Goodwill and Other Intangible Assets
The Company performed the annual quantitative goodwill impairment analyses in the fourth quarter of its fiscal year ended June 30, 2025. Based on the results of the impairment analyses, the Company concluded that the fair value of its single reporting unit exceeded its respective carrying value, resulting in no impairment charge. The fair value of the Company’s single reporting unit was estimated using the income approach and market-based approaches, weighted 70% and 30%, respectively.
For the fiscal year ended June 30, 2024, a non-cash, pre-tax goodwill impairment of $97.4 million was recorded. The goodwill impairment had no impact on the Company’s liquidity and regulatory capital ratios.
| | | | | | | | | | | |
| Goodwill | | Core Deposit Intangibles |
| (In Thousands) |
| Balance at June 30, 2022 | $ | 210,895 | | | $ | 3,020 | |
| Amortization | — | | | (563) | |
| Balance at June 30, 2023 | 210,895 | | | 2,457 | |
| Amortization | — | | | (526) | |
| Impairment | (97,370) | | | — | |
| Balance at June 30, 2024 | 113,525 | | | 1,931 | |
| Amortization | — | | | (495) | |
| Balance at June 30, 2025 | $ | 113,525 | | | $ | 1,436 | |
As of June 30, 2025, the accumulated goodwill impairment remained at $97.4 million, unchanged from June 30, 2024. As of June 30, 2023, there was no accumulated goodwill impairment.
Scheduled amortization of core deposit intangibles for each of the next five years and thereafter is as follows:
| | | | | | | | |
| Year Ending June 30, | | Core Deposit Intangible Amortization |
| | (In Thousands) |
| 2026 | | $ | 467 | |
| 2027 | | 441 | |
| 2028 | | 353 | |
| 2029 | | 122 | |
| 2030 | | 53 | |
| Thereafter | | — | |
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.