Note

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 impairment was neither indicated nor recorded during the

three

and

nine

months ended

September 30, 2019.

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.

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. As of

September 30, 2019,

$2.6

million of core deposit intangible amounts are still to be amortized.

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

September 30, 2019

and

December 31, 2018

were as follows:

	September 30,			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		(897	)		(539	)
Core deposit intangible, net		2,623			2,981
Remaining balance	$	4,058		$	4,416

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

September 30, 2019

is as follows:

	Amortization Expense
	(in Thousands)

Remainder of:	2019	$	119
	2020		477
	2021		477
	2022		477
	2023		477
	Therafter		596
	Total	$	2,623