GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying values of goodwill and intangible assets were as follows:

Years ended December 31, (in thousands)		2014			2013			2012
Goodwill (1)
Balance, beginning of period	$	9,829		$	9,829		$	9,829
Additions		2,723			—			—
Impairment		—			—			—
Balance, end of period	$	12,552		$	9,829		$	9,829
Core Deposit Intangibles
Cost, beginning of period	$	2,543		$	2,543		$	2,543
Union Savings branch purchase		490			—			—
Riverside Bank merger		2,215			—			—
Impairment		—			—			—
Cost, end of period		5,248			2,543			2,543
Amortization, beginning of period		(1,967	)		(1,745	)		(1,523	)
Amortization		(291	)		(222	)		(222	)
Amortization, end of period		(2,258	)		(1,967	)		(1,745	)
Core deposit intangibles, net	$	2,990		$	576		$	798

(1) Not subject to amortization.

In June 2014, Salisbury acquired the Sharon, Connecticut branch office of Union Savings Bank, and assumed approximately $18.2 million in deposits and acquired approximately $0.1 million in loans. Salisbury realized no goodwill and assigned a core deposit intangible of $490,000 to the acquisition. In December 2014, Salisbury acquired Riverside Bank of Poughkeepsie, NY, and assumed approximately $211.2 million in deposits and acquired approximately $196.3 million in loans, and a property located at 11 Garden Street, Poughkeepsie, NY. Salisbury realized goodwill of $2.7 million and assigned a core deposit intangible of $2.2 million to the acquisition.

Salisbury evaluated its goodwill and intangible assets as of December 31, 2014 and 2013, and found no impairment.

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 is as follows:

Years ended December 31, (in thousands)	CDI amortization
2015	$    652
2016	601
2017	461
2018	342
2019	288
2020	234
2021	180
2022	130
2023	78
2024	24