NOTE 7 - DERIVATIVES AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges

As of March 31, 2021, 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)		March 31, 2021		December 31, 2020		March 31, 2021			December 31, 2020
Loans receivable(1)	$	9,993	$	9,996	$	(7	)	$	(4	)
Total	$	9,993	$	9,996	$	(7	)	$	(4	)

(1) These amounts include the amortized cost basis of closed portfolios used in designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At March 31, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $44.7 million; the cumulative basis adjustment associated with these hedging relationships was $7 thousand; and the amount of the designated hedged item was $10.0 million.

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 March 31, 2021 and December 31, 2020.

	As of March 31, 2021					As of December 31, 2020
(in thousands)	Notional Amount		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedge instruments
Interest Rate Products	$	10,000	Other assets	$	7	Other Assets	$	4
Total Derivatives designated as hedge instruments				$	7		$	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 three months ended March 31, 2021. Salisbury did not use derivatives prior to fourth quarter 2020.

	Three months ended March 31, 2021
(in thousands)	Interest Income			Interest Expense
Total amounts of interest income and expense line items presented in the income statement 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		(2	)		-
Derivatives designated as hedging instruments	$	3		$	-