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LOANS AND LEASES, NET

12 Months Ended

Sep. 30, 2024

Loans and Leases Receivable Disclosure [Abstract]

Loans and leases consist of the following:


	At September 30,
(Dollars in thousands)	2024		2023
Term lending	$	1,554,641	$	1,308,133
Asset-based lending	471,897		382,371
Factoring	362,295		358,344
Lease financing	152,174		183,392
Insurance premium finance	—		800,077
SBA/USDA	568,628		524,750
Other commercial finance	185,964		166,091
Commercial finance	3,295,599		3,723,158


Consumer finance	248,800		254,416
Tax services	8,825		5,192
Warehouse finance	517,847		376,915
Total loans and leases	4,071,071		4,359,681
Net deferred loan origination costs	4,124		6,435
Total gross loans and leases	4,075,195		4,366,116
Allowance for credit losses	(45,336)		(49,705)
Total loans and leases, net	$	4,029,859	$	4,316,411

During the fiscal years ended September 30, 2024 and 2023, the Company originated $2.03 billion and $1.21 billion of consumer finance and SBA/USDA loans as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $2.04 billion and gain on sale of $5.9 million during the fiscal year ended September 30, 2024. The Company sold held for sale loans resulting in proceeds of $1.14 billion and gain on sale of $0.3 million during the fiscal year ended September 30, 2023.

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2024		2023
Loans Purchased





Loans held for investment:
Commercial finance	$	13,782	$	480


Warehouse finance	284,480		214,786
Total purchases	$	298,262	$	215,266
Loans Sold
Loans held for sale:
Commercial finance	$	99,005	$	16,610
Consumer finance	1,937,079		1,123,271







Total sales	$	2,036,084	$	1,139,881

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


	At September 30,
(Dollars in thousands)	2024		2023
Minimum lease payments receivable	$	162,757	$	191,807
Unguaranteed residual assets	9,300		12,709
Unamortized initial direct costs	102		141
Unearned income	(19,883)		(21,124)
Total net investment in direct financing and sales-type leases	$	152,276	$	183,533

The components of total lease income were as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2024		2023		2022
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	11,827	$	13,536	$	17,081

Leasing and equipment finance noninterest income
Lease income from operating lease payments	53,365		53,551		46,017

Other(1)	4,921		3,964		5,982
Total leasing and equipment finance noninterest income	58,286		57,515		51,999
Total lease income	$	70,113	$	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.

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at September 30, 2024 were as follows:


(Dollars in thousands)
2025	$	59,315
2026	41,380
2027	26,908
2028	19,157
2029	10,236
Thereafter	5,761

Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	162,757
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type leases	$	162,757

The Company did not record any contingent rental income from direct financing and sales-type leases in the fiscal year ended September 30, 2024.

A number of factors affected the economic environment in 2023 continued throughout 2024 including geopolitical conflict, supply chain disruptions, inflation, and increased interest rates. The 2023 bank failures that were brought on by, among other things, rising interest rates, deposit outflows and liquidity crises also continued to impact the banking industry. While the ultimate impact of these 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 these 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)	2024		2023
Beginning balance	$	49,705	$	45,947
Provision for credit loss	42,238		57,448
Charge-offs	(57,681)		(59,898)
Recoveries	11,074		6,208
Ending balance	$	45,336	$	49,705

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


	At September 30, 2024
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	25,686	$	20,558	$	(18,193)	$	2,343	$	30,394
Asset-based lending	2,738		(1,637)		—		255		1,356
Factoring	6,566		1,420		(2,453)		224		5,757
Lease financing	3,302		(2,010)		(287)		184		1,189
Insurance premium finance	2,637		(1,767)		(1,149)		279		—
SBA/USDA	2,962		1,065		(755)		1		3,273
Other commercial finance	3,089		(2,482)		—		—		607
Commercial finance	46,980		15,147		(22,837)		3,286		42,576


Consumer finance	2,346		3,955		(4,064)		3		2,240
Tax services	2		22,995		(30,780)		7,785		2
Warehouse finance	377		141		—		—		518
Total loans and leases	49,705		42,238		(57,681)		11,074		45,336
Unfunded commitments(1)	272		423		—		—		695
Total	$	49,977	$	42,661	$	(57,681)	$	11,074	$	46,031
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.


	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.

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, 2024		At September 30, 2023
Term lending	$	15,491	$	3,516
Asset-based lending	—		19,226
Factoring	—		1,133
Lease financing	5,300		630

SBA/USDA	1,419		750

Commercial finance(1)	22,210		25,255





Total	$	22,210	$	25,255
(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. The balance of these pass rated cash collateral loans totaled $105.1 million and $117.0 million at September 30, 2024 and 2023, respectively.

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, 120 days or more for consumer credit products and leases, and 90 days or more for commercial finance loans. Action is taken to charge off 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. The Company individually evaluates loans and leases that do not share similar risk characteristics with other financial assets, which generally means loans and leases identified as modifications or loans and leases on nonaccrual status.

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 its evaluation of the appropriateness of the ACL 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 $248.8 million and $8.8 million at September 30, 2024, respectively, and $254.4 million and $5.2 million at September 30, 2023, 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, 2024	2024		2023		2022		2021		2020		Prior
Term lending
Pass	$	548,597	$	398,832	$	117,180	$	77,585	$	42,950	$	24,166	$	—	$	1,209,310
Watch	47,765		52,317		34,964		31,025		2,720		2,312		—		171,103
Special mention	44,617		3,106		9,121		14,772		7,238		2		—		78,856
Substandard	9,798		24,187		18,537		11,660		18,894		2,631		—		85,707
Doubtful	4,314		1,465		2,247		758		114		767		—		9,665
Total	655,091		479,907		182,049		135,800		71,916		29,878		—		1,554,641
Current period charge-offs	114		3,102		8,502		3,576		2,184		715		—		18,193
Asset-based lending
Pass	—		—		—		—		—		—		233,268		233,268
Watch	—		—		—		—		—		—		221,521		221,521
Special mention	—		—		—		—		—		—		13,187		13,187
Substandard	—		—		—		—		—		—		3,921		3,921

Total	—		—		—		—		—		—		471,897		471,897
Current period charge-offs	—		—		—		—		—		—		—		—
Factoring
Pass	—		—		—		—		—		—		292,436		292,436
Watch	—		—		—		—		—		—		62,270		62,270
Special mention	—		—		—		—		—		—		271		271
Substandard	—		—		—		—		—		—		7,306		7,306
Doubtful	—		—		—		—		—		—		12		12
Total	—		—		—		—		—		—		362,295		362,295
Current period charge-offs	—		—		—		—		—		—		2,453		2,453
Lease financing
Pass	44,883		48,851		12,862		7,101		7,938		1,733		—		123,368
Watch	1,837		3,537		370		6,264		1,362		40		—		13,410
Special mention	—		250		—		—		174		—		—		424


Substandard	—		6,691		2,723		2,717		2,069		603		—		14,803
Doubtful	—		—		—		138		31		—		—		169
Total	46,720		59,329		15,955		16,220		11,574		2,376		—		152,174
Current period charge-offs	—		—		—		207		80		—		—		287
Insurance premium finance






Current period charge-offs	86		890		173		—		—		—		—		1,149
SBA/USDA
Pass	60,636		171,136		179,490		20,825		28,588		39,319		—		499,994
Watch	5,244		6,967		—		639		10		3,026		—		15,886
Special mention	—		—		—		156		—		363		—		519
Substandard	1,037		15,923		12,158		2,003		9,519		11,134		—		51,774
Doubtful	—		185		55		55		62		98		—		455
Total	66,917		194,211		191,703		23,678		38,179		53,940		—		568,628
Current period charge-offs	—		549		79		—		127		—		—		755
Other commercial finance
Pass	73,330		2,210		6,685		12,351		1,274		70,203		—		166,053
Watch	—		2,480		—		—		—		—		—		2,480

Substandard	—		508		—		16,923		—		—		—		17,431

Total	73,330		5,198		6,685		29,274		1,274		70,203		—		185,964
Current period charge-offs	—		—		—		—		—		—		—		—
Warehouse finance
Pass	—		—		—		—		—		—		517,847		517,847




Total	—		—		—		—		—		—		517,847		517,847
Current period charge-offs	—		—		—		—		—		—		—		—
Total loans and leases
Pass	727,446		621,029		316,217		117,862		80,750		135,421		1,043,551		3,042,276
Watch	54,846		65,301		35,334		37,928		4,092		5,378		283,791		486,670
Special mention	44,617		3,356		9,121		14,928		7,412		365		13,458		93,257
Substandard	10,835		47,309		33,418		33,303		30,482		14,368		11,227		180,942
Doubtful	4,314		1,650		2,302		951		207		865		12		10,301
Total	$	842,058	$	738,645	$	396,392	$	204,972	$	122,943	$	156,397	$	1,352,039	$	3,813,446
Current period charge-offs	$	200	$	4,541	$	8,754	$	3,783	$	2,391	$	715	$	2,453	$	22,837


	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	$	539,448	$	149,190	$	99,677	$	73,132	$	14,368	$	85,812	$	—	$	961,627
Watch	53,481		51,036		58,041		12,230		4,483		727		—		179,998
Special mention	26,539		13,853		20,463		723		2,932		75		—		64,585
Substandard	20,437		30,451		14,729		24,613		3,872		764		—		94,866
Doubtful	200		2,655		1,691		1,121		165		1,225		—		7,057
Total	640,105		247,185		194,601		111,819		25,820		88,603		—		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	57,123	15,941	15,167	27,489	4,036	1,281	—	121,037
Watch	793	10,436	12,566	4,494	1,579	55	—	29,923
Special mention	—	—	847	415	195	—	—	1,457
Substandard	14,890	1,983	7,082	3,660	3,062	33	—	30,710
Doubtful	—	—	71	61	—	133	—	265
Total	72,806	28,360	35,733	36,119	8,872	1,502	—	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	1,554,843	333,793	173,825	138,032	37,324	175,272	809,413	3,222,502
Watch	105,884	110,339	71,265	16,775	6,419	3,354	245,076	559,112
Special mention	26,789	13,868	21,840	1,138	3,127	75	35,274	102,111
Substandard	38,423	35,260	49,237	33,691	15,443	8,773	27,366	208,193
Doubtful	380	2,807	1,762	1,182	165	1,358	501	8,155


Total			$	1,726,319		$	496,067		$	317,929		$	190,818		$	62,478		$	188,832		$	1,117,630		$	4,100,073

Past due loans and leases were as follows:


	At September 30, 2024
	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	$	2,266	$	1,361	$	1,050	$	4,677	$	684,193	$	688,870	$	1,050	$	—	$	1,050

Term lending	19,776		5,124		17,694		42,594		1,512,047		1,554,641		1,923		23,462		25,385
Asset-based lending	—		—		—		—		471,897		471,897		—		—		—
Factoring	—		—		—		—		362,295		362,295		—		29		29
Lease financing	3,605		1,595		109		5,309		146,865		152,174		60		746		806

SBA/USDA	—		952		2,172		3,124		565,504		568,628		331		2,175		2,506
Other commercial finance	—		—		—		—		185,964		185,964		—		—		—
Commercial finance	23,381		7,671		19,975		51,027		3,244,572		3,295,599		2,314		26,412		28,726


Consumer finance	3,962		3,186		3,053		10,201		238,599		248,800		3,053		—		3,053
Tax services	—		—		8,733		8,733		92		8,825		8,733		—		8,733
Warehouse finance	—		—		—		—		517,847		517,847		—		—		—
Total loans and leases held for investment	27,343		10,857		31,761		69,961		4,001,110		4,071,071		14,100		26,412		40,512
Total loans and leases	$	29,609	$	12,218	$	32,811	$	74,638	$	4,685,303	$	4,759,941	$	15,150	$	26,412	$	41,562


	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

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, 2024	2024		2023		2022		2021		2020		Prior
Term lending	$	9,281	$	3,433	$	5,369	$	1,386	$	625	$	3,368	$	—	$	23,462	$	2,579

Factoring	—		—		—		—		—		—		29		29		—
Lease financing	—		577		11		46		2		110		—		746		—

SBA/USDA	—		738		55		55		742		585		—		2,175		681

Commercial finance	9,281		4,748		5,435		1,487		1,369		4,063		29		26,412		3,260





Total nonaccrual loans and leases	$	9,281	$	4,748	$	5,435	$	1,487	$	1,369	$	4,063	$	29	$	26,412	$	3,260


	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	$	865	$	4,942	$	2,933	$	2,165	$	3,134	$	1,285	$	—	$	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	865		5,692		3,379		2,825		3,134		2,097		19,380		37,372		1





Total nonaccrual loans and leases	$	865	$	5,692	$	3,379	$	2,825	$	3,134	$	2,097	$	19,380	$	37,372	$	1

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, 2024	2024		2023		2022		2021		2020		Prior
Loans held for sale	$	1,031	$	19	$	—	$	—	$	—	$	—	$	—	$	1,050
Term lending	—		621		354		719		217		12		—		1,923


Lease financing	—		—		—		2		58		—		—		60

SBA/USDA	—		—		331		—		—		—		—		331

Commercial finance	—		621		685		721		275		12		—		2,314


Consumer finance	736		1,841		388		88		—		—		—		3,053
Tax services	8,733		—		—		—		—		—		—		8,733

Total loans and leases held for investment	9,469		2,462		1,073		809		275		12		—		14,100
Total 90 days or more delinquent and accruing	$	10,500	$	2,481	$	1,073	$	809	$	275	$	12	$	—	$	15,150


	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	1,604		1,371		500		233		29		—		—		3,737


Lease financing	151		490		979		784		1,794		44		—		4,242
Insurance premium finance	—		414		114		—		334		1,477		—		2,339
SBA/USDA	—		—		—		833		—		—		—		833
Other commercial finance	—		—		—		—		—		91		—		91
Commercial finance	1,755		2,275		1,593		1,850		2,157		1,612		—		11,242


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

Total loans and leases held for investment	7,728		3,320		1,839		1,850		2,157		1,612		28		18,534
Total 90 days or more delinquent and accruing	$	8,034	$	3,320	$	1,839	$	1,850	$	2,157	$	1,612	$	28	$	18,840

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)	2024		2023
Term lending	$	20,133	$	11,494
Asset-based lending	4,896		10,295
Factoring	2,079		578
Lease financing	1,176		2,852

SBA/USDA	2,230		1,244

Commercial finance	30,514		26,463





Total loans and leases	$	30,514	$	26,463

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2024 and 2023 was not significant.

Effective October 1, 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on a prospective basis. Financial information at and for the fiscal year ended September 30, 2024 is reflected as such. The historical information disclosed is in accordance with Subtopic ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors.

Modifications made to borrowers experiencing financial difficulty during the fiscal year ended September 30, 2024 were $9.8 million in the commercial finance loan portfolio. The types of modifications granted were term extensions and reduced payments.

During the fiscal year ended September 30, 2024, the Company had $1.5 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. At September 30, 2024, $1.5 million of modifications granted were in the over 89 days past due category.

There were $1.1 million loans that were modified in a trouble debt restructuring ("TDR") during the fiscal year ended September 30, 2023. The Company had $0.9 million of commercial finance loans that were modified within the previous 12 months experience a payment default during the fiscal year ended September 30, 2023. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the fiscal year ended September 30, 2023.