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LOANS AND LEASES, NET

12 Months Ended

Sep. 30, 2022

Loans and Leases Receivable Disclosure [Abstract]

Loans and leases consist of the following:


	At September 30,
(Dollars in thousands)	2022		2021
Term lending	$	1,090,289	$	961,019
Asset based lending	351,696		300,225
Factoring	372,595		363,670
Lease financing	210,692		266,050
Insurance premium finance	479,754		428,867
SBA/USDA	359,238		247,756
Other commercial finance	159,409		157,908
Commercial finance	3,023,673		2,725,495
Consumer credit products	144,353		129,251
Other consumer finance	25,306		123,606
Consumer finance	169,659		252,857
Tax services	9,098		10,405
Warehouse finance	326,850		419,926
Community banking	—		199,132
Total loans and leases	3,529,280		3,607,815
Net deferred loan origination costs	7,025		1,748
Total gross loans and leases	3,536,305		3,609,563
Allowance for credit losses	(45,947)		(68,281)
Total loans and leases, net	$	3,490,358	$	3,541,282

During the fiscal years ended September 30, 2022 and 2021, the Company transferred $169.0 million and $188.6 million, respectively, of Community Banking loans to held for sale.

During the fiscal years ended September 30, 2022, the Company originated $985.3 million of other consumer finance and SBA/USDA loans 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.

The Company sold held for sale loans resulting in proceeds of $1.06 billion and gains on sale of $3.7 million during the fiscal year ended September 30, 2022. 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.

In connection with the Company's sale of the Bank's Community Bank division to Central Bank, the Company entered into a servicing agreement with Central Bank for the retained Community Bank loan portfolio that became effective on February 29, 2020 (the "Closing Date"). The Company recognized $0.2 million and $3.3 million for the fiscal years ended September 30, 2022 and 2021, respectively.

Since the Closing Date, the Company has entered into subsequent loan portfolio sale agreements with Central Bank and other third parties. The Company sold additional loans from the retained Community Bank portfolio in the amount of $192.5 million and $308.1 million for the fiscal years ended September 30, 2022 and 2021, respectively. All loans from the retained Community Bank portfolio have been sold as of December 31, 2021.

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2022		2021
Loans Purchased








Commercial finance	$	3,098	$	—


Warehouse finance	112,255		308,014
Community banking	—		3,318
Total purchases	$	115,353	$	311,332
Loans Sold
Loans held for sale:
Commercial finance	$	50,848	$	89,276
Consumer finance	855,291		494,585


Community banking	153,222		308,082
Loans held for investment:
Commercial finance	15,549		—
Consumer finance	77,456		—



Community banking	30,235		13,850
Total sales	$	1,182,601	$	905,793

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


	At September 30,
(Dollars in thousands)	2022		2021
Carrying amount	$	216,880	$	278,341
Unguaranteed residual assets	13,037		14,393
Unamortized initial direct costs	295		490
Unearned income	(19,225)		(26,684)
Total net investment in direct financing and sales-type leases	$	210,987	$	266,540

The components of total lease income were as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2022		2021
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	17,081	$	22,876

Leasing and equipment finance noninterest income
Lease income from operating lease payments	46,017		39,553
Profit recorded on commencement date on sales-type leases	—		337
Other(1)	5,982		4,986
Total leasing and equipment finance noninterest income	51,999		44,876
Total lease income	$	69,080	$	67,752

(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, 2022 were as follows:


(Dollars in thousands)
2023	$	95,608
2024	66,344
2025	34,657
2026	12,714
2027	5,495
Thereafter	2,062

Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	216,880
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type leases	$	216,880

The Company did not record any contingent rental income from direct financing and sales-type leases in the fiscal year ended September 30, 2022.

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 including geopolitical conflict, supply chain disruptions, inflation, and rising interest rates. 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 was as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2022		2021
Beginning balance	$	68,281	$	56,188
Impact of CECL adoption	—		12,773
Provision for credit losses	28,862		49,939
Charge-offs	(61,061)		(57,273)
Recoveries	9,865		6,654
Ending balance	$	45,947	$	68,281

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


	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 credit products	1,242		158		—		—		1,400
Other consumer finance	6,112		(1,607)		(4,787)		345		63
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.


	At September 30, 2021
(Dollars in thousands)	Beginning Balance		Impact of CECL Adoption		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for loan and lease losses:
Term lending	$	15,211	$	9,999	$	16,944	$	(14,090)	$	1,287	$	29,351
Asset based lending	1,406		164		933		(1,200)		423		1,726
Factoring	3,027		987		(1,192)		—		1,175		3,997
Lease financing	7,023		(556)		3,758		(2,969)		373		7,629
Insurance premium finance	2,129		(965)		(555)		(1,192)		1,977		1,394
SBA/USDA	940		2,720		(703)		—		21		2,978
Other commercial finance	182		364		622		—		—		1,168
Commercial finance	29,918		12,713		19,807		(19,451)		5,256		48,243
Consumer credit products	845		—		397		—		—		1,242
Other consumer finance	2,821		5,998		297		(3,324)		320		6,112
Consumer finance	3,666		5,998		694		(3,324)		320		7,354
Tax services	2		—		33,276		(34,354)		1,078		2
Warehouse finance	294		(1)		127		—		—		420
Community banking	22,308		(5,937)		(3,965)		(144)		—		12,262
Total loans and leases	56,188		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.

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, 2022		At September 30, 2021
Term lending	$	2,885	$	20,965

Factoring	550		1,268
Lease financing	2,787		3,882

SBA/USDA	1,199		—

Commercial finance(1)	7,421		26,115





Community banking	—		14,915
Total	$	7,421	$	41,030

(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. At September 30, 2022, the balance of these pass rated cash collateral loans totaled $120.7 million.

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. Up to January 1, 2022, when this relief ended, if all payments were less than 30 days past due prior to the onset of the pandemic effects, the loan or lease was not be reported as past due during the deferral or forbearance period. As of September 30, 2022, the Company had no loans and leases that were in active deferment. 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.

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.

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, 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 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 $169.7 million and $9.1 million at September 30, 2022, respectively, and $252.9 million and $10.4 million at September 30, 2021, 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 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


	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
At September 30, 2021	2021		2020		2019		2018		2017		Prior
Term lending
Pass	$	362,443	$	192,305	$	63,708	$	34,381	$	3,195	$	1,236	$	—	$	657,268
Watch	63,046		71,701		32,941		21,419		76		3,628		—		192,811
Special Mention	6,422		26,673		4,821		932		70		633		—		39,551
Substandard	18,569		16,810		26,920		3,529		928		641		—		67,397
Doubtful	252		1,673		1,756		311		—		—		—		3,992
Total	450,732		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

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
Pass	54,434		73,629		17,153		7,511		1,857		203		—		154,787
Watch	22,061		20,455		9,274		2,739		1,454		—		—		55,983
Special Mention	15,402		20,595		4,148		1,546		61		—		—		41,752
Substandard	479		4,765		4,981		831		25		—		—		11,081
Doubtful	—		6		2,402		38		1		—		—		2,447
Total	92,376		119,450		37,958		12,665		3,398		203		—		266,050
Insurance premium finance
Pass	428,131		144		9		—		—		—		—		428,284
Watch	262		5		—		—		—		—		—		267
Special Mention	58		5		—		—		—		—		—		63
Substandard	68		107		—		—		—		—		—		175
Doubtful	58		20		—		—		—		—		—		78
Total	428,577		281		9		—		—		—		—		428,867
SBA/USDA
Pass	110,122		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

Total	110,122		69,582		26,221		25,857		10,265		5,709		—		247,756
Other commercial finance
Pass	56,957		642		5,786		6,075		3,345		60,965		—		133,770
Watch	—		17,404		3,409		451		—		—		—		21,264

Substandard	466		—		—		273		837		1,299		—		2,875

Total	57,423		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
Pass	1,012,088		303,727		105,274		60,727		20,605		66,655		899,481		2,468,557
Watch	85,369		140,131		47,620		37,132		9,057		3,926		70,056		393,291
Special Mention	21,882		55,606		45,099		5,826		307		1,552		76,171		206,443
Substandard	19,584		25,613		90,900		63,338		17,891		8,762		38,113		264,201
Doubtful	310		1,822		4,158		5,770		1		—		—		12,061
Total	$	1,139,233	$	526,899	$	293,051	$	172,793	$	47,861	$	80,895	$	1,083,821	$	3,344,553

Past due loans and leases were as follows:


	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 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


	At September 30, 2021
	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	$	—	$	—	$	—	$	—	$	56,194	$	56,194	$	—	$	—	$	—

Term lending	11,879		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 financing	4,909		3,336		8,401		16,646		249,404		266,050		8,345		3,158		11,503
Insurance premium finance	1,415		375		599		2,389		426,478		428,867		599		—		599
SBA/USDA	66		974		987		2,027		245,729		247,756		987		—		987
Other commercial finance	—		—		—		—		157,908		157,908		—		—		—
Commercial finance	18,269		7,388		15,439		41,096		2,684,399		2,725,495		12,489		19,330		31,819
Consumer credit products	713		527		511		1,751		127,500		129,251		511		—		511
Other consumer finance	963		285		725		1,973		121,633		123,606		725		—		725
Consumer finance	1,676		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 investment	19,945		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

Nonaccrual loans and leases by year of origination at September 30, 2022 were as follows:


	Amortized Cost Basis
	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total		Nonaccrual with No ACL
(Dollars in thousands)	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

Nonaccrual loans and leases by year of origination at September 30, 2021 were as follows:


	Amortized Cost Basis
	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total		Nonaccrual with No ACL
(Dollars in thousands)	2021		2020		2019		2018		2017		Prior
Term lending	$	131	$	3,812	$	10,072	$	756	$	133	$	—	$	—	$	14,904	$	12,103
Asset based lending	—		—		—		—		—		—		—		—		—
Factoring	—		—		—		—		—		—		1,268		1,268		1,268
Lease financing	—		30		2,471		632		25		—		—		3,158		541



Commercial finance	131		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	$	32,245	$	13,912

Loans and leases that are 90 days or more delinquent and accruing by year of origination at September 30, 2022 were as follows:


	Amortized Cost Basis
	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
(Dollars in thousands)	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

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 Year												Revolving Loans and Leases		Total
(Dollars in thousands)	2021		2020		2019		2018		2017		Prior
Term lending	$	2,546	$	—	$	12	$	—	$	—	$	—	$	—	$	2,558


Lease financing	429		7,558		224		99		31		4		—		8,345
Insurance premium finance	468		131		—		—		—		—		—		599
SBA/USDA	—		987		—		—		—		—		—		987

Commercial finance	3,443		8,676		236		99		31		4		—		12,489
Consumer credit products	206		77		224		3		—		—		—		510
Other consumer finance	—		—		—		—		—		725		—		725
Consumer finance	206		77		224		3		—		725		—		1,235
Tax services	7,962		—		—		—		—		—		—		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.

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2022		2021
Term lending	$	11,320	$	14,623
Asset based lending	3,754		444
Factoring	6,344		757
Lease financing	3,278		3,029

SBA/USDA	1,244		550

Commercial finance	25,940		19,403





Community banking	—		16,231
Total loans and leases	$	25,940	$	35,634

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2022 and 2021 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. There were $10.5 million of commercial finance loans and $0.9 million of consumer finance loans that were modified in a TDR during the fiscal year ended September 30, 2022, all of which were modified to extend 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.

During the fiscal year ended September 30, 2022, the Company had $5.2 million of commercial finance loans and $1.1 million of consumer finance 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, 2021, the Company had $3.4 million of commercial finance loans and $0.3 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 fiscal years ended September 30, 2022 and September 30, 2021.