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## NOTE 7 

## GOODWILL 

During 2002, the Corporation changed its method of accounting and financial reporting for goodwill and other intangible assets by adopting the provisions of SFAS No. 142. Had the new method been applied retroactively, the previously reported 2001 net income would have increased by $1,070,000. No impairment loss was recorded in 2003 and 2002. 

The changes in the carrying amount of goodwill are as follows: 

<img src='content_image/61572.jpg'>

## NOTE 8 

## CORE DEPOSIT INTANGIBLES 

The carrying basis and accumulated amortization of recognized core deposit intangibles at December 31 were: 

<img src='content_image/61571.jpg'>

Amortization expense for the years ended December 31, 2003, 2002 and 2001, was $3,704,000, $2,571,000 and $612,000, respectively. Estimated amortization expense for each of the following five years is: 

<img src='content_image/61570.jpg'>

