GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE G – GOODWILL AND OTHER INTANGIBLE ASSETS

The table below summarizes the changes in carrying amounts of goodwill and other intangibles (core deposit intangibles) for the periods presented.

			Core Deposit Intangible
					Accumulated
	Goodwill		Gross		Amortization		Net

	(In thousands)
Balance at January 1, 2012	$	-	$	1,400	$	(855)	$	545
Impairment from branch sales		-		(131)		-		(131)
Amortization expense		-		-		(116)		(116)
Balance at December 31, 2012		-		1,269		(971)		298
Amortization expense		-		-		(116)		(116)
Balance at December 31, 2013		-		1,269		(1,087)		182
Goodwill and core deposit intangible resulting from merger		7,077		1,790		-		1,790
Amortization expense		-		-		(347)		(347)

Balance at December 31, 2014	$	7,077	$	3,059	$	(1,434)	$	1,625

Goodwill represents the excess of the purchase price over the fair value of acquired net assets under the acquisition method of accounting.

The value of acquired core deposit relationships was determined using the present value of the difference between a market participant's cost of obtaining alternative funds and the cost to maintain the acquired deposit base. The Company’s core deposit intangible is amortized using the effective yield method over six years. The gross amount of the core deposit intangible is $3.1 million with $1.5 million being amortized and impaired to date, leaving a remaining net balance of $1.6 million as of December 31, 2014.

The table below summarizes the remaining core deposit intangible amortization (dollars in thousands):

2015	$	540
2016		388
2017		302
2018		217
2019		132
Thereafter		46

	$	1,625

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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