163,607 2,346 1,550 — — 167,503 Municipal 15,702 — — — — 15,702 Consumer 4,370 6 1 — — 4,377 Loans receivable, gross $ 886,705 $ 12,895 $ 19,005 $ — $ — $ 918,605 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2018 Residential 1-4 family $ 337,520 $ 4,281 $ 4,061 $ — $ — $ 345,862 Residential 5+ multifamily 34,726 784 1,000 — — 36,510 Construction of residential 1-4 family 12,041 — — — — 12,041 Home equity lines of credit 33,728 265 440 — — 34,433 Residential real estate 418,015 5,330 5,501 — — 428,846 Commercial 270,461 4,530 8,608 — — 283,599 Construction of commercial 8,482 — 494 — — 8,976 Commercial real estate 278,943 4,530 9,102 — — 292,575 Farm land 3,969 — 216 — — 4,185 Vacant land 8,253 69 — — — 8,322 Real estate secured 709,180 9,929 14,819 — — 733,928 Commercial and industrial 159,127 2,672 1,106 — — 162,905 Municipal 14,344 — — — — 14,344 Consumer 4,502 10 — — — 4,512 Loans receivable, gross $ 887,153 $ 12,611 $ 15,925 $ — $ — $ 915,689 The composition of loans receivable by delinquency status is as follows: Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2019 Residential 1-4 family $ 331,427 $ 1,120 $ 1,283 $ — $ 527 $ 2,930 $ — $ 2,040 Residential 5+ multifamily 36,566 — — — 861 861 — 994 Construction of residential 1-4 family 11,272 — — — — — — — Home equity lines of credit 34,511 — 152 — 359 511 — 407 Residential real estate 413,776 1,120 1,435 — 1,747 4,302 — 3,441 Commercial 287,436 245 — 192 1,394 1,831 — 2,107 Construction of commercial 11,359 — — — — — — 249 Commercial real estate 298,795 245 — 192 1,394 1,831 — 2,356 Farm land 3,536 212 407 — — 619 — 212 Vacant land 8,122 42 — — — 42 — — Real estate secured 724,229 1,619 1,842 192 3,141 6,794 — 6,009 Commercial and industrial 167,099 3 21 20 360 404 20 360 Municipal 15,702 — — — — — — — Consumer 4,362 6 8 1 — 15 1 — Loans receivable, gross $ 911,392 $ 1,628 $ 1,871 $ 213 $ 3,501 $ 7,213 $ 21 $ 6,369 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2018 Residential 1-4 family $ 342,881 $ 1,100 $ 521 $ — $ 1,360 $ 2,981 $ — $ 2,092 Residential 5+ multifamily 35,648 — — 633 229 862 — 1,000 Construction of residential 1-4 family 12,041 — — — — — — — Home equity lines of credit 33,806 235 33 — 359 627 — 411 Residential real estate 424,376 1,335 554 633 1,948 4,470 — 3,503 Commercial 281,053 264 240 833 1,209 2,546 654 1,388 Construction of commercial 8,835 — — 141 — 141 141 252 Commercial real estate 289,888 264 240 974 1,209 2,687 795 1,640 Farm land 4,185 — — — — — — 216 Vacant land 8,280 42 — — — 42 — — Real estate secured 726,729 1,641 794 1,607 3,157 7,199 795 5,359 Commercial and industrial 162,507 — 38 — 360 398 — 360 Municipal 14,344 — — — — — — — Consumer 4,504 2 6 — — 8 — — Loans receivable, gross $ 908,084 $ 1,643 $ 838 $ 1,607 $ 3,517 $ 7,605 $ 795 $ 5,719 There were no troubled debt restructurings in the first quarter of 2019 or 2018. Allowance for Loan Losses In first quarter 2019, Salisbury transferred the remaining unearned credit-related discount on loans acquired in its 2014 acquisition of Riverside Bank to the allowance for loan loss reserves. As a result of this transfer, which is reflected in the table below as the “acquisition discount transfer, gross loans receivable and the allowance for loan losses increased by $663 thousand. The balance of net loans receivable did not change as a result of this transfer. Three Months ended March 31, 2019 Three Months ended March 31, 2018 (in thousands) Beginning balance Acquisition Discount Transfer Provision Charge- offs Recoveries Ending Balance Beginning balance Provision Charge- offs Recoveries Ending balance Residential 1-4 family $ 2,149 $ 10 $ (180 ) $ — $ 1 $ 1,980 $ 1,862 $ 129 $ ( 10 ) $ 1 $ 1,982 Residential 5+ multifamily 413 — 53 — — 466 155 61 — — 216 Construction of residential 1-4 family 83 — (6 ) — — 77 75 (1 ) — — 74 Home equity lines of credit 219 1 (11 ) — — 209 236 (3 ) — — 233 Residential real estate 2,864 11 (144 ) — 1 2,732 2,328 186 (10 ) 1 2,505 Commercial 3,048 488 276 (9 ) — 3,803 2,547 119 — — 2,666 Construction of commercial 122 — 21 — — 143 80 13 — — 93 Commercial real estate 3,170 488 297 (9 ) — 3,946 2,627 132 — — 2,759 Farm land 33 — 14 — — 47 32 1 — — 33 Vacant land 100 — (11 ) — — 89 131 — — — 131 Real estate secured 6,167 499 156 (9 ) 1 6,814 5,118 319 (10 ) 1 5,428 Commercial and industrial 1,158 164 (61 ) (30 ) 2 1,233 984 (42 ) (9 ) 5 938 Municipal 12 — 2 — — 14 30 — — — 30 Consumer 56 — (3 ) (6 ) 4 51 81 12 (40 ) 8 61 Unallocated 438 — 200 — — 638 563 38 — — 601 Totals $ 7,831 $ 663 $ 294 $ (45 ) $ 7 $ 8,750 $ 6,776 $ 327 $ (59 ) $ 14 $ 7,058 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2019 Residential 1-4 family $ 329,513 $ 1,867 $ 4,844 $ 113 $ 334,357 $ 1,980 Residential 5+ multifamily 36,048 466 1,379 — 37,427 466 Construction of residential 1-4 family 11,272 77 — — 11,272 77 Home equity lines of credit 34,570 207 452 2 35,022 209 Residential real estate 411,403 2,617 6,675 115 418,078 2,732 Commercial 284,272 3,617 4,995 186 289,267 3,803 Construction of commercial 11,010 129 349 14 11,359 143 Commercial real estate 295,282 3,746 5,344 200 300,626 3,946 Farm land 3,943 47 212 — 4,155 47 Vacant land 7,977 87 187 2 8,164 89 Real estate secured 718,605 6,497 12,418 317 731,023 6,814 Commercial and industrial 167,005 1,233 498 — 167,503 1,233 Municipal 15,702 14 — — 15,702 14 Consumer 4,377 51 — — 4,377 51 Unallocated allowance — 638 — — — 638 Totals $ 905,689 $ 8,433 $ 12,916 $ 317 $ 918,605 $ 8,750 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2018 Residential 1-4 family $ 340,946 $ 2,042 $ 4,916 $ 107 $ 345,862 $ 2,149 Residential 5+ multifamily 34,835 413 1,675 — 36,510 413 Construction of residential 1-4 family 12,041 83 — — 12,041 83 Home equity lines of credit 33,975 213 458 6 34,433 219 Residential real estate 421,797 2,751 7,049 113 428,846 2,864 Commercial 279,389 2,907 4,210 141 283,599 3,048 Construction of commercial 8,622 106 354 16 8,976 122 Commercial real estate 288,011 3,013 4,564 157 292,575 3,170 Farm land 3,969 33 216 — 4,185 33 Vacant land 8,132 98 190 2 8,322 100 Real estate secured 721,909 5,895 12,019 272 733,928 6,167 Commercial and industrial 162,404 1,158 501 — 162,905 1,158 Municipal 14,344 12 — — 14,344 12 Consumer 4,512 56 — — 4,512 56 Unallocated allowance — 438 — — — 438 Totals $ 903,169 $ 7,559 $ 12,520 $ 272 $ 915,689 $ 7,831 The credit quality segments of loans receivable and the allowance for loan losses are as follows: March 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,685 $ 7,373 $ — $ — $ 895,685 $ 7,373 Potential problem loans 1 10,004 422 — — 10,004 422 Impaired loans — — 12,916 317 12,916 317 Unallocated allowance — 638 — — — 638 Totals $ 905,689 $ 8,433 $ 12,916 $ 317 $ 918,605 $ 8,750 December 31, 2018 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,527 $ 6,989 $ — $ — $ 895,527 $ 6,989 Potential problem loans 1 7,642 132 — — 7,642 132 Impaired loans — — 12,520 272 12,520 272 Unallocated allowance — 438 — — — 438 Totals $ 903,169 $ 7,559 $ 12,520 $ 272 $ 915,689 $ 7,831 1 A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the fair value of expected cash flows or collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows as of and for the three months ended: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2019 Residential $ 2,769 $ 2,823 $ 2,780 $ 113 $ 27 $ 3,454 $ 4,758 $ 3,620 $ 16 Home equity lines of credit 45 45 46 2 1 407 495 409 — Residential real estate 2,814 2,868 2,826 115 28 3,861 5,253 4,029 16 Commercial 2,568 2,568 1,993 186 24 2,427 3,912 2,748 14 Construction of commercial 249 249 251 14 — 100 108 101 2 Farm land — — — — — 212 430 215 — Vacant land 42 42 42 2 1 145 165 146 3 Real estate secured 5,673 5,727 5,112 317 53 6,745 9,868 7,239 35 Commercial and industrial — — — — — 498 620 500 2 Consumer — — — — — — 1 — — Totals $ 5,673 $ 5,727 $ 5,112 $ 317 $ 53 $ 7,243 $ 10,489 $ 7,739 $ 37 Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2018 Residential $ 4,724 $ 5,008 $ 3,884 $ 162 $ 30 $ 2,270 $ 3,020 $ 3,015 $ 28 Home equity lines of credit 47 47 47 1 1 63 116 64 — Residential real estate 4,771 5,055 3,931 163 31 2,333 3,136 3,079 28 Commercial 1,847 2,080 2,258 100 40 2,355 3,447 3,138 47 Construction of commercial — — 27 — — 364 386 338 2 Farm land — — — — — 241 447 244 — Vacant land 44 44 44 3 1 153 176 154 3 Real estate secured 6,662 7,179 6,260 266 72 5,446 7,592 6,953 80 Commercial and industrial 106 115 108 7 — 407 498 408 1 Consumer — — — — — — 5 — — Totals $ 6,768 $ 7,294 $ 6,368 $ 273 $ 72 $ 5,853 $ 8,095 $ 7,361 $ 81 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 2018: 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, 2018 Residential $ 2,792 $ 2,842 $ 3,429 $ 107 $ 101 $ 3,799 $ 5,140 $ 3,726 $ 102 Home equity lines of credit 47 47 158 6 2 411 498 114 2 Residential real estate 2,839 2,889 3,587 113 103 4,210 5,638 3,840 104 Commercial 1,808 1,808 2,001 141 88 2,403 3,989 2,992 75 Construction of commercial 252 252 67 16 — 102 110 295 7 Farm land — — — — — 216 432 232 — Vacant land 42 42 43 2 3 147 168 151 10 Real estate secured 4,941 4,991 5,698 272 194 7,078 10,337 7,510 196 Commercial and industrial — — 40 — — 501 596 469 5 Totals $ 4,941 $ 4,991 $ 5,738 $ 272 $ 194 $ 7,579 $ 10,933 $ 7,979 $ 201

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
LEASES	NOTE 4 - LEASES On January 1, 2019, the Bank adopted ASU 2016-02, “Leases (Topic 842) and all subsequent ASUs that modified Topic 842. The Bank leases facilities and equipment with various expiration dates through 2036. The facilities leases have varying renewal options, generally require fixed annual rent, and provide that real estate taxes, insurance, and maintenance are to be paid by Salisbury. The leases for three Bank facilities are accounted for as finance leases (previously referred to as capital leases). The remaining leases are classified as operating leases, and therefore, were previously not recognized on the Bank's Consolidated Balance Sheets. Effective January 1, 2019, the Bank recorded approximately $1.6 million of right-of-use assets and corresponding lease liability related to these operating leases. The Bank does not have any leases with related parties and equipment leases are not material to Salisbury's consolidated financial statements. The following table provides the assets and liabilities as well as the costs of operating and financial leases which are included in the Bank's consolidated income statement for the three months ended March 31, 2019. Three months ended (in thousands, except lease term and discount rate) Classification March 31, 2019 Assets Operating Other assets $ 1,505 Finance Bank premises and equipment 1 2,801 Total Leased Assets $ 4,306 Liabilities Operating Other liabilities $ 1,505 Finance Finance lease 3,046 Total lease liabilities $ 4,551 1 Lease cost Classification March 31, 2019 Operating leases Premises and equipment $ 61 Finance leases: Amortization of leased assets Premises and equipment 47 Interest on finance leases Interest expense 46 Total lease cost $ 154 Weighted Average Remaining Lease Term Operating leases 8.7 years Financing leases 13.2 years Weighted Average Discount Rate 1 Operating leases 3.7 % Financing leases 7.5 % 1 The following is a schedule by years of the present value of the net minimum lease payments as of March 31, 2019. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2019 $ 185 $ 254 2020 246 336 2021 228 342 2022 199 345 2023 148 347 Thereafter 782 2,956 Total future minimum lease payments 1,788 4,580 Less amount representing interest (283 ) (1,534 ) Total present value of net future minimum lease payments $ 1,505 $ 3,046

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 5 - MORTGAGE SERVICING RIGHTS (in thousands) March 31, 2019 December 31, 2018 Residential mortgage loans serviced for others $ 109,848 $ 111,378 Fair value of mortgage servicing rights 903 951 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 228 $ 233 Originated 4 6 Amortization (1) (11 ) (11 ) Balance, end of period $ 221 $ 228 (1)

PLEDGED ASSETS

PLEDGED ASSETS	3 Months Ended
	Mar. 31, 2019
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 6 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. (in thousands) March 31, 2019 December 31, 2018 Securities available-for-sale (at fair value) $ 78,963 $ 80,991 Loans receivable 330,202 328,674 Total pledged assets $ 409,165 $ 409,665 At March 31, 2019, securities were pledged as follows: $91.5 million to secure public deposits, $11.2 million to secure repurchase agreements and $0.05 million to secure FHLBB advances. Additionally, loans receivable were pledged to secure FHLBB advances and credit facilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7 - 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 ended March 31, (in thousands, except per share data) 2019 2018 Net income $ 2,434 $ 2,015 Less: Undistributed earnings allocated to participating securities (26 ) (20 ) Net income allocated to common stock $ 2,408 $ 1,995 Weighted-average common shares issued 2,806 2,786 Less: Unvested restricted stock awards (29 ) (27 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,777 2,759 Add: Dilutive effect of stock options 12 21 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,789 2,780 Earnings per common share (basic) $ 0.87 $ 0.72 Earnings per common share (diluted) $ 0.86 $ 0.72

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 8 - SHAREHOLDERS' EQUITY Capital Requirements Salisbury and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional and discretionary actions by the regulators that, if undertaken, could have a direct material effect on Salisbury's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Salisbury and the Bank must meet specific guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Salisbury and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The requirements of the final rules approved by the Federal Reserve Bank (“FRB”) and FDIC, 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 increased each subsequent January 1, by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. As of March 31, 2019, 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. A bank can be considered “well-capitalized” even if it does not maintain the capital conservation buffer as long as it meets the “well-capitalized” levels set forth below (and provided it is not subject to any written order, agreement, capital directive, etc.). A bank with a capital conservation buffer of at least 2.5% means that it generally will not be subject to certain limitations regarding capital distributions, such as dividend payments, discretionary payments on tier 1 instruments, share buybacks, and certain discretionary bonus payments to executive officers. Salisbury's risk-weighted assets at March 31, 2019 and December 31, 2018 were $865.2 million and $860.6 million, respectively. 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: Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to risk-weighted assets) Salisbury $ 109,676 12.68 % $ 69,213 8.00 % $ 90,842 10.50 % n/a — Bank 106,847 12.35 69,213 8.0 90,842 10.5 $ 86,516 10.00 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,833 10.50 51,910 6.0 73,539 8.5 n/a — Bank 98,004 11.33 51,910 6.0 73,539 8.5 69,213 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 90,833 10.50 38,932 4.5 60,561 7.0 n/a — Bank 98,004 11.33 38,932 4.5 60,561 7.0 56,235 6.5 Tier 1 Capital (to average assets) Salisbury 90,833 8.32 43,688 4.0 43,688 4.0 n/a — Bank 98,004 8.97 43,688 4.0 43,688 4.0 54,610 5.0 Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total Capital (to risk-weighted assets) Salisbury $ 107,659 12.51 % $ 68,848 8.00 % $ 90,362 10.50 % n/a n/a Bank 104,013 12.09 68,848 8.0 90,362 10.5 $ 86,059 10.00 % Tier 1 Capital (to risk-weighted assets) Salisbury 89,738 10.43 51,636 6.0 73,150 8.5 n/a n/a Bank 96,092 11.17 51,636 6.0 73,150 8.5 68,848 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 89,738 10.43 38,727 4.5 60,242 7.0 n/a n/a Bank 96,092 11.17 38,727 4.5 60,242 7.0 55,939 6.5 Tier 1 Capital (to average assets) Salisbury 89,738 8.25 43,527 4.0 43,527 4.0 n/a n/a Bank 96,092 8.83 43,527 4.0 43,527 4.0 54,409 5.0 Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure.

BENEFITS

BENEFITS	3 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
BENEFITS	NOTE 9 - BENEFITS Salisbury's 401(k) Plan expense was $239 thousand and $282 thousand, respectively, for the three month periods ended March 31, 2019 and 2018. The decrease in the expense reflected a reduction in the Bank's safe-harbor and employer match percentages. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $21 thousand and $26 thousand for the three month periods ended March 31, 2019 and 2018, respectively. ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan, which generally vests in full upon six years of qualified service. Salisbury's ESOP expense was $49 thousand and $60 thousand, respectively, for the three month periods ended March 31, 2019 and 2018. Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. Salisbury's expense for this plan was $29 thousand and $28 thousand, respectively, for the three month periods ended March 31, 2019 and 2018. Grants of Restricted Stock, Performance Based Restricted Stock Units and Options Restricted stock Expense in first quarter 2019 and 2018 related to stock based compensation totaled $100 thousand and $113 thousand, respectively. Unrecognized compensation cost relating to the awards as of March 31, 2019 and 2018 totaled $606 thousand and $493 thousand, respectively. Forfeitures in the first quarter 2019 and 2018 totaled 100 and 0 shares, respectively. Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank's performance. This RSU plan replaced the Bank's Phantom Stock Appreciation Units plan. The performance goal is based on the increase in the Bank's tangible book value by $3.50 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($5.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 29, 2022. A total of 6,800 performance-based restricted stock units were granted, including 3,500 units to three Named Executive Officers. Mr. Cantele received 1,500 units, Mr. Davies received 1,000 units and Mr. Albero received 1,000 units. No compensation expense was recorded with respect to these RSUs in the three month period ending March 31, 2019. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2019, 0 stock options were exercised. In the first quarter 2018, 1,350 stock options were exercised at $31.11 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 10 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss) are as follows: (in thousands) March 31, 2019 December 31, 2018 Unrealized gains (losses) on securities available-for-sale, net of tax $ 680 $ (220 ) Accumulated other comprehensive income (loss), net $ 680 $ ( 220 )

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 11 - 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. 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 may also include 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. Salisbury adopted ASC 2016-01, “Financial Instruments – overall (subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities”, which requires the exit price notion to be used when measuring the fair value of financial instruments for disclosure. Salisbury estimated the fair value of its loan portfolio based on a loan-level assessment that incorporated probabilities of default by loan type and internal risk rating, product-level loss given defaults and prepayment rates as well as discount rates. 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 three month period ended March 31, 2019. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 7,513 $ — $ 7,513 Municipal bonds — 9,491 — 9,491 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 56,359 — 56,359 Collateralized mortgage obligations: U.S. Government agencies — 20,605 — 20,605 Corporate bonds — 4,287 — 4,287 Securities available-for-sale $ — $ 98,255 $ — $ 98,255 CRA mutual funds 852 — — 852 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,599 $ 4,599 Other real estate owned $ — $ — $ 741 $ 741 December 31, 2018 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 7,670 $ — $ 7,670 Municipal bonds — 5,379 — 5,379 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 57,446 — 57,446 Collateralized mortgage obligations: U.S. Government agencies — 17,747 — 17,747 Corporate bonds — 3,576 — 3,576 Securities available-for-sale $ — $ 91,818 $ — $ 91,818 CRA mutual funds 836 — — 836 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,238 $ 4,238 Other real estate owned $ — $ — $ 1,810 $ 1,810 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2019 Financial Assets Cash and cash equivalents $ 48,629 $ 48,629 $ 48,629 $ — $ — Securities available-for-sale, net 98,255 98,255 — 98,255 — CRA mutual fund 852 852 852 — — Federal Home Loan Bank of Boston stock 3,372 3,372 — — 3,372 Loans held-for-sale — — — — — Loans receivable, net 911,188 902,084 — — 902,084 Accrued interest receivable 3,411 3,411 — — 3,411 Cash surrender value of life insurance policies 15,267 15,267 15,267 — — Financial Liabilities Demand (non-interest-bearing) $ 219,168 $ 219,168 $ — $ — $ 219,168 Demand (interest-bearing) 157,123 157,123 — — 157,123 Money market 203,309 203,309 — — 203,309 Savings and other 190,011 190,011 — — 190,011 Certificates of deposit 172,358 172,895 — — 172,895 Deposits 941,969 942,506 — — 942,506 Repurchase agreements 2,951 2,951 — — 2,951 FHLBB advances 47,712 47,925 — — 47,925 Subordinated debt 9,841 10,115 — — 10,115 Note payable 272 279 — — 279 Finance lease obligation 3,046 3,282 — — 3,282 Accrued interest payable 578 578 — — 578 December 31, 2018 Financial Assets Cash and cash equivalents $ 58,445 $ 58,445 $ 58,445 $ — $ — Securities available-for-sale 91,818 91,818 — 91,818 — CRA mutual fund 836 836 836 — — Federal Home Loan Bank of Boston stock 4,496 4,496 — — 4,496 Loans receivable, net 909,279 886,222 — — 886,222 Accrued interest receivable 3,148 3,148 — — 3,148 Cash surrender value of life insurance policies 14,438 14,438 14,438 — — Financial Liabilities Demand (non-interest-bearing) $ 228,448 $ 228,448 $ — $ — $ 228,448 Demand (interest-bearing) 153,586 153,586 — — 153,586 Money market 204,219 204,219 — — 204,219 Savings and other 178,807 178,807 — — 178,807 Certificates of deposit 161,679 162,013 — — 162,013 Deposits 926,739 927,073 — — 927,073 Repurchase agreements 4,104 4,104 — — 4,104 FHLBB advances 67,154 67,231 — — 67,231 Subordinated debt 9,835 10,006 — — 10,006 Note payable 280 288 — — 288 Capital lease liability 3,081 3,339 — — 3,339 Accrued interest payable 237 237 — — 237 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions or are included in accrued interest and other liabilities.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 - SUBSEQUENT EVENTS On April 26, 2019 the Board of Directors declared a dividend of $0.28 per common share payable on May 31, 2019 to shareholders of record as of May 17, 2019. In April 2019, the Bank executed a purchase and sale agreement to purchase its New Paltz, New York branch premises for $1.6 million. This transaction is expected to close in September, 2019.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)”. Under the new guidance, lessees are 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 are 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. In July 2018, the FASB issued ASU 2018-10 which provided technical corrections to the new lease standard. In August 2018, the FASB issued ASU 2018-11 Leases – Targeted Improvements, to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, entities may elect not to recast the comparative periods presented when transitioning to the new lease standard. ASU 2018-11 has the same effective date as ASU 2016-02 (January 1, 2019 for the Company). Salisbury adopted ASU 2018-11 and elected the transition option. In March 2019, the FASB issued ASU 2019-01, the transition guidance related to certain interim disclosures provided in the year of adoption. To coincide with the adoption of AU 2016-02, Salisbury elected to early adopt ASU 2019-01 on January 1, 2019. Salisbury's consolidated assets and liabilities increased by approximately $1.6 million due to the recording of operating leases as a result of adopting ASU 2016-02 effective January 1, 2019. See also note 4 for further information. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2019. Salisbury will adopt the standard in the first quarter of 2020. Salisbury will apply the standard's provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury has been working with a third-party vendor and is in the process of finalizing the methodologies that will be utilized. Salisbury anticipates that adoption of ASU 2016-13 will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses and the Bank continues to evaluate the extent of potential impact. 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. Salisbury adopted ASU 2016-15 on January 1, 2018. ASU 2016-15 did not have a material impact 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. The FASB is researching whether similar amendments should be considered for other entities, including public business entities. 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 previous generally accepted accounting principles, entities generally amortized the premium as an adjustment of yield over the contractual life of the instrument. On January 1, 2019, the Bank adopted the new standard, which did not have a material impact on Salisbury's Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-03, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-03 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. As ASU 2018-13 only revises disclosure requirements, it will not have a material impact on the Bank's Consolidated Financial Statements.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Available-for-sale U.S. Government Agency notes $ 7,391 $ 124 $ 2 $ 7,513 Municipal bonds 9,251 240 — 9,491 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 56,009 503 153 56,359 Collateralized mortgage obligations: U.S. Government agencies 20,493 186 74 20,605 Corporate bonds 4,250 37 — 4,287 Total securities available-for-sale $ 97,394 $ 1,090 $ 229 $ 98,255 CRA mutual fund $ 852 $ — $ — $ 852 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,372 $ — $ — $ 3,372 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2018 Available-for-sale U.S. Government Agency notes $ 7,590 $ 83 $ 3 $ 7,670 Municipal bonds 5,334 45 — 5,379 Mortgage-backed securities: U.S. Government agencies and U.S. Government sponsored enterprises 57,837 170 561 57,446 Collateralized mortgage obligations: U.S. Government agencies 17,835 85 173 17,747 Corporate bonds 3,500 76 — 3,576 Total securities available-for-sale $ 92,096 $ 459 $ 737 $ 91,818 CRA mutual fund $ 836 $ — $ — $ 836 Non-marketable securities Federal Home Loan Bank of Boston stock $ 4,496 $ — $ — $ 4,496
Aggreggate fair value and gross unrealized loss of securities	Less than 12 Months 12 Months or Longer Total March 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 448 $ 2 $ 448 $ 2 Mortgage- backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 1,060 13 22,957 140 24,017 153 Collateralized mortgage obligations: U.S. Government Agencies — — 8,159 74 8,159 74 Total temporarily impaired securities $ 1,060 $ 13 $ 31,564 $ 216 $ 32,624 $ 229 Less than 12 Months 12 Months or Longer Total December 31, 2018 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ 34 $ — $ 532 $ 3 $ 566 $ 3 Mortgage-backed securities: U.S. Government agencies and U.S. Government –sponsored enterprises 13,063 175 26,777 386 39,840 561 Collateralized mortgage obligations: U.S. Government Agencies — — 8,281 173 8,281 173 Total temporarily impaired securities $ 13,097 $ 175 $ 35,590 $ 562 $ 48,687 $ 737
Amortized cost, fair value and tax equivalent yield of securities	March 31, 2019 (in thousands) Maturity Amortized cost Fair value Yield(1) U.S. Government Agency notes After 1 year but within 5 years $ 505 $ 503 3.63 % After 5 year but within 10 years 6,886 7,010 3.48 Total 7,391 7,513 3.49 Municipal bonds Within 1 year 257 257 2.44 After 10 years 8,994 9,234 4.06 Total 9,251 9,491 4.02 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 76,502 76,964 2.92 Corporate bonds After 5 years but within 10 years 4,250 4,287 5.43 Securities available-for-sale $ 97,394 $ 98,255 3.04 % (1)

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Composition of loans receivable	(In thousands) March 31, 2019 December 31, 2018 Residential 1-4 family $ 334,357 $ 345,862 Residential 5+ multifamily 37,427 36,510 Construction of residential 1-4 family 11,272 12,041 Home equity credit 35,022 34,433 Residential real estate 418,078 428,846 Commercial 289,267 283,599 Construction of commercial 11,359 8,976 Commercial real estate 300,626 292,575 Farm land 4,155 4,185 Vacant land 8,164 8,322 Real estate secured 731,023 733,928 Commercial and industrial 167,503 162,905 Municipal 15,702 14,344 Consumer 4,377 4,512 Loans receivable, gross 918,605 915,689 Deferred loan origination fees and costs, net 1,333 1,421 Allowance for loan losses (8,750 ) (7,831 ) Loans receivable, net $ 911,188 $ 909,279
Composition of loans receivable by risk rating grade	(in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2019 Residential 1-4 family $ 325,934 $ 4,235 $ 4,188 $ — $ — $ 334,357 Residential 5+ multifamily 35,941 492 994 — — 37,427 Construction of residential 1-4 family 11,272 — — — — 11,272 Home equity lines of credit 34,351 264 407 — — 35,022 Residential real estate 407,498 4,991 5,589 — — 418,078 Commercial 274,021 5,485 9,761 — — 289,267 Construction of commercial 11,010 — 349 — — 11,359 Commercial real estate 285,031 5,485 10,110 — — 300,626 Farm land 2,400 — 1,755 — — 4,155 Vacant land 8,097 67 — — — 8,164 Real estate secured 703,026 10,543 17,454 — — 731,023 Commercial and industrial 163,607 2,346 1,550 — — 167,503 Municipal 15,702 — — — — 15,702 Consumer 4,370 6 1 — — 4,377 Loans receivable, gross $ 886,705 $ 12,895 $ 19,005 $ — $ — $ 918,605 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2018 Residential 1-4 family $ 337,520 $ 4,281 $ 4,061 $ — $ — $ 345,862 Residential 5+ multifamily 34,726 784 1,000 — — 36,510 Construction of residential 1-4 family 12,041 — — — — 12,041 Home equity lines of credit 33,728 265 440 — — 34,433 Residential real estate 418,015 5,330 5,501 — — 428,846 Commercial 270,461 4,530 8,608 — — 283,599 Construction of commercial 8,482 — 494 — — 8,976 Commercial real estate 278,943 4,530 9,102 — — 292,575 Farm land 3,969 — 216 — — 4,185 Vacant land 8,253 69 — — — 8,322 Real estate secured 709,180 9,929 14,819 — — 733,928 Commercial and industrial 159,127 2,672 1,106 — — 162,905 Municipal 14,344 — — — — 14,344 Consumer 4,502 10 — — — 4,512 Loans receivable, gross $ 887,153 $ 12,611 $ 15,925 $ — $ — $ 915,689
Composition of loans receivable by delinquency status	Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2019 Residential 1-4 family $ 331,427 $ 1,120 $ 1,283 $ — $ 527 $ 2,930 $ — $ 2,040 Residential 5+ multifamily 36,566 — — — 861 861 — 994 Construction of residential 1-4 family 11,272 — — — — — — — Home equity lines of credit 34,511 — 152 — 359 511 — 407 Residential real estate 413,776 1,120 1,435 — 1,747 4,302 — 3,441 Commercial 287,436 245 — 192 1,394 1,831 — 2,107 Construction of commercial 11,359 — — — — — — 249 Commercial real estate 298,795 245 — 192 1,394 1,831 — 2,356 Farm land 3,536 212 407 — — 619 — 212 Vacant land 8,122 42 — — — 42 — — Real estate secured 724,229 1,619 1,842 192 3,141 6,794 — 6,009 Commercial and industrial 167,099 3 21 20 360 404 20 360 Municipal 15,702 — — — — — — — Consumer 4,362 6 8 1 — 15 1 — Loans receivable, gross $ 911,392 $ 1,628 $ 1,871 $ 213 $ 3,501 $ 7,213 $ 21 $ 6,369 Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual December 31, 2018 Residential 1-4 family $ 342,881 $ 1,100 $ 521 $ — $ 1,360 $ 2,981 $ — $ 2,092 Residential 5+ multifamily 35,648 — — 633 229 862 — 1,000 Construction of residential 1-4 family 12,041 — — — — — — — Home equity lines of credit 33,806 235 33 — 359 627 — 411 Residential real estate 424,376 1,335 554 633 1,948 4,470 — 3,503 Commercial 281,053 264 240 833 1,209 2,546 654 1,388 Construction of commercial 8,835 — — 141 — 141 141 252 Commercial real estate 289,888 264 240 974 1,209 2,687 795 1,640 Farm land 4,185 — — — — — — 216 Vacant land 8,280 42 — — — 42 — — Real estate secured 726,729 1,641 794 1,607 3,157 7,199 795 5,359 Commercial and industrial 162,507 — 38 — 360 398 — 360 Municipal 14,344 — — — — — — — Consumer 4,504 2 6 — — 8 — — Loans receivable, gross $ 908,084 $ 1,643 $ 838 $ 1,607 $ 3,517 $ 7,605 $ 795 $ 5,719
Changes in allowance for loan losses	Three Months ended March 31, 2019 Three Months ended March 31, 2018 (in thousands) Beginning balance Acquisition Discount Transfer Provision Charge- offs Recoveries Ending Balance Beginning balance Provision Charge- offs Recoveries Ending balance Residential 1-4 family $ 2,149 $ 10 $ (180 ) $ — $ 1 $ 1,980 $ 1,862 $ 129 $ (10 ) $ 1 $ 1,982 Residential 5+ multifamily 413 — 53 — — 466 155 61 — — 216 Construction of residential 1-4 family 83 — (6 ) — — 77 75 (1 ) — — 74 Home equity lines of credit 219 1 (11 ) — — 209 236 (3 ) — — 233 Residential real estate 2,864 11 (144 ) — 1 2,732 2,328 186 (10 ) 1 2,505 Commercial 3,048 488 276 (9 ) — 3,803 2,547 119 — — 2,666 Construction of commercial 122 — 21 — — 143 80 13 — — 93 Commercial real estate 3,170 488 297 (9 ) — 3,946 2,627 132 — — 2,759 Farm land 33 — 14 — — 47 32 1 — — 33 Vacant land 100 — (11 ) — — 89 131 — — — 131 Real estate secured 6,167 499 156 (9 ) 1 6,814 5,118 319 (10 ) 1 5,428 Commercial and industrial 1,158 164 (61 ) (30 ) 2 1,233 984 (42 ) (9 ) 5 938 Municipal 12 — 2 — — 14 30 — — — 30 Consumer 56 — (3 ) (6 ) 4 51 81 12 (40 ) 8 61 Unallocated 438 — 200 — — 638 563 38 — — 601 Totals $ 7,831 $ 663 $ 294 $ (45 ) $ 7 $ 8,750 $ 6,776 $ 327 $ (59 ) $ 14 $ 7,058
Composition of loans receivable and allowance for loan losses	(in thousands) Collectively evaluated 1 Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2019 Residential 1-4 family $ 329,513 $ 1,867 $ 4,844 $ 113 $ 334,357 $ 1,980 Residential 5+ multifamily 36,048 466 1,379 — 37,427 466 Construction of residential 1-4 family 11,272 77 — — 11,272 77 Home equity lines of credit 34,570 207 452 2 35,022 209 Residential real estate 411,403 2,617 6,675 115 418,078 2,732 Commercial 284,272 3,617 4,995 186 289,267 3,803 Construction of commercial 11,010 129 349 14 11,359 143 Commercial real estate 295,282 3,746 5,344 200 300,626 3,946 Farm land 3,943 47 212 — 4,155 47 Vacant land 7,977 87 187 2 8,164 89 Real estate secured 718,605 6,497 12,418 317 731,023 6,814 Commercial and industrial 167,005 1,233 498 — 167,503 1,233 Municipal 15,702 14 — — 15,702 14 Consumer 4,377 51 — — 4,377 51 Unallocated allowance — 638 — — — 638 Totals $ 905,689 $ 8,433 $ 12,916 $ 317 $ 918,605 $ 8,750 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2018 Residential 1-4 family $ 340,946 $ 2,042 $ 4,916 $ 107 $ 345,862 $ 2,149 Residential 5+ multifamily 34,835 413 1,675 — 36,510 413 Construction of residential 1-4 family 12,041 83 — — 12,041 83 Home equity lines of credit 33,975 213 458 6 34,433 219 Residential real estate 421,797 2,751 7,049 113 428,846 2,864 Commercial 279,389 2,907 4,210 141 283,599 3,048 Construction of commercial 8,622 106 354 16 8,976 122 Commercial real estate 288,011 3,013 4,564 157 292,575 3,170 Farm land 3,969 33 216 — 4,185 33 Vacant land 8,132 98 190 2 8,322 100 Real estate secured 721,909 5,895 12,019 272 733,928 6,167 Commercial and industrial 162,404 1,158 501 — 162,905 1,158 Municipal 14,344 12 — — 14,344 12 Consumer 4,512 56 — — 4,512 56 Unallocated allowance — 438 — — — 438 Totals $ 903,169 $ 7,559 $ 12,520 $ 272 $ 915,689 $ 7,831
Credit quality segments of loans receivable and allowance for loan losses	March 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,685 $ 7,373 $ — $ — $ 895,685 $ 7,373 Potential problem loans 1 10,004 422 — — 10,004 422 Impaired loans — — 12,916 317 12,916 317 Unallocated allowance — 638 — — — 638 Totals $ 905,689 $ 8,433 $ 12,916 $ 317 $ 918,605 $ 8,750 December 31, 2018 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,527 $ 6,989 $ — $ — $ 895,527 $ 6,989 Potential problem loans 1 7,642 132 — — 7,642 132 Impaired loans — — 12,520 272 12,520 272 Unallocated allowance — 438 — — — 438 Totals $ 903,169 $ 7,559 $ 12,520 $ 272 $ 915,689 $ 7,831 1
Certain data with respect to loans individually evaluated for impairment	Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2019 Residential $ 2,769 $ 2,823 $ 2,780 $ 113 $ 27 $ 3,454 $ 4,758 $ 3,620 $ 16 Home equity lines of credit 45 45 46 2 1 407 495 409 — Residential real estate 2,814 2,868 2,826 115 28 3,861 5,253 4,029 16 Commercial 2,568 2,568 1,993 186 24 2,427 3,912 2,748 14 Construction of commercial 249 249 251 14 — 100 108 101 2 Farm land — — — — — 212 430 215 — Vacant land 42 42 42 2 1 145 165 146 3 Real estate secured 5,673 5,727 5,112 317 53 6,745 9,868 7,239 35 Commercial and industrial — — — — — 498 620 500 2 Consumer — — — — — — 1 — — Totals $ 5,673 $ 5,727 $ 5,112 $ 317 $ 53 $ 7,243 $ 10,489 $ 7,739 $ 37 Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2018 Residential $ 4,724 $ 5,008 $ 3,884 $ 162 $ 30 $ 2,270 $ 3,020 $ 3,015 $ 28 Home equity lines of credit 47 47 47 1 1 63 116 64 — Residential real estate 4,771 5,055 3,931 163 31 2,333 3,136 3,079 28 Commercial 1,847 2,080 2,258 100 40 2,355 3,447 3,138 47 Construction of commercial — — 27 — — 364 386 338 2 Farm land — — — — — 241 447 244 — Vacant land 44 44 44 3 1 153 176 154 3 Real estate secured 6,662 7,179 6,260 266 72 5,446 7,592 6,953 80 Commercial and industrial 106 115 108 7 — 407 498 408 1 Consumer — — — — — — 5 — — Totals $ 6,768 $ 7,294 $ 6,368 $ 273 $ 72 $ 5,853 $ 8,095 $ 7,361 $ 81 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, 2018 Residential $ 2,792 $ 2,842 $ 3,429 $ 107 $ 101 $ 3,799 $ 5,140 $ 3,726 $ 102 Home equity lines of credit 47 47 158 6 2 411 498 114 2 Residential real estate 2,839 2,889 3,587 113 103 4,210 5,638 3,840 104 Commercial 1,808 1,808 2,001 141 88 2,403 3,989 2,992 75 Construction of commercial 252 252 67 16 — 102 110 295 7 Farm land — — — — — 216 432 232 — Vacant land 42 42 43 2 3 147 168 151 10 Real estate secured 4,941 4,991 5,698 272 194 7,078 10,337 7,510 196 Commercial and industrial — — 40 — — 501 596 469 5 Totals $ 4,941 $ 4,991 $ 5,738 $ 272 $ 194 $ 7,579 $ 10,933 $ 7,979 $ 201

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Assets and liabilities as well as the costs of operating and financial leases	Three months ended (in thousands, except lease term and discount rate) Classification March 31, 2019 Assets Operating Other assets $ 1,505 Finance Bank premises and equipment 1 2,801 Total Leased Assets $ 4,306 Liabilities Operating Other liabilities $ 1,505 Finance Finance lease 3,046 Total lease liabilities $ 4,551 1 Lease cost Classification March 31, 2019 Operating leases Premises and equipment $ 61 Finance leases: Amortization of leased assets Premises and equipment 47 Interest on finance leases Interest expense 46 Total lease cost $ 154 Weighted Average Remaining Lease Term Operating leases 8.7 years Financing leases 13.2 years Weighted Average Discount Rate 1 Operating leases 3.7 % Financing leases 7.5 % 1
Present value of the net minimum lease payments	Future minimum lease payments (in thousands) Operating Leases Finance Leases 2019 $ 185 $ 254 2020 246 336 2021 228 342 2022 199 345 2023 148 347 Thereafter 782 2,956 Total future minimum lease payments 1,788 4,580 Less amount representing interest (283 ) (1,534 ) Total present value of net future minimum lease payments $ 1,505 $ 3,046

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	(in thousands) March 31, 2019 December 31, 2018 Residential mortgage loans serviced for others $ 109,848 $ 111,378 Fair value of mortgage servicing rights 903 951
Changes in mortgage servicing rights	Three months ended March 31, (in thousands) 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 228 $ 233 Originated 4 6 Amortization (1) (11 ) (11 ) Balance, end of period $ 221 $ 228 (1)

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Guarantees [Abstract]
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	(in thousands) March 31, 2019 December 31, 2018 Securities available-for-sale (at fair value) $ 78,963 $ 80,991 Loans receivable 330,202 328,674 Total pledged assets $ 409,165 $ 409,665

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Computation of earnings per share	Three months ended March 31, (in thousands, except per share data) 2019 2018 Net income $ 2,434 $ 2,015 Less: Undistributed earnings allocated to participating securities (26 ) (20 ) Net income allocated to common stock $ 2,408 $ 1,995 Weighted-average common shares issued 2,806 2,786 Less: Unvested restricted stock awards (29 ) (27 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,777 2,759 Add: Dilutive effect of stock options 12 21 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,789 2,780 Earnings per common share (basic) $ 0.87 $ 0.72 Earnings per common share (diluted) $ 0.86 $ 0.72

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Actual regulatory capital position and minimum capital requirements	Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total Capital (to risk-weighted assets) Salisbury $ 109,676 12.68 % $ 69,213 8.00 % $ 90,842 10.50 % n/a — Bank 106,847 12.35 69,213 8.0 90,842 10.5 $ 86,516 10.00 % Tier 1 Capital (to risk-weighted assets) Salisbury 90,833 10.50 51,910 6.0 73,539 8.5 n/a — Bank 98,004 11.33 51,910 6.0 73,539 8.5 69,213 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 90,833 10.50 38,932 4.5 60,561 7.0 n/a — Bank 98,004 11.33 38,932 4.5 60,561 7.0 56,235 6.5 Tier 1 Capital (to average assets) Salisbury 90,833 8.32 43,688 4.0 43,688 4.0 n/a — Bank 98,004 8.97 43,688 4.0 43,688 4.0 54,610 5.0 Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total Capital (to risk-weighted assets) Salisbury $ 107,659 12.51 % $ 68,848 8.00 % $ 90,362 10.50 % n/a n/a Bank 104,013 12.09 68,848 8.0 90,362 10.5 $ 86,059 10.00 % Tier 1 Capital (to risk-weighted assets) Salisbury 89,738 10.43 51,636 6.0 73,150 8.5 n/a n/a Bank 96,092 11.17 51,636 6.0 73,150 8.5 68,848 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) Salisbury 89,738 10.43 38,727 4.5 60,242 7.0 n/a n/a Bank 96,092 11.17 38,727 4.5 60,242 7.0 55,939 6.5 Tier 1 Capital (to average assets) Salisbury 89,738 8.25 43,527 4.0 43,527 4.0 n/a n/a Bank 96,092 8.83 43,527 4.0 43,527 4.0 54,409 5.0

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Components of accumulated other comprehensive income (loss)	(in thousands) March 31, 2019 December 31, 2018 Unrealized gains (losses) on securities available-for-sale, net of tax $ 680 $ (220 ) Accumulated other comprehensive income (loss), net $ 680 $ ( 220 )

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Assets measured at fair value	Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 7,513 $ — $ 7,513 Municipal bonds — 9,491 — 9,491 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 56,359 — 56,359 Collateralized mortgage obligations: U.S. Government agencies — 20,605 — 20,605 Corporate bonds — 4,287 — 4,287 Securities available-for-sale $ — $ 98,255 $ — $ 98,255 CRA mutual funds 852 — — 852 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,599 $ 4,599 Other real estate owned $ — $ — $ 741 $ 741 December 31, 2018 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 7,670 $ — $ 7,670 Municipal bonds — 5,379 — 5,379 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 57,446 — 57,446 Collateralized mortgage obligations: U.S. Government agencies — 17,747 — 17,747 Corporate bonds — 3,576 — 3,576 Securities available-for-sale $ — $ 91,818 $ — $ 91,818 CRA mutual funds 836 — — 836 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 4,238 $ 4,238 Other real estate owned $ — $ — $ 1,810 $ 1,810
Carrying value and estimated fair values of financial instruments	(in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2019 Financial Assets Cash and cash equivalents $ 48,629 $ 48,629 $ 48,629 $ — $ — Securities available-for-sale, net 98,255 98,255 — 98,255 — CRA mutual fund 852 852 852 — — Federal Home Loan Bank of Boston stock 3,372 3,372 — — 3,372 Loans held-for-sale — — — — — Loans receivable, net 911,188 902,084 — — 902,084 Accrued interest receivable 3,411 3,411 — — 3,411 Cash surrender value of life insurance policies 15,267 15,267 15,267 — — Financial Liabilities Demand (non-interest-bearing) $ 219,168 $ 219,168 $ — $ — $ 219,168 Demand (interest-bearing) 157,123 157,123 — — 157,123 Money market 203,309 203,309 — — 203,309 Savings and other 190,011 190,011 — — 190,011 Certificates of deposit 172,358 172,895 — — 172,895 Deposits 941,969 942,506 — — 942,506 Repurchase agreements 2,951 2,951 — — 2,951 FHLBB advances 47,712 47,925 — — 47,925 Subordinated debt 9,841 10,115 — — 10,115 Note payable 272 279 — — 279 Finance lease obligation 3,046 3,282 — — 3,282 Accrued interest payable 578 578 — — 578 December 31, 2018 Financial Assets Cash and cash equivalents $ 58,445 $ 58,445 $ 58,445 $ — $ — Securities available-for-sale 91,818 91,818 — 91,818 — CRA mutual fund 836 836 836 — — Federal Home Loan Bank of Boston stock 4,496 4,496 — — 4,496 Loans receivable, net 909,279 886,222 — — 886,222 Accrued interest receivable 3,148 3,148 — — 3,148 Cash surrender value of life insurance policies 14,438 14,438 14,438 — — Financial Liabilities Demand (non-interest-bearing) $ 228,448 $ 228,448 $ — $ — $ 228,448 Demand (interest-bearing) 153,586 153,586 — — 153,586 Money market 204,219 204,219 — — 204,219 Savings and other 178,807 178,807 — — 178,807 Certificates of deposit 161,679 162,013 — — 162,013 Deposits 926,739 927,073 — — 927,073 Repurchase agreements 4,104 4,104 — — 4,104 FHLBB advances 67,154 67,231 — — 67,231 Subordinated debt 9,835 10,006 — — 10,006 Note payable 280 288 — — 288 Capital lease liability 3,081 3,339 — — 3,339 Accrued interest payable 237 237 — — 237

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Amortized cost basis (1)
Available-for-sale
U.S. Government Agency notes	$ 7,391	$ 7,590
Municipal bonds	9,251	5,334
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	56,009	57,837
Collateralized mortgage obligations, U.S. Government Agencies	20,493	17,835
Corporate bonds	4,250	3,500
Total securities available-for-sale	97,394	92,096
CRA mutual funds	852	836
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,372	4,496
Gross unrealized gains
Available-for-sale
U.S. Government Agency notes	124	83
Municipal bonds	240	45
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	503	170
Collateralized mortgage obligations, U.S. Government Agencies	186	85
Corporate bonds	37	76
Total securities available-for-sale	1,090	459
CRA mutual funds
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
U.S. Government Agency notes	2	3
Municipal bonds
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	153	561
Collateralized mortgage obligations, U.S. Government Agencies	74	173
Corporate bonds
Total securities available-for-sale	229	737
CRA mutual funds
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Government Agency notes	7,513	7,670
Municipal bonds	9,491	5,379
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	56,359	57,446
Collateralized mortgage obligations, U.S. Government Agencies	20,605	17,747
Corporate bonds	4,287	3,576
Total securities available-for-sale	98,255	91,818
CRA mutual funds	852	836
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,372	$ 4,496

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Less Than 12 Months, Fair value
Available-for-sale
U.S. Government Agency notes		$ 34
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	1,060	13,063
Collateralized mortgage obligations: U.S. Government agencies
Total temporarily impaired securities	1,060	13,097
Less Than 12 Months, Unrealized losses
Available-for-sale
U.S. Government Agency notes
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	13	175
Collateralized mortgage obligations: U.S. Government agencies
Total temporarily impaired securities	13	175
12 Months or Longer, Fair value
Available-for-sale
U.S. Government Agency notes	448	532
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	22,957	26,777
Collateralized mortgage obligations: U.S. Government agencies	8,159	8,281
Total temporarily impaired securities	31,564	35,590
12 Months or Longer, Unrealized losses
Available-for-sale
U.S. Government Agency notes	2	3
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	140	386
Collateralized mortgage obligations: U.S. Government agencies	74	173
Total temporarily impaired securities	216	562
Total, Fair value
Available-for-sale
U.S. Government Agency notes	448	566
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	24,017	39,840
Collateralized mortgage obligations: U.S. Government agencies	8,159	8,281
Total temporarily impaired securities	32,624	48,687
Total, Unrealized losses
Available-for-sale
U.S. Government Agency notes	2	3
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	153	561
Collateralized mortgage obligations: U.S. Government agencies	74	173
Total temporarily impaired securities	$ 229	$ 737

SECURITIES - Amortized cost, fa

SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
U.S. Government agency notes - After 1 year but within 5 years
Amortized cost	$ 505
Fair value	$ 503
Yield	3.63%
U.S. Government agency notes - After 5 years but within 10 years
Amortized cost	$ 6,886
Fair value	$ 7,010
Yield	3.48%
U.S. Government agency notes - Total
Amortized cost	$ 7,391
Fair value	$ 7,513
Yield	3.49%
Municipal bonds - Within 1 year
Amortized cost	$ 257
Fair value	$ 257
Yield	2.44%
Municipal bonds - After 10 years
Amortized cost	$ 8,994
Fair value	$ 9,234
Yield	4.06%
Municipal bonds - Total
Amortized cost	$ 9,251
Fair value	$ 9,491
Yield	4.02%
Mortgage-backed securities and Collateralized mortgage obligations - U.S. Government agencies
Amortized cost	$ 76,502
Fair value	$ 76,964
Yield	2.92%
Corporate bonds - After 5 years but within 10 years
Amortized cost	$ 4,250
Fair value	$ 4,287
Yield	5.43%
Fair value
Amortized cost	$ 97,394
Fair value	$ 98,255
Yield	3.04%

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Sales of securities available-for-sale	$ 965
Pre-tax loss on sale of securities available-for-sale	9	$ 2
Related tax benefit on sale of securities available-for-sale	$ 2

LOANS - Composition of loans re

LOANS - Composition of loans receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Loans receivable, net	$ 911,188	$ 909,279
Total
Residential 1-4 family	334,357	345,862
Residential 5+ multifamily	37,427	36,510
Construction of residential 1-4 family	11,272	12,041
Home equity credit	35,022	34,433
Residential real estate	418,078	428,846
Commercial	289,267	283,599
Construction of commercial	11,359	8,976
Commercial real estate	300,626	292,575
Farm land	4,155	4,185
Vacant land	8,164	8,322
Real estate secured	731,023	733,928
Commercial and industrial	167,503	162,905
Municipal	15,702	14,344
Consumer	4,377	4,512
Loans receivable, gross	918,605	915,689
Deferred loan origination fees and costs, net	1,333	1,421
Allowance for loan losses	(8,750)	(7,831)
Loans receivable, net	$ 911,188	$ 909,279

LOANS - Composition of loans _2

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Pass
Residential 1-4 family	$ 325,934	$ 337,520
Residential 5+ multifamily	35,941	34,726
Construction of residential 1-4 family	11,272	12,041
Home equity lines of credit	34,351	33,728
Residential real estate	407,498	418,015
Commercial	274,021	270,461
Construction of commercial	11,010	8,482
Commercial real estate	285,031	278,943
Farm land	2,400	3,969
Vacant land	8,097	8,253
Real estate secured	703,026	709,180
Commercial and industrial	163,607	159,127
Municipal	15,702	14,344
Consumer	4,370	4,502
Loans receivable, gross	886,705	887,153
Special mention
Residential 1-4 family	4,235	4,281
Residential 5+ multifamily	492	784
Construction of residential 1-4 family
Home equity lines of credit	264	265
Residential real estate	4,991	5,330
Commercial	5,485	4,530
Construction of commercial
Commercial real estate	5,485	4,530
Farm land
Vacant land	67	69
Real estate secured	10,543	9,929
Commercial and industrial	2,346	2,672
Municipal
Consumer	6	10
Loans receivable, gross	12,895	12,611
Substandard
Residential 1-4 family	4,188	4,061
Residential 5+ multifamily	994	1,000
Construction of residential 1-4 family
Home equity lines of credit	407	440
Residential real estate	5,589	5,501
Commercial	9,761	8,608
Construction of commercial	349	494
Commercial real estate	10,110	9,102
Farm land	1,755	216
Vacant land
Real estate secured	17,454	14,819
Commercial and industrial	1,550	1,106
Municipal
Consumer	1
Loans receivable, gross	19,005	15,925
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
Municipal
Consumer
Loans receivable, gross
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
Total
Residential 1-4 family	334,357	345,862
Residential 5+ multifamily	37,427	36,510
Construction of residential 1-4 family	11,272	12,041
Home equity lines of credit	35,022	34,433
Residential real estate	418,078	428,846
Commercial	289,267	283,599
Construction of commercial	11,359	8,976
Commercial real estate	300,626	292,575
Farm land	4,155	4,185
Vacant land	8,164	8,322
Real estate secured	731,023	733,928
Commercial and industrial	167,503	162,905
Municipal	15,702	14,344
Consumer	4,377	4,512
Loans receivable, gross	$ 918,605	$ 915,689

LOANS - Composition of loans _3

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current
Residential 1-4 family	$ 331,427	$ 342,881
Residential 5+ multifamily	36,566	35,648
Construction of residential 1-4 family	11,272	12,041
Home equity lines of credit	34,511	33,806
Residential real estate	413,776	424,376
Commercial	287,436	281,053
Construction of commercial	11,359	8,835
Commercial real estate	298,795	289,888
Farm land	3,536	4,185
Vacant land	8,122	8,280
Real estate secured	724,229	726,729
Commercial and industrial	167,099	162,507
Municipal	15,702	14,344
Consumer	4,362	4,504
Loans receivable, gross	911,392	908,084
Past due 30-59 days
Residential 1-4 family	1,120	1,100
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit		235
Residential real estate	1,120	1,335
Commercial	245	264
Construction of commercial
Commercial real estate	245	264
Farm land	212
Vacant land	42	42
Real estate secured	1,619	1,641
Commercial and industrial	3
Municipal
Consumer	6	2
Loans receivable, gross	1,628	1,643
Past due 60-89 days
Residential 1-4 family	1,283	521
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	152	33
Residential real estate	1,435	554
Commercial		240
Construction of commercial
Commercial real estate		240
Farm land	407
Vacant land
Real estate secured	1,842	794
Commercial and industrial	21	38
Municipal
Consumer	8	6
Loans receivable, gross	1,871	838
Past due 90-179 days
Residential 1-4 family
Residential 5+ multifamily		633
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate		633
Commercial	192	833
Construction of commercial		141
Commercial real estate	192	974
Farm land
Vacant land
Real estate secured	192	1,607
Commercial and industrial	20
Municipal
Consumer	1
Loans receivable, gross	213	1,607
Past due 180 days and over
Residential 1-4 family	527	1,360
Residential 5+ multifamily	861	229
Construction of residential 1-4 family
Home equity lines of credit	359	359
Residential real estate	1,747	1,948
Commercial	1,394	1,209
Construction of commercial
Commercial real estate	1,394	1,209
Farm land
Vacant land
Real estate secured	3,141	3,157
Commercial and industrial	360	360
Municipal
Consumer
Loans receivable, gross	3,501	3,517
Past due 30 days and over
Residential 1-4 family	2,930	2,981
Residential 5+ multifamily	861	862
Construction of residential 1-4 family
Home equity lines of credit	511	627
Residential real estate	4,302	4,470
Commercial	1,831	2,546
Construction of commercial		141
Commercial real estate	1,831	2,687
Farm land	619
Vacant land	42	42
Real estate secured	6,794	7,199
Commercial and industrial	404	398
Municipal
Consumer	15	8
Loans receivable, gross	7,213	7,605
Past due 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		654
Construction of commercial		141
Commercial real estate		795
Farm land
Vacant land
Real estate secured		795
Commercial and industrial	20
Municipal
Consumer	1
Loans receivable, gross	21	795
Non-accrual
Residential 1-4 family	2,040	2,092
Residential 5+ multifamily	994	1,000
Construction of residential 1-4 family
Home equity lines of credit	407	411
Residential real estate	3,441	3,503
Commercial	2,107	1,388
Construction of commercial	249	252
Commercial real estate	2,356	1,640
Farm land	212	216
Vacant land
Real estate secured	6,009	5,359
Commercial and industrial	360	360
Municipal
Consumer
Loans receivable, gross	$ 6,369	$ 5,719

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Residential 1-4 family
Beginning balance	$ 2,149	$ 1,862
Acquisition Discount Transfer	10
Provision	(180)	129
Charge-offs		(10)
Recoveries	1	1
Ending balance	1,980	1,982
Residential 5+ multifamily
Beginning balance	413	155
Acquisition Discount Transfer
Provision	53	61
Charge-offs
Recoveries
Ending balance	466	216
Construction of residential 1-4 family
Beginning balance	83	75
Acquisition Discount Transfer
Provision	(6)	(1)
Charge-offs
Recoveries
Ending balance	77	74
Home equity lines of credit
Beginning balance	219	236
Acquisition Discount Transfer	1
Provision	(11)	(3)
Charge-offs
Recoveries
Ending balance	209	233
Residential real estate
Beginning balance	2,864	2,328
Acquisition Discount Transfer	11
Provision	(144)	186
Charge-offs		(10)
Recoveries	1	1
Ending balance	2,732	2,505
Commercial
Beginning balance	3,048	2,547
Acquisition Discount Transfer	488
Provision	276	119
Charge-offs	(9)
Recoveries
Ending balance	3,803	2,666
Construction of commercial
Beginning balance	122	80
Acquisition Discount Transfer
Provision	21	13
Charge-offs
Recoveries
Ending balance	143	93
Commercial real estate
Beginning balance	3,170	2,627
Acquisition Discount Transfer	488
Provision	297	132
Charge-offs	(9)
Recoveries
Ending balance	3,946	2,759
Farm land
Beginning balance	33	32
Acquisition Discount Transfer
Provision	14	1
Charge-offs
Recoveries
Ending balance	47	33
Vacant land
Beginning balance	100	131
Acquisition Discount Transfer
Provision	(11)
Charge-offs
Recoveries
Ending balance	89	131
Real estate secured
Beginning balance	6,167	5,118
Acquisition Discount Transfer	499
Provision	156	319
Charge-offs	(9)	(10)
Recoveries	1	1
Ending balance	6,814	5,428
Commercial and industrial
Beginning balance	1,158	984
Acquisition Discount Transfer	164
Provision	(61)	(42)
Charge-offs	(30)	(9)
Recoveries	2	5
Ending balance	1,233	938
Municipal
Beginning balance	12	30
Acquisition Discount Transfer
Provision	2
Charge-offs
Recoveries
Ending balance	14	30
Consumer
Beginning balance	56	81
Acquisition Discount Transfer
Provision	(3)	12
Charge-offs	(6)	(40)
Recoveries	4	8
Ending balance	51	61
Unallocated
Beginning balance	438	563
Acquisition Discount Transfer
Provision	200	38
Charge-offs
Recoveries
Ending balance	638	601
Totals
Beginning balance	7,831	6,776
Acquisition Discount Transfer	663
Provision	294	327
Charge-offs	(45)	(59)
Recoveries	7	14
Ending balance	$ 8,750	$ 7,058

LOANS - Composition of loans _4

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Totals	$ 911,188	$ 909,279
Collectively evaluated Loans
Residential 1-4 family	329,513	340,946
Residential 5+ multifamily	36,048	34,835
Construction of residential 1-4 family	11,272	12,041
Home equity lines credit	34,570	33,975
Residential real estate	411,403	421,797
Commercial	284,272	279,389
Construction of commercial	11,010	8,622
Commercial real estate	295,282	288,011
Farm land	3,943	3,969
Vacant land	7,977	8,132
Real estate secured	718,605	721,909
Commercial and industrial	167,005	162,404
Municipal	15,702	14,344
Consumer	4,377	4,512
Unallocated allowance
Totals	905,689	903,169
Collectively evaluated Allowance
Residential 1-4 family	1,867	2,042
Residential 5+ multifamily	466	413
Construction of residential 1-4 family	77	83
Home equity lines credit	207	213
Residential real estate	2,617	2,751
Commercial	3,617	2,907
Construction of commercial	129	106
Commercial real estate	3,746	3,013
Farm land	47	33
Vacant land	87	98
Real estate secured	6,497	5,895
Commercial and industrial	1,233	1,158
Municipal	14	12
Consumer	51	56
Unallocated allowance	638	438
Totals	8,433	7,559
Individually evaluated Loans
Residential 1-4 family	4,844	4,916
Residential 5+ multifamily	1,379	1,675
Construction of residential 1-4 family
Home equity lines credit	452	458
Residential real estate	6,675	7,049
Commercial	4,995	4,210
Construction of commercial	349	354
Commercial real estate	5,344	4,564
Farm land	212	216
Vacant land	187	190
Real estate secured	12,418	12,019
Commercial and industrial	498	501
Municipal
Consumer
Unallocated allowance
Totals	12,916	12,520
Individually evaluated Allowance
Residential 1-4 family	113	107
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit	2	6
Residential real estate	115	113
Commercial	186	141
Construction of commercial	14	16
Commercial real estate	200	157
Farm land
Vacant land	2	2
Real estate secured	317	272
Commercial and industrial
Municipal
Consumer
Unallocated allowance
Totals	317	272
Total portfolio Loans
Residential 1-4 family	334,357	345,862
Residential 5+ multifamily	37,427	36,510
Construction of residential 1-4 family	11,272	12,041
Home equity lines credit	35,022	34,433
Residential real estate	418,078	428,846
Commercial	289,267	283,599
Construction of commercial	11,359	8,976
Commercial real estate	300,626	292,575
Farm land	4,155	4,185
Vacant land	8,164	8,322
Real estate secured	731,023	733,928
Commercial and industrial	167,503	162,905
Municipal	15,702	14,344
Consumer	4,377	4,512
Unallocated allowance
Totals	918,605	915,689
Total portfolio Allowance
Residential 1-4 family	1,980	2,149
Residential 5+ multifamily	466	413
Construction of residential 1-4 family	77	83
Home equity lines credit	209	219
Residential real estate	2,732	2,864
Commercial	3,803	3,048
Construction of commercial	143	122
Commercial real estate	3,946	3,170
Farm land	47	33
Vacant land	89	100
Real estate secured	6,814	6,167
Commercial and industrial	1,233	1,158
Municipal	14	12
Consumer	51	56
Unallocated allowance	638	438
Totals	$ 8,750	$ 7,831

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Totals	$ 911,188	$ 909,279
Collectively evaluated Loans
Performing loans	895,685	895,527
Potential problem loans	10,004	7,642
Impaired loans
Unallocated allowance
Totals	905,689	903,169
Collectively evaluated Allowance
Performing loans	7,373	6,989
Potential problem loans	422	132
Impaired loans
Unallocated allowance	638	438
Totals	8,433	7,559
Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	12,916	12,520
Unallocated allowance
Totals	12,916	12,520
Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	317	272
Unallocated allowance
Totals	317	272
Total portfolio Loans
Performing loans	895,685	895,527
Potential problem loans	10,004	7,642
Impaired loans	12,916	12,520
Unallocated allowance
Totals	918,605	915,689
Total portfolio Allowance
Performing loans	7,373	6,989
Potential problem loans	422	132
Impaired loans	317	272
Unallocated allowance	638	438
Totals	$ 8,750	$ 7,831

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Totals	$ 911,188	$ 909,279
Impaired loans with specific allowance - Loan balance - Book
Residential	2,769	2,792	$ 4,724
Home equity lines of credit	45	47	47
Residential real estate	2,814	2,839	4,771
Commercial	2,568	1,808	1,847
Construction of commercial	249	252
Farm land
Vacant land	42	42	44
Real estate secured	5,673	4,941	6,662
Commercial and industrial			106
Consumer		4,941
Totals	5,673		6,768
Impaired loans with specific allowance - Loan balance - Note
Residential	2,823	2,842	5,008
Home equity lines of credit	45	47	47
Residential real estate	2,868	2,889	5,055
Commercial	2,568	1,808	2,080
Construction of commercial	249	252
Farm land
Vacant land	42	42	44
Real estate secured	5,727	4,991	7,179
Commercial and industrial			115
Consumer		4,991
Totals	5,727		7,294
Impaired loans with specific allowance - Loan balance - Average
Residential	2,780	3,429	3,884
Home equity lines of credit	46	158	47
Residential real estate	2,826	3,587	3,931
Commercial	1,993	2,001	2,258
Construction of commercial	251	67	27
Farm land
Vacant land	42	43	44
Real estate secured	5,112	5,698	6,260
Commercial and industrial		40	108
Consumer		5,738
Totals	5,112		6,368
Impaired loans with specific allowance - Specific allowance
Residential	113	107	162
Home equity lines of credit	2	6	1
Residential real estate	115	113	163
Commercial	186	141	100
Construction of commercial	14	16
Farm land
Vacant land	2	2	3
Real estate secured	317	272	266
Commercial and industrial			7
Consumer		272
Totals	317		273
Impaired loans with specific allowance - Income recognized
Residential	27	101	30
Home equity lines of credit	1	2	1
Residential real estate	28	103	31
Commercial	24	88	40
Construction of commercial
Farm land
Vacant land	1	3	1
Real estate secured	53	194	72
Commercial and industrial
Consumer		194
Totals	53		72
Impaired loans with no specific allowance - Loan balance - Book
Residential	3,454	3,799	2,270
Home equity lines of credit	407	411	63
Residential real estate	3,861	4,210	2,333
Commercial	2,427	2,403	2,355
Construction of commercial	100	102	364
Farm land	212	216	241
Vacant land	145	147	153
Real estate secured	6,745	7,078	5,446
Commercial and industrial	498	501	407
Consumer		7,579
Totals	7,243		5,853
Impaired loans with no specific allowance - Loan balance - Note
Residential	4,758	5,140	3,020
Home equity lines of credit	495	498	116
Residential real estate	5,253	5,638	3,136
Commercial	3,912	3,989	3,447
Construction of commercial	108	110	386
Farm land	430	432	447
Vacant land	165	168	176
Real estate secured	9,868	10,337	7,592
Commercial and industrial	620	596	498
Consumer	1	10,933	5
Totals	10,489		8,095
Impaired loans with no specific allowance - Loan balance - Average
Residential	3,620	3,726	3,015
Home equity lines of credit	409	114	64
Residential real estate	4,029	3,840	3,079
Commercial	2,748	2,992	3,138
Construction of commercial	101	295	338
Farm land	215	232	244
Vacant land	146	151	154
Real estate secured	7,239	7,510	6,953
Commercial and industrial	500	469	408
Consumer		7,979
Totals	7,739		7,361
Impaired loans with no specific allowance - Income recognized
Residential	16	102	28
Home equity lines of credit		2
Residential real estate	16	104	28
Commercial	14	75	47
Construction of commercial	2	7	2
Farm land
Vacant land	3	10	3
Real estate secured	35	196	80
Commercial and industrial	2	5	1
Consumer		$ 201
Totals	$ 37		$ 81

LOANS (Details Narrative)

LOANS (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Loans
Increase in acquisition discount transfer, gross loans receivable and allowance for loan losses	$ 663

LEASES - Assets and liabilities

LEASES - Assets and liabilities as well as the costs of operating and financial leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases - Assets
Operating - Other assets	$ 1,505
Finance - Bank premises and equipment	2,801
Total Leased Assets	4,306
Leases - Liabilities
Operating - Other liabilities	1,505
Finance - Finance lease	3,046
Total lease liabilities	4,551
Lease cost
Operating leases - Premises and equipment	61
Finance leases: Amortization of leased assets - Premises and equipment	47
Finance leases: Interest on finance leases - Interest expense	46	$ 35
Total lease cost	$ 154
Weighted Average Remaining Lease Term
Operating leases	8 years 8 months 12 days
Financing leases	13 years 2 months 12 days
Weighted Average Discount Rate
Operating leases	3.70%
Financing leases	7.50%

LEASES - Present value of the n

LEASES - Present value of the net minimum lease payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Operating Leases
2019	$ 185
2020	246
2021	228
2022	199
2023	148
Thereafter	782
Total future minimum lease payments	1,788
Less amount representing interest	(283)
Total present value of net future minimum lease payments	1,505
Finance Leases
2019	254
2020	336
2021	342
2022	345
2023	347
Thereafter	2,956
Total future minimum lease payments	4,580
Less amount representing interest	(1,534)
Total present value of net future minimum lease payments	$ 3,046

LEASES (Details Narrative)

LEASES (Details Narrative) $ in Thousands	Mar. 31, 2019USD ($)
Notes to Financial Statements
Right-of-use assets and corresponding lease liability related to operating leases	$ 1,600

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	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Residential mortgage loans serviced for others	$ 109,848	$ 111,378
Fair value of mortgage servicing rights	$ 903		$ 951

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - Changes in mortgage servicing rights - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Mortgage Servicing Rights
Balance, beginning of period	$ 228	$ 233
Originated	4	6
Amortization	(11)	(11)
Balance, end of period	$ 221	$ 228

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Pledged Assets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Securities available-for-sale (at fair value)	$ 78,963	$ 80,991
Loans receivable	330,202	328,674
Total pledged assets	$ 409,165	$ 409,665

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Mar. 31, 2019USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 91,500
Securities pledged to secure repurchase agreements	11,200
Securities pledged to secure FHLBB advances	$ 50

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 2,434	$ 2,015
Less: Undistributed earnings allocated to participating securities	(26)	(20)
Net income allocated to common stock	2,408	1,995
Weighted average common shares issued	2,806	2,786
Less: Unvested restricted stock awards	(29)	(27)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,777	2,759
Add: Dilutive effect of stock options	12	21
Weighted average common shares outstanding used to calculate diluted earnings per common share	$ 2,789	$ 2,780
Earnings per common share (basic)	$ 0.87	$ 0.72
Earnings per common share (diluted)	$ 0.86	$ 0.72

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Salisbury
Total Capital (to risk-weighted assets)
Actual - Amount	$ 109,676	$ 107,659
Actual - Ratio	12.68%	12.51%
Minimum Capital Required For Capital Adequacy - Amount	$ 69,213	$ 68,848
Minimum Capital Required For Capital Adequacy - Ratio	8.00%	8.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 90,842	$ 90,362
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	10.50%	10.50%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 90,833	$ 89,738
Actual - Ratio	10.50%	10.43%
Minimum Capital Required For Capital Adequacy - Amount	$ 51,910	$ 51,636
Minimum Capital Required For Capital Adequacy - Ratio	6.00%	6.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 73,539	$ 73,150
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	8.50%	8.50%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 90,833	$ 89,738
Actual - Ratio	10.50%	10.43%
Minimum Capital Required For Capital Adequacy - Amount	$ 38,932	$ 38,727
Minimum Capital Required For Capital Adequacy - Ratio	4.50%	4.50%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 60,561	$ 60,242
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	7.00%	7.00%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Tier 1 Capital (to average assets)
Actual - Amount	$ 90,833	$ 89,738
Actual - Ratio	8.32%	8.25%
Minimum Capital Required For Capital Adequacy - Amount	$ 43,688	$ 43,527
Minimum Capital Required For Capital Adequacy - Ratio	4.00%	4.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 43,688	$ 43,527
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	4.00%	4.00%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio
Bank
Total Capital (to risk-weighted assets)
Actual - Amount	$ 106,847	$ 104,013
Actual - Ratio	12.35%	12.09%
Minimum Capital Required For Capital Adequacy - Amount	$ 69,213	$ 68,848
Minimum Capital Required For Capital Adequacy - Ratio	8.00%	8.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 90,842	$ 90,362
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	10.50%	10.50%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 86,516	$ 86,059
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	10.00%	10.00%
Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 98,004	$ 96,092
Actual - Ratio	11.33%	11.17%
Minimum Capital Required For Capital Adequacy - Amount	$ 51,910	$ 51,636
Minimum Capital Required For Capital Adequacy - Ratio	6.00%	6.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 73,539	$ 73,150
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	8.50%	8.50%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 69,213	$ 68,848
Minimum 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	$ 98,004	$ 96,092
Actual - Ratio	11.33%	11.17%
Minimum Capital Required For Capital Adequacy - Amount	$ 38,932	$ 38,727
Minimum Capital Required For Capital Adequacy - Ratio	4.50%	4.50%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 60,561	$ 60,242
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	7.00%	7.00%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 56,235	$ 55,939
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	6.50%	6.50%
Tier 1 Capital (to average assets)
Actual - Amount	$ 98,004	$ 96,092
Actual - Ratio	8.97%	8.83%
Minimum Capital Required For Capital Adequacy - Amount	$ 43,688	$ 43,527
Minimum Capital Required For Capital Adequacy - Ratio	4.00%	4.00%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 43,688	$ 43,527
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Ratio	4.00%	4.00%
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Amount	$ 54,610	$ 54,409
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	5.00%	5.00%

BENEFITS (Details Narrative)

BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Retirement Benefits [Abstract]
401(k) Plan contribution expense	$ 239	$ 282
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	21	26
Employee Stock Ownership Plan (ESOP)
ESOP expense	49	60
Other Retirement Plans
Expenses for Non-Qualified Deferred Compensation Plan	$ 29	$ 28
Grants of Restricted Stock and Options
Stock options exercised by former Riverside Bank executives, shares		1,350
Stock options exercised by former Riverside Bank executives, price per share		$ 31.11
Shares of restricted stock granted pursuant to LTIP	6,800
Expense related to stock based compensation	$ 100	$ 113
Unrecognized compensation cost relating to awards	$ 606		$ 493
Forfeiture of restricted common stock, shares	(100)

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of accumulated other comprehensive income (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accumulated other comprehensive income (loss), net	$ 680	$ (220)
Statements of Comprehensive Income (Loss)
Unrealized gains (losses) on securities available-for-sale, net of tax	680	(220)
Accumulated other comprehensive income (loss), net	$ 680	$ (220)

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets at fair value
Assets at fair value on a recurring basis
U.S. Government Agency notes	$ 7,513	$ 7,670
Municipal bonds	9,491	5,379
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	56,359	57,446
Collateralized mortgage obligations: U.S. Government agencies	20,605	17,747
Corporate bonds	4,287	3,576
Securities available-for-sale	98,255	91,818
CRA mutual funds	852	836
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	4,599	4,238
Other real estate owned	741	1,810
Fair Value Measurements Using - Level 1
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds	852	836
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
U.S. Government Agency notes	7,513	7,670
Municipal bonds	9,491	5,379
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	56,359	57,446
Collateralized mortgage obligations: U.S. Government agencies	20,605	17,747
Corporate bonds	4,287	3,576
Securities available-for-sale	98,255	91,818
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 3
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	4,599	4,238
Other real estate owned	$ 741	$ 1,810

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Carrying value
Financial Assets
Cash and cash equivalents	$ 48,629	$ 58,445
Securities available-for-sale	98,255	91,818
CRA mutual fund	852	836
Federal Home Loan Bank of Boston stock	3,372	4,496
Loans held-for-sale
Loans receivable, net	911,188	909,279
Accrued interest receivable	3,411	3,148
Cash surrender value of life insurance policies	15,267	14,438
Financial Liabilities
Demand (non-interest-bearing)	219,168	228,448
Demand (interest-bearing)	157,123	153,586
Money market	203,309	204,219
Savings and other	190,011	178,807
Certificates of deposit	172,358	161,679
Deposits	941,969	926,739
Repurchase agreements	2,951	4,104
FHLBB advances	47,712	67,154
Subordinated debt	9,841	9,835
Note payable	272	280
Capital lease liability	3,046	3,081
Accrued interest payable	578	237
Estimated fair value
Financial Assets
Cash and cash equivalents	48,629	58,445
Securities available-for-sale	98,255	91,818
CRA mutual fund	852	836
Federal Home Loan Bank of Boston stock	3,372	4,496
Loans held-for-sale
Loans receivable, net	902,084	886,222
Accrued interest receivable	3,411	3,148
Cash surrender value of life insurance policies	15,267	14,438
Financial Liabilities
Demand (non-interest-bearing)	219,168	228,448
Demand (interest-bearing)	157,123	153,586
Money market	203,309	204,219
Savings and other	190,011	178,807
Certificates of deposit	172,895	162,013
Deposits	942,506	927,073
Repurchase agreements	2,951	4,104
FHLBB advances	47,925	67,231
Subordinated debt	10,115	10,006
Note payable	279	288
Capital lease liability	3,282	3,339
Accrued interest payable	578	237
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	48,629	58,445
Securities available-for-sale
CRA mutual fund	852	836
Federal Home Loan Bank of Boston stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance policies	15,267	14,438
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	98,255	91,818
CRA mutual fund
Federal Home Loan Bank of Boston stock
Loans held-for-sale
Loans receivable, net
Accrued interest receivable
Cash surrender value of life insurance policies
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
CRA mutual fund
Federal Home Loan Bank of Boston stock	3,372	4,496
Loans held-for-sale
Loans receivable, net	902,084	886,222
Accrued interest receivable	3,411	3,148
Cash surrender value of life insurance policies
Financial Liabilities
Demand (non-interest-bearing)	219,168	228,448
Demand (interest-bearing)	157,123	153,586
Money market	203,309	204,219
Savings and other	190,011	178,807
Certificates of deposit	172,895	162,013
Deposits	942,506	927,073
Repurchase agreements	2,951	4,104
FHLBB advances	47,925	67,231
Subordinated debt	10,115	10,006
Note payable	279	288
Capital lease liability	3,282	3,339
Accrued interest payable	$ 578	$ 237

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Sep. 30, 2019	May 17, 2019
Subsequent Events [Abstract]
Dividend declared		$ .28
Executed purchase and sale agreement for branch premises, price	$ 1,600