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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company held a total of $309.5 million of goodwill at September 30, 2020. The recorded goodwill is a result of multiple business combinations that have been consummated since fiscal year 2015, with the most recent pursuant to the Crestmark Acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at least annually or more often if conditions indicate a possible impairment. The assessment is done at a reporting unit level, which is one level below the operating segments. The Company has changed its basis of presentation for segments. See Note 22. Segment Reporting for additional information on the Company's segment reporting. The changes in the carrying amount of the Company’s goodwill and intangible assets for the fiscal years ended September 30, 2020 and 2019 were as follows:
(Dollars in Thousands) | Payments |  | Banking |  | Corporate Services/Other |  | Total
Goodwill |  |  |  |  |  |  |
September 30, 2019 | $ | 87,145 |  |  | $ | 222,360 |  |  | $ | — |  |  | $ | 309,505 |
Acquisitions | — |  |  | — |  |  | — |  |  | — |
Impairment | — |  |  | — |  |  | — |  |  | — |
September 30, 2020 | $ | 87,145 |  |  | $ | 222,360 |  |  | $ | — |  |  | $ | 309,505 |
September 30, 2018 | $ | 87,145 |  |  | $ | 216,125 |  |  | $ | — |  |  | $ | 303,270 |
Acquisitions | — |  |  | — |  |  | — |  |  | — |
Measurement Period Adjustments(1) | — |  |  | 6,235 |  |  | — |  |  | 6,235 |
Impairment | — |  |  | — |  |  | — |  |  | — |
September 30, 2019 | $ | 87,145 |  |  | $ | 222,360 |  |  | $ | — |  |  | $ | 309,505 |
(1) The Company recognized measurement period adjustments on provisional goodwill during fiscal year 2019 related to the Crestmark Acquisition. Due to the ongoing economic impacts from the COVID-19 pandemic, the Company conducted a quantitative interim goodwill impairment assessment as of June 30, 2020. The impairment assessment compared the fair value of each reporting unit with its carrying amount (including goodwill). If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to the excess. The Company’s interim assessment estimated fair value for each reporting unit using an income approach that incorporated a discounted cash flow model that involves many management assumptions based upon future growth projections which include estimates of COVID-19 impacts on our various business lines. Assumptions included estimates of future after-tax cash flows, growth rates, and discount rates based upon industry and competitor analyses. Results of the interim assessment indicated no goodwill impairment for any of the reporting units as of June 30, 2020. The Company completed a qualitative goodwill impairment assessment as of September 30, 2020. Based on the results, it was identified that it was more likely than not the fair value of goodwill recorded exceeded the current carrying value and concluded no impairment existed as of September 30, 2020.
(Dollars in Thousands) | Trademark (1) |  | Non-Compete (2) |  | Customer Relationships (3) |  | All Others (4) |  | Total
Intangibles |  |  |  |  |  |  |  |  |
Balance as of September 30, 2019 | $ | 11,959 |  |  | $ | 827 |  |  | $ | 33,207 |  |  | $ | 6,817 |  |  | $ | 52,810 |
Acquisitions during the period | — |  |  | — |  |  | — |  |  | 35 |  |  | 35 |
Amortization during the period | (1,058) |  |  | (405) |  |  | (8,874) |  |  | (660) |  |  | (10,997) |
Write-offs during the period | — |  |  | — |  |  | — |  |  | (156) |  |  | (156) |
Balance as of September 30, 2020 | $ | 10,901 |  |  | $ | 422 |  |  | $ | 24,333 |  |  | $ | 6,036 |  |  | $ | 41,692 |
Gross carrying amount | $ | 14,624 |  |  | $ | 2,480 |  |  | $ | 82,088 |  |  | $ | 10,113 |  |  | $ | 109,305 |
Accumulated amortization | (3,723) |  |  | (2,058) |  |  | (47,507) |  |  | (3,887) |  |  | (57,175) |
Accumulated impairment | — |  |  | — |  |  | (10,248) |  |  | (190) |  |  | (10,438) |
Balance as of September 30, 2020 | $ | 10,901 |  |  | $ | 422 |  |  | $ | 24,333 |  |  | $ | 6,036 |  |  | $ | 41,692 |
(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.
(Dollars in Thousands) | Trademark (1) |  | Non-Compete (2) |  | Customer Relationships (3) |  | All Others (4) |  | Total
Intangibles |  |  |  |  |  |  |  |  |
Balance as of September 30, 2018 | $ | 12,987 |  |  | $ | 1,297 |  |  | $ | 48,455 |  |  | $ | 7,980 |  |  | $ | 70,719 |
Acquisitions during the period | — |  |  | — |  |  | — |  |  | 115 |  |  | 115 |
Amortization during the period | (1,028) |  |  | (470) |  |  | (15,248) |  |  | (965) |  |  | (17,711) |
Write-offs during the period | — |  |  | — |  |  | — |  |  | (313) |  |  | (313) |
Balance as of September 30, 2019 | $ | 11,959 |  |  | $ | 827 |  |  | $ | 33,207 |  |  | $ | 6,817 |  |  | $ | 52,810 |
Gross carrying amount | $ | 14,624 |  |  | $ | 2,480 |  |  | $ | 82,088 |  |  | $ | 10,703 |  |  | $ | 109,895 |
Accumulated amortization | (2,665) |  |  | (1,653) |  |  | (38,633) |  |  | (3,227) |  |  | (46,178) |
Accumulated impairment | — |  |  | — |  |  | (10,248) |  |  | (659) |  |  | (10,907) |
Balance as of September 30, 2019 | $ | 11,959 |  |  | $ | 827 |  |  | $ | 33,207 |  |  | $ | 6,817 |  |  | $ | 52,810 |
(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. The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairments to intangible assets for the fiscal year ended September 30, 2020. There was $0.1 million in impairments to intangible assets for the fiscal year ended September 30, 2019. Intangible impairment expense is recorded within the impairment expense line of the Consolidated Statements of Operations. 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 subsequent fiscal years at September 30, 2020 was as follows:
Fiscal Year Ended | Anticipated Amortization
(Dollars in Thousands) |
2021 | $ | 8,548 |
2022 | 6,422 |
2023 | 5,104 |
2024 | 4,387 |
2025 | 3,830 |
Thereafter | 13,401 |
Total anticipated intangible amortization | $ | 41,692 |
Measurement Period Adjustments and Impairment - DC Solar The Company previously purchased a portfolio of mobile solar generators ("MSGs") from DC Solar Solutions, Inc. and certain of its affiliates, a relationship in the Company's solar leasing business, and, in turn, leased the MSGs to DC Solar Distribution, Inc., an affiliate of DC Solar Solutions. During 2019, the Company became aware that the DC Solar entities and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. The Company had three separate operating leases with DC Solar - two of which were included in the acquired Crestmark balances on August 1, 2018. The third transaction was originated in August 2018, after the closing of the Crestmark Acquisition. The Company considered the bankruptcy filing and fraud allegations as new facts and circumstances and concluded the alleged fraud existed at the acquisition date for the acquired DC Solar transactions. As a result, the identified impairment for the acquired DC Solar transactions and other related adjustments were recorded as measurement period adjustments to the acquired assets and liability amounts recognized and were offset through provisional goodwill. The impairment and related adjustments for the DC Solar transaction originated post-acquisition have been reflected in fiscal year 2019 earnings. No additional impairment or net financial impact has been recognized since fiscal year 2019. As of September 30, 2020, the underlying assets are ready to be re-leased and are now part of normal business activities. Measurement Period Adjustments - Other The Company recorded additional measurement period adjustments in 2019 for provisional tax, compensation liabilities and other liabilities assumed through the Crestmark Acquisition. The Company obtained additional information about facts and circumstances existing at the Crestmark Acquisition date that resulted in a net increase to liabilities and goodwill recognized of $3.8 million.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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