NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

cumulative basis adjustment for fair value hedges

As of September 30, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included		Carrying Amount of the Hedged Assets/(Liabilities)						Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(in thousands)	September 30, 2020			December 31, 2019			September 30, 2020			December 31, 2019
Loans receivable(1)		$	10,003		$	—		$	3		$	—
Total		$	10,003		$	—		$	3		$	—

⁽¹⁾ These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At September 30, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $52.8 million; the cumulative basis adjustment associated with these hedging relationships was $3 thousand; and the amount of the designated hedged item was $10.0 million. Salisbury did not use derivatives as a fair value hedge prior to third quarter 2020.

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Line Item in the Statement of Financial Position in Which the Hedged Item is Included		Carrying Amount of the Hedged Assets/(Liabilities)						Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(in thousands)	September 30, 2020			December 31, 2019			September 30, 2020			December 31, 2019
Loans receivable(1)		$	10,003		$	—		$	3		$	—
Total		$	10,003		$	—		$	3		$	—

⁽¹⁾ These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At September 30, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $52.8 million; the cumulative basis adjustment associated with these hedging relationships was $3 thousand; and the amount of the designated hedged item was $10.0 million. Salisbury did not use derivatives as a fair value hedge prior to third quarter 2020.

fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet

The table below presents the fair value of Salisbury's derivative financial instrument and its classification on the Balance Sheet as of September 30, 2020. Salisbury did not use derivative financial instruments prior to third quarter 2020.

	As of September 30, 2020
(in thousands)	Notional Amount		Balance Sheet Location	Fair Value
Derivatives designated as hedge instruments
Interest Rate Products	$	10,000	Other liabilities	$	3
Total Derivatives designated as hedge instruments				$	3

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	As of September 30, 2020
(in thousands)	Notional Amount		Balance Sheet Location	Fair Value
Derivatives designated as hedge instruments
Interest Rate Products	$	10,000	Other liabilities	$	3
Total Derivatives designated as hedge instruments				$	3

effect of the Company's derivative financial instruments on the Income Statement

The table below presents the effect of the Company's derivative financial instruments on the Income Statement as of September 30, 2020. Salisbury did not use derivative financial instruments prior to third quarter 2020.

	Three months ended September 30, 2020
(in thousands)	Interest Income			Interest Expense
Total amounts of income and expense line items presented in the
statement of financial performance in which the effects of fair value or
cash flow hedges are recorded	$	—		$	—
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedged items		3			—
Derivatives designated as hedging instruments	$	(3	)	$	—

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	Three months ended September 30, 2020
(in thousands)	Interest Income			Interest Expense
Total amounts of income and expense line items presented in the
statement of financial performance in which the effects of fair value or
cash flow hedges are recorded	$	—		$	—
Gain or (loss) on fair value hedging relationships in Subtopic 815-20
Interest contracts
Hedged items		3			—
Derivatives designated as hedging instruments	$	(3	)	$	—