NOTE 9 - GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9 - GOODWILL AND INTANGIBLE ASSETS

NOTE 9 - GOODWILL AND INTANGIBLE ASSETS

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

Years ended December 31, (in thousands)		2021			2020			2019
Goodwill (1)
Balance, beginning of period	$	13,815		$	13,815		$	13,815
Additions		—			—			—
Impairment		—			—			—
Balance, end of period	$	13,815		$	13,815		$	13,815
Core deposit intangibles
Cost, beginning of period	$	5,881		$	5,881		$	5,881
Additions		—			—			—
Cost, end of period		5,881			5,881			5,881
Amortization, beginning of period		(5,207	)		(4,886	)		(4,498	)
Amortization		(256	)		(321	)		(388	)
Amortization, end of period		(5,463	)		(5,207	)		(4,886	)
Core deposit intangibles, net	$	418		$	674		$	995

(1) Not subject to amortization.

Management evaluates goodwill and identifiable intangible assets for impairment at least annually using valuation techniques that involve observations and adjustments as to comparable transactions, estimates for discount rates, projected future cash flows and time period calculations, all of which are susceptible to change based on changes in economic conditions and other factors. During fiscal year 2021, management evaluated several qualitative factors including macroeconomic conditions, the Bank’s financial performance and the short-term volatility in Salisbury’s share price and concluded that it was not more likely than not that goodwill was impaired. Salisbury performed its annual quantitative impairment analysis as of November 30, 2021, consistent with the prior year. As a result of the analysis, management concluded that goodwill and other intangible assets were not impaired as of November 30, 2021. No impairment charges were recognized in 2021 or 2020.

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 as of December 31, 2021:

December 31,		CDI amortization (in thousands)
	2022		192
	2023		128
	2024		61
	2025		25
	2026		11
	2027 and thereafter		1
	Total	$	418