GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2019

GOODWILL AND OTHER INTANGIBLE ASSETS

6.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		Initial Balance
Peninsula	$	3,805	$	1,206
Eagle River		1,839		993
Niagara		50		300
FFNM		12,628		2,894
Lincoln		1,252		1,353
Total	$	19,574	$	6,746


	Deposit Based
	Intangible		September 30, 2019		Future Annual
	September 30, 2019		Amortization		Amortization
	Balance		Expense		Expense
Peninsula	$	624	$	90	$	121
Eagle River		654		74		99
Niagara		208		23		30
FFNM		2,508		227		290
Lincoln		1,218		95		135
Total	$	5,212	$	509	$	675


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

The deposit based intangible asset is reported net of accumulated amortization at $5.212 million at September 30, 2019. Amortization expense in the first nine months of 2019 is $.509 million. Amortization expense for the next five years is expected to be at $.675 million per year.