GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2020

GOODWILL AND OTHER INTANGIBLE ASSETS

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		Amortization Expense
	Intangible		for the		Future Annual
	September 30, 2020		nine months ended		Amortization
	Balance		September 30, 2020		Expense
Peninsula	$	503	$	90	$	121
Eagle River		554		74		99
Niagara		178		23		30
FFNM		2,219		217		290
Lincoln		1,083		102		135
Total	$	4,537	$	506	$	675

	Deposit Based
	Intangible		2019
	December 31, 2019		Amortization
	Balance		Expense
Peninsula	$	594	$	121
Eagle River		629		99
Niagara		200		30
FFNM		2,436		299
Lincoln		1,184		128
Total	$	5,043	$	677

The deposit based intangible asset is reported net of accumulated amortization at $4.537 million at September 30, 2020. Amortization expense in the first nine months of 2020 is $.506 million. Amortization expense for the next five years is expected to be at $.675 million per year.

The Corporation, in accordance with GAAP, evaluates goodwill annually for impairment. As a result of the current economic uncertainty and volatility surrounding COVID-19, the Corporation performed an interim analysis during the third quarter of 2020. The Corporation determined that there is currently no impairment of its goodwill.