Salisbury Bancorp (SAL) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 05, 2020
Document And Entity Information
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	0001060219
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		2,828,317
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 6,597	$ 7,406
Interest bearing demand deposits with other banks	32,665	19,479
Total cash and cash equivalents	39,262	26,885
Interest bearing Time Deposits with Financial Institutions	750	750
Securities
Available-for-sale at fair value	91,333	91,801
CRA mutual fund at fair value	900	882
Federal Home Loan Bank of Boston stock at cost	2,733	3,242
Loans held-for-sale	580	332
Loans receivable, net (allowance for loan losses: $10,618 and $8,895)	949,142	927,413
Other real estate owned		314
Bank premises and equipment, net	17,535	17,385
Goodwill	13,815	13,815
Intangible assets (net of accumulated amortization: $4,973 and $4,886)	908	995
Accrued interest receivable	3,437	3,415
Cash surrender value of life insurance policies	20,714	20,580
Deferred taxes	1,174	1,249
Other assets	3,468	3,390
Total Assets	1,145,751	1,112,448
Deposits
Demand (non-interest bearing)	243,491	237,852
Demand (interest bearing)	157,069	153,314
Money market	222,746	239,504
Savings and other	167,408	161,112
Certificates of deposit	174,906	127,724
Total deposits	965,620	919,506
Repurchase agreements	4,929	8,530
Federal Home Loan Bank of Boston advances	40,932	50,887
Subordinated debt	9,865	9,859
Note payable	237	246
Finance lease obligations	1,707	1,718
Accrued interest and other liabilities	6,318	8,047
Total Liabilities	1,029,608	998,793
Shareholders' Equity
Common stock - $.10 per share par value; Authorized: 5,000,000; Issued: 2,829,017 and 2,825,912; Outstanding: 2,829,017 and 2,825,912	283	283
Unearned compensation - restricted stock awards	(659)	(795)
Paid-in capital	44,566	44,490
Retained earnings	69,547	68,320
Accumulated other comprehensive income, net	2,406	1,357
Total Shareholders' Equity	116,143	113,655
Total Liabilities and Shareholders' Equity	$ 1,145,751	$ 1,112,448

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Allowance for loan losses, loans receivable	$ 10,618	$ 8,895
Accumulated amortization, intangible assets	$ 4,973	$ 4,886
Shareholders' Equity
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	5,000,000	5,000,000
Common stock, issued	2,829,017	2,825,912
Common stock, outstanding	2,829,017	2,825,912

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest and dividend income
Interest and fees on loans	$ 9,987	$ 9,934
Interest on debt securities
Taxable	455	621
Tax exempt	185	72
Other interest and dividends	91	227
Total interest and dividend income	10,718	10,854
Interest expense
Deposits	1,509	1,796
Repurchase agreements	7	3
Finance lease	36	46
Note payable	4	4
Subordinated Debt	156	156
Federal Home Loan Bank of Boston advances	219	412
Total interest expense	1,931	2,417
Net interest and dividend income	8,787	8,437
Provision for loan losses	1,706	294
Net interest and dividend income after provision for loan losses	7,081	8,143
Non-interest income
Trust and wealth advisory	1,030	906
Service charges and fees	905	920
Gains on sales of mortgage loans, net	61	7
Mortgage servicing, net	67	76
Gains on CRA mutual fund	14	11
Gains on sales and calls of available-for-sale securities, net	1	(9)
BOLI income and gains	134	79
Other	33	37
Total non-interest income	2,245	2,027
Non-interest expense
Salaries	2,850	2,993
Employee benefits	1,146	1,185
Premises and equipment	911	972
Data processing	540	509
Professional fees	628	535
OREO gains, losses and write-downs, net		52
Collections, OREO, and loan related	25	130
FDIC insurance	105	163
Marketing and community support	125	156
Amortization of intangibles	87	104
Other	519	412
Total non-interest expense	6,936	7,211
Income before income taxes	2,390	2,959
Income tax provision	343	525
Net income	2,047	2,434
Net income available to common shareholders	$ 2,013	$ 2,408
Basic earnings per common share	$ 0.72	$ 0.87
Diluted earnings per common share	0.72	0.86
Common dividends per share	$ 0.29	$ 0.28

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net income	$ 2,047	$ 2,434
Other comprehensive income
Net unrealized gains on securities available-for-sale	1,330	1,130
Reclassification of net realized (income) losses in net income	(1)	9
Unrealized gains on securities available-for-sale	1,329	1,139
Income tax expense	(280)	(239)
Unrealized gains on securities available-for-sale, net of tax	1,049	900
Comprehensive income	$ 3,096	$ 3,334

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 (loss) income	Total
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
Net income			2,434			2,434
Other comprehensive income, net of tax					900	900
Common stock dividends declared			(784)			(784)
Forfeiture of restricted stock, amount		(5)		5
Forfeiture of restricted stock, shares	(100)
Stock based compensation - restricted stock awards				100		100
Balance - Ending, amount at Mar. 31, 2019	$ 281	43,765	61,989	(606)	680	106,109
Balance - Ending, shares at Mar. 31, 2019	2,806,681
Balance - Beginning, amount at Dec. 31, 2019	$ 283	44,490	68,320	(795)	1,357	113,655
Balance - Beginning, shares at Dec. 31, 2019	2,825,912
Net income			2,047			2,047
Other comprehensive income, net of tax					1,049	1,049
Common stock dividends declared			(820)			(820)
Stock Options exercised, amount		53				53
Stock Options exercised, shares	3,105
Stock based compensation - restricted stock awards		23		136		159
Balance - Ending, amount at Mar. 31, 2020	$ 283	$ 44,566	$ 69,547	$ (659)	$ 2,406	$ 116,143
Balance - Ending, shares at Mar. 31, 2020	2,829,017

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating Activities
Net income	$ 2,047	$ 2,434
(Accretion), amortization and depreciation
Securities	105	12
Bank premises and equipment	355	410
Core deposit intangible	87	104
Modification fees on Federal Home Loan Bank of Boston advances	45	58
Subordinated debt issuance costs	6	6
Mortgage servicing rights	16	11
Fair value adjustment on loans		(64)
Fair value adjustment on deposits	(1)	(2)
(Gains) and losses, including write-downs
Gain on CRA mutual fund	(14)	(11)
(Gain) loss on securities available-for-sale, net		(9)
Gain on sales of loans, excluding capitalized servicing rights	(45)	(5)
Write-downs of other real estate owned		52
Provision for loan losses	1,706	294
Proceeds from loans sold	3,157	368
Loans originated for sale	(3,360)	(363)
Decrease in deferred loan origination fees and costs, net	33	88
Mortgage servicing rights originated	(33)	(4)
Increase in interest receivable	(22)	(263)
Deferred tax (benefit) expense	(205)	271
Decrease (increase) in prepaid expenses	18	(143)
Increase in cash surrender value of life insurance policies	(134)	(79)
Decrease in income tax receivable		137
(Increase) decrease in other assets	(78)	649
Decrease in accrued expenses	(2,969)	(1,628)
Increase in income tax payable	408
Increase in interest payable	219	341
(Increase) decrease in other liabilities	613	(142)
Stock based compensation - restricted stock awards	159	100
Net cash provided by operating activities	2,112	2,640
Investing Activities
Redemption of Federal Home Loan Bank of Boston stock	509	1,124
Purchases of securities available-for-sale	(2,729)	(9,391)
Proceeds from sales of securities		965
Reinvestment of CRA Mutual Fund	(4)	(5)
Proceeds from calls of securities available-for-sale	655
Proceeds from maturities/principal payments of securities available-for-sale	3,767	3,107
Loan originations and principle collections, net	(23,497)	(2,235)
Recoveries of loans previously charged off	29	7
Proceeds from sales of OREO	314	1,017
Purchase of life insurance (BOLI)		(750)
Capital expenditures	(505)	(47)
Net cash utilized by investing activities	(21,461)	(6,208)
Financing Activities
(Decrease) increase in deposit transaction accounts, net	(1,068)	4,551
Increase in time deposits, net	47,182	10,681
Decrease in securities sold under agreements to repurchase, net	(3,601)	(1,153)
Federal Home Loan Bank of Boston advances, net change in advances with maturity dates less than three months	(20,000)	(9,500)
Advances (principal payments) on Federal Home Loan Bank of Boston long term advances	10,000	(10,000)
Principal payments on note payable	(9)	(8)
Principal payments on finance lease obligations	(11)	(35)
Stock options exercised	53
Common stock dividends paid	(820)	(784)
Net cash provided by (utilized by) financing activities	31,726	(6,248)
Net increase (decrease) in cash and cash equivalents	12,377	(9,816)
Cash and cash equivalents, beginning of period	26,885	58,445
Cash and cash equivalents, end of period	39,262	48,629
Cash paid during period
Interest	1,662	2,014
Income taxes	140	81
Non-cash investing and financing activities
Adoption of new accounting principle - Other assets		1,552
Adoption of new accounting principle - Other liabilities		$ (1,552)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1 - BASIS OF PRESENTATION The interim (unaudited) consolidated financial statements of Salisbury Bancorp, Inc. ("Salisbury") include those of Salisbury and its wholly owned subsidiary, Salisbury Bank and Trust Company (the "Bank"). In the opinion of management, the interim unaudited consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary to present fairly the consolidated financial position of Salisbury and the consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for the interim periods presented. The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). In preparing the financial statements, management is required to make extensive use of estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairment of securities and impairment of goodwill and intangibles. Certain financial information, which is normally included in financial statements prepared in accordance with generally accepted accounting principles, but which is not required for interim reporting purposes, has been condensed or omitted. Operating results for the interim period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The accompanying condensed financial statements should be read in conjunction with the financial statements and notes thereto included in Salisbury's 2019 Annual Report on Form 10-K for the year ended December 31, 2019. 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. Risks and Uncertainties The outbreak of the COVID-19 pandemic (“virus” or “COVID-19”) has adversely impacted a broad range of industries in which the Bank's customers operate and could impair their ability to fulfill their financial obligations to the Bank. The spread of the outbreak has caused significant disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Bank operates. Salisbury proactively implemented many operational changes to protect its employees and customers, which included the closing of the lobbies of its branches to customers, implementing banking by appointment and requiring employees to work remotely or from different locations. Salisbury has experienced neither a significant interruption in service provided to its customers nor a material decline in business activity as a result of the virus. The Coronavirus Aid, Relief and Economic Security(“CARES”) Act was signed into law on March 27, 2020 as a legislative economic stimulus package. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to small businesses. If the economic shutdown to contain the virus continues for an extended period or is unsuccessful, the Bank could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full extent of the impact that the virus and an extended economic shutdown will have on Salisbury's operations, the Bank is disclosing the material items of which it is currently aware. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. 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. In November 2019, the FASB issued ASU 2019-10, which delayed the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for smaller reporting companies, although early adoption is permitted. Salisbury meets the definition of a smaller reporting company because its public float is less than $250 million. In November 2019, the FASB issued ASU 2019-11, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses” which clarified or addressed specific issues about certain aspects of the amendments in ASU 2016-13. The amendments in ASU 2019-11 clarified the following: (1) The allowance for credit losses for purchased financial assets with credit deterioration should include expected recoveries of amounts previously written off and expected to be written off by the entity and should not exceed the aggregate of amounts of the amortized cost basis previously written off and expected to be written off by an entity. In addition, the amendments clarify that when a method other than a discounted cash flow method is used to estimate expected credit losses, expected recoveries should not include any amounts that result in an acceleration of the noncredit discount. An entity may include increases in expected cashflows after acquisition; (2) Transition relief will be provided by permitting entities an accounting policy election to adjust the effective interest rate on existing troubled debt restructurings using prepayment assumptions on the date of adoption of Topic 326 rather than the prepayment assumptions in effect immediately before the restructuring; (3) Disclosure relief will be extended for accrued interest receivable balances to additional relevant disclosures involving amortized cost basis; (4) An entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing the financial asset to apply the practical expedient. The amendments clarify that an entity applying the practical expedient should estimate expected credit losses for any difference between the amount of the amortized cost basis that is greater than the fair value of the collateral securing the financial asset (that is, the unsecured portion of the amortized cost basis). An entity may determine that the expectation of nonpayment for the amount of the amortized cost basis equal to the fair value of the collateral securing the financial asset is zero. Upon adoption, Salisbury will apply the standards' provisions as a cumulative effect adjustment to retained earnings as of the first reporting period in which the guidance is effective. Salisbury anticipates that the adoption of ASU 2016-13 and related updates will impact the consolidated financial statements as it relates to the balance in the allowance for loan losses. Salisbury has engaged a third-party software vendor to model the allowance for loan and losses in conformance with this ASU. Salisbury will continue to refine this model and assess the impact to its 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. Entities should apply the guidance prospectively. On January 1, 2020, 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 2018-13, “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 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. On January, 1, 2020, the Bank adopted the new standard, which only revised disclosure requirements and did not have a material impact on Salisbury's Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting or Income Taxes.” The amendments in this Update simplify the accounting for income taxes by removing the following exceptions:1. Exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income) 2. Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment 3. Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary 4. Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this Update also simplify the accounting for income taxes by doing the following: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax. 2. Requiring that an entity evaluate when a step-up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. 3. Specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. 4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. 5. Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years; early adoption is permitted. Salisbury is currently evaluating the provisions of ASU 2019-12 to determine the potential impact the new standard will have on Salisbury's Consolidated Financial Statements. Other Regulatory Pronouncements On March 12, 2020 the Securities and Exchange Commission finalized amendments to the definitions of “accelerated” and “large accelerated filer”. The amendments increase the threshold criteria for meeting these categories and are effective on April 27, 2020 and apply to annual reports due on or after such effective date. Prior to these changes, Salisbury was designated as a “smaller reporting company” and an “accelerated” filer as it had more than $75 million in public float but less than $700 million at the end of Salisbury's most recent second quarter. The rule changed the definition of “accelerated filer” and expands the category of “non-accelerated filer” to include entities with public float of less than $700 million and less than $100 million in annual revenues. Salisbury expects to meet the new definition of non-accelerated filer while continuing to qualify as a “smaller reporting company”, and would no longer be considered an accelerated filer. The categorization of “accelerated” or “large accelerated filer” determines the requirement for a public company to obtain an auditor attestation of its internal control over financial reporting. Non-accelerated filers also have additional time to file quarterly and annual reports. All public companies are required to obtain and file annual financial statements audits as well as provide management's assertion on the effectiveness of internal controls over financial reporting, but the external auditor attestation of internal control over financial reporting is not required for non-accelerated filers. As Salisbury has total assets exceeding $1.0 billion, it remains subject to the rules of the Federal Deposit Insurance Corporation, which requires an auditor attestation of internal controls over the Bank's regulatory financial reporting. As such, other than additional time provided to file quarterly and annual reports, this amendment to the definition of accelerated filer does not significantly change Salisbury's annual reporting and audit requirements and does not change the auditor's role in the financial statement audit.

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
SECURITIES	NOTE 2 - SECURITIES The composition of securities is as follows: (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value March 31, 2020 Available-for-sale U.S. Government Agency notes $ 4,218 $ 174 $ 1 $ 4,391 Municipal bonds 26,392 861 3 27,250 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 29,003 871 31 29,843 Collateralized mortgage obligations: U.S. Government agencies 23,674 1,053 — 24,727 Corporate bonds 5,000 158 36 5,122 Total securities available-for-sale $ 88,287 $ 3,117 $ 71 $ 91,333 CRA mutual fund $ 900 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,733 $ — $ — $ 2,733 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 — 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ — $ — $ 3,242 Salisbury did not sell any available-for-sale securities during the three month period ended March 31, 2020. Salisbury sold $1.0 million in securities available-for-sale during the three month period ended March 31, 2019 realizing a pre-tax loss of $9 thousand and related tax benefit of $2 thousand. The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position as of the date presented: Less than 12 Months 12 Months or Longer Total March 31, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 126 $ 1 $ 126 $ 1 Municipal bonds 1,060 3 — — 1,060 3 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 2,808 30 108 1 2,916 31 Corporate bonds 714 36 — — 714 36 Total temporarily impaired securities $ 4,582 $ 69 $ 234 $ 2 $ 4,816 $ 71 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 — — 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 — — 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108 The table below presents the amortized cost, fair value and tax equivalent yield of securities, by maturity. Debt securities issued by U.S. Government agencies (SBA securities), MBS, and CMOS are disclosed separately in the table below as these securities may prepay prior to the scheduled contractual maturity dates. March 31, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ — $ — % After 5 year but within 10 years 2,496 2,567 3.48 Total 2,493 2,567 3.48 Municipal bonds After 5 year but within 10 years 1,727 1,841 3.16 After 10 years 24,665 25,409 3.43 Total 26,392 27,250 3.41 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 54,399 56,394 2.85 Corporate bonds After 5 years but within 10 years 5,000 5,122 5.21 Securities available-for-sale $ 88,287 $ 91,333 3.17 % (1) Salisbury evaluates debt 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 debt securities were OTTI at March 31, 2020. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Four securities had unrealized losses at March 31, 2020, which approximated 0.70% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality since time of purchase. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Management evaluated the impairment status of these debt securities, and concluded that the gross unrealized losses were temporary in nature. Therefore, management does not consider these investments to be other-than temporarily impaired at March 31, 2020 Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Two securities had unrealized losses at March 31, 2020, which approximated 0.24% 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 March 31, 2020. 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. Five securities had unrealized losses at March 31, 2020, which approximated 1.04% of their amortized cost. Changes in fair values are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in these securities, although it is not more likely than not that Salisbury will be required to sell these securities before recovery of their cost basis, which may be maturity, and does not intend to sell these securities. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2020. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. One security had an unrealized loss at March 31, 2020, which approximated 4.80% of its 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 this security. Furthermore, Salisbury evaluates these securities for strategic fit and may reduce its position in this security, although it is not more likely than not that Salisbury will be required to sell this security before recovery of its cost basis, which may be maturity, and does not intend to sell this security. Management evaluated the impairment status of this debt security, and concluded that the gross unrealized loss was temporary in nature. Therefore, management does not consider this investment to be other-than temporarily impaired at March 31, 2020. The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank's FHLBB stock as of March 31, 2020. Deterioration of the FHLBB's capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
LOANS	NOTE 3 – LOANS The composition of loans receivable is as follows: (In thousands) March 31, 2020 December 31, 2019 Residential 1-4 family $ 353,112 $ 346,299 Residential 5+ multifamily 35,008 35,455 Construction of residential 1-4 family 12,214 11,889 Home equity lines of credit 31,907 33,798 Residential real estate 432,241 427,441 Commercial 310,436 289,795 Construction of commercial 10,922 8,466 Commercial real estate 321,358 298,261 Farm land 3,612 3,641 Vacant land 14,488 7,893 Real estate secured 771,699 737,236 Commercial and industrial 157,573 169,411 Municipal 20,964 21,914 Consumer 8,195 6,385 Loans receivable, gross 958,431 934,946 Deferred loan origination fees and costs, net 1,329 1,362 Allowance for loan losses (10,618 ) (8,895 ) Loans receivable, net $ 949,142 $ 927,413 Loans held-for-sale Residential 1-4 family $ 580 $ 332 Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury's loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. Salisbury also has entered into loan participation agreements with other banks and purchased a portion of the other banks' originated loans. Purchased amounts are accounted for as loans without recourse to the originating bank. Salisbury and its originating lenders share ratably in any gains or losses that may result from a borrower's lack of compliance with contractual terms of the loan. The originating banks service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At March 31, 2020 and December 31, 2019, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $62.6 million and $67.0 million, respectively. 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. Salisbury's commercial loan portfolio is comprised of loans to diverse industries, several of which may experience operating challenges from the economic downturn caused by the COVID-19 virus pandemic (“virus”). Approximately 34% of the Bank's commercial gross loans receivable are to entities who operate rental properties, which include commercial strip malls, smaller rental units as well as multi-unit dwellings. Approximately 15% of the Bank's gross commercial loan receivables is to entities in the hospitality industry, which includes hotels, bed & breakfast inns and restaurants. Approximately 8% of gross commercial loan receivables is to educational institutions and approximately 6% of Salisbury's gross commercial loan receivables is to entertainment and recreation related businesses, which include a ski resort, bowling alleys and amusement parks. Salisbury's commercial loan exposure is mitigated by a variety of factors including the personal liquidity of the borrower, real estate and/or non-real estate collateral, U.S. Department of Agriculture or Small Business Administration (“SBA”) guarantees, loan payment deferrals and economic stimulus loans from the U.S. government as a result of the virus, and other factors. The duration of the economic shutdown and the time required for businesses to recover may adversely affect the ability of some borrowers to make timely loan payments. During such economic shutdown and recovery, the Bank may experience higher loan payment delinquencies and higher loan charge-offs, which could warrant increased provisions for loan losses. 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 Federal Deposit Insurance Corporation (“FDIC”) and the Connecticut Department of Banking (“CTDOB”). The composition of loans receivable by risk rating grade is as follows: (in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2020 Residential 1-4 family $ 344,792 $ 4,191 $ 4,129 $ — $ — $ 353,112 Residential 5+ multifamily 33,180 98 1,730 — — 35,008 Construction of residential 1-4 family 12,214 — — — — 12,214 Home equity lines of credit 31,313 387 207 — — 31,907 Residential real estate 421,499 4,676 6,066 — — 432,241 Commercial 291,486 4,687 14,192 71 — 310,436 Construction of commercial 10,684 — 238 — — 10,922 Commercial real estate 302,170 4,687 14,430 71 — 321,358 Farm land 1,918 — 1,694 — — 3,612 Vacant land 14,390 57 41 — — 14,488 Real estate secured 739,977 9,420 22,231 71 — 771,699 Commercial and industrial 155,326 473 1,774 — — 157,573 Municipal 20,964 — — — — 20,964 Consumer 8,157 4 34 — — 8,195 Loans receivable, gross $ 924,424 $ 9,897 $ 24,039 $ 71 $ — $ 958,431 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2019 Residential 1-4 family $ 337,302 $ 4,278 $ 4,719 $ — $ — $ 346,299 Residential 5+ multifamily 33,619 99 1,737 — — 35,455 Construction of residential 1-4 family 11,889 — — — — 11,889 Home equity lines of credit 33,381 312 105 — — 33,798 Residential real estate 416,191 4,689 6,561 — — 427,441 Commercial 271,708 10,964 7,052 71 — 289,795 Construction of commercial 8,225 — 241 — — 8,466 Commercial real estate 279,933 10,964 7,293 71 — 298,261 Farm land 1,934 — 1,707 — — 3,641 Vacant land 7,834 59 — — — 7,893 Real estate secured 705,892 15,712 15,561 71 — 737,236 Commercial and industrial 167,458 443 1,510 — — 169,411 Municipal 21,914 — — — — 21,914 Consumer 6,344 3 38 — — 6,385 Loans receivable, gross $ 901,608 $ 16,158 $ 17,109 $ 71 $ — $ 934,946 The composition of loans receivable by delinquency status is as follows: Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2020 Residential 1-4 family $ 349,628 $ 3,211 $ 236 $ 37 $ — $ 3,484 $ — $ 1,019 Residential 5+ multifamily 34,147 — — — 861 861 — 861 Construction of residential 1-4 family 12,214 — — — — — — — Home equity lines of credit 31,300 337 89 103 78 607 — 207 Residential real estate 427,289 3,548 325 140 939 4,952 — 2,087 Commercial 307,973 2,114 278 — 71 2,463 — 755 Construction of commercial 10,922 — — — — — — — Commercial real estate 318,895 2,114 278 — 71 2,463 — 755 Farm land 3,436 176 — — — 176 — 181 Vacant land 14,447 — — 41 — 41 41 — Real estate secured 764,067 5,838 603 181 1,010 7,632 41 3,023 Commercial and industrial 157,341 83 25 124 — 232 27 97 Municipal 20,964 — — — — — — — Consumer 8,190 4 1 — — 5 — — Loans receivable, gross $ 950,562 $ 5,925 $ 629 $ 305 $ 1,010 $ 7,869 $ 68 $ 3,120 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, 2019 Residential 1-4 family $ 344,085 $ 971 $ 351 $ 200 $ 692 $ 2,214 $ — $ 1,551 Residential 5+ multifamily 34,594 — — — 861 861 — 861 Construction of residential 1-4 family 11,889 — — — — — — — Home equity lines of credit 33,522 152 46 — 78 276 — 105 Residential real estate 424,090 1,123 397 200 1,631 3,351 — 2,517 Commercial 289,103 336 141 71 144 692 — 914 Construction of commercial 8,466 — — — — — — — Commercial real estate 297,569 336 141 71 144 692 — 914 Farm land 3,461 180 — — — 180 — 186 Vacant land 7,852 — 41 — — 41 — — Real estate secured 732,972 1,639 579 271 1,775 4,264 — 3,617 Commercial and industrial 169,262 2 146 1 — 149 1 — Municipal 21,914 — — — — — — — Consumer 6,382 — 1 2 — 3 2 — Loans receivable, gross $ 930,530 $ 1,641 $ 726 $ 274 $ 1,775 $ 4,416 $ 3 $ 3,617 Troubled Debt Restructurings (TDRs) Troubled debt restructurings are as follows: For the three months ending March 31, 2020 For the three months ending March 31, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — — $ — $ — Commercial real estate 1 133 133 — — — Consumer — — — — — — Troubled debt restructurings 1 $ 133 $ 133 — $ — $ — Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — — — — Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension — — — — — — Troubled debt restructurings 1 $ 133 $ 133 — $ — $ — For the three months ended March 31, 2020, there was one troubled debt restructurings. For the three months ended March 31, 2019, there were no troubled debt restructurings. Salisbury currently does not have any commitments to lend additional funds to TDR loans. There were no modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period. All TDR loans are included in the Impaired Loan schedule and are individually evaluated. Allowance for Loan Losses Changes in the allowance for loan losses are as follows: Three months ended March 31, 2020 Three months ended March 31, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 306 $ — $ 7 $ 2,706 $ 2,149 $ 10 $ (180 ) $ — $ 1 $ 1,980 Residential 5+ multifamily 446 62 — — 508 413 — 53 — — 466 Construction of residential 1-4 family 75 12 — — 87 83 — (6 ) — — 77 Home equity lines of credit 197 81 — — 278 219 1 (11 ) — — 209 Residential real estate 3,111 461 — 7 3,579 2,864 11 (144 ) — 1 2,732 Commercial 3,742 758 — 19 4,519 3,048 488 276 (9 ) — 3,803 Construction of commercial 104 22 — — 126 122 — 21 — — 143 Commercial real estate 3,846 780 — 19 4,645 3,170 488 297 (9 ) — 3,946 Farm land 47 5 — — 52 33 — 14 — — 47 Vacant land 71 73 — — 144 100 — (11 ) — — 89 Real estate secured 7,075 1,319 — 26 8,420 6,167 499 156 (9 ) 1 6,814 Commercial and industrial 1,145 (74 ) — — 1,071 1,158 164 (61 ) (30 ) 2 1,233 Municipal 46 7 — — 53 12 — 2 — — 14 Consumer 60 51 (12 ) 3 102 56 — (3 ) (6 ) 4 51 Unallocated 569 403 — — 972 438 — 200 — — 638 Totals $ 8,895 $ 1,706 $ (12 ) $ 29 $ 10,618 $ 7,831 $ 663 $ 294 $ (45 ) $ 7 $ 8,750 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 March 31, 2020 Residential 1-4 family $ 348,369 $ 2,400 $ 4,743 $ 306 $ 353,112 $ 2,706 Residential 5+ multifamily 34,031 508 977 — 35,008 508 Construction of residential 1-4 family 12,214 87 — — 12,214 87 Home equity lines of credit 31,700 252 207 26 31,907 278 Residential real estate 426,314 3,247 5,927 332 432,241 3,579 Commercial 306,125 3,986 4,311 533 310,436 4,519 Construction of commercial 10,922 126 — — 10,922 126 Commercial real estate 317,047 4,112 4,311 533 321,358 4,645 Farm land 3,431 52 181 — 3,612 52 Vacant land 14,311 136 177 8 14,488 144 Real estate secured 761,103 7,547 10,596 873 771,699 8,420 Commercial and industrial 157,354 1,063 219 8 157,573 1,071 Municipal 20,964 53 — — 20,964 53 Consumer 8,161 75 34 27 8,195 102 Unallocated allowance — 972 — — — 972 Totals $ 947,582 $ 9,710 $ 10,849 $ 908 $ 958,431 $ 10,618 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2019 Residential 1-4 family $ 340,847 $ 2,117 $ 5,452 $ 276 $ 346,299 $ 2,393 Residential 5+ multifamily 34,478 446 977 — 35,455 446 Construction of residential 1-4 family 11,889 75 — — 11,889 75 Home equity lines of credit 33,693 197 105 — 33,798 197 Residential real estate 420,907 2,835 6,534 276 427,441 3,111 Commercial 285,462 3,333 4,333 409 289,795 3,742 Construction of commercial 8,466 104 — — 8,466 104 Commercial real estate 293,928 3,437 4,333 409 298,261 3,846 Farm land 3,455 47 186 — 3,641 47 Vacant land 7,713 66 180 5 7,893 71 Real estate secured 726,003 6,385 11,233 690 737,236 7,075 Commercial and industrial 169,285 1,143 126 2 169,411 1,145 Municipal 21,914 46 — — 21,914 46 Consumer 6,349 59 36 1 6,385 60 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 The credit quality segments of loans receivable and the allowance for loan losses are as follows: March 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 930,294 $ 8,044 $ — $ — $ 930,294 $ 8,044 Potential problem loans 1 17,288 694 — — 17,288 694 Impaired loans — — 10,849 908 10,849 908 Unallocated allowance — 972 — — — 972 Totals $ 947,582 $ 9,710 $ 10,849 $ 908 $ 958,431 $ 10,618 December 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 913,648 $ 7,251 $ — $ — $ 913,648 $ 7,251 Potential problem loans 1 9,903 382 — — 9,903 382 Impaired loans — — 11,395 693 11,395 693 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 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 the 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 as of and for the three months ended: Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2020 Residential $ 4,015 $ 4,140 $ 4,067 $ 306 $ 42 $ 1,705 $ 2,019 $ 2,070 $ 6 Home equity lines of credit 89 89 22 26 — 118 464 108 — Residential real estate 4,104 4,229 4,089 332 42 1,823 2,483 2,178 6 Commercial 3,672 3,741 3,405 533 44 638 1,254 924 10 Construction of commercial — — — — — — — — — Farm land — — — — — 181 327 184 — Vacant land 41 41 41 8 1 137 154 138 2 Real estate secured 7,817 8,011 7,535 873 87 2,779 4,218 3,424 18 Commercial and industrial 166 170 111 8 1 53 207 86 1 Consumer 34 34 35 27 — — — — — Totals $ 8,017 $ 8,215 $ 7,681 $ 908 $ 88 $ 2,832 $ 4,425 $ 3,510 $ 19 Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2019 Residential $ 2,769 $ 2,823 $ 2,780 $ 113 $ 27 $ 3,454 $ 4,758 $ 3,620 $ 16 Home equity lines of credit 45 45 46 2 1 407 495 409 — Residential real estate 2,814 2,868 2,826 115 28 3,861 5,253 4,029 16 Commercial 2,568 2,568 1,993 186 24 2,427 3,912 2,748 14 Construction of commercial 249 249 251 14 — 100 108 101 2 Farm land — — — — — 212 430 215 — Vacant land 42 42 42 2 1 145 165 146 3 Real estate secured 5,673 5,727 5,112 317 53 6,745 9,868 7,239 35 Commercial and industrial — — — — — 498 620 500 2 Consumer — — — — — — 1 — — Totals $ 5,673 $ 5,727 $ 5,112 $ 317 $ 53 $ 7,243 $ 10,489 $ 7,739 $ 37 Certain data with respect to loans individually evaluated for impairment is as follows as of and for the year ended December 31, 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 December 31, 2019 Residential $ 4,111 $ 4,190 $ 3,725 $ 276 $ 162 $ 2,318 $ 3,081 $ 2,940 $ 52 Home equity lines of credit — — 52 — — 105 450 391 — Residential real estate 4,111 4,190 3,777 276 162 2,423 3,531 3,331 52 Commercial 3,309 3,335 2,574 409 90 1,024 1,733 1,747 54 Construction of commercial — — 77 — — — — 39 — Farm land — — — — — 186 329 203 — Vacant land 41 41 42 5 3 139 157 143 10 Real estate secured 7,461 7,566 6,470 690 255 3,772 5,750 5,463 116 Commercial and industrial 93 97 16 2 4 33 188 265 4 Consumer 36 36 21 1 — — — 3 — Totals $ 7,590 $ 7,699 $ 6,507 $ 693 $ 259 $ 3,805 $ 5,938 $ 5,731 $ 120

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
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. Effective January 1, 2019, the Bank recorded approximately $1.6 million of right-of-use assets and corresponding lease liability related to these operating leases. The Bank does not have any leases with related parties and equipment leases are not material to Salisbury's consolidated financial statements. The following table provides the assets and liabilities as well as the costs of operating and financial leases which are included in the Bank's consolidated income statement for the three months ended March 31, 2020. Three months ended (in thousands, except lease term and discount rate) Classification March 31, 2020 December 31, 2019 Assets Operating Other assets $ 1,310 $ 1,360 Finance Bank premises and equipment 1 1,478 1,503 Total Leased Assets $ 2,788 $ 2,863 Liabilities Operating Other liabilities $ 1,310 $ 1,360 Finance Finance lease 1,707 1,718 Total lease liabilities $ 3,017 $ 3,078 1 Lease cost Classification March 31, 2020 March 31, 2019 Operating leases Premises and equipment $ 62 $ 61 Finance leases: Amortization of leased assets Premises and equipment 25 47 Interest on finance leases Interest expense 36 46 Total lease cost $ 123 $ 154 Weighted Average Remaining Lease Term Operating leases 8.6 years 8.7 years Financing leases 15.2 years 13.2 years Weighted Average Discount Rate 1 Operating leases 3.7% 3.7% Financing leases 8.4% 7.5% 1 The following is a schedule by years of the present value of the net minimum lease payments as of March 31, 2020. Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 185 $ 140 2021 228 192 2022 199 195 2023 148 197 2024 129 200 Thereafter 650 1,980 Total future minimum lease payments 1,539 2,904 Less amount representing interest (229 ) (1,197 ) Total present value of net future minimum lease payments $ 1,310 $ 1,707

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	3 Months Ended
	Mar. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
MORTGAGE SERVICING RIGHTS	NOTE 5 - MORTGAGE SERVICING RIGHTS (in thousands) March 31, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 106,990 $ 106,255 Fair value of mortgage servicing rights 625 813 Changes in mortgage servicing rights are as follows: Three months ended March 31, (in thousands) 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 238 $ 228 Originated 33 4 Amortization (1) (16 ) (11 ) Balance, end of period $ 255 $ 221 (1)

PLEDGED ASSETS

PLEDGED ASSETS	3 Months Ended
	Mar. 31, 2020
Guarantees [Abstract]
PLEDGED ASSETS	NOTE 6 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available. (in thousands) March 31, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 55,337 $ 52,845 Loans receivable 434,738 434,329 Total pledged assets $ 490,075 $ 487,174 At March 31, 2020, securities were pledged as follows: $46.34 million to secure public deposits, $8.95 million to secure repurchase agreements and $0.05 million to secure FHLBB advances. Additionally, loans receivable were pledged to secure FHLBB advances and credit facilities.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 7 – EARNINGS PER SHARE Salisbury defines unvested share-based payment awards that contain non-forfeitable rights to dividends as participating securities that are included in computing earnings per share (EPS) using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table sets forth the computation of earnings per share (basic and diluted) for the periods indicated: Three months ended March 31, (in thousands, except per share data) 2020 2019 Net income $ 2,047 $ 2,434 Less: Undistributed earnings allocated to participating securities (34 ) (26 ) Net income allocated to common stock $ 2,013 $ 2,408 Weighted-average common shares issued 2,828 2,806 Less: Unvested restricted stock awards (40 ) (29 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,788 2,777 Add: Dilutive effect of stock options 9 12 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,797 2,789 Earnings per common share (basic) $ 0.72 $ 0.87 Earnings per common share (diluted) $ 0.72 $ 0.86

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2020
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 Board (“FRB”) and FDIC, include a common equity Tier 1 capital risk-weighted assets minimum ratio of 4.5%, minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, require a minimum ratio of Total capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. The initial implementation of the capital conservation buffer began phasing in January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent January 1, by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. As of March 31, 2020, 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 March 31, 2020 and December 31, 2019 were $907.5 million and $891.0 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 March 31, 2020 Total Capital (to risk-weighted assets) $ 117,738 12.97 % $ 72,604 8.0 % $ 95,292 10.5 % $ 90,755 10.0 % Tier 1 Capital (to risk-weighted assets) 107,012 11.79 54,453 6.0 77,141 8.5 72,604 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 107,012 11.79 40,840 4.5 63,528 7.0 58,991 6.5 Tier 1 Capital (to average assets) $ 107,012 9.65 $ 44,376 4.0 $ 44,376 4.0 $ 55,470 5.0 December 31, 2019 Total Capital (to risk-weighted assets) $ 114,421 12.84 % $ 71,278 8.0 % $ 93,553 10.5 % $ 89,098 10.0 % Tier 1 Capital (to risk-weighted assets) 105,430 11.83 53,459 6.0 75,733 8.5 $ 71,278 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 105,430 11.83 40,094 4.5 62,368 7.0 57,914 6.5 Tier 1 Capital (to average assets) $ 105,430 9.60 $ 43,944 4.0 43,944 4.0 $ 54,930 5.0 Restrictions on Cash Dividends to Common Shareholders Salisbury's ability to pay cash dividends is substantially dependent on the Bank's ability to pay cash dividends to Salisbury. There are certain restrictions on the payment of cash dividends and other payments by the Bank to Salisbury. Under Connecticut law, the Bank cannot declare a cash dividend except from net profits, defined as the remainder of all earnings from current operations. The total of all cash dividends declared by the Bank in any calendar year shall not, unless specifically approved by the Banking Commissioner, exceed the total of its net profits of that year combined with its retained net profits of the preceding two years. FRB Supervisory Letter SR 09-4, February 24, 2009, revised March 30, 2009, notes that, as a general matter, the Board of Directors of a Bank Holding Company (“BHC”) should inform the Federal Reserve and should eliminate, defer, or significantly reduce dividends if (1) net income available to shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividends; (2) the prospective rate of earnings retention is not consistent with capital needs and overall current and prospective financial condition; or (3) the BHC will not meet, or is in danger of not meeting, its minimum regulatory capital adequacy ratios. Moreover, a BHC should inform the Federal Reserve reasonably in advance of declaring or paying a dividend that exceeds earnings for the period (e.g., quarter) for which the dividend is being paid or that could result in a material adverse change to the BHC capital structure.

BENEFITS

BENEFITS	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [Abstract]
BENEFITS	NOTE 9 –BENEFITS Salisbury offers a 401(k) Plan to eligible employees. Under the 401(k) Plan, eligible participants may contribute a percentage of their pay subject to IRS limitations. Salisbury may make discretionary contributions to the Plan. The Plan includes a safe harbor contribution of 3% for all qualifying employees. The Bank's safe harbor contribution percentage is reviewed annually and, under provisions of the 401(k) Plan, is subject to change in the future. An additional discretionary match may also be made for all employees that meet the 401(k) Plan's qualifying requirements for such a match. This discretionary matching percentage, if any, is also subject to review under the provisions of the 401(k) Plan. Both the safe harbor and additional discretionary match, if any, vest immediately. Salisbury's 401(k) Plan expense was $238 thousand and $239 thousand, respectively, for the three month periods ended March 31, 2020 and 2019. ESOP Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 20% after the second year, 20% per year thereafter, vesting at 100% after six full years of service. Salisbury's ESOP expense was $57 thousand and $49 thousand, respectively, for the three month periods ended March 31, 2020 and 2019. Other Retirement Plans Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury's future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $788 thousand and $765 thousand at March 31, 2020, and 2019, respectively. Expenses under this arrangement for the three months ended March 31, 2020 and 2019 were $23 thousand and $21, respectively. A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2020 and 2019, the Bank awarded seven (7) Executives with discretionary contributions to the plan. Expenses related to this plan for the first three months amounted to $33 thousand in 2020 and $29 thousand in 2019. Management Agreements: Salisbury or the Bank has entered into various management agreements with its named executive officers, including a severance agreement with Mr. Cantele, President and Chief Executive Officer, a change in control agreement with Mr. Albero, Executive Vice President and Chief Financial Officer, and a severance agreement with Mr. Davies, President of the New York Region and Chief Lending Officer. Such agreements are designed to allow Salisbury to retain the services of the designated executives while reducing, to the extent possible, unnecessary disruptions to Salisbury's operations.

LONG TERM INCENTIVE PLANS

LONG TERM INCENTIVE PLANS	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [Abstract]
LONG TERM INCENTIVE PLANS	NOTE 10 – LONG TERM INCENTIVE PLANS Restricted stock Expense in first quarter 2020 and 2019 related to employee and directors' stock-based compensation totaled $136 thousand and $100 thousand, respectively. Unrecognized compensation cost relating to the awards as of March 31, 2020 and 2019 totaled $660 thousand and $606 thousand, respectively. Forfeitures in the first quarter 2020 and 2019 totaled 0 and 100 shares, respectively. Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted performance-based restricted stock units (RSU) pursuant to the 2017 Long-Term Incentive Plan to further align compensation with the Bank's performance. This RSU plan replaced the Bank's Phantom Stock Appreciation Units plan (Phantom). Salisbury will continue to record an expense for the Phantom plan until the final tranche of awards is paid out in January 2021. Salisbury's expense for the Phantom plan was $36 thousand and $64 thousand, respectively, for the three month periods ended March 31, 2020 and 2019. The performance goal under the RSU plan 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. Compensation expense of $23 thousand was recorded with respect to these RSUs in the three months ended March 31, 2020. No performance-based restricted stock units were awarded prior to March 29, 2019, therefore no expense was recognized in the first quarter of 2019. Short Term Incentive Plan (STIP) Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $153 thousand and $178 thousand for the three months ended 2020 and 2019, respectively. Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the first quarter 2020, 1,755 stock options were exercised at $17.04 per share by one former Riverside Bank executive, who is currently a Named Executive Officer of Salisbury. Also, in the first quarter of 2020, a former Riverside employee exercised 1,350 stock options at $17.04 per share. No stock options were exercised in the first quarter 2019.

FAIR VALUE OF ASSETS AND LIABIL

FAIR VALUE OF ASSETS AND LIABILITIES	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 11 – FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Salisbury adopted ASC 820-10, “Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. This guidance permitted Salisbury the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. Salisbury did not elect fair value treatment for any financial assets or liabilities upon adoption. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury's market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. • Level 3. Significant unobservable inputs. Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Salisbury did not have any significant transfers of assets between levels 1 and 2 of the fair value hierarchy during the year ended December 31, 2019. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. • Securities available-for-sale and the CRA mutual fund. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. • Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. • Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets measured at fair value are as follows: Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,391 $ — $ 4,391 Municipal bonds — 27,250 — 27,250 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,843 — 29,843 Collateralized mortgage obligations: U.S. Government agencies — 24,727 — 24,727 Corporate bonds — 5,122 — 5,122 Securities available-for-sale $ — $ 91,333 $ — $ 91,333 CRA mutual funds 900 — — 900 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,207 $ 1,207 Other real estate owned $ — $ — $ — $ — December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,644 $ — $ 4,644 Municipal bonds — 27,193 — 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,357 — 29,357 Collateralized mortgage obligations: U.S. Government agencies — 25,499 — 25,499 Corporate bonds — 5,108 — 5,108 Securities available-for-sale $ — $ 91,801 $ — $ 91,801 CRA mutual funds 882 — — 882 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,593 $ 1,593 Other real estate owned $ — $ — $ 314 $ 314 Carrying values and estimated fair values of financial instruments are as follows: (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets Cash and cash equivalents $ 39,262 $ 39,262 $ 39,262 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 Securities available-for-sale, net 91,333 91,333 — 91,333 — CRA mutual fund 900 900 900 — — Federal Home Loan Bank of Boston stock 2,733 2,733 2,733 — — Loans held-for-sale 580 589 — — 589 Loans receivable, net 949,142 948,157 — — 948,157 Accrued interest receivable 3,437 3,437 3,437 — — Cash surrender value of life insurance policies 20,714 20,714 20,714 — — Financial Liabilities Demand (non-interest-bearing) $ 243,491 $ 243,491 $ — $ 243,491 $ — Demand (interest-bearing) 157,069 157,069 — 157,069 — Money market 222,746 222,746 — 222,746 — Savings and other 167,408 167,408 — 167,408 — Certificates of deposit 174,906 176,461 — 176,461 — Deposits 965,620 967,175 — 967,175 — Repurchase agreements 4,929 4,929 — 4,929 — FHLBB advances 40,932 41,167 — 41,167 — Subordinated debt 9,865 9,958 9,958 — — Note payable 237 241 — 241 — Finance lease obligation 1,707 1,935 — — 1,938 Accrued interest payable 297 297 297 — — December 31, 2019 Financial Assets Cash and cash equivalents $ 26,885 $ 26,885 $ 26,885 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 91,801 91,801 — 91,801 — CRA mutual fund 882 882 882 — — Federal Home Loan Bank of Boston stock 3,242 3,242 3,242 — — Loans held-for-sale 332 334 — — 334 Loans receivable, net 927,413 933,287 — — 933,287 Accrued interest receivable 3,415 3,415 3,415 — — Cash surrender value of life insurance policies 20,580 20,580 20,580 — — Financial Liabilities Demand (non-interest-bearing) $ 237,852 $ 237,852 $ — $ 237,852 $ — Demand (interest-bearing) 153,314 153,314 — 153,314 — Money market 239,504 239,504 — 239,504 — Savings and other 161,112 161,112 — 161,112 — Certificates of deposit 127,724 128,629 — 128,629 — Deposits 919,506 920,411 — 920,411 — Repurchase agreements 8,530 8,530 — 8,530 — FHLBB advances 50,887 51,028 — 51,028 — Subordinated debt 9,859 10,113 10,113 — — Note payable 246 251 — 251 — Finance lease liability 1,718 1,967 — — 1,967 Accrued interest payable 78 78 78 — —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS On April 27, 2020 the Board of Directors declared a dividend of $0.29 per common share payable on May 15, 2020 to shareholders of record as of May 29, 2020. As of April 16, 2020 Salisbury processed 477 loan applications, for approximately $86 million, under the initial tranche of funding for the SBA's Paycheck Protection Program. All of these loans closed and were funded by April 24, 2020. As of May 5, 2020 Salisbury processed an additional 302 loan applications, for approximately $12 million, under the second tranche of funding for the SBA's Paycheck Protection Program. In addition, as of May 5, 2020, Salisbury received 144 loan payment deferral requests from residential and consumer customers (loan balance of $36 million) and 263 loan payment deferral requests from commercial customers (loan balance of $157 million).

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Other Regulatory Pronouncements	Other Regulatory Pronouncements On March 12, 2020 the Securities and Exchange Commission finalized amendments to the definitions of “accelerated” and “large accelerated filer”. The amendments increase the threshold criteria for meeting these categories and are effective on April 27, 2020 and apply to annual reports due on or after such effective date. Prior to these changes, Salisbury was designated as a “smaller reporting company” and an “accelerated” filer as it had more than $75 million in public float but less than $700 million at the end of Salisbury's most recent second quarter. The rule changed the definition of “accelerated filer” and expands the category of “non-accelerated filer” to include entities with public float of less than $700 million and less than $100 million in annual revenues. Salisbury expects to meet the new definition of non-accelerated filer while continuing to qualify as a “smaller reporting company”, and would no longer be considered an accelerated filer. The categorization of “accelerated” or “large accelerated filer” determines the requirement for a public company to obtain an auditor attestation of its internal control over financial reporting. Non-accelerated filers also have additional time to file quarterly and annual reports. All public companies are required to obtain and file annual financial statements audits as well as provide management's assertion on the effectiveness of internal controls over financial reporting, but the external auditor attestation of internal control over financial reporting is not required for non-accelerated filers. As Salisbury has total assets exceeding $1.0 billion, it remains subject to the rules of the Federal Deposit Insurance Corporation, which requires an auditor attestation of internal controls over the Bank's regulatory financial reporting. As such, other than additional time provided to file quarterly and annual reports, this amendment to the definition of accelerated filer does not significantly change Salisbury's annual reporting and audit requirements and does not change the auditor's role in the financial statement audit.

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Composition of Securities	(in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value March 31, 2020 Available-for-sale U.S. Government Agency notes $ 4,218 $ 174 $ 1 $ 4,391 Municipal bonds 26,392 861 3 27,250 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 29,003 871 31 29,843 Collateralized mortgage obligations: U.S. Government agencies 23,674 1,053 — 24,727 Corporate bonds 5,000 158 36 5,122 Total securities available-for-sale $ 88,287 $ 3,117 $ 71 $ 91,333 CRA mutual fund $ 900 Non-marketable securities Federal Home Loan Bank of Boston stock $ 2,733 $ — $ — $ 2,733 (in thousands) Amortized cost basis (1) Gross un-realized gains Gross un-realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 — 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ — $ — $ 3,242
Aggreggate fair value and gross unrealized loss of securities	Less than 12 Months 12 Months or Longer Total March 31, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 126 $ 1 $ 126 $ 1 Municipal bonds 1,060 3 — — 1,060 3 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 2,808 30 108 1 2,916 31 Corporate bonds 714 36 — — 714 36 Total temporarily impaired securities $ 4,582 $ 69 $ 234 $ 2 $ 4,816 $ 71 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ — $ — $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 — — 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 — — 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108
Amortized cost, fair value and tax equivalent yield of securities	March 31, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ — $ — % After 5 year but within 10 years 2,496 2,567 3.48 Total 2,493 2,567 3.48 Municipal bonds After 5 year but within 10 years 1,727 1,841 3.16 After 10 years 24,665 25,409 3.43 Total 26,392 27,250 3.41 Mortgage-backed securities and Collateralized mortgage obligations U.S. Government agencies 54,399 56,394 2.85 Corporate bonds After 5 years but within 10 years 5,000 5,122 5.21 Securities available-for-sale $ 88,287 $ 91,333 3.17 % (1)

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2020
Receivables [Abstract]
Composition of loans receivable and loans held-for-sale	(In thousands) March 31, 2020 December 31, 2019 Residential 1-4 family $ 353,112 $ 346,299 Residential 5+ multifamily 35,008 35,455 Construction of residential 1-4 family 12,214 11,889 Home equity lines of credit 31,907 33,798 Residential real estate 432,241 427,441 Commercial 310,436 289,795 Construction of commercial 10,922 8,466 Commercial real estate 321,358 298,261 Farm land 3,612 3,641 Vacant land 14,488 7,893 Real estate secured 771,699 737,236 Commercial and industrial 157,573 169,411 Municipal 20,964 21,914 Consumer 8,195 6,385 Loans receivable, gross 958,431 934,946 Deferred loan origination fees and costs, net 1,329 1,362 Allowance for loan losses (10,618 ) (8,895 ) Loans receivable, net $ 949,142 $ 927,413 Loans held-for-sale Residential 1-4 family $ 580 $ 332
Composition of loans receivable by risk rating grade	(in thousands) Pass Special mention Substandard Doubtful Loss Total March 31, 2020 Residential 1-4 family $ 344,792 $ 4,191 $ 4,129 $ — $ — $ 353,112 Residential 5+ multifamily 33,180 98 1,730 — — 35,008 Construction of residential 1-4 family 12,214 — — — — 12,214 Home equity lines of credit 31,313 387 207 — — 31,907 Residential real estate 421,499 4,676 6,066 — — 432,241 Commercial 291,486 4,687 14,192 71 — 310,436 Construction of commercial 10,684 — 238 — — 10,922 Commercial real estate 302,170 4,687 14,430 71 — 321,358 Farm land 1,918 — 1,694 — — 3,612 Vacant land 14,390 57 41 — — 14,488 Real estate secured 739,977 9,420 22,231 71 — 771,699 Commercial and industrial 155,326 473 1,774 — — 157,573 Municipal 20,964 — — — — 20,964 Consumer 8,157 4 34 — — 8,195 Loans receivable, gross $ 924,424 $ 9,897 $ 24,039 $ 71 $ — $ 958,431 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2019 Residential 1-4 family $ 337,302 $ 4,278 $ 4,719 $ — $ — $ 346,299 Residential 5+ multifamily 33,619 99 1,737 — — 35,455 Construction of residential 1-4 family 11,889 — — — — 11,889 Home equity lines of credit 33,381 312 105 — — 33,798 Residential real estate 416,191 4,689 6,561 — — 427,441 Commercial 271,708 10,964 7,052 71 — 289,795 Construction of commercial 8,225 — 241 — — 8,466 Commercial real estate 279,933 10,964 7,293 71 — 298,261 Farm land 1,934 — 1,707 — — 3,641 Vacant land 7,834 59 — — — 7,893 Real estate secured 705,892 15,712 15,561 71 — 737,236 Commercial and industrial 167,458 443 1,510 — — 169,411 Municipal 21,914 — — — — 21,914 Consumer 6,344 3 38 — — 6,385 Loans receivable, gross $ 901,608 $ 16,158 $ 17,109 $ 71 $ — $ 934,946
Composition of loans receivable by delinquency status	Past due 180 30 Accruing (in thousands) days days 90 days 30-59 60-89 90-179 and and and Non- Current days days days over over over accrual March 31, 2020 Residential 1-4 family $ 349,628 $ 3,211 $ 236 $ 37 $ — $ 3,484 $ — $ 1,019 Residential 5+ multifamily 34,147 — — — 861 861 — 861 Construction of residential 1-4 family 12,214 — — — — — — — Home equity lines of credit 31,300 337 89 103 78 607 — 207 Residential real estate 427,289 3,548 325 140 939 4,952 — 2,087 Commercial 307,973 2,114 278 — 71 2,463 — 755 Construction of commercial 10,922 — — — — — — — Commercial real estate 318,895 2,114 278 — 71 2,463 — 755 Farm land 3,436 176 — — — 176 — 181 Vacant land 14,447 — — 41 — 41 41 — Real estate secured 764,067 5,838 603 181 1,010 7,632 41 3,023 Commercial and industrial 157,341 83 25 124 — 232 27 97 Municipal 20,964 — — — — — — — Consumer 8,190 4 1 — — 5 — — Loans receivable, gross $ 950,562 $ 5,925 $ 629 $ 305 $ 1,010 $ 7,869 $ 68 $ 3,120 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, 2019 Residential 1-4 family $ 344,085 $ 971 $ 351 $ 200 $ 692 $ 2,214 $ — $ 1,551 Residential 5+ multifamily 34,594 — — — 861 861 — 861 Construction of residential 1-4 family 11,889 — — — — — — — Home equity lines of credit 33,522 152 46 — 78 276 — 105 Residential real estate 424,090 1,123 397 200 1,631 3,351 — 2,517 Commercial 289,103 336 141 71 144 692 — 914 Construction of commercial 8,466 — — — — — — — Commercial real estate 297,569 336 141 71 144 692 — 914 Farm land 3,461 180 — — — 180 — 186 Vacant land 7,852 — 41 — — 41 — — Real estate secured 732,972 1,639 579 271 1,775 4,264 — 3,617 Commercial and industrial 169,262 2 146 1 — 149 1 — Municipal 21,914 — — — — — — — Consumer 6,382 — 1 2 — 3 2 — Loans receivable, gross $ 930,530 $ 1,641 $ 726 $ 274 $ 1,775 $ 4,416 $ 3 $ 3,617
Troubled debt restructurings	For the three months ending March 31, 2020 For the three months ending March 31, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate — $ — $ — — $ — $ — Commercial real estate 1 133 133 — — — Consumer — — — — — — Troubled debt restructurings 1 $ 133 $ 133 — $ — $ — Interest only payments to sell property — $ — $ — — $ — $ — Rate reduction — — — — — — Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension — — — — — — Troubled debt restructurings 1 $ 133 $ 133 — $ — $ —
Changes in allowance for loan losses	Three months ended March 31, 2020 Three months ended March 31, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 306 $ — $ 7 $ 2,706 $ 2,149 $ 10 $ (180 ) $ — $ 1 $ 1,980 Residential 5+ multifamily 446 62 — — 508 413 — 53 — — 466 Construction of residential 1-4 family 75 12 — — 87 83 — (6 ) — — 77 Home equity lines of credit 197 81 — — 278 219 1 (11 ) — — 209 Residential real estate 3,111 461 — 7 3,579 2,864 11 (144 ) — 1 2,732 Commercial 3,742 758 — 19 4,519 3,048 488 276 (9 ) — 3,803 Construction of commercial 104 22 — — 126 122 — 21 — — 143 Commercial real estate 3,846 780 — 19 4,645 3,170 488 297 (9 ) — 3,946 Farm land 47 5 — — 52 33 — 14 — — 47 Vacant land 71 73 — — 144 100 — (11 ) — — 89 Real estate secured 7,075 1,319 — 26 8,420 6,167 499 156 (9 ) 1 6,814 Commercial and industrial 1,145 (74 ) — — 1,071 1,158 164 (61 ) (30 ) 2 1,233 Municipal 46 7 — — 53 12 — 2 — — 14 Consumer 60 51 (12 ) 3 102 56 — (3 ) (6 ) 4 51 Unallocated 569 403 — — 972 438 — 200 — — 638 Totals $ 8,895 $ 1,706 $ ( 12 ) $ 29 $ 10,618 $ 7,831 $ 663 $ 294 $ (45 ) $ 7 $ 8,750
Composition of loans receivable and allowance for loan losses	(in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance March 31, 2020 Residential 1-4 family $ 348,369 $ 2,400 $ 4,743 $ 306 $ 353,112 $ 2,706 Residential 5+ multifamily 34,031 508 977 — 35,008 508 Construction of residential 1-4 family 12,214 87 — — 12,214 87 Home equity lines of credit 31,700 252 207 26 31,907 278 Residential real estate 426,314 3,247 5,927 332 432,241 3,579 Commercial 306,125 3,986 4,311 533 310,436 4,519 Construction of commercial 10,922 126 — — 10,922 126 Commercial real estate 317,047 4,112 4,311 533 321,358 4,645 Farm land 3,431 52 181 — 3,612 52 Vacant land 14,311 136 177 8 14,488 144 Real estate secured 761,103 7,547 10,596 873 771,699 8,420 Commercial and industrial 157,354 1,063 219 8 157,573 1,071 Municipal 20,964 53 — — 20,964 53 Consumer 8,161 75 34 27 8,195 102 Unallocated allowance — 972 — — — 972 Totals $ 947,582 $ 9,710 $ 10,849 $ 908 $ 958,431 $ 10,618 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2019 Residential 1-4 family $ 340,847 $ 2,117 $ 5,452 $ 276 $ 346,299 $ 2,393 Residential 5+ multifamily 34,478 446 977 — 35,455 446 Construction of residential 1-4 family 11,889 75 — — 11,889 75 Home equity lines of credit 33,693 197 105 — 33,798 197 Residential real estate 420,907 2,835 6,534 276 427,441 3,111 Commercial 285,462 3,333 4,333 409 289,795 3,742 Construction of commercial 8,466 104 — — 8,466 104 Commercial real estate 293,928 3,437 4,333 409 298,261 3,846 Farm land 3,455 47 186 — 3,641 47 Vacant land 7,713 66 180 5 7,893 71 Real estate secured 726,003 6,385 11,233 690 737,236 7,075 Commercial and industrial 169,285 1,143 126 2 169,411 1,145 Municipal 21,914 46 — — 21,914 46 Consumer 6,349 59 36 1 6,385 60 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895
Credit quality segments of loans receivable and allowance for loan losses	March 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 930,294 $ 8,044 $ — $ — $ 930,294 $ 8,044 Potential problem loans 1 17,288 694 — — 17,288 694 Impaired loans — — 10,849 908 10,849 908 Unallocated allowance — 972 — — — 972 Totals $ 947,582 $ 9,710 $ 10,849 $ 908 $ 958,431 $ 10,618 December 31, 2019 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 913,648 $ 7,251 $ — $ — $ 913,648 $ 7,251 Potential problem loans 1 9,903 382 — — 9,903 382 Impaired loans — — 11,395 693 11,395 693 Unallocated allowance — 569 — — — 569 Totals $ 923,551 $ 8,202 $ 11,395 $ 693 $ 934,946 $ 8,895 1
Certain data with respect to loans individually evaluated for impairment	Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2020 Residential $ 4,015 $ 4,140 $ 4,067 $ 306 $ 42 $ 1,705 $ 2,019 $ 2,070 $ 6 Home equity lines of credit 89 89 22 26 — 118 464 108 — Residential real estate 4,104 4,229 4,089 332 42 1,823 2,483 2,178 6 Commercial 3,672 3,741 3,405 533 44 638 1,254 924 10 Construction of commercial — — — — — — — — — Farm land — — — — — 181 327 184 — Vacant land 41 41 41 8 1 137 154 138 2 Real estate secured 7,817 8,011 7,535 873 87 2,779 4,218 3,424 18 Commercial and industrial 166 170 111 8 1 53 207 86 1 Consumer 34 34 35 27 — — — — — Totals $ 8,017 $ 8,215 $ 7,681 $ 908 $ 88 $ 2,832 $ 4,425 $ 3,510 $ 19 Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized March 31, 2019 Residential $ 2,769 $ 2,823 $ 2,780 $ 113 $ 27 $ 3,454 $ 4,758 $ 3,620 $ 16 Home equity lines of credit 45 45 46 2 1 407 495 409 — Residential real estate 2,814 2,868 2,826 115 28 3,861 5,253 4,029 16 Commercial 2,568 2,568 1,993 186 24 2,427 3,912 2,748 14 Construction of commercial 249 249 251 14 — 100 108 101 2 Farm land — — — — — 212 430 215 — Vacant land 42 42 42 2 1 145 165 146 3 Real estate secured 5,673 5,727 5,112 317 53 6,745 9,868 7,239 35 Commercial and industrial — — — — — 498 620 500 2 Consumer — — — — — — 1 — — Totals $ 5,673 $ 5,727 $ 5,112 $ 317 $ 53 $ 7,243 $ 10,489 $ 7,739 $ 37 Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2019 Residential $ 4,111 $ 4,190 $ 3,725 $ 276 $ 162 $ 2,318 $ 3,081 $ 2,940 $ 52 Home equity lines of credit — — 52 — — 105 450 391 — Residential real estate 4,111 4,190 3,777 276 162 2,423 3,531 3,331 52 Commercial 3,309 3,335 2,574 409 90 1,024 1,733 1,747 54 Construction of commercial — — 77 — — — — 39 — Farm land — — — — — 186 329 203 — Vacant land 41 41 42 5 3 139 157 143 10 Real estate secured 7,461 7,566 6,470 690 255 3,772 5,750 5,463 116 Commercial and industrial 93 97 16 2 4 33 188 265 4 Consumer 36 36 21 1 — — — 3 — Totals $ 7,590 $ 7,699 $ 6,507 $ 693 $ 259 $ 3,805 $ 5,938 $ 5,731 $ 120

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Assets and liabilities as well as the costs of operating and financial leases	Three months ended (in thousands, except lease term and discount rate) Classification March 31, 2020 December 31, 2019 Assets Operating Other assets $ 1,310 $ 1,360 Finance Bank premises and equipment 1 1,478 1,503 Total Leased Assets $ 2,788 $ 2,863 Liabilities Operating Other liabilities $ 1,310 $ 1,360 Finance Finance lease 1,707 1,718 Total lease liabilities $ 3,017 $ 3,078 1 Lease cost Classification March 31, 2020 March 31, 2019 Operating leases Premises and equipment $ 62 $ 61 Finance leases: Amortization of leased assets Premises and equipment 25 47 Interest on finance leases Interest expense 36 46 Total lease cost $ 123 $ 154 Weighted Average Remaining Lease Term Operating leases 8.6 years 8.7 years Financing leases 15.2 years 13.2 years Weighted Average Discount Rate 1 Operating leases 3.7% 3.7% Financing leases 8.4% 7.5% 1
Present value of the net minimum lease payments	Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 185 $ 140 2021 228 192 2022 199 195 2023 148 197 2024 129 200 Thereafter 650 1,980 Total future minimum lease payments 1,539 2,904 Less amount representing interest (229 ) (1,197 ) Total present value of net future minimum lease payments $ 1,310 $ 1,707

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	3 Months Ended
	Mar. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Balance of loans serviced for others and fair value of mortgage servicing rights	(in thousands) March 31, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 106,990 $ 106,255 Fair value of mortgage servicing rights 625 813
Changes in mortgage servicing rights	Three months ended March 31, (in thousands) 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 238 $ 228 Originated 33 4 Amortization (1) (16 ) (11 ) Balance, end of period $ 255 $ 221 (1)

PLEDGED ASSETS (Tables)

PLEDGED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2020
Guarantees [Abstract]
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	(in thousands) March 31, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 55,337 $ 52,845 Loans receivable 434,738 434,329 Total pledged assets $ 490,075 $ 487,174

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Computation of earnings per share	Three months ended March 31, (in thousands, except per share data) 2020 2019 Net income $ 2,047 $ 2,434 Less: Undistributed earnings allocated to participating securities (34 ) (26 ) Net income allocated to common stock $ 2,013 $ 2,408 Weighted-average common shares issued 2,828 2,806 Less: Unvested restricted stock awards (40 ) (29 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,788 2,777 Add: Dilutive effect of stock options 9 12 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,797 2,789 Earnings per common share (basic) $ 0.72 $ 0.87 Earnings per common share (diluted) $ 0.72 $ 0.86

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Actual regulatory capital position and minimum capital requirements	Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total Capital (to risk-weighted assets) $ 117,738 12.97 % $ 72,604 8.0 % $ 95,292 10.5 % $ 90,755 10.0 % Tier 1 Capital (to risk-weighted assets) 107,012 11.79 54,453 6.0 77,141 8.5 72,604 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 107,012 11.79 40,840 4.5 63,528 7.0 58,991 6.5 Tier 1 Capital (to average assets) $ 107,012 9.65 $ 44,376 4.0 $ 44,376 4.0 $ 55,470 5.0 December 31, 2019 Total Capital (to risk-weighted assets) $ 114,421 12.84 % $ 71,278 8.0 % $ 93,553 10.5 % $ 89,098 10.0 % Tier 1 Capital (to risk-weighted assets) 105,430 11.83 53,459 6.0 75,733 8.5 $ 71,278 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 105,430 11.83 40,094 4.5 62,368 7.0 57,914 6.5 Tier 1 Capital (to average assets) $ 105,430 9.60 $ 43,944 4.0 43,944 4.0 $ 54,930 5.0

FAIR VALUE OF ASSETS AND LIAB_2

FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Assets measured at fair value	Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value March 31, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,391 $ — $ 4,391 Municipal bonds — 27,250 — 27,250 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,843 — 29,843 Collateralized mortgage obligations: U.S. Government agencies — 24,727 — 24,727 Corporate bonds — 5,122 — 5,122 Securities available-for-sale $ — $ 91,333 $ — $ 91,333 CRA mutual funds 900 — — 900 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,207 $ 1,207 Other real estate owned $ — $ — $ — $ — December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 4,644 $ — $ 4,644 Municipal bonds — 27,193 — 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 29,357 — 29,357 Collateralized mortgage obligations: U.S. Government agencies — 25,499 — 25,499 Corporate bonds — 5,108 — 5,108 Securities available-for-sale $ — $ 91,801 $ — $ 91,801 CRA mutual funds 882 — — 882 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 1,593 $ 1,593 Other real estate owned $ — $ — $ 314 $ 314
Carrying value and estimated fair values of financial instruments	(in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 March 31, 2020 Financial Assets Cash and cash equivalents $ 39,262 $ 39,262 $ 39,262 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 Securities available-for-sale, net 91,333 91,333 — 91,333 — CRA mutual fund 900 900 900 — — Federal Home Loan Bank of Boston stock 2,733 2,733 2,733 — — Loans held-for-sale 580 589 — — 589 Loans receivable, net 949,142 948,157 — — 948,157 Accrued interest receivable 3,437 3,437 3,437 — — Cash surrender value of life insurance policies 20,714 20,714 20,714 — — Financial Liabilities Demand (non-interest-bearing) $ 243,491 $ 243,491 $ — $ 243,491 $ — Demand (interest-bearing) 157,069 157,069 — 157,069 — Money market 222,746 222,746 — 222,746 — Savings and other 167,408 167,408 — 167,408 — Certificates of deposit 174,906 176,461 — 176,461 — Deposits 965,620 967,175 — 967,175 — Repurchase agreements 4,929 4,929 — 4,929 — FHLBB advances 40,932 41,167 — 41,167 — Subordinated debt 9,865 9,958 9,958 — — Note payable 237 241 — 241 — Finance lease obligation 1,707 1,935 — — 1,938 Accrued interest payable 297 297 297 — — December 31, 2019 Financial Assets Cash and cash equivalents $ 26,885 $ 26,885 $ 26,885 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 91,801 91,801 — 91,801 — CRA mutual fund 882 882 882 — — Federal Home Loan Bank of Boston stock 3,242 3,242 3,242 — — Loans held-for-sale 332 334 — — 334 Loans receivable, net 927,413 933,287 — — 933,287 Accrued interest receivable 3,415 3,415 3,415 — — Cash surrender value of life insurance policies 20,580 20,580 20,580 — — Financial Liabilities Demand (non-interest-bearing) $ 237,852 $ 237,852 $ — $ 237,852 $ — Demand (interest-bearing) 153,314 153,314 — 153,314 — Money market 239,504 239,504 — 239,504 — Savings and other 161,112 161,112 — 161,112 — Certificates of deposit 127,724 128,629 — 128,629 — Deposits 919,506 920,411 — 920,411 — Repurchase agreements 8,530 8,530 — 8,530 — FHLBB advances 50,887 51,028 — 51,028 — Subordinated debt 9,859 10,113 10,113 — — Note payable 246 251 — 251 — Finance lease liability 1,718 1,967 — — 1,967 Accrued interest payable 78 78 78 — —

SECURITIES - Composition of Sec

SECURITIES - Composition of Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized cost basis (1)
Available-for-sale
U.S. Government Agency notes	$ 4,218	$ 4,520
Municipal bonds	26,392	26,562
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	29,003	28,961
Collateralized mortgage obligations, U.S. Government Agencies	23,674	25,041
Corporate bonds	5,000	5,000
Total securities available-for-sale	88,287	90,084
Non-marketable securities
Federal Home Loan Bank of Boston stock	2,733	3,242
Gross unrealized gains
Available-for-sale
U.S. Government Agency notes	174	125
Municipal bonds	861	704
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	871	420
Collateralized mortgage obligations, U.S. Government Agencies	1,053	468
Corporate bonds	158	108
Total securities available-for-sale	3,117	1,825
Non-marketable securities
Federal Home Loan Bank of Boston stock
Gross unrealized losses
Available-for-sale
U.S. Government Agency notes	1	1
Municipal bonds	3	73
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	31	24
Collateralized mortgage obligations, U.S. Government Agencies		10
Corporate bonds	36
Total securities available-for-sale	71	108
Non-marketable securities
Federal Home Loan Bank of Boston stock
Fair value
Available-for-sale
U.S. Government Agency notes	4,391	4,644
Municipal bonds	27,250	27,193
Mortgage-backed securities, U.S. Government agencies and U.S. Government-sponsored enterprises	29,843	29,357
Collateralized mortgage obligations, U.S. Government Agencies	24,727	25,499
Corporate bonds	5,122	5,108
Total securities available-for-sale	91,333	91,801
CRA mutual funds	900	882
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 2,733	$ 3,242

SECURITIES - Aggreggate fair va

SECURITIES - Aggreggate fair value and gross unrealized loss of securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Less Than 12 Months, Fair value
Available-for-sale
U.S. Government Agency notes
Municipal bonds	1,060	6,273
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	2,808	5,781
Collateralized mortgage obligations: U.S. Government agencies		1,438
Corporate bonds	714
Total temporarily impaired securities	4,582	13,492
Less Than 12 Months, Unrealized losses
Available-for-sale
U.S. Government Agency notes
Municipal bonds	3	73
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	30	22
Collateralized mortgage obligations: U.S. Government agencies		10
Corporate bonds	36
Total temporarily impaired securities	69	105
12 Months or Longer, Fair value
Available-for-sale
U.S. Government Agency notes	126	195
Municipal bonds
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	108	704
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Total temporarily impaired securities	234	899
12 Months or Longer, Unrealized losses
Available-for-sale
U.S. Government Agency notes	1	1
Municipal bonds
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	1	2
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Total temporarily impaired securities	2	3
Total, Fair value
Available-for-sale
U.S. Government Agency notes	126	195
Municipal bonds	1,060	6,273
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	2,916	6,485
Collateralized mortgage obligations: U.S. Government agencies		1,438
Corporate bonds	714
Total temporarily impaired securities	4,816	14,391
Total, Unrealized losses
Available-for-sale
U.S. Government Agency notes	1	1
Municipal bonds	3	73
Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises	31	24
Collateralized mortgage obligations: U.S. Government agencies		10
Corporate bonds	36
Total temporarily impaired securities	$ 71	$ 108

SECURITIES - Amortized cost, fa

SECURITIES - Amortized cost, fair value and tax equivalent yield of securities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
U.S. Government agency notes - After 1 year but within 5 years
Amortized cost
Fair value
Yield
U.S. Government agency notes - After 5 years but within 10 years
Amortized cost	$ 2,496
Fair value	$ 2,567
Yield	3.48%
U.S. Government agency notes - Total
Amortized cost	$ 2,493
Fair value	$ 2,567
Yield	3.48%
Municipal bonds - After 5 year but within 10 years
Amortized cost	$ 1,727
Fair value	$ 1,841
Yield	3.16%
Municipal bonds - After 10 years
Amortized cost	$ 24,665
Fair value	$ 25,409
Yield	3.43%
Municipal bonds - Total
Amortized cost	$ 26,392
Fair value	$ 27,250
Yield	3.41%
Mortgage-backed securities and Collateralized mortgage obligations - U.S. Government agencies
Amortized cost	$ 54,399
Fair value	$ 56,394
Yield	2.85%
Corporate bonds - After 5 years but within 10 years
Amortized cost	$ 5,000
Fair value	$ 5,122
Yield	5.21%
Securities available-for-sale
Amortized cost	$ 88,287
Fair value	$ 91,333
Yield	3.17%

SECURITIES (Details Narrative)

SECURITIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Sales of securities available-for-sale		$ 965
Pre-tax loss on sale of securities available-for-sale		(9)
Related tax benefit on sale of securities available-for-sale		$ 2

LOANS - Composition of loans re

LOANS - Composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans receivable, net	$ 949,142	$ 927,413
Total
Residential 1-4 family	353,112	346,299
Residential 5+ multifamily	35,008	35,455
Construction of residential 1-4 family	12,214	11,889
Home equity lines of credit	31,907	33,798
Residential real estate	432,241	427,441
Commercial	310,436	289,795
Construction of commercial	10,922	8,466
Commercial real estate	321,358	298,261
Farm land	3,612	3,641
Vacant land	14,488	7,893
Real estate secured	771,699	737,236
Commercial and industrial	157,573	169,411
Municipal	20,964	21,914
Consumer	8,195	6,385
Loans receivable, gross	958,431	934,946
Deferred loan origination fees and costs, net	1,329	1,362
Allowance for loan losses	(10,618)	(8,895)
Loans receivable, net	949,142	927,413
Loans held-for-sale
Residential 1-4 family	$ 580	$ 332

LOANS - Composition of loans _2

LOANS - Composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Pass
Residential 1-4 family	$ 344,792	$ 337,302
Residential 5+ multifamily	33,180	33,619
Construction of residential 1-4 family	12,214	11,889
Home equity lines of credit	31,313	33,381
Residential real estate	421,499	416,191
Commercial	291,486	271,708
Construction of commercial	10,684	8,225
Commercial real estate	302,170	279,933
Farm land	1,918	1,934
Vacant land	14,390	7,834
Real estate secured	739,977	705,892
Commercial and industrial	155,326	167,458
Municipal	20,964	21,914
Consumer	8,157	6,344
Loans receivable, gross	924,424	901,608
Special mention
Residential 1-4 family	4,191	4,278
Residential 5+ multifamily	98	99
Construction of residential 1-4 family
Home equity lines of credit	387	312
Residential real estate	4,676	4,689
Commercial	4,687	10,964
Construction of commercial
Commercial real estate	4,687	10,964
Farm land
Vacant land	57	59
Real estate secured	9,420	15,712
Commercial and industrial	473	443
Municipal
Consumer	4	3
Loans receivable, gross	9,897	16,158
Substandard
Residential 1-4 family	4,129	4,719
Residential 5+ multifamily	1,730	1,737
Construction of residential 1-4 family
Home equity lines of credit	207	105
Residential real estate	6,066	6,561
Commercial	14,192	7,052
Construction of commercial	238	241
Commercial real estate	14,430	7,293
Farm land	1,694	1,707
Vacant land	41
Real estate secured	22,231	15,561
Commercial and industrial	1,774	1,510
Municipal
Consumer	34	38
Loans receivable, gross	24,039	17,109
Doubtful
Residential 1-4 family
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate
Commercial	71	71
Construction of commercial
Commercial real estate	71	71
Farm land
Vacant land
Real estate secured	71	71
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	71	71
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	353,112	346,299
Residential 5+ multifamily	35,008	35,455
Construction of residential 1-4 family	12,214	11,889
Home equity lines of credit	31,907	33,798
Residential real estate	432,241	427,441
Commercial	310,436	289,795
Construction of commercial	10,922	8,466
Commercial real estate	321,358	298,261
Farm land	3,612	3,641
Vacant land	14,488	7,893
Real estate secured	771,699	737,236
Commercial and industrial	157,573	169,411
Municipal	20,964	21,914
Consumer	8,195	6,385
Loans receivable, gross	$ 958,431	$ 934,946

LOANS - Composition of loans _3

LOANS - Composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current
Residential 1-4 family	$ 349,628	$ 344,085
Residential 5+ multifamily	34,147	34,594
Construction of residential 1-4 family	12,214	11,889
Home equity lines of credit	31,300	33,522
Residential real estate	427,289	424,090
Commercial	307,973	289,103
Construction of commercial	10,922	8,466
Commercial real estate	318,895	297,569
Farm land	3,436	3,461
Vacant land	14,447	7,852
Real estate secured	764,067	732,972
Commercial and industrial	157,341	169,262
Municipal	20,964	21,914
Consumer	8,190	6,382
Loans receivable, gross	950,562	930,530
Past due 30-59 days
Residential 1-4 family	3,211	971
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	337	152
Residential real estate	3,548	1,123
Commercial	2,114	336
Construction of commercial
Commercial real estate	2,114	336
Farm land	176	180
Vacant land
Real estate secured	5,838	1,639
Commercial and industrial	83	2
Municipal
Consumer	4
Loans receivable, gross	5,925	1,641
Past due 60-89 days
Residential 1-4 family	236	351
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	89	46
Residential real estate	325	397
Commercial	278	141
Construction of commercial
Commercial real estate	278	141
Farm land
Vacant land		41
Real estate secured	603	579
Commercial and industrial	25	146
Municipal
Consumer	1	1
Loans receivable, gross	629	726
Past due 90-179 days
Residential 1-4 family	37	200
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	103
Residential real estate	140	200
Commercial		71
Construction of commercial
Commercial real estate		71
Farm land
Vacant land	41
Real estate secured	181	271
Commercial and industrial	124	1
Municipal
Consumer		2
Loans receivable, gross	305	274
Past due 180 days and over
Residential 1-4 family		692
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	78	78
Residential real estate	939	1,631
Commercial	71	144
Construction of commercial
Commercial real estate	71	144
Farm land
Vacant land
Real estate secured	1,010	1,775
Commercial and industrial
Municipal
Consumer
Loans receivable, gross	1,010	1,775
Past due 30 days and over
Residential 1-4 family	3,484	2,214
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	607	276
Residential real estate	4,952	3,351
Commercial	2,463	692
Construction of commercial
Commercial real estate	2,463	692
Farm land	176	180
Vacant land	41	41
Real estate secured	7,632	4,264
Commercial and industrial	232	149
Municipal
Consumer	5	3
Loans receivable, gross	7,869	4,416
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
Construction of commercial
Commercial real estate
Farm land
Vacant land	41
Real estate secured	41
Commercial and industrial	27	1
Municipal
Consumer		2
Loans receivable, gross	68	3
Non-accrual
Residential 1-4 family	1,019	1,551
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	207	105
Residential real estate	2,087	2,517
Commercial	755	914
Construction of commercial
Commercial real estate	755	914
Farm land	181	186
Vacant land
Real estate secured	3,023	3,617
Commercial and industrial	97
Municipal
Consumer
Loans receivable, gross	$ 3,120	$ 3,617

LOANS - Troubled debt restructu

LOANS - Troubled debt restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)Integer	Mar. 31, 2019USD ($)Integer
Residential real estate
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Commercial real estate
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 133
Post-modification balance	$ 133
Consumer
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Troubled debt restructurings
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 133
Post-modification balance	$ 133
Interest only payments to sell property
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Rate reduction
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Modification and Rate reduction
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance
Workout refinance. Extension of new funds to pay outstanding taxes
Quantity of troubled debt restructurings | Integer	1
Pre-modification balance	$ 133
Post-modification balance	$ 133
Modification and term extension
Quantity of troubled debt restructurings | Integer
Pre-modification balance
Post-modification balance

LOANS - Changes in allowance fo

LOANS - Changes in allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Residential 1-4 family
Beginning balance	$ 2,393	$ 2,149
Acquisition Discount Transfer		10
Provision	306	(180)
Charge-offs
Recoveries	7	1
Ending balance	2,706	1,980
Residential 5+ multifamily
Beginning balance	446	413
Acquisition Discount Transfer
Provision	62	53
Charge-offs
Recoveries
Ending balance	508	466
Construction of residential 1-4 family
Beginning balance	75	83
Acquisition Discount Transfer
Provision	12	(6)
Charge-offs
Recoveries
Ending balance	87	77
Home equity lines of credit
Beginning balance	197	219
Acquisition Discount Transfer		1
Provision	81	(11)
Charge-offs
Recoveries
Ending balance	278	209
Residential real estate
Beginning balance	3,111	2,864
Acquisition Discount Transfer		11
Provision	461	(144)
Charge-offs
Recoveries	7	1
Ending balance	3,579	2,732
Commercial
Beginning balance	3,742	3,048
Acquisition Discount Transfer		488
Provision	758	276
Charge-offs		(9)
Recoveries	19
Ending balance	4,519	3,803
Construction of commercial
Beginning balance	104	122
Acquisition Discount Transfer
Provision	22	21
Charge-offs
Recoveries
Ending balance	126	143
Commercial real estate
Beginning balance	3,846	3,170
Acquisition Discount Transfer		488
Provision	780	297
Charge-offs		(9)
Recoveries	19
Ending balance	4,645	3,946
Farm land
Beginning balance	47	33
Acquisition Discount Transfer
Provision	5	14
Charge-offs
Recoveries
Ending balance	52	47
Vacant land
Beginning balance	71	100
Acquisition Discount Transfer
Provision	73	(11)
Charge-offs
Recoveries
Ending balance	144	89
Real estate secured
Beginning balance	7,075	6,167
Acquisition Discount Transfer		499
Provision	1,319	156
Charge-offs		(9)
Recoveries	26	1
Ending balance	8,420	6,814
Commercial real estate
Beginning balance	1,145	1,158
Acquisition Discount Transfer		164
Provision	(74)	(61)
Charge-offs		(30)
Recoveries		2
Ending balance	1,071	1,233
Municipal
Beginning balance	46	12
Acquisition Discount Transfer
Provision	7	2
Charge-offs
Recoveries
Ending balance	53	14
Consumer
Beginning balance	60	56
Acquisition Discount Transfer
Provision	51	(3)
Charge-offs	(12)	(6)
Recoveries	3	4
Ending balance	102	51
Unallocated
Beginning balance	569	438
Acquisition Discount Transfer
Provision	403	200
Charge-offs
Recoveries
Ending balance	972	638
Troubled debt restructurings
Beginning balance	8,895	7,831
Acquisition Discount Transfer		663
Provision	1,706	294
Charge-offs	(12)	(45)
Recoveries	29	7
Ending balance	$ 10,618	$ 8,750

LOANS - Composition of loans _4

LOANS - Composition of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Totals	$ 949,142	$ 927,413
Collectively evaluated Loans
Residential 1-4 family	348,369	340,847
Residential 5+ multifamily	34,031	34,478
Construction of residential 1-4 family	12,214	11,889
Home equity lines credit	31,700	33,693
Residential real estate	426,314	420,907
Commercial	306,125	285,462
Construction of commercial	10,922	8,466
Commercial real estate	317,047	293,928
Farm land	3,431	3,455
Vacant land	14,311	7,713
Real estate secured	761,103	726,003
Commercial and industrial	157,354	169,285
Municipal	20,964	21,914
Consumer	8,161	6,349
Unallocated allowance
Totals	947,582	923,551
Collectively evaluated Allowance
Residential 1-4 family	2,400	2,117
Residential 5+ multifamily	508	446
Construction of residential 1-4 family	87	75
Home equity lines credit	252	197
Residential real estate	3,247	2,835
Commercial	3,986	3,333
Construction of commercial	126	104
Commercial real estate	4,112	3,437
Farm land	52	47
Vacant land	136	66
Real estate secured	7,547	6,385
Commercial and industrial	1,063	1,143
Municipal	53	46
Consumer	75	59
Unallocated allowance	972	569
Totals	9,710	8,202
Individually evaluated Loans
Residential 1-4 family	4,743	5,452
Residential 5+ multifamily	977	977
Construction of residential 1-4 family
Home equity lines credit	207	105
Residential real estate	5,927	6,534
Commercial	4,311	4,333
Construction of commercial
Commercial real estate	4,311	4,333
Farm land	181	186
Vacant land	177	180
Real estate secured	10,596	11,233
Commercial and industrial	219	126
Municipal
Consumer	34	36
Unallocated allowance
Totals	10,849	11,395
Individually evaluated Allowance
Residential 1-4 family	306	276
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines credit	26
Residential real estate	332	276
Commercial	533	409
Construction of commercial
Commercial real estate	533	409
Farm land
Vacant land	8	5
Real estate secured	873	690
Commercial and industrial	8	2
Municipal
Consumer	27	1
Unallocated allowance
Totals	908	693
Total portfolio Loans
Residential 1-4 family	353,112	346,299
Residential 5+ multifamily	35,008	35,455
Construction of residential 1-4 family	12,214	11,889
Home equity lines credit	31,907	33,798
Residential real estate	432,241	427,441
Commercial	310,436	289,795
Construction of commercial	10,922	8,466
Commercial real estate	321,358	298,261
Farm land	3,612	3,641
Vacant land	14,488	7,893
Real estate secured	771,699	737,236
Commercial and industrial	157,573	169,411
Municipal	20,964	21,914
Consumer	8,195	6,385
Unallocated allowance
Totals	958,431	934,946
Total portfolio Allowance
Residential 1-4 family	2,706	2,393
Residential 5+ multifamily	508	446
Construction of residential 1-4 family	87	75
Home equity lines credit	278	197
Residential real estate	3,579	3,111
Commercial	4,519	3,742
Construction of commercial	126	104
Commercial real estate	4,645	3,846
Farm land	52	47
Vacant land	144	71
Real estate secured	8,420	7,075
Commercial and industrial	1,071	1,145
Municipal	53	46
Consumer	102	60
Unallocated allowance	972	569
Totals	$ 10,618	$ 8,895

LOANS - Credit quality segments

LOANS - Credit quality segments of loans receivable and allowance for loan losses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Totals	$ 949,142	$ 927,413
Collectively evaluated Loans
Performing loans	930,294	913,648
Potential problem loans	17,288	9,903
Impaired loans
Unallocated allowance
Totals	947,582	923,551
Collectively evaluated Allowance
Performing loans	8,044	7,251
Potential problem loans	694	382
Impaired loans
Unallocated allowance	972	569
Totals	9,710	8,202
Individually evaluated Loans
Performing loans
Potential problem loans
Impaired loans	10,849	11,395
Unallocated allowance
Totals	10,849	11,395
Individually evaluated Allowance
Performing loans
Potential problem loans
Impaired loans	908	693
Unallocated allowance
Totals	908	693
Total portfolio Loans
Performing loans	930,294	913,648
Potential problem loans	17,288	9,903
Impaired loans	10,849	11,395
Unallocated allowance
Totals	958,431	934,946
Total portfolio Allowance
Performing loans	8,044	7,251
Potential problem loans	694	382
Impaired loans	908	693
Unallocated allowance	972	569
Totals	$ 10,618	$ 8,895

LOANS - Certain data with respe

LOANS - Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Totals	$ 949,142	$ 927,413
Impaired loans with specific allowance - Loan balance - Book
Residential	4,015	4,111	$ 2,769
Home equity lines of credit	89		45
Residential real estate	4,104	4,111	2,814
Commercial	3,672	3,309	2,568
Construction of commercial			249
Farm land
Vacant land	41	41	42
Real estate secured	7,817	7,461	5,673
Commercial and industrial	166	93
Consumer	34	36
Totals	8,017	7,590	5,673
Impaired loans with specific allowance - Loan balance - Note
Residential	4,140	4,190	2,823
Home equity lines of credit	89		45
Residential real estate	4,229	4,190	2,868
Commercial	3,741	3,335	2,568
Construction of commercial			249
Farm land
Vacant land	41	41	42
Real estate secured	8,011	7,566	5,727
Commercial and industrial	170	97
Consumer	34	36
Totals	8,215	7,699	5,727
Impaired loans with specific allowance - Loan balance - Average
Residential	4,067	3,725	2,780
Home equity lines of credit	22	52	46
Residential real estate	4,089	3,777	2,826
Commercial	3,405	2,574	1,993
Construction of commercial		77	251
Farm land
Vacant land	41	42	42
Real estate secured	7,535	6,470	5,112
Commercial and industrial	111	16
Consumer	35	21
Totals	7,681	6,507	5,112
Impaired loans with specific allowance - Specific allowance
Residential	306	276	113
Home equity lines of credit	26		2
Residential real estate	332	276	115
Commercial	533	409	186
Construction of commercial			14
Farm land
Vacant land	8	5	2
Real estate secured	873	690	317
Commercial and industrial	8	2
Consumer	27	1
Totals	908	693	317
Impaired loans with specific allowance - Income recognized
Residential	42	162	27
Home equity lines of credit			1
Residential real estate	42	162	28
Commercial	44	90	24
Construction of commercial
Farm land
Vacant land	1	3	1
Real estate secured	87	255	53
Commercial and industrial	1	4
Consumer
Totals	88	259	53
Impaired loans with no specific allowance - Loan balance - Book
Residential	1,705	2,318	3,454
Home equity lines of credit	118	105	407
Residential real estate	1,823	2,423	3,861
Commercial	638	1,024	2,427
Construction of commercial			100
Farm land	181	186	212
Vacant land	137	139	145
Real estate secured	2,779	3,772	6,745
Commercial and industrial	53	33	498
Consumer
Totals	2,832	3,805	7,243
Impaired loans with no specific allowance - Loan balance - Note
Residential	2,019	3,081	4,758
Home equity lines of credit	464	450	495
Residential real estate	2,483	3,531	5,253
Commercial	1,254	1,733	3,912
Construction of commercial			108
Farm land	327	329	430
Vacant land	154	157	165
Real estate secured	4,218	5,750	9,868
Commercial and industrial	207	188	620
Consumer			1
Totals	4,425	5,938	10,489
Impaired loans with no specific allowance - Loan balance - Average
Residential	2,070	2,940	3,620
Home equity lines of credit	108	391	409
Residential real estate	2,178	3,331	4,029
Commercial	924	1,747	2,748
Construction of commercial		39	101
Farm land	184	203	215
Vacant land	138	143	146
Real estate secured	3,424	5,463	7,239
Commercial and industrial	86	265	500
Consumer		3
Totals	3,510	5,731	7,739
Impaired loans with no specific allowance - Income recognized
Residential	6	52	16
Home equity lines of credit
Residential real estate	6	52	16
Commercial	10	54	14
Construction of commercial			2
Farm land
Vacant land	2	10	3
Real estate secured	18	116	35
Commercial and industrial	1	4	2
Consumer
Totals	$ 19	$ 120	$ 37

LOANS (Details Narrative)

LOANS (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans
Commercial loans for other banks serviced by Company under loan participation agreements	$ 62,600	$ 67,000

LEASES - Assets and liabilities

LEASES - Assets and liabilities as well as the costs of operating and financial leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases - Assets
Operating - Other assets	$ 1,310		$ 1,360
Finance - Bank premises and equipment	1,478		1,503
Total Leased Assets	2,788		2,863
Leases - Liabilities
Operating - Other liabilities	1,310		1,360
Finance - Finance lease	1,707		1,718
Total lease liabilities	3,017		$ 3,078
Lease cost
Operating leases - Premises and equipment	62	$ 61
Finance leases: Amortization of leased assets - Premises and equipment	25	47
Finance leases: Interest on finance leases - Interest expense	36	46
Total lease cost	$ 123	$ 154
Weighted Average Remaining Lease Term
Operating leases	8 years 7 months 6 days	8 years 8 months 12 days
Financing leases	15 years 2 months 12 days	13 years 2 months 12 days
Weighted Average Discount Rate
Operating leases	3.70%	3.70%
Financing leases	8.40%	7.50%

LEASES - Present value of the n

LEASES - Present value of the net minimum lease payments (Details) $ in Thousands	Mar. 31, 2020USD ($)
Operating Leases
2020	$ 185
2021	228
2022	199
2023	148
2024	129
Thereafter	650
Total future minimum lease payments	1,539
Less amount representing interest	(229)
Total present value of net future minimum lease payments	1,310
Finance Leases
2020	140
2021	192
2022	195
2023	197
2024	200
Thereafter	1,980
Total future minimum lease payments	2,904
Less amount representing interest	(1,197)
Total present value of net future minimum lease payments	$ 1,707

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Notes to Financial Statements
Right-of-use assets and corresponding lease liability related to operating leases	$ 1,600	$ 1,600

MORTGAGE SERVICING RIGHTS - Bal

MORTGAGE SERVICING RIGHTS - Balance of loans serviced for others and fair value of mortgage servicing rights (Details) - Balance of loans serviced for others and fair value of mortgage servicing rights - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Residential mortgage loans serviced for others	$ 106,990	$ 106,255
Fair value of mortgage servicing rights	$ 625	$ 813

MORTGAGE SERVICING RIGHTS - Cha

MORTGAGE SERVICING RIGHTS - Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Mortgage Servicing Rights
Balance, beginning of period	$ 238	$ 228
Originated	33	4
Amortization	(16)	(11)
Balance, end of period	$ 255	$ 221

PLEDGED ASSETS - Securities and

PLEDGED ASSETS - Securities and loans pledged (Details) - Pledged Assets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Securities available-for-sale (at fair value)	$ 55,337	$ 52,845
Loans receivable	434,738	434,329
Total pledged assets	$ 490,075	$ 487,174

PLEDGED ASSETS (Details Narrati

PLEDGED ASSETS (Details Narrative) $ in Thousands	Mar. 31, 2020USD ($)
Guarantees [Abstract]
Securities pledged to secure public deposits	$ 46,340
Securities pledged to secure repurchase agreements	8,950
Securities pledged to secure FHLBB advances	$ 50

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net income	$ 2,047	$ 2,434
Less: Undistributed earnings allocated to participating securities	(34)	(26)
Net income allocated to common stock	2,013	2,408
Weighted average common shares issued	2,828	2,806
Less: Unvested restricted stock awards	(40)	(29)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,788	2,777
Add: Dilutive effect of stock options	9	12
Weighted average common shares outstanding used to calculate diluted earnings per common share	$ 2,797	$ 2,789
Earnings per common share (basic)	$ 0.72	$ 0.87
Earnings per common share (diluted)	$ 0.72	$ 0.86

SHAREHOLDERS' EQUITY - Actual r

SHAREHOLDERS' EQUITY - Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Total Capital (to risk-weighted assets)
Actual - Amount	$ 117,738	$ 114,421
Actual - Ratio	.1297	.1284
Minimum Capital Required For Capital Adequacy - Amount	$ 72,604	$ 71,278
Minimum Capital Required For Capital Adequacy - Ratio	.08	.080
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 95,292	$ 93,553
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	$ 90,755	$ 89,098
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	.100	.100
Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 107,012	$ 105,430
Actual - Ratio	.1179	.1183
Minimum Capital Required For Capital Adequacy - Amount	$ 54,453	$ 53,459
Minimum Capital Required For Capital Adequacy - Ratio	.060	.060
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 77,141	$ 75,733
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	$ 72,604	$ 71,278
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	0.080	0.080
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual - Amount	$ 107,012	$ 105,430
Actual - Ratio	.1179	.1183
Minimum Capital Required For Capital Adequacy - Amount	$ 40,840	$ 40,094
Minimum Capital Required For Capital Adequacy - Ratio	4.50%	4.50%
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 63,528	$ 62,368
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	$ 58,991	$ 57,914
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	6.50%	6.50%
Tier 1 Capital (to average assets)
Actual - Amount	$ 107,012	$ 105,430
Actual - Ratio	0.965	.0960
Minimum Capital Required For Capital Adequacy - Amount	$ 44,376	$ 43,944
Minimum Capital Required For Capital Adequacy - Ratio	0.040	0.040
Minimum Capital Required For Capital Adequacy Plus Required Capital Conservation Buffer - Amount	$ 44,376	$ 43,944
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	$ 55,470	$ 54,930
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions - Ratio	0.050	0.050

SHAREHOLDERS' EQUITY (Details N

SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Risk-weighted assets	$ 907,500	$ 891,000

BENEFITS (Details Narrative)

BENEFITS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Retirement Benefits [Abstract]
401(k) Plan contribution expense	$ 238	$ 239
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	23	21
Employee Stock Ownership Plan (ESOP)
ESOP expense	57	49
Other Retirement Plans
Total liability for endorsement split-dollar life insurance arrangements included in other liabilities	788	765
Expense under endorsement split-dollar life insurance arrangement	23	21
Expenses for Non-Qualified Deferred Compensation Plan	$ 33	$ 29

LONG TERM INCENTIVE PLANS (Deta

LONG TERM INCENTIVE PLANS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restricted stock
Compensation expense	$ 136	$ 100
Unrecognized compensation cost relating to awards	$ 660	$ 606
Forfeitures of restricted stock, shares		(100)
Performance-based restricted stock units
Compensation expense related to Phantom Stock Appreciation Units plan	$ 36	$ 64
Performance-based restricted stock units pursuant to 2017 Long-Term Incentive Plan, compensation expense	23
Short Term Incentive Plan (STIP)
STIP expense, included in compensation expenses	$ 153	$ 178
Options
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, shares	1,755
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, exercise price	$ 17.04
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, shares	1,350
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, exercise price	$ 17.04

FAIR VALUE OF ASSETS AND LIAB_3

FAIR VALUE OF ASSETS AND LIABILITIES - Assets measured at fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets at fair value
Assets at fair value on a recurring basis
U.S. Government Agency notes	$ 4,391	$ 4,644
Municipal bonds	27,250	27,193
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	29,843	29,357
Collateralized mortgage obligations: U.S. Government agencies	24,727	25,499
Corporate bonds	5,122	5,108
Securities available-for-sale	91,333	91,801
CRA mutual funds	900	882
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	1,207	1,593
Other real estate owned		314
Fair Value Measurements Using - Level 1
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds	900	882
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 2
Assets at fair value on a recurring basis
U.S. Government Agency notes	4,391	4,644
Municipal bonds	27,250	27,193
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises	29,843	29,357
Collateralized mortgage obligations: U.S. Government agencies	24,727	25,499
Corporate bonds	5,122	5,108
Securities available-for-sale	91,333	91,801
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value Measurements Using - Level 3
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
Mortgage backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises
Collateralized mortgage obligations: U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	1,207	1,593
Other real estate owned		$ 314

FAIR VALUE OF ASSETS AND LIAB_4

FAIR VALUE OF ASSETS AND LIABILITIES - Carrying value and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying value
Financial Assets
Cash and cash equivalents	$ 39,262	$ 26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale, net	91,333	91,801
CRA mutual fund	900	882
Federal Home Loan Bank of Boston stock	2,733	3,242
Loans held-for-sale	580	332
Loans receivable, net	949,142	927,413
Accrued interest receivable	3,437	3,415
Cash surrender value of life insurance policies	20,714	20,580
Financial Liabilities
Demand (non-interest-bearing)	243,491	237,852
Demand (interest-bearing)	157,069	153,314
Money market	222,746	239,504
Savings and other	167,408	161,112
Certificates of deposit	174,906	127,724
Deposits	965,620	919,506
Repurchase agreements	4,929	8,530
FHLBB advances	40,932	50,887
Subordinated debt	9,865	9,859
Note payable	237	246
Finance lease liability	1,707	1,718
Accrued interest payable	297	78
Estimated fair value
Financial Assets
Cash and cash equivalents	39,262	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale, net	91,333	91,801
CRA mutual fund	900	882
Federal Home Loan Bank of Boston stock	2,733	3,242
Loans held-for-sale	589	334
Loans receivable, net	948,157	933,287
Accrued interest receivable	3,437	3,415
Cash surrender value of life insurance policies	20,714	20,580
Financial Liabilities
Demand (non-interest-bearing)	243,491	237,852
Demand (interest-bearing)	157,069	153,314
Money market	222,746	239,504
Savings and other	167,408	161,112
Certificates of deposit	176,461	128,629
Deposits	967,175	920,411
Repurchase agreements	4,929	8,530
FHLBB advances	41,167	51,028
Subordinated debt	9,958	10,113
Note payable	241	251
Finance lease liability	1,935	1,967
Accrued interest payable	297	78
Fair Value Measurements Using - Level 1
Financial Assets
Cash and cash equivalents	39,262	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale, net
CRA mutual fund	900	882
Federal Home Loan Bank of Boston stock	2,733	3,242
Loans held-for-sale
Loans receivable, net
Accrued interest receivable	3,437	3,415
Cash surrender value of life insurance policies	20,714	20,580
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Subordinated debt	9,958	10,113
Note payable
Finance lease liability
Accrued interest payable	297	78
Fair Value Measurements Using - Level 2
Financial Assets
Cash and cash equivalents
Interest bearing time deposits with financial institutions
Securities available-for-sale, net	91,333	91,801
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)	243,491	237,852
Demand (interest-bearing)	157,069	153,314
Money market	222,746	239,504
Savings and other	167,408	161,112
Certificates of deposit	176,461	128,629
Deposits	967,175	920,411
Repurchase agreements	4,929	8,530
FHLBB advances	41,167	51,028
Subordinated debt
Note payable	241	251
Finance lease liability
Accrued interest payable
Fair Value Measurements Using - Level 3
Financial Assets
Cash and cash equivalents
Interest bearing time deposits with financial institutions
Securities available-for-sale, net
CRA mutual fund
Federal Home Loan Bank of Boston stock
Loans held-for-sale	589	334
Loans receivable, net	948,157	933,287
Accrued interest receivable
Cash surrender value of life insurance policies
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Subordinated debt
Note payable
Finance lease liability	1,938	1,967
Accrued interest payable

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	Apr. 27, 2020$ / shares
Subsequent Events [Abstract]
Dividend declared	$ .29