LOANS AND LEASES, NET (Tables)

3 Months Ended

Dec. 31, 2018

Loans and Leases Receivable Disclosure [Abstract]

Sales-type Lease, Lease Income

The net investment in direct financing and sales-type leases is comprised of the following as of December 31, 2018 and September 30, 2018.

	December 31, 2018			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	330,273		$	301,835
Estimated residual value of leased equipment	12,460			12,406
Unamortized initial direct costs	(9		)	(3		)
Premium on acquired leases	16			26
Unearned income	(51,851		)	(48,949		)
Net investment in direct financing and sales-type leases	$	290,889		$	265,315

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

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of December 31, 2018.

	As of December 31, 2018
	(Dollars in thousands)
2019	$	92,158
2020	96,326
2021	73,057
2022	43,861
2023	21,037
2024 and thereafter	3,834
Total	$	330,273

Schedule of Loans Receivable

Loans and leases at December 31, 2018 and September 30, 2018 were as follows:

(Dollars in Thousands)	December 31, 2018			September 30, 2018
National Lending
Asset based lending	$	554,072		$	477,917
Factoring	284,912			284,221
Lease financing	290,889			265,315
Insurance premium finance	330,712			337,877
SBA/USDA	67,893			59,374
Other commercial finance	89,402			85,145
Commercial finance	1,617,880			1,509,849
Consumer credit products	96,144			80,605
Other consumer finance	182,510			189,756
Consumer finance(1)	278,654			270,361
Tax services	76,575			1,073
Warehouse finance(1)	176,134			65,000
Total National Lending	2,149,243			1,846,283
Community Banking
Commercial real estate and operating	863,753			790,890
Consumer one-to-four family real estate and other	256,341			247,318
Agricultural real estate and operating	58,971			60,498
Total Community Banking	1,179,065			1,098,706
Total gross loans and leases	3,328,308			2,944,989
Allowance for loan and lease losses	(21,290		)	(13,040		)
Net deferred loan origination fees (costs)	1,190			(250		)
Total loans and leases, net(2)	$	3,308,208		$	2,931,699

⁽¹⁾ Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of December 31, 2018, the remaining balance of acquired loans and leases from the Crestmark acquisition was $889.0 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases were $10.1 million and $4.8 million, respectively. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

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

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of December 31, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	2,065	$	2,065	$	2,371	$	551,701	$	554,072
Factoring	134		928		1,062		1,680		283,232		284,912
Lease financing	—		1,084		1,084		5,000		285,889		290,889
Insurance premium finance	—		972		972		—		330,712		330,712
SBA/USDA	—		253		253		—		67,893		67,893
Other commercial finance	—		291		291		—		89,402		89,402
Commercial finance	134		5,593		5,727		9,051		1,608,829		1,617,880
Consumer credit products	—		1,151		1,151		—		96,144		96,144
Other consumer finance	—		4,222		4,222		—		182,510		182,510
Consumer finance	—		5,373		5,373		—		278,654		278,654
Tax services	—		1,546		1,546		—		76,575		76,575
Warehouse finance	—		176		176		—		176,134		176,134
Total National Lending	134		12,688		12,822		9,051		2,140,192		2,149,243
Community Banking
Commercial real estate and operating	—		6,570		6,570		402		863,351		863,753
Consumer one-to-four family real estate and other	—		719		719		138		256,203		256,341
Agricultural real estate and operating	—		1,179		1,179		1,511		57,460		58,971
Total Community Banking	—		8,468		8,468		2,051		1,177,014		1,179,065
Total	$	134	$	21,156	$	21,290	$	11,102	$	3,317,206	$	3,328,308

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment(1)		Ending balance: collectively evaluated for impairment(1)		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾ Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Asset Classification of Loans

The asset classification of loans and leases at December 31, 2018 and September 30, 2018 were as follows:

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
December 31, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	498,694	$	—	$	53,007	$	2,371	554,072
Factoring	244,992		—		38,240		1,680		284,912
Lease financing	284,239		—		1,650		5,000		290,889
Insurance premium finance	329,131		—		1,581		—		330,712
SBA/USDA	53,539		—		14,354		—		67,893
Other commercial finance	89,049		—		353		—		89,402
Commercial finance	1,499,644		—		109,185		9,051		1,617,880
Consumer credit products	96,144		—		—		—		96,144
Other consumer finance	182,510		—		—		—		182,510
Consumer finance	278,654		—		—		—		278,654
Tax services	76,575		—		—		—		76,575
Warehouse finance	176,134		—		—		—		176,134
Total National Lending	2,031,007		—		109,185		9,051		2,149,243
Community Banking
Commercial real estate and operating	848,456		15,297		—		—		863,753
Consumer one-to-four family real estate and other	254,458		1,496		308		79		256,341
Agricultural real estate and operating	40,558		1,590		4,836		11,987		58,971
Total Community Banking	1,143,472		18,383		5,144		12,066		1,179,065
Total loans and leases	$	3,174,479	$	18,383	$	114,329	$	21,117	$	3,328,308

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

Past Due Loans

Past due loans and leases at December 31, 2018 and September 30, 2018 were as follows:

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	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		Non-accrual balance		Total
December 31, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	739	$	—	$	336	$	1,075	$	552,997	$	554,072	$	—	$	1,007	$	1,007
Factoring	—		—		—		—		284,912		284,912		—		307		307
Lease financing	9,685		4,205		5,259		19,149		271,740		290,889		1,335		4,841		6,176
Insurance premium finance	1,579		789		2,796		5,164		325,548		330,712		2,796		—		2,796
SBA/USDA	483		—		—		483		67,410		67,893		—		—		—
Other commercial finance	—		—		—		—		89,402		89,402		—		—		—
Commercial finance	12,486		4,994		8,391		25,871		1,592,009		1,617,880		4,131		6,155		10,286
Consumer credit products	701		369		310		1,380		94,764		96,144		310		—		310
Other consumer finance	2,879		1,497		3,196		7,572		174,938		182,510		3,196		—		3,196
Consumer finance	3,580		1,866		3,506		8,952		269,702		278,654		3,506		—		3,506
Tax services	—		—		—		—		76,575		76,575		—		—		—
Warehouse finance	—		—		—		—		176,134		176,134		—		—		—
Total National Lending	16,066		6,860		11,897		34,823		2,114,420		2,149,243		7,637		6,155		13,792
Community Banking
Commercial real estate and operating	25		—		—		25		863,728		863,753		—		—		—
Consumer one-to-four family real estate and other	67		20		79		166		256,175		256,341		79		—		79
Agricultural real estate and operating	—		—		—		—		58,971		58,971		—		—		—
Total Community Banking	92		20		79		191		1,178,874		1,179,065		79		—		79
Total Loans and Leases	$	16,158	$	6,880	$	11,976	$	35,014	$	3,293,294	$	3,328,308	$	7,716	$	6,155	$	13,871

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	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		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

Impaired Loans

Impaired loans and leases at December 31, 2018 and September 30, 2018 were as follows:

December 31, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	2,371	$	2,871	$	—
Factoring	885		1,453		—
Lease financing	5,000		5,000		—
Commercial finance	8,256		9,324		—
Total National Lending	8,256		9,324		—
Community Banking
Commercial real estate and operating	402		402		—
Consumer one-to-four family real estate and other	138		138		—
Agricultural real estate and operating	1,511		1,511		—
Total Community Banking	2,051		2,051		—
Total	$	10,307	$	11,375	$	—
Loans and leases with a specific valuation allowance
National Lending
Factoring	$	795	$	795	$	134
Commercial finance	795		795		134
Total National Lending	795		795		134
Total	$	795	$	795	$	134

September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

The following table provides the average recorded investment in impaired loans and leases for the three month periods ended December 31, 2018 and 2017.

	December 31, 2018				December 31, 2017
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	1,726	$	79	$	—	$	—
Factoring	2,780		5		—		—
Lease financing	7,585		10		—		—
Commercial finance	12,091		94		—		—
Total National Lending	12,091		94		—		—
Community Banking
Commercial real estate and operating	404		4		975		5
Consumer one-to-four family real estate and other	139		2		100		2
Agricultural real estate and operating	1,473		25		351		14
Total Community Banking	2,016		31		1,426		21
Total loans and leases	$	14,107	$	125	$	1,426	$	21