16.

GOODWILL AND INTANGIBLE ASSETS

Goodwill:

The change in goodwill during the periods presented is as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Beginning of the year	$	20,221	$	208
Effect of adjustments-James & Sons Insurance		—		636
Acquired goodwill-OLCB		—		19,168
Acquired goodwill-Eich Brothers Insurance		—		209
Impairment	—		—
End of the year	$	20,221	$	20,221

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. If the carrying amount of a reporting unit is zero or less than zero, a qualitative analysis of whether it is more likely than not that the reporting unit goodwill is impaired will be performed. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. The Company did not have any reporting units with a carrying amount of zero or less than zero at September 30, 2018 or December 31, 2017.

Acquired Intangible Assets:

	September 30, 2018				December 31, 2017
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
	(In thousands)
Amortized intangible assets:
Core deposit intangibles	$	11,184	$	9,498	$	11,184	$	9,250
Customer list intangible		2,547		288		2,222		162
Total	$	13,731	$	9,786	$	13,406	$	9,412

On July 1, 2018, HSB Insurance, LLC acquired certain assets of Steinhauser Insurance Agency, which increased the customer list intangible gross carrying amount by $325,000. Aggregate amortization expense for the three months ended September 30, 2018 and 2017 was $128,000 and $113,000, respectively. Aggregate amortization expense for the nine months ended September 30, 2018 and 2017 was $373,000 and $308,000, respectively. Estimated amortization expense for the remainder of 2018 and the next five years is as follows:

Remainder of 2018	$	128,000
2019		510,000
2020		510,000
2021		510,000
2022		510,000
2023		399,000