LOANS AND LEASES, NET

6 Months Ended

Mar. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

LOANS AND LEASES, NET

LOANS AND LEASES, NET

Loans and leases consist of the following:

(Dollars in thousands)	March 31, 2023		September 30, 2022
Term lending	$	1,235,453	$	1,090,289
Asset based lending	377,965		351,696
Factoring	338,884		372,595
Lease financing	170,645		210,692
Insurance premium finance	437,700		479,754
SBA/USDA	405,612		359,238
Other commercial finance	166,402		159,409
Commercial finance	3,132,661		3,023,673
Consumer credit products	120,739		144,353
Other consumer finance	27,909		25,306
Consumer finance	148,648		169,659
Tax services	61,553		9,098
Warehouse finance	377,036		326,850
Total loans and leases	3,719,898		3,529,280
Net deferred loan origination costs	5,718		7,025
Total gross loans and leases	3,725,616		3,536,305
Allowance for credit losses	(84,304)		(45,947)
Total loans and leases, net	$	3,641,312	$	3,490,358

During the six months ended March 31, 2023 and 2022, the Company originated $608.6 million and $555.4 million of consumer finance and SBA/USDA as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $604.4 million and gain on sale of $0.1 million during the six months ended March 31, 2023. The Company sold held for sale loans resulting in proceeds of $723.9 million and loss on sale of $4.1 million during the six months ended March 31, 2022.

Loans purchased and sold by portfolio segment, including participation interests, were as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
(Dollars in thousands)	2023		2022		2023		2022
Loans Purchased
Loans held for investment:
Commercial finance	$	—	$	1,378	$	—	$	3,098
Warehouse finance	120,185		29,822		187,834		85,815
Total purchases	$	120,185	$	31,200	$	187,834	$	88,913
Loans Sold
Loans held for sale:
Commercial finance	$	294	$	14,090	$	1,149	$	47,113
Consumer finance	201,199		147,163		603,214		523,607
Community banking	—		—		—		153,222
Loans held for investment:
Commercial finance	—		15,549		—		15,549
Community banking	—		—		—		30,235
Total sales	$	201,493	$	176,802	$	604,363	$	769,726

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:

(Dollars in thousands)	March 31, 2023		September 30, 2022
Carrying amount	$	173,621	$	216,880
Unguaranteed residual assets	11,849		13,037
Unamortized initial direct costs	202		295
Unearned income	(14,825)		(19,225)
Total net investment in direct financing and sales-type leases	$	170,847	$	210,987

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at March 31, 2023 were as follows:

(Dollars in thousands)
Remaining in 2023	$	43,358
2024	67,521
2025	37,603
2026	15,265
2027	7,418
Thereafter	2,456
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	173,621
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type leases	$	173,621

The Company did not record any contingent rental income from direct financing and sales-type leases in the six months ended March 31, 2023.

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, other factors have been affecting the economic environment in 2022 and 2023 including geopolitical conflict, supply chain disruptions, inflation, rising interest rates, and recent bank failures brought on by, among other things, rising interest rates, deposit outflows and liquidity crises. While the ultimate impact of the pandemic and these other factors on the Company's loan and lease portfolio remains 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 other factors impacting the economy and will refine its estimate as developments occur and more information becomes available.

Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	26,752	$	3,974	$	(2,705)	$	394	$	28,415
Asset based lending	3,903		51		(2,873)		—		1,081
Factoring	5,674		(40)		(62)		16		5,588
Lease financing	5,238		(183)		(607)		101		4,549
Insurance premium finance	1,261		155		(224)		71		1,263
SBA/USDA	2,632		2		—		6		2,640
Other commercial finance	3,356		976		—		—		4,332
Commercial finance	48,816		4,935		(6,471)		588		47,868
Consumer credit products	1,263		(44)		—		—		1,219
Other consumer finance	1,624		276		(154)		—		1,746
Consumer finance	2,887		232		(154)		—		2,965
Tax services	609		31,422		—		1,063		33,094
Warehouse finance	280		97		—		—		377
Total loans and leases	52,592		36,686		(6,625)		1,651		84,304
Unfunded commitments(1)	279		77		—		—		356
Total	$	52,871	$	36,763	$	(6,625)	$	1,651	$	84,660
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

	Three Months Ended March 31, 2022
(Dollars in thousands)	Beginning Balance		Provision (Reversal)(2)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	26,722	$	1,954	$	(1,822)	$	714	$	27,568
Asset based lending	2,758		(175)		—		—		2,583
Factoring	15,242		823		(9,590)		51		6,526
Lease financing	6,857		(395)		(95)		104		6,471
Insurance premium finance	1,044		59		(106)		60		1,057
SBA/USDA	2,996		(53)		—		—		2,943
Other commercial finance	1,349		(152)		—		—		1,197
Commercial finance	56,968		2,061		(11,613)		929		48,345
Consumer credit products	1,627		(6)		—		—		1,621
Other consumer finance	6,960		1,157		(802)		73		7,388
Consumer finance	8,587		1,151		(802)		73		9,009
Tax services	1,601		28,972		—		184		30,757
Warehouse finance	467		(26)		—		—		441
Community banking	—		(2)		—		2		—
Total loans and leases	67,623		32,156		(12,415)		1,188		88,552
Unfunded commitments(1)	405		146		—		—		551
Total	$	68,028	$	32,302	$	(12,415)	$	1,188	$	89,103
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed 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.

	Six Months Ended March 31, 2023
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	24,621	$	7,645	$	(4,522)	$	671	$	28,415
Asset based lending	1,050		2,904		(2,873)		—		1,081
Factoring	6,556		(804)		(183)		19		5,588
Lease financing	5,902		(621)		(1,013)		281		4,549
Insurance premium finance	1,450		108		(409)		114		1,263
SBA/USDA	3,263		(649)		—		26		2,640
Other commercial finance	1,310		3,022		—		—		4,332
Commercial finance	44,152		11,605		(9,000)		1,111		47,868
Consumer credit products	1,400		(181)		—		—		1,219
Other consumer finance	63		2,016		(333)		—		1,746
Consumer finance	1,463		1,835		(333)		—		2,965
Tax services	5		33,059		(1,731)		1,761		33,094
Warehouse finance	327		50		—		—		377
Total loans and leases	45,947		46,549		(11,064)		2,872		84,304
Unfunded commitments(1)	366		(10)		—		—		356
Total	$	46,313	$	46,539	$	(11,064)	$	2,872	$	84,660
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

	Six Months Ended March 31, 2022
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	29,351	$	1,095	$	(3,906)	$	1,028	$	27,568
Asset based lending	1,726		736		(16)		137		2,583
Factoring	3,997		13,324		(10,864)		69		6,526
Lease financing	7,629		(1,217)		(112)		171		6,471
Insurance premium finance	1,394		(211)		(283)		157		1,057
SBA/USDA	2,978		180		(217)		2		2,943
Other commercial finance	1,168		29		—		—		1,197
Commercial finance	48,243		13,936		(15,398)		1,564		48,345
Consumer credit products	1,242		379		—		—		1,621
Other consumer finance	6,112		2,718		(1,622)		180		7,388
Consumer finance	7,354		3,097		(1,622)		180		9,009
Tax services	2		28,259		(254)		2,750		30,757
Warehouse finance	420		21		—		—		441
Community banking	12,262		(12,686)		—		424		—
Total loans and leases	68,281		32,627		(17,274)		4,918		88,552
Unfunded commitments(1)	690		(139)		—		—		551
Total	$	68,971	$	32,488	$	(17,274)	$	4,918	$	89,103
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.

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 March 31, 2023		At September 30, 2022
Term lending	$	2,809	$	2,885
Factoring	—		550
Lease financing	2,284		2,787
SBA/USDA	1,113		1,199
Commercial finance(1)	6,206		7,421
Total	$	6,206	$	7,421
(1) For Commercial Finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets.

Management has identified certain structured finance credits for alternative energy projects in which a substantial cash collateral account has been established to mitigate credit risk. Due to the nature of the transactions and significant cash collateral positions, these credits are evaluated individually. The balance of these pass rated cash collateral loans totaled $70.8 million and $120.7 million at March 31, 2023 and at September 30, 2022, respectively.

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 Office of the Comptroller of the Currency (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.

Loans and leases, or portions thereof, are generally charged off when collection of principal becomes doubtful. Typically, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 120 days or more for consumer credit products and leases, and 90 days or more for commercial finance loans. Action is taken to charge off electronic return originator ("ERO") loans if such loans have not been collected by the end of June and refund advance loans if such loans have not been collected by the end of the calendar year. Nonaccrual 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. The outstanding balances of consumer finance loans and tax services loans were $148.6 million and $61.6 million at March 31, 2023, respectively, and $169.7 million and $9.1 million at September 30, 2022, respectively. The amortized cost basis of loans and leases by asset classification and year of origination was as follows:

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
At March 31, 2023	2023		2022		2021		2020		2019		Prior
Term lending
Pass	$	327,992	$	255,383	$	139,016	$	94,309	$	23,151	$	104,467	$	—	$	944,318
Watch	32,477		45,370		53,429		13,430		7,324		9,780		—		161,810
Special mention	1,226		6,498		20,181		212		1,263		1,120		—		30,500
Substandard	5,986		31,094		21,996		25,660		5,632		4,576		—		94,944
Doubtful	—		1,553		1,130		804		307		87		—		3,881
Total	367,681		339,898		235,752		134,415		37,677		120,030		—		1,235,453
Asset based lending
Pass	—		—		—		—		—		—		178,436		178,436
Watch	—		—		—		—		—		—		153,311		153,311
Special mention	—		—		—		—		—		—		20,731		20,731
Substandard	—		—		—		—		—		—		24,828		24,828
Doubtful	—		—		—		—		—		—		659		659
Total	—		—		—		—		—		—		377,965		377,965
Factoring
Pass	—		—		—		—		—		—		246,196		246,196
Watch	—		—		—		—		—		—		66,221		66,221
Special mention	—		—		—		—		—		—		10,973		10,973
Substandard	—		—		—		—		—		—		15,494		15,494
Total	—		—		—		—		—		—		338,884		338,884
Lease financing
Pass	6,352		21,369		23,704		38,157		2,776		4,761		—		97,119
Watch	2,625		11,398		8,506		5,906		5,425		5,509		—		39,369
Special mention	—		—		805		556		366		53		—		1,780
Substandard	—		8,142		5,122		4,400		4,875		8,932		—		31,471
Doubtful	—		—		521		206		43		136		—		906
Total	8,977		40,909		38,658		49,225		13,485		19,391		—		170,645
Insurance premium finance
Pass	363,501		72,407		79		6		—		—		—		435,993
Watch	221		578		—		—		—		—		—		799
Special mention	13		353		—		—		—		—		—		366
Substandard	83		213		—		—		—		—		—		296

Doubtful	—		246		—		—		—		—		—		246
Total	363,818		73,797		79		6		—		—		—		437,700
SBA/USDA
Pass	70,249		199,198		31,679		45,386		9,041		17,908		—		373,461
Watch	—		—		—		55		400		2,843		—		3,298
Special mention	—		—		—		—		210		—		—		210
Substandard	252		1,540		78		7,037		8,489		11,247		—		28,643
Total	70,501		200,738		31,757		52,478		18,140		31,998		—		405,612
Other commercial finance
Pass	—		18,900		30,637		1,003		10,176		69,598		—		130,314
Watch	1,735		—		—		—		—		—		—		1,735
Substandard	5,214		478		28,400		—		—		261		—		34,353
Total	6,949		19,378		59,037		1,003		10,176		69,859		—		166,402
Warehouse finance
Pass	—		—		—		—		—		—		377,036		377,036
Total	—		—		—		—		—		—		377,036		377,036
Total loans and leases
Pass	768,094		567,257		225,115		178,861		45,144		196,734		801,668		2,782,873
Watch	37,058		57,346		61,935		19,391		13,149		18,132		219,532		426,543
Special mention	1,239		6,851		20,986		768		1,839		1,173		31,704		64,560
Substandard	11,535		41,467		55,596		37,097		18,996		25,016		40,322		230,029
Doubtful	—		1,799		1,651		1,010		350		223		659		5,692
Total	$	817,926	$	674,720	$	365,283	$	237,127	$	79,478	$	241,278	$	1,093,885	$	3,509,697

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
At September 30, 2022	2022		2021		2020		2019		2018		Prior
Term lending
Pass	$	246,627	$	240,018	$	105,170	$	60,417	$	89,072	$	61,229	$	—	$	802,533
Watch	45,539		24,318		45,052		11,698		21,077		9,799		—		157,483
Special mention	9,500		24,885		14,300		2,861		619		242		—		52,407
Substandard	10,627		16,694		12,248		23,266		10,457		2,255		—		75,547
Doubtful	175		407		469		872		204		192		—		2,319
Total	312,468		306,322		177,239		99,114		121,429		73,717		—		1,090,289
Asset based lending
Pass	—		—		—		—		—		—		154,494		154,494
Watch	—		—		—		—		—		—		162,990		162,990
Special mention	—		—		—		—		—		—		13,770		13,770
Substandard	—		—		—		—		—		—		20,442		20,442
Total	—		—		—		—		—		—		351,696		351,696
Factoring
Pass	—		—		—		—		—		—		254,883		254,883
Watch	—		—		—		—		—		—		86,219		86,219
Special mention	—		—		—		—		—		—		9,174		9,174
Substandard	—		—		—		—		—		—		22,319		22,319
Total	—		—		—		—		—		—		372,595		372,595
Lease financing
Pass	7,407		38,818		31,408		26,552		12,361		823		—		117,369
Watch	8,799		17,098		10,284		6,655		2,899		151		—		45,886
Special mention	151		6,151		2,644		481		2,876		2,811		—		15,114
Substandard	825		9,486		11,819		7,273		1,245		—		—		30,648
Doubtful	144		163		1,280		88		—		—		—		1,675
Total	17,326		71,716		57,435		41,049		19,381		3,785		—		210,692
Insurance premium finance

Pass	478,504		307		8		—		—		—		—		478,819
Watch	539		7		—		—		—		—		—		546
Special mention	169		40		—		—		—		—		—		209
Substandard	106		46		—		—		—		—		—		152
Doubtful	14		14		—		—		—		—		—		28
Total	479,332		414		8		—		—		—		—		479,754
SBA/USDA
Pass	54,512		111,907		40,474		56,538		28,874		24,305		—		316,610
Watch	—		13,836		1,266		702		—		710		—		16,514
Special mention	—		211		—		869		—		—		—		1,080
Substandard	4,149		10,968		4,278		—		1,094		4,545		—		25,034
Total	58,661		136,922		46,018		58,109		29,968		29,560		—		359,238
Other commercial finance
Pass	5,886		13,607		26,040		20,458		23,098		40,782		—		129,871
Substandard	—		9,538		—		—		—		20,000		—		29,538
Total	5,886		23,145		26,040		20,458		23,098		60,782		—		159,409
Warehouse finance
Pass	—		—		—		—		—		—		294,350		294,350
Special mention	—		—		—		—		—		—		32,500		32,500
Total	—		—		—		—		—		—		326,850		326,850
Total loans and leases
Pass	792,936		404,657		203,100		163,965		153,405		127,139		703,727		2,548,929
Watch	54,877		55,259		56,602		19,055		23,976		10,660		249,209		469,638
Special mention	9,820		31,287		16,944		4,211		3,495		3,053		55,444		124,254
Substandard	15,707		46,732		28,345		30,539		12,796		26,800		42,761		203,680
Doubtful	333		584		1,749		960		204		192		—		4,022
Total	$	873,673	$	538,519	$	306,740	$	218,730	$	193,876	$	167,844	$	1,051,141	$	3,350,523

Past due loans and leases were as follows:

(Dollars in thousands)	Accruing and Nonaccruing Loans and Leases												Nonperforming Loans and Leases
At March 31, 2023	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Nonaccrual Balance		Total
Loans held for sale	$	—	$	—	$	—	$	—	$	24,780	$	24,780	$	—	$	—	$	—
Term lending	26,127		1,170		6,530		33,827		1,201,626		1,235,453		1,952		10,891		12,843
Asset based lending	—		—		—		—		377,965		377,965		—		3,493		3,493
Factoring	—		—		—		—		338,884		338,884		—		512		512
Lease financing	3,154		—		2,378		5,532		165,113		170,645		1,807		3,323		5,130
Insurance premium finance	2,741		698		1,871		5,310		432,390		437,700		1,871		—		1,871
SBA/USDA	2,043		2,291		252		4,586		401,026		405,612		—		1,366		1,366
Other commercial finance	—		—		94		94		166,308		166,402		94		—		94
Commercial finance	34,065		4,159		11,125		49,349		3,083,312		3,132,661		5,724		19,585		25,309
Consumer credit products	2,653		2,248		2,140		7,041		113,698		120,739		2,140		—		2,140
Other consumer finance	608		1,609		1,077		3,294		24,615		27,909		1,077		—		1,077
Consumer finance	3,261		3,857		3,217		10,335		138,313		148,648		3,217		—		3,217
Tax services	639		—		—		639		60,914		61,553		—		—		—
Warehouse finance	—		—		—		—		377,036		377,036		—		—		—
Total loans and leases held for investment	37,965		8,016		14,342		60,323		3,659,575		3,719,898		8,941		19,585		28,526
Total loans and leases	$	37,965	$	8,016	$	14,342	$	60,323	$	3,684,355	$	3,744,678	$	8,941	$	19,585	$	28,526

(Dollars in thousands)	Accruing and Nonaccruing Loans and Leases												Nonperforming Loans and Leases
At September 30, 2022	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Nonaccrual Balance		Total
Loans held for sale	$	—	$	—	$	—	$	—	$	21,071	$	21,071	$	—	$	—	$	—
Term lending	14,066		2,576		4,458		21,100		1,069,189		1,090,289		2,035		7,576		9,611
Asset based lending	—		—		68		68		351,628		351,696		39		29		68
Factoring	—		—		—		—		372,595		372,595		—		569		569
Lease financing	8,265		2,253		1,714		12,232		198,460		210,692		440		3,750		4,190
Insurance premium finance	2,550		1,379		1,628		5,557		474,197		479,754		1,628		—		1,628
SBA/USDA	—		—		—		—		359,238		359,238		—		1,451		1,451
Other commercial finance	—		—		—		—		159,409		159,409		—		—		—
Commercial finance	24,881		6,208		7,868		38,957		2,984,716		3,023,673		4,142		13,375		17,517
Consumer credit products	3,209		2,558		2,669		8,436		135,917		144,353		2,669		—		2,669
Other consumer finance	113		51		124		288		25,018		25,306		124		—		124
Consumer finance	3,322		2,609		2,793		8,724		160,935		169,659		2,793		—		2,793
Tax services	—		—		8,873		8,873		225		9,098		8,873		—		8,873
Warehouse finance	—		—		—		—		326,850		326,850		—		—		—
Total loans and leases held for investment	28,203		8,817		19,534		56,554		3,472,726		3,529,280		15,808		13,375		29,183
Total loans and leases	$	28,203	$	8,817	$	19,534	$	56,554	$	3,493,797	$	3,550,351	$	15,808	$	13,375	$	29,183

Nonaccrual loans and leases by year of origination were as follows:

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total		Nonaccrual with No ACL
At March 31, 2023	2023		2022		2021		2020		2019		Prior
Term lending	$	103	$	5,123	$	2,507	$	2,351	$	739	$	68	$	—	$	10,891	$	2,370
Asset based lending	—		—		—		—		—		—		3,493		3,493		—
Factoring	—		—		—		—		—		—		512		512		—
Lease financing	—		—		609		891		1,681		142		—		3,323		645
SBA/USDA	—		1,114		—		—		—		252		—		1,366		1,114
Commercial finance	103		6,237		3,116		3,242		2,420		462		4,005		19,585		4,129
Total nonaccrual loans and leases	$	103	$	6,237	$	3,116	$	3,242	$	2,420	$	462	$	4,005	$	19,585	$	4,129

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total		Nonaccrual with No ACL
At September 30, 2022	2022		2021		2020		2019		2018		Prior
Term lending	$	251	$	1,110	$	1,964	$	989	$	3,096	$	166	$	—	$	7,576	$	2,885
Asset based lending	—		—		—		—		—		—		29		29		—
Factoring	—		—		—		—		—		—		569		569		550
Lease financing	977		310		2,442		13		8		—		—		3,750		—
SBA/USDA	—		—		1,199		—		—		252		—		1,451		1,199
Commercial finance	1,228		1,420		5,605		1,002		3,104		418		598		13,375		4,634
Total nonaccrual loans and leases	$	1,228	$	1,420	$	5,605	$	1,002	$	3,104	$	418	$	598	$	13,375	$	4,634

Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows:

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
At March 31, 2023	2023		2022		2021		2020		2019		Prior
Term lending	$	1,346	$	35	$	132	$	211	$	40	$	188	$	—	$	1,952
Lease financing	90		468		953		198		30		68		—		1,807
Insurance premium finance	—		1,849		10		8		4		—		—		1,871
Other commercial finance	—		—		—		—		—		94		—		94
Commercial finance	1,436		2,352		1,095		417		74		350		—		5,724
Consumer credit products	174		1,437		404		92		30		3		—		2,140
Other consumer finance	1,032		—		—		—		—		—		45		1,077
Consumer finance	1,206		1,437		404		92		30		3		45		3,217
Total 90 days or more delinquent and accruing	$	2,642	$	3,789	$	1,499	$	509	$	104	$	353	$	45	$	8,941

	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
At September 30, 2022	2022		2021		2020		2019		2018		Prior
Term lending	$	207	$	720	$	716	$	130	$	70	$	192	$	—	$	2,035
Asset based lending	—		—		—		—		—		—		39		39
Lease financing	8		158		98		131		45		—		—		440
Insurance premium finance	1,513		110		5		—		—		—		—		1,628
Commercial finance	1,728		988		819		261		115		192		39		4,142
Consumer credit products	2,123		481		42		23		—		—		—		2,669
Other consumer finance	—		124		—		—		—		—		—		124
Consumer finance	2,123		605		42		23		—		—		—		2,793
Tax services	8,873		—		—		—		—		—		—		8,873
Total 90 days or more delinquent and accruing	$	12,724	$	1,593	$	861	$	284	$	115	$	192	$	39	$	15,808

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 nonaccrual until later delinquency, usually 120 days past due.

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

	Three Months Ended March 31,				Six Months Ended March 31,
(Dollars in thousands)	2023		2022		2022		2021
Term lending	$	9,758	$	10,688	$	9,277	$	12,305
Asset based lending	5,292		5,993		4,782		5,002
Factoring	523		9,791		615		11,019
Lease financing	3,627		3,020		3,625		3,027
SBA/USDA	1,379		1,464		1,400		840
Commercial finance	20,579		30,956		19,699		32,193
Total loans and leases	$	20,579	$	30,956	$	19,699	$	32,193

The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2023 and 2022 was not significant.

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. No loans were modified in a TDR during the three months ended March 31, 2023. There were $0.2 million of commercial finance loans and $0.2 million of consumer finance loans that were modified in a TDR during the three months ended March 31, 2022, all of which were modified to extend the term of the loan.

During the six months ended March 31, 2023, there were no loans that were modified in a TDR. There were $10.3 million of commercial finance loans and $0.2 million of consumer finance loans that were modified in a TDR during the six months ended March 31, 2022, all of which were modified to extend the term of the loan.

During the three months ended March 31, 2023, there was an immaterial amount of commercial finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the three months ended March 31, 2022, the Company had $0.3 million of commercial finance loans and $0.3 million of consumer finance loans that were modified in a TDR with the previous 12 months and for which there was a payment default.

During the six months ended March 31, 2023, the Company had $0.1 million of commercial finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the six months ended March 31, 2022, the Company had $2.6 million of commercial finance loans and $0.8 million of consumer finance 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 six months ended March 31, 2023 and March 31, 2022.