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Goodwill.
9 Months Ended
Jun. 30, 2011
Goodwill Disclosure [Text Block]

NOTE 5. Goodwill.


          The Consolidated Balance Sheets at September 30, 2010 and June 30, 2010 included goodwill totaling $28.3 million, which was comprised of $5.8 million related to continuing operations and $22.5 million which was reclassified as part of assets of discontinued operations. On June 1, 2011, the sale of First Southeast was complete and its assets and liabilities, including goodwill, were removed from First Financial’s Consolidated Balance Sheet.


          As of May 31, 2011, First Financial performed its annual goodwill impairment test on the goodwill from continuing operations, which is associated with Kimbrell Insurance Group, Inc., (“Kimbrell”), a subsidiary of First Financial, and Atlantic Acceptance Corporation (“Atlantic”), a subsidiary of First Federal. The Step 1 analysis indicated that the carrying amount exceeded estimated fair value for both entities; therefore, Step 2 testing was required. As a result of the Step 2 analysis, First Financial determined that the goodwill associated with Kimbrell and Atlantic was impaired due to updated discounted cash flow projections, and, in the case of Atlantic, a change in business strategy. During the third quarter of fiscal 2011, First Financial recorded a non-cash, not tax-deductible goodwill impairment charge of $2.5 million.