GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The Company held a total of $309.5 million of goodwill at June 30, 2020. The recorded goodwill is a result of multiple business combinations that have been consummated since fiscal year 2015, with 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 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 17. Segment Reporting for additional information on the Company's segment reporting.

Due to the ongoing economic impacts from the COVID-19 pandemic, the Company conducted a quantitative interim goodwill impairment assessment at June 30, 2020. The impairment assessment compares 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 include 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 changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2020 and 2019 were as follows:


(Dollars in Thousands)	Consumer		Commercial		Corporate Services/Other		Total
Goodwill
September 30, 2019	$	87,145	$	222,360	$	—	$	309,505
Acquisitions	—		—		—		—
Impairment	—		—		—		—
June 30, 2020	$	87,145	$	222,360	$	—	$	309,505

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

⁽¹⁾ The Company recognized measurement period adjustments on provisional goodwill during the fiscal 2019 second quarter related to the Crestmark acquisition.


(Dollars in Thousands)	Trademark⁽¹⁾		Non-Compete⁽²⁾		Customer Relationships⁽³⁾		All Others⁽⁴⁾		Total
Intangible Assets
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	(793)		(310)		(7,112)		(499)		(8,714)
Write-offs during the period	—		—		—		(157)		(157)
Balance as of June 30, 2020	$	11,166	$	517	$	26,095	$	6,196	$	43,974

Gross carrying amount	$	14,624	$	2,480	$	82,088	$	10,112	$	109,304
Accumulated amortization	(3,458)		(1,963)		(45,745)		(3,726)		(54,892)
Accumulated impairment	—		—		(10,248)		(190)		(10,438)
Balance as of June 30, 2020	$	11,166	$	517	$	26,095	$	6,196	$	43,974

⁽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
Intangible Assets
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.

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 2020 and subsequent fiscal years at June 30, 2020 was as follows:


(Dollars in Thousands)
Remaining in 2020	$	2,283
2021	8,545
2022	6,419
2023	5,101
2024	4,383
2025	3,826
Thereafter	13,417
Total anticipated intangible amortization	$	43,974

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 during the three and nine months ended June 30, 2020 or the three months ended June 30, 2019. There was $0.1 million in impairments to intangible assets during the nine months ended June 30, 2019.