Salisbury Bancorp (SAL) 10-K 12 Mar 21 2020 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 01, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Public float			$ 116,500,000
Entity Common Stock, Shares Outstanding		2,845,147

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 10,599	$ 7,406
Interest bearing demand deposits with other banks	82,563	19,479
Total cash and cash equivalents	93,162	26,885
Interest bearing Time Deposits with Financial Institutions	750	750
Securities
Available-for-sale at fair value	98,411	91,801
CRA mutual fund	917	882
Federal Home Loan Bank of Boston stock at cost	1,713	3,242
Loans held-for-sale	2,735	332
Loans receivable, net (allowance for loan losses: $13,754 and $8,895)	1,027,738	927,413
Other real estate owned		314
Bank premises and equipment, net	20,355	17,385
Goodwill	13,815	13,815
Intangible assets (net of accumulated amortization: $5,207 and $4,886)	674	995
Accrued interest receivable	6,373	3,415
Cash surrender value of life insurance policies	21,182	20,580
Deferred taxes	2,412	1,249
Other assets	3,423	3,390
Total Assets	1,293,660	1,112,448
Deposits
Demand (non-interest bearing)	310,769	237,852
Demand (interest bearing)	218,869	153,314
Money market	278,146	239,504
Savings and other	189,776	161,112
Certificates of deposit	131,514	127,724
Total deposits	1,129,074	919,506
Repurchase agreements	7,116	8,530
Federal Home Loan Bank of Boston advances	12,639	50,887
Subordinated debt	9,883	9,859
Note payable	208	246
Finance lease obligations	1,673	1,718
Accrued interest and other liabilities	8,315	8,047
Total Liabilities	1,168,908	998,793
Shareholders' Equity
Outstanding: 2,843,292 and 2,825,912	284	283
Unearned compensation – restricted stock awards	(774)	(795)
Paid-in capital	45,264	44,490
Retained earnings	76,974	68,320
Accumulated other comprehensive income, net	3,004	1,357
Total Shareholders' Equity	124,752	113,655
Total Liabilities and Shareholders' Equity	$ 1,293,660	$ 1,112,448

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
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	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest and dividend income
Interest and fees on loans	$ 40,796	$ 39,742	$ 37,072
Interest on debt securities
Taxable	1,671	2,223	2,231
Tax exempt	672	545	136
Other interest and dividends	295	903	933
Total interest and dividend income	43,434	43,413	40,372
Interest expense
Deposits	3,890	7,324	4,656
Repurchase agreements	20	24	12
Finance lease	141	170	178
Note payable	14	16	18
Subordinated debt	618	624	624
Federal Home Loan Bank of Boston advances	605	1,143	1,733
Total interest expense	5,288	9,301	7,221
Net interest and dividend income	38,146	34,112	33,151
Provision for loan losses	5,038	955	1,728
Net interest and dividend income after provision for loan losses	33,108	33,157	31,423
Non-interest income
Trust and wealth advisory	4,194	3,995	3,700
Service charges and fees	3,072	4,028	3,718
Mortgage banking activities, net	1,621	423	397
Gains (losses) on CRA mutual fund	19	25	(18)
Gains on securities, net	196	263	318
Bank-owned life insurance (“BOLI”) income	495	392	337
Gain on bank-owned life insurance	601		341
Other	125	124	152
Total non-interest income	10,323	9,250	8,945
Non-interest expense
Salaries	11,828	12,048	12,003
Employee benefits	4,533	4,384	4,280
Premises and equipment	4,019	4,016	4,535
Data processing	2,211	2,201	2,119
Professional fees	2,741	2,213	2,236
OREO gains, losses and write-downs, net		408	275
Collections, OREO, and appraisals	323	436	578
FDIC insurance	466	261	579
Marketing and community support	573	619	815
Amortization of intangibles	321	388	454
Other	2,023	1,938	1,961
Total non-interest expense	29,038	28,912	29,835
Income before income taxes	14,393	13,495	10,533
Income tax provision	2,453	2,359	1,709
Net income	11,940	11,136	8,824
Net income available to common stock	$ 11,775	$ 10,976	$ 8,713
Basic earnings per common share	$ 4.21	$ 3.95	$ 3.15
Diluted earnings per common share	4.20	3.93	3.13
Common dividends per share	$ 1.16	$ 1.12	$ 1.12

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net income	$ 11,940	$ 11,136	$ 8,824
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale	2,280	2,258	(202)
Reclassification of net realized gains in net income	(196)	(263)	(318)
Unrealized gains (losses) on securities available-for-sale	2,084	1,995	(520)
Income tax (expense) benefit	(437)	(418)	105
Unrealized gains (losses) on securities available-for-sale, net of tax	1,647	1,577	(415)
Other comprehensive income (loss), net of tax	1,647	1,577	(415)
Comprehensive income	$ 13,587	$ 12,713	$ 8,409

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, 2017 at Dec. 31, 2017	$ 279	$ 42,998	$ 54,664	$ (606)	$ 179	$ 97,514
Shares, Outstanding, Beginning Balance at Dec. 31, 2017	2,785,216
Net income for year			8,824			8,824
Adoption of ASU 2016-01			(16)		16
Other comprehensive income, net of tax					(415)	(415)
Common stock dividends declared ($1.16 per share)			(3,133)			(3,133)
Stock options exercised	$ 1	221				222
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	9,155
Issuance of restricted common stock	$ 1	409		(410)
Stock Issued During Period, Shares, Restricted Stock Award, Gross	9,250
Forfeiture of restricted common stock		(33)		33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(800)
Issuance of directors restricted stock awards		175		(175)
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards]	3,960
Stock based compensation-restricted stock awards				447		447
Balances at December 31, 2020 at Dec. 31, 2018	$ 281	43,770	60,339	(711)	(220)	103,459
Shares, Outstanding, Ending Balance at Dec. 31, 2018	2,806,781
Net income for year			11,136			11,136
Other comprehensive income, net of tax					1,577	1,577
Common stock dividends declared ($1.16 per share)			(3,155)			(3,155)
Stock options exercised		82				82
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	4,725
Issuance of restricted common stock	$ 2	457		(459)
Stock Issued During Period, Shares, Restricted Stock Award, Gross	11,530
Forfeiture of restricted common stock		(31)		31
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(710)
Issuance of directors restricted stock awards		142		(142)
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards]	3,600
Stock based compensation-restricted stock awards		70		486		556
Balances at December 31, 2020 at Dec. 31, 2019	$ 283	44,490	68,320	(795)	1,357	113,655
Shares, Outstanding, Ending Balance at Dec. 31, 2019	2,825,912
Retired Common Stock
Stock Repurchased and Retired During Period, Shares	(14)
Net income for year			11,940			11,940
Other comprehensive income, net of tax					1,647	1,647
Common stock dividends declared ($1.16 per share)			(3,286)			(3,286)
Stock options exercised		53				53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	3,105
Issuance of restricted common stock	$ 1	439		(440)
Stock Issued During Period, Shares, Restricted Stock Award, Gross	12,275
Forfeiture of restricted common stock		(50)		50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	(1,200)
Issuance of directors restricted stock awards		114		(114)
[custom:StockIssuedDuringPeriodSharesDirectorsRestrictedStockAwards]	3,200
Stock based compensation-restricted stock awards		218		525		743
Balances at December 31, 2020 at Dec. 31, 2020	$ 284	$ 45,264	$ 76,974	$ (774)	$ 3,004	$ 124,752
Shares, Outstanding, Ending Balance at Dec. 31, 2020	2,843,292

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared, price per share	$ 1.16	$ 1.12	$ 1.12

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Activities
Net income	$ 11,940	$ 11,136	$ 8,824
(Accretion), amortization and depreciation
Securities	548	332	31
Bank premises and equipment	1,426	1,591	1,668
Core deposit intangible	321	388	454
Amortization of modification fees on Federal Home Loan Bank of Boston advances	70	232	232
Subordinated debt issuance costs	24	24	24
Mortgage servicing rights	151	51	48
Fair value adjustment on loans		(64)	(779)
Fair value adjustment on deposits	(4)	(8)	(37)
(Gains) and losses, including write-downs
Sales and calls of securities available-for-sale, net	(196)	(263)	(318)
Sales of loans, excluding capitalized servicing rights	(1,204)	(82)	(71)
CRA Mutual Fund	(19)	(25)	18
Other real estate owned		408	275
Disposals of premises and equipment			85
Gain on redemption of bank owned life insurance	(601)		(341)
Provision for loan losses	5,038	955	1,728
Proceeds from loans sold	59,786	6,447	4,555
Loans originated for sale	(60,985)	(6,697)	(3,815)
Decrease (increase) in deferred loan origination fees and costs, net	1,734	59	(132)
Mortgage servicing rights originated	(534)	(61)	(43)
Increase in mortgage servicing rights impairment reserve	9
Increase in interest receivable	(2,958)	(267)	(478)
Deferred tax benefit	(1,600)	(391)	(494)
Decrease (increase) in prepaid expenses	393	(174)	(50)
Increase in cash surrender value of life insurance policies	(495)	(392)	(337)
Decrease in income tax receivable		137	760
Increase in income tax payable	83	235
(Increase) decrease in other assets	(52)	846	48
Increase in accrued expenses	327	352	769
(Decrease) increase in interest payable	(35)	(159)	138
(Decrease) increase in other liabilities	(107)	(835)	68
Stock based compensation-restricted stock awards	743	556	447
Net cash provided by operating activities	13,803	14,330	13,277
Investing Activities
Redemptions (purchases) of Federal Home Loan Bank of Boston stock, net	1,529	1,254	(683)
Purchases of securities available-for-sale	(37,392)	(53,467)	(41,631)
Purchases of interest-bearing time deposits with financial institutions		(750)
Proceeds from sales of securities available-for-sale	15,589	41,814	10,036
Proceeds from calls of securities available-for-sale	655	75	695
Proceeds from maturities of securities available-for-sale	16,270	13,521	17,061
Reinvestment of CRA Mutual Fund	(16)	(21)	(19)
Loan originations and principal collections, net	(107,420)	(19,172)	(102,273)
Recoveries of loans previously charged off	323	88	74
Proceeds from sales of other real estate owned	314	1,088	289
Capital expenditures	(4,367)	(2,055)	(1,393)
Purchase of bank owned life insurance	(3,500)	(5,750)
Death benefit proceeds received	3,994
Net cash and cash equivalents paid in branch acquisition			(298)
Net cash utilized by investing activities	(114,021)	(23,375)	(118,142)
Financing Activities
Increase in deposit transaction accounts, net	205,778	26,722	58,658
Increase (decrease) in time deposits, net	3,794	(33,947)	44,300
(Decrease) increase in securities sold under agreements to repurchase, net	(1,414)	4,426	2,436
Short-term Federal Home Loan Bank of Boston advances, net	(21,000)	20,500	(17,500)
Long-term Federal Home Loan Bank of Boston advances	6,000		37,000
Long-term Federal Home Loan Bank of Boston repayments	(30,000)	(37,000)	(7,000)
Amortizing Federal Home Loan Bank of Boston advances	10,000
Amortizing Federal Home Loan Bank of Boston repayments	(3,318)
Principal payments on note payable	(38)	(34)	(33)
Decrease in finance lease obligation	(74)	(109)	(127)
Stock options exercised	53	82	222
Issuance of shares for directors’ fees			1
Common stock dividends paid	(3,286)	(3,155)	(3,133)
Net cash provided by (applied to) financing activities	166,495	(22,515)	114,824
Net increase (decrease) in cash and cash equivalents	66,277	(31,560)	9,959
Cash and cash equivalents, beginning of year	26,885	58,445	48,486
Cash and cash equivalents, end of year	93,162	26,885	58,445
Cash paid during year
Interest	5,233	9,212	6,864
Income taxes	3,970	2,378	1,443
Non-cash transfers
From loans to other real estate owned			1,654
Finance Lease Obligation			1,373
Finance Lease Paid-off
Fixed Asset		(1,158)
Lease liability		1,254
Deferred gain applied to bank premises and equipment		(96)
Transfer of unearned credit-related discount to allowance for loan losses		663
Adoption of ASU 2016-02 - Other assets		1,552
Adoption of ASU 2016-02 - Other liabilities		(1,552)
Extension of operating lease-other assets	29
Extension of operating lease-other liabilities	(29)
Adoption of ASU 2016-01			16
BOLI proceeds included in other assets			621
Branch acquisition (1)
Cash and cash equivalents (paid) acquired			(298)
Net loans acquired			7,849
Fixed assets acquired (including capital leases)			761
Accrued interest receivable acquired			5
Other assets acquired			6
Deposits assumed			$ 8,323

NOTE 1 - SUMMARY OF SIGNIFICANT

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Salisbury Bancorp, Inc. (“Salisbury” or the “Company”) is the bank holding company for Salisbury Bank (the “Bank”), a State chartered commercial bank. Salisbury's activity is currently limited to the holding of the Bank's outstanding capital stock and the Bank is Salisbury's only subsidiary and its primary investment. The Bank is a Connecticut chartered and Federal Deposit Insurance Corporation (the "FDIC") insured commercial bank headquartered in Lakeville, Connecticut. The Bank's principal business consists of attracting deposits from the public and using such deposits, with other funds, to make various types of loans and investments. The Bank conducts its business through fourteen full-service offices located in the Counties of Litchfield Connecticut, Berkshire, Massachusetts and Dutchess, Orange and Ulster, New York. Principles of Consolidation The consolidated financial statements include those of Salisbury and the Bank after elimination of all inter-company accounts and transactions. Basis of Financial Statement Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and general practices within the financial services industry. In preparing the consolidated 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 consolidated 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, potential other-than-temporary impairment of securities and potential impairment of goodwill and intangibles. Certain reclassifications have been made to the 2019 and 2018 consolidated financial statements to make them consistent with the 2020 presentation. Cash and Cash Equivalents Cash and cash equivalents include cash and balances due from banks and interest-bearing demand deposits in other banks. Due to the nature of cash and cash equivalents, Salisbury estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions. Interest Bearing Time Deposits with Financial Institutions Interest bearing time deposits are balances held in CD’s in a CDARS program. Due to the nature of time deposits, Salisbury estimated that the carrying amount of such instruments are at par. Securities Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. Mutual Funds The Company holds a mutual fund investment which is reported as an equity investment with a readily determined fair value. Changes in the fair value of the mutual fund holding are reported in income as gains (losses) on CRA mutual fund with a corresponding increase or decrease in its carrying value on the consolidated balance sheet. Federal Home Loan Bank of Boston Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The 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 December 31, 2020. Deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. Loans Loans receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs on originated loans and unamortized premiums on purchased loans. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. Loans receivable includes loans processed under the SBA’s PPP program. The PPP loans are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. The Bank’s loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms. On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. and implemented a loan payment deferral program which allows residential, commercial and consumer borrowers, who have been adversely affected by the virus and whose loans were not more than 30 days past due at December 31, 2019, to defer loan payments for up to three months. Borrowers may apply to the Bank for additional deferments, which will be evaluated on a case-by-case basis. The Bank will continue to accrue interest on such deferred payments, which will be added to a borrower’s final payment. Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. Determining the adequacy of the allowance and reserves at any given period is difficult, particularly during deteriorating or uncertain economic periods, and management must make estimates using assumptions and information that are often subjective and changing rapidly. The review of credit exposure related to loans is a continuing event in light of the pandemic, a changing economy and the dynamics of the banking and regulatory environment. Should the economic climate deteriorate, borrowers could experience difficulty and the level of non-performing loans, charge-offs and delinquencies could rise, requiring increased provisions and reserves. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. In management's judgment, Salisbury remains adequately reserved both against total loans and non-performing loans at December 31, 2020. Management’s loan risk rating assignments, loss percentages and specific reserves are subjected annually to an independent credit review by an external firm. In addition, the Bank is examined annually on a rotational basis by one of its two primary regulatory agencies, the FDIC and CTDOB. As an integral part of their examination process, the FDIC and CTDOB review the adequacy and methodology of the Bank's credit risk ratings and allowance for loan losses. The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. Loans collectively evaluated for impairment The component of the allowance for loan losses for loans collectively evaluated for impairment is estimated by stratifying loans into segments and credit risk ratings and then applying management’s general loss allocation factors. Salisbury stratified its loans into the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and home equity lines of credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. The general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels or trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment and are risk-weighted such that higher risk loans generally have a higher reserve percentage. In second quarter 2020, management added a new discrete loan pool for loans deemed to be a higher risk due to COVID-19. This new loan pool included commercial real estate and commercial and industrial loans that were deemed by management to be a higher risk of default as a result of the pandemic as well as residential and consumer loans which have been granted a second loan payment deferral by management. In addition, management increased the risk weights for loans with an internal risk rating of “4” (Watch), “5” (Special Mention) and “6” (Substandard”) to reflect the higher degree of inherent credit risk associated with these loans as a result of COVID-19. Management will actively monitor the population of loans in the new loan pool and evaluate the risk weightings to determine if further adjustments are warranted based on the impact of COVID-19. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate Commercial real estate Construction loans Commercial and industrial loans Farm Vacant land Municipal loans Consumer loans Loans individually evaluated for impairment This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans (except consumer loans and homogeneous residential real estate loans) by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the collateral if the loan is collateral dependent or third-party market loan pricing. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In seeking to protect the best interests of the Bank, Salisbury may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not retain control over the assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. Mortgage Servicing Rights As part of our growth and risk management strategy, Salisbury from time to sells whole loans. typically residential loans. Salisbury’s ability to sell whole loans benefits the Bank by freeing up capital and funding to lend to new customers. Additionally, we typically earn a gain on the sale of loans sold and receive a servicing fee while maintaining the customer relationship. Mortgage (“MSRs”), which the bank evaluates with the assistance of a third party on a quarterly basis, are included on the consolidated balance and are accounted for under the amortization method. that method mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Refinance activities are considered in estimating the period of net servicing revenues. Other Real Estate Owned (“OREO”) OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are initially transferred at fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. As of December 31, 2020, and 2019, the recorded investment in residential mortgage loans collateralized by residential real estate that were in the process of foreclosure was $0.1 million and $0.1 million, respectively. Income Taxes Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. A valuation allowance is established against deferred tax assets when, based upon all available evidence, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. Bank Premises and Equipment Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. Guidelines for expected useful life are as follows: • Buildings/Improvements – 39 years • Land Improvements – 15 years • Furniture and Fixtures – 7 years • Computer Equipment – 5 years • Software – 3 years Intangible Assets Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in business combinations accounted for using the acquisition method of accounting. Salisbury’s intangible assets at December 31, 2020, and 2019, include goodwill of $2.4 million arising from the purchase of a branch office in 2001, $7.2 million arising from the 2004 acquisition of Canaan National Bancorp, Inc., $319 thousand arising from the 2007 purchase of a branch office in New York State, $2.7 million arising from the acquisition of Riverside Bank in December 2014 and $1.3 million from the purchase of an additional branch office in New York in 2017. See Note 9. On an annual basis, management assesses intangible assets for impairment. For fiscal year 2019, this assessment was performed as of December 31, 2019. For fiscal year 2020, however, management performed the assessment as of November 30, 2020. Management changed the date of the assessment to ensure that there was adequate time to review the results and record an impairment charge, if necessary, prior to finalizing the financial statements for fiscal year 2020. There were no material changes in the Bank’s operating environment or financial results during the month of December 2020 that would have affected the outcome of the assessment. Based on the assessment, intangible assets were not impaired as of November 30, 2020. If a permanent loss in value was indicated, an impairment charge to income would have been recognized. Derivative Instruments and Hedging Activities As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance in Topic 825, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheet at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Bank reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of tier one capital and the total cash surrender value of the life insurance policies is limited to 25% of tier one capital. Stock Based Compensation Stock based compensation expense is recognized, based on the fair value at the date of grant on a straight-line basis over the period of time between the grant date and vesting date. The expense for performance based restricted stock awards is accrued over a three year performance period based on the probability of achieving pre-determined thresholds or metrics. Advertising Expense Advertising costs of $393 thousand and $480 thousand in 2020 and 2019, respectively, are expensed as incurred and not capitalized. Statements of Cash Flows For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions. Computation of Earnings per Share The Company 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. Unvested performance based restricted stock units issued by the Company do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. 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. Revenue Recognition A significant portion of Salisbury’s revenue, including interest income from loans and investments, falls outside the scope of ASC 606. Revenue from Salisbury’s Trust and Wealth Advisory business, service charges and fees and interchange fees, however, are within the scope of ASC 606. Revenue for these in-scope services are recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when the services are transferred to customers. Revenue is measured as the amount of consideration Salisbury expects to receive in exchange for providing the services to a customer (“transaction price”). To the extent the transaction price includes variable consideration, Salisbury estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which Salisbury expects to be entitled. Variable consideration is included in the transaction price if, in Salisbury’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of Salisbury’s anticipated performance and all information (historical, current, and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. Salisbury determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through fee schedules provided to its customers or through past transactions, Salisbury estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new or changes the existing enforceable rights and obligations. Generally, contract modifications are for products or services that are distinct from the existing contract and are accounted for as if they were a new and separate contract. The original contract is still accounted for according to its original terms. Trust and Wealth Advisory The Trust and Wealth Advisory business generates revenue through a range of fiduciary services including trust and estate administration, wealth advisory, and investment management to individuals, families, businesses and institutions. Revenue from these services is generally recognized over time and are typically based on the market value of assets under administration and established fee schedules. Certain fees, such as real estate sale fees, asset liquidation

NOTE 2 _ MERGERS AND ACQUISITIO

NOTE 2 – MERGERS AND ACQUISITIONS	12 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
NOTE 2 – MERGERS AND ACQUISITIONS	NOTE 2 – MERGERS AND ACQUISITIONS On December 5, 2014, the Company acquired Riverside Bank. Riverside Bank operated four banking offices serving Dutchess, Ulster and Orange Counties in New York, and was merged with and into the Bank. In first quarter 2019, Salisbury transferred the remaining unearned credit-related discount on loans acquired in its 2014 acquisition of Riverside Bank to the allowance for loan losses. There has been no activity on mergers and acquisitions in 2020. The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30 Year Ended December 31, (in thousands) 2019 Balance at beginning of period $ 204 Acquisitions - Accretion (204 ) Disposals - Reclassification from non-accretable to accretable - Balance at end of period $ -

NOTE 3 - SECURITIES

NOTE 3 - SECURITIES	12 Months Ended
	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
NOTE 3 - SECURITIES	NOTE 3 - SECURITIES The composition of securities (in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2020 Available-for-sale U.S. Government Agency notes $ 7,735 $ 153 $ 37 $ 7,851 Municipal bonds 25,831 1,787 1 27,617 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,240 1,376 43 36,573 Collateralized mortgage obligations: U.S. Government agencies 17,054 400 - 17,454 Corporate bonds 8,750 166 - 8,916 Total securities available-for-sale $ 94,610 $ 3,882 $ 81 $ 98,411 CRA mutual fund $ 917 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,713 $ - $ - $ 1,713 (in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 - 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ - $ - $ 3,242 Sales of securities available-for-sale and gross gains and gross losses realized Years ended December 31, (in thousands) 2020 2019 2018 Proceeds $ 15,589 $ 41,814 $ 10,036 Gains realized 293 371 361 Losses realized (97 ) (108 ) (43 ) Net gains realized 196 263 318 Income tax provision 41 55 67 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 December 31, 2020 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale U.S. Government Agency notes $ 2,553 $ 36 $ 20 $ 1 $ 2,573 $ 37 Municipal bonds 558 1 - - 558 1 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 3,761 42 45 1 3,806 43 Total temporarily impaired securities $ 6,872 $ 79 $ 65 $ 2 $ 6,937 $ 81 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale U.S. Government Agency notes $ - $ - $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 - - 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 - - 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108 The table below presents the amortized cost, fair value and tax equivalent yield of securities, by maturity December 31, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ 2,497 $ 2,545 3.48 % Total 2,497 2,545 3.48 Municipal bonds After 5 years but within 10 years 2,731 2,910 2.59 After 10 years 23,100 24,707 3.02 Total 25,831 27,617 2.98 Corporate bonds After 5 years but within 10 years 8,750 8,916 5.22 Mortgage-backed securities, CMO securities and SBA securities 57,532 59,333 2.00 Securities available-for-sale $ 94,610 $ 98,411 2.61 % (1) Yield is based on amortized cost. Salisbury evaluates debt securities for OTTI where the fair value of a security is less than its amortized cost basis at the balance sheet date. As part of this process, Salisbury considers whether it has the intent to sell each debt security and whether it is more likely than not that it will be required to sell the security before its anticipated recovery. If either of these conditions is met, Salisbury recognizes an OTTI charge to earnings equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For securities that meet neither of these conditions, an analysis is performed to determine if any of these securities are at risk for OTTI. The following summarizes, by security type, the basis for evaluating if the applicable debt securities were OTTI at December 31, 2020. U.S. Government Agency notes: The contractual cash flows are guaranteed by the U.S. government. Six securities had unrealized losses at December 31, 2020, which approximated 1.41% 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 December 31, 2020. Municipal bonds: Salisbury performed a detailed analysis of the municipal bond portfolio. One security was in an unrealized loss position at December 31, 2020, which approximated 0.12% of its amortized cost. Management believes the unrealized loss position is attributable to interest rate and spread movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of 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 December 31, 2020. U.S. Government agency and U.S. Government-sponsored mortgage-backed securities and collateralized mortgage obligations: The contractual cash flows are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Five securities had unrealized losses at December 31, 2020, which approximated 1.11% 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 December 31, 2020. The Federal Home Loan Bank of Boston (FHLBB) is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value five years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Bank currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Bank’s FHLBB stock as of December 31, 2020. Deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock. See Note 7 to the Consolidated Financial Statements for further information.

NOTE 4 - LOANS

NOTE 4 - LOANS	12 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
NOTE 4 - LOANS	NOTE 4 - LOANS The composition of loans receivable and loans held-for-sale December 31, 2020 2019 (in thousands) Total Loans Total Loans Residential 1-4 family $ 352,001 $ 346,299 Residential 5+ multifamily 37,058 35,455 Construction of residential 1-4 family 8,814 11,889 Home equity lines of credit 27,804 33,798 Residential real estate 425,677 427,441 Commercial 310,841 289,795 Construction of commercial 31,722 8,466 Commercial real estate 342,563 298,261 Farm land 3,198 3,641 Vacant land 14,079 7,893 Real estate secured 785,517 737,236 Commercial and industrial 227,148 169,411 Municipal 21,512 21,914 Consumer 7,687 6,385 Loans receivable, gross 1,041,864 934,946 Deferred loan origination (fees) and costs, net (372 ) 1,362 Allowance for loan losses (13,754 ) (8,895 ) Loans receivable, net $ 1,027,738 $ 927,413 Loans held-for-sale Residential 1-4 family $ 2,735 $ 332 Salisbury has entered into loan participation agreements with other banks and transferred a portion of its originated loans to the participating banks. Transferred amounts are accounted for as sales and excluded from Salisbury’s loans receivable. Salisbury and its participating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. Salisbury services the loans on behalf of the participating lenders and, as such, collects cash payments from the borrowers, remits payments (net of servicing fees) to participating lenders and disburses required escrow funds to relevant parties. Salisbury also has entered into loan participation agreements with other banks and purchased a portion of the other banks’ originated loans. Purchased amounts are accounted for as loans without recourse to the originating bank. Salisbury and its originating lenders share ratably in any gains or losses that may result from a borrower’s lack of compliance with contractual terms of the loan. The originating banks service the loans on behalf of the participating lenders and, as such, collect cash payments from the borrowers, remit payments (net of servicing fees) to participating lenders and disburse required escrow funds to relevant parties. At December 31, 2020 and 2019, Salisbury serviced commercial loans for other banks under loan participation agreements totaling $ 65.3 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 40% of the Bank’s commercial loan portfolio are to entities who operate rental properties, which include commercial strip malls, smaller rental units as well as multi-unit dwellings. Approximately 14% of the Bank’s commercial loans are to entities in the hospitality industry, which includes hotels, bed & breakfast inns and restaurants. Approximately 8% of the Bank’s commercial loans are to educational institutions and approximately 6% of Salisbury’s commercial loans are to entertainment and recreation related businesses, which include a ski resort, bowling alleys and amusement parks. Salisbury’s commercial real estate exposure as a percentage of the Bank’s total risk-based capital, which represents Tier 1 plus Tier 2 capital, was approximately 182% as of December 31, 2020 and 169% at December 31, 2019 compared to the regulatory monitoring guideline of 300%. 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. Management is currently unable to predict the extent to which the COVID-19 pandemic will impact these and other borrowers. Salisbury processed 932 applications for loans of nearly $ 100 For the twelve months ended December 31, 2020, Salisbury recorded net interest income of $ 683 1.4 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. Salisbury is currently evaluating certain enhancements to its credit risk rating model to further refine the assessment of credit risk in the loan portfolio. Loans rated as "special mention" (5) possess credit deficiencies or potential weaknesses deserving management’s close attention that if left uncorrected may result in deterioration of the repayment prospects for the loans at some future date. Loans rated as "substandard" (6) are loans where the Bank’s position is clearly not protected adequately by borrower current net worth or payment capacity. These loans have well defined weaknesses based on objective evidence and include loans where future losses to the Bank may result if deficiencies are not corrected, and loans where the primary source of repayment such as income is diminished and the Bank must rely on sale of collateral or other secondary sources of collection. Loans rated "doubtful" (7) have the same weaknesses as substandard loans with the added characteristic that the weakness makes collection or liquidation in full, given current facts, conditions, and values, to be highly improbable. The possibility of loss is high, but due to certain important and reasonably specific pending factors, which may work to strengthen the loan, its reclassification as an estimated loss is deferred until its exact status can be determined. Loans classified as "loss" (8) are considered uncollectible and of such little value that continuance as Bank assets is unwarranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this loan even though partial recovery may be made in the future. Management actively reviews and tests its credit risk ratings against actual experience and engages an independent third-party to annually validate its assignment of credit risk ratings. In addition, the Bank’s loan portfolio is examined periodically by its regulatory agencies, the FDIC and the CTDOB. The composition of loans receivable by risk rating grade (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2020 Residential 1-4 family $ 342,243 $ 5,615 $ 4,143 $ - $ - $ 352,001 Residential 5+ multifamily 35,272 90 1,696 - - 37,058 Construction of residential 1-4 family 8,814 - - - - 8,814 Home equity lines of credit 27,393 257 154 - - 27,804 Residential real estate 413,722 5,962 5,993 - - 425,677 Commercial 276,866 15,565 18,410 - - 310,841 Construction of commercial 31,493 - 229 - - 31,722 Commercial real estate 308,359 15,565 18,639 - - 342,563 Farm land 1,612 - 1,586 - - 3,198 Vacant land 13,992 50 37 - - 14,079 Real estate secured 737,685 21,577 26,255 - - 785,517 Commercial and industrial 224,906 1,271 632 339 - 227,148 Municipal 21,512 - - - - 21,512 Consumer 7,660 - 27 - - 7,687 Loans receivable, gross $ 991,763 $ 22,848 $ 26,914 $ 339 $ - $ 1,041,864 (in thousands) Pass Special mention Substandard Doubtful Loss Total December 31, 2019 Residential 1-4 family $ 337,302 $ 4,278 $ 4,719 $ - $ - $ 346,299 Residential 5+ multifamily 33,619 99 1,737 - - 35,455 Construction of residential 1-4 family 11,889 - - - - 11,889 Home equity lines of credit 33,381 312 105 - - 33,798 Residential real estate 416,191 4,689 6,561 - - 427,441 Commercial 271,708 10,964 7,052 71 - 289,795 Construction of commercial 8,225 - 241 - - 8,466 Commercial real estate 279,933 10,964 7,293 71 - 298,261 Farm land 1,934 - 1,707 - - 3,641 Vacant land 7,834 59 - - - 7,893 Real estate secured 705,892 15,712 15,561 71 - 737,236 Commercial and industrial 167,458 443 1,510 - - 169,411 Municipal 21,914 - - - - 21,914 Consumer 6,344 3 38 - - 6,385 Loans receivable, gross $ 901,608 $ 16,158 $ 17,109 $ 71 $ - $ 934,946 The composition of loans receivable by delinquency status is as follows: Past due (In thousands) Current 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2020 Residential 1-4 family $ 349,382 $ 1,419 $ 308 $ 673 $ 219 $ 2,619 $ - $ 1,508 Residential 5+ multifamily 36,197 - - - 861 861 - 861 Construction of residential 1-4 family 8,814 - - - - - - - Home equity lines of credit 27,522 157 9 - 116 282 - 154 Residential real estate 421,915 1,576 317 673 1,196 3,762 - 2,523 Commercial 307,927 1,855 530 95 434 2,914 - 2,544 Construction of commercial 31,722 - - - - - - - Commercial real estate 339,649 1,855 530 95 434 2,914 - 2,544 Farm land 2,594 154 450 - - 604 - 158 Vacant land 14,079 - - - - - - 37 Real estate secured 778,237 3,585 1,297 768 1,630 7,280 - 5,262 Commercial and industrial 224,496 2,148 457 1 46 2,652 12 374 Municipal 21,512 - - - - - - - Consumer 7,677 10 - - - 10 - - Loans receivable, gross $ 1,031,922 $ 5,743 $ 1,754 $ 769 $ 1,676 $ 9,942 $ 12 $ 5,636 Past due (In thousands) Current 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- 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 occurring during the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 3 $ 1,416 $ 1,416 Commercial real estate 1 133 133 4 977 1,191 Consumer - - - 1 - 36 Troubled debt restructurings 2 $ 313 $ 313 8 $ 2,393 $ 2,643 Interest only payments to sell property - $ - $ - 1 $ 791 $ 791 Rate reduction - - - - - - Modification and Rate reduction - - - 2 625 625 Extension of new funds to pay outstanding taxes - - - 3 259 442 Modification and term extension 2 313 313 2 718 785 Troubled debt restructurings 2 $ 313 $ 313 8 $ 2,393 $ 2,643 For the twelve months ended December 2020, there were two troubled debt restructurings. Salisbury currently does not have any commitments to lend additional funds to TDR loans. The following table discloses the recorded investment and number of modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period Modifications that Subsequently Defaulted For the twelve months ending December 31, 2020 For the twelve months ending December 31, 2019 Quantity Balance Quantity Balance Troubled Debt Restructurings Residential 1-4 family 1 178 - - Commercial real estate - - 1 274 Total 1 178 1 274 Impaired loans Loans individually evaluated for impairment (impaired loans) are loans for which Salisbury does not expect to collect all principal and interest in accordance with the contractual terms of the loan. Impaired loans include all modified loans classified as TDRs and loans on non-accrual status. The components of impaired loans December 31, (in thousands) 2020 2019 Non-accrual loans, excluding troubled debt restructured loans $ 4,091 $ 2,604 Non-accrual troubled debt restructured loans 1,546 1,013 Accruing troubled debt restructured loans 6,272 7,778 Total impaired loans $ 11,909 $ 11,395 Commitments to lend additional amounts to impaired borrowers $ - $ - Allowance for Loan Losses In first quarter 2019 Salisbury transferred the remaining unearned credit-related discount on loans acquired in its 2014 acquisition of Riverside Bank to the allowance for loan losses. As a result of this transfer, which is reflected in the table below as the “acquisition discount transfer”, gross loans receivable and the allowance for loan losses increased by $ 663 The table below shows the activity within the allowance for loan losses by loan segment December 31, 2020 December 31, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 255 $ (11 ) $ 9 $ 2,646 $ 2,149 $ 10 $ 367 $ (136 ) $ 3 $ 2,393 Residential 5+ multifamily 446 282 (42 ) - 686 413 - 33 - - 446 Construction of residential 1-4 family 75 (10 ) - - 65 83 - (8 ) - - 75 Home equity lines of credit 197 (197 ) - 252 252 219 1 258 (281 ) - 197 Residential real estate 3,111 330 (53 ) 261 3,649 2,864 11 650 (417 ) 3 3,111 Commercial 3,742 2,776 (17 ) 45 6,546 3,048 488 248 (44 ) 2 3,742 Construction of commercial 104 492 - - 596 122 - (18 ) - - 104 Commercial real estate 3,846 3,268 (17 ) 45 7,142 3,170 488 230 (44 ) 2 3,846 Farm land 47 12 - - 59 33 - 14 - - 47 Vacant land 71 109 - - 180 100 - (29 ) - - 71 Real estate secured 7,075 3,719 (70 ) 306 11,030 6,167 499 865 (461 ) 5 7,075 Commercial and industrial 1,145 612 (362 ) 2 1,397 1,158 164 (78 ) (145 ) 46 1,145 Municipal 46 (3 ) - - 43 12 - 34 - - 46 Consumer 60 72 (70 ) 15 77 56 - 3 (36 ) 37 60 Unallocated 569 638 - - 1,207 438 - 131 - - 569 Totals $ 8,895 $ 5,038 $ (502 ) $ 323 $ 13,754 $ 7,831 $ 663 $ 955 $ (642 ) $ 88 $ 8,895 December 31, 2018 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,862 $ 580 $ (299 ) $ 6 $ 2,149 Residential 5+ multifamily 155 258 - - 413 Construction of residential 1-4 family 75 8 - - 83 Home equity lines of credit 236 (18 ) - 1 219 Residential real estate 2,328 828 (299 ) 7 2,864 Commercial 2,547 756 (259 ) 4 3,048 Construction of commercial 80 42 - - 122 Commercial real estate 2,627 798 (259 ) 4 3,170 Farm land 32 (6 ) - 7 33 Vacant land 132 (32 ) - - 100 Real estate secured 5,119 1,588 (558 ) 18 6,167 Commercial and industrial 984 255 (108 ) 27 1,158 Municipal 30 (18 ) - - 12 Consumer 80 28 (81 ) 29 56 Unallocated 563 (125 ) - - 438 Totals $ 6,776 $ 1,728 $ (747 ) $ 74 $ 7,831 The composition of loans receivable and the allowance for loan losses (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2020 Residential 1-4 family $ 347,695 $ 2,445 $ 4,306 $ 201 $ 352,001 $ 2,646 Residential 5+ multifamily 36,094 686 964 - 37,058 686 Construction of residential 1-4 family 8,814 65 - - 8,814 65 Home equity lines of credit 27,650 232 154 20 27,804 252 Residential real estate 420,253 3,428 5,424 221 425,677 3,649 Commercial 305,193 6,298 5,648 248 310,841 6,546 Construction of commercial 31,722 596 - - 31,722 596 Commercial real estate 336,915 6,894 5,648 248 342,563 7,142 Farm land 3,040 59 158 - 3,198 59 Vacant land 13,912 178 167 2 14,079 180 Real estate secured 774,120 10,559 11,397 471 785,517 11,030 Commercial and industrial 226,662 1,223 486 174 227,148 1,397 Municipal 21,512 43 - - 21,512 43 Consumer 7,661 59 26 18 7,687 77 Unallocated allowance - 1,207 - - - 1,207 Totals $ 1,029,955 $ 13,091 $ 11,909 $ 663 $ 1,041,864 $ 13,754 (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 December 31, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,011,757 $ 10,424 $ - $ - $ 1,011,757 $ 10,424 Potential problem loans 1 18,198 1,460 - - 18,198 1,460 Impaired loans - - 11,909 663 11,909 663 Unallocated allowance - 1,207 - - - 1,207 Totals $ 1,029,955 $ 13,091 $ 11,909 $ 663 $ 1,041,864 $ 13,754 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 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 Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2020 Residential $ 2,971 $ 3,040 $ 3,862 $ 201 $ 72 $ 2,299 $ 2,676 $ 1,993 $ 27 Home equity lines of credit 75 75 76 20 - 79 117 103 - Residential real estate 3,046 3,115 3,938 221 72 2,378 2,793 2,096 27 Commercial 3,058 3,117 3,325 248 132 2,590 3,203 1,139 91 Construction of commercial - - - - - - - - - Farm land - - - - - 158 319 173 - Vacant land 37 40 39 2 - 130 145 134 9 Real estate secured 6,141 6,272 7,302 471 204 5,256 6,460 3,542 127 Commercial and industrial 416 424 482 174 4 70 283 58 2 Consumer 26 26 31 18 2 - - - - Totals $ 6,583 $ 6,722 $ 7,815 $ 663 $ 210 $ 5,326 $ 6,743 $ 3,600 $ 129 Impaired loans with specific allowance Impaired loans with no specific allowance (In thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2019 Residential $ 4,111 $ 4,190 $ 3,725 $ 276 $ 162 $ 2,318 $ 3,081 $ 2,940 $ 52 Home equity lines of credit - - 52 - - 105 450 391 - Residential real estate 4,111 4,190 3,777 276 162 2,423 3,531 3,331 52 Commercial 3,309 3,335 2,574 409 90 1,024 1,733 1,747 54 Construction of commercial - - 77 - - - - 39 - Farm land - - - - - 186 329 203 - Vacant land 41 41 42 5 3 139 157 143 10 Real estate secured 7,461 7,566 6,470 690 255 3,772 5,750 5,463 116 Commercial and industrial 93 97 16 2 4 33 188 265 4 Consumer 36 36 21 1 - - - 3 - Totals $ 7,590 $ 7,699 $ 6,507 $ 693 $ 259 $ 3,805 $ 5,938 $ 5,731 $ 120

NOTE 5 _ LEASES

NOTE 5 – LEASES	12 Months Ended
	Dec. 31, 2020
Note 5 Leases
NOTE 5 – LEASES	NOTE 5 – LEASES On January 1, 2019, the Bank adopted ASU 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Bank leases facilities and equipment with various expiration dates. The facilities leases have varying renewal options, generally require fixed annual rent, and provide that real estate taxes, insurance, and maintenance are to be paid by Salisbury. The leases for two Bank facilities were accounted for as finance leases (previously referred to as capital leases) at December 31, 2020. The remaining leases were classified as operating leases, and therefore, were previously not recognized on the Bank’s Consolidated Balance Sheet. Effective January 1, 2019, the Bank recorded approximately $1.6 million of right-of-use assets and corresponding lease liability related to these operating leases. The Bank does not have any leases with related parties and equipment leases are not material to Salisbury’s consolidated financial statements. The following table provides the assets and liabilities as well as the costs of operating and finance leases ($ in thousands) Classification December 31, 2020 December 31, 2019 Assets Operating Other assets $ 1,182 $ 1,360 Finance Bank premises and equipment 1 1,402 1,503 Total Leased Assets $ 2,584 $ 2,863 Liabilities Operating Accrued interest and other liabilities $ 1,182 $ 1,360 Finance Finance lease obligations 1,673 1,718 Total lease liabilities $ 2,855 $ 3,078 1 Net of accumulated depreciation of $396 thousand and $294 thousand, respectively. Lease cost ($ in thousands) Classification Twelve months ended Twelve months ended December 31, 2020 December 31, 2019 Operating leases Premises and equipment $ 261 $ 255 Finance leases: Amortization of leased assets Premises and equipment 101 200 Interest on finance leases Interest expense 141 173 Total lease cost $ 503 $ 628 Weighted Average Remaining Lease Term December 31, 2020 December 31, 2019 Operating leases 7.6 years 8.2 years Financing leases 14.2 years 15.1 years Weighted Average Discount Rate 1 Operating leases 3.67 % 3.70 % Financing leases 8.37 % 8.41 % 1 Salisbury uses the FHLBB five-year Advance rate as the discount rate, as its leases do not provide an implicit rate. 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 2021 $ 250 $ 192 2022 199 195 2023 148 197 2024 129 200 2025 137 203 Thereafter 516 1,777 Total future minimum lease payments 1,379 2,764 Less amount representing interest (197 ) (1,091 ) Total present value of net future minimum lease payments $ 1,182 $ 1,673

NOTE 6 - MORTGAGE SERVICING RIG

NOTE 6 - MORTGAGE SERVICING RIGHTS	12 Months Ended
	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
NOTE 6 - MORTGAGE SERVICING RIGHTS	NOTE 6 - MORTGAGE SERVICING RIGHTS Loans serviced for others are not included in the consolidated balance sheets. Balances of loans serviced for others and the fair value of mortgage servicing rights December 31, (in thousands) 2020 2019 Residential mortgage loans serviced for others $ 134,428 $ 106,255 Fair value of mortgage servicing rights 762 813 Changes in mortgage servicing rights Years ended December 31, (in thousands) 2020 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 238 $ 228 $ 233 Originated 534 61 43 Amortization (1) (151 ) (51 ) (48 ) Balance, end of period 621 238 228 Valuation Allowance Balance, beginning of period - - - Increase in impairment reserve (1) (9 ) - - Balance, end of period (9 ) - - Mortgage servicing rights, net $ 612 $ 238 $ 228 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

NOTE 7 - PLEDGED ASSETS

NOTE 7 - PLEDGED ASSETS	12 Months Ended
	Dec. 31, 2020
Guarantees and Product Warranties [Abstract]
NOTE 7 - PLEDGED ASSETS	NOTE 7 - PLEDGED ASSETS The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available December 31, (in thousands) 2020 2019 Securities available-for-sale (at fair value) $ 54,581 $ 52,845 Loans receivable (at book value) 420,415 434,329 Total pledged assets $ 474,996 $ 487,174 At December 31, 2020, securities were pledged as follows: $ 47.44 7.12 0.02

NOTE 8 - BANK PREMISES AND EQUI

NOTE 8 - BANK PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
NOTE 8 - BANK PREMISES AND EQUIPMENT	NOTE 8 - BANK PREMISES AND EQUIPMENT The components of premises and equipment December 31, (in thousands) 2020 2019 Land $ 2,762 $ 2,762 Buildings and improvements 14,886 14,878 Leasehold improvements 1,553 1,553 Finance leases 1,798 1,798 Furniture, fixtures, equipment and software 9,687 9,370 Fixed assets in process 4,838 768 Total cost 35,525 31,129 Accumulated depreciation and amortization (15,170 ) (13,744 ) Bank premises and equipment, net $ 20,355 $ 17,385

NOTE 9 - GOODWILL AND INTANGIBL

NOTE 9 - GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
NOTE 9 - GOODWILL AND INTANGIBLE ASSETS	NOTE 9 - GOODWILL AND INTANGIBLE ASSETS Changes in the carrying values of goodwill and intangible assets Years ended December 31, (in thousands) 2020 2019 2018 Goodwill (1) Balance, beginning of period $ 13,815 $ 13,815 $ 13,815 Additions - - - Impairment - - - Balance, end of period $ 13,815 $ 13,815 $ 13,815 Core deposit intangibles Cost, beginning of period $ 5,881 $ 5,881 $ 5,881 Additions - - - Cost, end of period 5,881 5,881 5,881 Amortization, beginning of period (4,886 ) (4,498 ) (4,044 ) Amortization (321 ) (388 ) (454 ) Amortization, end of period (5,207 ) (4,886 ) (4,498 ) Core deposit intangibles, net $ 674 $ 995 $ 1,383 (1) Not subject to amortization. Management evaluates goodwill and identifiable intangible assets for impairment at least annually using valuation techniques that involve observations and adjustments as to comparable transactions, estimates for discount rates, projected future cash flows and time period calculations, all of which are susceptible to change based on changes in economic conditions and other factors. The COVID-19 pandemic triggered significant volatility in the global financial markets. Throughout 2020, Salisbury’s stock price primarily traded below its book value. On December 31, 2020, Salisbury’s closing stock price was $37.27 per share compared with its book value of $43.88 per share. Salisbury’s stock price has declined approximately 18% from December 31, 2019 consistent with financial stocks, as measured by the S&P United States BMI Banks Index, which declined approximately 16% over the same period. As a result of the stock market volatility and the negative impact from COVID-19 on the national and regional economy, in addition to the required annual assessment, the Bank periodically assessed during the year ended December 31, 2020 whether it was more likely than not that the carrying value of goodwill was impaired. During fiscal year 2020, management evaluated several qualitative factors including macroeconomic conditions, the Bank’s financial performance and the short-term volatility in Salisbury’s share price and concluded that it was not more likely than not that goodwill was impaired. The core deposit intangibles were recorded as identifiable intangible assets and are being amortized over ten years using the sum-of-the-years’ digits method. Estimated annual amortization expense of core deposit intangibles December 31, CDI amortization 2021 255 2022 192 2023 128 2024 61 2025 25 2026 and thereafter 13 Total $ 674

NOTE 10 - DEPOSITS

NOTE 10 - DEPOSITS	12 Months Ended
	Dec. 31, 2020
NOTE 10 - DEPOSITS	NOTE 10 - DEPOSITS Scheduled maturities of time certificates of deposit December 31, (in thousands) CD maturities 2021 $ 82,376 2022 30,560 2023 6,490 2024 7,995 2025 4,093 Total $ 131,514 The total amount and scheduled maturities of time certificates of deposit in denominations of $250 thousand or more December 31, (in thousands) 2020 2019 Within three months $ 4,045 $ 4,603 After three through six months 17,218 3,799 After six through twelve months 4,851 6,628 Over one year 12,581 6,750 Total $ 38,695 $ 21,780 Included in certificates of deposit at December 31, 2020 and 2019 are brokered and reciprocal deposits of approximately $ 25.4 8.0 51.5 66.0

NOTE 11 _ SECURITIES SOLD UNDER

NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	12 Months Ended
	Dec. 31, 2020
NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Salisbury enters into overnight and short-term repurchase agreements with its customers. Securities sold under repurchase agreements December 31, (in thousands) 2020 2019 Repurchase agreements, ending balance $ 7,116 $ 8,530 Repurchase agreements, average balance during period 7,986 4,913 Book value of collateral 12,632 9,031 Market value of collateral 13,196 9,246 Weighted average rate during period 0.25 % 0.48 % Weighted average maturity 1 day 1 day

NOTE 12 _ FEDERAL HOME LOAN BAN

NOTE 12 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS	12 Months Ended
	Dec. 31, 2020
NOTE 12 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS	NOTE 12 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS Federal Home Loan Bank of Boston (“FHLBB”) advances December 31, 2020 December 31, 2019 Years ended December 31, (dollars in thousands) Total (1) Rate (2) Total (1) Rate (2) Overnight $ - - % $ - - % 2020 - - 44,899 2.14 2021 4,984 1.13 5,988 2.45 2022 7,655 1.38 - - Total $ 12,639 1.29 % $ 50,887 2.18 % (1) Net of modification costs. (2) Weighted average rate based on scheduled maturity dates. In addition to outstanding FHLBB advances, Salisbury has additional available borrowing capacity, based on current capital stock levels, of $ 255.5 3.5 20.0 18.0 Subordinated Debentures: In December 2015, Salisbury completed the issuance of $ 10.0 100 Subordinated debentures totaled $ 9.9 9.9 117 141 6.25 6.33 LIBOR is due to be phased out as a market reference rate by the end of 2021. In December 2014, a group of market participants, known as the Alternative Reference Rates Committee (AARC) was initially convened by the Board of Governors of the Federal Reserve System and the New York Fed in cooperation with the U.S. Department of the Treasury, the U.S. Commodity Futures Trading Commission, and the U.S. Office of Financial Research to identify an alternative reference rate for use primarily in derivatives contracts. The AARC recommended the Secured Overnight Financing Rate (SOFR) as an alternative to LIBOR and the Federal Reserve began publishing the SOFR in April 2018. Salisbury will continue to monitor the transition from LIBOR to a new reference rate and its impact on Salisbury’s subordinated debt, which began to reprice on a quarterly basis on December 15, 2020. Notes Payable: In October 2015, Salisbury entered into a private mortgage for $ 380 6 208 246

NOTE 13 _ NET DEFERRED TAX ASSE

NOTE 13 – NET DEFERRED TAX ASSET AND INCOME TAXES	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
NOTE 13 – NET DEFERRED TAX ASSET AND INCOME TAXES	NOTE 13 – NET DEFERRED TAX ASSET AND INCOME TAXES Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. The components of the income tax provision Years ended December 31, (in thousands) 2020 2019 2018 Federal $ 3,487 $ 2,406 $ 1,986 State 566 344 217 Current provision 4,053 2,750 2,203 Federal (1,335 ) (317 ) (455 ) State (265 ) (74 ) (39 ) Deferred (benefit) expense (1,600 ) (391 ) (494 ) Income tax provision $ 2,453 $ 2,359 $ 1,709 The following is a reconciliation of the expected federal statutory tax to the income tax provision Years ended December 31, 2020 2019 2018 Income tax at statutory federal tax rate 21.00 % 21.00 % 21.00 % State tax, net of federal tax benefit 1.97 1.58 1.37 Tax exempt income and dividends received deduction (3.69 ) (3.82 ) (3.84 ) BOLI interest and gain (1.60 ) (0.61 ) (1.35 ) Other (0.64 ) (0.67 ) (0.95 ) Effective income tax rates 17.04 % 17.48 % 16.23 % The components of Salisbury's net deferred tax assets December 31, (in thousands) 2020 2019 Allowance for loan losses $ 3,355 $ 2,174 Interest on non-performing loans 214 244 Accrued deferred compensation 517 493 Post-retirement benefits 11 11 Other real estate owned write-downs - 30 Restricted stock awards 196 220 Deferred loan fees, net 90 - Loss on equity securities - 2 Other 98 139 Gross deferred tax assets 4,481 3,313 Deferred loan costs, net - (329 ) Mark-to-market purchase accounting adjustments (8 ) (44 ) Goodwill and core deposit intangible asset (590 ) (570 ) Accelerated depreciation (522 ) (703 ) Gain on equity securities (2 ) - Mortgage servicing rights (150 ) (58 ) Net unrealized holding gains on available-for-sale securities (797 ) (360 ) Gross deferred tax liabilities (2,069 ) (2,064 ) Net deferred tax asset $ 2,412 $ 1,249 Salisbury will only recognize a deferred tax asset when, based upon available evidence, realization is more likely than not. In accordance with Connecticut legislation, in 2004, Salisbury formed a PIC, SBT Mortgage Service Corporation. Salisbury does not expect to pay Connecticut state income tax in the foreseeable future unless there is a change in Connecticut law. Salisbury’s policy is to provide for uncertain tax positions and the related interest and penalties (recorded as a component of income tax expense, if any) based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of December 31, 2020, and 2019, there were no material uncertain tax positions related to federal and state tax matters. Salisbury is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2017 through December 31, 2020.

NOTE 14 _ SHAREHOLDERS_ EQUITY

NOTE 14 – SHAREHOLDERS’ EQUITY	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
NOTE 14 – SHAREHOLDERS’ EQUITY	NOTE 14 – 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 Bank became subject to capital regulations adopted by the Board of Governors of the Federal Reserve System (FRB) and the FDIC, which implemented the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The required minimum regulatory capital ratios to which the Bank is subject, and the minimum ratios required for the Bank to be categorized as “well capitalized” under the prompt corrective action framework are noted in the table below. In addition, the regulations established a capital conservation buffer of 2.5% effective January 1, 2019. Failure to maintain the capital conservation buffer will limit the ability of the Company and the Bank to pay discretionary bonuses and dividends. At December 31, 2020, The Bank exceeded the minimum requirement for the capital conservation buffer. As of December 31, 2020, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed that categorization. The Bank’s risk-weighted assets at December 31, 2020 and December 31, 2019 were $ 938.0 891.6 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 December 31, 2020 Total Capital (to risk-weighted assets) $ 127,254 13.57 % $ 75,037 8.0 % $ 98,486 10.5 % $ 93,796 10.0 % Tier 1 Capital (to risk-weighted assets) 115,503 12.31 56,278 6.0 79,727 8.5 75,037 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 115,503 12.31 42,208 4.5 65,657 7.0 60,967 6.5 Tier 1 Capital (to average assets) $ 115,503 8.90 51,907 4.0 51,907 4.0 64,884 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 Legal Limitations 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 legal limits on the payment of cash dividends and other payments by banks to their holding companies. Under Connecticut law, a 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 a 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 15 _ OTHER BENEFITS

NOTE 15 – OTHER BENEFITS	12 Months Ended
	Dec. 31, 2020
Retirement Benefits [Abstract]
NOTE 15 – OTHER BENEFITS	NOTE 15 – OTHER BENEFITS 401(k) Plan Salisbury offers a 401(k) Plan to eligible employees. Under the 401(k) Plan, eligible participants may contribute a percentage of their pay subject to IRS limitations. Salisbury may make discretionary contributions to the Plan. The Plan 0.9 0.9 1.0 Employee Stock Ownership Plan (ESOP) Salisbury offers an ESOP to eligible employees. Under the Plan, Salisbury may make discretionary contributions to the Plan. Discretionary contributions vest in full upon six years and reflect the following schedule of qualified service: 20% after the second year, 20% per year thereafter, vesting at 100% after six full years of service. 263 285 358 Other Retirement Plans Salisbury adopted ASC 715-60, “Compensation - Retirement Benefits - Defined Benefit Plans - Other Postretirement" and recognized a liability for Salisbury’s future postretirement benefit obligations under endorsement split-dollar life insurance arrangements. The total liability for the arrangements included in other liabilities was $ 771 765 328 101 227 7 26 The Bank assumed a Supplemental Retirement Plan Agreement with a former Chief Executive Officer of Riverside Bank that provides for supplemental post retirement payments for a fifteen-year period ending in 2025 as described in the agreement. The related liability was $ 312 358 A Non-Qualified Deferred Compensation Plan (the "Plan") was adopted effective January 1, 2013. This Plan was adopted by the Bank for the benefit of certain key employees ("Executive" or "Executives") who have been selected and approved by the Bank to participate in this Plan and who have evidenced their participation by execution of a Non-Qualified Deferred Compensation Plan Participation Agreement ("Participation Agreement") in a form provided by the Bank. This Plan is intended to comply with Internal Revenue Code ("Code") Section 409A and any regulatory or other guidance issued under such Section. In 2020, 2019, and 2018, the Bank awarded seven (7), seven (7), and six (6) Executives, respectively, with discretionary contributions to the plan. Expenses related to this plan amounted to $ 135 114 115 Management Agreements: Salisbury or the Bank has entered into various management agreements with its named executive officers, including a severance agreement with Mr. Cantele, President and Chief Executive Officer, a change in control agreement with Mr. Albero, Executive Vice President and Chief Financial Officer, and a severance agreement with Mr. Davies, President of the New York Region and Chief Lending Officer. Salisbury also entered into a change in control agreement with Carla L. Balesano dated July 29, 2020, which provides a severance payment of 1.0 times base salary, annual cash bonus and other benefits in the event employment is terminated in conjunction with a defined change in control. In addition to these agreements, Salisbury has change in control agreements or a severance agreement, with change in control provisions, with ten other executives with payouts ranging from 0.5 to 1.0 times base salary, annual cash bonus and other benefits. Such agreements, and their subsequent amendments, are designed to allow Salisbury to retain the services of the designated executives while reducing, to the extent possible, unnecessary disruptions to Salisbury’s operations.

NOTE 16 - LONG TERM INCENTIVE P

NOTE 16 - LONG TERM INCENTIVE PLANS	12 Months Ended
	Dec. 31, 2020
Retirement Benefits [Abstract]
NOTE 16 - LONG TERM INCENTIVE PLANS	NOTE 16 - LONG TERM INCENTIVE PLANS The Board of Directors adopted the 2011 Long Term Incentive Plan (the “Plan”) on March 25, 2011, and the shareholders approved the Plan at the 2011 Annual Meeting. The Plan was amended on January 18, 2013, January 29, 2016 and again on April 28, 2017. The purpose of the Plan is to assist Salisbury and the Bank in attracting, motivating, retaining and rewarding employees, officers and directors by enabling such persons to acquire or increase a proprietary interest in Salisbury in order to strengthen the mutuality of interests between such persons and our shareholders, and providing such persons with stock-based long-term performance incentives to expend their maximum efforts in the creation of shareholder value. The terms of the Plan provide for grants of Directors Stock Retainer Awards, Stock Options, Stock Appreciation Rights (“SARs”), Restricted Stock, Restricted Stock Units, Performance Awards, Deferred Stock, Dividend Equivalents, and Stock or Other Stock-Based Awards that may be settled in shares of common stock, cash, or other property (collectively, “Awards”). Under the Plan, the total number of shares of Common Stock reserved and available for issuance in the ten years following adoption of the Plan in connection with Awards under the Plan is 84,000 30,000 42,000 15,000 340 The Board of Directors adopted the 2017 Long Term Incentive Plan (the “2017 LTIP”) on February 24, 2017, which was approved by shareholders at the 2017 Annual Meeting on May 17, 2017. Pursuant to the 2017 LTIP, as of May 2017, following shareholder approval of the 2017 LTIP, no further awards will be made under the 2011 LTIP, which shall remain in existence solely for purposes of administering outstanding grants. Under the 2017 LTIP, the total number of shares of Common Stock reserved and available for issuance in the next ten years in connection with awards under the 2017 LTIP is 200,000 200,000 150,000 Restricted stock In 2020, 2019 and 2018 Salisbury granted a total of 15,475 15,130 13,210 554 601 585 The following table presents the amount of cumulatively granted restricted stock awards under the 2011 and 2017 Long-Term Incentive Plans Weighted Average Weighted Average Year Ended December 31, 2020 Grant Price 2019 Grant Price Beginning of Year 39,626 $ 41.04 39,434 $ 37.73 Granted 15,475 35.82 15,130 39.70 Vested (13,776 ) 39.71 (14,228 ) 30.33 Forfeited (1,200 ) 41.25 (710 ) 42.81 End of Year 40,125 $ 39.44 39,626 $ 41.04 The fair value of the restricted shares that vested during 2020, 2019 and 2018 were $ 464 556 0 525 491 447 774 795 711 95 88 87 Additionally, in 2018 the Compensation Committee granted a total of 53,500 141 414 171 Performance-based restricted stock units On March 29, 2019, the Compensation Committee granted 6,800 The performance goal for awards granted under the RSU plan in 2019 is based on the increase in the Bank’s tangible book value by $3.50 per share over the performance period for threshold performance. Vesting will range from 75% of target for achieving threshold performance, to 100% of target for achieving target payout performance ($5.00 increase in tangible book value per share) to 150% of target for achieving in excess of target payout performance and, if the performance goals are achieved, vesting will occur no later than March 29, 2022. On July 29, 2020, the Compensation Committee granted an additional 7,250 The fair value of the awards granted under the RSU plan at the grant date was $ 264 280 221 70 The following table presents the amount of cumulatively granted performance based restricted stock units awarded under the 2017 Long-Term Incentive Plans Weighted Average Weighted Average Year Ended December 31, 2020 Grant Price 2019 Grant Price Beginning of Year 6,800 $ 41.20 0 $ 0.00 Granted 7,250 36.36 6,800 41.20 Vested 0 0 0 0.00 Forfeited (350 ) 41.20 0 0.00 End of Year 13,700 $ 38.64 6,800 $ 41.20 Short Term Incentive Plan (STIP) Salisbury offers a short-term discretionary compensation plan to eligible employees on an annual basis. Under this incentive plan, Salisbury may reward employees with cash compensation if certain pre-determined Bank and individual performance goals have been achieved. The STIP expense, which is included in compensation expenses, totaled $ 941 888 758

NOTE 17 _ STOCK OPTIONS

NOTE 17 – STOCK OPTIONS	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
NOTE 17 – STOCK OPTIONS	NOTE 17 – STOCK OPTIONS Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. The table below reflects the remaining outstanding options related to this transaction and presents a summary of the status of Salisbury's outstanding stock options Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Beginning of period 17,820 $ 17.04 Granted - - Exercised (3,105 ) 17.04 Forfeited or expired - - End of period 14,715 $ 17.04 3.00 $ 297,684 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Beginning of period 22,545 $ 17.04 Granted - - Exercised (4,725 ) 17.04 Forfeited or expired - - End of period 17,820 $ 17.04 4.00 $ 510,187 All options are vested and exercisable at December 31, 2020. The total intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of stock options exercised during the years ended December 31, 2020, 2019 and 2018 was $ 78 thousand, $ 125 thousand, and $ 160 thousand, respectively.

NOTE 18 - RELATED PARTY TRANSAC

NOTE 18 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
NOTE 18 - RELATED PARTY TRANSACTIONS	NOTE 18 - RELATED PARTY TRANSACTIONS In the normal course of business, the Bank has granted loans to executive officers, directors, principal shareholders and associates of the foregoing persons considered to be related parties. Changes in loans to executive officers, directors and their related associates Years ended December 31, (in thousands) 2020 2019 Balance, beginning of period $ 10,655 $ 9,432 Advances 2,407 8,010 Repayments (3,645 ) (6,787 ) Balance, end of period $ 9,417 $ 10,655

NOTE 19 _ OTHER COMPREHENSIVE I

NOTE 19 – OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
NOTE 19 – OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 19 – OTHER COMPREHENSIVE INCOME (LOSS) The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) Years ended December 31, (in thousands) 2020 2019 2018 Other comprehensive income (loss) Net unrealized gains (losses) on securities available-for-sale $ 2,280 $ 2,258 $ (202 ) Reclassification of net realized gains in net income (1) (196 ) (263 ) (318 ) Unrealized gains (losses) on securities available-for-sale 2,084 1,995 (520 ) Income tax (expense) benefit (437 ) (418 ) 105 Unrealized gains (losses) on securities available-for-sale, net of tax 1,647 1,577 (415 ) Other comprehensive income (loss) $ 1,647 $ 1,577 $ (415 ) (1) 41 55 67 The components of accumulated other comprehensive income (loss) December 31, (in thousands) 2020 2019 Unrealized gains on securities available-for-sale, net of tax $ 3,004 $ 1,357 Accumulated other comprehensive income $ 3,004 $ 1,357

NOTE 20 _ DERIVATIVES AND HEDGI

NOTE 20 – DERIVATIVES AND HEDGING ACTIVITIES	12 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
NOTE 20 – DERIVATIVES AND HEDGING ACTIVITIES	NOTE 20 – 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 December 31, 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 (in thousands) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Loans receivable (1) $ 9,996 $ - $ (4 ) $ - Total $ 9,996 $ - $ (4 ) $ - (1) 48.3 4 10.0 The table below presents the fair value of Salisbury’s derivative financial instrument and its classification on the Balance Sheet As of December 31, 2020 (in thousands) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other Assets $ 4 Total Derivatives designated as hedge instruments $ 4 The table below presents the effect of the Company’s derivative financial instruments on the Income Statement For the year ended December 31, 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 $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (4 ) — Derivatives designated as hedging instruments $ 5 $ — Credit-Risk Related Contingent 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 / adequately 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 As of December 31, 2020, the fair value of the derivative $ 4

NOTE 21 - COMMITMENTS AND CONTI

NOTE 21 - COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
NOTE 21 - COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 21 - COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Bank’s agreement with the core accounting processing service provider will continue until the eighth anniversary of the commencement date, which was November 10, 2016. If the Bank cancels the agreement prior to the end of the contract term, a lump sum termination fee will have to be paid. The fee shall consist of the total amount that would have been paid or reimbursed to the service provider during the remainder of the term of the agreement. Contingent Liabilities The Bank is involved in various claims and legal proceedings, which are not material, arising in the ordinary course of business. There are no material pending legal proceedings, other than ordinary routine litigation incidental to the registrant’s business, to which Salisbury is a party or to which any of its property is subject. On October 4, 2019, Salisbury entered into a contract with a construction company to construct an operations center on its Lakeville, CT. campus in 2020. The estimated construction cost is $ 5.6 789

NOTE 22 - FINANCIAL INSTRUMENTS

NOTE 22 - FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2020
Investments, All Other Investments [Abstract]
NOTE 22 - FINANCIAL INSTRUMENTS	NOTE 22 - FINANCIAL INSTRUMENTS The Bank, in the normal course of business and to meet the financing needs of its customers, is a party to financial instruments with off-balance sheet risk. These financial instruments include commitments to originate loans, letters of credit, and unadvanced funds on loans. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Bank has in particular classes of financial instruments. The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there are no violations of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income producing properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of December 31, 2020 and 2019, the maximum potential amount of the Bank’s obligation was $ 4.8 4.7 Financial instruments with off-balance sheet credit risk December 31, (in thousands) 2020 2019 Residential $ 11,661 $ 5,815 Home equity lines of credit 28,919 28,160 Commercial 10,103 14,858 Land 566 1,014 Real estate secured 51,249 49,847 Commercial and industrial 94,854 78,286 Municipal 1,804 2,499 Consumer 2,077 2,148 Unadvanced portions of loans 149,984 132,780 Commitments to originate loans 49,753 33,781 Letters of credit 4,758 4,657 Total $ 204,495 $ 171,218 The allowance for off balance sheet commitments is calculated by applying a reserve percentage discounted by a utilization factor to the sum of unguaranteed unused lines of credit and loan contracts that the Bank has committed to but not funded as of year-end. The allowance for off-balance sheet commitments was $ 118 96

NOTE 23 - FAIR VALUE MEASUREMEN

NOTE 23 - FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
NOTE 23 - FAIR VALUE MEASUREMENTS	NOTE 23 - FAIR VALUE MEASUREMENTS 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 twelve-month period ended December 31, 2020. The following is a description of valuation methodologies for assets recorded at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. • Securities available-for-sale and the CRA mutual fund. Securities available-for-sale and the CRA mutual fund are recorded at fair value on a recurring basis. Level 1 securities include exchange-traded equity securities. Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes obligations of the U.S. Treasury and U.S. government-sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, municipal bonds, SBA bonds, corporate bonds and certain preferred equities. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. • Derivative financial instruments. 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. • Collateral dependent loans that are deemed to be impaired are valued based upon the fair value of the underlying collateral less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values resulting from its knowledge of the property. Internal valuations are utilized to determine the fair value of other business assets. Collateral dependent impaired loans are categorized as Level 3. • Other real estate owned acquired through foreclosure or repossession is adjusted to fair value less costs to sell upon transfer out of loans. Subsequently, it is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. Management adjusts appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property, and such property is categorized as Level 3. Assets measured at fair value Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value December 31, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ - $ 7,851 $ - $ 7,851 Municipal bonds - 27,617 - 27,617 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises - 36,573 - 36,573 Collateralized mortgage obligations: U.S. Government agencies - 17,454 - 17,454 Corporate bonds - 8,916 - 8,916 Securities available-for-sale $ - $ 98,411 $ - $ 98,411 CRA mutual funds 917 - - 917 Derivative financial instruments - 4 - 4 Assets at fair value on a non-recurring basis Impaired loans carried at fair value $ - $ - $ - $ - Other real estate owned $ - $ - $ - $ - December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ - $ 4,644 $ - $ 4,644 Municipal bonds - 27,193 - 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises - 29,357 - 29,357 Collateralized mortgage obligations: U.S. Government agencies - 25,499 - 25,499 Corporate bonds - 5,108 - 5,108 Securities available-for-sale $ - $ 91,801 $ - $ 91,801 CRA mutual funds 882 - - 882 Assets at fair value on a non-recurring basis Impaired loans carried at fair value $ - $ - $ 1,593 $ 1,593 Other real estate owned $ - $ - $ 314 $ 314 Carrying values and estimated fair values of financial instruments Carrying Estimated Fair value measurements using (In thousands) value fair value Level 1 Level 2 Level 3 December 31, 2020 Financial Assets Cash and cash equivalents $ 93,162 $ 93,162 $ 93,162 $ - $ - Interest bearing time deposits with financial institutions 750 750 750 - - Securities available-for-sale 98,411 98,411 - 98,411 - CRA mutual fund 917 917 917 - - Federal Home Loan Bank of Boston stock 1,713 1,713 1,713 - - Loans held-for-sale 2,735 2,790 - - 2,790 Loans receivable, net 1,027,738 1,057,234 - - 1,057,234 Accrued interest receivable 6,373 6,373 6,373 - - Cash surrender value of life insurance policies 21,182 21,182 21,182 - - Derivative financial instruments 4 4 - 4 - Financial Liabilities Demand (non-interest-bearing) $ 310,769 $ 310,769 $ - $ 310,769 $ - Demand (interest-bearing) 218,869 218,869 - 218,869 - Money market 278,146 278,146 - 278,146 - Savings and other 189,776 189,776 - 189,776 - Certificates of deposit 131,514 132,875 - 132,875 - Deposits 1,129,074 1,130,435 - 1,130,435 - Repurchase agreements 7,116 7,116 - 7,116 - FHLBB advances 12,639 12,786 - 12,786 - Subordinated debt 9,883 10,027 10,027 - - Note payable 208 212 - 212 - Finance lease liability 1,673 1,920 - - 1,920 Accrued interest payable 43 43 43 - - 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 24 _ SALISBURY BANCORP, IN

NOTE 24 – SALISBURY BANCORP, INC. (PARENT ONLY) CONDENSED FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]
NOTE 24 – SALISBURY BANCORP, INC. (PARENT ONLY) CONDENSED FINANCIAL INFORMATION	NOTE 24 – SALISBURY BANCORP, INC. (PARENT ONLY) CONDENSED FINANCIAL INFORMATION The unconsolidated balance sheets and statements of income and cash flows of Salisbury Bancorp, Inc. are presented as follows: Balance Sheets 2020 2019 Assets Cash and due from banks $ 1,968 $ 2,273 Investment in bank subsidiary 132,407 121,027 Other assets 273 252 Total Assets $ 134,648 $ 123,552 Liabilities and Shareholders' Equity Subordinated debt $ 9,883 $ 9,859 Other liabilities 13 38 Shareholders' equity 124,752 113,655 Total Liabilities and Shareholders' Equity $ 134,648 $ 123,552 Statements of Income 2020 2019 2018 Dividends from subsidiary $ 3,787 $ 3,546 $ 3,529 Interest income 6 10 10 Interest expense 618 624 624 Non-interest expenses 495 417 435 Income before taxes and equity in undistributed net income of subsidiary 2,680 2,515 2,480 Income tax benefit 273 252 256 Income before equity in undistributed net income of subsidiary 2,953 2,767 2,736 Equity in undistributed net income of subsidiary 8,987 8,369 6,088 Net income $ 11,940 $ 11,136 $ 8,824 Statements of Cash Flows 2020 2019 2018 Net income $ 11,940 $ 11,136 $ 8,824 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary (8,987 ) (8,369 ) (6,088 ) Other (25 ) 474 (239 ) Net cash provided by operating activities 2,928 3,241 2,497 Investing Activities Investment in bank - - - Net cash utilized by investing activities - - - Financing activities Common stock dividends paid (3,286 ) (3,155 ) (3,133 ) Proceeds from issuance of common stock 53 82 222 Net cash utilized by financing activities (3,233 ) (3,073 ) (2,911 ) Net increase (decrease) in cash and cash equivalents (305 ) 168 (414 ) Cash and cash equivalents, beginning of period 2,273 2,105 2,519 Cash and cash equivalents, end of period $ 1,968 $ 2,273 $ 2,105

NOTE 25 _ EARNINGS PER SHARE

NOTE 25 – EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
NOTE 25 – EARNINGS PER SHARE	NOTE 25 – EARNINGS PER SHARE The calculation of earnings per share Years ended December 31, (in thousands, except per share amounts) 2020 2019 2018 Net income applicable to common shareholders $ 11,940 $ 11,136 $ 8,824 Less: Undistributed earnings allocated to participating securities (165 ) (160 ) (111 ) Net income allocated to common stock $ 11,775 $ 10,976 $ 8,713 Weighted average common shares issued 2,837 2,817 2,798 Less: Unvested restricted stock awards (39 ) (35 ) (35 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,798 2,782 2,763 Add: Dilutive effect of stock options 8 12 17 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,806 2,794 2,780 Earnings per common share (basic) $ 4.21 $ 3.95 $ 3.15 Earnings per common share (diluted) $ 4.20 $ 3.93 $ 3.13

NOTE 26 _ SUBSEQUENT EVENTS

NOTE 26 – SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
Subsequent Events [Abstract]
NOTE 26 – SUBSEQUENT EVENTS	NOTE 26 – SUBSEQUENT EVENTS Salisbury has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The Board of Directors of Salisbury approved a quarterly dividend of $ 0.29 From January 1, 2021 through February 28, 2021, Salisbury processed 251 applications for loans of approximately $ 34

NOTE 1 - SUMMARY OF SIGNIFICA_2

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include those of Salisbury and the Bank after elimination of all inter-company accounts and transactions.
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and general practices within the financial services industry. In preparing the consolidated 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 consolidated 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, potential other-than-temporary impairment of securities and potential impairment of goodwill and intangibles. Certain reclassifications have been made to the 2019 and 2018 consolidated financial statements to make them consistent with the 2020 presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and balances due from banks and interest-bearing demand deposits in other banks. Due to the nature of cash and cash equivalents, Salisbury estimated that the carrying amount of such instruments approximated fair value. The nature of the Bank’s business requires that it maintain amounts due from banks which, at times, may exceed federally insured limits. The Bank has not experienced any losses on such amounts and all amounts are maintained with well-capitalized institutions.
Interest Bearing Time Deposits with Financial Institutions	Interest Bearing Time Deposits with Financial Institutions Interest bearing time deposits are balances held in CD’s in a CDARS program. Due to the nature of time deposits, Salisbury estimated that the carrying amount of such instruments are at par.
Securities	Securities Securities that may be sold as part of Salisbury's asset/liability or liquidity management or in response to or in anticipation of changes in interest rates and resulting prepayment risk, or for other similar factors, are classified as available-for-sale and carried at their fair value. Unrealized holding gains and losses on such securities are reported net of related taxes, if applicable, as a separate component of shareholders' equity. Securities that Salisbury has the ability and positive intent to hold to maturity are classified as held-to-maturity and carried at amortized cost. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Securities are reviewed regularly for other-than-temporary impairment (“OTTI”). Premiums and discounts are amortized or accreted utilizing the interest method over the life or call of the term of the investment security. For any debt security with a fair value less than its amortized cost basis, Salisbury will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, Salisbury will recognize a full impairment charge to earnings. For all other debt securities that are considered OTTI and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses.
Mutual Funds	Mutual Funds The Company holds a mutual fund investment which is reported as an equity investment with a readily determined fair value. Changes in the fair value of the mutual fund holding are reported in income as gains (losses) on CRA mutual fund with a corresponding increase or decrease in its carrying value on the consolidated balance sheet.
Federal Home Loan Bank of Boston Stock	Federal Home Loan Bank of Boston Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The 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 December 31, 2020. Deterioration of the FHLBB’s capital levels may require the Bank to deem its restricted investment in FHLBB stock to be OTTI. If evidence of impairment exists in the future, the FHLBB stock would reflect fair value using either observable or unobservable inputs. The Bank will continue to monitor its investment in FHLBB stock.
Loans	Loans Loans receivable consist of loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off. Loans receivable are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs on originated loans and unamortized premiums on purchased loans. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. Loans receivable includes loans processed under the SBA’s PPP program. The PPP loans are reported at their outstanding principal balance, net of unamortized deferred loan origination fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Deferred loan origination fees and costs are amortized as an adjustment to yield over the lives of the related loans. The Bank’s loans collateralized by real estate and all other real estate owned (“OREO”) are located principally in northwestern Connecticut and New York and Massachusetts towns, which constitute Salisbury's service area. Accordingly, the collectability of a substantial portion of the loan portfolio and OREO is susceptible to changes in market conditions in Salisbury’s service area. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions, particularly in Salisbury’s service area. Loans held-for-sale consist of residential mortgage loans that management has the intent to sell. Loans held-for-sale are valued at the lower of cost or market as determined by outstanding commitments from investors or current investor yield requirements calculated on the aggregate loan basis, net of deferred loan origination fees and costs. Changes in the carrying value, deferred loan origination fees and costs, and realized gains and losses on sales of loans held-for-sale are reported in earnings as gains and losses on sales of mortgage loans, net, when the proceeds are received from investors. The accrual of interest on loans, including troubled debt restructured loans, is generally discontinued when principal or interest is past due by 90 days or more, or earlier when, in the opinion of management, full collection of principal or interest is unlikely, except for loans that are well collateralized, in the process of collection and where full collection of principal and interest is assured. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current income. Income on such loans, including impaired loans, is then recognized only to the extent that cash is received and future collection of principal is probable. Loans, including troubled debt restructured loans, are restored to accrual status when principal and interest payments are brought current and future payments are reasonably assured, following a sustained period of repayment performance by the borrower in accordance with the loan's contractual terms. Troubled debt restructured loans include those for which concessions such as reduction of interest rates, other than normal market rate adjustments, or deferral of principal or interest payments, extension of maturity dates, or reduction of principal balance or accrued interest, have been granted due to a borrower’s financial condition. The decision to restructure a loan, versus aggressively enforcing the collection of the loan, may benefit Salisbury by increasing the ultimate probability of collection. Troubled debt restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on non-accrual status at the time of the troubled debt restructuring generally remain on non-accrual status for approximately six months before management considers such loans for return to accruing status. Accruing troubled debt restructured loans are generally placed into non-accrual status if and when the borrower fails to comply with the restructured terms. On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. and implemented a loan payment deferral program which allows residential, commercial and consumer borrowers, who have been adversely affected by the virus and whose loans were not more than 30 days past due at December 31, 2019, to defer loan payments for up to three months. Borrowers may apply to the Bank for additional deferments, which will be evaluated on a case-by-case basis. The Bank will continue to accrue interest on such deferred payments, which will be added to a borrower’s final payment.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses represents management’s estimate of the probable credit losses inherent in the loan portfolio as of the reporting date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by loan charge-offs. Loan charge-offs are recognized when management determines a loan or portion of a loan to be uncollectible. The determination of the adequacy of the allowance is based on management’s ongoing review of numerous factors, including the growth and composition of the loan portfolio, historical loss experience over an economic cycle, probable credit losses based upon internal and external portfolio reviews, credit risk concentrations, changes in lending policy, current economic conditions, analysis of current levels and asset quality, delinquency levels and trends, estimates of the current value of underlying collateral, the performance of individual loans in relation to contract terms, and other pertinent factors. Determining the adequacy of the allowance and reserves at any given period is difficult, particularly during deteriorating or uncertain economic periods, and management must make estimates using assumptions and information that are often subjective and changing rapidly. The review of credit exposure related to loans is a continuing event in light of the pandemic, a changing economy and the dynamics of the banking and regulatory environment. Should the economic climate deteriorate, borrowers could experience difficulty and the level of non-performing loans, charge-offs and delinquencies could rise, requiring increased provisions and reserves. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. In management's judgment, Salisbury remains adequately reserved both against total loans and non-performing loans at December 31, 2020. Management’s loan risk rating assignments, loss percentages and specific reserves are subjected annually to an independent credit review by an external firm. In addition, the Bank is examined annually on a rotational basis by one of its two primary regulatory agencies, the FDIC and CTDOB. As an integral part of their examination process, the FDIC and CTDOB review the adequacy and methodology of the Bank's credit risk ratings and allowance for loan losses. The allowance for loan losses is computed by segregating the portfolio into three components: (1) loans collectively evaluated for impairment: general loss allocation factors for non-impaired loans based on loan product, collateral type and abundance, loan risk rating, historical loss experience, delinquency factors and other similar economic indicators, (2) loans individually evaluated for impairment: individual loss allocations for loans deemed to be impaired based on discounted cash flows or collateral value, and (3) unallocated: general loss allocations for other environmental factors. Loans collectively evaluated for impairment The component of the allowance for loan losses for loans collectively evaluated for impairment is estimated by stratifying loans into segments and credit risk ratings and then applying management’s general loss allocation factors. Salisbury stratified its loans into the following loan segments: residential real estate secured (residential 1-4 family and 5+ multifamily, construction of residential 1-4 family, and home equity lines of credit), commercial real estate secured (commercial and construction of commercial), secured by land (farm and vacant land), commercial and industrial, municipal and consumer. The general loss allocation factors are based on expected loss experience adjusted for historical loss experience and other qualitative factors, including levels or trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. The qualitative factors are determined based on the various risk characteristics of each loan segment and are risk-weighted such that higher risk loans generally have a higher reserve percentage. In second quarter 2020, management added a new discrete loan pool for loans deemed to be a higher risk due to COVID-19. This new loan pool included commercial real estate and commercial and industrial loans that were deemed by management to be a higher risk of default as a result of the pandemic as well as residential and consumer loans which have been granted a second loan payment deferral by management. In addition, management increased the risk weights for loans with an internal risk rating of “4” (Watch), “5” (Special Mention) and “6” (Substandard”) to reflect the higher degree of inherent credit risk associated with these loans as a result of COVID-19. Management will actively monitor the population of loans in the new loan pool and evaluate the risk weightings to determine if further adjustments are warranted based on the impact of COVID-19. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate Commercial real estate Construction loans Commercial and industrial loans Farm Vacant land Municipal loans Consumer loans Loans individually evaluated for impairment This component relates to loans that are classified as impaired. Impairment is measured on a loan by loan basis for all portfolio loans (except consumer loans and homogeneous residential real estate loans) by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the fair value of the collateral if the loan is collateral dependent or third-party market loan pricing. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. A loan is considered impaired when, based on current information and events, it is probable that Salisbury will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In seeking to protect the best interests of the Bank, Salisbury may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are classified as impaired. Unallocated An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio.
Transfers of Financial Assets	Transfers of Financial Assets Transfers of an entire financial asset, a group of entire financial assets, or participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right to pledge or exchange the transferred assets, and (3) the Company does not retain control over the assets. During the normal course of business, the Company may transfer a portion of a financial asset, for example, a participation loan or the government guaranteed portion of a loan. In order to be eligible for sales treatment, the transfer of the portion of the loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan.
Mortgage Servicing Rights	Mortgage Servicing Rights As part of our growth and risk management strategy, Salisbury from time to sells whole loans. typically residential loans. Salisbury’s ability to sell whole loans benefits the Bank by freeing up capital and funding to lend to new customers. Additionally, we typically earn a gain on the sale of loans sold and receive a servicing fee while maintaining the customer relationship. Mortgage (“MSRs”), which the bank evaluates with the assistance of a third party on a quarterly basis, are included on the consolidated balance and are accounted for under the amortization method. that method mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Refinance activities are considered in estimating the period of net servicing revenues.
Other Real Estate Owned (“OREO”)	Other Real Estate Owned (“OREO”) OREO consists of properties acquired through foreclosure or a deed in lieu of foreclosure. These properties are initially transferred at fair value less estimated costs to sell. Any write-down from cost to estimated fair value required at the time of foreclosure is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in OREO expense. As of December 31, 2020, and 2019, the recorded investment in residential mortgage loans collateralized by residential real estate that were in the process of foreclosure was $0.1 million and $0.1 million, respectively.
Income Taxes	Income Taxes Deferred income taxes are provided for differences arising in the timing of income and expenses for financial reporting and for income tax purposes using the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is assured beyond a reasonable doubt. A valuation allowance is established against deferred tax assets when, based upon all available evidence, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized.
Bank Premises and Equipment	Bank Premises and Equipment Bank premises, furniture and equipment are carried at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight-line basis over the shorter of the estimated useful lives of the improvements or the term of the related leases. Guidelines for expected useful life are as follows: • Buildings/Improvements – 39 years • Land Improvements – 15 years • Furniture and Fixtures – 7 years • Computer Equipment – 5 years • Software – 3 years
Intangible Assets	Intangible Assets Intangible assets consist of core deposit intangibles and goodwill. Intangible assets equal the excess of the purchase price over the fair value of the tangible net assets acquired in business combinations accounted for using the acquisition method of accounting. Salisbury’s intangible assets at December 31, 2020, and 2019, include goodwill of $2.4 million arising from the purchase of a branch office in 2001, $7.2 million arising from the 2004 acquisition of Canaan National Bancorp, Inc., $319 thousand arising from the 2007 purchase of a branch office in New York State, $2.7 million arising from the acquisition of Riverside Bank in December 2014 and $1.3 million from the purchase of an additional branch office in New York in 2017. See Note 9. On an annual basis, management assesses intangible assets for impairment. For fiscal year 2019, this assessment was performed as of December 31, 2019. For fiscal year 2020, however, management performed the assessment as of November 30, 2020. Management changed the date of the assessment to ensure that there was adequate time to review the results and record an impairment charge, if necessary, prior to finalizing the financial statements for fiscal year 2020. There were no material changes in the Bank’s operating environment or financial results during the month of December 2020 that would have affected the outcome of the assessment. Based on the assessment, intangible assets were not impaired as of November 30, 2020. If a permanent loss in value was indicated, an impairment charge to income would have been recognized.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance in Topic 825, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Bank-Owned Life Insurance	Bank-Owned Life Insurance Bank-owned life insurance policies are reflected on the consolidated balance sheet at cash surrender value. Changes in the net cash surrender value of the policies, as well as insurance proceeds received, are reflected in non-interest income on the consolidated statements of income and are generally not subject to income taxes. The Bank reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of tier one capital and the total cash surrender value of the life insurance policies is limited to 25% of tier one capital.
Stock Based Compensation	Stock Based Compensation Stock based compensation expense is recognized, based on the fair value at the date of grant on a straight-line basis over the period of time between the grant date and vesting date. The expense for performance based restricted stock awards is accrued over a three year performance period based on the probability of achieving pre-determined thresholds or metrics.
Advertising Expense	Advertising Expense Advertising costs of $393 thousand and $480 thousand in 2020 and 2019, respectively, are expensed as incurred and not capitalized.
Statements of Cash Flows	Statements of Cash Flows For the purpose of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash and due from banks and interest-bearing demand deposits with other financial institutions.
Computation of Earnings per Share	Computation of Earnings per Share The Company 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. Unvested performance based restricted stock units issued by the Company do not contain non-forfeitable rights to dividends and are not deemed to be participating securities. 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.
Revenue Recognition	Revenue Recognition A significant portion of Salisbury’s revenue, including interest income from loans and investments, falls outside the scope of ASC 606. Revenue from Salisbury’s Trust and Wealth Advisory business, service charges and fees and interchange fees, however, are within the scope of ASC 606. Revenue for these in-scope services are recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when the services are transferred to customers. Revenue is measured as the amount of consideration Salisbury expects to receive in exchange for providing the services to a customer (“transaction price”). To the extent the transaction price includes variable consideration, Salisbury estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount to which Salisbury expects to be entitled. Variable consideration is included in the transaction price if, in Salisbury’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of Salisbury’s anticipated performance and all information (historical, current, and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised services underlying each performance obligation. Salisbury determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through fee schedules provided to its customers or through past transactions, Salisbury estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new or changes the existing enforceable rights and obligations. Generally, contract modifications are for products or services that are distinct from the existing contract and are accounted for as if they were a new and separate contract. The original contract is still accounted for according to its original terms. Trust and Wealth Advisory The Trust and Wealth Advisory business generates revenue through a range of fiduciary services including trust and estate administration, wealth advisory, and investment management to individuals, families, businesses and institutions. Revenue from these services is generally recognized over time and are typically based on the market value of assets under administration and established fee schedules. Certain fees, such as real estate sale fees, asset liquidation fees, special asset fees, and daily money management fees, are recorded as revenue at a point in time at the completion of the service. Service Charges and Fees Salisbury offers a variety of deposit accounts with a range of interest rates and other terms, which are designed to meet customer financial needs. Monthly deposit account fees and account research fees are recognized over time using the right to invoice measure of progress. Overdraft protection, ATM services, cash management, bill pay, money transfers, among others, are generally recognized at point in time at the completion of the service. Interchange Fees Salisbury earns interchange fee revenue through customers’ use of the Bank’s debit cards. Interchange fees are generally recognized as revenue at a point in time when customers make a purchase using their debit card.
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 (ACL) 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. The Bank is working towards the completion of its ACL methodology. To estimate the ACL for loans and off-balance sheet credit exposures, such as unfunded loan commitments, the Corporation will utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and off-balance sheet credit exposures and will include the impact of forecasted economic conditions. The estimate is expected to include a one-year reasonable and supportable forecast period and thereafter a one-year reversion period to the historical mean of its macroeconomic assumption. The estimate will also include qualitative factors that may not be reflected in quantitatively derived results to ensure that the ACL reflects a reasonable estimate of current expected credit losses. Based on the credit quality of our existing available for sale debt securities portfolio, which primarily consists of obligations of U.S. government agency and U.S. government-sponsored enterprise securities, including mortgage-backed securities, Salisbury does not expect the adoption of ASU 2016-13, as it relates to debt securities, to be significant. For available for sale debt securities with unrealized losses, credit losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses will be recognized immediately in earnings rather than as interest income over time. The Bank is currently refining various ACL assumptions and running parallel calculations on a monthly basis. Salisbury expects to complete independent model validation and to finalize its documentation of ACL processes and controls by the first quarter of 2023. 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, Salisbury 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 for 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 does not believe that the new standard will have a material impact 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. In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848).” In response to the risk of cessation of the London Interbank Offered Rate (LIBOR) as a reference rate, this ASU clarifies the scope of Topic 848 so that derivatives affected by this transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. An entity may elect to apply the amendments in this ASU on a full retrospective basis as of any date from the beginning interim period that includes or is subsequent to March 12, 2020 or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that the financial statements are available to be issued. Salisbury is currently evaluating the impact of the transition from LIBOR to a new reference rate. 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”. 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.

NOTE 2 _ MERGERS AND ACQUISIT_2

NOTE 2 – MERGERS AND ACQUISITIONS (Tables)	12 Months Ended
	Dec. 31, 2020
Business Combinations [Abstract]
activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30	The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30 Year Ended December 31, (in thousands) 2019 Balance at beginning of period $ 204 Acquisitions - Accretion (204 ) Disposals - Reclassification from non-accretable to accretable - Balance at end of period $ -

NOTE 3 - SECURITIES (Tables)

NOTE 3 - SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
composition of securities	The composition of securities (in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2020 Available-for-sale U.S. Government Agency notes $ 7,735 $ 153 $ 37 $ 7,851 Municipal bonds 25,831 1,787 1 27,617 Mortgage-backed securities: U.S. Government agencies and U.S. Government- sponsored enterprises 35,240 1,376 43 36,573 Collateralized mortgage obligations: U.S. Government agencies 17,054 400 - 17,454 Corporate bonds 8,750 166 - 8,916 Total securities available-for-sale $ 94,610 $ 3,882 $ 81 $ 98,411 CRA mutual fund $ 917 Non-marketable securities Federal Home Loan Bank of Boston stock $ 1,713 $ - $ - $ 1,713 (in thousands) Amortized Gross un- realized gains Gross un- realized losses Fair value December 31, 2019 Available-for-sale U.S. Government Agency notes $ 4,520 $ 125 $ 1 $ 4,644 Municipal bonds 26,562 704 73 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government sponsored enterprises 28,961 420 24 29,357 Collateralized mortgage obligations: U.S. Government agencies 25,041 468 10 25,499 Corporate bonds 5,000 108 - 5,108 Total securities available-for-sale $ 90,084 $ 1,825 $ 108 $ 91,801 CRA mutual fund $ 882 Non-marketable securities Federal Home Loan Bank of Boston stock $ 3,242 $ - $ - $ 3,242
Sales of securities available-for-sale and gross gains and gross losses realized	Sales of securities available-for-sale and gross gains and gross losses realized Years ended December 31, (in thousands) 2020 2019 2018 Proceeds $ 15,589 $ 41,814 $ 10,036 Gains realized 293 371 361 Losses realized (97 ) (108 ) (43 ) Net gains realized 196 263 318 Income tax provision 41 55 67
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 December 31, 2020 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale U.S. Government Agency notes $ 2,553 $ 36 $ 20 $ 1 $ 2,573 $ 37 Municipal bonds 558 1 - - 558 1 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 3,761 42 45 1 3,806 43 Total temporarily impaired securities $ 6,872 $ 79 $ 65 $ 2 $ 6,937 $ 81 Less than 12 Months 12 Months or Longer Total December 31, 2019 (in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Available-for-sale U.S. Government Agency notes $ - $ - $ 195 $ 1 $ 195 $ 1 Municipal bonds 6,273 73 - - 6,273 73 Mortgage- backed securities: U.S. Government agencies and U.S. Government - sponsored enterprises 5,781 22 704 2 6,485 24 Collateralized mortgage obligations: U.S. Government Agencies 1,438 10 - - 1,438 10 Total temporarily impaired securities $ 13,492 $ 105 $ 899 $ 3 $ 14,391 $ 108
amortized cost, fair value and tax equivalent yield of securities, by maturity	The table below presents the amortized cost, fair value and tax equivalent yield of securities, by maturity December 31, 2020 (in thousands) Maturity Amortized cost Fair value Yield (1) U.S. Government Agency notes After 1 year but within 5 years $ 2,497 $ 2,545 3.48 % Total 2,497 2,545 3.48 Municipal bonds After 5 years but within 10 years 2,731 2,910 2.59 After 10 years 23,100 24,707 3.02 Total 25,831 27,617 2.98 Corporate bonds After 5 years but within 10 years 8,750 8,916 5.22 Mortgage-backed securities, CMO securities and SBA securities 57,532 59,333 2.00 Securities available-for-sale $ 94,610 $ 98,411 2.61 % (1) Yield is based on amortized cost.

NOTE 4 - LOANS (Tables)

NOTE 4 - LOANS (Tables)	12 Months Ended
	Dec. 31, 2020
Receivables [Abstract]
composition of loans receivable and loans held-for-sale	The composition of loans receivable and loans held-for-sale December 31, 2020 2019 (in thousands) Total Loans Total Loans Residential 1-4 family $ 352,001 $ 346,299 Residential 5+ multifamily 37,058 35,455 Construction of residential 1-4 family 8,814 11,889 Home equity lines of credit 27,804 33,798 Residential real estate 425,677 427,441 Commercial 310,841 289,795 Construction of commercial 31,722 8,466 Commercial real estate 342,563 298,261 Farm land 3,198 3,641 Vacant land 14,079 7,893 Real estate secured 785,517 737,236 Commercial and industrial 227,148 169,411 Municipal 21,512 21,914 Consumer 7,687 6,385 Loans receivable, gross 1,041,864 934,946 Deferred loan origination (fees) and costs, net (372 ) 1,362 Allowance for loan losses (13,754 ) (8,895 ) Loans receivable, net $ 1,027,738 $ 927,413 Loans held-for-sale Residential 1-4 family $ 2,735 $ 332
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 December 31, 2020 Residential 1-4 family $ 342,243 $ 5,615 $ 4,143 $ - $ - $ 352,001 Residential 5+ multifamily 35,272 90 1,696 - - 37,058 Construction of residential 1-4 family 8,814 - - - - 8,814 Home equity lines of credit 27,393 257 154 - - 27,804 Residential real estate 413,722 5,962 5,993 - - 425,677 Commercial 276,866 15,565 18,410 - - 310,841 Construction of commercial 31,493 - 229 - - 31,722 Commercial real estate 308,359 15,565 18,639 - - 342,563 Farm land 1,612 - 1,586 - - 3,198 Vacant land 13,992 50 37 - - 14,079 Real estate secured 737,685 21,577 26,255 - - 785,517 Commercial and industrial 224,906 1,271 632 339 - 227,148 Municipal 21,512 - - - - 21,512 Consumer 7,660 - 27 - - 7,687 Loans receivable, gross $ 991,763 $ 22,848 $ 26,914 $ 339 $ - $ 1,041,864 (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 is as follows: Past due (In thousands) Current 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- accrual December 31, 2020 Residential 1-4 family $ 349,382 $ 1,419 $ 308 $ 673 $ 219 $ 2,619 $ - $ 1,508 Residential 5+ multifamily 36,197 - - - 861 861 - 861 Construction of residential 1-4 family 8,814 - - - - - - - Home equity lines of credit 27,522 157 9 - 116 282 - 154 Residential real estate 421,915 1,576 317 673 1,196 3,762 - 2,523 Commercial 307,927 1,855 530 95 434 2,914 - 2,544 Construction of commercial 31,722 - - - - - - - Commercial real estate 339,649 1,855 530 95 434 2,914 - 2,544 Farm land 2,594 154 450 - - 604 - 158 Vacant land 14,079 - - - - - - 37 Real estate secured 778,237 3,585 1,297 768 1,630 7,280 - 5,262 Commercial and industrial 224,496 2,148 457 1 46 2,652 12 374 Municipal 21,512 - - - - - - - Consumer 7,677 10 - - - 10 - - Loans receivable, gross $ 1,031,922 $ 5,743 $ 1,754 $ 769 $ 1,676 $ 9,942 $ 12 $ 5,636 Past due (In thousands) Current 30-59 days 60-89 days 90-179 days 180 days and over 30 days and over Accruing 90 days and over Non- 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 occurring during the years ended December 31, 2020 and 2019:	Troubled debt restructurings occurring during the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 (in thousands) Quantity Pre-modification balance Post-modification balance Quantity Pre-modification balance Post-modification balance Residential real estate 1 $ 180 $ 180 3 $ 1,416 $ 1,416 Commercial real estate 1 133 133 4 977 1,191 Consumer - - - 1 - 36 Troubled debt restructurings 2 $ 313 $ 313 8 $ 2,393 $ 2,643 Interest only payments to sell property - $ - $ - 1 $ 791 $ 791 Rate reduction - - - - - - Modification and Rate reduction - - - 2 625 625 Extension of new funds to pay outstanding taxes - - - 3 259 442 Modification and term extension 2 313 313 2 718 785 Troubled debt restructurings 2 $ 313 $ 313 8 $ 2,393 $ 2,643
recorded investment and number of modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period	The following table discloses the recorded investment and number of modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period Modifications that Subsequently Defaulted For the twelve months ending December 31, 2020 For the twelve months ending December 31, 2019 Quantity Balance Quantity Balance Troubled Debt Restructurings Residential 1-4 family 1 178 - - Commercial real estate - - 1 274 Total 1 178 1 274
components of impaired loans	Loans individually evaluated for impairment (impaired loans) are loans for which Salisbury does not expect to collect all principal and interest in accordance with the contractual terms of the loan. Impaired loans include all modified loans classified as TDRs and loans on non-accrual status. The components of impaired loans December 31, (in thousands) 2020 2019 Non-accrual loans, excluding troubled debt restructured loans $ 4,091 $ 2,604 Non-accrual troubled debt restructured loans 1,546 1,013 Accruing troubled debt restructured loans 6,272 7,778 Total impaired loans $ 11,909 $ 11,395 Commitments to lend additional amounts to impaired borrowers $ - $ -
activity within the allowance for loan losses by loan segment	In first quarter 2019 Salisbury transferred the remaining unearned credit-related discount on loans acquired in its 2014 acquisition of Riverside Bank to the allowance for loan losses. As a result of this transfer, which is reflected in the table below as the “acquisition discount transfer”, gross loans receivable and the allowance for loan losses increased by $ 663 The table below shows the activity within the allowance for loan losses by loan segment December 31, 2020 December 31, 2019 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Beginning balance Acquisition Discount Transfer Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 2,393 $ 255 $ (11 ) $ 9 $ 2,646 $ 2,149 $ 10 $ 367 $ (136 ) $ 3 $ 2,393 Residential 5+ multifamily 446 282 (42 ) - 686 413 - 33 - - 446 Construction of residential 1-4 family 75 (10 ) - - 65 83 - (8 ) - - 75 Home equity lines of credit 197 (197 ) - 252 252 219 1 258 (281 ) - 197 Residential real estate 3,111 330 (53 ) 261 3,649 2,864 11 650 (417 ) 3 3,111 Commercial 3,742 2,776 (17 ) 45 6,546 3,048 488 248 (44 ) 2 3,742 Construction of commercial 104 492 - - 596 122 - (18 ) - - 104 Commercial real estate 3,846 3,268 (17 ) 45 7,142 3,170 488 230 (44 ) 2 3,846 Farm land 47 12 - - 59 33 - 14 - - 47 Vacant land 71 109 - - 180 100 - (29 ) - - 71 Real estate secured 7,075 3,719 (70 ) 306 11,030 6,167 499 865 (461 ) 5 7,075 Commercial and industrial 1,145 612 (362 ) 2 1,397 1,158 164 (78 ) (145 ) 46 1,145 Municipal 46 (3 ) - - 43 12 - 34 - - 46 Consumer 60 72 (70 ) 15 77 56 - 3 (36 ) 37 60 Unallocated 569 638 - - 1,207 438 - 131 - - 569 Totals $ 8,895 $ 5,038 $ (502 ) $ 323 $ 13,754 $ 7,831 $ 663 $ 955 $ (642 ) $ 88 $ 8,895 December 31, 2018 (in thousands) Beginning balance Provision Charge- offs Reco- veries Ending balance Residential 1-4 family $ 1,862 $ 580 $ (299 ) $ 6 $ 2,149 Residential 5+ multifamily 155 258 - - 413 Construction of residential 1-4 family 75 8 - - 83 Home equity lines of credit 236 (18 ) - 1 219 Residential real estate 2,328 828 (299 ) 7 2,864 Commercial 2,547 756 (259 ) 4 3,048 Construction of commercial 80 42 - - 122 Commercial real estate 2,627 798 (259 ) 4 3,170 Farm land 32 (6 ) - 7 33 Vacant land 132 (32 ) - - 100 Real estate secured 5,119 1,588 (558 ) 18 6,167 Commercial and industrial 984 255 (108 ) 27 1,158 Municipal 30 (18 ) - - 12 Consumer 80 28 (81 ) 29 56 Unallocated 563 (125 ) - - 438 Totals $ 6,776 $ 1,728 $ (747 ) $ 74 $ 7,831
composition of loans receivable and the allowance for loan losses	The composition of loans receivable and the allowance for loan losses (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance December 31, 2020 Residential 1-4 family $ 347,695 $ 2,445 $ 4,306 $ 201 $ 352,001 $ 2,646 Residential 5+ multifamily 36,094 686 964 - 37,058 686 Construction of residential 1-4 family 8,814 65 - - 8,814 65 Home equity lines of credit 27,650 232 154 20 27,804 252 Residential real estate 420,253 3,428 5,424 221 425,677 3,649 Commercial 305,193 6,298 5,648 248 310,841 6,546 Construction of commercial 31,722 596 - - 31,722 596 Commercial real estate 336,915 6,894 5,648 248 342,563 7,142 Farm land 3,040 59 158 - 3,198 59 Vacant land 13,912 178 167 2 14,079 180 Real estate secured 774,120 10,559 11,397 471 785,517 11,030 Commercial and industrial 226,662 1,223 486 174 227,148 1,397 Municipal 21,512 43 - - 21,512 43 Consumer 7,661 59 26 18 7,687 77 Unallocated allowance - 1,207 - - - 1,207 Totals $ 1,029,955 $ 13,091 $ 11,909 $ 663 $ 1,041,864 $ 13,754 (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 December 31, 2020 (in thousands) Collectively evaluated Individually evaluated Total portfolio Loans Allowance Loans Allowance Loans Allowance Performing loans $ 1,011,757 $ 10,424 $ - $ - $ 1,011,757 $ 10,424 Potential problem loans 1 18,198 1,460 - - 18,198 1,460 Impaired loans - - 11,909 663 11,909 663 Unallocated allowance - 1,207 - - - 1,207 Totals $ 1,029,955 $ 13,091 $ 11,909 $ 663 $ 1,041,864 $ 13,754 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 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 Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2020 Residential $ 2,971 $ 3,040 $ 3,862 $ 201 $ 72 $ 2,299 $ 2,676 $ 1,993 $ 27 Home equity lines of credit 75 75 76 20 - 79 117 103 - Residential real estate 3,046 3,115 3,938 221 72 2,378 2,793 2,096 27 Commercial 3,058 3,117 3,325 248 132 2,590 3,203 1,139 91 Construction of commercial - - - - - - - - - Farm land - - - - - 158 319 173 - Vacant land 37 40 39 2 - 130 145 134 9 Real estate secured 6,141 6,272 7,302 471 204 5,256 6,460 3,542 127 Commercial and industrial 416 424 482 174 4 70 283 58 2 Consumer 26 26 31 18 2 - - - - Totals $ 6,583 $ 6,722 $ 7,815 $ 663 $ 210 $ 5,326 $ 6,743 $ 3,600 $ 129 Impaired loans with specific allowance Impaired loans with no specific allowance (In thousands) Loan balance Specific Income Loan balance Income Book Note Average allowance recognized Book Note Average recognized December 31, 2019 Residential $ 4,111 $ 4,190 $ 3,725 $ 276 $ 162 $ 2,318 $ 3,081 $ 2,940 $ 52 Home equity lines of credit - - 52 - - 105 450 391 - Residential real estate 4,111 4,190 3,777 276 162 2,423 3,531 3,331 52 Commercial 3,309 3,335 2,574 409 90 1,024 1,733 1,747 54 Construction of commercial - - 77 - - - - 39 - Farm land - - - - - 186 329 203 - Vacant land 41 41 42 5 3 139 157 143 10 Real estate secured 7,461 7,566 6,470 690 255 3,772 5,750 5,463 116 Commercial and industrial 93 97 16 2 4 33 188 265 4 Consumer 36 36 21 1 - - - 3 - Totals $ 7,590 $ 7,699 $ 6,507 $ 693 $ 259 $ 3,805 $ 5,938 $ 5,731 $ 120

NOTE 5 _ LEASES (Tables)

NOTE 5 – LEASES (Tables)	12 Months Ended
	Dec. 31, 2020
Note 5 Leases
assets and liabilities as well as the costs of operating and finance leases	The following table provides the assets and liabilities as well as the costs of operating and finance leases ($ in thousands) Classification December 31, 2020 December 31, 2019 Assets Operating Other assets $ 1,182 $ 1,360 Finance Bank premises and equipment 1 1,402 1,503 Total Leased Assets $ 2,584 $ 2,863 Liabilities Operating Accrued interest and other liabilities $ 1,182 $ 1,360 Finance Finance lease obligations 1,673 1,718 Total lease liabilities $ 2,855 $ 3,078 1 Net of accumulated depreciation of $396 thousand and $294 thousand, respectively. Lease cost ($ in thousands) Classification Twelve months ended Twelve months ended December 31, 2020 December 31, 2019 Operating leases Premises and equipment $ 261 $ 255 Finance leases: Amortization of leased assets Premises and equipment 101 200 Interest on finance leases Interest expense 141 173 Total lease cost $ 503 $ 628 Weighted Average Remaining Lease Term December 31, 2020 December 31, 2019 Operating leases 7.6 years 8.2 years Financing leases 14.2 years 15.1 years Weighted Average Discount Rate 1 Operating leases 3.67 % 3.70 % Financing leases 8.37 % 8.41 % 1 Salisbury uses the FHLBB five-year Advance rate as the discount rate, as its leases do not provide an implicit rate.
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 2021 $ 250 $ 192 2022 199 195 2023 148 197 2024 129 200 2025 137 203 Thereafter 516 1,777 Total future minimum lease payments 1,379 2,764 Less amount representing interest (197 ) (1,091 ) Total present value of net future minimum lease payments $ 1,182 $ 1,673

NOTE 6 - MORTGAGE SERVICING R_2

NOTE 6 - MORTGAGE SERVICING RIGHTS (Tables)	12 Months Ended
	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Balances of loans serviced for others and the fair value of mortgage servicing rights	Loans serviced for others are not included in the consolidated balance sheets. Balances of loans serviced for others and the fair value of mortgage servicing rights December 31, (in thousands) 2020 2019 Residential mortgage loans serviced for others $ 134,428 $ 106,255 Fair value of mortgage servicing rights 762 813
Changes in mortgage servicing rights	Changes in mortgage servicing rights Years ended December 31, (in thousands) 2020 2019 2018 Mortgage Servicing Rights Balance, beginning of period $ 238 $ 228 $ 233 Originated 534 61 43 Amortization (1) (151 ) (51 ) (48 ) Balance, end of period 621 238 228 Valuation Allowance Balance, beginning of period - - - Increase in impairment reserve (1) (9 ) - - Balance, end of period (9 ) - - Mortgage servicing rights, net $ 612 $ 238 $ 228 (1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.

NOTE 7 - PLEDGED ASSETS (Tables

NOTE 7 - PLEDGED ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
Guarantees and Product Warranties [Abstract]
The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available	The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available December 31, (in thousands) 2020 2019 Securities available-for-sale (at fair value) $ 54,581 $ 52,845 Loans receivable (at book value) 420,415 434,329 Total pledged assets $ 474,996 $ 487,174

NOTE 8 - BANK PREMISES AND EQ_2

NOTE 8 - BANK PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
components of premises and equipment	The components of premises and equipment December 31, (in thousands) 2020 2019 Land $ 2,762 $ 2,762 Buildings and improvements 14,886 14,878 Leasehold improvements 1,553 1,553 Finance leases 1,798 1,798 Furniture, fixtures, equipment and software 9,687 9,370 Fixed assets in process 4,838 768 Total cost 35,525 31,129 Accumulated depreciation and amortization (15,170 ) (13,744 ) Bank premises and equipment, net $ 20,355 $ 17,385

NOTE 9 - GOODWILL AND INTANGI_2

NOTE 9 - GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying values of goodwill and intangible assets	Changes in the carrying values of goodwill and intangible assets Years ended December 31, (in thousands) 2020 2019 2018 Goodwill (1) Balance, beginning of period $ 13,815 $ 13,815 $ 13,815 Additions - - - Impairment - - - Balance, end of period $ 13,815 $ 13,815 $ 13,815 Core deposit intangibles Cost, beginning of period $ 5,881 $ 5,881 $ 5,881 Additions - - - Cost, end of period 5,881 5,881 5,881 Amortization, beginning of period (4,886 ) (4,498 ) (4,044 ) Amortization (321 ) (388 ) (454 ) Amortization, end of period (5,207 ) (4,886 ) (4,498 ) Core deposit intangibles, net $ 674 $ 995 $ 1,383 (1) Not subject to amortization.
Estimated annual amortization expense of core deposit intangibles	The core deposit intangibles were recorded as identifiable intangible assets and are being amortized over ten years using the sum-of-the-years’ digits method. Estimated annual amortization expense of core deposit intangibles December 31, CDI amortization 2021 255 2022 192 2023 128 2024 61 2025 25 2026 and thereafter 13 Total $ 674

NOTE 10 - DEPOSITS (Tables)

NOTE 10 - DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2020
Scheduled maturities of time certificates of deposit	Scheduled maturities of time certificates of deposit December 31, (in thousands) CD maturities 2021 $ 82,376 2022 30,560 2023 6,490 2024 7,995 2025 4,093 Total $ 131,514
total amount and scheduled maturities of time certificates of deposit in denominations of $250 thousand or more	The total amount and scheduled maturities of time certificates of deposit in denominations of $250 thousand or more December 31, (in thousands) 2020 2019 Within three months $ 4,045 $ 4,603 After three through six months 17,218 3,799 After six through twelve months 4,851 6,628 Over one year 12,581 6,750 Total $ 38,695 $ 21,780

NOTE 11 _ SECURITIES SOLD UND_2

NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)	12 Months Ended
	Dec. 31, 2020
Securities sold under repurchase agreements	Salisbury enters into overnight and short-term repurchase agreements with its customers. Securities sold under repurchase agreements December 31, (in thousands) 2020 2019 Repurchase agreements, ending balance $ 7,116 $ 8,530 Repurchase agreements, average balance during period 7,986 4,913 Book value of collateral 12,632 9,031 Market value of collateral 13,196 9,246 Weighted average rate during period 0.25 % 0.48 % Weighted average maturity 1 day 1 day

NOTE 12 _ FEDERAL HOME LOAN B_2

NOTE 12 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS (Tables)	12 Months Ended
	Dec. 31, 2020
Federal Home Loan Bank of Boston (“FHLBB”) advances	Federal Home Loan Bank of Boston (“FHLBB”) advances December 31, 2020 December 31, 2019 Years ended December 31, (dollars in thousands) Total (1) Rate (2) Total (1) Rate (2) Overnight $ - - % $ - - % 2020 - - 44,899 2.14 2021 4,984 1.13 5,988 2.45 2022 7,655 1.38 - - Total $ 12,639 1.29 % $ 50,887 2.18 % (1) Net of modification costs. (2) Weighted average rate based on scheduled maturity dates.

NOTE 13 _ NET DEFERRED TAX AS_2

NOTE 13 – NET DEFERRED TAX ASSET AND INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
Income Tax Disclosure [Abstract]
components of the income tax provision	Salisbury provides deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not. The components of the income tax provision Years ended December 31, (in thousands) 2020 2019 2018 Federal $ 3,487 $ 2,406 $ 1,986 State 566 344 217 Current provision 4,053 2,750 2,203 Federal (1,335 ) (317 ) (455 ) State (265 ) (74 ) (39 ) Deferred (benefit) expense (1,600 ) (391 ) (494 ) Income tax provision $ 2,453 $ 2,359 $ 1,709
reconciliation of the expected federal statutory tax to the income tax provision	The following is a reconciliation of the expected federal statutory tax to the income tax provision Years ended December 31, 2020 2019 2018 Income tax at statutory federal tax rate 21.00 % 21.00 % 21.00 % State tax, net of federal tax benefit 1.97 1.58 1.37 Tax exempt income and dividends received deduction (3.69 ) (3.82 ) (3.84 ) BOLI interest and gain (1.60 ) (0.61 ) (1.35 ) Other (0.64 ) (0.67 ) (0.95 ) Effective income tax rates 17.04 % 17.48 % 16.23 %
components of Salisbury's net deferred tax assets	The components of Salisbury's net deferred tax assets December 31, (in thousands) 2020 2019 Allowance for loan losses $ 3,355 $ 2,174 Interest on non-performing loans 214 244 Accrued deferred compensation 517 493 Post-retirement benefits 11 11 Other real estate owned write-downs - 30 Restricted stock awards 196 220 Deferred loan fees, net 90 - Loss on equity securities - 2 Other 98 139 Gross deferred tax assets 4,481 3,313 Deferred loan costs, net - (329 ) Mark-to-market purchase accounting adjustments (8 ) (44 ) Goodwill and core deposit intangible asset (590 ) (570 ) Accelerated depreciation (522 ) (703 ) Gain on equity securities (2 ) - Mortgage servicing rights (150 ) (58 ) Net unrealized holding gains on available-for-sale securities (797 ) (360 ) Gross deferred tax liabilities (2,069 ) (2,064 ) Net deferred tax asset $ 2,412 $ 1,249

NOTE 14 _ SHAREHOLDERS_ EQUITY

NOTE 14 – SHAREHOLDERS’ EQUITY (Tables)	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Actual regulatory capital position and minimum capital requirements	The Bank’s risk-weighted assets at December 31, 2020 and December 31, 2019 were $ 938.0 891.6 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 December 31, 2020 Total Capital (to risk-weighted assets) $ 127,254 13.57 % $ 75,037 8.0 % $ 98,486 10.5 % $ 93,796 10.0 % Tier 1 Capital (to risk-weighted assets) 115,503 12.31 56,278 6.0 79,727 8.5 75,037 8.0 Common Equity Tier 1 Capital (to risk-weighted assets) 115,503 12.31 42,208 4.5 65,657 7.0 60,967 6.5 Tier 1 Capital (to average assets) $ 115,503 8.90 51,907 4.0 51,907 4.0 64,884 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 16 - LONG TERM INCENTIVE_2

NOTE 16 - LONG TERM INCENTIVE PLANS (Tables)	12 Months Ended
	Dec. 31, 2020
Retirement Benefits [Abstract]
amount of cumulatively granted restricted stock awards under the 2011 and 2017 Long-Term Incentive Plans	The following table presents the amount of cumulatively granted restricted stock awards under the 2011 and 2017 Long-Term Incentive Plans Weighted Average Weighted Average Year Ended December 31, 2020 Grant Price 2019 Grant Price Beginning of Year 39,626 $ 41.04 39,434 $ 37.73 Granted 15,475 35.82 15,130 39.70 Vested (13,776 ) 39.71 (14,228 ) 30.33 Forfeited (1,200 ) 41.25 (710 ) 42.81 End of Year 40,125 $ 39.44 39,626 $ 41.04
amount of cumulatively granted performance based restricted stock units awarded under the 2017 Long-Term Incentive Plans	The following table presents the amount of cumulatively granted performance based restricted stock units awarded under the 2017 Long-Term Incentive Plans Weighted Average Weighted Average Year Ended December 31, 2020 Grant Price 2019 Grant Price Beginning of Year 6,800 $ 41.20 0 $ 0.00 Granted 7,250 36.36 6,800 41.20 Vested 0 0 0 0.00 Forfeited (350 ) 41.20 0 0.00 End of Year 13,700 $ 38.64 6,800 $ 41.20

NOTE 17 _ STOCK OPTIONS (Tables

NOTE 17 – STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. The table below reflects the remaining outstanding options related to this transaction and presents a summary of the status of Salisbury's outstanding stock options	Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. The table below reflects the remaining outstanding options related to this transaction and presents a summary of the status of Salisbury's outstanding stock options Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Beginning of period 17,820 $ 17.04 Granted - - Exercised (3,105 ) 17.04 Forfeited or expired - - End of period 14,715 $ 17.04 3.00 $ 297,684 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Beginning of period 22,545 $ 17.04 Granted - - Exercised (4,725 ) 17.04 Forfeited or expired - - End of period 17,820 $ 17.04 4.00 $ 510,187

NOTE 18 - RELATED PARTY TRANS_2

NOTE 18 - RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2020
Related Party Transactions [Abstract]
Changes in loans to executive officers, directors and their related associates	In the normal course of business, the Bank has granted loans to executive officers, directors, principal shareholders and associates of the foregoing persons considered to be related parties. Changes in loans to executive officers, directors and their related associates Years ended December 31, (in thousands) 2020 2019 Balance, beginning of period $ 10,655 $ 9,432 Advances 2,407 8,010 Repayments (3,645 ) (6,787 ) Balance, end of period $ 9,417 $ 10,655

NOTE 19 _ OTHER COMPREHENSIVE_2

NOTE 19 – OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2020
Equity [Abstract]
reconciliation of the changes in the components of other comprehensive income (loss)	The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) Years ended December 31, (in thousands) 2020 2019 2018 Other comprehensive income (loss) Net unrealized gains (losses) on securities available-for-sale $ 2,280 $ 2,258 $ (202 ) Reclassification of net realized gains in net income (1) (196 ) (263 ) (318 ) Unrealized gains (losses) on securities available-for-sale 2,084 1,995 (520 ) Income tax (expense) benefit (437 ) (418 ) 105 Unrealized gains (losses) on securities available-for-sale, net of tax 1,647 1,577 (415 ) Other comprehensive income (loss) $ 1,647 $ 1,577 $ (415 ) (1) 41 55 67
components of accumulated other comprehensive income (loss)	The components of accumulated other comprehensive income (loss) December 31, (in thousands) 2020 2019 Unrealized gains on securities available-for-sale, net of tax $ 3,004 $ 1,357 Accumulated other comprehensive income $ 3,004 $ 1,357

NOTE 20 _ DERIVATIVES AND HED_2

NOTE 20 – DERIVATIVES AND HEDGING ACTIVITIES (Tables)	12 Months Ended
	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
As of December 31, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges	As of December 31, 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 (in thousands) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Loans receivable (1) $ 9,996 $ - $ (4 ) $ - Total $ 9,996 $ - $ (4 ) $ -
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 December 31, 2020 (in thousands) Notional Amount Balance Sheet Location Fair Value Derivatives designated as hedge instruments Interest Rate Products $ 10,000 Other Assets $ 4 Total Derivatives designated as hedge instruments $ 4
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 For the year ended December 31, 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 $ 1 $ — Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (4 ) — Derivatives designated as hedging instruments $ 5 $ —

NOTE 22 - FINANCIAL INSTRUMEN_2

NOTE 22 - FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
Investments, All Other Investments [Abstract]
Financial instruments with off-balance sheet credit risk	Financial instruments with off-balance sheet credit risk December 31, (in thousands) 2020 2019 Residential $ 11,661 $ 5,815 Home equity lines of credit 28,919 28,160 Commercial 10,103 14,858 Land 566 1,014 Real estate secured 51,249 49,847 Commercial and industrial 94,854 78,286 Municipal 1,804 2,499 Consumer 2,077 2,148 Unadvanced portions of loans 149,984 132,780 Commitments to originate loans 49,753 33,781 Letters of credit 4,758 4,657 Total $ 204,495 $ 171,218

NOTE 23 - FAIR VALUE MEASUREM_2

NOTE 23 - FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Assets measured at fair value	Assets measured at fair value Fair Value Measurements Using Assets at (in thousands) Level 1 Level 2 Level 3 fair value December 31, 2020 Assets at fair value on a recurring basis U.S. Government Agency notes $ - $ 7,851 $ - $ 7,851 Municipal bonds - 27,617 - 27,617 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises - 36,573 - 36,573 Collateralized mortgage obligations: U.S. Government agencies - 17,454 - 17,454 Corporate bonds - 8,916 - 8,916 Securities available-for-sale $ - $ 98,411 $ - $ 98,411 CRA mutual funds 917 - - 917 Derivative financial instruments - 4 - 4 Assets at fair value on a non-recurring basis Impaired loans carried at fair value $ - $ - $ - $ - Other real estate owned $ - $ - $ - $ - December 31, 2019 Assets at fair value on a recurring basis U.S. Government Agency notes $ - $ 4,644 $ - $ 4,644 Municipal bonds - 27,193 - 27,193 Mortgage-backed securities: U.S. Government agencies and U.S. Government-sponsored enterprises - 29,357 - 29,357 Collateralized mortgage obligations: U.S. Government agencies - 25,499 - 25,499 Corporate bonds - 5,108 - 5,108 Securities available-for-sale $ - $ 91,801 $ - $ 91,801 CRA mutual funds 882 - - 882 Assets at fair value on a non-recurring basis Impaired loans carried at fair value $ - $ - $ 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 Carrying Estimated Fair value measurements using (In thousands) value fair value Level 1 Level 2 Level 3 December 31, 2020 Financial Assets Cash and cash equivalents $ 93,162 $ 93,162 $ 93,162 $ - $ - Interest bearing time deposits with financial institutions 750 750 750 - - Securities available-for-sale 98,411 98,411 - 98,411 - CRA mutual fund 917 917 917 - - Federal Home Loan Bank of Boston stock 1,713 1,713 1,713 - - Loans held-for-sale 2,735 2,790 - - 2,790 Loans receivable, net 1,027,738 1,057,234 - - 1,057,234 Accrued interest receivable 6,373 6,373 6,373 - - Cash surrender value of life insurance policies 21,182 21,182 21,182 - - Derivative financial instruments 4 4 - 4 - Financial Liabilities Demand (non-interest-bearing) $ 310,769 $ 310,769 $ - $ 310,769 $ - Demand (interest-bearing) 218,869 218,869 - 218,869 - Money market 278,146 278,146 - 278,146 - Savings and other 189,776 189,776 - 189,776 - Certificates of deposit 131,514 132,875 - 132,875 - Deposits 1,129,074 1,130,435 - 1,130,435 - Repurchase agreements 7,116 7,116 - 7,116 - FHLBB advances 12,639 12,786 - 12,786 - Subordinated debt 9,883 10,027 10,027 - - Note payable 208 212 - 212 - Finance lease liability 1,673 1,920 - - 1,920 Accrued interest payable 43 43 43 - - 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 24 _ SALISBURY BANCORP, _2

NOTE 24 – SALISBURY BANCORP, INC. (PARENT ONLY) CONDENSED FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]
Balance Sheets	The unconsolidated balance sheets and statements of income and cash flows of Salisbury Bancorp, Inc. are presented as follows: Balance Sheets 2020 2019 Assets Cash and due from banks $ 1,968 $ 2,273 Investment in bank subsidiary 132,407 121,027 Other assets 273 252 Total Assets $ 134,648 $ 123,552 Liabilities and Shareholders' Equity Subordinated debt $ 9,883 $ 9,859 Other liabilities 13 38 Shareholders' equity 124,752 113,655 Total Liabilities and Shareholders' Equity $ 134,648 $ 123,552
Statements of Income	Statements of Income 2020 2019 2018 Dividends from subsidiary $ 3,787 $ 3,546 $ 3,529 Interest income 6 10 10 Interest expense 618 624 624 Non-interest expenses 495 417 435 Income before taxes and equity in undistributed net income of subsidiary 2,680 2,515 2,480 Income tax benefit 273 252 256 Income before equity in undistributed net income of subsidiary 2,953 2,767 2,736 Equity in undistributed net income of subsidiary 8,987 8,369 6,088 Net income $ 11,940 $ 11,136 $ 8,824
Statements of Cash Flows	Statements of Cash Flows 2020 2019 2018 Net income $ 11,940 $ 11,136 $ 8,824 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary (8,987 ) (8,369 ) (6,088 ) Other (25 ) 474 (239 ) Net cash provided by operating activities 2,928 3,241 2,497 Investing Activities Investment in bank - - - Net cash utilized by investing activities - - - Financing activities Common stock dividends paid (3,286 ) (3,155 ) (3,133 ) Proceeds from issuance of common stock 53 82 222 Net cash utilized by financing activities (3,233 ) (3,073 ) (2,911 ) Net increase (decrease) in cash and cash equivalents (305 ) 168 (414 ) Cash and cash equivalents, beginning of period 2,273 2,105 2,519 Cash and cash equivalents, end of period $ 1,968 $ 2,273 $ 2,105

NOTE 25 _ EARNINGS PER SHARE (T

NOTE 25 – EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2020
Earnings Per Share [Abstract]
calculation of earnings per share	The calculation of earnings per share Years ended December 31, (in thousands, except per share amounts) 2020 2019 2018 Net income applicable to common shareholders $ 11,940 $ 11,136 $ 8,824 Less: Undistributed earnings allocated to participating securities (165 ) (160 ) (111 ) Net income allocated to common stock $ 11,775 $ 10,976 $ 8,713 Weighted average common shares issued 2,837 2,817 2,798 Less: Unvested restricted stock awards (39 ) (35 ) (35 ) Weighted average common shares outstanding used to calculate basic earnings per common share 2,798 2,782 2,763 Add: Dilutive effect of stock options 8 12 17 Weighted average common shares outstanding used to calculate diluted earnings per common share 2,806 2,794 2,780 Earnings per common share (basic) $ 4.21 $ 3.95 $ 3.15 Earnings per common share (diluted) $ 4.20 $ 3.93 $ 3.13

activity in the accretable yiel

activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30 (Details) - Series of Individually Immaterial Business Acquisitions [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Business Acquisition [Line Items]
Balance at beginning of period	$ 204
Acquisitions
Accretion	(204)
Disposals
Reclassification from non-accretable to accretable
Balance at end of period

composition of securities (Deta

composition of securities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
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	$ 7,735
Municipal bonds	25,831
U.S. Government agencies and U.S. Government sponsored enterprises	35,240
U.S. Government agencies	17,054
Corporate bonds	8,750
Total securities available-for-sale	94,610
Non-marketable securities
Federal Home Loan Bank of Boston stock	1,713
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Available-for-sale
U.S. Government Agency notes	153
Municipal bonds	1,787
U.S. Government agencies and U.S. Government sponsored enterprises	1,376
U.S. Government agencies	400
Corporate bonds	166
Total securities available-for-sale	3,882
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	37
Municipal bonds	1
U.S. Government agencies and U.S. Government sponsored enterprises	43
U.S. Government agencies
Corporate bonds
Total securities available-for-sale	81
Non-marketable securities
Federal Home Loan Bank of Boston stock
Securities Financing Transaction, Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	7,851
Municipal bonds	27,617
U.S. Government agencies and U.S. Government sponsored enterprises	36,573
U.S. Government agencies	17,454
Corporate bonds	8,916
Total securities available-for-sale	98,411
CRA mutual fund	917
Non-marketable securities
Federal Home Loan Bank of Boston stock	$ 1,713

Sales of securities available-f

Sales of securities available-for-sale and gross gains and gross losses realized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 15,589	$ 41,814	$ 10,036
Gains realized	293	371	361
Losses realized	(97)	(108)	(43)
Net gains realized	196	263	318
Income tax provision	$ 41	$ 55	$ 67

aggregate fair value and gross

aggregate fair value and gross unrealized loss of securities that have been in a continuous unrealized loss position (Details) - USD ($) $ in Thousands	Dec. 31, 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	$ 2,553
Municipal bonds	558	6,273
U.S. Government agencies and U.S. Government - sponsored enterprises	3,761	5,781
Total temporarily impaired securities	6,872	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	36
Municipal bonds	1
U.S. Government agencies and U.S. Government - sponsored enterprises	42
Total temporarily impaired securities	79
Aggregate Fair Value Gross Unrealized Loss Of Securities 12 Months Or Longer Fair Value [Member]
Available-for-sale
U.S. Government Agency notes	20	195
Municipal bonds
U.S. Government agencies and U.S. Government - sponsored enterprises	45	704
Total temporarily impaired securities	65	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
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	2,573	195
Municipal bonds	558	6,273
U.S. Government agencies and U.S. Government - sponsored enterprises	3,806	6,485
Total temporarily impaired securities	6,937	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	37	1
Municipal bonds	1	73
U.S. Government agencies and U.S. Government - sponsored enterprises	43	24
Total temporarily impaired securities	$ 81	108
U.S. Government Agencies		$ 10

amortized cost, fair value and

amortized cost, fair value and tax equivalent yield of securities, by maturity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 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	$ 2,497
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 2,545
Receivable with Imputed Interest, Effective Yield (Interest Rate)	348.00%
U S Government Agency Notes Total [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 2,497
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 2,545
Receivable with Imputed Interest, Effective Yield (Interest Rate)	348.00%
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	$ 2,731
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 2,910
Receivable with Imputed Interest, Effective Yield (Interest Rate)	259.00%
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	$ 23,100
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 24,707
Receivable with Imputed Interest, Effective Yield (Interest Rate)	302.00%
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	$ 25,831
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 27,617
Receivable with Imputed Interest, Effective Yield (Interest Rate)	298.00%
Corporate Debt Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 8,750
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 8,916
Receivable with Imputed Interest, Effective Yield (Interest Rate)	522.00%
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	$ 57,532
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 59,333
Receivable with Imputed Interest, Effective Yield (Interest Rate)	200.00%
Available-for-sale Securities [Member]
Open Option Contracts Written [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost	$ 94,610
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value	$ 98,411
Receivable with Imputed Interest, Effective Yield (Interest Rate)	261.00%

composition of loans receivable

composition of loans receivable and loans held-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net	$ 1,027,738	$ 927,413
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	352,001	346,299
Residential 5+ multifamily	37,058	35,455
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,804	33,798
Residential real estate	425,677	427,441
Commercial	310,841	289,795
Construction of commercial	31,722	8,466
Commercial real estate	342,563	298,261
Farm land	3,198	3,641
Vacant land	14,079	7,893
Real estate secured	785,517	737,236
Commercial and industrial	227,148	169,411
Municipal	21,512	21,914
Consumer	7,687	6,385
Loans receivable, gross	1,041,864	934,946
Deferred loan origination (fees) and costs, net	(372)	1,362
Allowance for loan losses	(13,754)	(8,895)
Loans receivable, net	1,027,738	927,413
Loans held-for-sale
Residential 1-4 family	$ 2,735	$ 332

composition of loans receivab_2

composition of loans receivable by risk rating grade (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Residential 1-4 family	$ 342,243	$ 337,302
Residential 5+ multifamily	35,272	33,619
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,393	33,381
Residential real estate	413,722	416,191
Commercial	276,866	271,708
Construction of commercial	31,493	8,225
Commercial real estate	308,359	279,933
Farm land	1,612	1,934
Vacant land	13,992	7,834
Real estate secured	737,685	705,892
Commercial and industrial	224,906	167,458
Municipal	21,512	21,914
Consumer	7,660	6,344
Loans receivable, gross	991,763	901,608
Special Mention [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Residential 1-4 family	5,615	4,278
Residential 5+ multifamily	90	99
Construction of residential 1-4 family
Home equity lines of credit	257	312
Residential real estate	5,962	4,689
Commercial	15,565	10,964
Construction of commercial
Commercial real estate	15,565	10,964
Farm land
Vacant land	50	59
Real estate secured	21,577	15,712
Commercial and industrial	1,271	443
Municipal
Consumer		3
Loans receivable, gross	22,848	16,158
Substandard [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Residential 1-4 family	4,143	4,719
Residential 5+ multifamily	1,696	1,737
Construction of residential 1-4 family
Home equity lines of credit	154	105
Residential real estate	5,993	6,561
Commercial	18,410	7,052
Construction of commercial	229	241
Commercial real estate	18,639	7,293
Farm land	1,586	1,707
Vacant land	37
Real estate secured	26,255	15,561
Commercial and industrial	632	1,510
Municipal
Consumer	27	38
Loans receivable, gross	26,914	17,109
Doubtful [Member]
Financing Receivable, Credit Quality Indicator [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
Construction of commercial
Commercial real estate		71
Farm land
Vacant land
Real estate secured		71
Commercial and industrial	339
Municipal
Consumer
Loans receivable, gross	339	71
Unlikely to be Collected Financing Receivable [Member]
Financing Receivable, Credit Quality Indicator [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]
Financing Receivable, Credit Quality Indicator [Line Items]
Residential 1-4 family	352,001	346,299
Residential 5+ multifamily	37,058	35,455
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,804	33,798
Residential real estate	425,677	427,441
Commercial	310,841	289,795
Construction of commercial	31,722	8,466
Commercial real estate	342,563	298,261
Farm land	3,198	3,641
Vacant land	14,079	7,893
Real estate secured	785,517	737,236
Commercial and industrial	227,148	169,411
Municipal	21,512	21,914
Consumer	7,687	6,385
Loans receivable, gross	$ 1,041,864	$ 934,946

composition of loans receivab_3

composition of loans receivable by delinquency status (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loans Receivable Delinquency Status Current [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	$ 349,382	$ 344,085
Residential 5+ multifamily	36,197	34,594
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,522	33,522
Residential real estate	421,915	424,090
Commercial	307,927	289,103
Construction of commercial	31,722	8,466
Commercial real estate	339,649	297,569
Farm land	2,594	3,461
Vacant land	14,079	7,852
Real estate secured	778,237	732,972
Commercial and industrial	224,496	169,262
Municipal	21,512	21,914
Consumer	7,677	6,382
Loans receivable, gross	1,031,922	930,530
Loans Receivable Delinquency Status Period Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	1,419	971
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	157	152
Residential real estate	1,576	1,123
Commercial	1,855	336
Construction of commercial
Commercial real estate	1,855	336
Farm land	154	180
Vacant land
Real estate secured	3,585	1,639
Commercial and industrial	2,148	2
Municipal
Consumer	10
Loans receivable, gross	5,743	1,641
Loans Receivable Delinquency Status Period Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	308	351
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	9	46
Residential real estate	317	397
Commercial	530	141
Construction of commercial
Commercial real estate	530	141
Farm land	450
Vacant land		41
Real estate secured	1,297	579
Commercial and industrial	457	146
Municipal
Consumer		1
Loans receivable, gross	1,754	726
Loans Receivable Delinquency Status Period Four [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	673	200
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit
Residential real estate	673	200
Commercial	95	71
Construction of commercial
Commercial real estate	95	71
Farm land
Vacant land
Real estate secured	768	271
Commercial and industrial	1	1
Municipal
Consumer		2
Loans receivable, gross	769	274
Loans Receivable Delinquency Status Period Five [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	219	692
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	116	78
Residential real estate	1,196	1,631
Commercial	434	144
Construction of commercial
Commercial real estate	434	144
Farm land
Vacant land
Real estate secured	1,630	1,775
Commercial and industrial	46
Municipal
Consumer
Loans receivable, gross	1,676	1,775
Loans Receivable Delinquency Status Period Six [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	2,619	2,214
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	282	276
Residential real estate	3,762	3,351
Commercial	2,914	692
Construction of commercial
Commercial real estate	2,914	692
Farm land	604	180
Vacant land		41
Real estate secured	7,280	4,264
Commercial and industrial	2,652	149
Municipal
Consumer	10	3
Loans receivable, gross	9,942	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	12	1
Municipal
Consumer		2
Loans receivable, gross	12	3
Loans Receivable Delinquency Non Accrual [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential 1-4 family	1,508	1,551
Residential 5+ multifamily	861	861
Construction of residential 1-4 family
Home equity lines of credit	154	105
Residential real estate	2,523	2,517
Commercial	2,544	914
Construction of commercial
Commercial real estate	2,544	914
Farm land	158	186
Vacant land	37
Real estate secured	5,262	3,617
Commercial and industrial	374
Municipal
Consumer
Loans receivable, gross	$ 5,636	$ 3,617

Troubled debt restructurings oc

Troubled debt restructurings occurring during the years ended December 31, 2020 and 2019: (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)Integer	Dec. 31, 2019USD ($)Integer
Residential real estate
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	3
Pre-modification balance	$ 180	$ 1,416
Post-modification balance	$ 180	$ 1,416
Commercial and industrial
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	4
Pre-modification balance	$ 133	$ 977
Post-modification balance	$ 133	$ 1,191
Consumer
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		1
Pre-modification balance
Post-modification balance		$ 36
Troubled debt restructurings
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	2	8
Pre-modification balance	$ 313	$ 2,393
Post-modification balance	$ 313	$ 2,643
Interest only payments to sell property
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		1
Pre-modification balance		$ 791
Post-modification balance		$ 791
Rate reduction
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer
Pre-modification balance
Post-modification balance
Modification and Rate reduction
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		2
Pre-modification balance		$ 625
Post-modification balance		$ 625
Extension of new funds to pay outstanding taxes
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		3
Pre-modification balance		$ 259
Post-modification balance		$ 442
Modification And Term Extension Portfolio Segment [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	2	2
Pre-modification balance	$ 313	$ 718
Post-modification balance	$ 313	$ 785
Finance Leases Portfolio Segment 1 [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	2	8
Pre-modification balance	$ 313	$ 2,393
Post-modification balance	$ 313	$ 2,643

recorded investment and number

recorded investment and number of modifications for TDRs within the last year where a concession has been made, that then defaulted in the current reporting period (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)Integer	Dec. 31, 2019USD ($)Integer
Residential 1-4 family
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1
Balance | $	$ 178
Commercial real estate
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer		1
Balance | $		$ 274
Total
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Quantity | Integer	1	1
Balance | $	$ 178	$ 274

components of impaired loans (D

components of impaired loans (Details) - Loans and Finance Receivables [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans, excluding troubled debt restructured loans	$ 4,091	$ 2,604
Non-accrual troubled debt restructured loans	1,546	1,013
Accruing troubled debt restructured loans	6,272	7,778
Total impaired loans	11,909	11,395
Commitments to lend additional amounts to impaired borrowers

activity within the allowance f

activity within the allowance for loan losses by loan segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Residential 1-4 family
Financing Receivable, Past Due [Line Items]
Beginning balance	$ 2,393	$ 2,149	$ 1,862
Provision	255	367	580
Charge-offs	(11)	(136)	(299)
Recoveries	9	3	6
Ending balance	2,646	2,393	2,149
Acquisition Discount Transfer		10
Residential 5+ multifamily
Financing Receivable, Past Due [Line Items]
Beginning balance	446	413	155
Provision	282	33	258
Charge-offs	(42)
Recoveries
Ending balance	686	446	413
Acquisition Discount Transfer
Construction of residential 1-4 family
Financing Receivable, Past Due [Line Items]
Beginning balance	75	83	75
Provision	(10)	(8)	8
Charge-offs
Recoveries
Ending balance	65	75	83
Acquisition Discount Transfer
Home equity lines of credit
Financing Receivable, Past Due [Line Items]
Beginning balance	197	219	236
Provision	(197)	258	(18)
Charge-offs		(281)
Recoveries	252		1
Ending balance	252	197	219
Acquisition Discount Transfer		1
Residential real estate
Financing Receivable, Past Due [Line Items]
Beginning balance	3,111	2,864	2,328
Provision	330	650	828
Charge-offs	(53)	(417)	(299)
Recoveries	261	3	7
Ending balance	3,649	3,111	2,864
Acquisition Discount Transfer		11
Commercial
Financing Receivable, Past Due [Line Items]
Beginning balance	3,742	3,048	2,547
Provision	2,776	248	756
Charge-offs	(17)	(44)	(259)
Recoveries	45	2	4
Ending balance	6,546	3,742	3,048
Acquisition Discount Transfer		488
Construction of commercial
Financing Receivable, Past Due [Line Items]
Beginning balance	104	122	80
Provision	492	(18)	42
Charge-offs
Recoveries
Ending balance	596	104	122
Acquisition Discount Transfer
Commercial real estate
Financing Receivable, Past Due [Line Items]
Beginning balance	3,846	3,170	2,627
Provision	3,268	230	798
Charge-offs	(17)	(44)	(259)
Recoveries	45	2	4
Ending balance	7,142	3,846	3,170
Acquisition Discount Transfer		488
Farm land
Financing Receivable, Past Due [Line Items]
Beginning balance	47	33	32
Provision	12	14	(6)
Charge-offs
Recoveries			7
Ending balance	59	47	33
Acquisition Discount Transfer
Vacant land
Financing Receivable, Past Due [Line Items]
Beginning balance	71	100	132
Provision	109	(29)	(32)
Charge-offs
Recoveries
Ending balance	180	71	100
Acquisition Discount Transfer
Real estate secured
Financing Receivable, Past Due [Line Items]
Beginning balance	7,075	6,167	5,119
Provision	3,719	865	1,588
Charge-offs	(70)	(461)	(558)
Recoveries	306	5	18
Ending balance	11,030	7,075	6,167
Acquisition Discount Transfer		499
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Beginning balance	1,145	1,158	984
Provision	612	(78)	255
Charge-offs	(362)	(145)	(108)
Recoveries	2	46	27
Ending balance	1,397	1,145	1,158
Acquisition Discount Transfer		164
Municipal
Financing Receivable, Past Due [Line Items]
Beginning balance	46	12	30
Provision	(3)	34	(18)
Charge-offs
Recoveries
Ending balance	43	46	12
Acquisition Discount Transfer
Consumer
Financing Receivable, Past Due [Line Items]
Beginning balance	60	56	80
Provision	72	3	28
Charge-offs	(70)	(36)	(81)
Recoveries	15	37	29
Ending balance	77	60	56
Acquisition Discount Transfer
Unallocated
Financing Receivable, Past Due [Line Items]
Beginning balance	569	438	563
Provision	638	131	(125)
Charge-offs
Recoveries
Ending balance	1,207	569	438
Acquisition Discount Transfer
Totals
Financing Receivable, Past Due [Line Items]
Beginning balance	8,895	7,831	6,776
Provision	5,038	955	1,728
Charge-offs	(502)	(642)	(747)
Recoveries	323	88	74
Ending balance	$ 13,754	8,895	$ 7,831
Acquisition Discount Transfer		$ 663

composition of loans receivab_4

composition of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Totals	$ 1,027,738	$ 927,413
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	347,695	340,847
Residential 5+ multifamily	36,094	34,478
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,650	33,693
Residential real estate	420,253	420,907
Commercial	305,193	285,462
Construction of commercial	31,722	8,466
Commercial real estate	336,915	293,928
Farm land	3,040	3,455
Vacant land	13,912	7,713
Real estate secured	774,120	726,003
Commercial and industrial	226,662	169,285
Municipal	21,512	21,914
Consumer	7,661	6,349
Unallocated allowance
Totals	1,029,955	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	2,445	2,117
Residential 5+ multifamily	686	446
Construction of residential 1-4 family	65	75
Home equity lines of credit	232	197
Residential real estate	3,428	2,835
Commercial	6,298	3,333
Construction of commercial	596	104
Commercial real estate	6,894	3,437
Farm land	59	47
Vacant land	178	66
Real estate secured	10,559	6,385
Commercial and industrial	1,223	1,143
Municipal	43	46
Consumer	59	59
Unallocated allowance	1,207	569
Totals	13,091	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	4,306	5,452
Residential 5+ multifamily	964	977
Construction of residential 1-4 family
Home equity lines of credit	154	105
Residential real estate	5,424	6,534
Commercial	5,648	4,333
Construction of commercial
Commercial real estate	5,648	4,333
Farm land	158	186
Vacant land	167	180
Real estate secured	11,397	11,233
Commercial and industrial	486	126
Municipal
Consumer	26	36
Unallocated allowance
Totals	11,909	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	201	276
Residential 5+ multifamily
Construction of residential 1-4 family
Home equity lines of credit	20
Residential real estate	221	276
Commercial	248	409
Construction of commercial
Commercial real estate	248	409
Farm land
Vacant land	2	5
Real estate secured	471	690
Commercial and industrial	174	2
Municipal
Consumer	18	1
Unallocated allowance
Totals	663	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	352,001	346,299
Residential 5+ multifamily	37,058	35,455
Construction of residential 1-4 family	8,814	11,889
Home equity lines of credit	27,804	33,798
Residential real estate	425,677	427,441
Commercial	310,841	289,795
Construction of commercial	31,722	8,466
Commercial real estate	342,563	298,261
Farm land	3,198	3,641
Vacant land	14,079	7,893
Real estate secured	785,517	737,236
Commercial and industrial	227,148	169,411
Municipal	21,512	21,914
Consumer	7,687	6,385
Unallocated allowance
Totals	1,041,864	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	2,646	2,393
Residential 5+ multifamily	686	446
Construction of residential 1-4 family	65	75
Home equity lines of credit	252	197
Residential real estate	3,649	3,111
Commercial	6,546	3,742
Construction of commercial	596	104
Commercial real estate	7,142	3,846
Farm land	59	47
Vacant land	180	71
Real estate secured	11,030	7,075
Commercial and industrial	1,397	1,145
Municipal	43	46
Consumer	77	60
Unallocated allowance	1,207	569
Totals	$ 13,754	$ 8,895

credit quality segments of loan

credit quality segments of loans receivable and the allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Totals	$ 1,027,738	$ 927,413
Allowance For Loan And Lease Losses Collectively Evaluated Loans Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	1,011,757	913,648
Potential problem loans 1	18,198	9,903
Impaired loans
Unallocated allowance
Totals	1,029,955	923,551
Allowance For Loan And Lease Losses Collectively Evaluated Allowance Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	10,424	7,251
Potential problem loans 1	1,460	382
Impaired loans
Unallocated allowance	1,207	569
Totals	13,091	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	11,909	11,395
Unallocated allowance
Totals	11,909	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	663	693
Unallocated allowance
Totals	663	693
Allowance For Loan And Lease Losses Total Portfolio Loans Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	1,011,757	913,648
Potential problem loans 1	18,198	9,903
Impaired loans	11,909	11,395
Unallocated allowance
Totals	1,041,864	934,946
Allowance For Loan And Lease Losses Total Portfolio Allowance Credit Quality Segment [Member]
Financing Receivable, Past Due [Line Items]
Performing loans	10,424	7,251
Potential problem loans 1	1,460	382
Impaired loans	663	693
Unallocated allowance	1,207	569
Totals	$ 13,754	$ 8,895

Certain data with respect to lo

Certain data with respect to loans individually evaluated for impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Totals	$ 1,027,738	$ 927,413
Impaired Loans Specific Allowance Loan Balance Book [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	2,971	4,111
Home equity lines of credit	75
Residential real estate	3,046	4,111
Commercial	3,058	3,309
Construction of commercial
Farm land
Vacant land	37	41
Real estate secured	6,141	7,461
Commercial and industrial	416	93
Consumer	26	36
Totals	6,583	7,590
Impaired Loans Specific Allowance Loan Balance Note [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	3,040	4,190
Home equity lines of credit	75
Residential real estate	3,115	4,190
Commercial	3,117	3,335
Construction of commercial
Farm land
Vacant land	40	41
Real estate secured	6,272	7,566
Commercial and industrial	424	97
Consumer	26	36
Totals	6,722	7,699
Impaired Loans Specific Allowance Loan Balance Average [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	3,862	3,725
Home equity lines of credit	76	52
Residential real estate	3,938	3,777
Commercial	3,325	2,574
Construction of commercial		77
Farm land
Vacant land	39	42
Real estate secured	7,302	6,470
Commercial and industrial	482	16
Consumer	31	21
Totals	7,815	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	201	276
Home equity lines of credit	20
Residential real estate	221	276
Commercial	248	409
Construction of commercial
Farm land
Vacant land	2	5
Real estate secured	471	690
Commercial and industrial	174	2
Consumer	18	1
Totals	663	693
Impaired Loans Specific Allowance Loan Income Recognized [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	72	162
Home equity lines of credit
Residential real estate	72	162
Commercial	132	90
Construction of commercial
Farm land
Vacant land		3
Real estate secured	204	255
Commercial and industrial	4	4
Consumer	2
Totals	210	259
Impaired Loans No Specific Allowance Loan Balance Book [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	2,299	2,318
Home equity lines of credit	79	105
Residential real estate	2,378	2,423
Commercial	2,590	1,024
Construction of commercial
Farm land	158	186
Vacant land	130	139
Real estate secured	5,256	3,772
Commercial and industrial	70	33
Consumer
Totals	5,326	3,805
Impaired Loans No Specific Allowance Loan Balance Note [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	2,676	3,081
Home equity lines of credit	117	450
Residential real estate	2,793	3,531
Commercial	3,203	1,733
Construction of commercial
Farm land	319	329
Vacant land	145	157
Real estate secured	6,460	5,750
Commercial and industrial	283	188
Consumer
Totals	6,743	5,938
Impaired Loans No Specific Allowance Loan Balance Average [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	1,993	2,940
Home equity lines of credit	103	391
Residential real estate	2,096	3,331
Commercial	1,139	1,747
Construction of commercial		39
Farm land	173	203
Vacant land	134	143
Real estate secured	3,542	5,463
Commercial and industrial	58	265
Consumer		3
Totals	3,600	5,731
Impaired Loans No Specific Allowance Loan Income Recognized [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Residential	27	52
Home equity lines of credit
Residential real estate	27	52
Commercial	91	54
Construction of commercial
Farm land
Vacant land	9	10
Real estate secured	127	116
Commercial and industrial	2	4
Consumer
Totals	$ 129	$ 120

NOTE 4 - LOANS (Details Narrati

NOTE 4 - LOANS (Details Narrative) - USD ($)	2 Months Ended	12 Months Ended
	Feb. 28, 2021	Dec. 31, 2020	Dec. 31, 2019
Receivables [Abstract]
Other Real Estate, Covered		$ 65,300,000	$ 67,000,000
SBA PPP loans processed	$ 34,000,000	100,000,000
Interest and Fee Income, Other Loans		683,000
Loans and Leases Receivable, Fees Earned but Excluded from Yield		$ 1,400,000

assets and liabilities as well

assets and liabilities as well as the costs of operating and finance leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Liabilities
Operating leases	$ 261	$ 255
Amortization of leased assets	101	200
Interest on finance leases	141	173
Total lease cost	$ 503	$ 628
Weighted Average Remaining Lease Term
Operating leases	7 years 219 days	8 years 69 days 8 hours 24 minutes
Financing leases	14 years 73 days	15 years 36 days 12 hours
Weighted Average Discount Rate 1
Operating leases	3.67%	3.70%
Financing leases	8.37%	8.41%
Assets And Liabilities [Member]
Assets
Operating	$ 1,182	$ 1,360
Finance	1,402	1,503
Total Leased Assets	2,584	2,863
Liabilities
Operating	1,182	1,360
Finance	1,673	1,718
Total lease liabilities	$ 2,855	$ 3,078

schedule by years of the presen

schedule by years of the present value of the net minimum lease payments (Details) $ in Thousands	Dec. 31, 2020USD ($)
Operating Leases [Member]
Lessor, Lease, Description [Line Items]
2021	$ 250
2022	199
2023	148
2024	129
2025	137
Thereafter	516
Total future minimum lease payments	1,379
Capital Leases, Future Minimum Payments, Interest Included in Payments	(197)
Less amount representing interest	197
Total present value of net future minimum lease payments	1,182
Finance Leases [Member]
Lessor, Lease, Description [Line Items]
2021	192
2022	195
2023	197
2024	200
2025	203
Thereafter	1,777
Total future minimum lease payments	2,764
Capital Leases, Future Minimum Payments, Interest Included in Payments	(1,091)
Less amount representing interest	1,091
Total present value of net future minimum lease payments	$ 1,673

Balances of loans serviced for

Balances of loans serviced for others and the fair value of mortgage servicing rights (Details) - Derivative Financial Instruments, Assets [Member] - USD ($) $ in Thousands	Dec. 31, 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	$ 134,428	$ 106,255
Fair value of mortgage servicing rights	$ 762	$ 813

Changes in mortgage servicing r

Changes in mortgage servicing rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Mortgage Servicing Rights
Balance, beginning of period	$ 238	$ 228	$ 233
Originated	534	61	43
Amortization (1)	(151)	(51)	(48)
Balance, end of period	621	238	228
Valuation Allowance
Balance, beginning of period
Increase in impairment reserve (1)	(9)
Balance, end of period	(9)
Mortgage servicing rights, net	$ 612	$ 238	$ 228

The following securities and lo

The following securities and loans were pledged to secure public and trust deposits, securities sold under agreements to repurchase, FHLBB advances and credit facilities available (Details) - Guarantee Type, Other [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Guarantor Obligations [Line Items]
Securities available-for-sale (at fair value)	$ 54,581	$ 52,845
Loans receivable (at book value)	420,415	434,329
Total pledged assets	$ 474,996	$ 487,174

NOTE 7 - PLEDGED ASSETS (Detail

NOTE 7 - PLEDGED ASSETS (Details Narrative)	Dec. 31, 2020USD ($)
Guarantees and Product Warranties [Abstract]
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value	$ 47,440,000
Pledged Assets Separately Reported, Securities Pledged for Repurchase Agreements, at Fair Value	7,120,000
Pledged Assets Separately Reported, Securities Pledged for Federal Home Loan Bank, at Fair Value	$ 20,000

components of premises and equi

components of premises and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Fixed assets in process	$ 789
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Land	2,762	$ 2,762
Buildings and improvements	14,886	14,878
Leasehold improvements	1,553	1,553
Finance leases	1,798	1,798
Furniture, fixtures, equipment and software	9,687	9,370
Fixed assets in process	4,838	768
Total cost	35,525	31,129
Accumulated depreciation and amortization	(15,170)	(13,744)
Bank premises and equipment, net	$ 20,355	$ 17,385

Changes in the carrying values

Changes in the carrying values of goodwill and intangible assets (Details) - Other Intangible Assets [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill (1)
Balance, beginning of period	$ 13,815	$ 13,815	$ 13,815
Additions
Impairment
Balance, end of period	13,815	13,815	13,815
Core deposit intangibles
Cost, beginning of period	5,881	5,881	5,881
Additions
Cost, end of period	5,881	5,881	5,881
Amortization, beginning of period	(4,886)	(4,498)	(4,044)
Amortization	(321)	(388)	(454)
Amortization, end of period	(5,207)	(4,886)	(4,498)
Core deposit intangibles, net	$ 674	$ 995	$ 1,383

Estimated annual amortization e

Estimated annual amortization expense of core deposit intangibles (Details) - USD ($) $ in Thousands	12 Months Ended						72 Months Ended
	Dec. 31, 2026	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2026
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
CDI amortization	$ 13	$ 25	$ 61	$ 128	$ 192	$ 255	$ 674

Scheduled maturities of time ce

Scheduled maturities of time certificates of deposit (Details) - Certificates of Deposit [Member] $ in Thousands	Dec. 31, 2020USD ($)
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
2021	$ 82,376
2022	30,560
2023	6,490
2024	7,995
2025	4,093
Total	$ 131,514

total amount and scheduled matu

total amount and scheduled maturities of time certificates of deposit in denominations of $250 thousand or more (Details) - Core Deposits [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Within three months	$ 4,045	$ 4,603
After three through six months	17,218	3,799
After six through twelve months	4,851	6,628
Over one year	12,581	6,750
Total	$ 38,695	$ 21,780

Securities sold under repurchas

Securities sold under repurchase agreements (Details) - Loans [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreements, ending balance	$ 7,116	$ 8,530
Repurchase agreements, average balance during period	7,986	4,913
Book value of collateral	12,632	9,031
Market value of collateral	$ 13,196	$ 9,246
Weighted average rate during period	0.25%	0.48%
Weighted average maturity	1 day	1 day

Federal Home Loan Bank of Bosto

Federal Home Loan Bank of Boston (“FHLBB”) advances (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
F H L B B Advances Total [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Overnight, total
2020, total		44,899
2021, total	4,984	5,988
2022, total	7,655
Total, amount	$ 12,639	$ 50,887
F H L B B Advances Rate [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Overnight, rate
2020, rate		2.14%
2021, rate	1.13%	2.45%
2022, rate	1.38%
Total, rate	1.29%	2.18%

NOTE 10 - DEPOSITS (Details Nar

NOTE 10 - DEPOSITS (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Brokered and reciprocal deposits included in certificates of deposit	$ 25,400,000	$ 8,000,000
Brokered money market accounts included in money market funds	$ 51,500,000	$ 66,000,000

NOTE 12 _ FEDERAL HOME LOAN B_3

NOTE 12 – FEDERAL HOME LOAN BANK OF BOSTON ADVANCES AND OTHER BORROWED FUNDS (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
	Dec. 31, 2015	Oct. 31, 2015	Dec. 31, 2020	Dec. 31, 2019
Additional available borrowing capacity, based on current capital stock levels			$ 255,500,000
Unused FHLBB line of credit included in additional available borrowing capacity			3,500,000
Reduction in available borrowing capacity from letters of credit provided to the Company			20,000,000	$ 18,000,000
Proceeds from Issuance of Trust Preferred Securities	$ 10,000,000
Related parties portion included in subordinated debentures issued in a private placement transaction	$ 100,000
Subordinated debentures			9,900,000	9,900,000
Remaining unamortized debt issuance costs included in subordinated debentures			$ 117,000	$ 141,000
Effective interest rate of subordinated debentures			6.25%	6.33%
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Other Addition		$ 380,000
Interest rate on private mortgage to purchase Sharon branch property			6.00%
Outstanding mortgage balance on Sharon branch property purchase			$ 208,000	$ 246,000

components of the income tax pr

components of the income tax provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Deferred (benefit) expense	$ (1,600)	$ (391)	$ (494)
Income tax provision	2,453	2,359	1,709
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Federal	3,487	2,406	1,986
State	566	344	217
Current provision	4,053	2,750	2,203
Federal	(1,335)	(317)	(455)
State	(265)	(74)	(39)
Deferred (benefit) expense	(1,600)	(391)	(494)
Income tax provision	$ 2,453	$ 2,359	$ 1,709

reconciliation of the expected

reconciliation of the expected federal statutory tax to the income tax provision (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax at statutory federal tax rate	21.00%	21.00%	21.00%
State tax, net of federal tax benefit	1.97%	1.58%	1.37%
Tax exempt income and dividends received deduction	(3.69%)	(3.82%)	(3.84%)
BOLI interest and gain	(1.60%)	(0.61%)	(1.35%)
Other	(0.64%)	(0.67%)	(0.95%)
Effective income tax rates	17.04%	17.48%	16.23%

components of Salisbury's net d

components of Salisbury's net deferred tax assets (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Valuation Allowance [Line Items]
Allowance for loan losses	$ 3,355	$ 2,174
Interest on non-performing loans	214	244
Accrued deferred compensation	517	493
Post-retirement benefits	11	11
Other real estate owned write-downs		30
Restricted stock awards	196	220
Deferred loan fees, net	90	0
Loss on equity securities		2
Other	98	139
Gross deferred tax assets	4,481	3,313
Deferred loan costs, net		(329)
Mark-to-market purchase accounting adjustments	(8)	(44)
Goodwill and core deposit intangible asset	(590)	(570)
Accelerated depreciation	(522)	(703)
Gain on equity securities	(2)
Mortgage servicing rights	(150)	(58)
Net unrealized holding gains on available-for-sale securities	(797)	(360)
Gross deferred tax liabilities	(2,069)	(2,064)
Net deferred tax asset	$ 2,412	$ 1,249

Actual regulatory capital posit

Actual regulatory capital position and minimum capital requirements (Details) $ in Thousands	Dec. 31, 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	$ 127,254	$ 114,421
Banking Regulation, Total Risk-Based Capital Ratio, Actual	0.1357	0.1284
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 75,037	$ 71,278
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.080	0.080
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 98,486	$ 93,553
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	0.105	0.105
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 93,796	$ 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	$ 115,503	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	0.1231	0.1183
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 56,278	$ 53,459
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.060	0.060
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 79,727	$ 75,733
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	0.085	0.085
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 75,037	$ 71,278
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	0.080	0.080
Common Equity Tier 1 Capital (to risk-weighted assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 115,503	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	0.1231	0.1183
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 42,208	$ 40,094
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.045	0.045
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 65,657	$ 62,368
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	0.070	0.070
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 60,967	$ 57,914
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	0.065	0.065
Tier 1 Capital (to average assets)
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Banking Regulation, Total Capital, Actual	$ 115,503	$ 105,430
Banking Regulation, Total Risk-Based Capital Ratio, Actual	0.0890	0.0960
Banking Regulation, Total Risk-Based Capital, Capital Adequacy, Minimum	$ 51,907	$ 43,944
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum	0.040	0.040
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferAmount-0]	$ 51,907	$ 43,944
[custom:TotalCapitalMinimumCapitalRequiredForCapitalAdequacyPlusRequiredCapitalConservationBufferRatio-0]	0.040	0.040
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum	$ 64,884	$ 54,930
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum	0.050	0.050

NOTE 15 _ OTHER BENEFITS (Detai

NOTE 15 – OTHER BENEFITS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Defined Contribution Plan, Administrative Expense	$ 900,000	$ 900,000	$ 1,000,000
Employee Stock Ownership Plan (ESOP), Compensation Expense	263,000	285,000	358,000
Total liability for endorsement split-dollar life insurance arrangements included in other liabilities	771,000	765,000
Benefit adjustment on future postretirement benefit obligations under endorsement split-dollar life insurance arrangements		328,000
Offsetting expense on future postretirement benefit obligations under endorsement split-dollar life insurance arrangements		101,000
Net credit to expense future postretirement benefit obligations under endorsement split-dollar life insurance arrangements		227,000
[custom:DefinedContributionPlanEmployerDiscretionaryContributionAmount1]	26,000		7,000
Former CEO supplemental post retirement payment liability	312,000	358,000
Expenses related to Non-Qualified Deferred Compensation Plan	$ 135,000	$ 114,000	$ 115,000

amount of cumulatively granted

amount of cumulatively granted restricted stock awards under the 2011 and 2017 Long-Term Incentive Plans (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards, beginning of year	39,626	39,434
Weighted average grant price, beginning of year	$ 41.04	$ 37.73
Restricted stock awards, granted	15,475	15,130
Weighted average grant price, granted	$ 35.82	$ 39.70
Restricted stock awards, vested	(13,776)	(14,228)
Weighted average grant price, vested	$ 39.71	$ 30.33
Restricted stock awards, forfeited	(1,200)	(710)
Weighted average grant price, forfeited	$ 41.25	$ 42.81
Restricted stock awards, end of year	40,125	39,626
Weighted average grant price, end of year	$ 39.44	$ 41.04

amount of cumulatively grante_2

amount of cumulatively granted performance based restricted stock units awarded under the 2017 Long-Term Incentive Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards, beginning of year	6,800	0
Weighted average grant price, beginning of year	$ 41.20	$ 0
Restricted stock awards, granted	7,250	6,800
Weighted average grant price, granted	$ 36.36	$ 41.20
Restricted stock awards, vested	0	0
Weighted average grant price, vested	$ 0	$ 0
Restricted stock awards, forfeited	(350)	0
Weighted average grant price, forfeited	$ 41.20	$ 0
Restricted stock awards, forfeited	350	0
Restricted stock awards, end of year	13,700	6,800
Weighted average grant price, end of year	$ 38.64	$ 41.20

NOTE 16 - LONG TERM INCENTIVE_3

NOTE 16 - LONG TERM INCENTIVE PLANS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Total number of shares available under Long Term Incentive Plan	84,000
Maximum number of shares available for issue in any one calendar year pursuant to Awards	30,000
Total number of shares that may be awarded as Incentive Stock Options	42,000
Total shares that may be issued as Directors Stock Retainer Awards	15,000
Annual stock retainer, individual director maximum	340
[custom:TotalSharesAvailableForIssuanceForAwardsUnder2017LTIP]	200,000
[custom:TotalSharesAvailableForIssuanceForAwardsUnder2017LTIPExerciseOfStockOptions]	200,000
[custom:TotalSharesAvailableForIssuanceForAwardsUnder2017LTIPIssuedAsRestrictedStock]	150,000
Shares of restricted stock granted pursuant to 2011 and 2017 LTIP to certain employees and Directors	15,475	15,130	13,210
Fair value at grant date of restricted stock granted pursuant to 2011 and 2017 LTIP	$ 554,000	$ 601,000	$ 585,000
Fair value of vested restricted stock awards	464,000	556,000	0
Compensation expense for restricted stock awards	525,000	491,000	447,000
Unrecognized compensation cost relating to awards	774,000	795,000	711,000
Tax benefit associated with restricted stock awards, recognized in earnings	95,000	88,000	$ 87,000
Phantom Stock Appreciation Units granted pursuant to the Plan			53,500
Compensation expense related to PSUs	$ 141,000	$ 414,000	$ 171,000
Performance-based restricted stock units pursuant to 2017 Long-Term Incentive Plan, granted	7,250	6,800
Performance-based restricted stock units pursuant to 2017 Long-Term Incentive Plan, fair value	$ 264,000	$ 280,000
Performance-based restricted stock units pursuant to 2017 Long-Term Incentive Plan, compensation expense	221	70
Short Term Incentive Plan expense, included in compensation expenses	$ 941,000	$ 888,000	$ 758,000

Salisbury issued stock options

Salisbury issued stock options in conjunction with its acquisition of Riverside Bank in 2014. The table below reflects the remaining outstanding options related to this transaction and presents a summary of the status of Salisbury's outstanding stock opti (Details) - Outstanding Stock Options [Member] - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of options, beginning of period	17,820	22,545
Weighted average exercise price, beginning of period	$ 17.04	$ 17.04
Number of options, granted
Weighted average exercise price, granted
Number of options, exercised	(3,105)	(4,725)
Weighted average exercise price, exercised	$ 17.04	$ 17.04
Number of options, forfeited or expired
Weighted average exercise price, forfeited or expired
Number of options, end of period	14,715	17,820
Weighted average exercise price, end of period	$ 17.04	$ 17.04
Weighted average remaining contractual term, end of period	3 years	4 years
Aggregate intrinsic value, end of period	$ 297,684	$ 510,187

NOTE 17 _ STOCK OPTIONS (Detail

NOTE 17 – STOCK OPTIONS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 78	$ 125	$ 160

Changes in loans to executive o

Changes in loans to executive officers, directors and their related associates (Details) - Equity Method Investee [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties, Beginning Balance	$ 10,655	$ 9,432
Loans and Leases Receivable, Related Parties, Additions	2,407	8,010
Repayment of Notes Receivable from Related Parties	(3,645)	(6,787)
Loans and Leases Receivable, Related Parties, Ending Balance	$ 9,417	$ 10,655

reconciliation of the changes i

reconciliation of the changes in the components of other comprehensive income (loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale	$ 2,280	$ 2,258	$ (202)
Unrealized gains (losses) on securities available-for-sale	2,084	1,995	(520)
Other comprehensive income (loss)	1,647	1,577	(415)
Other Comprehensive Income (Loss) [Member]
Other comprehensive income (loss)
Net unrealized gains (losses) on securities available-for-sale	2,280	2,258	(202)
Reclassification of net realized gains in net income (1)	(196)	(263)	(318)
Unrealized gains (losses) on securities available-for-sale	2,084	1,995	(520)
Income tax (expense) benefit	(437)	(418)	105
Unrealized gains (losses) on securities available-for-sale, net of tax	1,647	1,577	(415)
Other comprehensive income (loss)	$ 1,647	$ 1,577	$ (415)

components of accumulated other

components of accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Unrealized gains on securities available-for-sale, net of tax	$ 3,004	$ 1,357
Accumulated other comprehensive income	$ 3,004	$ 1,357

NOTE 19 _ OTHER COMPREHENSIVE_3

NOTE 19 – OTHER COMPREHENSIVE INCOME (LOSS) (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Income tax expense related to reclassification of net realized gains	$ 41	$ 55	$ 67

As of December 31, 2020, the fo

As of December 31, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Loans receivable, cumulative amount of fair value hedging adjustment included in carrying amount of hedged assets	$ (4)
Total, cumulative amount of fair value hedging adjustment included in carrying amount of hedged assets	(4)
Hedged Assets Liabilities Carrying Amount [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loans receivable (1)	9,996
Total	$ 9,996

fair value of Salisbury_s deriv

fair value of Salisbury’s derivative financial instrument and its classification on the Balance Sheet (Details) $ in Thousands	Dec. 31, 2020USD ($)
Notional Amount [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Rate Products	$ 10,000
Derivative Instrument Fair Value [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest Rate Products	4
Total Derivatives designated as hedge instruments	$ 4

effect of the Company_s derivat

effect of the Company’s derivative financial instruments on the Income Statement (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2020USD ($)
Interest Income Derivative Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
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	$ 1
Hedged items	(4)
Derivatives designated as hedging instruments	5
Interest Expense Derivative Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
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
Hedged items
Derivatives designated as hedging instruments

NOTE 20 _ DERIVATIVES AND HED_3

NOTE 20 – DERIVATIVES AND HEDGING ACTIVITIES (Details Narrative)	Dec. 31, 2020USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amortized cost basis of closed portfolios used in hedging relationships	$ 48,300,000
Cumulative basis adjustment associated with hedging relationships	4,000
Amount of designated hedged item	10,000,000
Minimum amount of posted collateral for Credit-Risk Related Contingent Features agreement	250,000
Fair value of derivative in a net asset position related to Credit-Risk Related Contingent Features agreement	$ 4,000

NOTE 21 - COMMITMENTS AND CON_2

NOTE 21 - COMMITMENTS AND CONTINGENT LIABILITIES (Details Narrative)	12 Months Ended
	Dec. 31, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimated construction cost of operations center	$ 5,600,000
Outstanding commitment to a construction company for in-progress construction	$ 789,000

Financial instruments with off-

Financial instruments with off-balance sheet credit risk (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Letters of credit	$ 4,800,000	$ 4,700,000
Performing Financial Instruments [Member]
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Residential	11,661,000	5,815,000
Home equity lines of credit	28,919,000	28,160,000
Commercial	10,103,000	14,858,000
Land	566,000	1,014,000
Real estate secured	51,249,000	49,847,000
Commercial and industrial	94,854,000	78,286,000
Municipal	1,804,000	2,499,000
Consumer	2,077,000	2,148,000
Unadvanced portions of loans	149,984,000	132,780,000
Commitments to originate loans	49,753,000	33,781,000
Letters of credit	4,758,000	4,657,000
Total	$ 204,495,000	$ 171,218,000

NOTE 22 - FINANCIAL INSTRUMEN_3

NOTE 22 - FINANCIAL INSTRUMENTS (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Investments, All Other Investments [Abstract]
Maximum potential amount of Bank's obligation for financial, commercial and standby letters of credit	$ 4,800,000	$ 4,700,000
Allowance for off-balance sheet commitments	$ 118,000	$ 96,000

Assets measured at fair value (

Assets measured at fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
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	917	882
Derivative financial instruments
Assets at fair value on a non-recurring basis
Impaired loans carried at fair value
Other real estate owned
Fair Value, Inputs, Level 2 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes	7,851	4,644
Municipal bonds	27,617	27,193
U.S. Government agencies and U.S. Government-sponsored enterprises	36,573	29,357
U.S. Government agencies	17,454	25,499
Corporate bonds	8,916	5,108
Securities available-for-sale	98,411	91,801
CRA mutual funds
Derivative financial instruments	4
Assets at fair value on a non-recurring basis
Impaired loans carried at fair value
Other real estate owned
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
Derivative financial instruments
Assets at fair value on a non-recurring basis
Impaired loans carried at fair value		1,593
Other real estate owned		314
Fair Value, Inputs, Level 1, 2 and 3 [Member]
Assets at fair value on a recurring basis
U.S. Government Agency notes	7,851	4,644
Municipal bonds	27,617	27,193
U.S. Government agencies and U.S. Government-sponsored enterprises	36,573	29,357
U.S. Government agencies	17,454	25,499
Corporate bonds	8,916	5,108
Securities available-for-sale	98,411	91,801
CRA mutual funds	917	882
Derivative financial instruments	4
Assets at fair value on a non-recurring basis
Impaired loans carried at fair value		1,593
Other real estate owned		$ 314

Carrying values and estimated f

Carrying values and estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Cash and cash equivalents	$ 93,162	$ 26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale
CRA mutual fund	917	882
Federal Home Loan Bank of Boston stock	1,713	3,242
Loans held-for-sale
Loans receivable, net
Accrued interest receivable	6,373	3,415
Cash surrender value of life insurance policies	21,182	20,580
Derivative financial instruments
Financial Liabilities
Demand (non-interest-bearing)
Demand (interest-bearing)
Money market
Savings and other
Certificates of deposit
Deposits
Repurchase agreements
FHLBB advances
Subordinated debt	10,027	10,113
Note payable
Finance lease liability
Accrued interest payable	43	78
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Cash and cash equivalents
Interest bearing time deposits with financial institutions
Securities available-for-sale	98,411	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
Derivative financial instruments	4
Financial Liabilities
Demand (non-interest-bearing)	310,769	237,852
Demand (interest-bearing)	218,869	153,314
Money market	278,146	239,504
Savings and other	189,776	161,112
Certificates of deposit	132,875	128,629
Deposits	1,130,435	920,411
Repurchase agreements	7,116	8,530
FHLBB advances	12,786	51,028
Subordinated debt
Note payable	212	251
Finance lease liability
Accrued interest payable
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	2,790	334
Loans receivable, net	1,057,234	933,287
Accrued interest receivable
Cash surrender value of life insurance policies
Derivative financial instruments
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	1,920	1,967
Accrued interest payable
Reported Value Measurement [Member]
Financial Assets
Cash and cash equivalents	93,162	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale	98,411	91,801
CRA mutual fund	917	882
Federal Home Loan Bank of Boston stock	1,713	3,242
Loans held-for-sale	2,735	332
Loans receivable, net	1,027,738	927,413
Accrued interest receivable	6,373	3,415
Cash surrender value of life insurance policies	21,182	20,580
Derivative financial instruments	4
Financial Liabilities
Demand (non-interest-bearing)	310,769	237,852
Demand (interest-bearing)	218,869	153,314
Money market	278,146	239,504
Savings and other	189,776	161,112
Certificates of deposit	131,514	127,724
Deposits	1,129,074	919,506
Repurchase agreements	7,116	8,530
FHLBB advances	12,639	50,887
Subordinated debt	9,883	9,859
Note payable	208	246
Finance lease liability	1,673	1,718
Accrued interest payable	43	78
Estimate of Fair Value Measurement [Member]
Financial Assets
Cash and cash equivalents	93,162	26,885
Interest bearing time deposits with financial institutions	750	750
Securities available-for-sale	98,411	91,801
CRA mutual fund	917	882
Federal Home Loan Bank of Boston stock	1,713	3,242
Loans held-for-sale	2,790	334
Loans receivable, net	1,057,234	933,287
Accrued interest receivable	6,373	3,415
Cash surrender value of life insurance policies	21,182	20,580
Derivative financial instruments	4
Financial Liabilities
Demand (non-interest-bearing)	310,769	237,852
Demand (interest-bearing)	218,869	153,314
Money market	278,146	239,504
Savings and other	189,776	161,112
Certificates of deposit	132,875	128,629
Deposits	1,130,435	920,411
Repurchase agreements	7,116	8,530
FHLBB advances	12,786	51,028
Subordinated debt	10,027	10,113
Note payable	212	251
Finance lease liability	1,920	1,967
Accrued interest payable	$ 43	$ 78

Balance Sheets (Details)

Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 10,599	$ 7,406
Other assets	3,423	3,390
Total Assets	1,293,660	1,112,448
Liabilities and Shareholders' Equity
Subordinated debt	9,883	9,859
Shareholders' equity	124,752	113,655	$ 103,459	$ 97,514
Total Liabilities and Shareholders' Equity	1,293,660	1,112,448
Parent Company [Member]
Assets
Cash and due from banks	1,968	2,273
Investment in bank subsidiary	132,407	121,027
Other assets	273	252
Total Assets	134,648	123,552
Liabilities and Shareholders' Equity
Subordinated debt	9,883	9,859
Other liabilities	13	38
Shareholders' equity	124,752	113,655
Total Liabilities and Shareholders' Equity	$ 134,648	$ 123,552

Statements of Income (Details)

Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Net income	$ 11,940	$ 11,136	$ 8,824
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from subsidiary	3,787	3,546	3,529
Interest income	6	10	10
Interest expense	618	624	624
Non-interest expenses	495	417	435
Income before taxes and equity in undistributed net income of subsidiary	2,680	2,515	2,480
Income tax benefit	273	252	256
Income before equity in undistributed net income of subsidiary	2,953	2,767	2,736
Equity in undistributed net income of subsidiary	8,987	8,369	6,088
Net income	$ 11,940	$ 11,136	$ 8,824

Statements of Cash Flows (Detai

Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Financial Statements, Captions [Line Items]
Net income	$ 11,940	$ 11,136	$ 8,824
Adjustments to reconcile net income to net cash provided by operating activities:
Net cash provided by operating activities	13,803	14,330	13,277
Investing Activities
Net cash utilized by investing activities	(114,021)	(23,375)	(118,142)
Financing activities
Common stock dividends paid	(3,286)	(3,155)	(3,133)
Net cash utilized by financing activities	166,495	(22,515)	114,824
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income	11,940	11,136	8,824
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of subsidiary	(8,987)	(8,369)	(6,088)
Other	(25)	474	(239)
Net cash provided by operating activities	2,928	3,241	2,497
Investing Activities
Investment in bank
Net cash utilized by investing activities
Financing activities
Common stock dividends paid	(3,286)	(3,155)	(3,133)
Proceeds from issuance of common stock	53	82	222
Net cash utilized by financing activities	(3,233)	(3,073)	(2,911)
Net increase (decrease) in cash and cash equivalents	(305)	168	(414)
Cash and cash equivalents, beginning of period	2,273	2,105	2,519
Cash and cash equivalents, end of period	$ 1,968	$ 2,273	$ 2,105

calculation of earnings per sha

calculation of earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net income applicable to common shareholders	$ 11,940	$ 11,136	$ 8,824
Less: Undistributed earnings allocated to participating securities	(165)	(160)	(111)
Net income allocated to common stock	11,775	10,976	8,713
Weighted average common shares issued	2,837	2,817	2,798
Less: Unvested restricted stock awards	(39)	(35)	(35)
Weighted average common shares outstanding used to calculate basic earnings per common share	2,798	2,782	2,763
Add: Dilutive effect of stock options	8	12	17
Weighted average common shares outstanding used to calculate diluted earnings per common share	$ 2,806	$ 2,794	$ 2,780
Earnings per common share (basic)	$ 4.21	$ 3.95	$ 3.15
Earnings per common share (diluted)	$ 4.20	$ 3.93	$ 3.13

NOTE 26 _ SUBSEQUENT EVENTS (De

NOTE 26 – SUBSEQUENT EVENTS (Details Narrative) - USD ($)	2 Months Ended	12 Months Ended
	Feb. 28, 2021	Dec. 31, 2020	Jan. 27, 2021
Subsequent Events [Abstract]
Quarterly dividend approved			$ 0.29
SBA PPP loans processed	$ 34,000,000	$ 100,000,000