GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill and certain other intangible assets with indefinite useful lives are not amortized into net income over an estimated life, but rather are tested at least annually for impairment. Intangible assets determined to have definite useful lives are amortized over their estimated useful lives and also are subject to impairment testing.

Effective July 1, 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test

for Goodwill Impairment which simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from

the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The adoption of ASU 2017-04 had no impact on our consolidated financial statements.

During third quarter 2018, we performed the qualitative assessment of the goodwill of our community banking and insurance services reporting units and determined that the fair values of the reporting units were more likely than not greater than their carrying values. In performing the qualitative assessments, we considered certain events and circumstances specific to each reporting unit, such as macroeconomic conditions, industry and market considerations, overall financial performance and cost factors when evaluating whether it is more likely than not that the fair values of our community banking or insurance services reporting units are less than their carrying values. No indicators of impairment for either reporting unit were noted as of September 30, 2018.

The following table presents our goodwill activity by reporting unit for 2018.



	Goodwill Activity
Dollars in thousands	Community Banking		Insurance Services		Total
Balance, January 1, 2018	$	10,562	$	4,710	$	15,272
Reclassifications to goodwill	—		—		—
Acquired goodwill, net	—		—		—
Balance, December 31, 2018	$	10,562	$	4,710	$	15,272

In addition, at December 31, 2018 and December 31, 2017, we had $10.57 million and $12.24 million in unamortized identified intangible assets comprised of $9.80 million core deposit intangible and $700,000 customer intangible at December 31, 2018 and $11.27 million core deposit intangible and $900,000 customer intangible at December 31, 2017.



	Other Intangible Assets
	December 31, 2018						December 31, 2017
Dollars in thousands	Community Banking		Insurance Services		Total		Community Banking		Insurances Services		Total
Identified intangible assets
Gross carrying amount	$	12,598	$	3,000	$	15,598	$	12,598	$	3,000	$	15,598
Less: accumulated amortization	2,728		2,300		5,028		1,257		2,100		3,357
Net carrying amount	$	9,870	$	700	$	10,570	$	11,341	$	900	$	12,241

Amortization relative to our identified intangible assets is as follows:



	Core Deposit		Customer
Dollars in thousands	Intangible		Intangible
Actual:
2016	$	47	$	200
2017	1,210		200
2018	1,471		200
Expected:
2019	1,368		200
2020	1,265		200
2021	1,162		200
2022	1,060		100
2023	957		—