Note

Goodwill and Other Intangible Assets

The Company recorded

$2.6

million of goodwill as a result of its

2018

Hometown acquisition and the goodwill is

not

deductible for tax purposes. Goodwill impairment was neither indicated nor recorded during the

three

months ended

June 30, 2018.

Goodwill is tested annually, or more often if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are

not

recognized in the financial statements. Goodwill totaled

$2.6

million at

June 30, 2018.

Core deposit premiums are amortized over a

seven

year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Core deposit premiums of

$3.5

million were recorded during the

second

quarter of

2018

as part of the Hometown acquisition.

The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) at

June 30, 2018

were as follows:

	June 30,
	2018
	(In Thousands)
Goodwill	$	2,615
Core deposit intangible:
Gross carrying amount		3,520
Accumulated amortization		(220	)
Core deposit intangible, net		3,300
Outstanding balance	$	5,915

The Company’s estimated remaining amortization expense on intangibles as of

June 30, 2018

is as follows:

	Amortizaton Expense
	(In Thousands)
Remainder of 2018	$	440
2019		785
2020		661
2021		534
2022		409
2023		282
Thereafter		189
Total	$	3,300