GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

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)		2018			2017			2016
Goodwill (1)
Balance, beginning of period	$	13,815		$	12,552		$	12,552
Additions		—			1,263			—
Impairment		—			—			—
Balance, end of period	$	13,815		$	13,815		$	12,552
Core Deposit Intangibles
Cost, beginning of period	$	5,881		$	5,248		$	5,248
Additions		—			633			—
Impairment		—			—			—
Cost, end of period		5,881			5,881			5,248
Amortization, beginning of period		(4,044	)		(3,511	)		(2,910	)
Amortization		(454	)		(533	)		(601	)
Amortization, end of period		(4,498	)		(4,044	)		(3,511	)
Core deposit intangibles, net	$	1,383		$	1,837		$	1,737

(1) Not subject to amortization.

In June 2017, Salisbury acquired the New Paltz, New York branch of Empire State Bank, and assumed approximately $31.4 million in deposits and acquired approximately $7.1 million in loans. Salisbury realized goodwill in the amount of $1.26 million and a core deposit intangible of $633,000 as a result of this acquisition. Salisbury did not recognize any goodwill or a core deposit intangible as a result of its acquisition of the Fishkill, New York branch from Orange Bank and Trust Company in April 2018.

Salisbury performed an evaluation of its goodwill and intangible assets as of December 31, 2018. There was no impairment recognized during 2018 or 2017.

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:

December 31, (in thousands)		CDI amortization
	2019	$	388
	2020		321
	2021		255
	2022		192
	2023		128
	2024		61
	2025		25
	2026		13