Salisbury Bancorp (SAL) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 08, 2019
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	0001060219
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Incorporation, State or Country Code	CT
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-24751
Is Entity's Reporting Status Current?	Yes
Entity Interactive Data Current	Yes
Is Entity Emerging Growth Company?	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		2,823,812
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 8,010	$ 7,238
Interest bearing demand deposits with other banks	40,503	51,207
Total cash and cash equivalents	48,513	58,445
Securities
Available-for-sale at fair value	100,149	91,818
CRA mutual fund	869	836
Federal Home Loan Bank of Boston stock at cost	2,839	4,496
Loans held-for-sale	403
Loans receivable, net (allowance for loan losses: $8,887 and $7,831)	910,573	909,279
Other real estate owned	401	1,810
Bank premises and equipment, net	17,609	18,175
Goodwill	13,815	13,815
Intangible assets (net of accumulated amortization: $4,700 and $4,497)	1,180	1,383
Accrued interest receivable	3,439	3,148
Cash surrender value of life insurance policies	15,355	14,438
Deferred taxes	707	1,276
Other assets	3,360	2,635
Total Assets	1,119,212	1,121,554
Deposits
Demand (non-interest bearing)	231,019	228,448
Demand (interest bearing)	156,687	153,586
Money market	231,987	204,219
Savings and other	158,809	178,807
Certificates of deposit	172,221	161,679
Total deposits	950,723	926,739
Repurchase agreements	6,308	4,104
Federal Home Loan Bank of Boston advances	32,769	67,154
Subordinated debt	9,847	9,835
Note payable	263	280
Financial lease obligations	3,011	3,081
Accrued interest and other liabilities	7,343	6,902
Total Liabilities	1,010,264	1,018,095
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,899,658 and 2,884,988; Outstanding: 2,823,476 and 2,806,781	282	281
Unearned compensation - restricted stock awards	(1,075)	(711)
Paid-in capital	44,382	43,770
Retained earnings	63,905	60,339
Accumulated other comprehensive income (loss), net	1,454	(220)
Total Shareholders' Equity	108,948	103,459
Total Liabilities and Shareholders' Equity	$ 1,119,212	$ 1,121,554

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Allowance for loan losses, loans receivable	$ 8,887	$ 7,831
Accumulated amortization, intangible assets	$ 4,700	$ 4,497
Shareholders' Equity
Common stock, par value	$ 0.10	$ .10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,899,658	2,884,988
Common stock, outstanding	2,823,476	2,806,781

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest and dividend income
Interest and fees on loans	$ 9,880	$ 9,007	$ 19,814	$ 17,656
Interest on debt securities
Taxable	583	532	1,204	992
Tax exempt	117	29	189	61
Other interest and dividends	252	181	479	340
Total interest and dividend income	10,832	9,749	21,686	19,049
Interest expense
Deposits	1,999	997	3,795	1,774
Repurchase agreements	4	1	7	3
Finance lease	46	48	92	83
Note payable	4	4	8	9
Subordinated debt	156	156	312	312
Federal Home Loan Bank of Boston advances	279	500	691	833
Total interest expense	2,488	1,706	4,905	3,014
Net interest and dividend income	8,344	8,043	16,781	16,035
Provision for loan losses	151	467	445	793
Net interest and dividend income after provision for loan losses	8,193	7,576	16,336	15,242
Non-interest income
Trust and wealth advisory	1,044	949	1,950	1,843
Service charges and fees	1,012	892	1,932	1,760
Gains (losses) on sales of mortgage loans, net	1	(1)	8	17
Mortgage servicing, net	80	84	156	167
Gains (losses) on CRA mutual fund	12	(7)	23	(20)
Gains on available-for-sale securities, net	281	17	272	16
Other	118	124	234	249
Total non-interest income	2,548	2,058	4,575	4,032
Non-interest expense
Salaries	2,959	2,939	5,952	5,785
Employee benefits	1,042	969	2,227	2,128
Premises and equipment	1,004	1,101	1,976	2,125
Data processing	577	556	1,086	1,042
Professional fees	583	611	1,118	1,230
OREO losses and write-downs	270	1	322	53
Collections and other real estate owned	79	235	209	316
FDIC insurance	140	123	303	253
Marketing and community support	151	222	307	463
Amortization of core deposit intangibles	99	116	203	236
Other	535	544	947	965
Total non-interest expense	7,439	7,417	14,650	14,596
Income before income taxes	3,302	2,217	6,261	4,678
Income tax provision	599	318	1,124	763
Net income	2,703	1,899	5,137	3,915
Net income allocated to common stock	$ 2,671	$ 1,877	$ 5,079	$ 3,873
Basic earnings per common share	$ 0.96	$ 0.68	$ 1.83	$ 1.40
Weighted average common shares outstanding, to calculate basic earnings per share	2,780	2,762	2,779	2,760
Diluted earnings per common share	$ 0.95	$ 0.68	$ 1.82	$ 1.39
Weighted average common shares outstanding, to calculate diluted earnings per share	2,800	2,779	2,795	2,780
Common dividends per share	$ 0.28	$ 0.28	$ 0.56	$ 0.56

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net income	$ 2,703	$ 1,899	$ 5,137	$ 3,915
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale	1,261	(279)	2,390	(1,297)
Reclassification of net realized gains in net income	(281)	(17)	(272)	(16)
Unrealized gains (losses) on securities available-for-sale	980	(296)	2,118	(1,313)
Income tax (expense) benefit	(206)	62	(444)	272
Unrealized gains (losses) on securities available-for-sale, net of tax	774	(234)	1,674	(1,041)
Comprehensive income	$ 3,477	$ 1,665	$ 6,811	$ 2,874

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			3,915			3,915
Adoption of new accounting principle			(16)		16
Other comprehensive loss, net of tax					(1,041)	(1,041)
Common stock dividends declared			(1,561)			(1,561)
Issuance of restricted stock, amount		410		(410)
Issuance of restricted stock, shares	9,250
Stock options exercised, amount	$ 1	144				145
Stock options exercised, shares	4,700
Issuance of director's restricted stock awards, amount		175		(175)
Issuance of director's restricted stock awards, shares	3,960
Stock based compensation - restricted stock awards				208		208
Balance - Ending, amount at Jun. 30, 2018	$ 280	43,727	57,002	(983)	(846)	99,180
Balance - Ending, shares at Jun. 30, 2018	2,803,126
Balance - Beginning, amount at Mar. 31, 2018	$ 279	43,040	55,883	(493)	(612)	98,097
Balance - Beginning, shares at Mar. 31, 2018	2,786,566
Net income			1,899			1,899
Other comprehensive loss, net of tax					(234)	(234)
Common stock dividends declared				(780)		(780)
Issuance of restricted stock, amount		410		(410)
Issuance of restricted stock, shares	9,250
Stock options exercised, amount	$ 1	102				$ 103
Stock options exercised, shares	3,350					3,350
Issuance of director's restricted stock awards, amount		175		(175)
Issuance of director's restricted stock awards, shares	3,960
Stock based compensation - restricted stock awards				95		95
Balance - Ending, amount at Jun. 30, 2018	$ 280	43,727	57,002	(983)	(846)	99,180
Balance - Ending, shares at Jun. 30, 2018	2,803,126
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			5,137			$ 5,137
Other comprehensive loss, net of tax					1,674	1,674
Common stock dividends declared			(1,571)			(1,571)
Issuance of restricted stock, amount	$ 1	457		(458)
Issuance of restricted stock, shares	11,530
Stock options exercised, amount		34				34
Stock options exercised, shares	2,025
Forfeiture of restricted stock, amount		(21)		21
Forfeiture of restricted stock, shares	(460)
Issuance of director's restricted stock awards, amount		142		(142)
Issuance of director's restricted stock awards, shares	3,600
Stock based compensation - restricted stock awards				215		215
Balance - Ending, amount at Jun. 30, 2019	$ 282	44,382	63,905	(1,075)	1,454	$ 108,948
Balance - Ending, shares at Jun. 30, 2019	2,823,476					2,823,476
Balance - Beginning, amount at Mar. 31, 2019	$ 281	43,765	61,989	(606)	680	$ 106,109
Balance - Beginning, shares at Mar. 31, 2019	2,806,681
Net income			2,703			2,703
Other comprehensive loss, net of tax					774	774
Common stock dividends declared			(787)			(787)
Issuance of restricted stock, amount	$ 1	457		(458)
Issuance of restricted stock, shares	11,530
Stock options exercised, amount		34				$ 34
Stock options exercised, shares	2,025					2,025
Forfeiture of restricted stock, amount		(16)		16
Forfeiture of restricted stock, shares	(360)
Issuance of director's restricted stock awards, amount		142		(142)
Issuance of director's restricted stock awards, shares	3,600
Stock based compensation - restricted stock awards				115		115
Balance - Ending, amount at Jun. 30, 2019	$ 282	$ 44,382	$ 63,905	$ (1,075)	$ 1,454	$ 108,948
Balance - Ending, shares at Jun. 30, 2019	2,823,476					2,823,476

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating Activities
Net income	$ 5,137	$ 3,915
Amortization (accretion) and depreciation:
Securities	137	29
Bank premises and equipment	813	820
Core deposit intangible	203	236
Modification fees on Federal Home Loan Bank of Boston advances	115	116
Subordinated debt issuance costs	12	12
Mortgage servicing rights	24	23
Fair value adjustment on loans	(64)	(462)
Fair value adjustment on deposits	(4)	(21)
Gain on sales and calls of securities available-for-sale, net	272	16
(Gain) losses on CRA mutual fund	(23)	20
Gain on sales of loans, excluding capitalized servicing rights	(7)	(10)
OREO losses and write-downs	322	53
Loss on sale/disposals of premises and equipment		1
Provision for loan losses	445	793
Proceeds from loans sold	458	679
Loans originated for sale	(854)	(206)
Decrease (increase) in deferred loan origination fees and costs, net	92	(161)
Mortgage servicing rights originated	(5)	(7)
Increase in interest receivable	(291)	(355)
Decrease (increase) in deferred tax benefit	125	(152)
Increase in prepaid expenses	101	129
Increase in cash surrender value of life insurance policies	(167)	(163)
Decrease in income tax receivable	13	606
Decrease (increase) in other assets	694	(17)
Decrease in accrued expenses	(1,072)	(317)
Increase in interest payable	339	123
Decrease in other liabilities	(378)	(109)
Stock based compensation - restricted stock awards	215	208
Net cash provided by operating activities	6,108	5,767
Investing Activities
Purchase of Federal Home Loan Bank of Boston stock, net of redemptions	1,657	(1,175)
Purchases of securities available-for-sale	(41,255)	(26,248)
Proceeds from sales of securities available-for-sale	28,170	8,410
Proceeds from calls of securities available-for-sale	25	945
Proceeds from maturities of securities available-for-sale	6,982	8,706
Reinvestment of CRA mutual fund	(10)	(10)
Loan originations and principle collections, net	(1,813)	(63,442)
Recoveries of loans previously charged off	46	27
Proceeds from sales of other real estate owned	1,087	188
Capital expenditures	(247)	(1,097)
Purchase of life insurance policies	(750)
Cash and cash equivalents (paid) acquired from acquisition		(298)
Net cash utilized by investing activities	(6,108)	(73,994)
Financing Activities
Increase in deposit transaction accounts, net	13,442	56,901
Increase in time deposits, net	10,546	16,783
Increase in securities sold under agreements to repurchase, net	2,204	23
Federal Home Loan Bank of Boston short-term advances, net change	(9,500)	52,000
Principal payments on Federal Home Loan Bank of Boston advances	(25,000)	(27,000)
Principal payments on note payable	(17)	(16)
Decrease in capital lease obligation	(70)	(61)
Stock options exercised	34	145
Common stock dividends paid	(1,571)	(1,561)
Net cash (utilized) provided by financing activities	(9,932)	97,214
Net (decrease) increase in cash and cash equivalents	(9,932)	28,987
Cash and cash equivalents, beginning of period	58,445	48,486
Cash and cash equivalents, end of period	48,513	77,473
Cash paid during period
Interest	4,443	2,784
Income taxes	986	516
Non-cash transfers
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		16
Branch Acquisitions
Cash and cash equivalents paid		(298)
Net loans acquired		7,849
Fixed assets acquired		761
Accrued interest receivable acquired		5
Other assets acquired		6
Deposits assumed		$ 8,323

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 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 June 30, 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. In April 2019, the FASB issued ASU 2019-04 which clarified the treatment of accrued interest when measuring credit losses. Entities may: (1) measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets; (2) make various accounting policy elections regarding the treatment of accrued interest receivable; or (3) elect a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements. ASU 2019-04 also clarified that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. On July 17, 2019 the FASB proposed to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Salisbury meets the definition of a smaller reporting company because its public float is less than $250 million. FASB's proposal will undergo a 30-day public comment period in August 2019. If the implementation is delayed as proposed, Salisbury will evaluate when it will adopt this standard. Early adoption is permitted. Upon adoption, however, 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 its methodology. 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 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 Salisbury's Consolidated Financial Statements.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 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 June 30, 2019 Available-for-sale U.S. Government Agency notes $ 4,771 $ 163 $ 2 $ 4,932 Municipal bonds 20,205 430 12 20,623 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 39,158 585 20 39,723 Collateralized mortgage obligations: U.S. Government agencies 29,925 606 1 30,530 Corporate bonds 4,250 91 — 4,341 Total securities available-for-sale $ 98,309 $ 1,875 $ 35 $ 100,149 CRA mutual fund $ 869 $ — $ — $ 869 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,839 $ — $ — $ 2,839 (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 $28.2 million of available-for-sale securities during the six month period ended June 30, 2019 realizing a pre-tax gain of $272 thousand and a related tax expense of $57 thousand. Salisbury sold $27.2 million in securities available-for-sale during the three month period ended June 30, 2019 realizing a pre-tax gain of $281 thousand and related tax expense of $59 thousand. Salisbury sold $8.4 million of available-for-sale securities during the three and six month periods ended June 30, 2018 realizing a pre-tax gain of $16 thousand and a related tax expense of $3 thousand. 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 June 30, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 336 $ 2 $ 336 $ 2 Municipal bonds 4,679 12 — — 4,679 12 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 6,134 14 729 6 6,863 20 Collateralized mortgage obligations: U.S. Government Agencies — — 1,616 1 1,616 1 Total temporarily impaired securities $ 10,813 $ 26 $ 2,681 $ 9 $ 13,494 $ 35 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: June 30, 2019 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes Within 1 year $ 22 $ 22 3.79 % After 1 year but within 5 years 359 358 3.60 After 5 year but within 10 years 4,390 4,552 3.36 Total 4,771 4,932 3.38 Municipal bonds Within 1 year 231 231 2.44 After 10 years 19,974 20,392 3.66 Total 20,205 20,623 3.65 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 69,083 70,253 2.85 Corporate bonds After 5 years but within 10 years 4,250 4,341 5.43 Securities available-for-sale $ 98,309 $ 100,149 3.03 % (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 June 30, 2019. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Four securities had unrealized losses at June 30, 2019, which approximated 0.56% 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 June 30, 2019. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Eight securities had unrealized losses at June 30, 2019, which approximated 0.26% of their amortized cost. Management believes the unrealized loss position is attributable to interest rate and spread 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. 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 June 30, 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. Eight securities had unrealized losses at June 30, 2019, which approximated 0.24% 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 June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable and loans held-for-sale is as follows: June 30, 2019 December 31, 2018 (In thousands) Total Loans Total Loans Residential 1-4 family $ 335,479 $ 345,862 Residential 5+ multifamily 37,148 36,510 Construction of residential 1-4 family 12,553 12,041 Home equity lines of credit 34,631 34,433 Residential real estate 419,811 428,846 Commercial 287,946 283,599 Construction of commercial 10,175 8,976 Commercial real estate 298,121 292,575 Farm land 3,714 4,185 Vacant land 8,050 8,322 Real estate secured 729,696 733,928 Commercial and industrial 163,487 162,905 Municipal 19,782 14,344 Consumer 5,166 4,512 Loans receivable, gross 918,131 915,689 Deferred loan origination fees and costs, net 1,329 1,421 Allowance for loan losses (8,887 ) (7,831 ) Loans receivable, net $ 910,573 $ 909,279 Loans held-for-sale Residential 1-4 family $ 403 $ — 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" (5) 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" (6) 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" (7) 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" (8) 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 June 30, 2019 Residential 1-4 family $ 326,478 $ 4,079 $ 4,922 $ — $ — $ 335,479 Residential 5+ multifamily 35,282 105 1,761 — — 37,148 Construction of residential 1-4 family 12,553 — — — — 12,553 Home equity lines of credit 33,819 329 483 — — 34,631 Residential real estate 408,132 4,513 7,166 — — 419,811 Commercial 268,152 11,733 7,988 73 — 287,946 Construction of commercial 9,929 — 246 — — 10,175 Commercial real estate 278,081 11,733 8,234 73 — 298,121 Farm land 1,974 — 1,740 — — 3,714 Vacant land 7,985 65 — — — 8,050 Real estate secured 696,172 16,311 17,140 73 — 729,696 Commercial and industrial 160,622 973 1,892 — — 163,487 Municipal 19,782 — — — — 19,782 Consumer 5,121 4 41 — — 5,166 Loans receivable, gross $ 881,697 $ 17,288 $ 19,073 $ 73 $ — $ 918,131 (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 June 30, 2019 Residential 1-4 family $ 333,051 $ 806 $ 481 $ 1,141 $ — $ 2,428 $ — $ 2,402 Residential 5+ multifamily 36,287 — — — 861 861 — 988 Construction of residential 1-4 family 12,553 — — — — — — — Home equity lines of credit 33,911 208 153 — 359 720 — 483 Residential real estate 415,802 1,014 634 1,141 1,220 4,009 — 3,873 Commercial 286,726 935 68 73 144 1,220 — 941 Construction of commercial 10,175 — — — — — — — Commercial real estate 296,901 935 68 73 144 1,220 — 941 Farm land 3,517 197 — — — 197 — 204 Vacant land 8,008 42 — — — 42 — — Real estate secured 724,228 2,188 702 1,214 1,364 5,468 — 5,018 Commercial and industrial 163,338 47 99 3 — 149 — 3 Municipal 19,782 — — — — — — — Consumer 5,163 3 — — — 3 — 41 Loans receivable, gross $ 912,511 $ 2,238 $ 801 $ 1,217 $ 1,364 $ 5,620 $ — $ 5,062 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 For the second quarter 2019, two residential loans with a combined loan balance of $623 thousand and one consumer loan of $41 thousand were modified in troubled debt restructurings for rate reductions. One CRE loan of $686 thousand was modified for a rate reduction in the second quarter of 2018. For the six months ended June 2019, three troubled debt restructurings with a combined loan balance of $664 thousand were modified for a rate reduction and for the same period in 2018, one CRE loan of $686 thousand was modified for a rate reduction. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended June 30, 2019 Three months ended June 30, 2018 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,980 $ 95 ($ 1 ) $ — $ 2,074 $ 1,982 $ 24 $ — $ 1 $ 2,007 Residential 5+ multifamily 466 29 — — 495 216 42 — — 258 Construction of residential 1-4 family 77 2 — — 79 74 8 — — 82 Home equity lines of credit 209 15 — — 224 233 1 — — 234 Residential real estate 2,732 141 (1 ) — 2,872 2,505 75 — 1 2,581 Commercial 3,803 (13 ) (14 ) 1 3,777 2,666 259 (149 ) — 2,776 Construction of commercial 143 (16 ) — — 127 93 9 — — 102 Commercial real estate 3,946 (29 ) (14 ) 1 3,904 2,759 268 (149 ) — 2,878 Farm land 47 — — — 47 33 4 — — 37 Vacant land 89 — — — 89 131 3 — — 134 Real estate secured 6,814 112 (15 ) 1 6,912 5,428 350 (149 ) 1 5,630 Commercial and industrial 1,233 (67 ) (19 ) 29 1,176 938 201 — 5 1,144 Municipal 14 16 — — 30 30 (1 ) — — 29 Consumer 51 40 (18 ) 8 81 61 3 (6 ) 5 63 Unallocated 638 50 — — 688 601 (86 ) — — 515 Totals $ 8,750 $ 151 ($ 52 ) $ 38 $ 8,887 $ 7,058 $ 467 $ (155 ) $ 11 $ 7,381 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. Six Months ended June 30, 2019 Six Months ended June 30, 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 ($ 85 ) $ (1 ) $ 1 $ 2,074 $ 1,862 $ 154 ($ 10 ) $ 1 $ 2,007 Residential 5+ multifamily 413 — 82 — — 495 155 103 — — 258 Construction of residential 1-4 family 83 — (4 ) — — 79 75 7 — — 82 Home equity lines of credit 219 1 4 — — 224 236 (3 ) — 1 234 Residential real estate 2,864 11 (3 ) (1 ) 1 2,872 2,328 261 (10 ) 2 2,581 Commercial 3,048 488 262 (23 ) 2 3,777 2,547 377 (150 ) 1 2,775 Construction of commercial 122 — 5 — — 127 80 22 — — 102 Commercial real estate 3,170 488 267 (23 ) 2 3,904 2,627 399 (150 ) 1 2,877 Farm land 33 — 14 — — 47 32 5 — — 37 Vacant land 100 — (11 ) — — 89 131 3 — — 134 Real estate secured 6,167 499 267 (24 ) 3 6,912 5,118 668 (160 ) 3 5,629 Commercial and industrial 1,158 164 (127 ) (50 ) 31 1,176 984 159 (10 ) 11 1,144 Municipal 12 — 18 — — 30 30 (1 ) — — 29 Consumer 56 — 37 (24 ) 12 81 81 14 (45 ) 13 63 Unallocated 438 — 250 — — 688 563 (47 ) — — 516 Totals $ 7,831 $ 663 $ 445 ($ 98 ) $ 46 $ 8,887 $ 6,776 $ 793 ($ 215 ) $ 27 $ 7,381 The composition of loans receivable and the allowance for loan losses is as follows: (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2019 Residential 1-4 family $ 329,847 $ 1,902 $ 5,632 $ 172 $ 335,479 $ 2,074 Residential 5+ multifamily 36,160 495 988 — 37,148 495 Construction of residential 1-4 family 12,553 79 — — 12,553 79 Home equity lines of credit 34,105 223 526 1 34,631 224 Residential real estate 412,665 2,699 7,146 173 419,811 2,872 Commercial 284,145 3,591 3,801 186 287,946 3,777 Construction of commercial 10,175 127 — — 10,175 127 Commercial real estate 294,320 3,718 3,801 186 298,121 3,904 Farm land 3,510 47 204 — 3,714 47 Vacant land 7,865 87 185 2 8,050 89 Real estate secured 718,360 6,551 11,336 361 729,696 6,912 Commercial and industrial 163,349 1,176 138 — 163,487 1,176 Municipal 19,782 30 — — 19,782 30 Consumer 5,125 46 41 35 5,166 81 Unallocated allowance — 688 — — — 688 Totals $ 906,616 $ 8,491 $ 11,515 $ 396 $ 918,131 $ 8,887 (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: June 30, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,151 $ 7,328 $ — $ — $ 895,151 $ 7,328 Potential problem loans 1 11,465 475 — — 11,465 475 Impaired loans — — 11,515 396 11,515 396 Unallocated allowance — 688 — — — 688 Totals $ 906,616 $ 8,491 $ 11,515 $ 396 $ 918,131 $ 8,887 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 present value of expected cash flows or fair value of collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment is as follows: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized June 30, 2019 Residential $ 4,629 $ 4,985 $ 3,032 $ 172 $ 66 $ 1,991 $ 2,659 $ 3,299 $ 13 Home equity lines of credit 43 43 45 1 1 483 575 442 — Residential real estate 4,672 5,028 3,077 173 67 2,474 3,234 3,741 13 Commercial 2,565 2,571 2,239 186 51 1,236 2,519 2,287 27 Construction of commercial — — 143 — — — 3 72 — Farm land — — — — — 204 428 211 — Vacant land 42 42 42 2 1 143 163 145 5 Real estate secured 7,279 7,641 5,501 361 119 4,057 6,347 6,456 45 Commercial and industrial 3 3 — — — 135 236 395 3 Consumer 41 41 6 35 — — — 6 — Totals $ 7,323 $ 7,685 $ 5,507 $ 396 $ 119 $ 4,192 $ 6,583 $ 6,857 $ 48 Note: The income recognized is for the six month period ended June 30, 2019. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized June 30, 2018 Residential $ 3,331 $ 3,382 $ 3,965 $ 117 $ 57 $ 3,901 $ 4,936 $ 2,976 $ 63 Home equity lines of credit 47 47 47 2 1 60 113 63 — Residential real estate 3,378 3,429 4,012 119 58 3,961 5,049 3,039 63 Commercial 1,818 1,843 2,026 143 30 3,459 4,941 3,027 43 Construction of commercial — — 15 — — 362 386 348 3 Farm land — — — — — 230 443 240 — Vacant land 43 43 44 3 1 151 173 153 5 Real estate secured 5,239 5,315 6,097 265 89 8,163 10,992 6,807 114 Commercial and industrial — — 74 — — 508 607 439 1 Consumer — — — — — — 4 — — Totals $ 5,239 $ 5,315 $ 6,171 $ 265 $ 89 $ 8,671 $ 11,603 $ 7,246 $ 115 Note: The income recognized is for the six month period ended June 30, 2018.

LEASES

LEASES	6 Months Ended
	Jun. 30, 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 Sheet. Effective January 1, 2019, the Bank recorded approximately $1.6 million of right-of-use assets and corresponding lease liability related to these operating leases. The Bank does not have any leases with related parties and equipment leases are not material to Salisbury's consolidated financial statements. The following table provides the assets and liabilities as well as the costs of operating and finance leases that are included in the Bank's consolidated balance sheet as of June 30, 2019 and consolidated income statements for the six months and three months ended June 30, 2019. ($ in thousands, except lease term and discount rate) Classification June 30, 2019 Assets Operating Other assets $ 1,457 Finance Bank premises and equipment 1 2,740 Total Leased Assets $ 4,197 Liabilities Operating Other liabilities $ 1,457 Finance Finance lease 3,011 Total lease liabilities $ 4,468 1 Lease cost Classification Six months ended June 30, 2019 Three months ended June 30, 2019 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 120 47 Interest on finance leases Interest expense 92 46 Total lease cost $ 335 $ 154 Weighted Average Remaining Lease Term Operating leases 8.6 years Financing leases 13.1 years Weighted Average Discount Rate 1 Operating leases 3.70% Financing leases 6.20% 1 The following is a schedule by years of the present value of the net minimum lease payments as of June 30, 2019. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2019 $ 123 $ 168 2020 246 336 2021 228 342 2022 199 345 2023 148 347 Thereafter 782 2,953 Total future minimum lease payments 1,726 4,491 Less amount representing interest (269 ) (1,480 ) Total present value of net future minimum lease payments $ 1,457 $ 3,011

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	6 Months Ended
	Jun. 30, 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) June 30, 2019 December 31, 2018 Residential mortgage loans serviced for others $ 106,868 $ 111,378 Fair value of mortgage servicing rights 818 951 Changes in mortgage servicing rights are as follows: Three months ended Six months ended Periods ended June 30, (in thousands) 2019 2018 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 221 $ 228 $ 228 $ 233 Originated 1 — 5 7 Amortization (1) (13 ) (11 ) (24 ) (23 ) Balance, end of period $ 209 $ 217 $ 209 $ 217 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS

PLEDGED ASSETS	6 Months Ended
	Jun. 30, 2019
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 6 - PLEDGED ASSETS (in thousands) June 30, 2019 December 31, 2018 Securities available-for-sale (at fair value) $ 70,737 $ 80,991 Loans receivable (at book value) 316,252 328,674 Total pledged assets $ 386,989 $ 409,665 At June 30, 2019, securities were pledged as follows: $63.4 million to secure public deposits, $7.3 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	6 Months Ended
	Jun. 30, 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 shareholders 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 Six months ended Periods ended June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 2,703 $ 1,899 $ 5,137 $ 3,915 Less: Undistributed earnings allocated to participating securities (32 ) (22 ) (58 ) (42 ) Net income allocated to common stock $ 2,671 $ 1,877 $ 5,079 $ 3,873 Weighted average common shares issued 2,813 2,794 2,810 2,790 Less: Unvested restricted stock awards (33 ) (32 ) (31 ) (30 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,780 2,762 2,779 2,760 Add: Dilutive effect of stock options, unvested restricted stock awards and units 20 17 16 20 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,800 2,779 2,795 2,780 Earnings per common share (basic) $ 0.96 $ 0.68 $ 1.83 $ 1.40 Earnings per common share (diluted) $ 0.95 $ 0.68 $ 1.82 $ 1.39

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 8 – SHAREHOLDERS' EQUITY Capital Requirements The Bank is 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 the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. 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 June 30, 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. The Bank's risk-weighted assets at June 30, 2019 and December 31, 2018 were $869.2 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 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 June 30, 2019 Total Capital (to risk-weighted assets) $ 109,272 12.57 % $ 69,539 8.0 % $ 91,270 10.5 % $ 86,294 10.0 % Tier 1 Capital (to risk-weighted assets) 100,293 11.54 52,154 6.0 73,885 8.5 69,539 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 100,293 11.54 39,116 4.5 60,847 7.0 56,500 6.5 Tier 1 Capital (to average assets) $ 100,293 9.10 44,090 4.0 44,090 4.0 55,113 5.0 December 31, 2018 Total Capital (to risk-weighted assets) $ 104,013 12.09 % $ 68,848 8.0 % $ 90,362 10.5 % $ 86,059 10.0 % Tier 1 Capital (to risk-weighted assets) 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) 96,092 11.17 38,727 4.5 60,242 7.0 55,939 6.5 Tier 1 Capital (to average assets) $ 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	6 Months Ended
	Jun. 30, 2019
Retirement Benefits [Abstract]
BENEFITS	NOTE 9 – BENEFITS Salisbury's 401(k) Plan expense was $192 thousand and $238 thousand, respectively, for the three month periods ended June 30, 2019 and 2018, and $431 thousand and $520 thousand, respectively, for the six month periods ended June 30, 2019 and 2018. Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements was $27 thousand and ($24) thousand, respectively, for the three month periods ended June 30, 2019 and 2018, and $48 thousand and $2 thousand, respectively, for the six month periods ended June 30, 2019 and 2018. The credit in the last year's second quarter reflected a reduction of the Bank's liability associated with split-dollar life insurance arrangements for employees who left the Bank in 2017. 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 $53 thousand and $66 thousand, respectively, for the three month periods ended June 30, 2019 and 2018, and $102 thousand and $127 thousand, respectively, for the six month periods ended June 30, 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 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 June 30, 2019 and 2018, and $58 thousand and $57 thousand, respectively, for the six month periods ended June 30, 2019 and 2018. Grants of Restricted Stock and Options Restricted stock Restricted stock expense was $115 thousand and $95 thousand, respectively; for the three month periods ended June 30, 2019 and 2018, and $215 thousand and $208 thousand, respectively; for the six month periods ended June 30, 2019 and 2018. The tax benefit from restricted stock expense was $24 thousand and $20 thousand, respectively; for the three month periods ended June 30, 2019 and 2018, and $45 thousand and $44 thousand, respectively; for the six month periods ended June 30, 2019 and 2018. In second quarter 2019, Salisbury granted a total of 15,130 shares of restricted stock to certain employees and Directors pursuant to its 2017 Long Term Incentive Plan. The fair value of the stock at grant date was approximately $600 thousand. The restricted stock will vest three years from the grant date. Unrecognized compensation cost relating to the awards as of June 30, 2019 and 2018 totaled $1,075 thousand and $983 thousand, respectively. There were forfeitures of $16 thousand or 360 shares in the second quarter of 2019 and forfeitures of $21 thousand or 460 shares for year to date. There were no forfeitures in the second quarter or six month periods ended June 30, 2018. 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. Compensation expense of $23 thousand was recorded with respect to these RSUs in the three and six month periods ended June 30, 2019. No performance-based restricted stock units were awarded prior to March 29, 2019. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the second quarter 2019, there were 2,025 stock options exercised at $17.04, by one employee and in the first quarter 2019, there were no exercised options. In the second quarter 2018, there were 3,350 stock options exercised at $31.11 by two employees and 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.

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 10 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. 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 June 30, 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 June 30, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,932 $ — $ 4,932 Municipal bonds — 20,623 — 20,623 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 39,723 — 39,723 Collateralized mortgage obligations: U.S. Government agencies — 30,530 — 30,530 Corporate bonds — 4,341 — 4,341 Securities available-for-sale $ — $ 100,149 $ — $ 100,149 CRA mutual funds 869 — — 869 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 2,872 $ 2,872 Other real estate owned $ — $ — $ 401 $ 401 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 June 30, 2019 Financial Assets Cash and cash equivalents $ 48,513 $ 48,513 $ 48,513 $ — $ — Securities available-for-sale, net 100,149 100,149 — 100,149 — CRA mutual fund 869 869 869 — — Federal Home Loan Bank of Boston stock 2,839 2,839 2,839 — — Loans held-for-sale 403 403 — — 403 Loans receivable, net 910,573 910,149 — — 910,149 Accrued interest receivable 3,439 3,439 3,439 — — Cash surrender value of life insurance policies 15,355 15,355 15,355 — — Financial Liabilities Demand (non-interest-bearing) $ 231,019 $ 231,019 $ — $ 231,019 $ — Demand (interest-bearing) 156,687 156,687 — 156,687 — Money market 231,987 231,987 — 231,987 — Savings and other 158,809 158,809 — 158,809 — Certificates of deposit 172,221 172,865 — 172,865 — Deposits $ 950,723 $ 951,397 — $ 951,397 $ — Repurchase agreements 6,308 6,308 — 6,308 — FHLBB advances 32,769 33,057 — 33,057 — Subordinated debt 9,847 10,121 10,121 — Note payable 263 269 — 269 — Capital lease liability 3,011 3,225 — 3,225 Accrued interest payable 576 576 576 — — December 31, 2018 Financial Assets Cash and cash equivalents $ 58,445 $ 58,445 $ 58,445 $ — $ — Securities available-for-sale, net 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	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS On July 26, 2019 the Board of Directors declared a dividend of $0.28 per common share payable on August 30, 2019 to shareholders of record as of August 16, 2019.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 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. In April 2019, the FASB issued ASU 2019-04 which clarified the treatment of accrued interest when measuring credit losses. Entities may: (1) measure the allowance for credit losses on accrued interest receivable balances separately from other components of the amortized cost basis of associated financial assets; (2) make various accounting policy elections regarding the treatment of accrued interest receivable; or (3) elect a practical expedient to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements. ASU 2019-04 also clarified that expected recoveries of amounts previously written off and expected to be written off should be included in the valuation account and should not exceed the aggregate of amounts previously written off and expected to be written off by the entity. In addition, for collateral dependent financial assets, the amendments clarify that an allowance for credit losses that is added to the amortized cost basis of the financial asset(s) should not exceed amounts previously written off. On July 17, 2019 the FASB proposed to delay the implementation of this standard for smaller reporting companies to years beginning after December 15, 2022. Salisbury meets the definition of a smaller reporting company because its public float is less than $250 million. FASB's proposal will undergo a 30-day public comment period in August 2019. If the implementation is delayed as proposed, Salisbury will evaluate when it will adopt this standard. Early adoption is permitted. Upon adoption, however, 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 its methodology. 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 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 Salisbury's Consolidated Financial Statements.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2019 Available-for-sale U.S. Government Agency notes $ 4,771 $ 163 $ 2 $ 4,932 Municipal bonds 20,205 430 12 20,623 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 39,158 585 20 39,723 Collateralized mortgage obligations: U.S. Government agencies 29,925 606 1 30,530 Corporate bonds 4,250 91 — 4,341 Total securities available-for-sale $ 98,309 $ 1,875 $ 35 $ 100,149 CRA mutual fund $ 869 $ — $ — $ 869 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,839 $ — $ — $ 2,839 (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 June 30, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 336 $ 2 $ 336 $ 2 Municipal bonds 4,679 12 — — 4,679 12 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 6,134 14 729 6 6,863 20 Collateralized mortgage obligations: U.S. Government Agencies — — 1,616 1 1,616 1 Total temporarily impaired securities $ 10,813 $ 26 $ 2,681 $ 9 $ 13,494 $ 35 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	June 30, 2019 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes Within 1 year $ 22 $ 22 3.79 % After 1 year but within 5 years 359 358 3.60 After 5 year but within 10 years 4,390 4,552 3.36 Total 4,771 4,932 3.38 Municipal bonds Within 1 year 231 231 2.44 After 10 years 19,974 20,392 3.66 Total 20,205 20,623 3.65 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 69,083 70,253 2.85 Corporate bonds After 5 years but within 10 years 4,250 4,341 5.43 Securities available-for-sale $ 98,309 $ 100,149 3.03 % (1)

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	June 30, 2019 December 31, 2018 (In thousands) Total Loans Total Loans Residential 1-4 family $ 335,479 $ 345,862 Residential 5+ multifamily 37,148 36,510 Construction of residential 1-4 family 12,553 12,041 Home equity lines of credit 34,631 34,433 Residential real estate 419,811 428,846 Commercial 287,946 283,599 Construction of commercial 10,175 8,976 Commercial real estate 298,121 292,575 Farm land 3,714 4,185 Vacant land 8,050 8,322 Real estate secured 729,696 733,928 Commercial and industrial 163,487 162,905 Municipal 19,782 14,344 Consumer 5,166 4,512 Loans receivable, gross 918,131 915,689 Deferred loan origination fees and costs, net 1,329 1,421 Allowance for loan losses (8,887 ) (7,831 ) Loans receivable, net $ 910,573 $ 909,279 Loans held-for-sale Residential 1-4 family $ 403 $ —
Composition of loans receivable by risk rating grade	(in thousands) Pass Special mention Substandard Doubtful Loss Total June 30, 2019 Residential 1-4 family $ 326,478 $ 4,079 $ 4,922 $ — $ — $ 335,479 Residential 5+ multifamily 35,282 105 1,761 — — 37,148 Construction of residential 1-4 family 12,553 — — — — 12,553 Home equity lines of credit 33,819 329 483 — — 34,631 Residential real estate 408,132 4,513 7,166 — — 419,811 Commercial 268,152 11,733 7,988 73 — 287,946 Construction of commercial 9,929 — 246 — — 10,175 Commercial real estate 278,081 11,733 8,234 73 — 298,121 Farm land 1,974 — 1,740 — — 3,714 Vacant land 7,985 65 — — — 8,050 Real estate secured 696,172 16,311 17,140 73 — 729,696 Commercial and industrial 160,622 973 1,892 — — 163,487 Municipal 19,782 — — — — 19,782 Consumer 5,121 4 41 — — 5,166 Loans receivable, gross $ 881,697 $ 17,288 $ 19,073 $ 73 $ — $ 918,131 (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 June 30, 2019 Residential 1-4 family $ 333,051 $ 806 $ 481 $ 1,141 $ — $ 2,428 $ — $ 2,402 Residential 5+ multifamily 36,287 — — — 861 861 — 988 Construction of residential 1-4 family 12,553 — — — — — — — Home equity lines of credit 33,911 208 153 — 359 720 — 483 Residential real estate 415,802 1,014 634 1,141 1,220 4,009 — 3,873 Commercial 286,726 935 68 73 144 1,220 — 941 Construction of commercial 10,175 — — — — — — — Commercial real estate 296,901 935 68 73 144 1,220 — 941 Farm land 3,517 197 — — — 197 — 204 Vacant land 8,008 42 — — — 42 — — Real estate secured 724,228 2,188 702 1,214 1,364 5,468 — 5,018 Commercial and industrial 163,338 47 99 3 — 149 — 3 Municipal 19,782 — — — — — — — Consumer 5,163 3 — — — 3 — 41 Loans receivable, gross $ 912,511 $ 2,238 $ 801 $ 1,217 $ 1,364 $ 5,620 $ — $ 5,062 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 June 30, 2019 Three months ended June 30, 2018 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,980 $ 95 ($ 1 ) $ — $ 2,074 $ 1,982 $ 24 $ — $ 1 $ 2,007 Residential 5+ multifamily 466 29 — — 495 216 42 — — 258 Construction of residential 1-4 family 77 2 — — 79 74 8 — — 82 Home equity lines of credit 209 15 — — 224 233 1 — — 234 Residential real estate 2,732 141 (1 ) — 2,872 2,505 75 — 1 2,581 Commercial 3,803 (13 ) (14 ) 1 3,777 2,666 259 (149 ) — 2,776 Construction of commercial 143 (16 ) — — 127 93 9 — — 102 Commercial real estate 3,946 (29 ) (14 ) 1 3,904 2,759 268 (149 ) — 2,878 Farm land 47 — — — 47 33 4 — — 37 Vacant land 89 — — — 89 131 3 — — 134 Real estate secured 6,814 112 (15 ) 1 6,912 5,428 350 (149 ) 1 5,630 Commercial and industrial 1,233 (67 ) (19 ) 29 1,176 938 201 — 5 1,144 Municipal 14 16 — — 30 30 (1 ) — — 29 Consumer 51 40 (18 ) 8 81 61 3 (6 ) 5 63 Unallocated 638 50 — — 688 601 (86 ) — — 515 Totals $ 8,750 $ 151 ($ 52 ) $ 38 $ 8,887 $ 7,058 $ 467 $ (155 ) $ 11 $ 7,381 Six Months ended June 30, 2019 Six Months ended June 30, 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 ($ 85 ) $ (1 ) $ 1 $ 2,074 $ 1,862 $ 154 ($ 10 ) $ 1 $ 2,007 Residential 5+ multifamily 413 — 82 — — 495 155 103 — — 258 Construction of residential 1-4 family 83 — (4 ) — — 79 75 7 — — 82 Home equity lines of credit 219 1 4 — — 224 236 (3 ) — 1 234 Residential real estate 2,864 11 (3 ) (1 ) 1 2,872 2,328 261 (10 ) 2 2,581 Commercial 3,048 488 262 (23 ) 2 3,777 2,547 377 (150 ) 1 2,775 Construction of commercial 122 — 5 — — 127 80 22 — — 102 Commercial real estate 3,170 488 267 (23 ) 2 3,904 2,627 399 (150 ) 1 2,877 Farm land 33 — 14 — — 47 32 5 — — 37 Vacant land 100 — (11 ) — — 89 131 3 — — 134 Real estate secured 6,167 499 267 (24 ) 3 6,912 5,118 668 (160 ) 3 5,629 Commercial and industrial 1,158 164 (127 ) (50 ) 31 1,176 984 159 (10 ) 11 1,144 Municipal 12 — 18 — — 30 30 (1 ) — — 29 Consumer 56 — 37 (24 ) 12 81 81 14 (45 ) 13 63 Unallocated 438 — 250 — — 688 563 (47 ) — — 516 Totals $ 7,831 $ 663 $ 445 ($ 98 ) $ 46 $ 8,887 $ 6,776 $ 793 ($ 215 ) $ 27 $ 7,381
Composition of loans receivable and allowance for loan losses	(in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance June 30, 2019 Residential 1-4 family $ 329,847 $ 1,902 $ 5,632 $ 172 $ 335,479 $ 2,074 Residential 5+ multifamily 36,160 495 988 — 37,148 495 Construction of residential 1-4 family 12,553 79 — — 12,553 79 Home equity lines of credit 34,105 223 526 1 34,631 224 Residential real estate 412,665 2,699 7,146 173 419,811 2,872 Commercial 284,145 3,591 3,801 186 287,946 3,777 Construction of commercial 10,175 127 — — 10,175 127 Commercial real estate 294,320 3,718 3,801 186 298,121 3,904 Farm land 3,510 47 204 — 3,714 47 Vacant land 7,865 87 185 2 8,050 89 Real estate secured 718,360 6,551 11,336 361 729,696 6,912 Commercial and industrial 163,349 1,176 138 — 163,487 1,176 Municipal 19,782 30 — — 19,782 30 Consumer 5,125 46 41 35 5,166 81 Unallocated allowance — 688 — — — 688 Totals $ 906,616 $ 8,491 $ 11,515 $ 396 $ 918,131 $ 8,887 (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	June 30, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 895,151 $ 7,328 $ — $ — $ 895,151 $ 7,328 Potential problem loans 1 11,465 475 — — 11,465 475 Impaired loans — — 11,515 396 11,515 396 Unallocated allowance — 688 — — — 688 Totals $ 906,616 $ 8,491 $ 11,515 $ 396 $ 918,131 $ 8,887 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 June 30, 2019 Residential $ 4,629 $ 4,985 $ 3,032 $ 172 $ 66 $ 1,991 $ 2,659 $ 3,299 $ 13 Home equity lines of credit 43 43 45 1 1 483 575 442 — Residential real estate 4,672 5,028 3,077 173 67 2,474 3,234 3,741 13 Commercial 2,565 2,571 2,239 186 51 1,236 2,519 2,287 27 Construction of commercial — — 143 — — — 3 72 — Farm land — — — — — 204 428 211 — Vacant land 42 42 42 2 1 143 163 145 5 Real estate secured 7,279 7,641 5,501 361 119 4,057 6,347 6,456 45 Commercial and industrial 3 3 — — — 135 236 395 3 Consumer 41 41 6 35 — — — 6 — Totals $ 7,323 $ 7,685 $ 5,507 $ 396 $ 119 $ 4,192 $ 6,583 $ 6,857 $ 48 Note: The income recognized is for the six month period ended June 30, 2019. Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized June 30, 2018 Residential $ 3,331 $ 3,382 $ 3,965 $ 117 $ 57 $ 3,901 $ 4,936 $ 2,976 $ 63 Home equity lines of credit 47 47 47 2 1 60 113 63 — Residential real estate 3,378 3,429 4,012 119 58 3,961 5,049 3,039 63 Commercial 1,818 1,843 2,026 143 30 3,459 4,941 3,027 43 Construction of commercial — — 15 — — 362 386 348 3 Farm land — — — — — 230 443 240 — Vacant land 43 43 44 3 1 151 173 153 5 Real estate secured 5,239 5,315 6,097 265 89 8,163 10,992 6,807 114 Commercial and industrial — — 74 — — 508 607 439 1 Consumer — — — — — — 4 — — Totals $ 5,239 $ 5,315 $ 6,171 $ 265 $ 89 $ 8,671 $ 11,603 $ 7,246 $ 115 Note: The income recognized is for the six month period ended June 30, 2018.

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Assets and liabilities as well as the costs of operating and financial leases	($ in thousands, except lease term and discount rate) Classification June 30, 2019 Assets Operating Other assets $ 1,457 Finance Bank premises and equipment 1 2,740 Total Leased Assets $ 4,197 Liabilities Operating Other liabilities $ 1,457 Finance Finance lease 3,011 Total lease liabilities $ 4,468 1 Lease cost Classification Six months ended June 30, 2019 Three months ended June 30, 2019 Operating leases Premises and equipment $ 123 $ 61 Finance leases: Amortization of leased assets Premises and equipment 120 47 Interest on finance leases Interest expense 92 46 Total lease cost $ 335 $ 154 Weighted Average Remaining Lease Term Operating leases 8.6 years Financing leases 13.1 years Weighted Average Discount Rate 1 Operating leases 3.70% Financing leases 6.20% 1
Present value of the net minimum lease payments	Future minimum lease payments (in thousands) Operating Leases Finance Leases 2019 $ 123 $ 168 2020 246 336 2021 228 342 2022 199 345 2023 148 347 Thereafter 782 2,953 Total future minimum lease payments 1,726 4,491 Less amount representing interest (269 ) (1,480 ) Total present value of net future minimum lease payments $ 1,457 $ 3,011

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 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) June 30, 2019 December 31, 2018 Residential mortgage loans serviced for others $ 106,868 $ 111,378 Fair value of mortgage servicing rights 818 951
Changes in mortgage servicing rights	Three months ended Six months ended Periods ended June 30, (in thousands) 2019 2018 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 221 $ 228 $ 228 $ 233 Originated 1 — 5 7 Amortization (1) (13 ) (11 ) (24 ) (23 ) Balance, end of period $ 209 $ 217 $ 209 $ 217 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	6 Months Ended
	Jun. 30, 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) June 30, 2019 December 31, 2018 Securities available-for-sale (at fair value) $ 70,737 $ 80,991 Loans receivable (at book value) 316,252 328,674 Total pledged assets $ 386,989 $ 409,665

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Computation of earnings per share	Three months ended Six months ended Periods ended June 30, (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 2,703 $ 1,899 $ 5,137 $ 3,915 Less: Undistributed earnings allocated to participating securities (32 ) (22 ) (58 ) (42 ) Net income allocated to common stock $ 2,671 $ 1,877 $ 5,079 $ 3,873 Weighted average common shares issued 2,813 2,794 2,810 2,790 Less: Unvested restricted stock awards (33 ) (32 ) (31 ) (30 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,780 2,762 2,779 2,760 Add: Dilutive effect of stock options, unvested restricted stock awards and units 20 17 16 20 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,800 2,779 2,795 2,780 Earnings per common share (basic) $ 0.96 $ 0.68 $ 1.83 $ 1.40 Earnings per common share (diluted) $ 0.95 $ 0.68 $ 1.82 $ 1.39

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2019 Total Capital (to risk-weighted assets) $ 109,272 12.57 % $ 69,539 8.0 % $ 91,270 10.5 % $ 86,294 10.0 % Tier 1 Capital (to risk-weighted assets) 100,293 11.54 52,154 6.0 73,885 8.5 69,539 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 100,293 11.54 39,116 4.5 60,847 7.0 56,500 6.5 Tier 1 Capital (to average assets) $ 100,293 9.10 44,090 4.0 44,090 4.0 55,113 5.0 December 31, 2018 Total Capital (to risk-weighted assets) $ 104,013 12.09 % $ 68,848 8.0 % $ 90,362 10.5 % $ 86,059 10.0 % Tier 1 Capital (to risk-weighted assets) 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) 96,092 11.17 38,727 4.5 60,242 7.0 55,939 6.5 Tier 1 Capital (to average assets) $ 96,092 8.83 43,527 4.0 43,527 4.0 54,409 5.0

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,932 $ — $ 4,932 Municipal bonds — 20,623 — 20,623 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 39,723 — 39,723 Collateralized mortgage obligations: U.S. Government agencies — 30,530 — 30,530 Corporate bonds — 4,341 — 4,341 Securities available-for-sale $ — $ 100,149 $ — $ 100,149 CRA mutual funds 869 — — 869 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 2,872 $ 2,872 Other real estate owned $ — $ — $ 401 $ 401 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 June 30, 2019 Financial Assets Cash and cash equivalents $ 48,513 $ 48,513 $ 48,513 $ — $ — Securities available-for-sale, net 100,149 100,149 — 100,149 — CRA mutual fund 869 869 869 — — Federal Home Loan Bank of Boston stock 2,839 2,839 2,839 — — Loans held-for-sale 403 403 — — 403 Loans receivable, net 910,573 910,149 — — 910,149 Accrued interest receivable 3,439 3,439 3,439 — — Cash surrender value of life insurance policies 15,355 15,355 15,355 — — Financial Liabilities Demand (non-interest-bearing) $ 231,019 $ 231,019 $ — $ 231,019 $ — Demand (interest-bearing) 156,687 156,687 — 156,687 — Money market 231,987 231,987 — 231,987 — Savings and other 158,809 158,809 — 158,809 — Certificates of deposit 172,221 172,865 — 172,865 — Deposits $ 950,723 $ 951,397 $ — $ 951,397 $ — Repurchase agreements 6,308 6,308 — 6,308 — FHLBB advances 32,769 33,057 — 33,057 — Subordinated debt 9,847 10,121 10,121 — Note payable 263 269 — 269 — Capital lease liability 3,011 3,225 — 3,225 Accrued interest payable 576 576 576 — — December 31, 2018 Financial Assets Cash and cash equivalents $ 58,445 $ 58,445 $ 58,445 $ — $ — Securities available-for-sale, net 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	Jun. 30, 2019	Dec. 31, 2018
Amortized cost basis (1)
Available-for-sale
U.S. Government Agency notes	$ 4,771	$ 7,590
Municipal bonds	20,205	5,334
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	39,158	57,837
Collateralized mortgage obligations, U.S. Government Agencies	29,925	17,835
Corporate bonds	4,250	3,500
Total securities available-for-sale	98,309	92,096
CRA mutual funds	869	836
Non-marketable securities
Federal Home Loan Bank of Boston stock	2,839	4,496
Gross unrealized gains
Available-for-sale
U.S. Government Agency notes	163	83
Municipal bonds	430	45
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	585	170
Collateralized mortgage obligations, U.S. Government Agencies	606	85
Corporate bonds	91	76
Total securities available-for-sale	1,875	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	12
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	20	561
Collateralized mortgage obligations, U.S. Government Agencies	1	173
Corporate bonds
Total securities available-for-sale	35	737
CRA mutual funds
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Government Agency notes	4,932	7,670
Municipal bonds	20,623	5,379
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	39,723	57,446
Collateralized mortgage obligations, U.S. Government Agencies	30,530	17,747
Corporate bonds	4,341	3,576
Total securities available-for-sale	100,149	91,818
CRA mutual funds	869	836
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 2,839	$ 4,496

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Less Than 12 Months, Fair value
Available-for-sale
U.S. Government Agency notes		$ 34
Municipal bonds	4,679
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	6,134	13,063
Collateralized mortgage obligations: U.S. Government agencies
Total temporarily impaired securities	10,813	13,097
Less Than 12 Months, Unrealized losses
Available-for-sale
U.S. Government Agency notes
Municipal bonds	12
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	14	175
Collateralized mortgage obligations: U.S. Government agencies
Total temporarily impaired securities	26	175
12 Months or Longer, Fair value
Available-for-sale
U.S. Government Agency notes	336	532
Municipal bonds
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	729	26,777
Collateralized mortgage obligations: U.S. Government agencies	1,616	8,281
Total temporarily impaired securities	2,681	35,590
12 Months or Longer, 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	6	386
Collateralized mortgage obligations: U.S. Government agencies	1	173
Total temporarily impaired securities	9	562
Total, Fair value
Available-for-sale
U.S. Government Agency notes	336	566
Municipal bonds	4,679
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	6,863	39,840
Collateralized mortgage obligations: U.S. Government agencies	1,616	8,281
Total temporarily impaired securities	13,494	48,687
Total, Unrealized losses
Available-for-sale
U.S. Government Agency notes	2	3
Municipal bonds	12
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	20	561
Collateralized mortgage obligations: U.S. Government agencies	1	173
Total temporarily impaired securities	$ 35	$ 737

SECURITIES - Amortized cost, fa

SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
U.S. Government agency notes - Within 1 year
Amortized cost	$ 22
Fair value	$ 22
Yield	3.79%
U.S. Government agency notes - After 1 year but within 5 years
Amortized cost	$ 359
Fair value	$ 358
Yield	3.60%
U.S. Government agency notes - After 5 years but within 10 years
Amortized cost	$ 4,390
Fair value	$ 4,552
Yield	3.36%
U.S. Government agency notes - Total
Amortized cost	$ 4,771
Fair value	$ 4,932
Yield	3.38%
Municipal bonds - Within 1 year
Amortized cost	$ 231
Fair value	$ 231
Yield	2.44%
Municipal bonds - After 10 years
Amortized cost	$ 19,974
Fair value	$ 20,392
Yield	3.66%
Municipal bonds - Total
Amortized cost	$ 20,205
Fair value	$ 20,623
Yield	3.65%
Mortgage-backed securities and Collateralized mortgage obligations - U.S. Government agencies
Amortized cost	$ 69,083
Fair value	$ 70,253
Yield	2.85%
Corporate bonds - After 5 years but within 10 years
Amortized cost	$ 4,250
Fair value	$ 4,341
Yield	5.43%
Fair value
Amortized cost	$ 98,309
Fair value	$ 100,149
Yield	3.03%

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Sales of securities available-for-sale	$ 27,200	$ 8,400	$ 28,170	$ 8,410
Pre-tax gain on sale of securities available-for-sale	281	16	272	16
Related tax expense on sale of securities available-for-sale	$ 59	$ 3	$ 57	$ 3

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loans receivable, net	$ 910,573	$ 909,279
Total
Residential 1-4 family	335,479	345,862
Residential 5+ multifamily	37,148	36,510
Construction of residential 1-4 family	12,553	12,041
Home equity lines of credit	34,631	34,433
Residential real estate	419,811	428,846
Commercial	287,946	283,599
Construction of commercial	10,175	8,976
Commercial real estate	298,121	292,575
Farm land	3,714	4,185
Vacant land	8,050	8,322
Real estate secured	729,696	733,928
Commercial and industrial	163,487	162,905
Municipal	19,782	14,344
Consumer	5,166	4,512
Loans receivable, gross	918,131	915,689
Deferred loan origination fees and costs, net	1,329	1,421
Allowance for loan losses	(8,887)	(7,831)
Loans receivable, net	910,573	909,279
Loans held-for-sale
Residential 1-4 family	$ 403

LOANS - Composition of loans _2

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Pass
Residential 1-4 family	$ 326,478	$ 337,520
Residential 5+ multifamily	35,282	34,726
Construction of residential 1-4 family	12,553	12,041
Home equity lines of credit	33,819	33,728
Residential real estate	408,132	418,015
Commercial	268,152	270,461
Construction of commercial	9,929	8,482
Commercial real estate	278,081	278,943
Farm land	1,974	3,969
Vacant land	7,985	8,253
Real estate secured	696,172	709,180
Commercial and industrial	160,622	159,127
Municipal	19,782	14,344
Consumer	5,121	4,502
Loans receivable, gross	881,697	887,153
Special mention
Residential 1-4 family	4,079	4,281
Residential 5+ multifamily	105	784
Construction of residential 1-4 family
Home equity lines of credit	329	265
Residential real estate	4,513	5,330
Commercial	11,733	4,530
Construction of commercial
Commercial real estate	11,733	4,530
Farm land
Vacant land	65	69
Real estate secured	16,311	9,929
Commercial and industrial	973	2,672
Municipal
Consumer	4	10
Loans receivable, gross	17,288	12,611
Substandard
Residential 1-4 family	4,922	4,061
Residential 5+ multifamily	1,761	1,000
Construction of residential 1-4 family
Home equity lines of credit	483	440
Residential real estate	7,166	5,501
Commercial	7,988	8,608
Construction of commercial	246	494
Commercial real estate	8,234	9,102
Farm land	1,740	216
Vacant land
Real estate secured	17,140	14,819
Commercial and industrial	1,892	1,106
Municipal
Consumer	41
Loans receivable, gross	19,073	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	73
Construction of commercial
Commercial real estate	73
Farm land
Vacant land
Real estate secured	73
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	73
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	335,479	345,862
Residential 5+ multifamily	37,148	36,510
Construction of residential 1-4 family	12,553	12,041
Home equity lines of credit	34,631	34,433
Residential real estate	419,811	428,846
Commercial	287,946	283,599
Construction of commercial	10,175	8,976
Commercial real estate	298,121	292,575
Farm land	3,714	4,185
Vacant land	8,050	8,322
Real estate secured	729,696	733,928
Commercial and industrial	163,487	162,905
Municipal	19,782	14,344
Consumer	5,166	4,512
Loans receivable, gross	$ 918,131	$ 915,689

LOANS - Composition of loans _3

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current
Residential 1-4 family	$ 333,051	$ 342,881
Residential 5+ multifamily	36,287	35,648
Construction of residential 1-4 family	12,553	12,041
Home equity lines of credit	33,911	33,806
Residential real estate	415,802	424,376
Commercial	286,726	281,053
Construction of commercial	10,175	8,835
Commercial real estate	296,901	289,888
Farm land	3,517	4,185
Vacant land	8,008	8,280
Real estate secured	724,228	726,729
Commercial and industrial	163,338	162,507
Municipal	19,782	14,344
Consumer	5,163	4,504
Loans receivable, gross	912,511	908,084
Past due 30-59 days
Residential 1-4 family	806	1,100
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	208	235
Residential real estate	1,014	1,335
Commercial	935	264
Construction of commercial
Commercial real estate	935	264
Farm land	197
Vacant land	42	42
Real estate secured	2,188	1,641
Commercial and industrial	47
Municipal
Consumer	3	2
Loans receivable, gross	2,238	1,643
Past due 60-89 days
Residential 1-4 family	481	521
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	153	33
Residential real estate	634	554
Commercial	68	240
Construction of commercial
Commercial real estate	68	240
Farm land
Vacant land
Real estate secured	702	794
Commercial and industrial	99	38
Municipal
Consumer		6
Loans receivable, gross	801	838
Past due 90-179 days
Residential 1-4 family	1,141
Residential 5+ multifamily		633
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	1,141	633
Commercial	73	833
Construction of commercial		141
Commercial real estate	73	974
Farm land
Vacant land
Real estate secured	1,214	1,607
Commercial and industrial	3
Municipal
Consumer
Loans receivable, gross	1,217	1,607
Past due 180 days and over
Residential 1-4 family		1,360
Residential 5+ multifamily	861	229
Construction of residential 1-4 family
Home equity lines of credit	359	359
Residential real estate	1,220	1,948
Commercial	144	1,209
Construction of commercial
Commercial real estate	144	1,209
Farm land
Vacant land
Real estate secured	1,364	3,157
Commercial and industrial		360
Municipal
Consumer
Loans receivable, gross	1,364	3,517
Past due 30 days and over
Residential 1-4 family	2,428	2,981
Residential 5+ multifamily	861	862
Construction of residential 1-4 family
Home equity lines of credit	720	627
Residential real estate	4,009	4,470
Commercial	1,220	2,546
Construction of commercial		141
Commercial real estate	1,220	2,687
Farm land	197
Vacant land	42	42
Real estate secured	5,468	7,199
Commercial and industrial	149	398
Municipal
Consumer	3	8
Loans receivable, gross	5,620	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
Municipal
Consumer
Loans receivable, gross		795
Non-accrual
Residential 1-4 family	2,402	2,092
Residential 5+ multifamily	988	1,000
Construction of residential 1-4 family
Home equity lines of credit	483	411
Residential real estate	3,873	3,503
Commercial	941	1,388
Construction of commercial		252
Commercial real estate	941	1,640
Farm land	204	216
Vacant land
Real estate secured	5,018	5,359
Commercial and industrial	3	360
Municipal
Consumer	41
Loans receivable, gross	$ 5,062	$ 5,719

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Residential 1-4 family
Beginning balance	$ 1,980	$ 1,982	$ 2,149	$ 1,862
Acquisition Discount Transfer			10
Provision	95	24	(85)	154
Charge-offs	(1)		(1)	(10)
Recoveries		1	1	1
Ending balance	2,074	2,007	2,074	2,007
Residential 5+ multifamily
Beginning balance	466	216	413	155
Acquisition Discount Transfer
Provision	29	42	82	103
Charge-offs
Recoveries
Ending balance	495	258	495	258
Construction of residential 1-4 family
Beginning balance	77	74	83	75
Acquisition Discount Transfer
Provision	2	8	(4)	7
Charge-offs
Recoveries
Ending balance	79	82	79	82
Home equity lines of credit
Beginning balance	209	233	219	236
Acquisition Discount Transfer			1
Provision	15	1	4	(3)
Charge-offs
Recoveries				1
Ending balance	224	234	224	234
Residential real estate
Beginning balance	2,732	2,505	2,864	2,328
Acquisition Discount Transfer			11
Provision	141	75	(3)	236
Charge-offs	(1)		(1)	(10)
Recoveries		1	1	2
Ending balance	2,872	2,581	2,872	2,581
Commercial
Beginning balance	3,803	2,666	3,048	2,547
Acquisition Discount Transfer			488
Provision	(13)	259	262	377
Charge-offs	(14)	(149)	(23)	(150)
Recoveries	1		2	1
Ending balance	3,777	2,775	3,777	2,775
Construction of commercial
Beginning balance	143	93	122	80
Acquisition Discount Transfer
Provision	(16)	9	5	22
Charge-offs
Recoveries
Ending balance	127	102	127	102
Commercial real estate
Beginning balance	3,946	2,759	3,170	2,627
Acquisition Discount Transfer			488
Provision	(29)	268	267	399
Charge-offs	(14)	(149)	(23)	(150)
Recoveries	1		2	1
Ending balance	3,904	2,877	3,904	2,877
Farm land
Beginning balance	47	33	33	32
Acquisition Discount Transfer
Provision		4	14	5
Charge-offs
Recoveries
Ending balance	47	37	47	37
Vacant land
Beginning balance	89	131	100	131
Acquisition Discount Transfer
Provision		3	(11)	3
Charge-offs
Recoveries
Ending balance	89	134	89	134
Real estate secured
Beginning balance	6,814	5,428	6,167	5,118
Acquisition Discount Transfer			499
Provision	112	350	267	668
Charge-offs	(15)	(149)	(24)	(160)
Recoveries	1	1	3	3
Ending balance	6,912	5,629	6,912	5,629
Commercial and industrial
Beginning balance	1,233	938	1,158	984
Acquisition Discount Transfer			164
Provision	(67)	201	(127)	159
Charge-offs	(19)		(50)	(10)
Recoveries	29	5	31	11
Ending balance	1,176	1,144	1,176	1,144
Municipal
Beginning balance	14	30	12	30
Acquisition Discount Transfer
Provision	16	(1)	18	(1)
Charge-offs
Recoveries
Ending balance	30	29	30	29
Consumer
Beginning balance	51	61	56	81
Acquisition Discount Transfer
Provision	40	3	37	14
Charge-offs	(18)	(6)	(24)	(45)
Recoveries	8	5	12	13
Ending balance	81	63	81	63
Unallocated
Beginning balance	638	601	438	563
Acquisition Discount Transfer
Provision	50	(86)	250	(47)
Charge-offs
Recoveries
Ending balance	688	516	688	516
Totals
Beginning balance	8,750	7,058	7,831	6,776
Acquisition Discount Transfer			663
Provision	151	467	445	793
Charge-offs	(52)	(155)	(98)	(215)
Recoveries	38	11	46	27
Ending balance	$ 8,887	$ 7,381	$ 8,887	$ 7,381

LOANS - Composition of loans _4

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Totals	$ 910,573	$ 909,279
Collectively evaluated Loans
Residential 1-4 family	329,847	340,946
Residential 5+ multifamily	36,160	34,835
Construction of residential 1-4 family	12,553	12,041
Home equity lines credit	34,105	33,975
Residential real estate	412,665	421,797
Commercial	284,145	279,389
Construction of commercial	10,175	8,622
Commercial real estate	294,320	288,011
Farm land	3,510	3,969
Vacant land	7,865	8,132
Real estate secured	718,360	721,909
Commercial and industrial	163,349	162,404
Municipal	19,782	14,344
Consumer	5,125	4,512
Unallocated allowance
Totals	906,616	903,169
Collectively evaluated Allowance
Residential 1-4 family	1,902	2,042
Residential 5+ multifamily	495	413
Construction of residential 1-4 family	79	83
Home equity lines credit	223	213
Residential real estate	2,699	2,751
Commercial	3,591	2,907
Construction of commercial	127	106
Commercial real estate	3,718	3,013
Farm land	47	33
Vacant land	87	98
Real estate secured	6,551	5,895
Commercial and industrial	1,176	1,158
Municipal	30	12
Consumer	46	56
Unallocated allowance	688	438
Totals	8,491	7,559
Individually evaluated Loans
Residential 1-4 family	5,632	4,916
Residential 5+ multifamily	988	1,675
Construction of residential 1-4 family
Home equity lines credit	526	458
Residential real estate	7,146	7,049
Commercial	3,801	4,210
Construction of commercial		354
Commercial real estate	3,801	4,564
Farm land	204	216
Vacant land	185	190
Real estate secured	11,336	12,019
Commercial and industrial	138	501
Municipal
Consumer	41
Unallocated allowance
Totals	11,515	12,520
Individually evaluated Allowance
Residential 1-4 family	172	107
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit	1	6
Residential real estate	173	113
Commercial	186	141
Construction of commercial		16
Commercial real estate	186	157
Farm land
Vacant land	2	2
Real estate secured	361	272
Commercial and industrial
Municipal
Consumer	35
Unallocated allowance
Totals	396	272
Total portfolio Loans
Residential 1-4 family	335,479	345,862
Residential 5+ multifamily	37,148	36,510
Construction of residential 1-4 family	12,553	12,041
Home equity lines credit	34,631	34,433
Residential real estate	419,811	428,846
Commercial	287,946	283,599
Construction of commercial	10,175	8,976
Commercial real estate	298,121	292,575
Farm land	3,714	4,185
Vacant land	8,050	8,322
Real estate secured	729,696	733,928
Commercial and industrial	163,487	162,905
Municipal	19,782	14,344
Consumer	5,166	4,512
Unallocated allowance
Totals	918,131	915,689
Total portfolio Allowance
Residential 1-4 family	2,074	2,149
Residential 5+ multifamily	495	413
Construction of residential 1-4 family	79	83
Home equity lines credit	224	219
Residential real estate	2,872	2,864
Commercial	3,777	3,048
Construction of commercial	127	122
Commercial real estate	3,904	3,170
Farm land	47	33
Vacant land	89	100
Real estate secured	6,912	6,167
Commercial and industrial	1,176	1,158
Municipal	30	12
Consumer	81	56
Unallocated allowance	688	438
Totals	$ 8,887	$ 7,831

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Totals	$ 910,573	$ 909,279
Collectively evaluated Loans
Performing loans	895,151	895,527
Potential problem loans	11,465	7,642
Impaired loans
Unallocated allowance
Totals	906,616	903,169
Collectively evaluated Allowance
Performing loans	7,328	6,989
Potential problem loans	475	132
Impaired loans
Unallocated allowance	688	438
Totals	8,491	7,559
Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	11,515	12,520
Unallocated allowance
Totals	11,515	12,520
Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	396	272
Unallocated allowance
Totals	396	272
Total portfolio Loans
Performing loans	895,151	895,527
Potential problem loans	11,465	7,642
Impaired loans	11,515	12,520
Unallocated allowance
Totals	918,131	915,689
Total portfolio Allowance
Performing loans	7,328	6,989
Potential problem loans	475	132
Impaired loans	396	272
Unallocated allowance	688	438
Totals	$ 8,887	$ 7,831

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Totals	$ 910,573	$ 909,279
Impaired loans with specific allowance - Loan balance - Book
Residential	4,629		$ 3,331
Home equity lines of credit	43		47
Residential real estate	4,672		3,378
Commercial	2,565		1,818
Construction of commercial
Farm land
Vacant land	42		43
Real estate secured	7,279		5,239
Commercial and industrial	3
Consumer	41
Totals	7,323		5,239
Impaired loans with specific allowance - Loan balance - Note
Residential	4,985		3,382
Home equity lines of credit	43		47
Residential real estate	5,028		3,429
Commercial	2,571		1,843
Construction of commercial
Farm land
Vacant land	42		43
Real estate secured	7,641		5,315
Commercial and industrial	3
Consumer	41
Totals	7,685		5,315
Impaired loans with specific allowance - Loan balance - Average
Residential	3,032		3,965
Home equity lines of credit	45		47
Residential real estate	3,077		4,012
Commercial	2,239		2,026
Construction of commercial	143		15
Farm land
Vacant land	42		44
Real estate secured	5,501		6,097
Commercial and industrial			74
Consumer	6
Totals	5,507		6,171
Impaired loans with specific allowance - Specific allowance
Residential	172		117
Home equity lines of credit	1		2
Residential real estate	173		119
Commercial	186		143
Construction of commercial
Farm land
Vacant land	2		3
Real estate secured	361		265
Commercial and industrial
Consumer	35
Totals	396		265
Impaired loans with specific allowance - Income recognized
Residential	66		57
Home equity lines of credit	1		1
Residential real estate	67		58
Commercial	51		30
Construction of commercial
Farm land
Vacant land	1		1
Real estate secured	119		89
Commercial and industrial
Consumer
Totals	119		89
Impaired loans with no specific allowance - Loan balance - Book
Residential	1,991		3,901
Home equity lines of credit	483		60
Residential real estate	2,474		3,961
Commercial	1,236		3,459
Construction of commercial			362
Farm land	204		230
Vacant land	143		151
Real estate secured	4,057		8,163
Commercial and industrial	135		508
Consumer
Totals	4,192		8,671
Impaired loans with no specific allowance - Loan balance - Note
Residential	2,659		4,936
Home equity lines of credit	575		113
Residential real estate	3,234		5,049
Commercial	2,519		4,941
Construction of commercial	3		386
Farm land	428		443
Vacant land	163		173
Real estate secured	6,347		10,992
Commercial and industrial	236		607
Consumer			4
Totals	6,583		11,603
Impaired loans with no specific allowance - Loan balance - Average
Residential	3,299		2,976
Home equity lines of credit	442		63
Residential real estate	3,741		3,039
Commercial	2,287		3,027
Construction of commercial	72		348
Farm land	211		240
Vacant land	145		153
Real estate secured	6,456		6,807
Commercial and industrial	395		439
Consumer	6
Totals	6,857		7,246
Impaired loans with no specific allowance - Income recognized
Residential	13		63
Home equity lines of credit
Residential real estate	13		63
Commercial	27		43
Construction of commercial			3
Farm land
Vacant land	5		5
Real estate secured	45		114
Commercial and industrial	3		1
Consumer
Totals	$ 48		$ 115

LOANS (Details Narrative)

LOANS (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leases - Assets
Operating - Other assets	$ 1,457		$ 1,457
Finance - Bank premises and equipment	2,740		2,740
Total Leased Assets	4,197		4,197
Leases - Liabilities
Operating - Other liabilities	1,457		1,457
Finance - Finance lease	3,011		3,011
Total lease liabilities	4,468		4,468
Lease cost
Operating leases - Premises and equipment	61		123
Finance leases: Amortization of leased assets - Premises and equipment	47		120
Finance leases: Interest on finance leases - Interest expense	46	$ 48	92	$ 83
Total lease cost	$ 154		$ 335
Weighted Average Remaining Lease Term
Operating leases	8 years 7 months 6 days		8 years 7 months 6 days
Financing leases	13 years 1 month 6 days		13 years 1 month 6 days
Weighted Average Discount Rate
Operating leases	3.70%		3.70%
Financing leases	6.20%		6.20%

LEASES - Present value of the n

LEASES - Present value of the net minimum lease payments (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases
2019	$ 123
2020	246
2021	228
2022	199
2023	148
Thereafter	782
Total future minimum lease payments	1,726
Less amount representing interest	(269)
Total present value of net future minimum lease payments	1,457
Finance Leases
2019	168
2020	336
2021	342
2022	345
2023	347
Thereafter	2,953
Total future minimum lease payments	4,491
Less amount representing interest	(1,480)
Total present value of net future minimum lease payments	$ 3,011

LEASES (Details Narrative)

LEASES (Details Narrative) $ in Thousands	Jun. 30, 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	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Residential mortgage loans serviced for others	$ 106,868	$ 111,378
Fair value of mortgage servicing rights	$ 818		$ 951

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Mortgage Servicing Rights
Balance, beginning of period	$ 221	$ 228
Originated	1
Amortization	(13)	(11)
Balance, end of period	209	217	$ 209	$ 217
Changes in mortgage servicing rights
Mortgage Servicing Rights
Balance, beginning of period			228	233
Originated			5	7
Amortization			(24)	(23)
Balance, end of period	$ 209	$ 217	$ 209	$ 217

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Pledged Assets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Securities available-for-sale (at fair value)	$ 70,737	$ 80,991
Loans receivable	316,252	328,674
Total pledged assets	$ 386,989	$ 409,665

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Jun. 30, 2019USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 63,400
Securities pledged to secure repurchase agreements	7,300
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 2,703	$ 1,899	$ 5,137	$ 3,915
Less: Undistributed earnings allocated to participating securities	(32)	(22)	(58)	(42)
Net income allocated to common stock	2,671	1,877	5,079	3,873
Weighted average common shares issued	2,813	2,794	2,810	2,790
Less: Unvested restricted stock awards	(33)	(32)	(31)	(30)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,780	2,762	2,779	2,760
Add: Dilutive effect of stock options	20	17	16	20
Weighted average common shares outstanding used to calculate diluted earnings per common share	$ 2,800	$ 2,779	$ 2,795	$ 2,780
Earnings per common share (basic)	$ 0.96	$ 0.68	$ 1.83	$ 1.40
Earnings per common share (diluted)	$ 0.95	$ 0.68	$ 1.82	$ 1.39

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) - Salisbury - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Total Capital (to risk-weighted assets)
Actual - Amount	$ 109,272	$ 104,013
Actual - Ratio	12.57%	12.09%
Minimum Capital Required For Capital Adequacy - Amount	$ 69,539	$ 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	$ 91,270	$ 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	$ 86,294	$ 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	$ 100,293	$ 96,092
Actual - Ratio	11.54%	11.17%
Minimum Capital Required For Capital Adequacy - Amount	$ 52,154	$ 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	$ 73,885	$ 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	$ 69,539	$ 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	$ 100,293	$ 96,092
Actual - Ratio	11.54%	11.17%
Minimum Capital Required For Capital Adequacy - Amount	$ 39,116	$ 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	$ 60,847	$ 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	$ 56,500	$ 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	$ 100,293	$ 96,092
Actual - Ratio	9.10%	8.30%
Minimum Capital Required For Capital Adequacy - Amount	$ 44,090	$ 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	$ 44,090	$ 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	$ 55,113	$ 54,409
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	5.00%	5.00%

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Equity [Abstract]
Risk-weighted assets	$ 869,200	$ 860,600

BENEFITS (Details Narrative)

BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Retirement Benefits [Abstract]
401(k) Plan contribution expense	$ 192	$ 238	$ 431	$ 520
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	27	(24)	48	2
Employee Stock Ownership Plan (ESOP)
ESOP expense	53	66	102	127
Other Retirement Plans
Expenses for Non-Qualified Deferred Compensation Plan	$ 29	$ 28	$ 58	$ 57
Grants of Restricted Stock and Options
Stock options exercised by former Riverside Bank executives, shares	2,025	3,350
Stock options exercised by former Riverside Bank executives, price per share	$ 17.04	$ 31.11
Shares of restricted stock granted pursuant to LTIP	6,800		6,800
Expense related to stock based compensation	$ 23		$ 23

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets at fair value
Assets at fair value on a recurring basis
Assets at fair value on a recurring basis	$ 4,932
U.S. Government Agency notes	20,623	$ 7,670
Municipal bonds		5,379
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	39,723	57,446
Collateralized mortgage obligations: U.S. Government agencies	30,530	17,747
Corporate bonds	4,341	3,576
Securities available-for-sale	100,149	91,818
CRA mutual funds	869	836
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	2,872	4,238
Other real estate owned	401	1,810
Fair Value Measurements Using - Level 1
Assets at fair value on a recurring basis
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	869	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
Assets at fair value on a recurring basis	4,932
U.S. Government Agency notes	20,623	7,670
Municipal bonds		5,379
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	39,723	57,446
Collateralized mortgage obligations: U.S. Government agencies	30,530	17,747
Corporate bonds	4,341	3,576
Securities available-for-sale	100,149	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
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	2,872	4,238
Other real estate owned	$ 401	$ 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	Jun. 30, 2019	Dec. 31, 2018
Carrying value
Financial Assets
Cash and cash equivalents	$ 48,513	$ 58,445
Securities available-for-sale	100,149	91,818
CRA mutual fund	869	836
Federal Home Loan Bank of Boston stock	2,839	4,496
Loans held-for-sale	403
Loans receivable, net	910,573	909,279
Accrued interest receivable	3,439	3,148
Cash surrender value of life insurance policies	15,355	14,438
Financial Liabilities
Demand (non-interest-bearing)	231,019	228,448
Demand (interest-bearing)	156,687	153,586
Money market	231,987	204,219
Savings and other	158,809	178,807
Certificates of deposit	172,221	161,679
Deposits	950,723	926,739
Repurchase agreements	6,308	4,104
FHLBB advances	32,769	67,154
Subordinated debt	9,847	9,835
Note payable	263	280
Capital lease liability	3,011	3,081
Accrued interest payable	576	237
Estimated fair value
Financial Assets
Cash and cash equivalents	48,513	58,445
Securities available-for-sale	100,149	91,818
CRA mutual fund	869	836
Federal Home Loan Bank of Boston stock	2,839	4,496
Loans held-for-sale	403
Loans receivable, net	910,149	886,222
Accrued interest receivable	3,439	3,148
Cash surrender value of life insurance policies	15,355	14,438
Financial Liabilities
Demand (non-interest-bearing)	231,019	228,448
Demand (interest-bearing)	156,687	153,586
Money market	231,987	204,219
Savings and other	158,809	178,807
Certificates of deposit	172,865	162,013
Deposits	951,397	927,073
Repurchase agreements	6,308	4,104
FHLBB advances	33,057	67,231
Subordinated debt	10,121	10,006
Note payable	269	288
Capital lease liability	3,225	3,339
Accrued interest payable	576	237
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	48,513	58,445
Securities available-for-sale
CRA mutual fund	869	836
Federal Home Loan Bank of Boston stock	2,839
Loans held-for-sale
Loans receivable, net
Accrued interest receivable	3,439
Cash surrender value of life insurance policies	15,355	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	10,121
Note payable
Capital lease liability
Accrued interest payable	576
Fair Value Measurements Using - Level 2
Financial Assets
Cash and cash equivalents
Securities available-for-sale	100,149	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)	231,019
Demand (interest-bearing)	156,687
Money market	231,987
Savings and other	158,809
Certificates of deposit	172,865
Deposits	951,397
Repurchase agreements	6,308
FHLBB advances	33,057
Subordinated debt
Note payable	269
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		4,496
Loans held-for-sale	403
Loans receivable, net	910,149	886,222
Accrued interest receivable		3,148
Cash surrender value of life insurance policies
Financial Liabilities
Demand (non-interest-bearing)		228,448
Demand (interest-bearing)		153,586
Money market		204,219
Savings and other		178,807
Certificates of deposit		162,013
Deposits		927,073
Repurchase agreements		4,104
FHLBB advances		67,231
Subordinated debt		10,006
Note payable		288
Capital lease liability	3,225	3,339
Accrued interest payable		$ 237

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Jul. 26, 2019$ / shares
Subsequent Events [Abstract]
Dividend declared	$ .28