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LOANS AND LEASES, NET
12 Months Ended
Sep. 30, 2021
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES, NET LOANS AND LEASES, NET
Loans and leases consist of the following:
At September 30,
(Dollars in Thousands)20212020
Term lending$961,019 $805,323 
Asset based lending300,225 182,419 
Factoring363,670 281,173 
Lease financing266,050 281,084 
Insurance premium finance428,867 337,940 
SBA/USDA247,756 318,387 
Other commercial finance157,908 101,658 
Commercial finance2,725,495 2,307,984 
Consumer credit products129,251 89,809 
Other consumer finance123,606 134,342 
Consumer finance252,857 224,151 
Tax services10,405 3,066 
Warehouse finance419,926 293,375 
Community banking199,132 485,564 
Total loans and leases3,607,815 3,314,140 
Net deferred loan origination costs1,748 8,625 
Total gross loans and leases3,609,563 3,322,765 
Allowance for credit losses(68,281)(56,188)
Total loans and leases, net$3,541,282 $3,266,577 

During the fiscal years ended September 30, 2021 and 2020, the Company transferred $188.6 million and $542.1 million, respectively, of community banking loans to held for sale.

During the fiscal year ended September 30, 2021, the Company originated $601.5 million of other consumer finance, SBA/USDA, and consumer credit product loans as held for sale. During the fiscal year ended September 30, 2020, the Company originated $98.8 million of SBA/USDA and consumer credit product loans as held for sale.

The Company sold held for sale loans resulting in proceeds of $890.3 million and gains on sale of $8.6 million during the fiscal year ended September 30, 2021. The Company sold held for sale loans resulting in proceeds of $590.8 million and gains on sale of $7.7 million during the fiscal year ended September 30, 2020.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Fiscal Year Ended September 30,
(Dollars in Thousands)20212020
Loans Purchased
Loans held for investment:
Commercial Finance— 2,400 
Warehouse Finance308,014 130,130 
Community banking3,318 18,905 
Total purchases311,332 151,435 
Loans Sold
Loans held for sale:
Commercial Finance89,276 60,114 
Consumer Finance494,585 123,394 
Community banking308,082 407,296 
Loans held for investment:
Community banking13,850 9,991 
Total sales905,793 600,795 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
At September 30,
(Dollars in Thousands)20212020
Carrying amount$278,341 $299,487 
Unguaranteed residual assets14,393 17,203 
Unamortized initial direct costs490 2,078 
Unearned income(26,684)(35,606)
Total net investment in direct financing and sales-type leases$266,540 $283,162 

The carrying amount of direct financing and sales-type leases subject to residual value guarantees was $4.2 million at September 30, 2021.

The components of total lease income were as follows:
Fiscal Year Ended September 30,
(Dollars in Thousands)20212020
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$22,876 $18,300 
Leasing and equipment finance noninterest income
Lease income from operating lease payments39,553 44,319 
Profit (loss) recorded on commencement date on sales-type leases337 2,152 
Other(1)
4,986 4,357 
Total leasing and equipment finance noninterest income44,876 50,828 
Total lease income$67,752 $69,128 
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.
Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at September 30, 2021 were as follows:
(Dollars in Thousands)
2022$109,680 
202383,438 
202451,901 
202524,838 
20265,941 
Thereafter2,543 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases278,341 
Total carrying amount of direct financing and sales-type leases$278,341 

The Company did not record any contingent rental income from sales-type and direct financing leases in the fiscal year ended September 30, 2021.

The COVID-19 pandemic began impacting the U.S. and global economies in the first calendar quarter of 2020, with significant deterioration of macroeconomic conditions and markets into 2021. Although macroeconomic conditions and markets have improved since the beginning of 2021, the ultimate impact of this pandemic on the Company's loan and lease portfolio is difficult to predict. Management continues to evaluate the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses and the impact to our customers and businesses as a result of COVID-19 and will refine our estimate as more information becomes available.

Effective October 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs on a modified retrospective basis. Financial information at and for the quarter ended September 30, 2021 is reflected as such. The historical information disclosed is in accordance with ASC Topic 310, Receivables.

Activity in the allowance for credit losses was as follows: 
Fiscal Year Ended September 30,
(Dollars in Thousands)202120202019
Beginning balance$56,188 $29,149 $13,040 
Impact of CECL adoption12,773 — — 
Provision for credit losses49,939 64,776 55,650 
Charge-offs(57,273)(41,761)(42,854)
Recoveries6,654 4,024 3,313 
Ending balance$68,281 $56,188 $29,149 
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
At September 30, 2021
(Dollars in Thousands)Beginning BalanceImpact of CECL Adoption
Provision (Recovery) for Credit Losses(2)
Charge-offsRecoveriesEnding Balance
Allowance for credits losses:
Term lending$15,211 $9,999 $16,944 $(14,090)$1,287 $29,351 
Asset based lending1,406 164 933 (1,200)423 1,726 
Factoring3,027 987 (1,192)— 1,175 3,997 
Lease financing7,023 (556)3,758 (2,969)373 7,629 
Insurance premium finance2,129 (965)(555)(1,192)1,977 1,394 
SBA/USDA940 2,720 (703)— 21 2,978 
Other commercial finance182 364 622 — — 1,168 
Commercial finance29,918 12,713 19,807 (19,451)5,256 48,243 
Consumer credit products845 — 397 — — 1,242 
Other consumer finance2,821 5,998 297 (3,324)320 6,112 
Consumer finance3,666 5,998 694 (3,324)320 7,354 
Tax services— 33,276 (34,354)1,078 
Warehouse finance294 (1)127 — — 420 
Community banking22,308 (5,937)(3,965)(144)— 12,262 
Total loans and leases56,188 12,773 49,939 (57,273)6,654 68,281 
Unfunded commitments(1)
32 831 (173)— — 690 
Total $56,220 $13,604 $49,766 $(57,273)$6,654 $68,971 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.
(2) As a result of the adoption of CECL, effective October 1, 2020, the provision for credit losses includes the provision for unfunded commitments that was previously included within other noninterest expense.

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment was as follows:
At September 30, 2020
(Dollars in Thousands)Beginning BalanceProvision (Recovery) for Loan and Lease LossesCharge-offsRecoveriesEnding Balance
Allowance for loan and lease losses:
Term lending$5,533 $19,796 $(10,458)$340 $15,211 
Asset based lending2,437 (1,036)(42)47 1,406 
Factoring3,261 (245)(915)926 3,027 
Lease financing1,275 6,105 (728)371 7,023 
Insurance premium finance1,024 2,489 (2,004)620 2,129 
SBA/USDA383 2,688 (2,131)— 940 
Other commercial finance683 (501)— — 182 
Commercial finance14,596 29,296 (16,278)2,304 29,918 
Consumer credit products1,044 (199)— — 845 
Other consumer finance5,118 (538)(2,649)890 2,821 
Consumer finance6,162 (737)(2,649)890 3,666 
Tax services— 22,006 (22,834)830 
Warehouse finance263 31 — — 294 
Community banking8,128 14,180 — — 22,308 
Total loans and leases$29,149 $64,776 $(41,761)$4,024 $56,188 
The following table provides additional disclosures previously required by ASC Topic 310 related to the Company's September 30, 2020 balances.
AllowanceLoans and Leases
(Dollars in Thousands)Ending Balance: Individually Evaluated for ImpairmentEnding Balance: Collectively Evaluated for ImpairmentTotalEnding Balance: Individually Evaluated for ImpairmentEnding Balance: Collectively Evaluated for ImpairmentTotal
Recorded investment:
Term lending$3,155 $12,056 $15,211 $26,085 $779,238 $805,323 
Asset based lending355 1,051 1,406 5,317 177,102 182,419 
Factoring274 2,753 3,027 5,071 276,102 281,173 
Lease financing1,194 5,829 7,023 4,697 276,387 281,084 
Insurance premium finance— 2,129 2,129 — 337,940 337,940 
SBA/USDA— 940 940 1,436 316,951 318,387 
Other commercial finance— 182 182 — 101,658 101,658 
Commercial finance4,978 24,940 29,918 42,606 2,265,378 2,307,984 
Consumer credit products— 845 845 — 89,809 89,809 
Other consumer finance— 2,821 2,821 1,987 132,355 134,342 
Consumer finance— 3,666 3,666 1,987 222,164 224,151 
Tax services— — 3,066 3,066 
Warehouse finance— 294 294 — 293,375 293,375 
Community banking141 22,167 22,308 6,685 478,879 485,564 
Total$5,119 $51,069 $56,188 $51,278 $3,262,862 $3,314,140 

Information on loans and leases that are deemed to be collateral dependent and are evaluated individually for the ACL was as follows:

(Dollars in Thousands)At September 30, 2021
Term lending$20,965 
Factoring1,268 
Lease financing3,882 
Commercial finance26,115 
Community banking14,915 
Total$41,030 

In response to the ongoing COVID-19 pandemic, the Company allowed modifications, such as payment deferrals and temporary forbearance, to credit-worthy borrowers who are experiencing temporary hardship due to the effects of COVID-19. Accordingly, if all payments were less than 30 days past due prior to the onset of the pandemic effects, the loan or lease will not be reported as past due during the deferral or forbearance period. As of September 30, 2021, $39.1 million of loan and lease that were granted deferral payments by the Company were still in their deferment period compared to $193.3 million as of September 30, 2020. These modifications consisted solely of payment deferrals ranging from 30 days to six months. These modifications are in line with applicable regulatory guidelines and, therefore, they are not reported as troubled debt restructurings. Other than the loan modifications that are on nonaccrual status, the Company is accruing and recognizing interest income on these modifications during the payment deferral period.
Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the OCC, to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows:
 
Pass - A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.
 
Watch - A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets.

Special Mention - A special mention asset is a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.
 
The adverse classifications are as follows:
 
Substandard - A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful - A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate.

Loss - A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

Meta has revised its credit administration policies and reviewed its loan portfolio to better align with OCC guidance for national banks, a process that began during the quarter ending June 30, 2021 and was completed as of September 30, 2021. These credit policy revisions had an impact on our loan and lease risk ratings, resulting in downgrades of certain credits in several categories.
 
Loans and leases, or portions thereof, are charged off when collection of principal becomes doubtful. Generally, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 180 days or more for the purchased student loan portfolios, 120 days or more for consumer credit products and leases, and 90 days or more for community banking loans and commercial finance loans. Action is taken to charge off ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally individually evaluated for expected credit losses.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the allowable Allowance for Credit Losses.
The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses on these portfolios, and as such, these loans are not included in the asset classification table below, beginning in the fiscal 2020 first quarter. The outstanding balances of consumer finance loans and tax services loans were $252.9 million and $10.4 million at September 30, 2021, respectively, and $224.2 million and $3.1 million at September 30, 2020, respectively. The amortized cost basis of loans and leases by asset classification and year of origination as of September 30, 2021 was as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
(Dollars in Thousands)20212020201920182017Prior
Term lending
Pass$362,443 $192,305 $63,708 $34,381 $3,195 $1,236 $— $657,268 
Watch63,046 71,701 32,941 21,419 76 3,628 — 192,811 
Special Mention6,422 26,673 4,821 932 70 633 — 39,551 
Substandard18,569 16,810 26,920 3,529 928 641 — 67,397 
Doubtful252 1,673 1,756 311 — — — 3,992 
Total450,732 309,162 130,146 60,572 4,269 6,138 — 961,019 
Asset based lending
Pass— — — — — — 185,432 185,432 
Watch— — — — — — 52,072 52,072 
Special Mention— — — — — — 43,135 43,135 
Substandard— — — — — — 19,586 19,586 
Doubtful— — — — — — — — 
Total— — — — — — 300,225 300,225 
Factoring
Pass— — — — — — 294,124 294,124 
Watch— — — — — — 17,984 17,984 
Special Mention— — — — — — 33,035 33,035 
Substandard— — — — — — 18,527 18,527 
Total— — — — — — 363,670 363,670 
Lease financing
Pass54,434 73,629 17,153 7,511 1,857 203 — 154,787 
Watch22,061 20,455 9,274 2,739 1,454 — — 55,983 
Special Mention15,402 20,595 4,148 1,546 61 — — 41,752 
Substandard479 4,765 4,981 831 25 — — 11,081 
Doubtful— 2,402 38 — 2,447 
Total92,376 119,450 37,958 12,665 3,398 203 — 266,050 
Insurance premium finance
Pass428,131 144 — — — — 428,284 
Watch262 — — — — — 267 
Special Mention58 — — — — — 63 
Substandard68 107 — — — — — 175 
Doubtful58 20 — — — — — 78 
Total428,577 281 — — — — 428,867 
SBA/USDA
Pass110,122 37,006 14,461 12,760 6,525 3,779 — 184,653 
Watch— 20,431 1,996 1,670 1,394 298 — 25,789 
Special Mention— 8,333 214 3,348 177 919 — 12,991 
Substandard— 3,812 9,550 8,079 2,169 713 — 24,323 
Total110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 
Other commercial finance
Pass56,957 642 5,786 6,075 3,345 60,965 — 133,770 
Watch— 17,404 3,409 451 — — — 21,264 
Substandard466 — — 273 837 1,299 — 2,875 
Total57,423 18,046 9,195 6,799 4,182 62,264 — 157,909 
Warehouse finance
Pass— — — — — — 419,926 419,926 
Total— — — — — — 419,926 419,926 
Community banking
Pass— — 4,159 — 5,683 472 — 10,314 
Watch— 10,134 — 10,854 6,133 — — 27,121 
Special Mention— — 35,916 — — — — 35,916 
Substandard— 119 49,449 50,626 13,933 6,110 — 120,237 
Doubtful— 122 — 5,422 — — — 5,544 
Total— 10,375 89,524 66,902 25,749 6,582 — 199,132 
Total Loans and Leases
Pass1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 
Watch85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 
Special Mention21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 
Substandard19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 
Doubtful310 1,822 4,158 5,770 — — 12,061 
Total$1,139,233 $526,899 $293,051 $172,793 $47,861 $80,895 $1,083,821 $3,344,553 

The recorded investment of loans and leases by asset classification was as follows:

(Dollars in Thousands)At September 30, 2020
Asset ClassificationPassWatchSpecial MentionSubstandardDoubtfulTotal
Term lending$725,101 $29,637 $24,501 $21,249 $4,835 $805,323 
Asset based lending102,013 62,512 12,577 5,317 — 182,419 
Factoring217,245 45,200 13,657 5,071 — 281,173 
Lease financing264,700 8,879 2,808 4,148 549 281,084 
Insurance premium finance336,364 284 222 701 369 337,940 
SBA/USDA308,549 8,328 74 1,436 — 318,387 
Other commercial finance100,727 931 — — — 101,658 
Commercial finance2,054,699 155,771 53,839 37,922 5,753 2,307,984 
Warehouse finance293,375 — — — — 293,375 
Community banking353,410 98,336 9,588 23,650 580 485,564 
Total loans and leases$2,701,484 $254,107 $63,427 $61,572 $6,333 $3,086,923 
Past due loans and leases were as follows:
At September 30, 2021
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in Thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $56,194 $56,194 $— $— $— 
Term lending11,879 2,703 5,452 20,034 940,985 961,019 2,558 14,904 17,462 
Asset based lending— — — — 300,225 300,225 — — — 
Factoring— — — — 363,670 363,670 — 1,268 1,268 
Lease financing4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 
Insurance premium finance1,415 375 599 2,389 426,478 428,867 599 — 599 
SBA/USDA66 974 987 2,027 245,729 247,756 987 — 987 
Other commercial finance— — — — 157,908 157,908 — — — 
Commercial finance18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 
Consumer credit products713 527 511 1,751 127,500 129,251 511 — 511 
Other consumer finance963 285 725 1,973 121,633 123,606 725 — 725 
Consumer finance1,676 812 1,236 3,724 249,133 252,857 1,236 — 1,236 
Tax services— — 7,962 7,962 2,443 10,405 7,962 — 7,962 
Warehouse finance— — — — 419,926 419,926 — — — 
Community banking— — — — 199,132 199,132 — 14,915 14,915 
Total loans and leases held for investment19,945 8,200 24,637 52,782 3,555,033 3,607,815 21,687 34,245 55,932 
Total loans and leases$19,945 $8,200 $24,637 $52,782 $3,611,227 $3,664,009 $21,687 $34,245 $55,932 

At September 30, 2020
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in Thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $183,577 $183,577 $— $— $— 
Term lending11,900 3,851 6,390 22,141 783,182 805,323 266 16,274 16,540 
Asset based lending17 — — 17 182,402 182,419 — — — 
Factoring— — — — 281,173 281,173 — 1,096 1,096 
Lease financing194 9,746 6,882 16,822 264,262 281,084 4,344 3,583 7,927 
Insurance premium finance1,227 748 2,364 4,339 333,601 337,940 2,364 — 2,364 
SBA/USDA— — 1,027 1,027 317,360 318,387 427 600 1,027 
Other commercial finance— — — — 101,658 101,658 — — — 
Commercial finance13,338 14,345 16,663 44,346 2,263,638 2,307,984 7,401 21,553 28,954 
Consumer credit products377 358 499 1,233 88,576 89,809 499 — 499 
Other consumer finance600 536 373 1,509 132,833 134,342 373 — 373 
Consumer finance977 894 872 2,743 221,408 224,151 872 — 872 
Tax services— — 1,743 1,743 1,323 3,066 1,743 — 1,743 
Warehouse finance— — — — 293,375 293,375 — — — 
Community banking905 114 2,449 3,468 482,096 485,564 50 2,399 2,449 
Total loans and leases held for investment15,220 15,353 21,727 52,300 3,261,840 3,314,140 10,066 23,952 34,018 
Total loans and leases$15,220 $15,353 $21,727 $52,300 $3,445,417 $3,497,717 $10,066 $23,952 $34,018 
Nonaccrual loans and leases by year of origination at September 30, 2021 were as follows:

Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in Thousands)20212020201920182017Prior
Term lending$131 $3,812 $10,072 $756 $133 $— $— $14,904 $12,103 
Factoring— — — — — — 1,268 1,268 1,268 
Lease financing30 2,471 632 25 — — 3,158 541 
Commercial finance131 3,842 12,543 1,388 158 — 1,268 19,330 13,912 
Community Banking— 242 — 14,673 — — — 14,915 — 
Total nonaccrual loans and leases$131 $4,084 $12,543 $16,061 $158 $— $1,268 $34,245 $13,912 

Loans and leases that are 90 days or more delinquent and accruing by year of origination at September 30, 2021 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
(Dollars in Thousands)20212020201920182017Prior
Term lending$2,546 $— $12 $— $— $— $— $2,558 
Lease financing429 7,558 224 99 31 — 8,345 
Insurance premium finance468 131 — — — — — 599 
SBA/USDA— 987 — — — — — 987 
Commercial finance3,443 8,676 236 99 31 — 12,489 
Consumer credit products206 77 224 — — — 510 
Other consumer finance— — — — — 725 — 725 
Consumer finance206 77 224 — 725 — 1,235 
Tax services7,962 — — — — — — 7,962 
Total 90 days or more delinquent and accruing$11,611 $8,753 $460 $102 $31 $729 $— $21,686 

Certain loans and leases 90 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) consumer loans exempt under regulatory rules from being classified as non-accrual until later delinquency, usually 120 days past due.

When analysis of borrower or lessee operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often, this is associated with a delay or shortfall in scheduled payments, as described above.
Information on impaired loans and leases, all of which are deemed to be collateral dependent and are evaluated individually for the ACL was as follows:

(Dollars in Thousands)Fiscal Year Ended September 30, 2021
Term lending$20,965 
Factoring1,268 
Lease financing3,882 
Commercial finance26,115 
Other consumer finance2,294 
Consumer finance2,294 
Community banking14,915 
Total loans and leases$43,324 

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal year ended September 30, 2021 was not significant.

The following table provides the average recorded investment in impaired loans and leases:

Fiscal Year Ended September 30, 2020
(Dollars in Thousands)Average
Recorded
Investment
Recognized Interest Income
Term lending$26,126 $386 
Asset based lending1,339 — 
Factoring4,075 13 
Lease financing3,370 16 
SBA/USDA3,164 — 
Commercial finance38,074 415 
Other consumer finance1,860 143 
Consumer finance1,860 143 
Community banking3,529 (37)
Total loans and leases$43,463 $521 

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $5.9 million of commercial finance loans, and $0.3 million of consumer finance loans that were modified in a TDR during the fiscal year ended September 30, 2021, all of which were modified to extend the term of the loan, and no community banking loans. There were $8.7 million of commercial finance loans, and $0.8 million of consumer finance loans that were modified in a TDR during the fiscal year ended September 30, 2020 and $5.2 million community banking loans.

During the fiscal year ended September 30, 2021, the Company had $3.4 million of commercial finance loans, $0.3 million of consumer finance loans, and no community banking loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the fiscal year ended September 30, 2020, the Company had $3.3 million of commercial finance loans, $0.6 million of consumer finance loans, and $3.3 million of community banking loans that were modified in a TDR within the previous 12 months and for which there was a payment default. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the fiscal years ended September 30, 2021 and September 30, 2020.