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LOANS AND LEASES, NET (Tables)
 12 Months Ended
Sep. 30, 2024
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans Receivable
Loans and leases consist of the following:
At September 30,
(Dollars in thousands)20242023
Term lending$1,554,641 $1,308,133 
Asset-based lending471,897 382,371 
Factoring362,295 358,344 
Lease financing152,174 183,392 
Insurance premium finance— 800,077 
SBA/USDA568,628 524,750 
Other commercial finance185,964 166,091 
Commercial finance3,295,599 3,723,158 
Consumer finance248,800 254,416 
Tax services8,825 5,192 
Warehouse finance517,847 376,915 
Total loans and leases4,071,071 4,359,681 
Net deferred loan origination costs4,124 6,435 
Total gross loans and leases4,075,195 4,366,116 
Allowance for credit losses(45,336)(49,705)
Total loans and leases, net$4,029,859 $4,316,411 
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)20242023
Loans Purchased
Loans held for investment:
Commercial finance$13,782 $480 
Warehouse finance284,480 214,786 
Total purchases$298,262 $215,266 
Loans Sold
Loans held for sale:
Commercial finance$99,005 $16,610 
Consumer finance1,937,079 1,123,271 
Total sales$2,036,084 $1,139,881 
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)20242023
Minimum lease payments receivable$162,757 $191,807 
Unguaranteed residual assets9,300 12,709 
Unamortized initial direct costs102 141 
Unearned income(19,883)(21,124)
Total net investment in direct financing and sales-type leases$152,276 $183,533 
Operating Lease, Lease Income
The components of total lease income were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)202420232022
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 payments53,365 53,551 46,017 
Other(1)
4,921 3,964 5,982 
Total leasing and equipment finance noninterest income58,286 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.
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, 2024 were as follows:
(Dollars in thousands)
2025$59,315 
202641,380 
202726,908 
202819,157 
202910,236 
Thereafter5,761 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases162,757 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$162,757 
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)20242023
Beginning balance$49,705 $45,947 
Provision for credit loss42,238 57,448 
Charge-offs(57,681)(59,898)
Recoveries11,074 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 BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$25,686 $20,558 $(18,193)$2,343 $30,394 
Asset-based lending2,738 (1,637)— 255 1,356 
Factoring6,566 1,420 (2,453)224 5,757 
Lease financing3,302 (2,010)(287)184 1,189 
Insurance premium finance2,637 (1,767)(1,149)279 — 
SBA/USDA2,962 1,065 (755)1 3,273 
Other commercial finance3,089 (2,482)— — 607 
Commercial finance46,980 15,147 (22,837)3,286 42,576 
Consumer finance2,346 3,955 (4,064)3 2,240 
Tax services2 22,995 (30,780)7,785 2 
Warehouse finance377 141 — — 518 
Total loans and leases49,705 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 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 and Leases
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, 2024At September 30, 2023
Term lending$15,491 $3,516 
Asset-based lending— 19,226 
Factoring— 1,133 
Lease financing5,300 630 
SBA/USDA1,419 750 
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.
The following table provides the average recorded investment in nonaccrual loans and leases:
Fiscal Year Ended September 30,
(Dollars in thousands)20242023
Term lending$20,133 $11,494 
Asset-based lending4,896 10,295 
Factoring2,079 578 
Lease financing1,176 2,852 
SBA/USDA2,230 1,244 
Commercial finance30,514 26,463 
Total loans and leases$30,514 $26,463 
Asset Classification by Credit Quality Indicators of Loans and Leases 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, 202420242023202220212020Prior
Term lending
Pass$548,597 $398,832 $117,180 $77,585 $42,950 $24,166 $— $1,209,310 
Watch47,765 52,317 34,964 31,025 2,720 2,312 — 171,103 
Special mention44,617 3,106 9,121 14,772 7,238 2 — 78,856 
Substandard9,798 24,187 18,537 11,660 18,894 2,631 — 85,707 
Doubtful4,314 1,465 2,247 758 114 767 — 9,665 
Total655,091 479,907 182,049 135,800 71,916 29,878 — 1,554,641 
Current period charge-offs114 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
Pass44,883 48,851 12,862 7,101 7,938 1,733 — 123,368 
Watch1,837 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 
Total46,720 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-offs86 890 173 — — — — 1,149 
SBA/USDA
Pass60,636 171,136 179,490 20,825 28,588 39,319 — 499,994 
Watch5,244 6,967 — 639 10 3,026 — 15,886 
Special mention— — — 156 — 363 — 519 
Substandard1,037 15,923 12,158 2,003 9,519 11,134 — 51,774 
Doubtful— 185 55 55 62 98 — 455 
Total66,917 194,211 191,703 23,678 38,179 53,940 — 568,628 
Current period charge-offs— 549 79 — 127 — — 755 
Other commercial finance
Pass73,330 2,210 6,685 12,351 1,274 70,203 — 166,053 
Watch— 2,480 — — — — — 2,480 
Substandard— 508 — 16,923 — — — 17,431 
Total73,330 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
Pass727,446 621,029 316,217 117,862 80,750 135,421 1,043,551 3,042,276 
Watch54,846 65,301 35,334 37,928 4,092 5,378 283,791 486,670 
Special mention44,617 3,356 9,121 14,928 7,412 365 13,458 93,257 
Substandard10,835 47,309 33,418 33,303 30,482 14,368 11,227 180,942 
Doubtful4,314 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 YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Term lending
Pass$539,448 $149,190 $99,677 $73,132 $14,368 $85,812 $— $961,627 
Watch53,481 51,036 58,041 12,230 4,483 727 — 179,998 
Special mention26,539 13,853 20,463 723 2,932 75 — 64,585 
Substandard20,437 30,451 14,729 24,613 3,872 764 — 94,866 
Doubtful200 2,655 1,691 1,121 165 1,225 — 7,057 
Total640,105 247,185 194,601 111,819 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
Pass57,123 15,941 15,167 27,489 4,036 1,281 — 121,037 
Watch793 10,436 12,566 4,494 1,579 55 — 29,923 
Special mention— — 847 415 195 — — 1,457 
Substandard14,890 1,983 7,082 3,660 3,062 33 — 30,710 
Doubtful— — 71 61 — 133 — 265 
Total72,806 28,360 35,733 36,119 8,872 1,502 — 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
Pass1,554,843 333,793 173,825 138,032 37,324 175,272 809,413 3,222,502 
Watch105,884 110,339 71,265 16,775 6,419 3,354 245,076 559,112 
Special mention26,789 13,868 21,840 1,138 3,127 75 35,274 102,111 
Substandard38,423 35,260 49,237 33,691 15,443 8,773 27,366 208,193 
Doubtful380 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
Past due loans and leases were as follows:
At September 30, 2024
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$2,266 $1,361 $1,050 $4,677 $684,193 $688,870 $1,050 $— $1,050 
Term lending19,776 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 financing3,605 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 finance23,381 7,671 19,975 51,027 3,244,572 3,295,599 2,314 26,412 28,726 
Consumer finance3,962 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 investment27,343 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 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 
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, 202420242023202220212020Prior
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 finance9,281 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 YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202320232022202120202019Prior
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 finance865 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 YearRevolving Loans and LeasesTotal
At September 30, 202420242023202220212020Prior
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 finance736 1,841 388 88 — — — 3,053 
Tax services8,733 — — — — — — 8,733 
Total loans and leases held for investment9,469 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 YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Loans held for sale$306 $— $— $— $— $— $— $306 
Term lending1,604 1,371 500 233 29 — — 3,737 
Lease financing151 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 finance1,755 2,275 1,593 1,850 2,157 1,612 — 11,242 
Consumer finance891 1,045 246 — — — 28 2,210 
Tax services5,082 — — — — — — 5,082 
Total loans and leases held for investment7,728 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