Note 6 - Goodwill and Acquired Intangible Assets

12 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

6

–

GOODWILL AND ACQUIRED INTANGIBLE ASSETS

The change in goodwill was as follows:

	2021		2020
Beginning of year	$	836	$	—
Acquired goodwill		—		836
Ending balance as of June 30,	$	836	$	836

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

June 30, 2021

and

2020.

	June 30, 2021				June 30, 2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit intangible	$	270	$	41	$	270	$	14

Goodwill and the core deposit intangible assets resulted from the acquisition of Peoples that was completed on

January 1, 2020.

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 qualitative impairment test of the Corporation's goodwill during the

fourth

quarter of the

2021

fiscal year. Based on this test, management concluded that it was more likely than

not

that the fair value of the reporting unit exceeded its carrying value, resulting in

no

impairment. 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

$27

in

2021

and

$14

in

2020.

The intangible amortization expense for the core deposit intangible asset recorded as of

June 30, 2021

is expected to be

$27

per year for each of the next

five

fiscal years and

$94

thereafter. The core deposit intangible asset that will be recorded for the

two

branches that were purchased and closed on

July 16, 2021

will impact these numbers.