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LOANS AND LEASES, NET (Tables)

12 Months Ended

Sep. 30, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans and leases consist of the following:


	At September 30,
(Dollars in thousands)	2023		2022
Term lending	$	1,308,133	$	1,090,289
Asset-based lending	382,371		351,696
Factoring	358,344		372,595
Lease financing	183,392		210,692
Insurance premium finance	800,077		479,754
SBA/USDA	524,750		359,238
Other commercial finance	166,091		159,409
Commercial finance	3,723,158		3,023,673


Consumer finance	254,416		169,659
Tax services	5,192		9,098
Warehouse finance	376,915		326,850
Total loans and leases	4,359,681		3,529,280
Net deferred loan origination costs	6,435		7,025
Total gross loans and leases	4,366,116		3,536,305
Allowance for credit losses	(49,705)		(45,947)
Total loans and leases, net	$	4,316,411	$	3,490,358

Schedule of Loans Purchased and Sold by Portfolio Segment

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2023		2022
Loans Purchased





Loans held for investment:
Commercial finance	$	480	$	3,098


Warehouse finance	214,786		112,255
Total purchases	$	215,266	$	115,353
Loans Sold
Loans held for sale:
Commercial finance	$	16,610	$	50,848
Consumer finance	1,123,271		855,291


Community banking	—		153,222
Loans held for investment:
Commercial finance	—		15,549
Consumer finance	—		77,456


Community banking	—		30,235
Total sales	$	1,139,881	$	1,182,601

Sales-type Lease, Lease Income

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


	At September 30,
(Dollars in thousands)	2023		2022
Minimum lease payments receivable	$	191,807	$	216,880
Unguaranteed residual assets	12,709		13,037
Unamortized initial direct costs	141		295
Unearned income	(21,124)		(19,225)
Total net investment in direct financing and sales-type leases	$	183,533	$	210,987

Operating Lease, Lease Income

The components of total lease income were as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2023		2022
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	13,536	$	17,081

Leasing and equipment finance noninterest income
Lease income from operating lease payments	53,551		46,017

Other(1)	3,964		5,982
Total leasing and equipment finance noninterest income	57,515		51,999
Total lease income	$	71,051	$	69,080
(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.

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at September 30, 2023 were as follows:


(Dollars in thousands)
2024	$	76,899
2025	47,205
2026	25,478
2027	16,300
2028	13,378
Thereafter	12,547

Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	191,807
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type leases	$	191,807

Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans

Activity in the allowance for credit losses was as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2023		2022
Beginning balance	$	45,947	$	68,281
Provision for credit losses	57,448		28,862
Charge-offs	(59,898)		(61,061)
Recoveries	6,208		9,865
Ending balance	$	49,705	$	45,947

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


	At September 30, 2023
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	24,621	$	10,541	$	(11,295)	$	1,819	$	25,686
Asset-based lending	1,050		4,005		(2,873)		556		2,738
Factoring	6,556		1,523		(1,545)		32		6,566
Lease financing	5,902		(1,424)		(1,479)		303		3,302
Insurance premium finance	1,450		2,349		(1,659)		497		2,637
SBA/USDA	3,263		(296)		(43)		38		2,962
Other commercial finance	1,310		1,779		—		—		3,089
Commercial finance	44,152		18,477		(18,894)		3,245		46,980


Consumer finance	1,463		3,146		(2,263)		—		2,346
Tax services	5		35,775		(38,741)		2,963		2
Warehouse finance	327		50		—		—		377
Total loans and leases	45,947		57,448		(59,898)		6,208		49,705
Unfunded commitments(1)	366		(94)		—		—		272
Total	$	46,313	$	57,354	$	(59,898)	$	6,208	$	49,977
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.


	At September 30, 2022
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	29,351	$	4,850	$	(12,629)	$	3,049	$	24,621
Asset-based lending	1,726		(1,092)		(16)		432		1,050
Factoring	3,997		11,699		(11,057)		1,917		6,556
Lease financing	7,629		(2,062)		(301)		636		5,902
Insurance premium finance	1,394		597		(767)		226		1,450
SBA/USDA	2,978		863		(652)		74		3,263
Other commercial finance	1,168		142		—		—		1,310
Commercial finance	48,243		14,997		(25,422)		6,334		44,152


Consumer finance	7,354		(1,449)		(4,787)		345		1,463
Tax services	2		28,093		(30,852)		2,762		5
Warehouse finance	420		(93)		—		—		327
Community banking	12,262		(12,686)		—		424		—
Total loans and leases	68,281		28,862		(61,061)		9,865		45,947
Unfunded commitments(1)	690		(324)		—		—		366
Total	$	68,971	$	28,538	$	(61,061)	$	9,865	$	46,313
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.

Impaired Loans

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, 2023		At September 30, 2022
Term lending	$	3,516	$	2,885
Asset-based lending	19,226		—
Factoring	1,133		550
Lease financing	630		2,787

SBA/USDA	750		1,199

Commercial finance(1)	25,255		7,421





Total	$	25,255	$	7,421
(1) For Commercial Finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets.

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2023		2022
Term lending	$	11,494	$	11,320
Asset-based lending	10,295		3,754
Factoring	578		6,344
Lease financing	2,852		3,278

SBA/USDA	1,244		1,244

Commercial finance	26,463		25,940





Total loans and leases	$	26,463	$	25,940

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2023 and 2022 was not significant.

Asset Classification of Loans

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 September 30, 2023	2023		2022		2021		2020		2019		Prior
Term lending
Pass	$	301,778	$	149,190	$	99,677	$	73,132	$	14,368	$	323,482	$	—	$	961,627
Watch	35,277		51,036		58,041		12,230		4,483		18,931		—		179,998
Special mention	15,314		13,853		20,463		723		2,932		11,300		—		64,585
Substandard	4,604		30,451		14,729		24,613		3,872		16,597		—		94,866
Doubtful	200		2,655		1,691		1,121		165		1,225		—		7,057
Total	357,173		247,185		194,601		111,819		25,820		371,535		—		1,308,133
Asset-based lending
Pass	—		—		—		—		—		—		161,744		161,744
Watch	—		—		—		—		—		—		174,243		174,243
Special mention	—		—		—		—		—		—		26,382		26,382
Substandard	—		—		—		—		—		—		19,501		19,501
Doubtful	—		—		—		—		—		—		501		501
Total	—		—		—		—		—		—		382,371		382,371
Factoring
Pass	—		—		—		—		—		—		270,754		270,754
Watch	—		—		—		—		—		—		70,833		70,833
Special mention	—		—		—		—		—		—		8,892		8,892
Substandard	—		—		—		—		—		—		7,865		7,865

Total	—		—		—		—		—		—		358,344		358,344
Lease financing
Pass	7,716		15,941		15,167		27,489		4,036		50,688		—		121,037
Watch	626		10,436		12,566		4,494		1,579		222		—		29,923
Special mention	—		—		847		415		195		—		—		1,457
Substandard	—		1,983		7,082		3,660		3,062		14,923		—		30,710
Doubtful	—		—		71		61		—		133		—		265
Total	8,342		28,360		35,733		36,119		8,872		65,966		—		183,392
Insurance premium finance
Pass	797,267		1,210		—		—		—		—		—		798,477
Watch	858		34		—		—		—		—		—		892
Special mention	250		15		—		—		—		—		—		265
Substandard	91		20		—		—		—		—		—		111
Doubtful	180		152		—		—		—		—		—		332
Total	798,646		1,431		—		—		—		—		—		800,077
SBA/USDA


Pass	158,675		148,525		26,244		36,274		8,798		18,252		—		396,768
Watch	49,010		48,833		658		51		357		2,572		—		101,481
Special mention	—		—		530		—		—		—		—		530
Substandard	252		2,356		1,718		5,418		8,509		7,718		—		25,971

Total	207,937		199,714		29,150		41,743		17,664		28,542		—		524,750
Other commercial finance
Pass	2,330		18,927		32,737		1,137		10,122		69,927		—		135,180
Watch	1,742		—		—		—		—		—		—		1,742

Substandard	2,753		450		25,708		—		—		258		—		29,169

Total	6,825		19,377		58,445		1,137		10,122		70,185		—		166,091
Warehouse finance
Pass	—		—		—		—		—		—		376,915		376,915




Total	—		—		—		—		—		—		376,915		376,915
Total loans and leases
Pass	1,267,766		333,793		173,825		138,032		37,324		462,349		809,413		3,222,502
Watch	87,513		110,339		71,265		16,775		6,419		21,725		245,076		559,112
Special mention	15,564		13,868		21,840		1,138		3,127		11,300		35,274		102,111
Substandard	7,700		35,260		49,237		33,691		15,443		39,496		27,366		208,193
Doubtful	380		2,807		1,762		1,182		165		1,358		501		8,155
Total	$	1,378,923	$	496,067	$	317,929	$	190,818	$	62,478	$	536,228	$	1,117,630	$	4,100,073


	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

Past due loans and leases were as follows:


	At September 30, 2023
	Accruing and Nonaccruing Loans and Leases												Nonperforming Loans and Leases
(Dollars in thousands)	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	$	626	$	549	$	306	$	1,481	$	76,298	$	77,779	$	306	$	—	$	306

Term lending	13,898		7,723		11,136		32,757		1,275,376		1,308,133		3,737		15,324		19,061
Asset-based lending	—		—		123		123		382,248		382,371		—		18,082		18,082
Factoring	—		—		—		—		358,344		358,344		—		1,298		1,298
Lease financing	6,865		158		4,828		11,851		171,541		183,392		4,242		1,666		5,908
Insurance premium finance	2,159		1,262		2,339		5,760		794,317		800,077		2,339		—		2,339
SBA/USDA	512		—		1,835		2,347		522,403		524,750		833		1,002		1,835
Other commercial finance	—		—		91		91		166,000		166,091		91		—		91
Commercial finance	23,434		9,143		20,352		52,929		3,670,229		3,723,158		11,242		37,372		48,614


Consumer finance	2,992		2,425		2,210		7,627		246,789		254,416		2,210		—		2,210
Tax services	—		—		5,082		5,082		110		5,192		5,082		—		5,082
Warehouse finance	—		—		—		—		376,915		376,915		—		—		—
Total loans and leases held for investment	26,426		11,568		27,644		65,638		4,294,043		4,359,681		18,534		37,372		55,906
Total loans and leases	$	27,052	$	12,117	$	27,950	$	67,119	$	4,370,341	$	4,437,460	$	18,840	$	37,372	$	56,212


	At September 30, 2022
	Accruing and Nonaccruing Loans and Leases												Nonperforming Loans and Leases
(Dollars in thousands)	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 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

Financing Receivable, Nonaccrual

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 September 30, 2023	2023		2022		2021		2020		2019		Prior
Term lending	$	748	$	4,942	$	2,933	$	2,165	$	3,134	$	1,402	$	—	$	15,324	$	—
Asset-based lending	—		—		—		—		—		—		18,082		18,082		—
Factoring	—		—		—		—		—		—		1,298		1,298		—
Lease financing	—		—		446		660		—		560		—		1,666		1

SBA/USDA	—		750		—		—		—		252		—		1,002		—

Commercial finance	748		5,692		3,379		2,825		3,134		2,214		19,380		37,372		1





Total nonaccrual loans and leases	$	748	$	5,692	$	3,379	$	2,825	$	3,134	$	2,214	$	19,380	$	37,372	$	1


	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 September 30, 2023	2023		2022		2021		2020		2019		Prior
Loans held for sale	$	306	$	—	$	—	$	—	$	—	$	—	$	—	$	306
Term lending	1,290		1,371		500		233		29		314		—		3,737


Lease financing	—		490		979		784		1,794		195		—		4,242
Insurance premium finance	—		414		114		—		334		1,477		—		2,339
SBA/USDA	—		—		—		833		—		—		—		833
Other commercial finance	—		—		—		—		—		91		—		91
Commercial finance	1,290		2,275		1,593		1,850		2,157		2,077		—		11,242


Consumer finance	891		1,045		246		—		—		—		28		2,210
Tax services	5,082		—		—		—		—		—		—		5,082

Total loans and leases held for investment	7,263		3,320		1,839		1,850		2,157		2,077		28		18,534
Total 90 days or more delinquent and accruing	$	7,569	$	3,320	$	1,839	$	1,850	$	2,157	$	2,077	$	28	$	18,840


	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 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