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). During 2019, the Corporation recorded period adjustments to both FFNM and Lincoln goodwill as it concluded its business combination and purchase accounting. Adjustments for the FFNM transaction resulted in an increase in the deferred tax asset of $1.950 million, an increase to MSRs of $.500 million and a decrease in goodwill of $2.450 million. Adjustments for the Lincoln transaction resulted in a decrease in the deferred tax liability of $.163 million, and a corresponding decrease in goodwill.


			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		December 31, 2019		Future Annual
	December 31, 2019		Amortization		Amortization
	Balance		Expense		Expense
Peninsula	$	594	$	121	$	121
Eagle River		629		99		99
Niagara		200		30		30
FFNM		2,436		299		290
Lincoln		1,184		128		135
Total	$	5,043	$	677	$	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 is reported net of accumulated amortization at $5.043 million at December 31, 2019, compared to $5.720 million at December 31, 2018. Amortization expense in 2019 is $.677 million compared to $.450 million in 2018. Amortization expense for the next five years is expected to be at $.675 million per year.