PATHWARD FINANCIAL, INC.CASH

PATHWARD FINANCIAL, INC. Goodwill & Intangibles Disclosure

10-KFiled Nov 25, 20253 min read
GOODWILL AND INTANGIBLE ASSETS
The Company held a total of $297.9 million of goodwill at September 30, 2025. The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018. During the fiscal year ended September 30, 2025, the Company closed on the sale of the commercial insurance premium finance business and derecognized the goodwill associated with that reporting unit. The goodwill was included in the carrying amount of the disposed business. See Note 2. Divestitures to the Consolidated Financial Statements for further information.
The changes in the carrying amount of the Company's goodwill were as follows:

(Dollars in Thousands)ConsumerCommercialCorporate Services/OtherTotal
September 30, 2024$87,145 $222,360 $— $309,505 
Divestiture— (11,577)— (11,577)
September 30, 2025$87,145 $210,783 $— $297,928 
September 30, 2023$87,145 $222,360 $— $309,505 
September 30, 2024$87,145 $222,360 $— $309,505 

The changes in the carrying amount of the Company’s intangible assets during the fiscal year ended September 30, 2025 include certain intangibles disposed of as part of the commercial insurance premium finance business sale. The relevant intangibles were included in the carrying amount of the disposed business. See Note 2. Divestitures to the Consolidated Financial Statements for further information.

(Dollars in thousands)
Trademark(1)
Non-Compete
Customer Relationships(2)
All Others(3)
Total
September 30, 2024$6,422 $— $6,566 $3,601 $16,589 
Amortization during the period(1,076)— (1,824)(556)(3,456)
Write-offs and disposals during the period— — (631)— (631)
September 30, 2025$5,346 $— $4,111 $3,045 $12,502 
Gross carrying amount$13,774 $301 $70,338 $7,732 $92,145 
Accumulated amortization(8,428)(301)(55,309)(4,534)(68,572)
Accumulated impairment— — (10,918)(153)(11,071)
September 30, 2025$5,346 $— $4,111 $3,045 $12,502 
September 30, 2023$7,477 $— $9,110 $4,133 $20,720 
Amortization during the period(1,055)— (2,544)(532)(4,131)
September 30, 2024$6,422 $— $6,566 $3,601 $16,589 
Gross carrying amount$13,774 $301 $77,578 $7,732 $99,385 
Accumulated amortization(7,352)(301)(60,094)(3,978)(71,725)
Accumulated impairment— — (10,918)(153)(11,071)
September 30, 2024$6,422 $— $6,566 $3,601 $16,589 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 10-30 years. Amortized using the accelerated method.
(3) 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 subsequent fiscal years at September 30, 2025 was as follows:

(Dollars in thousands)
2026$3,103 
20272,483 
20282,194 
20291,581 
20301,473 
Thereafter1,668 
Total anticipated intangible amortization$12,502 

There were no impairments to intangible assets for the fiscal years ended September 30, 2025 and 2024. Intangible impairment expense is recorded within the impairment expense line of the Consolidated Statements of Operations.

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2024Nov 26, 2024
2023Nov 21, 2023
2022Nov 22, 2022
2021Nov 23, 2021
2020Nov 30, 2020
2019Nov 26, 2019
2018Nov 29, 2018
2017Nov 29, 2017
2016Dec 14, 2016
2015Dec 14, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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