Note 6 - Goodwill and Intangible Assets

Goodwill

The change in the balance for goodwill was as follows:

(Dollars in thousands)	2019		2018
January 1	$	13,728	$	13,728
Acquired goodwill from merger with County		39,142		—
December 31	$	52,870	$	13,728

ChoiceOne evaluates goodwill annually for impairment. Accounting pronouncements allow a company to first perform a qualitative assessment for goodwill prior to a quantitative assessment (Step 1 assessment). If the results of the qualitative assessment indicate that it is more likely than not that goodwill is impaired, then a quantitative assessment must be performed. If not, there is no further assessment required. The Company previously acquired Valley Ridge Financial Corp. in 2006 and County in 2019, which resulted in the recognition of goodwill of $13.7 million and $39.1 million, respectively. Management concluded no impairment of goodwill existed as of the reporting date.

Acquired Intangible Assets

Information for acquired intangible assets at December 31, 2019 follows:

	Gross
	Carrying		Accumulated
(Dollars in thousands)	Amount		Amortization
Core deposit intangible	$	6,359	$	353

The core deposit intangible is being amortized on a sum-of-the-years digits basis over ten years. Amortization expense was $353,000 in 2019. The estimated amortization expense for the next five years ending December 31 is as follows:


2020	$	1,369
2021		1,192
2022		1,016
2023		839
2024		662
Thereafter		928
Total	$	6,006