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LOANS AND LEASES, NET (Tables)
 12 Months Ended
Sep. 30, 2023
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Loans and leases consist of the following:
At September 30,
(Dollars in thousands)20232022
Term lending$1,308,133 $1,090,289 
Asset-based lending382,371 351,696 
Factoring358,344 372,595 
Lease financing183,392 210,692 
Insurance premium finance800,077 479,754 
SBA/USDA524,750 359,238 
Other commercial finance166,091 159,409 
Commercial finance3,723,158 3,023,673 
Consumer finance254,416 169,659 
Tax services5,192 9,098 
Warehouse finance376,915 326,850 
Total loans and leases4,359,681 3,529,280 
Net deferred loan origination costs6,435 7,025 
Total gross loans and leases4,366,116 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)20232022
Loans Purchased
Loans held for investment:
Commercial finance$480 $3,098 
Warehouse finance214,786 112,255 
Total purchases$215,266 $115,353 
Loans Sold
Loans held for sale:
Commercial finance$16,610 $50,848 
Consumer finance1,123,271 855,291 
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)20232022
Minimum lease payments receivable$191,807 $216,880 
Unguaranteed residual assets12,709 13,037 
Unamortized initial direct costs141 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)20232022
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 payments53,551 46,017 
Other(1)
3,964 5,982 
Total leasing and equipment finance noninterest income57,515 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 
202547,205 
202625,478 
202716,300 
202813,378 
Thereafter12,547 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases191,807 
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)20232022
Beginning balance$45,947 $68,281 
Provision for credit losses57,448 28,862 
Charge-offs(59,898)(61,061)
Recoveries6,208 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 BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $10,541 $(11,295)$1,819 $25,686 
Asset-based lending1,050 4,005 (2,873)556 2,738 
Factoring6,556 1,523 (1,545)32 6,566 
Lease financing5,902 (1,424)(1,479)303 3,302 
Insurance premium finance1,450 2,349 (1,659)497 2,637 
SBA/USDA3,263 (296)(43)38 2,962 
Other commercial finance1,310 1,779 — — 3,089 
Commercial finance44,152 18,477 (18,894)3,245 46,980 
Consumer finance1,463 3,146 (2,263)— 2,346 
Tax services5 35,775 (38,741)2,963 2 
Warehouse finance327 50 — — 377 
Total loans and leases45,947 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 BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $4,850 $(12,629)$3,049 $24,621 
Asset-based lending1,726 (1,092)(16)432 1,050 
Factoring3,997 11,699 (11,057)1,917 6,556 
Lease financing7,629 (2,062)(301)636 5,902 
Insurance premium finance1,394 597 (767)226 1,450 
SBA/USDA2,978 863 (652)74 3,263 
Other commercial finance1,168 142 — — 1,310 
Commercial finance48,243 14,997 (25,422)6,334 44,152 
Consumer finance7,354 (1,449)(4,787)345 1,463 
Tax services2 28,093 (30,852)2,762 5 
Warehouse finance420 (93)— — 327 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 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, 2023At September 30, 2022
Term lending$3,516 $2,885 
Asset-based lending19,226 — 
Factoring1,133 550 
Lease financing630 2,787 
SBA/USDA750 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)20232022
Term lending$11,494 $11,320 
Asset-based lending10,295 3,754 
Factoring578 6,344 
Lease financing2,852 3,278 
SBA/USDA1,244 1,244 
Commercial finance26,463 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 YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Term lending
Pass$301,778 $149,190 $99,677 $73,132 $14,368 $323,482 $— $961,627 
Watch35,277 51,036 58,041 12,230 4,483 18,931 — 179,998 
Special mention15,314 13,853 20,463 723 2,932 11,300 — 64,585 
Substandard4,604 30,451 14,729 24,613 3,872 16,597 — 94,866 
Doubtful200 2,655 1,691 1,121 165 1,225 — 7,057 
Total357,173 247,185 194,601 111,819 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
Pass7,716 15,941 15,167 27,489 4,036 50,688 — 121,037 
Watch626 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 
Total8,342 28,360 35,733 36,119 8,872 65,966 — 183,392 
Insurance premium finance
Pass797,267 1,210 — — — — — 798,477 
Watch858 34 — — — — — 892 
Special mention250 15 — — — — — 265 
Substandard91 20 — — — — — 111 
Doubtful180 152 — — — — — 332 
Total798,646 1,431 — — — — — 800,077 
SBA/USDA
Pass158,675 148,525 26,244 36,274 8,798 18,252 — 396,768 
Watch49,010 48,833 658 51 357 2,572 — 101,481 
Special mention— — 530 — — — — 530 
Substandard252 2,356 1,718 5,418 8,509 7,718 — 25,971 
Total207,937 199,714 29,150 41,743 17,664 28,542 — 524,750 
Other commercial finance
Pass2,330 18,927 32,737 1,137 10,122 69,927 — 135,180 
Watch1,742 — — — — — — 1,742 
Substandard2,753 450 25,708 — — 258 — 29,169 
Total6,825 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
Pass1,267,766 333,793 173,825 138,032 37,324 462,349 809,413 3,222,502 
Watch87,513 110,339 71,265 16,775 6,419 21,725 245,076 559,112 
Special mention15,564 13,868 21,840 1,138 3,127 11,300 35,274 102,111 
Substandard7,700 35,260 49,237 33,691 15,443 39,496 27,366 208,193 
Doubtful380 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 YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 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
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 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 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 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
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 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 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$626 $549 $306 $1,481 $76,298 $77,779 $306 $— $306 
Term lending13,898 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 financing6,865 158 4,828 11,851 171,541 183,392 4,242 1,666 5,908 
Insurance premium finance2,159 1,262 2,339 5,760 794,317 800,077 2,339 — 2,339 
SBA/USDA512 — 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 finance23,434 9,143 20,352 52,929 3,670,229 3,723,158 11,242 37,372 48,614 
Consumer finance2,992 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 investment26,426 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 $56,212 
At September 30, 2022
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 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 financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 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 finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer finance3,322 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 investment28,203 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 YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202320232022202120202019Prior
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 finance748 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 YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202220222021202020192018Prior
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 financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 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 YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Loans held for sale$306 $— $— $— $— $— $— $306 
Term lending1,290 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 finance1,290 2,275 1,593 1,850 2,157 2,077 — 11,242 
Consumer finance891 1,045 246 — — — 28 2,210 
Tax services5,082 — — — — — — 5,082 
Total loans and leases held for investment7,263 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 YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset-based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808