GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

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)		2016			2015			2014
Goodwill (1)
Balance, beginning of period	$	12,552		$	12,552		$	9,829
Additions		—			—			2,723
Impairment		—			—			—
Balance, end of period	$	12,552		$	12,552		$	12,552
Core Deposit Intangibles
Cost, beginning of period	$	5,248		$	5,248		$	2,543
Union Savings branch purchase		—			—			490
Riverside Bank merger		—			—			2,215
Impairment		—			—			—
Cost, end of period		5,248			5,248			5,248
Amortization, beginning of period		(2,910	)		(2,258	)		(1,967	)
Amortization		(601	)		(652	)		(291	)
Amortization, end of period		(3,511	)		(2,910	)		(2,258	)
Core deposit intangibles, net	$	1,737		$	2,338		$	2,990

(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 $63,000 in loans secured by deposits. 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, which had approximately $211.2 million in deposits and $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 performed an evaluation of its goodwill and intangible assets during 2016. There was no impairment recognized as of December 31, 2016 or 2015.

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
	2017	$	461
	2018		342
	2019		288
	2020		234
	2021		180
	2022		130
	2023		78
	2024		24