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LOANS AND LEASES, NET

12 Months Ended

Sep. 30, 2020

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases

Loans and leases consist of the following:


(Dollars in Thousands)	September 30, 2020		September 30, 2019
National Lending
Term lending(1)	$	805,323	$	641,742
Asset based lending(1)	182,419		250,465
Factoring	281,173		296,507
Lease financing(1)	281,084		177,915
Insurance premium finance	337,940		361,105
SBA/USDA(2)	318,387		88,831
Other commercial finance	101,658		99,665
Commercial finance	2,307,984		1,916,230
Consumer credit products	89,809		106,794
Other consumer finance	134,342		161,404
Consumer finance	224,151		268,198
Tax services	3,066		2,240
Warehouse finance	293,375		262,924
Total National Lending	2,828,576		2,449,592
Community Banking
Commercial real estate and operating	457,371		883,932
Consumer one-to-four family real estate and other	16,486		259,425
Agricultural real estate and operating	11,707		58,464
Total Community Banking	485,564		1,201,821
Total loans and leases	3,314,140		3,651,413
Net deferred loan origination fees	8,625		7,434
Total gross loans and leases	3,322,765		3,658,847

Allowance for loan and lease losses	(56,188)		(29,149)
Total loans and leases, net(3)	$	3,266,577	$	3,629,698

(1) The Company has updated the presentation of its loan and lease table beginning in the fiscal 2020 first quarter. The new presentation includes a new category called term lending. Certain balances previously included in the asset based lending and lease financing categories have been reclassified into the new term lending category during the fiscal 2020 first quarter. Prior period balances have been conformed to the new presentation.

(2) The Company is participating in the Paycheck Protection Program which is being administered by the Small Business Administration ("SBA"). As of September 30, 2020, the Company had 689 loans outstanding with a total of $219.0 million in loan balances that were originated as part of the program.

(3) As of September 30, 2020, the remaining balance of acquired loans and leases from the acquisition of Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank (the "Crestmark Acquisition") was $149.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $2.8 million and $2.3 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.

During the fiscal year ended September 30, 2020, the Company transferred $542.1 million of Community Banking loans to held for sale. During the fiscal year ended September 30, 2019, the Company transferred $100.0 million of consumer credit product loans to held for sale

During the fiscal years ended September 30, 2020 and 2019, the Company originated $98.8 million and $171.3 million, respectively, of SBA/USDA and consumer credit product loans as held for sale.

The Company sold held for sale loans resulting in proceeds of $590.8 million and gains on sale of $7.7 million during the fiscal year ended September 30, 2020. The Company sold held for sale loans resulting in proceeds of $125.4 million and gains on sale of $5.1 million during the fiscal year ended September 30, 2019.

Loans purchased and sold by portfolio segment, including participation interests, for the fiscal years ended September 30, 2020 and 2019 were as follows:


	Fiscal Year Ended
(Dollars in Thousands)	September 30, 2020		September 30, 2019
Loans Purchased
Loans held for sale:
Total National Lending	$	—	$	15,443
Loans held for investment:
Total National Lending	132,530		235,918
Total Community Banking	18,905		26,704
Total purchases	151,435		278,065
Loans Sold
Loans held for sale:
Total National Lending	183,508		121,071
Total Community Banking	407,296		—
Loans held for investment:
Total Community Banking	9,991		13,069
Total sales	$	600,795	$	134,140

Leasing Portfolio

Effective October 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and related ASUs on a modified retrospective basis, electing the practical expedients and optional transition method. As such, the following leasing disclosures include information at, or for the year ended September 30, 2020.

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


	September 30, 2020		September 30, 2019
(Dollars in Thousands)
Carrying Amount	$	299,487	$	191,733
Unguaranteed residual assets	17,203		13,353
Unamortized initial direct costs	2,078		1,790
Unearned income	(35,606)		(27,171)
Total investment in direct financing and sales-type leases	$	283,162	$	179,705

The carrying amount of direct financing and sales-type leases subject to residual value guarantees was $8.7 million at September 30, 2020.

The components of total lease income were as follows:


	Fiscal Year Ended
(Dollars in Thousands)	September 30, 2020
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	18,300

Leasing and equipment finance noninterest income
Lease income from operating lease payments	44,319
Profit (loss) recorded on commencement date on sales-type leases	2,152
Other(1)	4,357
Total leasing and equipment finance noninterest income	50,828
Total lease income	$	69,128

(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 were as follows:


(Dollars in Thousands)	As of September 30, 2020
2021	$	107,558
2022	87,775
2023	58,906
2024	33,059
2025	10,097
Thereafter	2,092
Equipment under leases not yet commenced	—
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	299,487
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type leases	$	299,487

The Company did not record any contingent rental income from sales-type and direct financing leases in the fiscal year ended September 30, 2020.

During the Company's fiscal 2020 second quarter, the COVID-19 pandemic began impacting global and US markets and macroeconomic conditions, and continues to have an impact. Although the ultimate impact of the pandemic on the Company's loan and lease portfolio is difficult to predict, management performed an evaluation of the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses. The framework for the analysis was based on the Company's then-current ALLL methodology with additional considerations. From this impact assessment, additional reserve levels were estimated by increasing qualitative factors. The additional reserves were estimated for loans that were granted short-term payment deferrals related to financial stress stemming from the COVID-19 pandemic along with other loans within certain industries that were considered higher risk for credit loss (e.g. transportation, hospitality, travel, entertainment and retail). Based on the Company's ongoing assessment of the COVID-19 pandemic, the Company recognized an additional provision for loan and lease losses of $26.4 million during the fiscal year ended September 30, 2020. The Company will continue to assess the impact to their customers and businesses as a result of COVID-19 and refine their estimate as more information becomes available.

Annual activity in the allowance for loan and lease losses was as follows:


Fiscal Year Ended September 30,	2020		2019		2018
(Dollars in Thousands)
Beginning balance	$	29,149	$	13,040	$	7,534
Provision for loan and lease losses	64,776		55,650		29,433
Recoveries	4,024		3,313		2,037
Charge-offs	(41,761)		(42,854)		(25,964)
Ending balance	$	56,188	$	29,149	$	13,040

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for the fiscal years ended September 30, 2020 and 2019 were as follows:


Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses		Charge-offs		Recoveries		Ending balance
Fiscal Year Ended September 30, 2020
National Lending	(Dollars in Thousands)
Term lending	$	5,533	$	19,796	$	(10,458)	$	340	$	15,211
Asset based lending	2,437		(1,036)		(42)		47		1,406
Factoring	3,261		(245)		(915)		926		3,027
Lease financing	1,275		6,105		(728)		371		7,023
Insurance premium finance	1,024		2,489		(2,004)		620		2,129
SBA/USDA	383		2,688		(2,131)		—		940
Other commercial finance	683		(501)		—		—		182
Commercial finance	14,596		29,296		(16,278)		2,304		29,918
Consumer credit products	1,044		(199)		—		—		845
Other consumer finance	5,118		(538)		(2,649)		890		2,821
Consumer finance	6,162		(737)		(2,649)		890		3,666
Tax services	—		22,006		(22,834)		830		2
Warehouse finance	263		31		—		—		294
Total National Lending	21,021		50,596		(41,761)		4,024		33,880
Community Banking
Commercial real estate and operating	6,208		15,659		—		—		21,867
Consumer one-to-four family real estate and other	1,053		(755)		—		—		298
Agricultural real estate and operating	867		(724)		—		—		143
Total Community Banking	8,128		14,180		—		—		22,308
Total	$	29,149	$	64,776	$	(41,761)	$	4,024	$	56,188


Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses		Charge-offs		Recoveries		Ending balance
Fiscal Year Ended September 30, 2019
National Lending	(Dollars in Thousands)
Term lending	$	89	$	8,460	$	(4,581)	$	1,565	$	5,533
Asset based lending	47		2,388		(37)		39		2,437
Factoring	64		5,849		(2,725)		73		3,261
Lease financing	31		1,824		(1,342)		762		1,275
Insurance premium finance	1,031		2,361		(2,689)		321		1,024
SBA/USDA	13		370		—		—		383
Other commercial finance	28		655		—		—		683
Commercial finance	1,302		21,907		(11,373)		2,760		14,596
Consumer credit products	785		259		—		—		1,044
Other consumer finance	2,820		8,563		(6,346)		81		5,118
Consumer finance	3,605		8,822		(6,346)		81		6,162
Tax services	—		24,873		(25,095)		222		—
Warehouse finance	65		198		—		—		263
Total National Lending	4,972		55,800		(42,814)		3,063		21,021
Community Banking
Commercial real estate and operating	6,220		(12)		—		—		6,208
Consumer one-to-four family real estate and other	632		461		(40)		—		1,053
Agricultural real estate and operating	1,216		(599)		—		250		867
Total Community Banking	8,068		(150)		(40)		250		8,128
Total	$	13,040	$	55,650	$	(42,854)	$	3,313	$	29,149

The following tables provide details regarding the allowance for loan and lease losses and balances by type of allowance as of September 30, 2020 and 2019.


	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
Fiscal Year Ended September 30, 2020
National Lending	(Dollars in Thousands)
Term lending	$	3,155	$	12,056	$	15,211	$	26,085	$	779,238	$	805,323
Asset based lending	355		1,051		1,406		5,317		177,102		182,419
Factoring	274		2,753		3,027		5,071		276,102		281,173
Lease financing	1,194		5,829		7,023		4,697		276,387		281,084
Insurance premium finance	—		2,129		2,129		—		337,940		337,940
SBA/USDA(1)	—		940		940		1,436		316,951		318,387
Other commercial finance	—		182		182		—		101,658		101,658
Commercial finance	4,978		24,940		29,918		42,606		2,265,378		2,307,984
Consumer credit products	—		845		845		—		89,809		89,809
Other consumer finance	—		2,821		2,821		1,987		132,355		134,342
Consumer finance	—		3,666		3,666		1,987		222,164		224,151
Tax services	—		2		2		—		3,066		3,066
Warehouse finance	—		294		294		—		293,375		293,375
Total National Lending	4,978		28,902		33,880		44,593		2,783,983		2,828,576
Community Banking
Commercial real estate and operating	141		21,726		21,867		160		457,211		457,371
Consumer one-to-four family real estate and other	—		298		298		104		16,382		16,486
Agricultural real estate and operating	—		143		143		6,421		5,286		11,707
Total Community Banking	141		22,167		22,308		6,685		478,879		485,564
Total	$	5,119	$	51,069	$	56,188	$	51,278	$	3,262,862	$	3,314,140

(1) The ending balance collectively evaluated for impairment includes $219.0 million of loan balances that were originated as part of the Company's participation in the PPP. No reserve was applied to these loan balances as of September 30, 2020 as the PPP is administered by the SBA and are fully guaranteed.


	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
Fiscal Year Ended September 30, 2019
National Lending	(Dollars in Thousands)
Term lending	$	450	$	5,083	$	5,533	$	19,568	$	622,174	$	641,742
Asset based lending	—		2,437		2,437		378		250,087		250,465
Factoring	1,262		1,999		3,261		3,824		292,683		296,507
Lease financing	112		1,163		1,275		1,213		176,702		177,915
Insurance premium finance	—		1,024		1,024		—		361,105		361,105
SBA/USDA	51		332		383		3,841		84,990		88,831
Other commercial finance	—		683		683		—		99,665		99,665
Commercial finance	1,875		12,721		14,596		28,824		1,887,406		1,916,230
Consumer credit products	—		1,044		1,044		—		106,794		106,794
Other consumer finance	—		5,118		5,118		1,472		159,932		161,404
Consumer finance	—		6,162		6,162		1,472		266,726		268,198
Tax services	—		—		—		—		2,240		2,240
Warehouse finance	—		263		263		—		262,924		262,924
Total National Lending	1,875		19,146		21,021		30,296		2,419,296		2,449,592
Community Banking
Commercial real estate and operating	—		6,208		6,208		258		883,674		883,932
Consumer one-to-four family real estate and other	—		1,053		1,053		100		259,325		259,425
Agricultural real estate and operating	—		867		867		2,985		55,479		58,464
Total Community Banking	—		8,128		8,128		3,343		1,198,478		1,201,821
Total	$	1,875	$	27,274	$	29,149	$	33,639	$	3,617,774	$	3,651,413

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. Accordingly, if all payments were less than 30 days past due prior to the onset of the pandemic effects, the loan or lease will not be reported as past due during the deferral or forbearance period. As of September 30, 2020, $170.0 million of loan and lease that were granted deferral payments by the Company were still in their deferment period. 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. In addition, the Company has made other COVID-19 related modifications, of which $23.3 million were still active as of September 30, 2020. The majority of the other modifications were related to adjusting the type or amount of the customer's payments. The Company elected to accrue and recognize interest income on these modifications during the payment deferral period.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's 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- Special mention assets are 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 charged off when collection of principal becomes doubtful. Generally, 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 ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired.

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 Allowance for Loan and Lease Losses.

Beginning in the fiscal 2020 first quarter the Company implemented changes to the risk rating approach on certain commercial finance portfolios as part of a streamlining process to provide a more consistent risk rating approach across all of its lending portfolios. Based upon a study of the Company's special mention commercial finance loans and leases, the Company determined that approximately $117.0 million of those loans and leases should be rated as watch under the new approach. Prior to the fiscal 2020 first quarter, none of the Company's commercial finance loans and leases were rated as watch. Based on Meta's allowance methodology, these changes in risk ratings did not have a direct impact on the allowance for loan and lease losses. The aggregate balance of watch and special mention loans and leases within the commercial finance portfolio increased to $209.6 million at September 30, 2020, compared to $145.0 million at September 30, 2019.

The Company has various portfolios of consumer finance and tax services loans that present unique risks. 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 loan losses on these portfolios, and as such, these loans are not included in the asset classification table below, beginning in the fiscal 2020 first quarter. The September 30, 2019 asset classification table has been conformed to the current presentation. The outstanding balances of consumer finance loans and tax services loans were $224.2 million and $3.1 million at September 30, 2020, respectively, and $268.2 million and $2.2 million at September 30, 2019, respectively.

The asset classification of loans and leases were as follows:


Asset Classification	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Fiscal Year Ended September 30, 2020
National Lending	(Dollars in Thousands)
Term lending	$	725,101	$	29,637	$	24,501	$	21,249	$	4,835	$	805,323
Asset based lending	102,013		62,512		12,577		5,317		—		182,419
Factoring	217,245		45,200		13,657		5,071		—		281,173
Lease financing	264,700		8,879		2,808		4,148		549		281,084
Insurance premium finance	336,364		284		222		701		369		337,940
SBA/USDA	308,549		8,328		74		1,436		—		318,387
Other commercial finance	100,727		931		—		—		—		101,658
Commercial finance	2,054,699		155,771		53,839		37,922		5,753		2,307,984




Warehouse finance	293,375		—		—		—		—		293,375
Total National Lending	2,348,074		155,771		53,839		37,922		5,753		2,601,359
Community Banking
Commercial real estate and operating	336,236		98,295		4,049		18,211		580		457,371
Consumer one-to-four family real estate and other	15,648		41		609		188		—		16,486
Agricultural real estate and operating	1,526		—		4,930		5,251		—		11,707
Total Community Banking	353,410		98,336		9,588		23,650		580		485,564
Total loans and leases	$	2,701,484	$	254,107	$	63,427	$	61,572	$	6,333	$	3,086,923


Asset Classification	Pass		Watch		Special Mention		Substandard		Doubtful		Total
Fiscal Year Ended September 30, 2019
National Lending	(Dollars in Thousands)
Term lending	$	585,382	$	—	$	36,792	$	19,024	$	544	$	641,742
Asset based lending	192,427		—		57,660		378		—		250,465
Factoring	256,048		—		36,635		3,824		—		296,507
Lease financing	171,785		—		4,917		1,213		—		177,915
Insurance premium finance	361,105		—		—		—		—		361,105
SBA/USDA	76,609		—		8,381		3,841		—		88,831
Other commercial finance	99,057		—		608		—		—		99,665
Commercial finance	1,742,413		—		144,993		28,280		544		1,916,230




Warehouse finance	262,924		—		—		—		—		262,924
Total National Lending	2,005,337		—		144,993		28,280		544		2,179,154
Community Banking
Commercial real estate and operating	875,933		1,494		2,884		3,621		—		883,932
Consumer one-to-four family real estate and other	257,575		946		708		196		—		259,425
Agricultural real estate and operating	39,409		4,631		5,876		8,548		—		58,464
Total Community Banking	1,172,917		7,071		9,468		12,365		—		1,201,821
Total loans and leases	$	3,178,254	$	7,071	$	154,461	$	40,645	$	544	$	3,380,975

Past due loans and leases were as follows:


	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Fiscal Year Ended September 30, 2020	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
(Dollars in Thousands)
Loans held for sale	$	—	$	—	$	—	$	—	$	183,577	$	183,577	$	—	$	—	$	—

National Lending
Term lending	$	11,900	$	3,851	$	6,390	$	22,141	$	783,182	$	805,323	$	266	$	16,274	$	16,540
Asset based lending	17		—		—		17		182,402		182,419		—		—		—
Factoring	—		—		—		—		281,173		281,173		—		1,096		1,096
Lease financing	194		9,746		6,882		16,822		264,262		281,084		4,344		3,583		7,927
Insurance premium finance	1,227		748		2,364		4,339		333,601		337,940		2,364		—		2,364
SBA/USDA	—		—		1,027		1,027		317,360		318,387		427		600		1,027
Other commercial finance	—		—		—		—		101,658		101,658		—		—		—
Commercial finance	13,338		14,345		16,663		44,346		2,263,638		2,307,984		7,401		21,553		28,954
Consumer credit products	377		358		499		1,233		88,576		89,809		499		—		499
Other consumer finance	600		536		373		1,509		132,833		134,342		373		—		373
Consumer finance	977		894		872		2,743		221,408		224,151		872		—		872
Tax services	—		—		1,743		1,743		1,323		3,066		1,743		—		1,743
Warehouse finance	—		—		—		—		293,375		293,375		—		—		—
Total National Lending	14,315		15,239		19,278		48,832		2,779,744		2,828,576		10,016		21,553		31,569
Community Banking
Commercial real estate and operating	—		—		630		630		456,741		457,371		50		580		630
Consumer one-to-four family real estate and other	905		114		50		1,069		15,417		16,486		—		50		50
Agricultural real estate and operating	—		—		1,769		1,769		9,938		11,707		—		1,769		1,769
Total Community Banking	905		114		2,449		3,468		482,096		485,564		50		2,399		2,449
Total loans and leases held for investment	15,220		15,353		21,727		52,300		3,261,840		3,314,140		10,066		23,952		34,018

Total loans and leases	$	15,220	$	15,353	$	21,727	$	52,300	$	3,445,417	$	3,497,717	$	10,066	$	23,952	$	34,018


	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Fiscal Year Ended September 30, 2019	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
(Dollars in Thousands)


Loans held for sale	$	1,122	$	755	$	964	$	2,841	$	145,936	$	148,777	$	964	$	—	$	964

National Lending
Term lending	2,162		910		14,098		17,170		624,572		641,742		2,241		12,146		14,387
Asset based lending	—		—		—		—		250,465		250,465		—		—		—
Factoring	—		—		—		—		296,507		296,507		—		1,669		1,669
Lease financing	1,160		1,134		1,736		4,030		173,885		177,915		1,530		308		1,838
Insurance premium finance	1,999		2,881		3,807		8,687		352,418		361,105		3,807		—		3,807
SBA/USDA	83		—		255		338		88,493		88,831		—		255		255
Other commercial finance	—		—		—		—		99,665		99,665		—		—		—
Commercial finance	5,404		4,925		19,896		30,225		1,886,005		1,916,230		7,578		14,378		21,956
Consumer credit products	627		557		239		1,423		105,371		106,794		239		—		239
Other consumer finance	932		1,005		1,078		3,015		158,389		161,404		1,078		—		1,078
Consumer finance	1,559		1,562		1,317		4,438		263,760		268,198		1,317		—		1,317
Tax services	—		—		2,240		2,240		—		2,240		2,240		—		2,240
Warehouse finance	—		—		—		—		262,924		262,924		—		—		—
Total National Lending	6,963		6,487		23,453		36,903		2,412,689		2,449,592		11,135		14,378		25,513
Community Banking
Commercial real estate and operating	565		—		—		565		883,367		883,932		—		—		—
Consumer one-to-four family real estate and other	458		—		9		467		258,958		259,425		—		44		44
Agricultural real estate and operating	49		—		—		49		58,415		58,464		—		—		—
Total Community Banking	1,072		—		9		1,081		1,200,740		1,201,821		—		44		44
Total loans and leases held for investment	$	8,035	$	6,487	$	23,462	$	37,984	$	3,613,429	$	3,651,413	$	11,135	$	14,422	$	25,557

Total loans and leases	$	9,157	$	7,242	$	24,426	$	40,825	$	3,759,365	$	3,800,190	$	12,099	$	14,422	$	26,521

Non-accruing loans and leases were $24.0 million and $14.4 million at September 30, 2020 and 2019, respectively. There were $10.1 million and $12.1 million in accruing loans and leases delinquent 90 days or more at September 30, 2020 and 2019, respectively. For the fiscal year ended September 30, 2020, gross interest income, which would have been recorded had the non-accruing loans and leases been current in accordance with their original terms, was insignificant, none of which was included in interest income.

Certain loans and leases 89 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) one-to-four family real estate loans or consumer loans exempt under regulatory rules from being classified as non-accrual until later delinquency, usually 120 days past due.

When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often, this is associated with a delay or shortfall in scheduled payments, as described above.

Impaired loans and leases at September 30, 2020 and 2019 were as follows:


September 30, 2020	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance
National Lending	(Dollars in Thousands)
Term lending	$	17,349	$	18,823	$	—
Asset based lending	3,914		3,914		—
Factoring	3,892		4,967		—
Lease financing	1,797		1,805		—

SBA/USDA	1,436		2,263		—

Commercial finance	28,388		31,772		—

Other consumer finance	1,987		2,104		—
Consumer finance	1,987		2,104		—


Total National Lending	30,375		33,876		—
Community Banking

Consumer one-to-four family real estate and other	104		104		—
Agricultural real estate and operating	6,421		6,421		—
Total Community Banking	6,525		6,525		—
Total	$	36,900	$	40,401	$	—
Loans and leases with a specific valuation allowance
National Lending
Term lending	$	8,736	$	8,736	$	3,155
Asset based lending	1,403		1,403		355
Factoring	1,179		1,191		274
Lease financing	2,900		2,900		1,194



Commercial finance	14,218		14,230		4,978





Total National Lending	14,218		14,230		4,978
Community Banking
Commercial real estate and operating	160		160		141


Total Community Banking	160		160		141
Total	$	14,378	$	14,390	$	5,119


September 30, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance
National Lending	(Dollars in Thousands)
Term lending	$	12,644	$	13,944	$	—
Asset based lending	378		378		—
Factoring	1,563		2,638		—
Lease financing	1,062		1,062		—

SBA/USDA	2,595		2,595		—

Commercial finance	18,242		20,617		—

Other consumer finance	1,472		1,539		—
Consumer finance	1,472		1,539		—


Total National Lending	19,714		22,156		—
Community Banking
Commercial real estate and operating	258		258		—
Consumer one-to-four family real estate and other	100		100		—
Agricultural real estate and operating	2,985		2,985		—
Total Community Banking	3,343		3,343		—
Total	$	23,057	$	25,499	$	—
Loans and leases with a specific valuation allowance
National Lending
Term lending	$	6,924	$	6,951	$	450

Factoring	2,261		3,601		1,262
Lease financing	151		151		112

SBA/USDA	1,246		1,246		51

Commercial finance	10,582		11,949		1,875





Total National Lending	10,582		11,949		1,875





Total	$	10,582	$	11,949	$	1,875

The following table provides the average recorded investment in impaired loans and leases for the fiscal years ended:


	Fiscal Year Ended September 30,
	2020				2019
(Dollars in Thousands)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
National Lending
Term lending	$	26,126	$	386	$	6,119	$	344
Asset based lending	1,339		—		1,347		—
Factoring	4,075		13		4,751		5
Lease financing	3,370		16		3,313		17

SBA/USDA	3,164		—		639		—

Commercial finance	38,074		415		16,169		$	366

Other consumer finance	1,860		143		1,207		67
Consumer finance	1,860		143		1,207		67


Total National Lending	39,934		558		17,376		433
Community Banking
Commercial real estate and operating	466		27		269		14
Consumer one-to-four family real estate and other	114		10		172		6
Agricultural real estate and operating	2,949		(74)		1,483		107
Total Community Banking	3,529		(37)		1,924		127
Total loans and leases	$	43,463	$	521	$	19,300	$	560

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 $9.5 million of National Lending loans and leases and $5.2 million of Community Banking loans that were modified in a TDR during the fiscal year ended September 30, 2020, all of which were modified to extend the term of the loan. There were $2.9 million of National Lending loans and leases and $2.5 million of Community Banking loans that were modified in a TDR during the fiscal year ended September 30, 2019.

During the fiscal year ended September 30, 2020, the Company had $3.9 million of National Lending loans and $3.3 million of Community Banking 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, 2019, the Company had $0.9 million of Community Banking loans and $0.2 million of National Lending loans or leases 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 loan and lease losses were insignificant during the fiscal years ended September 30, 2020 and September 30, 2019.