GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 8 — GOODWILL AND OTHER INTANGIBLE ASSETS

The Corporation through the acquisition of Peninsula in 2014, Eagle River and Niagara in 2016, and FFNM and Lincoln in 2018, has recorded goodwill and core deposit intangibles as presented below (dollars in thousands):

			Deposit Based
	Goodwill		Intangible
	Balance		Initital Balance
Peninsula	$	3,805	$	1,206
Eagle River		1,839		993
Niagara		50		300
FFNM		14,915		2,894
Lincoln		1,415		1,353
Total	$	22,024	$	6,746

	Deposit Based
	Intangible		2018		Future Annual
	December 31, 2018		Amortization		Amortization
	Balance		Expense		Expense
Peninsula	$	714	$	121	$	121
Eagle River		728		99		99
Niagara		230		30		30
FFNM		2,735		159		290
Lincoln		1,313		41		135
Total	$	5,720	$	450	$	675

	Deposit Based
	Intangible		2017
	December 31, 2017		Amortization
	Balance		Expense
Peninsula	$	835	$	120
Eagle River		827		99
Niagara		260		30
Total	$	1,922	$	249

The deposit based intangible is reported net of accumulated amortization at $5.720 million at December 31, 2018, compared to $1.922 million at December 31, 2017. Amortization expense in 2018 is $.450 million compared to $.249 million in 2017.  Amortization expense for the next five years is expected to be at $.675 million per year.