XML 48 R34.htm IDEA: XBRL DOCUMENT v3.22.2.2
LOANS AND LEASES, NET (Tables)
 12 Months Ended
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Loans and leases consist of the following:
At September 30,
(Dollars in thousands)20222021
Term lending$1,090,289 $961,019 
Asset based lending351,696 300,225 
Factoring372,595 363,670 
Lease financing210,692 266,050 
Insurance premium finance479,754 428,867 
SBA/USDA359,238 247,756 
Other commercial finance159,409 157,908 
Commercial finance3,023,673 2,725,495 
Consumer credit products144,353 129,251 
Other consumer finance25,306 123,606 
Consumer finance169,659 252,857 
Tax services9,098 10,405 
Warehouse finance326,850 419,926 
Community banking— 199,132 
Total loans and leases3,529,280 3,607,815 
Net deferred loan origination costs7,025 1,748 
Total gross loans and leases3,536,305 3,609,563 
Allowance for credit losses(45,947)(68,281)
Total loans and leases, net$3,490,358 $3,541,282 
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)20222021
Loans Purchased
Commercial finance$3,098 $— 
Warehouse finance112,255 308,014 
Community banking— 3,318 
Total purchases$115,353 $311,332 
Loans Sold
Loans held for sale:
Commercial finance$50,848 $89,276 
Consumer finance855,291 494,585 
Community banking153,222 308,082 
Loans held for investment:
Commercial finance15,549 — 
Consumer finance77,456 — 
Community banking30,235 13,850 
Total sales$1,182,601 $905,793 
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)20222021
Carrying amount$216,880 $278,341 
Unguaranteed residual assets13,037 14,393 
Unamortized initial direct costs295 490 
Unearned income(19,225)(26,684)
Total net investment in direct financing and sales-type leases$210,987 $266,540 
Operating Lease, Lease Income
The components of total lease income were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
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 payments46,017 39,553 
Profit recorded on commencement date on sales-type leases— 337 
Other(1)
5,982 4,986 
Total leasing and equipment finance noninterest income51,999 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.
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, 2022 were as follows:
(Dollars in thousands)
2023$95,608 
202466,344 
202534,657 
202612,714 
20275,495 
Thereafter2,062 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases216,880 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$216,880 
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)20222021
Beginning balance$68,281 $56,188 
Impact of CECL adoption— 12,773 
Provision for credit losses28,862 49,939 
Charge-offs(61,061)(57,273)
Recoveries9,865 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 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 credit products1,242 158 — — 1,400 
Other consumer finance6,112 (1,607)(4,787)345 63 
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.

At September 30, 2021
(Dollars in thousands)Beginning BalanceImpact of CECL AdoptionProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for loan and lease losses:
Term lending$15,211 $9,999 $16,944 $(14,090)$1,287 $29,351 
Asset based lending1,406 164 933 (1,200)423 1,726 
Factoring3,027 987 (1,192)— 1,175 3,997 
Lease financing7,023 (556)3,758 (2,969)373 7,629 
Insurance premium finance2,129 (965)(555)(1,192)1,977 1,394 
SBA/USDA940 2,720 (703)— 21 2,978 
Other commercial finance182 364 622 — — 1,168 
Commercial finance29,918 12,713 19,807 (19,451)5,256 48,243 
Consumer credit products845 — 397 — — 1,242 
Other consumer finance2,821 5,998 297 (3,324)320 6,112 
Consumer finance3,666 5,998 694 (3,324)320 7,354 
Tax services2 — 33,276 (34,354)1,078 2 
Warehouse finance294 (1)127 — — 420 
Community banking22,308 (5,937)(3,965)(144)— 12,262 
Total loans and leases56,188 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.
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, 2022At September 30, 2021
Term lending$2,885 $20,965 
Factoring550 1,268 
Lease financing2,787 3,882 
SBA/USDA1,199 — 
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.
The following table provides the average recorded investment in nonaccrual loans and leases:

Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Term lending$11,320 $14,623 
Asset based lending3,754 444 
Factoring6,344 757 
Lease financing3,278 3,029 
SBA/USDA1,244 550 
Commercial finance25,940 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.
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, 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 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202120212020201920182017Prior
Term lending
Pass$362,443 $192,305 $63,708 $34,381 $3,195 $1,236 $— $657,268 
Watch63,046 71,701 32,941 21,419 76 3,628 — 192,811 
Special Mention6,422 26,673 4,821 932 70 633 — 39,551 
Substandard18,569 16,810 26,920 3,529 928 641 — 67,397 
Doubtful252 1,673 1,756 311 — — — 3,992 
Total450,732 309,162 130,146 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
Pass54,434 73,629 17,153 7,511 1,857 203 — 154,787 
Watch22,061 20,455 9,274 2,739 1,454 — — 55,983 
Special Mention15,402 20,595 4,148 1,546 61 — — 41,752 
Substandard479 4,765 4,981 831 25 — — 11,081 
Doubtful— 6 2,402 38 1 — — 2,447 
Total92,376 119,450 37,958 12,665 3,398 203 — 266,050 
Insurance premium finance
Pass428,131 144 9 — — — — 428,284 
Watch262 5 — — — — — 267 
Special Mention58 5 — — — — — 63 
Substandard68 107 — — — — — 175 
Doubtful58 20 — — — — — 78 
Total428,577 281 9 — — — — 428,867 
SBA/USDA
Pass110,122 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 
Total110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 
Other commercial finance
Pass56,957 642 5,786 6,075 3,345 60,965 — 133,770 
Watch— 17,404 3,409 451 — — — 21,264 
Substandard466 — — 273 837 1,299 — 2,875 
Total57,423 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
Pass1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 
Watch85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 
Special Mention21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 
Substandard19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 
Doubtful310 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 $3,344,553 
Past Due Loans
Past due loans and leases were as follows:
At September 30, 2022
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $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 credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
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 

At September 30, 2021
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$— $— $— $— $56,194 $56,194 $— $— $— 
Term lending11,879 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 financing4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 
Insurance premium finance1,415 375 599 2,389 426,478 428,867 599 — 599 
SBA/USDA66 974 987 2,027 245,729 247,756 987 — 987 
Other commercial finance— — — — 157,908 157,908 — — — 
Commercial finance18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 
Consumer credit products713 527 511 1,751 127,500 129,251 511 — 511 
Other consumer finance963 285 725 1,973 121,633 123,606 725 — 725 
Consumer finance1,676 812 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 investment19,945 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 
Financing Receivable, Nonaccrual
Nonaccrual loans and leases by year of origination at September 30, 2022 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20222021202020192018Prior
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 

Nonaccrual loans and leases by year of origination at September 30, 2021 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20212020201920182017Prior
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 finance131 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 YearRevolving Loans and LeasesTotal
(Dollars in thousands)20222021202020192018Prior
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 credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
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