Note 6 - Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

6

–

GOODWILL AND INTANGIBLE ASSETS

The following table summarizes the Corporation's acquired goodwill and intangible assets as of

June 30, 2020.

There were

no

goodwill or intangible assets as of

June 30, 2019.

	June 30, 2020
	Gross Carrying Amount		Accumulated Amortization
Goodwill	$	836	$	—
Core deposit intangible		270		14
Total	$	1,106	$	14

Goodwill and the core deposit intangible assets resulted from the acquisition of Peoples (see Note

2

). Goodwill represents the excess of the total purchase price paid for the acquisition over the fair value of the identifiable assets acquired, net of the fair value of the liabilities assumed. Goodwill is

not

amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset might be impaired. Impairment exists when a reporting unit's carrying amount exceeds its fair value. For the goodwill impairment analysis, the Corporation is the only reporting unit. Management performed a quantitative impairment test of the Corporation's goodwill during the

fourth

quarter of fiscal year

2020.

Based on this test, management concluded that the Corporation's goodwill was

not

impaired at

June 30, 2020.

Goodwill is the only intangible asset on the Corporation's balance sheet with an indefinite life.

The core deposit intangible asset is amortized on a straight-line basis over

ten

years. The Corporation recorded intangible amortization expense of

$14

in

2020

and expects to record

$28

per year for each of the next

five

fiscal years and

$116

thereafter.