The following table summarizes the Corporation’s acquired goodwill and intangible assets as of December 31:

 

(Dollar amounts in thousands)		2013						2012
		Gross Carrying			Accumulated			Gross Carrying			Accumulated
		Amount			Amortization			Amount			Amortization
Goodwill		$	3,664		$	-		$	3,664		$	-
Core deposit intangibles			4,027			3,062			4,027			2,792
Total		$	7,691		$	3,062		$	7,691		$	2,792

 

Goodwill resulted from three previous branch acquisitions.  Goodwill represents the excess of the total purchase price paid for the branch acquisitions over the fair value of the assets acquired, net of the fair value of the liabilities assumed.  Goodwill is not amortized but is evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable.  Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value.  The Corporation has selected November 30 as the date to perform the annual impairment test.  No goodwill impairment charges were recorded in 2013 or 2012.  Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet.

Also, in connection with the assumption of deposits related to the 2009 Titusville branch acquisition, the Bank recorded a core deposit intangible of $2.8 million during 2009.  This intangible asset amortizes using the double declining balance method over a weighted average estimated life of nine years and is not estimated to have a significant residual value.  The Corporation recorded intangible amortization expense totaling $270,000 and $345,000 in 2013 and 2012, respectively.

 

The estimated amortization expense of the core deposit intangible for the years ending December 31, are as follows:

 

(Dollar amounts in thousands)		Amortization
		Expense
2014		$	216
2015			195
2016			195
2017			195
2018			164
		$	965