Note F – Goodwill and Intangible Assets

Goodwill:

The change in goodwill during the year is as follows:

	2018		2017			2016
Beginning of year	$	7,371	$	7,801		$	1,267
Acquired goodwill		----		----			6,534
Impairment		----		----			----
Finalization of Milton acquisition accounting		----		(430	)		----
End of year	$	7,371	$	7,371		$	7,801

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At

December 31, 2018

and

2017,

the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than

not

that fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it is more likely than

not

that fair value of goodwill is more than the carrying value, resulting in

impairment. Therefore, the Company did

not

proceed to step

one

of the annual goodwill impairment testing requirement.

Acquired intangible assets:

Acquired intangible assets were as follows at year-end:

	2018				2017
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Core deposit intangibles	$	738	$	359	$	738	$	224

Aggregate amortization expense was

$135

for

2018,

$156

for

2017and

$68

for

2016.

Estimated amortization expense for each of the next

five

years:

2019	$	114
2020		94
2021		74
2022		53
2023		32
Thereafter		12
Total	$	379