Salisbury Bancorp (SAL) 10-Q 6 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 03, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	0-24751
Entity Registrant Name	SALISBURY BANCORP INC
Entity Central Index Key	0001060219
Entity Tax Identification Number	06-1514263
Entity Incorporation, State or Country Code	CT
Entity Address, Address Line One	5 Bissell Street
Entity Address, City or Town	Lakeville
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06039
City Area Code	(860)
Local Phone Number	435-9801
Title of 12(b) Security	Common Stock, Par Value $0.10 per share
Trading Symbol	SAL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,843,292

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 6,828	$ 7,406
Interest bearing demand deposits with other banks	88,513	19,479
Total cash and cash equivalents	95,341	26,885
Interest bearing Time Deposits with Financial Institutions	750	750
Securities
Available-for-sale at fair value	95,720	91,801
CRA mutual fund at fair value	916	882
Federal Home Loan Bank of Boston stock at cost	3,158	3,242
Loans held-for-sale	2,761	332
Loans receivable, net (allowance for loan losses: $13,001 and $8,895)	1,031,593	927,413
Other real estate owned		314
Bank premises and equipment, net	18,727	17,385
Goodwill	13,815	13,815
Intangible assets (net of accumulated amortization: $5,132 and $4,884)	748	995
Accrued interest receivable	6,055	3,415
Cash surrender value of life insurance policies	17,572	20,580
Deferred taxes	2,252	1,249
Other assets	3,352	3,390
Total Assets	1,292,760	1,112,448
Deposits
Demand (non-interest bearing)	313,742	237,852
Demand (interest bearing)	201,760	153,314
Money market	270,097	239,504
Savings and other	181,691	161,112
Certificates of deposit	127,851	127,724
Total deposits	1,095,141	919,506
Repurchase agreements	10,885	8,530
Federal Home Loan Bank of Boston advances	43,880	50,887
Subordinated debt	9,877	9,859
Note payable	218	246
Finance lease obligations	1,685	1,718
Accrued interest and other liabilities	8,834	8,047
Total Liabilities	1,170,520	998,793
Shareholders' Equity
Outstanding: 2,843,292 and 2,825,912	284	283
Unearned compensation - restricted stock awards	(906)	(795)
Paid-in capital	45,171	44,490
Retained earnings	74,995	68,320
Accumulated other comprehensive income, net	2,696	1,357
Total Shareholders' Equity	122,240	113,655
Total Liabilities and Shareholders' Equity	$ 1,292,760	$ 1,112,448

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for loan losses on loans receivable	$ 13,001	$ 8,895
Accumulated amortization of intangible assets	$ 5,132	$ 4,884
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	2,843,292	2,825,912
Common stock, shares outstanding	2,843,292	2,825,912

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income
Interest and fees on loans	$ 10,362	$ 10,045	$ 30,662	$ 29,859
Interest on debt securities
Taxable	396	530	1,260	1,734
Tax exempt	157	166	513	355
Other interest and dividends	87	282	229	761
Total interest and dividend income	11,002	11,023	32,664	32,709
Interest expense
Deposits	764	1,879	3,261	5,674
Repurchase agreements	6	9	16	16
Finance lease	35	43	106	135
Note payable	3	4	11	12
Subordinated debt	156	156	468	468
Federal Home Loan Bank of Boston advances	113	265	472	956
Total interest expense	1,077	2,356	4,334	7,261
Net interest and dividend income	9,925	8,667	28,330	25,448
Provision for loan losses	686	94	4,198	539
Net interest and dividend income after provision for loan losses	9,239	8,573	24,132	24,909
Non-interest income
Trust and wealth advisory	1,068	1,023	3,129	2,973
Service charges and fees	711	1,003	2,214	2,935
Gains on sales of mortgage loans, net	707	42	1,020	50
Mortgage servicing, net	29	76	162	232
Gains on CRA mutual fund		6	22	29
Gains (losses) on available-for-sale securities, net	34	(9)	216	263
BOLI income and gains	719	86	986	253
Other	18	29	97	96
Total non-interest income	3,286	2,256	7,846	6,831
Non-interest expense
Salaries	3,114	3,042	8,375	8,994
Employee benefits	1,061	1,181	3,244	3,408
Premises and equipment	1,005	974	2,897	2,950
Data processing	569	534	1,666	1,620
Professional fees	635	572	2,020	1,690
OREO gains, losses and write-downs, net		84		406
Collections and other real estate owned	108	119	212	328
FDIC insurance	123	(9)	331	294
Marketing and community support	126	141	419	448
Amortization of intangibles	78	93	247	297
Other	440	453	1,572	1,398
Total non-interest expense	7,259	7,184	20,983	21,833
Income before income taxes	5,266	3,645	10,995	9,907
Income tax provision	910	657	1,858	1,781
Net income	4,356	2,988	9,137	8,126
Net income available to common stock	$ 4,288	$ 2,940	$ 9,006	$ 8,016
Basic earnings per common share	$ 1.53	$ 1.06	$ 3.22	$ 2.88
Diluted earnings per common share	1.53	1.05	3.21	2.87
Common dividends per share	$ 0.29	$ 0.28	$ 0.87	$ 0.84

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net income	$ 4,356	$ 2,988	$ 9,137	$ 8,126
Other comprehensive income (loss)
Net unrealized gains  on securities available-for-sale	113	313	1,912	2,704
Reclassification of net realized losses (gains) and write-downs in net income (1)	(34)	9	(216)	(263)
Unrealized gains on securities available-for-sale	79	322	1,696	2,441
Income tax (expense)	(17)	(67)	(357)	(512)
Other comprehensive income	62	255	1,339	1,929
Comprehensive income	$ 4,418	$ 3,243	$ 10,477	$ 10,055

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Deferred Compensation, Share-based Payments [Member]	AOCI Attributable to Parent [Member]	Total
Balances at December 31, 2019 at Dec. 31, 2018	$ 281	$ 43,770	$ 60,339	$ (711)	$ (220)	$ 103,459
Balances, shares at Dec. 31, 2018	2,806,781
Net income for period			8,126			8,126
Other comprehensive income, net of tax					1,929	1,929
Common stock dividends declared ($0.87 per share)			(2,361)			(2,361)
Stock options exercised		34				34
Forfeiture of stock awards		(31)		31
Forfeiture of stock awards, shares	(710)
Retired Common Stock
Retired common stock, shares	(14)
Stock based compensation-restricted stock awards				393		393
Balances at September 30, 2020 at Sep. 30, 2019	$ 282	44,372	66,104	(887)	1,709	111,580
Balances, shares at Sep. 30, 2019	2,823,212
Issuance of restricted common stock	$ 1	457		(458)
Issuance of restricted common stock, shares	11,530
Stock options exercised, shares	2,025
Issuance of director's restricted stock awards		142		(142)
Issuance of director's restricted stock awards, shares	3,600
Balances at December 31, 2019 at Jun. 30, 2019	$ 282	44,382	63,905	(1,075)	1,454	108,948
Balances, shares at Jun. 30, 2019	2,823,476
Net income for period			2,988			2,988
Other comprehensive income, net of tax					255	255
Common stock dividends declared ($0.87 per share)			(789)			(789)
Stock options exercised
Forfeiture of stock awards		(10)		10
Forfeiture of stock awards, shares	(250)
Retired Common Stock
Retired common stock, shares	(14)
Stock based compensation-restricted stock awards				178		178
Balances at September 30, 2020 at Sep. 30, 2019	$ 282	44,372	66,104	(887)	1,709	111,580
Balances, shares at Sep. 30, 2019	2,823,212
Balances at December 31, 2019 at Dec. 31, 2019	$ 283	44,490	68,320	(795)	1,357	113,655
Balances, shares at Dec. 31, 2019	2,825,912
Net income for period			9,137			9,137
Other comprehensive income, net of tax					1,339	1,339
Common stock dividends declared ($0.87 per share)			(2,462)			(2,462)
Stock options exercised		53				53
Forfeiture of stock awards		(50)		50
Forfeiture of stock awards, shares	(1,200)
Stock based compensation-restricted stock awards		125		393		518
Balances at September 30, 2020 at Sep. 30, 2020	$ 284	45,171	74,995	(906)	2,696	122,240
Balances, shares at Sep. 30, 2020	2,843,292
Issuance of restricted common stock	$ 1	439		(440)
Issuance of restricted common stock, shares	12,275
Stock options exercised, shares	3,105
Issuance of director's restricted stock awards		114		(114)
Issuance of director's restricted stock awards, shares	3,200
Balances at December 31, 2019 at Jun. 30, 2020	$ 284	45,096	71,461	(1,031)	2,634	118,444
Balances, shares at Jun. 30, 2020	2,843,292
Net income for period			4,356			4,356
Other comprehensive income, net of tax					62	62
Common stock dividends declared ($0.87 per share)			(822)			(822)
Forfeiture of stock awards		(21)		21
Forfeiture of stock awards, shares	(500)
Stock based compensation-restricted stock awards		78		122		200
Balances at September 30, 2020 at Sep. 30, 2020	$ 284	45,171	74,995	(906)	2,696	122,240
Balances, shares at Sep. 30, 2020	2,843,292
Issuance of restricted common stock		$ 18		$ (18)
Issuance of restricted common stock, shares	500

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared	$ 0.29	$ 0.28	$ 0.87	$ 0.84

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating Activities
Net income	$ 9,137	$ 8,126
(Accretion), amortization and depreciation
Securities	388	238
Bank premises and equipment	1,071	1,210
Core deposit intangible	247	297
Modification fees on Federal Home Loan Bank of Boston advances	64	174
Subordinated debt issuance costs	18	18
Mortgage servicing rights	84	36
Fair value adjustment on loans		(64)
Fair value adjustment on deposits	(4)	(6)
(Gains) and losses, including write-downs
Sales and calls of securities available-for-sale, net	(216)	(263)
CRA Mutual Fund	(22)	(29)
Sales of loans, excluding capitalized servicing rights	(843)	(50)
Other real estate owned		406
Provision for loan losses	4,198	539
Proceeds from loans sold	45,246	6,107
Loans originated for sale	(46,832)	(6,563)
Increase in deferred loan origination fees and costs, net	2,321	62
Mortgage servicing rights originated	(413)	(25)
Increase in interest receivable	(2,640)	(277)
Deferred tax benefit	(1,359)	(176)
Decrease (increase) in prepaid expenses	295	(147)
Increase in cash surrender value of life insurance policies	(986)	(253)
Decrease in income tax receivable		137
Increase in income tax payable	1,412
Decrease in other assets	42	728
Decrease in accrued expenses	(584)	(348)
Increase in interest payable	132	270
Decrease in other liabilities	(144)	(147)
Stock based compensation-restricted stock awards	518	393
Net cash provided by operating activities	11,130	10,393
Investing Activities
Redemption (purchase) of Federal Home Loan Bank of Boston stock, net of redemptions	84	1,921
Purchases of securities available-for-sale	(27,802)	(51,931)
Purchases of interest-bearing time deposits with financial institutions		(786)
Proceeds from sales of securities available-for-sale	12,526	41,802
Proceeds from calls of securities available-for-sale	655	75
Proceeds from principal payments and maturities of securities available-for-sale	12,226	9,523
Reinvestment of CRA Mutual Fund	(12)	(16)
Loan originations and principal collections, net	(110,743)	(6,405)
Recoveries of loans previously charged off	44	64
Proceeds from sales of other real estate owned	314	1,086
Capital expenditures	(2,384)	(1,760)
Purchase of life insurance policies		(5,750)
Proceeds from life insurance policy	3,994
Net cash used by investing activities	(111,098)	(12,177)
Financing Activities
Increase in deposit transaction accounts, net	175,508	47,642
Increase (decrease) in time deposits, net	131	(23,193)
Increase in securities sold under agreements to repurchase, net	2,355	4,484
Federal Home Loan Bank of Boston long term advances	46,001
Federal Home Loan Bank of Boston long-term maturities/payments	(21,000)	(35,000)
Federal Home Loan Bank of Boston short-term advances, net change	(30,000)	5,500
Principal payments on Amortizing FHLB Advance	(2,072)
Principal payments on note payable	(28)	(25)
Decrease in finance lease obligation	(62)	(194)
Stock options exercised	53	34
Common stock dividends paid	(2,462)	(2,361)
Net cash provided by (applied to) by financing activities	168,424	(3,113)
Net increase (decrease) in cash and cash equivalents	68,456	(4,897)
Cash and cash equivalents, beginning of period	26,885	58,445
Cash and cash equivalents, end of period	95,341	53,548
Cash paid for interest	4,124	6,805
Cash paid for income taxes	1,805	1,593
Non-cash transfers:
Adoption of ASU 2016-02 - Other assets		1,552
Adoption of ASU 2016-02 - Other liabilities		$ (1,552)

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
NOTE 1 - 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 September 30, 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 in March 2020 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. On July 8, 2020, Salisbury reopened its branches to customers. 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 was to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to small businesses. While the states in the Bank's market area have begun a phased reopening, economic conditions have not returned to pre-COVID-19 levels and many businesses remain closed or are operating at reduced capacity. A resurgence of the virus may cause the states in the Bank's market area to close businesses again. If this were to happen, 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 economic shutdown will have on Salisbury's operations, Salisbury 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. 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 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. In October 2020, the FASB issued ASU 2020-08, "Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. Under current generally accepted accounting principles, entities amortize the premium on purchased callable debt securities to the earliest call date. If a callable debt security contains additional future call dates, entities should consider whether the amortized cost basis exceeded the amount repayable by the issuer at the next call date. If so, the excess or premium should be amortized to the next call date. This ASU clarifies that the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity shall reset the effective yield using the payment terms of the debt security. ASU 2020-08 is effective for interim and annual reporting periods beginning after December 15, 2020; early adoption is not permitted. ASU 2020-08 is not expected to have a material impact 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 were 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 meets the new definition of non-accelerated filer while continuing to qualify as a "smaller reporting company”, and will 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 the Bank 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.

NOTE 2 - SECURITIES

NOTE 2 - SECURITIES	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
NOTE 2 - SECURITIES	NOTE 2 - SECURITIES The composition of securities (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value September 30, 2020 Available-for-sale U.S. Government Agency notes $ 5,643 $ 176 $ 32 $ 5,787 Municipal bonds 25,219 1,348 9 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,256 1,288 36 36,508 Collateralized mortgage obligations: U.S. Government agencies 18,439 598 — 19,037 Corporate bonds 7,750 101 21 7,830 Total securities available-for-sale $ 92,307 $ 3,511 $ 98 $ 95,720 CRA mutual fund $ 916 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,158 $ — $ — $ 3,158 (in thousands) Amortized cost basis 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- 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 sold $ 1.9 34 7 12.5 216 45 13.7 9 2 41.8 263 55 The amortized cost, fair value and tax equivalent yield of securities, by maturity September 30, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ 2,496 $ 2,567 3.48 % Municipal bonds After 5 year but within 10 years 2,224 2,379 2.85 After 10 years 22,995 24,179 3.05 Total 25,219 26,558 3.03 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 56,842 58,765 2.15 Corporate bonds After 5 years but within 10 years 7,750 7,830 5.20 Securities available-for-sale $ 92,307 $ 95,720 2.68 % (1) Yield is based on amortized cost. The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position Less than 12 Months 12 Months or Longer Total September 30, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ 1,561 $ 31 $ 75 $ 1 $ 1,636 $ 32 Municipal bonds 2,194 9 — — 2,194 9 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 6,729 35 65 1 6,794 36 Corporate bonds 1,479 21 — — 1,479 21 Total temporarily impaired securities $ 11,963 $ 96 $ 140 $ 2 $ 12,103 $ 98 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 Salisbury evaluates securities for other-than-temporary impairment ("OTTI”) where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security's amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable securities were OTTI at September 30, 2020. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Six securities had unrealized losses at September 30, 2020, which approximated 1.94% 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 September 30, 2020. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. Three securities had unrealized losses at September 30, 2020, which approximated 0.43% 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 September 30, 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. Nine securities had unrealized losses at September 30, 2020, which approximated 0.53% 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 September 30, 2020. Corporate bonds: Salisbury regularly monitors and analyzes its corporate bond portfolio for credit quality. Two securities had unrealized losses at September 30, 2020, which approximated 1.38% 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 September 30, 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 September 30, 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.

NOTE 3 - LOANS

NOTE 3 - LOANS	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
NOTE 3 - LOANS	NOTE 3 - LOANS The composition of loans receivable and loans held-for-sale (In thousands) September 30, 2020 December 31, 2019 Residential 1-4 family $ 352,547 $ 346,299 Residential 5+ multifamily 35,880 35,455 Construction of residential 1-4 family 11,899 11,889 Home equity lines of credit 28,895 33,798 Residential real estate 429,221 427,441 Commercial 308,725 289,795 Construction of commercial 24,687 8,466 Commercial real estate 333,412 298,261 Farm land 3,295 3,641 Vacant land 13,694 7,893 Real estate secured 779,622 737,236 Commercial and industrial (1) 237,448 169,411 Municipal 20,797 21,914 Consumer 7,686 6,385 Loans receivable, gross 1,045,553 934,946 Deferred loan origination (fees) and costs, net (959 ) 1,362 Loans receivable, gross $ 1,044,594 $ 936,308 Allowance for loan losses (13,001 ) (8,895 ) Loans receivable, net $ 1,031,593 $ 927,413 Loans held-for-sale Residential 1-4 family $ 2,761 $ 332 (1) Commercial and industrial balance as of September 30, 2020 includes $99.9 million of Paycheck Protection Program loans. 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 September 30, 2020 and December 31, 2019, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $ 62.7 67.0 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 38% 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 9% of gross commercial loan receivables is to educational institutions and approximately 5% 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 (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2020 Residential 1-4 family $ 342,812 $ 5,846 $ 3,889 $ — $ — $ 352,547 Residential 5+ multifamily 34,082 93 1,705 — — 35,880 Construction of residential 1-4 family 11,899 — — — — 11,899 Home equity lines of credit 28,304 358 233 — — 28,895 Residential real estate 417,097 6,297 5,827 — — 429,221 Commercial 292,298 2,207 14,149 71 — 308,725 Construction of commercial 24,455 — 232 — — 24,687 Commercial real estate 316,753 2,207 14,381 71 — 333,412 Farm land 1,624 — 1,671 — — 3,295 Vacant land 13,604 52 38 — — 13,694 Real estate secured 749,078 8,556 21,917 71 — 779,622 Commercial and industrial 235,135 1,259 694 360 — 237,448 Municipal 20,797 — — — — 20,797 Consumer 7,655 1 30 — — 7,686 Loans receivable, gross $ 1,012,665 $ 9,816 $ 22,641 $ 431 $ — $ 1,045,553 (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 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 September 30, 2020 Residential 1-4 family $ 351,642 $ 122 $ 440 $ 257 $ 86 $ 905 $ — $ 1,353 Residential 5+ multifamily 35,019 — — — 861 861 — 861 Construction of residential 1-4 family 11,899 — — — — — — — Home equity lines of credit 28,611 29 46 71 138 284 — 233 Residential real estate 427,171 151 486 328 1,085 2,050 — 2,447 Commercial 307,209 864 147 — 505 1,516 — 1,262 Construction of commercial 24,687 — — — — — — — Commercial real estate 331,896 864 147 — 505 1,516 — 1,262 Farm land 3,134 161 — — — 161 — 166 Vacant land 13,694 — — — — — — 38 Real estate secured 775,895 1,176 633 328 1,590 3,727 — 3,913 Commercial and industrial 236,790 250 — 300 108 658 11 757 Municipal 20,797 — — — — — — — Consumer 7,637 49 — — — 49 — — Loans receivable, gross $ 1,041,119 $ 1,475 $ 633 $ 628 $ 1,698 $ 4,434 $ 11 $ 4,670 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 For the three months ending September 30, 2020 For the three months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 1 $ 791 $ 791 Commercial real estate — — — 1 274 274 Consumer — — — — — — Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes — — — — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 For the nine months ending September 30, 2020 For the nine months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 3 $ 1,400 $ 1,400 Commercial real estate 1 133 133 1 274 274 Consumer — — — 1 42 42 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — 3 651 651 Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716 Allowance for Loan Losses Changes in the allowance for loan losses Three months ended September 30, 2020 Three months ended September 30, 2019 (in thousands) Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 3,048 $ 69 $ (11 ) $ 1 $ 3,107 $ 2,074 $ 175 $ (31 ) $ 1 $ 2,219 Residential 5+ multifamily 589 14 — — 603 495 (5 ) — — 490 Construction of residential 1-4 family 87 10 — — 97 79 4 — — 83 Home equity lines of credit 283 (8 ) — — 275 224 (11 ) — — 213 Residential real estate 4,007 85 (11 ) 1 4,082 2,872 163 (31 ) 1 3,005 Commercial 5,160 317 (14 ) 1 5,464 3,777 (149 ) (20 ) — 3,608 Construction of commercial 205 195 — — 400 127 23 — — 150 Commercial real estate 5,365 512 (14 ) 1 5,864 3,904 (126 ) (20 ) — 3,758 Farm land 60 5 — — 65 47 — — — 47 Vacant land 182 (11 ) — — 171 89 (14 ) — — 75 Real estate secured 9,614 591 (25 ) 2 10,182 6,912 23 (51 ) 1 6,885 Commercial and industrial 1,515 (44 ) — 1 1,472 1,176 74 (97 ) 14 1,167 Municipal 36 5 — — 41 30 17 — — 47 Consumer 74 40 (41 ) 7 80 81 (26 ) (5 ) 3 53 Unallocated 1,132 94 — — 1,226 688 6 — — 694 Totals $ 12,371 $ 686 $ (66 ) $ 10 $ 13,001 $ 8,887 $ 94 $ (153 ) $ 18 $ 8,846 Nine months ended September 30, 2020 Nine months ended September 30, 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 $ 716 $ (11 ) $ 9 $ 3,107 $ 2,149 $ 10 $ 90 $ (32 ) $ 2 $ 2,219 Residential 5+ multifamily 446 199 (42 ) — 603 413 — 77 — — 490 Construction of residential 1-4 family 75 22 — — 97 83 — — — — 83 Home equity lines of credit 197 78 — — 275 219 1 (7 ) — — 213 Residential real estate 3,111 1,015 (53 ) 9 4,082 2,864 11 160 (32 ) 2 3,005 Commercial 3,742 1,719 (17 ) 20 5,464 3,048 488 114 (44 ) 2 3,608 Construction of commercial 104 296 — — 400 122 — 28 — — 150 Commercial real estate 3,846 2,015 (17 ) 20 5,864 3,170 488 142 (44 ) 2 3,758 Farm land 47 18 — — 65 33 — 14 — — 47 Vacant land 71 100 — — 171 100 — (25 ) — — 75 Real estate secured 7,075 3,148 (70 ) 29 10,182 6,167 499 291 (76 ) 4 6,885 Commercial and industrial 1,145 326 — 1 1,472 1,158 164 (54 ) (146 ) 45 1,167 Municipal 46 (5 ) — — 41 12 — 35 — — 47 Consumer 60 72 (66 ) 14 80 56 — 11 (29 ) 15 53 Unallocated 569 657 — — 1,226 438 — 256 — — 694 Totals $ 8,895 $ 4,198 $ (136 ) $ 44 $ 13,001 $ 7,831 $ 663 $ 539 $ (251 ) $ 64 $ 8,846 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 September 30, 2020 Residential 1-4 family $ 347,701 $ 2,724 $ 4,846 $ 383 $ 352,547 $ 3,107 Residential 5+ multifamily 34,913 603 967 — 35,880 603 Construction of residential 1-4 family 11,899 97 — — 11,899 97 Home equity lines of credit 28,662 261 233 14 28,895 275 Residential real estate 423,175 3,685 6,046 397 429,221 4,082 Commercial 304,328 5,194 4,397 270 308,725 5,464 Construction of commercial 24,687 400 — — 24,687 400 Commercial real estate 329,015 5,594 4,397 270 333,412 5,864 Farm land 3,129 65 166 — 3,295 65 Vacant land 13,524 168 170 3 13,694 171 Real estate secured 768,843 9,512 10,779 670 779,622 10,182 Commercial and industrial 236,572 1,092 876 380 237,448 1,472 Municipal 20,797 41 — — 20,797 41 Consumer 7,656 62 30 18 7,686 80 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 (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 September 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,018,802 $ 9,702 $ — $ — $ 1,018,802 $ 9,702 Potential problem loans 1 15,066 1,005 — — 15,066 1,005 Impaired loans — — 11,685 1,068 11,685 1,068 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 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 fair value of collateral, in accordance with the most likely means of recovery. 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 Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income recognized September 30, 2020 Residential $ 3,854 $ 3,972 $ 4,034 $ 383 $ 67 $ 1,959 $ 2,335 $ 1,912 $ 20 Home equity lines of credit 75 75 77 14 — 158 507 111 1 Residential real estate 3,929 4,047 4,111 397 67 2,117 2,842 2,023 21 Commercial 3,099 3,148 3,401 270 104 1,298 1,940 978 31 Construction of commercial — — — — — — — — — Farm land — — — — — 166 322 177 — Vacant land 38 40 40 3 — 132 148 136 7 Real estate secured 7,066 7,235 7,552 670 171 3,713 5,252 3,314 59 Commercial and industrial 824 827 422 380 3 52 205 59 2 Consumer 30 30 33 18 1 — — — — Totals $ 7,920 $ 8,092 $ 8,007 $ 1,068 $ 175 $ 3,765 $ 5,457 $ 3,373 $ 61 Note: The income recognized is for the nine month period ended September 30, 2020. 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 Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income 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

NOTE 4 - LEASES

NOTE 4 - LEASES	9 Months Ended
	Sep. 30, 2020
Note 4 - Leases
NOTE 4 - LEASES	NOTE 4 - LEASES T he following table provides the assets and liabilities as well as the costs of operating and finance leases ($ in thousands, except lease term and discount rate) Classification September 30, 2020 December 31, 2019 Assets Operating Other assets $ 1,235 $ 1,360 Finance Bank premises and equipment 1 1,427 1,503 Total Leased Assets $ 2,662 $ 2,863 Liabilities Operating Other liabilities $ 1,213 $ 1,360 Finance Finance lease 1,685 1,718 Total lease liabilities $ 2,898 $ 3,078 1 Lease cost Classification Nine months ended September 30, 2020 Three months ended September 30, 2020 Operating leases Premises and equipment $ 188 $ 64 Finance leases: Amortization of leased assets Premises and equipment 76 25 Interest on finance leases Interest expense 107 36 Total lease cost $ 371 $ 125 Lease cost Classification Nine months ended September 30, 2019 Three months ended September 30, 2019 Operating leases Premises and equipment $ 193 $ 70 Finance leases: Amortization of leased assets Premises and equipment 174 54 Interest on finance leases Interest expense 135 43 Total lease cost $ 502 $ 167 Weighted Average Remaining Lease Term September 30, 2020 December 31, 2019 Operating leases 8.0 years 8.2 years Financing leases 14.7 years 15.1 years Weighted Average Discount Rate 1 Operating leases 3.73% 3.70% Financing leases 8.38% 8.41% 1 The following is a schedule by years of the present value of the net minimum lease payments Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 64 $ 47 2021 250 192 2022 199 195 2023 148 197 2024 129 200 Thereafter 623 1,980 Total future minimum lease payments 1,413 2,811 Less amount representing interest (200 ) (1,126 ) Total present value of net future minimum lease payments $ 1,213 $ 1,685

NOTE 5 - MORTGAGE SERVICING RIG

NOTE 5 - MORTGAGE SERVICING RIGHTS	9 Months Ended
	Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
NOTE 5 - MORTGAGE SERVICING RIGHTS	NOTE 5 - MORTGAGE SERVICING RIGHTS (in thousands) September 30, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 130,304 $ 106,255 Fair value of mortgage servicing rights 714 813 Changes in mortgage servicing rights Three months ended Nine months ended Periods ended September 30, (in thousands) 2020 2019 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 353 $ 209 $ 238 $ 228 Originated 270 21 413 25 Amortization (1) (56 ) (13 ) (84 ) (36 ) Balance, end of period $ 567 $ 217 $ 567 $ 217 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

NOTE 6 - PLEDGED ASSETS

NOTE 6 - PLEDGED ASSETS	9 Months Ended
	Sep. 30, 2020
Guarantees and Product Warranties [Abstract]
NOTE 6 - PLEDGED ASSETS	NOTE 6 - PLEDGED ASSETS (in thousands) September 30, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 61,542 $ 52,845 Loans receivable (at book value) 427,828 434,329 Total pledged assets $ 489,370 $ 487,174 At September 30, 2020, securities were pledged as follows: $ 46.86 14.66 0.02

NOTE 7 - DERIVATIVES AND HEDGIN

NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES	NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives Salisbury is exposed to certain risk arising from both its business operations and economic conditions. The Bank principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Bank manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Bank enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Bank uses derivative financial instruments to manage differences in the amount, timing, and duration of the Bank's known or expected cash receipts and its known or expected cash payments principally related to its portfolio of loans to first-time home buyers. Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain pools of its pre-payable fixed-rate assets due to changes in benchmark interest rates. Salisbury uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, Federal Funds. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for Salisbury receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of Sep tember 30, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Loans receivable (1) $ 10,003 $ — $ 3 $ — Total $ 10,003 $ — $ 3 $ — (1) The table below presents the fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet As of September 30, 2020 (in thousands) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other liabilities $ 3 Total Derivatives designated as hedge instruments $ 3 The table below presents the effect of the Company's derivative financial instruments on the Income Statement Three months ended September 30, 2020 (in thousands) Interest Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $ — $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 3 — Derivatives designated as hedging instruments $ (3 ) $ — Credit-Risk Related C ontingent Features Salisbury has an agreement with its derivative counterparty that contains a provision where if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Bank could also be declared in default on its derivative obligations. The agreement also contains a provision where if the Bank fails to maintain its status as a well / adequate capitalized institution, then Salisbury could be required to post cash or certain marketable securities issued by the U.S. Treasury or U.S. Government-sponsored enterprises as collateral. The minimum amount that Salisbury would have to post as collateral is $250 thousand. As of September 30, 2020, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $3 thousand. As of September 30, 2020, Salisbury has not posted any collateral related to these agreements. If Salisbury had breached any of these provisions at September 30, 2020, the Bank could have been required to settle its obligations under the agreements at their termination value of $3 thousand.

NOTE 8 - EARNINGS PER SHARE

NOTE 8 - EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
NOTE 8 - EARNINGS PER SHARE	NOTE 8 - 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) Three months ended Nine months ended Periods ended September 30, (in thousands, except per share data) 2020 2019 2020 2019 Net income $ 4,356 $ 2,988 $ 9,137 $ 8,126 Less: Undistributed earnings allocated to participating securities (67 ) (48 ) (131 ) (110 ) Net income allocated to common stock $ 4,288 $ 2,940 $ 9,006 $ 8,016 Weighted-average common shares issued 2,843 2,823 2,835 2,815 Less: Unvested restricted stock awards (44 ) (40 ) (41 ) (34 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,799 2,783 2,794 2,781 Add: Dilutive effect of stock options 8 12 8 12 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,807 2,795 2,802 2,793 Earnings per common share (basic) $ 1.53 $ 1.06 $ 3.22 $ 2.88 Earnings per common share (diluted) $ 1.53 $ 1.05 $ 3.21 $ 2.87

NOTE 9 - SHAREHOLDERS' EQUITY

NOTE 9 - SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
NOTE 9 - SHAREHOLDERS' EQUITY	NOTE 9 - 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. As of September 30, 2020, the Bank exceeded the 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 September 30, 2020 and December 31, 2019 were $ 916.3 891.0 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 September 30, 2020 Total Capital (to risk-weighted assets) $ 124,616 13.60 % $ 73,307 8.0 % $ 96,216 10.5 % $ 91,634 10.0 % Tier 1 Capital (to risk-weighted assets) 113,142 12.35 54,980 6.0 77,889 8.5 73,307 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 113,142 12.35 41,235 4.5 64,144 7.0 59,562 6.5 Tier 1 Capital (to average assets) $ 113,142 8.93 50,704 4.0 50,704 4.0 63,380 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.

NOTE 10 - BENEFITS

NOTE 10 - BENEFITS	9 Months Ended
	Sep. 30, 2020
Retirement Benefits [Abstract]
NOTE 10 - BENEFITS	NOTE 10 - BENEFITS Salisbury's 401(k) Plan expense was $ 229 231 667 662 (32) 21 7 69 ESOP Salisbury offers an ESOP to eligible employees. Under the ESOP, Salisbury may make discretionary contributions to the ESOP. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 56 105 170 207 Other Retirement Plans A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. Salisbury's expense for this plan was $ 33 29 100 87 Grants of Restricted Stock and Options Restricted stock Restricted stock expense was $ 122 131 393 348 22 24 71 63 14,975 536 500 18 906 887 21 500 50 1,200 10 250 31 710 Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted 6,800 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 $ 18 84 101 203 The performance goal for the March 2019 grant 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. In July 2020, the Compensation Committee granted an additional 7,250 units under the RSU plan. The performance goal for this tranche is based on the relative increase in the Bank's tangible book value compared with a pre-determined group of peer banks over the performance period for threshold performance. Vesting will range from 50% of target for achieving threshold performance, to 100% of target for achieving tangible book value growth of at least 50% but less than 55% of the peer group, to 150% of target for achieving in excess of target payout performance and, if the performance goal is achieved. Compensation expense of $ 80 23 127 46 Options Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. In the second and third quarters 2020, there were no stock options exercised and year to date 2020, 1,755 17.04 1,350 17.04 2,025 17.04 1,350 31.11

NOTE 11 - FAIR VALUE OF ASSETS

NOTE 11 - FAIR VALUE OF ASSETS AND LIABILITIES	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
NOTE 11 - FAIR VALUE OF ASSETS AND LIABILITIES	NOTE 11 - FAIR VALUE OF ASSETS AND LIABILITIES Salisbury uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, other assets are recorded at fair value on a nonrecurring basis, such as loans held for sale, collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. Salisbury adopted ASC 820-10, "Fair Value Measurement - Overall,” which provides a framework for measuring fair value under generally accepted accounting principles. In accordance with ASC 820-10, Salisbury groups its financial assets and financial liabilities measured at fair value in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information ("inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Salisbury's market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1. Quoted prices in active markets for identical assets. Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 may also include U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2. Significant other observable inputs. Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Currently, Salisbury uses an interest rate swap to manage its interest rate risk. The fair value of the interest rate swap is determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of ASC 820, Salisbury incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Bank has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. 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 nine-month period ended September 30, 2020. Assets and liabilities measured at fair value Fair Value Measurements Using Assets and (in thousands) Level 1 Level 2 Level 3 liabilities at fair value September 30, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 5,787 $ — $ 5,787 Municipal bonds — 26,558 — 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 36,508 — 36,508 Collateralized mortgage obligations: U.S. Government agencies — 19,037 — 19,037 Corporate bonds — 7,830 — 7,830 Securities available-for-sale $ — $ 95,720 $ — $ 95,720 CRA mutual funds 916 — — 916 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 2,010 $ 2,010 Other real estate owned $ — $ — $ — $ — Liabilities at fair value on a recurring basis Derivative financial instruments $ — $ 3 $ — $ 3 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 (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2020 Financial Assets Cash and cash equivalents $ 95,341 $ 95,341 $ 95,341 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 95,720 95,720 — 95,720 — CRA mutual fund 916 916 916 — — Federal Home Loan Bank of Boston stock 3,158 3,158 3,158 — — Loans held-for-sale 2,761 2,802 — — 2,802 Loans receivable, net 1,031,593 1,058,564 — — 1,058,564 Accrued interest receivable 6,055 6,055 6,055 — — Cash surrender value of life insurance policies 17,572 17,572 17,572 — — Financial Liabilities Demand (non-interest-bearing) $ 313,742 $ 313,742 $ — $ 313,742 $ — Demand (interest-bearing) 201,760 201,760 — 201,760 — Money market 270,097 270,097 — 270,097 — Savings and other 181,691 181,691 — 181,691 — Certificates of deposit 127,851 129,311 — 129,311 — Deposits 1,095,141 1,096,601 — 1,096,601 — Repurchase agreements 10,885 10,885 — 10,885 — FHLBB advances 43,880 44,099 — 44,099 — Subordinated debt 9,877 9,965 9,965 — — Note payable 218 222 — 222 — Finance lease liability 1,685 1,868 — — 1,868 Accrued interest payable 210 210 210 — — Derivative financial instruments 3 3 — 3 — 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 — — The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions or are included in accrued interest and other liabilities.

NOTE 12 - SUBSEQUENT EVENTS

NOTE 12 - SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
NOTE 12 - SUBSEQUENT EVENTS	NOTE 12 - SUBSEQUENT EVENTS On October 30, 2020 the Board of Directors declared a dividend of $ 0.29

NOTE 1 - BASIS OF PRESENTATION

NOTE 1 - BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Recent Accounting Pronouncements	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. 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 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. In October 2020, the FASB issued ASU 2020-08, "Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs. Under current generally accepted accounting principles, entities amortize the premium on purchased callable debt securities to the earliest call date. If a callable debt security contains additional future call dates, entities should consider whether the amortized cost basis exceeded the amount repayable by the issuer at the next call date. If so, the excess or premium should be amortized to the next call date. This ASU clarifies that the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity shall reset the effective yield using the payment terms of the debt security. ASU 2020-08 is effective for interim and annual reporting periods beginning after December 15, 2020; early adoption is not permitted. ASU 2020-08 is not expected to have a material impact 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 were 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 meets the new definition of non-accelerated filer while continuing to qualify as a "smaller reporting company”, and will 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 the Bank 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.

NOTE 2 - SECURITIES (Tables)

NOTE 2 - SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
composition of securities	The composition of securities (in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value September 30, 2020 Available-for-sale U.S. Government Agency notes $ 5,643 $ 176 $ 32 $ 5,787 Municipal bonds 25,219 1,348 9 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,256 1,288 36 36,508 Collateralized mortgage obligations: U.S. Government agencies 18,439 598 — 19,037 Corporate bonds 7,750 101 21 7,830 Total securities available-for-sale $ 92,307 $ 3,511 $ 98 $ 95,720 CRA mutual fund $ 916 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,158 $ — $ — $ 3,158 (in thousands) Amortized cost basis 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- 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
[custom:MarketableSecurities1TextBlock]	(in thousands) Amortized cost basis Gross un-realized gains Gross un-realized losses Fair value September 30, 2020 Available-for-sale U.S. Government Agency notes $ 5,643 $ 176 $ 32 $ 5,787 Municipal bonds 25,219 1,348 9 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,256 1,288 36 36,508 Collateralized mortgage obligations: U.S. Government agencies 18,439 598 — 19,037 Corporate bonds 7,750 101 21 7,830 Total securities available-for-sale $ 92,307 $ 3,511 $ 98 $ 95,720 CRA mutual fund $ 916 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,158 $ — $ — $ 3,158 (in thousands) Amortized cost basis 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- 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
amortized cost, fair value and tax equivalent yield of securities, by maturity	The amortized cost, fair value and tax equivalent yield of securities, by maturity September 30, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ 2,496 $ 2,567 3.48 % Municipal bonds After 5 year but within 10 years 2,224 2,379 2.85 After 10 years 22,995 24,179 3.05 Total 25,219 26,558 3.03 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 56,842 58,765 2.15 Corporate bonds After 5 years but within 10 years 7,750 7,830 5.20 Securities available-for-sale $ 92,307 $ 95,720 2.68 % (1) Yield is based on amortized cost.
[custom:ScheduleOfAvailableForSaleSecuritiesReconciliation1TableTextBlock]	September 30, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ 2,496 $ 2,567 3.48 % Municipal bonds After 5 year but within 10 years 2,224 2,379 2.85 After 10 years 22,995 24,179 3.05 Total 25,219 26,558 3.03 Mortgage-backed securities and Collateralized mortgage obligations Securities not due at a single maturity date 56,842 58,765 2.15 Corporate bonds After 5 years but within 10 years 7,750 7,830 5.20 Securities available-for-sale $ 92,307 $ 95,720 2.68 % (1) Yield is based on amortized cost.
aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position	The following table summarizes the aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position Less than 12 Months 12 Months or Longer Total September 30, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ 1,561 $ 31 $ 75 $ 1 $ 1,636 $ 32 Municipal bonds 2,194 9 — — 2,194 9 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 6,729 35 65 1 6,794 36 Corporate bonds 1,479 21 — — 1,479 21 Total temporarily impaired securities $ 11,963 $ 96 $ 140 $ 2 $ 12,103 $ 98 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
[custom:ScheduleOfUnrealizedLossOnInvestments1TableTextBlock]	Less than 12 Months 12 Months or Longer Total September 30, 2020 (in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Available-for-sale U.S. Government Agency notes $ 1,561 $ 31 $ 75 $ 1 $ 1,636 $ 32 Municipal bonds 2,194 9 — — 2,194 9 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 6,729 35 65 1 6,794 36 Corporate bonds 1,479 21 — — 1,479 21 Total temporarily impaired securities $ 11,963 $ 96 $ 140 $ 2 $ 12,103 $ 98 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

Composition of Securities

Composition of Securities - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available-for-sale
CRA mutual fund		$ 882
Debt Securities, Available-for-sale, Cost of Security Sold or Transferred, Method, Specific Identification [Member]
Available-for-sale
U.S. Government Agency notes		4,520
Municipal bonds		26,562
U.S. Government agencies and U.S. Government- sponsored enterprises		28,961
U.S. Government agencies		25,041
Corporate bonds		5,000
Total securities available-for-sale		90,084
Non-marketable securities
Federal Home Loan Bank of Boston stock		3,242
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Available-for-sale
U.S. Government Agency notes		125
Municipal bonds		704
U.S. Government agencies and U.S. Government- sponsored enterprises		420
U.S. Government agencies		468
Corporate bonds		108
Total securities available-for-sale		1,825
Non-marketable securities
Federal Home Loan Bank of Boston stock
Accumulated Net Unrealized Investment Gain Loss 1 [Member]
Available-for-sale
U.S. Government Agency notes		1
Municipal bonds		73
U.S. Government agencies and U.S. Government- sponsored enterprises		24
U.S. Government agencies		10
Corporate bonds
Total securities available-for-sale		108
Non-marketable securities
Federal Home Loan Bank of Boston stock
Securities Financing Transaction, Fair Value [Member]
Available-for-sale
U.S. Government Agency notes		4,644
Municipal bonds		27,193
U.S. Government agencies and U.S. Government- sponsored enterprises		29,357
U.S. Government agencies		25,499
Corporate bonds		5,108
Total securities available-for-sale		91,801
CRA mutual fund		882
Non-marketable securities
Federal Home Loan Bank of Boston stock		$ 3,242
Debt Securities, Available-for-sale, Cost of Security Sold or Transferred, Method, Specific Identification [Member]
Available-for-sale
U.S. Government Agency notes	$ 5,643
Municipal bonds	25,219
U.S. Government agencies and U.S. Government- sponsored enterprises	35,256
U.S. Government agencies	18,439
Corporate bonds	7,750
Total securities available-for-sale	92,307
Non-marketable securities
Federal Home Loan Bank of Boston stock	3,158
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Available-for-sale
U.S. Government Agency notes	176
Municipal bonds	1,348
U.S. Government agencies and U.S. Government- sponsored enterprises	1,288
U.S. Government agencies	598
Corporate bonds	101
Total securities available-for-sale	3,511
Non-marketable securities
Federal Home Loan Bank of Boston stock
Accumulated Net Unrealized Investment Gain Loss 1 [Member]
Available-for-sale
U.S. Government Agency notes	32
Municipal bonds	9
U.S. Government agencies and U.S. Government- sponsored enterprises	36
U.S. Government agencies
Corporate bonds	21
Total securities available-for-sale	98
Non-marketable securities
Federal Home Loan Bank of Boston stock
Securities Financing Transaction, Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	5,787
Municipal bonds	26,558
U.S. Government agencies and U.S. Government- sponsored enterprises	36,508
U.S. Government agencies	19,037
Corporate bonds	7,830
Total securities available-for-sale	95,720
CRA mutual fund	916
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 3,158

Amortized cost, fair value and

Amortized cost, fair value and tax equivalent yield of securities $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
U S Government Agency Notes 1 [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 2,496
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 2,567
Receivable with Imputed Interest, Effective Yield (Interest Rate)	348.00%	[1]
U S States And Political Subdivisions 2 [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 2,224
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 2,379
Receivable with Imputed Interest, Effective Yield (Interest Rate)	285.00%	[1]
U S States And Political Subdivisions 3 [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 22,995
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 24,179
Receivable with Imputed Interest, Effective Yield (Interest Rate)	305.00%	[1]
US States and Political Subdivisions Debt Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 25,219
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 26,558
Receivable with Imputed Interest, Effective Yield (Interest Rate)	303.00%	[1]
US Government Agencies Debt Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 56,842
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 58,765
Receivable with Imputed Interest, Effective Yield (Interest Rate)	215.00%	[1]
Corporate Debt Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 7,750
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 7,830
Receivable with Imputed Interest, Effective Yield (Interest Rate)	520.00%	[1]
Available-for-sale Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 92,307
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 95,720
Receivable with Imputed Interest, Effective Yield (Interest Rate)	268.00%	[1]
[1]	Yield is based on amortized cost.

Aggreggate fair value and gross

Aggreggate fair value and gross unrealized loss of securities - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available-for-sale
U.S. Government Agency notes
Municipal bonds		73
U.S. Government agencies and U.S. Government - sponsored enterprises		22
Total temporarily impaired securities		105
U.S. Government Agencies		10
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	$ 1,561
Municipal bonds	2,194	6,273
U.S. Government agencies and U.S. Government - sponsored enterprises	6,729	5,781
Corporate bonds	1,479
Total temporarily impaired securities	11,963	13,492
U.S. Government Agencies		1,438
Aggregate Fair Value Gross Unrealized Loss Of Securities Less Than 12 Months Unrealized Losses [Member]
Available-for-sale
U.S. Government Agency notes	31
Municipal bonds	9
U.S. Government agencies and U.S. Government - sponsored enterprises	35
Corporate bonds	21
Total temporarily impaired securities	96
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	75	195
Municipal bonds
U.S. Government agencies and U.S. Government - sponsored enterprises	65	704
Corporate bonds
Total temporarily impaired securities	140	899
U.S. Government Agencies
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Unrealized Losses [Member]
Available-for-sale
U.S. Government Agency notes	1	1
Municipal bonds
U.S. Government agencies and U.S. Government - sponsored enterprises	1	2
Corporate bonds
Total temporarily impaired securities	2	3
U.S. Government Agencies
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	1,636	195
Municipal bonds	2,194	6,273
U.S. Government agencies and U.S. Government - sponsored enterprises	6,794	6,485
Corporate bonds	1,479
Total temporarily impaired securities	12,103	14,391
U.S. Government Agencies		1,438
Aggregate Fair Value Gross Unrealized Loss Of Securities Total Unrealized Losses [Member]
Available-for-sale
U.S. Government Agency notes	32	1
Municipal bonds	9	73
U.S. Government agencies and U.S. Government - sponsored enterprises	36	24
Corporate bonds	21
Total temporarily impaired securities	$ 98	108
U.S. Government Agencies		$ 10

NOTE 3 - LOANS (Tables)

NOTE 3 - LOANS (Tables)	9 Months Ended
	Sep. 30, 2020
Receivables [Abstract]
composition of loans receivable and loans held-for-sale	The composition of loans receivable and loans held-for-sale (In thousands) September 30, 2020 December 31, 2019 Residential 1-4 family $ 352,547 $ 346,299 Residential 5+ multifamily 35,880 35,455 Construction of residential 1-4 family 11,899 11,889 Home equity lines of credit 28,895 33,798 Residential real estate 429,221 427,441 Commercial 308,725 289,795 Construction of commercial 24,687 8,466 Commercial real estate 333,412 298,261 Farm land 3,295 3,641 Vacant land 13,694 7,893 Real estate secured 779,622 737,236 Commercial and industrial (1) 237,448 169,411 Municipal 20,797 21,914 Consumer 7,686 6,385 Loans receivable, gross 1,045,553 934,946 Deferred loan origination (fees) and costs, net (959 ) 1,362 Loans receivable, gross $ 1,044,594 $ 936,308 Allowance for loan losses (13,001 ) (8,895 ) Loans receivable, net $ 1,031,593 $ 927,413 Loans held-for-sale Residential 1-4 family $ 2,761 $ 332 (1) Commercial and industrial balance as of September 30, 2020 includes $99.9 million of Paycheck Protection Program loans.
[custom:ScheduleOfAccountsNotesLoansAndFinancingReceivable1TextBlock]	(In thousands) September 30, 2020 December 31, 2019 Residential 1-4 family $ 352,547 $ 346,299 Residential 5+ multifamily 35,880 35,455 Construction of residential 1-4 family 11,899 11,889 Home equity lines of credit 28,895 33,798 Residential real estate 429,221 427,441 Commercial 308,725 289,795 Construction of commercial 24,687 8,466 Commercial real estate 333,412 298,261 Farm land 3,295 3,641 Vacant land 13,694 7,893 Real estate secured 779,622 737,236 Commercial and industrial (1) 237,448 169,411 Municipal 20,797 21,914 Consumer 7,686 6,385 Loans receivable, gross 1,045,553 934,946 Deferred loan origination (fees) and costs, net (959 ) 1,362 Loans receivable, gross $ 1,044,594 $ 936,308 Allowance for loan losses (13,001 ) (8,895 ) Loans receivable, net $ 1,031,593 $ 927,413 Loans held-for-sale Residential 1-4 family $ 2,761 $ 332 (1) Commercial and industrial balance as of September 30, 2020 includes $99.9 million of Paycheck Protection Program loans.
composition of loans receivable by risk rating grade	The composition of loans receivable by risk rating grade (in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2020 Residential 1-4 family $ 342,812 $ 5,846 $ 3,889 $ — $ — $ 352,547 Residential 5+ multifamily 34,082 93 1,705 — — 35,880 Construction of residential 1-4 family 11,899 — — — — 11,899 Home equity lines of credit 28,304 358 233 — — 28,895 Residential real estate 417,097 6,297 5,827 — — 429,221 Commercial 292,298 2,207 14,149 71 — 308,725 Construction of commercial 24,455 — 232 — — 24,687 Commercial real estate 316,753 2,207 14,381 71 — 333,412 Farm land 1,624 — 1,671 — — 3,295 Vacant land 13,604 52 38 — — 13,694 Real estate secured 749,078 8,556 21,917 71 — 779,622 Commercial and industrial 235,135 1,259 694 360 — 237,448 Municipal 20,797 — — — — 20,797 Consumer 7,655 1 30 — — 7,686 Loans receivable, gross $ 1,012,665 $ 9,816 $ 22,641 $ 431 $ — $ 1,045,553 (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
[custom:FinancingReceivableCreditQualityIndicators1TableTextBlock]	(in thousands) Pass Special mention Substandard Doubtful Loss Total September 30, 2020 Residential 1-4 family $ 342,812 $ 5,846 $ 3,889 $ — $ — $ 352,547 Residential 5+ multifamily 34,082 93 1,705 — — 35,880 Construction of residential 1-4 family 11,899 — — — — 11,899 Home equity lines of credit 28,304 358 233 — — 28,895 Residential real estate 417,097 6,297 5,827 — — 429,221 Commercial 292,298 2,207 14,149 71 — 308,725 Construction of commercial 24,455 — 232 — — 24,687 Commercial real estate 316,753 2,207 14,381 71 — 333,412 Farm land 1,624 — 1,671 — — 3,295 Vacant land 13,604 52 38 — — 13,694 Real estate secured 749,078 8,556 21,917 71 — 779,622 Commercial and industrial 235,135 1,259 694 360 — 237,448 Municipal 20,797 — — — — 20,797 Consumer 7,655 1 30 — — 7,686 Loans receivable, gross $ 1,012,665 $ 9,816 $ 22,641 $ 431 $ — $ 1,045,553 (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	The 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 September 30, 2020 Residential 1-4 family $ 351,642 $ 122 $ 440 $ 257 $ 86 $ 905 $ — $ 1,353 Residential 5+ multifamily 35,019 — — — 861 861 — 861 Construction of residential 1-4 family 11,899 — — — — — — — Home equity lines of credit 28,611 29 46 71 138 284 — 233 Residential real estate 427,171 151 486 328 1,085 2,050 — 2,447 Commercial 307,209 864 147 — 505 1,516 — 1,262 Construction of commercial 24,687 — — — — — — — Commercial real estate 331,896 864 147 — 505 1,516 — 1,262 Farm land 3,134 161 — — — 161 — 166 Vacant land 13,694 — — — — — — 38 Real estate secured 775,895 1,176 633 328 1,590 3,727 — 3,913 Commercial and industrial 236,790 250 — 300 108 658 11 757 Municipal 20,797 — — — — — — — Consumer 7,637 49 — — — 49 — — Loans receivable, gross $ 1,041,119 $ 1,475 $ 633 $ 628 $ 1,698 $ 4,434 $ 11 $ 4,670 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
[custom:ScheduleOfFinancingReceivablesNonAccrualStatus1TableTextBlock]	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 September 30, 2020 Residential 1-4 family $ 351,642 $ 122 $ 440 $ 257 $ 86 $ 905 $ — $ 1,353 Residential 5+ multifamily 35,019 — — — 861 861 — 861 Construction of residential 1-4 family 11,899 — — — — — — — Home equity lines of credit 28,611 29 46 71 138 284 — 233 Residential real estate 427,171 151 486 328 1,085 2,050 — 2,447 Commercial 307,209 864 147 — 505 1,516 — 1,262 Construction of commercial 24,687 — — — — — — — Commercial real estate 331,896 864 147 — 505 1,516 — 1,262 Farm land 3,134 161 — — — 161 — 166 Vacant land 13,694 — — — — — — 38 Real estate secured 775,895 1,176 633 328 1,590 3,727 — 3,913 Commercial and industrial 236,790 250 — 300 108 658 11 757 Municipal 20,797 — — — — — — — Consumer 7,637 49 — — — 49 — — Loans receivable, gross $ 1,041,119 $ 1,475 $ 633 $ 628 $ 1,698 $ 4,434 $ 11 $ 4,670 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	Troubled debt restructurings For the three months ending September 30, 2020 For the three months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 1 $ 791 $ 791 Commercial real estate — — — 1 274 274 Consumer — — — — — — Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes — — — — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 For the nine months ending September 30, 2020 For the nine months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 3 $ 1,400 $ 1,400 Commercial real estate 1 133 133 1 274 274 Consumer — — — 1 42 42 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — 3 651 651 Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716
[custom:TroubledDebtRestructuringsOnFinancingReceivables1TableTextBlock]	For the three months ending September 30, 2020 For the three months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 1 $ 791 $ 791 Commercial real estate — — — 1 274 274 Consumer — — — — — — Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — — — — Workout refinance. Extension of new funds to pay outstanding taxes — — — — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 1 $ 180 $ 180 2 $ 1,065 $ 1,065 For the nine months ending September 30, 2020 For the nine months ending September 30, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 3 $ 1,400 $ 1,400 Commercial real estate 1 133 133 1 274 274 Consumer — — — 1 42 42 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716 Interest only payments to sell property — $ — $ — 1 $ 791 $ 791 Rate reduction — — — — — — Modification and Rate reduction — — — 3 651 651 Workout refinance. Extension of new funds to pay outstanding taxes 1 133 133 — — — Modification and term extension 1 180 180 1 274 274 Troubled debt restructurings 2 $ 313 $ 313 5 $ 1,716 $ 1,716
Changes in the allowance for loan losses	Changes in the allowance for loan losses Three months ended September 30, 2020 Three months ended September 30, 2019 (in thousands) Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 3,048 $ 69 $ (11 ) $ 1 $ 3,107 $ 2,074 $ 175 $ (31 ) $ 1 $ 2,219 Residential 5+ multifamily 589 14 — — 603 495 (5 ) — — 490 Construction of residential 1-4 family 87 10 — — 97 79 4 — — 83 Home equity lines of credit 283 (8 ) — — 275 224 (11 ) — — 213 Residential real estate 4,007 85 (11 ) 1 4,082 2,872 163 (31 ) 1 3,005 Commercial 5,160 317 (14 ) 1 5,464 3,777 (149 ) (20 ) — 3,608 Construction of commercial 205 195 — — 400 127 23 — — 150 Commercial real estate 5,365 512 (14 ) 1 5,864 3,904 (126 ) (20 ) — 3,758 Farm land 60 5 — — 65 47 — — — 47 Vacant land 182 (11 ) — — 171 89 (14 ) — — 75 Real estate secured 9,614 591 (25 ) 2 10,182 6,912 23 (51 ) 1 6,885 Commercial and industrial 1,515 (44 ) — 1 1,472 1,176 74 (97 ) 14 1,167 Municipal 36 5 — — 41 30 17 — — 47 Consumer 74 40 (41 ) 7 80 81 (26 ) (5 ) 3 53 Unallocated 1,132 94 — — 1,226 688 6 — — 694 Totals $ 12,371 $ 686 $ (66 ) $ 10 $ 13,001 $ 8,887 $ 94 $ (153 ) $ 18 $ 8,846 Nine months ended September 30, 2020 Nine months ended September 30, 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 $ 716 $ (11 ) $ 9 $ 3,107 $ 2,149 $ 10 $ 90 $ (32 ) $ 2 $ 2,219 Residential 5+ multifamily 446 199 (42 ) — 603 413 — 77 — — 490 Construction of residential 1-4 family 75 22 — — 97 83 — — — — 83 Home equity lines of credit 197 78 — — 275 219 1 (7 ) — — 213 Residential real estate 3,111 1,015 (53 ) 9 4,082 2,864 11 160 (32 ) 2 3,005 Commercial 3,742 1,719 (17 ) 20 5,464 3,048 488 114 (44 ) 2 3,608 Construction of commercial 104 296 — — 400 122 — 28 — — 150 Commercial real estate 3,846 2,015 (17 ) 20 5,864 3,170 488 142 (44 ) 2 3,758 Farm land 47 18 — — 65 33 — 14 — — 47 Vacant land 71 100 — — 171 100 — (25 ) — — 75 Real estate secured 7,075 3,148 (70 ) 29 10,182 6,167 499 291 (76 ) 4 6,885 Commercial and industrial 1,145 326 — 1 1,472 1,158 164 (54 ) (146 ) 45 1,167 Municipal 46 (5 ) — — 41 12 — 35 — — 47 Consumer 60 72 (66 ) 14 80 56 — 11 (29 ) 15 53 Unallocated 569 657 — — 1,226 438 — 256 — — 694 Totals $ 8,895 $ 4,198 $ (136 ) $ 44 $ 13,001 $ 7,831 $ 663 $ 539 $ (251 ) $ 64 $ 8,846
[custom:AllowanceForCreditLossesOnFinancingReceivables1TableTextBlock]	Three months ended September 30, 2020 Three months ended September 30, 2019 (in thousands) Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Beginning balance Provision (Benefit) Charge- offs Reco- veries Ending balance Residential 1-4 family $ 3,048 $ 69 $ (11 ) $ 1 $ 3,107 $ 2,074 $ 175 $ (31 ) $ 1 $ 2,219 Residential 5+ multifamily 589 14 — — 603 495 (5 ) — — 490 Construction of residential 1-4 family 87 10 — — 97 79 4 — — 83 Home equity lines of credit 283 (8 ) — — 275 224 (11 ) — — 213 Residential real estate 4,007 85 (11 ) 1 4,082 2,872 163 (31 ) 1 3,005 Commercial 5,160 317 (14 ) 1 5,464 3,777 (149 ) (20 ) — 3,608 Construction of commercial 205 195 — — 400 127 23 — — 150 Commercial real estate 5,365 512 (14 ) 1 5,864 3,904 (126 ) (20 ) — 3,758 Farm land 60 5 — — 65 47 — — — 47 Vacant land 182 (11 ) — — 171 89 (14 ) — — 75 Real estate secured 9,614 591 (25 ) 2 10,182 6,912 23 (51 ) 1 6,885 Commercial and industrial 1,515 (44 ) — 1 1,472 1,176 74 (97 ) 14 1,167 Municipal 36 5 — — 41 30 17 — — 47 Consumer 74 40 (41 ) 7 80 81 (26 ) (5 ) 3 53 Unallocated 1,132 94 — — 1,226 688 6 — — 694 Totals $ 12,371 $ 686 $ (66 ) $ 10 $ 13,001 $ 8,887 $ 94 $ (153 ) $ 18 $ 8,846 Nine months ended September 30, 2020 Nine months ended September 30, 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 $ 716 $ (11 ) $ 9 $ 3,107 $ 2,149 $ 10 $ 90 $ (32 ) $ 2 $ 2,219 Residential 5+ multifamily 446 199 (42 ) — 603 413 — 77 — — 490 Construction of residential 1-4 family 75 22 — — 97 83 — — — — 83 Home equity lines of credit 197 78 — — 275 219 1 (7 ) — — 213 Residential real estate 3,111 1,015 (53 ) 9 4,082 2,864 11 160 (32 ) 2 3,005 Commercial 3,742 1,719 (17 ) 20 5,464 3,048 488 114 (44 ) 2 3,608 Construction of commercial 104 296 — — 400 122 — 28 — — 150 Commercial real estate 3,846 2,015 (17 ) 20 5,864 3,170 488 142 (44 ) 2 3,758 Farm land 47 18 — — 65 33 — 14 — — 47 Vacant land 71 100 — — 171 100 — (25 ) — — 75 Real estate secured 7,075 3,148 (70 ) 29 10,182 6,167 499 291 (76 ) 4 6,885 Commercial and industrial 1,145 326 — 1 1,472 1,158 164 (54 ) (146 ) 45 1,167 Municipal 46 (5 ) — — 41 12 — 35 — — 47 Consumer 60 72 (66 ) 14 80 56 — 11 (29 ) 15 53 Unallocated 569 657 — — 1,226 438 — 256 — — 694 Totals $ 8,895 $ 4,198 $ (136 ) $ 44 $ 13,001 $ 7,831 $ 663 $ 539 $ (251 ) $ 64 $ 8,846
composition of loans receivable and the allowance for loan losses	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 September 30, 2020 Residential 1-4 family $ 347,701 $ 2,724 $ 4,846 $ 383 $ 352,547 $ 3,107 Residential 5+ multifamily 34,913 603 967 — 35,880 603 Construction of residential 1-4 family 11,899 97 — — 11,899 97 Home equity lines of credit 28,662 261 233 14 28,895 275 Residential real estate 423,175 3,685 6,046 397 429,221 4,082 Commercial 304,328 5,194 4,397 270 308,725 5,464 Construction of commercial 24,687 400 — — 24,687 400 Commercial real estate 329,015 5,594 4,397 270 333,412 5,864 Farm land 3,129 65 166 — 3,295 65 Vacant land 13,524 168 170 3 13,694 171 Real estate secured 768,843 9,512 10,779 670 779,622 10,182 Commercial and industrial 236,572 1,092 876 380 237,448 1,472 Municipal 20,797 41 — — 20,797 41 Consumer 7,656 62 30 18 7,686 80 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 (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
[custom:CompositionOfLoansReceivableAndAllowanceForLoanLosses1TableTextBlock]	(in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance September 30, 2020 Residential 1-4 family $ 347,701 $ 2,724 $ 4,846 $ 383 $ 352,547 $ 3,107 Residential 5+ multifamily 34,913 603 967 — 35,880 603 Construction of residential 1-4 family 11,899 97 — — 11,899 97 Home equity lines of credit 28,662 261 233 14 28,895 275 Residential real estate 423,175 3,685 6,046 397 429,221 4,082 Commercial 304,328 5,194 4,397 270 308,725 5,464 Construction of commercial 24,687 400 — — 24,687 400 Commercial real estate 329,015 5,594 4,397 270 333,412 5,864 Farm land 3,129 65 166 — 3,295 65 Vacant land 13,524 168 170 3 13,694 171 Real estate secured 768,843 9,512 10,779 670 779,622 10,182 Commercial and industrial 236,572 1,092 876 380 237,448 1,472 Municipal 20,797 41 — — 20,797 41 Consumer 7,656 62 30 18 7,686 80 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 (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 the allowance for loan losses	The credit quality segments of loans receivable and the allowance for loan losses September 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,018,802 $ 9,702 $ — $ — $ 1,018,802 $ 9,702 Potential problem loans 1 15,066 1,005 — — 15,066 1,005 Impaired loans — — 11,685 1,068 11,685 1,068 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 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
[custom:ScheduleOfCreditLossesRelatedToFinancingReceivablesNoncurrent1TableTextBlock]	September 30, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,018,802 $ 9,702 $ — $ — $ 1,018,802 $ 9,702 Potential problem loans 1 15,066 1,005 — — 15,066 1,005 Impaired loans — — 11,685 1,068 11,685 1,068 Unallocated allowance — 1,226 — — — 1,226 Totals $ 1,033,868 $ 11,933 $ 11,685 $ 1,068 $ 1,045,553 $ 13,001 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	A specific valuation allowance is established for the impairment amount of each impaired loan, calculated using the present value of expected cash flows or fair value of collateral, in accordance with the most likely means of recovery. Certain data with respect to loans individually evaluated for impairment Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income recognized September 30, 2020 Residential $ 3,854 $ 3,972 $ 4,034 $ 383 $ 67 $ 1,959 $ 2,335 $ 1,912 $ 20 Home equity lines of credit 75 75 77 14 — 158 507 111 1 Residential real estate 3,929 4,047 4,111 397 67 2,117 2,842 2,023 21 Commercial 3,099 3,148 3,401 270 104 1,298 1,940 978 31 Construction of commercial — — — — — — — — — Farm land — — — — — 166 322 177 — Vacant land 38 40 40 3 — 132 148 136 7 Real estate secured 7,066 7,235 7,552 670 171 3,713 5,252 3,314 59 Commercial and industrial 824 827 422 380 3 52 205 59 2 Consumer 30 30 33 18 1 — — — — Totals $ 7,920 $ 8,092 $ 8,007 $ 1,068 $ 175 $ 3,765 $ 5,457 $ 3,373 $ 61 Note: The income recognized is for the nine month period ended September 30, 2020. 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 Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income 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
[custom:ScheduleOfValuationAllowanceForImpairmentOfRecognizedServicingAssets1TextBlock]	Impaired loans with specific allowance Impaired loans with no specific allowance (in thousands) Loan balance Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income recognized September 30, 2020 Residential $ 3,854 $ 3,972 $ 4,034 $ 383 $ 67 $ 1,959 $ 2,335 $ 1,912 $ 20 Home equity lines of credit 75 75 77 14 — 158 507 111 1 Residential real estate 3,929 4,047 4,111 397 67 2,117 2,842 2,023 21 Commercial 3,099 3,148 3,401 270 104 1,298 1,940 978 31 Construction of commercial — — — — — — — — — Farm land — — — — — 166 322 177 — Vacant land 38 40 40 3 — 132 148 136 7 Real estate secured 7,066 7,235 7,552 670 171 3,713 5,252 3,314 59 Commercial and industrial 824 827 422 380 3 52 205 59 2 Consumer 30 30 33 18 1 — — — — Totals $ 7,920 $ 8,092 $ 8,007 $ 1,068 $ 175 $ 3,765 $ 5,457 $ 3,373 $ 61 Note: The income recognized is for the nine month period ended September 30, 2020. 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 Loan balance Book Note Average Specific allowance Income recognized Book Note Average Income 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

Composition of loans receivable

Composition of loans receivable and loans held-for-sale - USD ($) $ in Thousands		Sep. 30, 2020	Dec. 31, 2019
Composition Of Loans Receivable And Loans Held-for-sale
Residential 1-4 family		$ 352,547	$ 346,299
Residential 5+ multifamily		35,880	35,455
Construction of residential 1-4 family		11,899	11,889
Home equity lines of credit		28,895	33,798
Residential real estate		429,221	427,441
Commercial		308,725	289,795
Construction of commercial		24,687	8,466
Commercial real estate		333,412	298,261
Farm land		3,295	3,641
Vacant land		13,694	7,893
Real estate secured		779,622	737,236
Commercial and industrial	[1]	237,448	169,411
Municipal		20,797	21,914
Consumer		7,686	6,385
Loans receivable, gross		1,045,553	934,946
Deferred loan origination (fees) and costs, net		(959)	1,362
Loans receivable, gross		1,044,594	936,308
Allowance for loan losses		(13,001)	(8,895)
Loans receivable, net		1,031,593	927,413
Loans held-for-sale
Residential 1-4 family		$ 2,761	$ 332
[1]	Commercial and industrial balance as of September 30, 2020 includes $99.9 million of Paycheck Protection Program loans.

NOTE 4 - LEASES (Tables)

NOTE 4 - LEASES (Tables)	9 Months Ended
	Sep. 30, 2020
Note 4 - Leases
assets and liabilities as well as the costs of operating and finance leases	T he following table provides the assets and liabilities as well as the costs of operating and finance leases ($ in thousands, except lease term and discount rate) Classification September 30, 2020 December 31, 2019 Assets Operating Other assets $ 1,235 $ 1,360 Finance Bank premises and equipment 1 1,427 1,503 Total Leased Assets $ 2,662 $ 2,863 Liabilities Operating Other liabilities $ 1,213 $ 1,360 Finance Finance lease 1,685 1,718 Total lease liabilities $ 2,898 $ 3,078 1 Lease cost Classification Nine months ended September 30, 2020 Three months ended September 30, 2020 Operating leases Premises and equipment $ 188 $ 64 Finance leases: Amortization of leased assets Premises and equipment 76 25 Interest on finance leases Interest expense 107 36 Total lease cost $ 371 $ 125 Lease cost Classification Nine months ended September 30, 2019 Three months ended September 30, 2019 Operating leases Premises and equipment $ 193 $ 70 Finance leases: Amortization of leased assets Premises and equipment 174 54 Interest on finance leases Interest expense 135 43 Total lease cost $ 502 $ 167 Weighted Average Remaining Lease Term September 30, 2020 December 31, 2019 Operating leases 8.0 years 8.2 years Financing leases 14.7 years 15.1 years Weighted Average Discount Rate 1 Operating leases 3.73% 3.70% Financing leases 8.38% 8.41% 1
[custom:FinanceLeaseLiabilityMaturity1TableTextBlock]	($ in thousands, except lease term and discount rate) Classification September 30, 2020 December 31, 2019 Assets Operating Other assets $ 1,235 $ 1,360 Finance Bank premises and equipment 1 1,427 1,503 Total Leased Assets $ 2,662 $ 2,863 Liabilities Operating Other liabilities $ 1,213 $ 1,360 Finance Finance lease 1,685 1,718 Total lease liabilities $ 2,898 $ 3,078 1 Lease cost Classification Nine months ended September 30, 2020 Three months ended September 30, 2020 Operating leases Premises and equipment $ 188 $ 64 Finance leases: Amortization of leased assets Premises and equipment 76 25 Interest on finance leases Interest expense 107 36 Total lease cost $ 371 $ 125 Lease cost Classification Nine months ended September 30, 2019 Three months ended September 30, 2019 Operating leases Premises and equipment $ 193 $ 70 Finance leases: Amortization of leased assets Premises and equipment 174 54 Interest on finance leases Interest expense 135 43 Total lease cost $ 502 $ 167 Weighted Average Remaining Lease Term September 30, 2020 December 31, 2019 Operating leases 8.0 years 8.2 years Financing leases 14.7 years 15.1 years Weighted Average Discount Rate 1 Operating leases 3.73% 3.70% Financing leases 8.38% 8.41% 1
schedule by years of the present value of the net minimum lease payments	The following is a schedule by years of the present value of the net minimum lease payments Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 64 $ 47 2021 250 192 2022 199 195 2023 148 197 2024 129 200 Thereafter 623 1,980 Total future minimum lease payments 1,413 2,811 Less amount representing interest (200 ) (1,126 ) Total present value of net future minimum lease payments $ 1,213 $ 1,685
[custom:ScheduleOfFutureMinimumLeasePaymentsForCapitalLeases1TableTextBlock]	Future minimum lease payments (in thousands) Operating Leases Finance Leases 2020 $ 64 $ 47 2021 250 192 2022 199 195 2023 148 197 2024 129 200 Thereafter 623 1,980 Total future minimum lease payments 1,413 2,811 Less amount representing interest (200 ) (1,126 ) Total present value of net future minimum lease payments $ 1,213 $ 1,685

NOTE 5 - MORTGAGE SERVICING R_2

NOTE 5 - MORTGAGE SERVICING RIGHTS (Tables)	9 Months Ended
	Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule of Participating Mortgage Loans [Table Text Block]	(in thousands) September 30, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 130,304 $ 106,255 Fair value of mortgage servicing rights 714 813
[custom:ScheduleOfParticipatingMortgageLoans1TextBlock]	(in thousands) September 30, 2020 December 31, 2019 Residential mortgage loans serviced for others $ 130,304 $ 106,255 Fair value of mortgage servicing rights 714 813
Changes in mortgage servicing rights	Changes in mortgage servicing rights Three months ended Nine months ended Periods ended September 30, (in thousands) 2020 2019 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 353 $ 209 $ 238 $ 228 Originated 270 21 413 25 Amortization (1) (56 ) (13 ) (84 ) (36 ) Balance, end of period $ 567 $ 217 $ 567 $ 217 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.
[custom:ScheduleOfServicingLiabilitiesAtAmortizedValue1TextBlock]	Three months ended Nine months ended Periods ended September 30, (in thousands) 2020 2019 2020 2019 Mortgage Servicing Rights Balance, beginning of period $ 353 $ 209 $ 238 $ 228 Originated 270 21 413 25 Amortization (1) (56 ) (13 ) (84 ) (36 ) Balance, end of period $ 567 $ 217 $ 567 $ 217 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

NOTE 6 - PLEDGED ASSETS (Tables

NOTE 6 - PLEDGED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2020
Guarantees and Product Warranties [Abstract]
Schedule of Guarantor Obligations [Table Text Block]
Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	(in thousands) September 30, 2020 December 31, 2019 Securities available-for-sale (at fair value) $ 61,542 $ 52,845 Loans receivable (at book value) 427,828 434,329 Total pledged assets $ 489,370 $ 487,174

NOTE 7 - DERIVATIVES AND HEDG_2

NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
cumulative basis adjustment for fair value hedges	As of Sep tember 30, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Loans receivable (1) $ 10,003 $ — $ 3 $ — Total $ 10,003 $ — $ 3 $ — (1)
[custom:ScheduleOfNetInvestmentHedgesStatementsOfFinancialPerformanceAndFinancialPositionLocation1TableTextBlock]	Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (in thousands) September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Loans receivable (1) $ 10,003 $ — $ 3 $ — Total $ 10,003 $ — $ 3 $ — (1)
fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet	The table below presents the fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet As of September 30, 2020 (in thousands) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other liabilities $ 3 Total Derivatives designated as hedge instruments $ 3
[custom:ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValue1TextBlock]	As of September 30, 2020 (in thousands) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other liabilities $ 3 Total Derivatives designated as hedge instruments $ 3
effect of the Company's derivative financial instruments on the Income Statement	The table below presents the effect of the Company's derivative financial instruments on the Income Statement Three months ended September 30, 2020 (in thousands) Interest Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $ — $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 3 — Derivatives designated as hedging instruments $ (3 ) $ —
[custom:ScheduleOfDerivativesInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocation1TableTextBlock]	Three months ended September 30, 2020 (in thousands) Interest Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded $ — $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 3 — Derivatives designated as hedging instruments $ (3 ) $ —

NOTE 8 - EARNINGS PER SHARE (Ta

NOTE 8 - EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
computation of earnings per share (basic and diluted)	The following table sets forth the computation of earnings per share (basic and diluted)
Computation of earnings per share	Three months ended Nine months ended Periods ended September 30, (in thousands, except per share data) 2020 2019 2020 2019 Net income $ 4,356 $ 2,988 $ 9,137 $ 8,126 Less: Undistributed earnings allocated to participating securities (67 ) (48 ) (131 ) (110 ) Net income allocated to common stock $ 4,288 $ 2,940 $ 9,006 $ 8,016 Weighted-average common shares issued 2,843 2,823 2,835 2,815 Less: Unvested restricted stock awards (44 ) (40 ) (41 ) (34 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,799 2,783 2,794 2,781 Add: Dilutive effect of stock options 8 12 8 12 Weighted-average common shares outstanding used to calculate diluted earnings per common share 2,807 2,795 2,802 2,793 Earnings per common share (basic) $ 1.53 $ 1.06 $ 3.22 $ 2.88 Earnings per common share (diluted) $ 1.53 $ 1.05 $ 3.21 $ 2.87

NOTE 9 - SHAREHOLDERS' EQUITY (

NOTE 9 - SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Actual regulatory capital position and minimum capital requirements	The Bank's risk-weighted assets at September 30, 2020 and December 31, 2019 were $ 916.3 891.0 Actual regulatory capital position and minimum capital requirements
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 September 30, 2020 Total Capital (to risk-weighted assets) $ 124,616 13.60 % $ 73,307 8.0 % $ 96,216 10.5 % $ 91,634 10.0 % Tier 1 Capital (to risk-weighted assets) 113,142 12.35 54,980 6.0 77,889 8.5 73,307 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 113,142 12.35 41,235 4.5 64,144 7.0 59,562 6.5 Tier 1 Capital (to average assets) $ 113,142 8.93 50,704 4.0 50,704 4.0 63,380 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

NOTE 11 - FAIR VALUE OF ASSET_2

NOTE 11 - FAIR VALUE OF ASSETS AND LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Assets and liabilities measured at fair value	Assets and liabilities measured at fair value Fair Value Measurements Using Assets and (in thousands) Level 1 Level 2 Level 3 liabilities at fair value September 30, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 5,787 $ — $ 5,787 Municipal bonds — 26,558 — 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 36,508 — 36,508 Collateralized mortgage obligations: U.S. Government agencies — 19,037 — 19,037 Corporate bonds — 7,830 — 7,830 Securities available-for-sale $ — $ 95,720 $ — $ 95,720 CRA mutual funds 916 — — 916 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 2,010 $ 2,010 Other real estate owned $ — $ — $ — $ — Liabilities at fair value on a recurring basis Derivative financial instruments $ — $ 3 $ — $ 3 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
[custom:FairValueAssetsMeasuredOnRecurringAndNonrecurringBasis1TableTextBlock]	Fair Value Measurements Using Assets and (in thousands) Level 1 Level 2 Level 3 liabilities at fair value September 30, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ — $ 5,787 $ — $ 5,787 Municipal bonds — 26,558 — 26,558 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises — 36,508 — 36,508 Collateralized mortgage obligations: U.S. Government agencies — 19,037 — 19,037 Corporate bonds — 7,830 — 7,830 Securities available-for-sale $ — $ 95,720 $ — $ 95,720 CRA mutual funds 916 — — 916 Assets at fair value on a non-recurring basis Collateral dependent impaired loans $ — $ — $ 2,010 $ 2,010 Other real estate owned $ — $ — $ — $ — Liabilities at fair value on a recurring basis Derivative financial instruments $ — $ 3 $ — $ 3 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	Carrying values and estimated fair values of financial instruments (in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2020 Financial Assets Cash and cash equivalents $ 95,341 $ 95,341 $ 95,341 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 95,720 95,720 — 95,720 — CRA mutual fund 916 916 916 — — Federal Home Loan Bank of Boston stock 3,158 3,158 3,158 — — Loans held-for-sale 2,761 2,802 — — 2,802 Loans receivable, net 1,031,593 1,058,564 — — 1,058,564 Accrued interest receivable 6,055 6,055 6,055 — — Cash surrender value of life insurance policies 17,572 17,572 17,572 — — Financial Liabilities Demand (non-interest-bearing) $ 313,742 $ 313,742 $ — $ 313,742 $ — Demand (interest-bearing) 201,760 201,760 — 201,760 — Money market 270,097 270,097 — 270,097 — Savings and other 181,691 181,691 — 181,691 — Certificates of deposit 127,851 129,311 — 129,311 — Deposits 1,095,141 1,096,601 — 1,096,601 — Repurchase agreements 10,885 10,885 — 10,885 — FHLBB advances 43,880 44,099 — 44,099 — Subordinated debt 9,877 9,965 9,965 — — Note payable 218 222 — 222 — Finance lease liability 1,685 1,868 — — 1,868 Accrued interest payable 210 210 210 — — Derivative financial instruments 3 3 — 3 — 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 — —
[custom:ScheduleOfCarryingValuesAndEstimatedFairValuesOfDebtInstruments1TableTextBlock]	(in thousands) Carrying Estimated Fair value measurements using value fair value Level 1 Level 2 Level 3 September 30, 2020 Financial Assets Cash and cash equivalents $ 95,341 $ 95,341 $ 95,341 $ — $ — Interest bearing time deposits with financial institutions 750 750 750 — — Securities available-for-sale 95,720 95,720 — 95,720 — CRA mutual fund 916 916 916 — — Federal Home Loan Bank of Boston stock 3,158 3,158 3,158 — — Loans held-for-sale 2,761 2,802 — — 2,802 Loans receivable, net 1,031,593 1,058,564 — — 1,058,564 Accrued interest receivable 6,055 6,055 6,055 — — Cash surrender value of life insurance policies 17,572 17,572 17,572 — — Financial Liabilities Demand (non-interest-bearing) $ 313,742 $ 313,742 $ — $ 313,742 $ — Demand (interest-bearing) 201,760 201,760 — 201,760 — Money market 270,097 270,097 — 270,097 — Savings and other 181,691 181,691 — 181,691 — Certificates of deposit 127,851 129,311 — 129,311 — Deposits 1,095,141 1,096,601 — 1,096,601 — Repurchase agreements 10,885 10,885 — 10,885 — FHLBB advances 43,880 44,099 — 44,099 — Subordinated debt 9,877 9,965 9,965 — — Note payable 218 222 — 222 — Finance lease liability 1,685 1,868 — — 1,868 Accrued interest payable 210 210 210 — — Derivative financial instruments 3 3 — 3 — 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 — —

NOTE 3 - LOANS (Details Narrati

NOTE 3 - LOANS (Details Narrative) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Receivables [Abstract]
Commercial loans for other banks serviced by Company under loan participation agreements	$ 62,700,000	$ 67,000,000

Composition of loans receivab_2

Composition of loans receivable by risk rating grade - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Credit Derivatives [Line Items]
Residential 1-4 family		$ 4,719
Residential 5+ multifamily		1,737
Construction of residential 1-4 family
Home equity lines of credit		105
Residential real estate		6,561
Commercial		7,052
Construction of commercial		241
Commercial real estate		7,293
Farm land		1,707
Vacant land
Real estate secured		15,561
Commercial and industrial		1,510
Municipal
Consumer		38
Loans receivable, gross		17,109
Pass [Member]
Credit Derivatives [Line Items]
Residential 1-4 family	$ 342,812	337,302
Residential 5+ multifamily	34,082	33,619
Construction of residential 1-4 family	11,899	11,889
Home equity lines of credit	28,304	33,381
Residential real estate	417,097	416,191
Commercial	292,298	271,708
Construction of commercial	24,455	8,225
Commercial real estate	316,753	279,933
Farm land	1,624	1,934
Vacant land	13,604	7,834
Real estate secured	749,078	705,892
Commercial and industrial	235,135	167,458
Municipal	20,797	21,914
Consumer	7,655	6,344
Loans receivable, gross	1,012,665	901,608
Special Mention [Member]
Credit Derivatives [Line Items]
Residential 1-4 family	5,846	4,278
Residential 5+ multifamily	93	99
Construction of residential 1-4 family
Home equity lines of credit	358	312
Residential real estate	6,297	4,689
Commercial	2,207	10,964
Construction of commercial
Commercial real estate	2,207	10,964
Farm land
Vacant land	52	59
Real estate secured	8,556	15,712
Commercial and industrial	1,259	443
Municipal
Consumer	1	3
Loans receivable, gross	9,816	16,158
Substandard [Member]
Credit Derivatives [Line Items]
Residential 1-4 family	3,889
Residential 5+ multifamily	1,705
Construction of residential 1-4 family
Home equity lines of credit	233
Residential real estate	5,827
Commercial	14,149
Construction of commercial	232
Commercial real estate	14,381
Farm land	1,671
Vacant land	38
Real estate secured	21,917
Commercial and industrial	694
Municipal
Consumer	30
Loans receivable, gross	22,641
Doubtful [Member]
Credit Derivatives [Line Items]
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	360
Municipal
Consumer
Loans receivable, gross	431	71
Unlikely to be Collected Financing Receivable [Member]
Credit Derivatives [Line Items]
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
Nonperforming Financial Instruments [Member]
Credit Derivatives [Line Items]
Residential 1-4 family	352,547	346,299
Residential 5+ multifamily	35,880	35,455
Construction of residential 1-4 family	11,899	11,889
Home equity lines of credit	28,895	33,798
Residential real estate	429,221	427,441
Commercial	308,725	289,795
Construction of commercial	24,687	8,466
Commercial real estate	333,412	298,261
Farm land	3,295	3,641
Vacant land	13,694	7,893
Real estate secured	779,622	737,236
Commercial and industrial	237,448	169,411
Municipal	20,797	21,914
Consumer	7,686	6,385
Loans receivable, gross	$ 1,045,553	$ 934,946

Composition of loans receivab_3

Composition of loans receivable by delinquency status - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans Receivable Delinquency Status Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	$ 351,642	$ 344,085
Residential 5+ multifamily	35,019	34,594
Construction of residential 1-4 family	11,899	11,889
Home equity lines of credit	28,611	33,522
Residential real estate	427,171	424,090
Commercial	307,209	289,103
Construction of commercial	24,687	8,466
Commercial real estate	331,896	297,569
Farm land	3,134	3,461
Vacant land	13,694	7,852
Real estate secured	775,895	732,972
Commercial and industrial	236,790	169,262
Municipal	20,797	21,914
Consumer	7,637	6,382
Loans receivable, gross	1,041,119	930,530
Loans Receivable Delinquency Status Period Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	122	971
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	29	152
Residential real estate	151	1,123
Commercial	864	336
Construction of commercial
Commercial real estate	864	336
Farm land	161	180
Vacant land
Real estate secured	1,176	1,639
Commercial and industrial	250	2
Municipal
Consumer	49
Loans receivable, gross	1,475	1,641
Loans Receivable Delinquency Status Period Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	440	351
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	46	46
Residential real estate	486	397
Commercial	147	141
Construction of commercial
Commercial real estate	147	141
Farm land
Vacant land		41
Real estate secured	633	579
Commercial and industrial		146
Municipal
Consumer		1
Loans receivable, gross	633	726
Loans Receivable Delinquency Status Period Four [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	257	200
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	71
Residential real estate	328	200
Commercial		71
Construction of commercial
Commercial real estate		71
Farm land
Vacant land
Real estate secured	328	271
Commercial and industrial	300	1
Municipal
Consumer		2
Loans receivable, gross	628	274
Loans Receivable Delinquency Status Period Five [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	86	692
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	138	78
Residential real estate	1,085	1,631
Commercial	505	144
Construction of commercial
Commercial real estate	505	144
Farm land
Vacant land
Real estate secured	1,590	1,775
Commercial and industrial	108
Municipal
Consumer
Loans receivable, gross	1,698	1,775
Loans Receivable Delinquency Status Period Six [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	905	2,214
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	284	276
Residential real estate	2,050	3,351
Commercial	1,516	692
Construction of commercial
Commercial real estate	1,516	692
Farm land	161	180
Vacant land		41
Real estate secured	3,727	4,264
Commercial and industrial	658	149
Municipal
Consumer	49	3
Loans receivable, gross	4,434	4,416
Loans Receivable Delinquency Accrual [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
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	11	1
Municipal
Consumer		2
Loans receivable, gross	11	3
Loans Receivable Delinquency Non Accrual [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	1,353	1,551
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	233	105
Residential real estate	2,447	2,517
Commercial	1,262	914
Construction of commercial
Commercial real estate	1,262	914
Farm land	166	186
Vacant land	38
Real estate secured	3,913	3,617
Commercial and industrial	757
Municipal
Consumer
Loans receivable, gross	$ 4,670	$ 3,617

Troubled debt restructurings

Troubled debt restructurings $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Integer	Sep. 30, 2019USD ($)Integer	Sep. 30, 2020USD ($)Integer	Sep. 30, 2019USD ($)Integer
Residential real estate
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	1	1	1
Pre-modification balance | $	$ 180	$ 791	$ 180	$ 1,400
Post-modification balance | $	$ 180	$ 791	$ 180	$ 1,400
Quantity | Integer	1	3	1	3
Commercial and industrial
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		1		1
Pre-modification balance | $		$ 274	$ 133	$ 274
Post-modification balance | $		$ 274	$ 133	$ 274
Quantity | Integer	1	1	1	1
Consumer
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer
Pre-modification balance | $				$ 42
Post-modification balance | $				$ 42
Quantity | Integer		1		1
Troubled debt restructurings
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	2	1	2
Pre-modification balance | $	$ 180	$ 1,065	$ 313	$ 1,716
Post-modification balance | $	$ 180	$ 1,065	$ 313	$ 1,716
Quantity | Integer	2	5	2	5
Interest only payments to sell property
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		1		1
Pre-modification balance | $		$ 791		$ 791
Post-modification balance | $		$ 791		$ 791
Quantity | Integer		1		1
Rate reduction
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer
Pre-modification balance | $
Post-modification balance | $
Quantity | Integer
Modification and Rate reduction
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer
Pre-modification balance | $				$ 651
Post-modification balance | $				$ 651
Quantity | Integer		3		3
Workout refinance. Extension of new funds to pay outstanding taxes
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer
Pre-modification balance | $			$ 133
Post-modification balance | $			$ 133
Quantity | Integer	1		1
Modification and term extension
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	1	1	1
Pre-modification balance | $	$ 180	$ 274	$ 180	$ 274
Post-modification balance | $	$ 180	$ 274	$ 180	$ 274
Quantity | Integer	1	1	1	1

Changes in allowance for loan l

Changes in allowance for loan losses - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Residential 1-4 family
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	$ 3,048	$ 2,074	$ 2,393	$ 2,149
Provision	69	175	716	90
Charge-offs	(11)	(31)	(11)	(32)
Recoveries	1	1	9	2
Ending balance	3,107	2,219	3,107	2,219
Acquisition Discount Transfer				10
Residential 5+ multifamily
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	589	495	446	413
Provision	14	(5)	199	77
Charge-offs			(42)
Recoveries
Ending balance	603	490	603	490
Acquisition Discount Transfer
Construction of residential 1-4 family
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	87	79	75	83
Provision	10	4	22
Charge-offs
Recoveries
Ending balance	97	83	97	83
Acquisition Discount Transfer
Home equity lines of credit
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	283	224	197	219
Provision	(8)	(11)	78	(7)
Charge-offs
Recoveries
Ending balance	275	213	275	213
Acquisition Discount Transfer				1
Residential real estate
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	4,007	2,872	3,111	2,864
Provision	85	163	1,015	160
Charge-offs	(11)	(31)	(53)	(32)
Recoveries	1	1	9	2
Ending balance	4,082	3,005	4,082	3,005
Acquisition Discount Transfer				11
Commercial
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	5,160	3,777	3,742	3,048
Provision	317	(149)	1,719	114
Charge-offs	(14)	(20)	(17)	(44)
Recoveries	1		20	2
Ending balance	5,464	3,608	5,464	3,608
Acquisition Discount Transfer				488
Construction of commercial
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	205	127	104	122
Provision	195	23	296	28
Charge-offs
Recoveries
Ending balance	400	150	400	150
Acquisition Discount Transfer
Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	5,365	3,904	3,846	3,170
Provision	512	(126)	2,015	142
Charge-offs	(14)	(20)	(17)	(44)
Recoveries	1		20	2
Ending balance	5,864	3,758	5,864	3,758
Acquisition Discount Transfer				488
Farm land
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	60	47	47	33
Provision	5		18	14
Charge-offs
Recoveries
Ending balance	65	47	65	47
Acquisition Discount Transfer
Vacant land
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	182	89	71	100
Provision	(11)	(14)	100	(25)
Charge-offs
Recoveries
Ending balance	171	75	171	75
Acquisition Discount Transfer
Real estate secured
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	9,614	6,912	7,075	6,167
Provision	591	23	3,148	291
Charge-offs	(25)	(51)	(70)	(76)
Recoveries	2	1	29	4
Ending balance	10,182	6,885	10,182	6,885
Acquisition Discount Transfer				499
Commercial real estate
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	1,515	1,176	1,145	1,158
Provision	(44)	74	326	(54)
Charge-offs		(97)		(146)
Recoveries	1	14	1	45
Ending balance	1,472	1,167	1,472	1,167
Acquisition Discount Transfer				164
Municipal
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	36	30	46	12
Provision	5	17	(5)	35
Charge-offs
Recoveries
Ending balance	41	47	41	47
Acquisition Discount Transfer
Consumer
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	74	81	60	56
Provision	40	(26)	72	11
Charge-offs	(41)	(5)	(66)	(29)
Recoveries	7	3	14	15
Ending balance	80	53	80	53
Acquisition Discount Transfer
Unallocated
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	1,132	688	569	438
Provision	94	6	657	256
Charge-offs
Recoveries
Ending balance	1,226	694	1,226	694
Acquisition Discount Transfer
Totals
Financing Receivable, Nonaccrual [Line Items]
Beginning balance	12,371	8,887	8,895	7,831
Provision	686	94	4,198	539
Charge-offs	(66)	(153)	(136)	(251)
Recoveries	10	18	44	64
Ending balance	$ 13,001	$ 8,846	$ 13,001	8,846
Acquisition Discount Transfer				$ 663

Composition of loans receivab_4

Composition of loans receivable and allowance for loan losses - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Allowance For Loan And Lease Losses Collectively Evaluated Loans [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	$ 347,701	$ 340,847
Residential 5+ multifamily	34,913	34,478
Construction of residential 1-4 family	11,899	11,889
Home equity lines of credit	28,662	33,693
Residential real estate	423,175	420,907
Commercial	304,328	285,462
Construction of commercial	24,687	8,466
Commercial real estate	329,015	293,928
Farm land	3,129	3,455
Vacant land	13,524	7,713
Real estate secured	768,843	726,003
Commercial and industrial	236,572	169,285
Municipal	20,797	21,914
Consumer	7,656	6,349
Unallocated allowance
Totals	1,033,868	923,551
SEC Schedule, 12-09, Allowance, Loan and Lease Loss, Real Estate [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	2,724	2,117
Residential 5+ multifamily	603	446
Construction of residential 1-4 family	97	75
Home equity lines of credit	261	197
Residential real estate	3,685	2,835
Commercial	5,194	3,333
Construction of commercial	400	104
Commercial real estate	5,594	3,437
Farm land	65	47
Vacant land	168	66
Real estate secured	9,512	6,385
Commercial and industrial	1,092	1,143
Municipal	41	46
Consumer	62	59
Unallocated allowance	1,226	569
Totals	11,933	8,202
Allowance For Loan And Lease Losses Individually Evaluated Loans [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	4,846	5,452
Residential 5+ multifamily	967	977
Construction of residential 1-4 family
Home equity lines of credit	233	105
Residential real estate	6,046	6,534
Commercial	4,397	4,333
Construction of commercial
Commercial real estate	4,397	4,333
Farm land	166	186
Vacant land	170	180
Real estate secured	10,779	11,233
Commercial and industrial	876	126
Municipal
Consumer	30	36
Unallocated allowance
Totals	11,685	11,395
SEC Schedule, 12-09, Allowance, Loan and Lease Loss [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	383	276
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	14
Residential real estate	397	276
Commercial	270	409
Construction of commercial
Commercial real estate	270	409
Farm land
Vacant land	3	5
Real estate secured	670	690
Commercial and industrial	380	2
Municipal
Consumer	18	1
Unallocated allowance
Totals	1,068	693
Allowance For Loan And Lease Losses Total Portfolio Loans [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	352,547	346,299
Residential 5+ multifamily	35,880	35,455
Construction of residential 1-4 family	11,899	11,889
Home equity lines of credit	28,895	33,798
Residential real estate	429,221	427,441
Commercial	308,725	289,795
Construction of commercial	24,687	8,466
Commercial real estate	333,412	298,261
Farm land	3,295	3,641
Vacant land	13,694	7,893
Real estate secured	779,622	737,236
Commercial and industrial	237,448	169,411
Municipal	20,797	21,914
Consumer	7,686	6,385
Unallocated allowance
Totals	1,045,553	934,946
Allowance For Loan And Lease Losses Total Portfolio Allowance [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential 1-4 family	3,107	2,393
Residential 5+ multifamily	603	446
Construction of residential 1-4 family	97	75
Home equity lines of credit	275	197
Residential real estate	4,082	3,111
Commercial	5,464	3,742
Construction of commercial	400	104
Commercial real estate	5,864	3,846
Farm land	65	47
Vacant land	171	71
Real estate secured	10,182	7,075
Commercial and industrial	1,472	1,145
Municipal	41	46
Consumer	80	60
Unallocated allowance	1,226	569
Totals	$ 13,001	$ 8,895

Credit quality segments of loan

Credit quality segments of loans receivable and allowance for loan losses - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Totals	$ 1,031,593	$ 927,413
Allowance For Loan And Lease Losses Collectively Evaluated Loans Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	1,018,802	913,648
Potential problem loans 1	15,066	9,903
Impaired loans
Unallocated allowance
Totals	1,033,868	923,551
Allowance For Loan And Lease Losses Collectively Evaluated Allowance Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	9,702	7,251
Potential problem loans 1	1,005	382
Impaired loans
Unallocated allowance	1,226	569
Totals	11,933	8,202
Allowance For Loan And Lease Losses Individually Evaluated Loans Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans
Potential problem loans 1
Impaired loans	11,685	11,395
Unallocated allowance
Totals	11,685	11,395
Allowance For Loan And Lease Losses Individually Evaluated Allowance Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans
Potential problem loans 1
Impaired loans	1,068	693
Unallocated allowance
Totals	1,068	693
Allowance For Loan And Lease Losses Total Portfolio Loans Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	1,018,802	913,648
Potential problem loans 1	15,066	9,903
Impaired loans	11,685	11,395
Unallocated allowance
Totals	1,045,553	934,946
Allowance For Loan And Lease Losses Total Portfolio Allowance Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	9,702	7,251
Potential problem loans 1	1,005	382
Impaired loans	1,068	693
Unallocated allowance	1,226	569
Totals	$ 13,001	$ 8,895

Certain data with respect to lo

Certain data with respect to loans individually evaluated for impairment - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Impaired Loans Specific Allowance Loan Balance Book [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	$ 3,854	$ 4,111
Home equity lines of credit	75
Residential real estate	3,929	4,111
Commercial	3,099	3,309
Construction of commercial
Farm land
Vacant land	38	41
Real estate secured	7,066	7,461
Commercial and industrial	824	93
Consumer	30	36
Totals	7,920	7,590
Impaired Loans Specific Allowance Loan Balance Note [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	3,972	4,190
Home equity lines of credit	75
Residential real estate	4,047	4,190
Commercial	3,148	3,335
Construction of commercial
Farm land
Vacant land	40	41
Real estate secured	7,235	7,566
Commercial and industrial	827	97
Consumer	30	36
Totals	8,092	7,699
Impaired Loans Specific Allowance Loan Balance Average [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	4,034	3,725
Home equity lines of credit	77	52
Residential real estate	4,111	3,777
Commercial	3,401	2,574
Construction of commercial		77
Farm land
Vacant land	40	42
Real estate secured	7,552	6,470
Commercial and industrial	422	16
Consumer	33	21
Totals	8,007	6,507
SEC Schedule, 12-09, Reserve, Impairment of Recognized Servicing Asset [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	383	276
Home equity lines of credit	14
Residential real estate	397	276
Commercial	270	409
Construction of commercial
Farm land
Vacant land	3	5
Real estate secured	670	690
Commercial and industrial	380	2
Consumer	18	1
Totals	1,068	693
Impaired Loans Specific Allowance Loan Income Recognized [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	67	162
Home equity lines of credit
Residential real estate	67	162
Commercial	104	90
Construction of commercial
Farm land
Vacant land		3
Real estate secured	171	255
Commercial and industrial	3	4
Consumer	1
Totals	175	259
Impaired Loans No Specific Allowance Loan Balance Book [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	1,959	2,318
Home equity lines of credit	158	105
Residential real estate	2,117	2,423
Commercial	1,298	1,024
Construction of commercial
Farm land	166	186
Vacant land	132	139
Real estate secured	3,713	3,772
Commercial and industrial	52	33
Consumer
Totals	3,765	3,805
Impaired Loans No Specific Allowance Loan Balance Note [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	2,335	3,081
Home equity lines of credit	507	450
Residential real estate	2,842	3,531
Commercial	1,940	1,733
Construction of commercial
Farm land	322	329
Vacant land	148	157
Real estate secured	5,252	5,750
Commercial and industrial	205	188
Consumer
Totals	5,457	5,938
Impaired Loans No Specific Allowance Loan Balance Average [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	1,912	2,940
Home equity lines of credit	111	391
Residential real estate	2,023	3,331
Commercial	978	1,747
Construction of commercial		39
Farm land	177	203
Vacant land	136	143
Real estate secured	3,314	5,463
Commercial and industrial	59	265
Consumer		3
Totals	3,373	5,731
Impaired Loans No Specific Allowance Loan Income Recognized [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	20	52
Home equity lines of credit	1
Residential real estate	21	52
Commercial	31	54
Construction of commercial
Farm land
Vacant land	7	10
Real estate secured	59	116
Commercial and industrial	2	4
Consumer
Totals	$ 61	$ 120

Assets and liabilities as well

Assets and liabilities as well as the costs of operating and financial leases - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Assets
Operating	$ 1,235		$ 1,235		$ 1,360
Finance	1,427		1,427		1,503
Total Leased Assets	2,662		2,662		2,863
Liabilities
Operating	1,213		1,213		1,360
Finance	1,685		1,685		1,718
Total lease liabilities	2,898		2,898		$ 3,078
Lease cost
Operating leases	64	$ 70	188	$ 193
Amortization of leased assets	25	54	76	174
Interest on finance leases	36	43	107	135
Total lease cost	$ 125	$ 167	$ 371	$ 502
Weighted Average Remaining Lease Term
Operating leases	8 years		8 years		8 years 69 days 8 hours 24 minutes
Financing leases	14 years 255 days 12 hours		14 years 255 days 12 hours		15 years 36 days 12 hours
Weighted Average Discount Rate1
Operating leases	3.73%		3.73%		3.70%
Financing leases	8.38%		8.38%		8.41%

Present value of the net minimu

Present value of the net minimum lease payments - Operating Leases [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
2020	$ 64	$ 47
2021	250	192
2022	199	195
2023	148	197
2024	129	200
Thereafter	623	1,980
Total future minimum lease payments	1,413	2,811
	(200)	(1,126)
Less amount representing interest	200	1,126
Total present value of net future minimum lease payments	$ 1,213	$ 1,685

Balance of loans serviced for o

Balance of loans serviced for others and fair value of mortgage servicing rights - Derivative Financial Instruments, Assets [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Residential mortgage loans serviced for others	$ 130,304	$ 106,255
Fair value of mortgage servicing rights	$ 714	$ 813

Changes in mortgage servicing r

Changes in mortgage servicing rights - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Mortgage Servicing Rights
Balance, beginning of period		$ 353	$ 209	$ 238	$ 228
Originated		270	21	413	25
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Amortization of Premium	[1]	(56)	(13)	(84)	(36)
Balance, end of period		$ 567	$ 217	$ 567	$ 217
[1]	Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

Securities and loans pledged to

Securities and loans pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available - Guarantee Type, Other [Member] - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Securities available-for-sale (at fair value)	$ 61,542	$ 52,845
Loans receivable (at book value)	427,828	434,329
Total pledged assets	$ 489,370	$ 487,174

Cumulative basis adjustment for

Cumulative basis adjustment for fair value hedges - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Hedged Assets Liabilities Carrying Amount [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loans receivable(1)	$ 10,003
Total	10,003
Fair Value Hedging [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loans receivable(1)	3
Total	$ 3

Fair value of derivative financ

Fair value of derivative financial instrument and classification $ in Thousands	Sep. 30, 2020USD ($)
Notional Amount [Member]
Summary of Investment Holdings [Line Items]
Interest Rate Products	$ 10,000
Derivative Instrument Fair Value [Member]
Summary of Investment Holdings [Line Items]
Interest Rate Products	3
Total Derivatives designated as hedge instruments	$ 3

Effects of derivative financial

Effects of derivative financial instruments on Income Statement $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)
Interest Income Derivative Instrument [Member]
Summary of Investment Holdings [Line Items]
Hedged items	$ 3
Derivatives designated as hedging instruments	(3)
Interest Expense Derivative Instrument [Member]
Summary of Investment Holdings [Line Items]
Hedged items
Derivatives designated as hedging instruments

Computation of earnings per sha

Computation of earnings per share - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 4,356	$ 2,988	$ 9,137	$ 8,126
Less: Undistributed earnings allocated to participating securities	(67)	(48)	(131)	(110)
Net income allocated to common stock	4,288	2,940	9,006	8,016
Weighted-average common shares issued	2,843	2,823	2,835	2,815
Less: Unvested restricted stock awards	(44)	(40)	(41)	(34)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,799	2,783	2,794	2,781
Add: Dilutive effect of stock options	8	12	8	12
Weighted-average common shares outstanding used to calculate diluted earnings per common share	$ 2,807	$ 2,795	$ 2,802	$ 2,793
Earnings per common share (basic)	$ 1.53	$ 1.06	$ 3.22	$ 2.88
Earnings per common share (diluted)	$ 1.53	$ 1.05	$ 3.21	$ 2.87

Actual regulatory capital posit

Actual regulatory capital position and minimum capital requirements $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Total Capital (to risk-weighted assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 124,616	$ 114,421
Banking Regulation, Total Risk-Based Capital Ratio, Actual	0.1360	0.1284
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 73,307	$ 71,278
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.080	0.080
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 96,216	$ 93,553
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	0.105	0.105
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 91,634	$ 89,098
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	0.100	0.100
Tier 1 Capital (to risk-weighted assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 113,142	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	12.35	11.83
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 54,980	$ 53,459
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	6	6
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 77,889	$ 75,733
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	8.5	8.5
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 73,307	$ 71,278
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	8	8
Common Equity Tier 1 Capital (to risk-weighted assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 113,142	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	12.35	11.83
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 41,235	$ 40,094
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	4.5	4.5
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 64,144	$ 62,368
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	7	7
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 59,562	$ 57,914
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	6.5	6.5
Tier 1 Capital (to average assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 113,142	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	8.93	9.60
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 50,704	$ 43,944
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	4	4
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 50,704	$ 43,944
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	4	4
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 63,380	$ 54,930
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	5	5

NOTE 10 - BENEFITS (Details Nar

NOTE 10 - BENEFITS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Retirement Benefits [Abstract]
401(k) Plan contribution expense	$ 229		$ 231	$ 667	$ 662
Other post-retirement benefit obligation expense for endorsement split-dollar life insurance arrangements	(32)		(21)	(7)	(69)
ESOP expense	56		105	170	207
Expenses for Non-Qualified Deferred Compensation Plan	33		29	100	87
Restricted stock expense	122		131	393	348
Tax benefit from restricted stock expense	$ 22		24	71	63
Restricted stock granted pursuant to 2017 Long Term Incentive Plan, shares	500	14,975
Restricted stock granted pursuant to 2017 Long Term Incentive Plan, value	$ 18	$ 536
Unrecognized compensation cost relating to awards	906		887	906	887
Forfeitures of restricted stock, amount	$ 21		$ 10	$ 50	$ 31
Forfeitures of restricted stock, shares	500		250	1,200	710
Compensation expense related to Phantom Stock Appreciation Units plan	$ 18		$ 84	$ 101	$ 203
Compensation expense related to RSU plan	$ 80		$ 23	$ 127	$ 46
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, shares				1,755		1,350
Options exercised by former Riverside executive, issued in conjunction with Riverside Bank acquisition, exercise price				$ 17.04		$ 31.11
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, shares				1,350	2,025
Options exercised by former Riverside employee, issued in conjunction with Riverside Bank acquisition, exercise price				$ 17.04	$ 17.04

Assets measured at fair value

Assets measured at fair value - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
U.S. Government agencies and U.S. Government-sponsored enterprises
U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds		882
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Fair Value, Inputs, Level 1 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
U.S. Government agencies and U.S. Government-sponsored enterprises
U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds	916
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Derivative financial instruments
Fair Value, Inputs, Level 2 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes	5,787	4,644
Municipal bonds	26,558	27,193
U.S. Government agencies and U.S. Government-sponsored enterprises	36,508	29,357
U.S. Government agencies	19,037	25,499
Corporate bonds	7,830	5,108
Securities available-for-sale	95,720	91,801
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans
Other real estate owned
Derivative financial instruments	3
Fair Value, Inputs, Level 3 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes
Municipal bonds
U.S. Government agencies and U.S. Government-sponsored enterprises
U.S. Government agencies
Corporate bonds
Securities available-for-sale
CRA mutual funds
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	2,010	1,593
Other real estate owned		314
Derivative financial instruments
Fair Value, Inputs, Level 1, 2 and 3 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes	5,787
Municipal bonds	26,558
U.S. Government agencies and U.S. Government-sponsored enterprises	36,508
U.S. Government agencies	19,037
Corporate bonds	7,830
Securities available-for-sale	95,720
CRA mutual funds	916
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans	2,010
Other real estate owned
Derivative financial instruments	$ 3
Fair Value, Recurring [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes		4,644
Municipal bonds		27,193
U.S. Government agencies and U.S. Government-sponsored enterprises		29,357
U.S. Government agencies		25,499
Corporate bonds		5,108
Securities available-for-sale		91,801
CRA mutual funds		882
Assets at fair value on a non-recurring basis
Collateral dependent impaired loans		1,593
Other real estate owned		$ 314

Carrying value and estimated fa

Carrying value and estimated fair values of financial instruments - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial Assets
Cash and cash equivalents		$ 26,885
Interest bearing time deposits with financial institutions		750
Securities available-for-sale		91,801
CRA mutual fund		882
Federal Home Loan Bank of Boston stock		3,242
Loans held-for-sale		332
Loans receivable, net		927,413
Accrued interest receivable		3,415
Cash surrender value of life insurance policies		20,580
Financial Liabilities
Demand (non-interest-bearing)		237,852
Demand (interest-bearing)		153,314
Money market		239,504
Savings and other		161,112
Certificates of deposit		127,724
Deposits		919,506
Repurchase agreements		8,530
FHLBB advances		50,887
Subordinated debt		9,859
Note payable		246
Finance lease liability		1,718
Accrued interest payable		78
Reported Value Measurement [Member]
Financial Assets
Cash and cash equivalents	$ 95,341
Interest bearing time deposits with financial institutions	750
Securities available-for-sale	95,720
CRA mutual fund	916
Federal Home Loan Bank of Boston stock	3,158
Loans held-for-sale	2,761
Loans receivable, net	1,031,593
Accrued interest receivable	6,055
Cash surrender value of life insurance policies	17,572
Financial Liabilities
Demand (non-interest-bearing)	313,742
Demand (interest-bearing)	201,760
Money market	270,097
Savings and other	181,691
Certificates of deposit	127,851
Deposits	1,095,141
Repurchase agreements	10,885
FHLBB advances	43,880
Subordinated debt	9,877
Note payable	218
Finance lease liability	1,685
Accrued interest payable	210
Derivative financial instruments	3
Estimate of Fair Value Measurement [Member]
Financial Assets
Cash and cash equivalents	95,341	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale	95,720	91,801
CRA mutual fund	916	882
Federal Home Loan Bank of Boston stock	3,158	3,242
Loans held-for-sale	2,802	334
Loans receivable, net	1,058,564	933,287
Accrued interest receivable	6,055	3,415
Cash surrender value of life insurance policies	17,572	20,580
Financial Liabilities
Demand (non-interest-bearing)	313,742	237,852
Demand (interest-bearing)	201,760	153,314
Money market	270,097	239,504
Savings and other	181,691	161,112
Certificates of deposit	129,311	128,629
Deposits	1,096,601	920,411
Repurchase agreements	10,885	8,530
FHLBB advances	44,099	51,028
Subordinated debt	9,965	10,113
Note payable	222	251
Finance lease liability	1,868	1,967
Accrued interest payable	210	78
Derivative financial instruments	3
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Cash and cash equivalents	95,341	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale
CRA mutual fund	916	882
Federal Home Loan Bank of Boston stock	3,158	3,242
Loans held-for-sale
Loans receivable, net
Accrued interest receivable	6,055	3,415
Cash surrender value of life insurance policies	17,572	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	9,965	10,113
Note payable
Finance lease liability
Accrued interest payable	210	78
Derivative financial instruments
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Cash and cash equivalents
Interest bearing time deposits with financial institutions
Securities available-for-sale	95,720	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)	313,742	237,852
Demand (interest-bearing)	201,760	153,314
Money market	270,097	239,504
Savings and other	181,691	161,112
Certificates of deposit	129,311	128,629
Deposits	1,096,601	920,411
Repurchase agreements	10,885	8,530
FHLBB advances	44,099	51,028
Subordinated debt
Note payable	222	251
Finance lease liability
Accrued interest payable
Derivative financial instruments	3
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Cash and cash equivalents
Interest bearing time deposits with financial institutions
Securities available-for-sale
CRA mutual fund
Federal Home Loan Bank of Boston stock
Loans held-for-sale	2,802	334
Loans receivable, net	1,058,564	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	1,868	1,967
Accrued interest payable
Derivative financial instruments

NOTE 12 - SUBSEQUENT EVENTS (De

NOTE 12 - SUBSEQUENT EVENTS (Details Narrative)	Nov. 13, 2020$ / shares
Subsequent Events [Abstract]
Dividend declared	$ 0.29