XML 29 R17.htm IDEA: XBRL DOCUMENT v3.19.2
GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $307.9 million of goodwill as of June 30, 2019. The recorded goodwill is a result of multiple business combinations that have occurred since fiscal year 2015, the most recent being the merger with Crestmark pursuant to the Crestmark acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at a reporting unit level, which is one level below the operating segments.
 
The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2019 and 2018 were as follows:
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Goodwill
(Dollars in Thousands)
September 30, 2018
$
87,145

 
$
216,125

 
$
—

 
$
303,270

Acquisitions
—

 
—

 
—

 
—

Measurement Period Adjustments (1)
—

 
4,671

 
—

 
4,671

Impairment
—

 
—

 
—

 
—

June 30, 2019
$
87,145

 
$
220,796

 
$
—

 
$
307,941

 
 
 
 
 
 
 
 
September 30, 2017
$
87,145

 
$
11,578

 
$
—

 
$
98,723

Acquisitions
—

 
—

 
—

 
—

Impairment
—

 
—

 
—

 
—

June 30, 2018
$
87,145

 
$
11,578

 
$
—

 
$
98,723

(1) The Company recognized measurement period adjustments on provisional goodwill during the second and third fiscal quarters of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.

 
Trademark(1)
 
Non-Compete(2)
 
Customer Relationships(3)
 
All Others(4)
 
Total
Intangibles
(Dollars in Thousands)
Balance as of September 30, 2018
$
12,987

 
$
1,297

 
$
48,455

 
$
7,980

 
$
70,719

Acquisitions during the period
—

 
—

 
—

 
100

 
100

Amortization during the period
(771
)
 
(353
)
 
(12,504
)
 
(724
)
 
(14,352
)
Write-offs during the period
—

 
—

 
—

 
(314
)
 
(314
)
Balance as of June 30, 2019
$
12,216

 
$
944

 
$
35,951

 
$
7,042

 
$
56,153

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
14,624

 
$
2,480

 
$
82,088

 
$
10,688

 
$
109,880

Accumulated amortization
(2,408
)
 
(1,536
)
 
(35,889
)
 
(2,987
)
 
(42,820
)
Accumulated impairment
—

 
—

 
(10,248
)
 
(659
)
 
(10,907
)
Balance as of June 30, 2019
$
12,216

 
$
944

 
$
35,951

 
$
7,042

 
$
56,153

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

 
Trademark(1)
 
Non-Compete(2)
 
Customer Relationships(3)
 
All Others(4)
 
Total
Intangibles
(Dollars in Thousands)
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

Acquisitions during the period
—

 
—

 
—

 
85

 
85

Amortization during the period
(477
)
 
(367
)
 
(4,548
)
 
(685
)
 
(6,077
)
Write-offs during the period
—

 
—

 
—

 
(88
)
 
(88
)
Balance as of June 30, 2018
$
9,574

 
$
1,415

 
$
27,159

 
$
7,950

 
$
46,098

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
10,990

 
$
2,480

 
$
57,810

 
$
10,587

 
$
81,867

Accumulated amortization
(1,416
)
 
(1,065
)
 
(20,403
)
 
(2,020
)
 
(24,904
)
Accumulated impairment
—

 
—

 
(10,248
)
 
(617
)
 
(10,865
)
Balance as of June 30, 2018
$
9,574

 
$
1,415

 
$
27,159

 
$
7,950

 
$
46,098

(1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining three months of fiscal 2019 and subsequent fiscal years is as follows:
 
(Dollars in Thousands)
Remaining in 2019
$
3,357

2020
10,986

2021
8,527

2022
6,402

2023
5,084

2024
4,367

Thereafter
17,430

Total anticipated intangible amortization
$
56,153



The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.  There was $0.1 million in impairments to intangible assets during the nine months ended June 30, 2019 and no impairments to intangible assets during the three months ended June 30, 2019 or the three and nine months ended June 30, 2018.