Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

6

:     

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company recorded

$1.4

million of goodwill as a result of its

2018

Hometown acquisition and the goodwill is

not

deductible for tax purposes. Goodwill is assessed annually, or more often if warranted, 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 value. Goodwill impairment was neither indicated nor recorded during

2019.

Subsequent increases in goodwill value are

not

recognized in the financial statements. Goodwill totaled

$

1.4

million as of

December 31, 2019

and

2018,

respectively.

Core deposit intangible 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

December 31, 2019

and

2018

were as follows:

	December 31,			December 31,
	2019			2018
	(in Thousands)			(in Thousands)
Goodwill	$	1,435		$	1,435
Core deposit intangible
Gross carrying amount		3,520			3,520
Accumulated amortization		(1,016	)		(539	)
Core deposit intangible, net		2,504			2,981
Remaining balance	$	3,939		$	4,416

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

December 31, 2019

is as follows:

	Amortization Expense
	(in Thousands)
Remainder of:	2020	$	477
	2021		477
	2022		477
	2023		477
	2024		477
	Therafter		119
	Total	$	2,504