GOODWILL AND OTHER INTANGIBLES

On January 5, 2005, ACNB Corporation completed its acquisition of Russell Insurance Group, Inc. (RIG) of Westminster, Maryland. The acquisition of RIG resulted in goodwill of approximately $6,308,000.

On July 1, 2017, ACNB completed its acquisition of New Windsor Bancorp Inc. (New Windsor) of Taneytown, Maryland. The acquisition of New Windsor resulted in goodwill of approximately $13,272,000 and generated $2,418,000 in core deposit intangibles.

Combined goodwill included in the Corporation’s consolidated statement of condition is $19,580,000. Goodwill, which has an indefinite useful life, is evaluated for impairment annually and is evaluated for impairment more frequently if events and circumstances indicate that the asset might be impaired. The Corporation did not identify any goodwill impairment on RIG or the Bank outstanding goodwill from its most recent testing. There are no impairment losses associated with goodwill as of December 31, 2019 and 2018. Additionally, there are no accumulated impairment losses associated with goodwill as of December 31, 2019 and 2018. No change occurred during the year with RIG’s goodwill, $6,308,000, or the Bank’s goodwill of $13,272,000.

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as core deposit intangibles, customer relationship intangibles and renewal lists, are amortized over their estimated useful lives and subject to periodic impairment testing. Core deposit intangibles are primarily amortized over ten years using accelerated methods. Customer renewal lists are amortized over their estimated useful lives which range from eight to fifteen years.

The carrying value and accumulated amortization of the intangible assets (RIG customer lists and New Windsor core deposit intangibles) are as follows:



	2019				2018
Dollars in thousands	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
RIG amortized intangible assets	9,890		6,869		9,250		6,623
New Windsor core deposit intangibles	2,418		1,012		2,418		638
	$	12,308	$	7,881	$	11,668	$	7,261

Amortization expense was $621,000 and $745,000 for the years ended December 31, 2019 and 2018, respectively.

Amortization of the intangible assets for the five years subsequent to December 31, 2019, is expected to be as follows:



Years Ending	In thousands
2020	$	590
2021	546
2022	502
2023	458
2024	406
Thereafter	1,925