

(Dollars in Thousands)	December 31, 2019			September 30, 2019
National Lending
Term lending⁽¹⁾	$	695,347		$	641,742
Asset based lending⁽¹⁾	250,633			250,465
Factoring	285,776			296,507
Lease financing⁽¹⁾	223,715			177,915
Insurance premium finance	349,299			361,105
SBA/USDA	90,269			88,831
Other commercial finance	99,617			99,665
Commercial finance	1,994,656			1,916,230
Consumer credit products	115,843			106,794
Other consumer finance	154,772			161,404
Consumer finance	270,615			268,198
Tax services	101,739			2,240
Warehouse finance	272,522			262,924
Total National Lending	2,639,532			2,449,592
Community Banking
Commercial real estate and operating	682,399			883,932
Consumer one-to-four family real estate and other	220,588			259,425
Agricultural real estate and operating	40,778			58,464
Total Community Banking	943,765			1,201,821
Total loans and leases	3,583,297			3,651,413
Net deferred loan origination fees (costs)	7,177			7,434
Total gross loans and leases	3,590,474			3,658,847

Allowance for loan and lease losses	(30,176		)	(29,149		)
Total loans and leases, net⁽²⁾	$	3,560,298		$	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⁾ As of December 31, 2019, 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 $276.7 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $5.0 million and $2.6 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.7 million. 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.



(Dollars in Thousands)	Quarter Ended December 31, 2019
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	4,087

Leasing and equipment finance non-interest income
Lease income from operating lease payments	11,203
Profit (loss) recorded on commencement date on sales-type leases	471
Other⁽¹⁾	750
Total leasing and equipment finance non-interest income	12,424
Total lease income	$	16,511

⁽¹⁾ Other leasing and equipment finance non-interest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended December 31, 2019	(Dollars in Thousands)
National Lending
Term lending	$	5,533	$	3,401		$	(2,295	)	$	111	$	6,750
Asset based lending	2,437		(461		)	—			19		1,995
Factoring	3,261		257			(389		)	419		3,548
Lease financing	1,275		504			(215		)	131		1,695
Insurance premium finance	1,024		141			(285		)	90		970
SBA/USDA	383		382			—			—		765
Other commercial finance	683		(523		)	—			—		160
Commercial finance	14,596		3,701			(3,184		)	770		15,883
Consumer credit products	1,044		63			—			—		1,107
Other consumer finance	5,118		476			(734		)	29		4,889
Consumer finance	6,162		539			(734		)	29		5,996
Tax services	—		911			—			739		1,650
Warehouse finance	263		6			—			—		269
Total National Lending	21,021		5,157			(3,918		)	1,538		23,798
Community Banking
Commercial real estate and operating	6,208		(1,543		)	—			—		4,665
Consumer one-to-four family real estate and other	1,053		(22		)	—			—		1,031
Agricultural real estate and operating	867		(185		)	—			—		682
Total Community Banking	8,128		(1,750		)	—			—		6,378
Total	$	29,149	$	3,407		$	(3,918	)	$	1,538	$	30,176



Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended December 31, 2018	(Dollars in Thousands)
National Lending
Term lending	$	89	$	710		$	(328	)	$	1,364	$	1,835
Asset based lending	47		724			—			4		775
Factoring	64		1,223			(250		)	26		1,062
Lease financing	30		600			(352		)	260		538
Insurance premium finance	1,031		93			(208		)	56		972
SBA/USDA	13		240			—			—		253
Other commercial finance	28		263			—			—		291
Commercial finance	1,302		3,853			(1,138		)	1,710		5,727
Consumer credit products	785		366			—			—		1,151
Other consumer finance	2,820		3,023			(1,624		)	3		4,222
Consumer finance	3,605		3,389			(1,624		)	3		5,373
Tax services	—		1,496			(42		)	92		1,546
Warehouse finance	65		111						—		176
Total National Lending	4,972		8,849			(2,804		)	1,805		12,822
Community Banking
Commercial real estate and operating	6,220		350			—			—		6,570
Consumer one-to-four family real estate and other	632		87			—			—		719
Agricultural real estate and operating	1,216		(187		)	—			150		1,179
Total Community Banking	8,068		250			—			150		8,468
Total	$	13,040	$	9,099		$	(2,804	)	$	1,955	$	21,290



	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
As of December 31, 2019	(Dollars in Thousands)
National Lending
Term lending	$	1,299	$	5,451	$	6,750	$	25,912	$	669,435	$	695,347
Asset based lending	109		1,886		1,995		525		250,108		250,633
Factoring	1,075		2,473		3,548		3,900		281,876		285,776
Lease financing	299		1,396		1,695		2,195		221,520		223,715
Insurance premium finance	—		970		970		—		349,299		349,299
SBA/USDA	486		279		765		3,683		86,586		90,269
Other commercial finance	—		160		160		—		99,617		99,617
Commercial finance	3,268		12,615		15,883		36,215		1,958,441		1,994,656
Consumer credit products	—		1,107		1,107		—		115,843		115,843
Other consumer finance	—		4,889		4,889		1,708		153,064		154,772
Consumer finance	—		5,996		5,996		1,708		268,907		270,615
Tax services	—		1,650		1,650		—		101,739		101,739
Warehouse finance	—		269		269		—		272,522		272,522
Total National Lending	3,268		20,530		23,798		37,923		2,601,609		2,639,532
Community Banking
Commercial real estate and operating	—		4,665		4,665		823		681,576		682,399
Consumer one-to-four family real estate and other	—		1,031		1,031		69		220,519		220,588
Agricultural real estate and operating	—		682		682		2,793		37,985		40,778
Total Community Banking	—		6,378		6,378		3,685		940,080		943,765
Total	$	3,268	$	26,908	$	30,176	$	41,608	$	3,541,689	$	3,583,297



	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
As of September 30, 2019	(Dollars in Thousands)
National Lending
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

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.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.

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 first quarter of fiscal year 2020, 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 first quarter of fiscal year 2020, 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. Despite the movement of certain commercial finance loans between risk rating categories, the aggregate balance of watch and special mention loans and leases within the commercial finance portfolio decreased slightly to $139.7 million at December 31, 2019, 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 first quarter of fiscal year 2020. 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 $270.6 million and $101.7 million at December 31, 2019, respectively, and $268.2 million and $2.2 million at September 30, 2019, respectively.



Asset Classification	Pass		Watch		Special Mention		Substandard		Doubtful		Total
December 31, 2019	(Dollars in Thousands)
National Lending
Term lending	$	631,408	$	33,446	$	4,581	$	25,847	$	65	$	695,347
Asset based lending	193,824		51,348		4,936		525		—		250,633
Factoring	250,382		26,130		5,364		3,900		—		285,776
Lease financing	218,187		3,334		—		2,194		—		223,715
Insurance premium finance	344,668		869		634		2,926		202		349,299
SBA/USDA	78,259		1,569		6,758		3,683		—		90,269
Other commercial finance	98,926		691		—		—		—		99,617
Commercial finance	1,815,654		117,387		22,273		39,075		267		1,994,656
Warehouse finance	272,522		—		—		—		—		272,522
Total National Lending	2,088,176		117,387		22,273		39,075		267		2,267,178
Community Banking
Commercial real estate and operating	674,189		1,225		3,389		3,596		—		682,399
Consumer one-to-four family real estate and other	219,223		428		781		156		—		220,588
Agricultural real estate and operating	21,789		4,804		5,873		8,312		—		40,778
Total Community Banking	915,201		6,457		10,043		12,064		—		943,765
Total loans and leases	$	3,003,377	$	123,844	$	32,316	$	51,139	$	267	$	3,210,943



Asset Classification	Pass		Watch		Special Mention		Substandard		Doubtful		Total
September 30, 2019	(Dollars in Thousands)
National Lending
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

Term Lending. Through its Crestmark division, the Bank originates a variety of collateralized conventional term loans and notes receivable, with terms ranging from three years to 25 years. These term loans may be secured by equipment, recurring revenue streams, or real estate. Credit risk is managed through setting loan amounts appropriate for the collateral by utilizing information ranging from equipment cost, appraisals, valuations, or lending history. The Bank follows standardized loan policies and established and authorized credit limits and applies attentive portfolio management, which includes monitoring past dues, financial performance, financial covenants, and industry trends.

Asset-Based Lending. Through its Crestmark division, the Bank provides asset-based loans secured by short-term assets such as inventory, accounts receivable, and work-in-process. Asset-based loans may also be secured by real estate and equipment. The primary sources of repayment are the operating income of the borrower, the collection of the receivables securing the loan, and/or the sale of the inventory securing the loan. Loans are typically revolving lines of credit with terms of one year to three years, whereby the Bank withholds a contingency reserve representing the difference between the amount advanced and the fair value of the invoice amount or other collateral value. Credit risk is managed through advance rates appropriate for the collateral, standardized loan policies, established and authorized credit limits, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the debtors' cash receipts.

Factoring. Through its Crestmark division, the Bank provides factoring lending where clients provide detailed inventory, accounts receivable, and work-in-process reports for lending arrangements. The factoring clients are diversified as to industry and geography. With these loans, the Crestmark division withholds a contingency reserve, which is the difference between the fair value of the invoice amount or other collateral value and the amount advanced. This reserve is withheld for nonpayment of factored receivables, service fees and other adjustments. Credit risk is managed through standardized advance policies, established and authorized credit limits, verification of receivables, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the client's cash receipts. In addition, clients generally guarantee the payment of purchased accounts receivable.

Lease Financing. Through its Crestmark division, the Bank provides creative, flexible lease solutions for technology, capital equipment and select transportation assets like tractors and trailers. Direct financing leases and sales-type leases substantially transfer the benefits and risks of equipment ownership to the lessee. The lease may contain provisions that transfer ownership to the lessee at the end of the initial term, contain a bargain purchase option or allow for purchase of the equipment at fair market value. Residual values are estimated at the inception of the lease. Lease maturities are generally no greater than 84 months. The focus in this lease financing category is to support middle market companies by providing a variety of financing products to help them meet their business objectives.

Insurance Premium Finance. Through its AFS/IBEX division the Bank provides, on a national basis, short-term, primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk, otherwise known as insurance premium financing. This includes, but is not limited to, policies for commercial property, casualty and liability risk. Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term. The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine months to 10 months on average. The down payment is set such that if the policy is canceled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.

Other Commercial Finance. Included in this category of loans are the Company's healthcare receivables loan portfolio primarily comprised of loans to individuals for medical services received. The majority of these loans are guaranteed by the hospital providing the service to the debtor and this guarantee serves to reduce credit risk as the guarantors agree to repurchase severely delinquent loans. Credit risk is minimized on these loans based on the guarantor’s repurchase agreement. This loan category also includes commercial real estate loans to customers of the Crestmark division.

Consumer Credit Products. The Bank designs its credit program relationships with certain desired outcomes. Three high priority outcomes are liquidity, credit protection, and risk retention. The Bank believes the benefits of these outcomes not only support its goals but the goals of the credit program partner as well. The Bank designs its program credit protections in a manner so that the Bank earns a reasonable risk adjusted return, but is protected by certain layers of credit support, similar to what you would find in structured finance. The Bank will hold a sizable portion of the originated asset on its own balance sheet, but retains the flexibility to sell a portion of the originated asset to other interested parties, thereby supporting program liquidity.

Other Consumer Finance. The Bank's purchased student loan portfolios are seasoned, floating rate, private portfolios that are serviced by a third-party servicer. The portfolio purchased during the first quarter of fiscal year 2018 is indexed to one-month of the London Interbank Offered Rate ("LIBOR"), while the portfolio purchased in the first quarter of fiscal year 2017 is indexed to three-month LIBOR plus various margins. The Company received written notification on June 18, 2018 from ReliaMax Surety Company ("ReliaMax"), the company that provided insurance coverage for the student loan portfolios, which informed policy holders that the South Dakota Division of Insurance filed a petition to have ReliaMax declared insolvent and to adopt a plan of liquidation. An Order of Liquidation was entered on June 27, 2018 by the Sixth Circuit Court in Hughes County, South Dakota, declaring ReliaMax insolvent and appointing the South Dakota Division of Insurance as liquidator to adopt a plan of liquidation. The Company expects to ultimately recover a portion of the unearned premiums, though the Company can provide no assurance as to the timing and amount of any such recovery.

The Bank's tax services division provides short-term taxpayer advance loans. Taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of taxpayer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a taxpayer advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

Through its tax services division, the Bank provides short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

The Company engages in commercial and multi-family real estate lending in the community bank's primary market areas and surrounding areas. These loans are secured primarily by apartment buildings, office buildings, and hotels. Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property securing the loan, and are typically secured by guarantees of the borrowers.

The Company originates its community banking commercial operating loans primarily in the community bank's market areas. Most of these commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable. Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year.

The Company originates one-to-four family residential mortgage loans in the community bank's primary market areas with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the property securing the loan or the contract price. However, the vast majority of these loans are originated with loan-to-value ratios below 80%. The Company also currently offers five- and ten-year ARM loans.

The Company also originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans, as well as loans secured by savings deposits in its primary market areas and surrounding areas. Substantially all of the Company’s home equity loans and lines of credit are secured by second mortgages on principal residences. The Bank will lend amounts which, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan. Home equity loans and lines of credit generally have maximum terms of five years.

The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer, and other farm-related products, primarily in its market areas. Agricultural operating loans are originated at either an adjustable- or fixed-rate of interest for up to a one year term or, in the case of livestock, are due upon sale. Agricultural real estate loans are frequently originated with adjustable rates of interest. Generally, such loans provide for a fixed rate of interest for the first five years to 10 years, after which the loan will balloon or the interest rate will adjust annually. These loans generally amortize over a period of 20 years to 25 years. Fixed-rate agricultural real estate loans typically have terms up to 10 years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.



Past Due Loans and Leases	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
December 31, 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	$	63	$	—	$	—	$	63	$	264,361	$	264,424	$	—	$	—	$	—

National Lending
Term lending	12,300		2,767		12,679		27,746		667,601		695,347		1,316		12,372		13,688
Asset based lending	26		—		—		26		250,607		250,633		—		583		583
Factoring	—		—		—		—		285,776		285,776		—		205		205
Lease financing	3,757		758		1,893		6,408		217,307		223,715		1,286		729		2,015
Insurance premium finance	7,065		1,117		3,131		11,313		337,986		349,299		3,131		—		3,131
SBA/USDA	979		—		29		1,008		89,261		90,269		—		2,704		2,704
Other commercial finance	—		—		—		—		99,617		99,617		—		—		—
Commercial finance	24,127		4,642		17,732		46,501		1,948,155		1,994,656		5,733		16,593		22,326
Consumer credit products	953		430		318		1,701		114,142		115,843		318		—		318
Other consumer finance	1,342		804		1,330		3,476		151,296		154,772		1,330		—		1,330
Consumer finance	2,295		1,234		1,648		5,177		265,438		270,615		1,648		—		1,648
Tax services	—		—		—		—		101,739		101,739		—		—		—
Warehouse finance	—		—		—		—		272,522		272,522		—		—		—
Total National Lending	26,422		5,876		19,380		51,678		2,587,854		2,639,532		7,381		16,593		23,974
Community Banking
Commercial real estate and operating	—		—		—		—		682,399		682,399		—		—		—
Consumer one-to-four family real estate and other	346		74		9		429		220,159		220,588		—		9		9
Agricultural real estate and operating	30		1,538		—		1,568		39,210		40,778		—		—		—
Total Community Banking	376		1,612		9		1,997		941,768		943,765		—		9		9
Total loans and leases held for investment	26,798		7,488		19,389		53,675		3,529,622		3,583,297		7,381		16,602		23,983

Total loans and leases	$	26,861	$	7,488	$	19,389	$	53,738	$	3,793,983	$	3,847,721	$	7,381	$	16,602	$	23,983



Past Due Loans and Leases	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
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



December 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Term lending	$	17,125	$	19,112	$	—
Factoring	1,387		2,462		—
Lease financing	1,418		1,418		—
Commercial finance	19,930		22,992		—
Other consumer finance	1,708		1,806		—
Consumer finance	1,708		1,806		—
Total National Lending	21,638		24,798		—
Community Banking
Commercial real estate and operating	823		823		—
Consumer one-to-four family real estate and other	69		69		—
Agricultural real estate and operating	2,793		2,793		—
Total Community Banking	3,685		3,685		—
Total	$	25,323	$	28,483	$	—
Loans and leases with a specific valuation allowance
National Lending
Term lending	$	8,787	$	10,087	$	1,299
Asset based lending	525		525		109
Factoring	2,513		2,525		1,075
Lease financing	777		777		299
SBA/USDA	3,683		3,683		486
Commercial finance	16,285		17,597		3,268
Total National Lending	16,285		17,597		3,268
Total	$	16,285	$	17,597	$	3,268



September 30, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
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



Three Months Ended December 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Term lending	$	19,537	$	74	$	5,709	$	79
Asset based lending	427		—		—		—
Factoring	3,849		—		2,780		5
Lease financing	3,686		—		3,602		10
SBA/USDA	3,788		—		—		—
Commercial finance	31,287		74		12,091		94
Other consumer finance	1,551		35		—		—
Consumer finance	1,551		35		—		—
Total National Lending	32,838		109		12,091		94
Community Banking
Commercial real estate and operating	446		13		404		4
Consumer one-to-four family real estate and other	90		8		139		2
Agricultural real estate and operating	2,921		42		1,473		25
Total Community Banking	3,457		63		2,016		31
Total loans and leases	$	36,295	$	172	$	14,107	$	125

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 $0.6 million of Community Banking loans and $0.4 million of National Lending loans that were modified in a TDR during the three months ended December 31, 2019, all of which were modified to extend the term of the loan. There were $0.1 million of Community Banking loans and $0.1 million of National Lending loans and leases that were modified in a TDR during the three months ended December 31, 2018.

During the quarter ended December 31, 2019, the Company had $1.2 million of Community Banking loans and $0.3 million of National Lending loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the quarter ended December 31, 2018, the Company had no loans that were modified in a TDR within the previous 12 months and for which there was a payment default. TDR net charge-offs and the impact of TDRs on the Company's allowance for loan and lease losses were insignificant during the quarters ended December 31, 2019 and December 31, 2018.

At December 31, 2019, foreclosed and repossessed assets totaled $1.3 million, compared to $29.5 million at September 30, 2019. At December 31, 2019 and September 30, 2019, the Company had established a valuation allowance of $0.1 million for repossessed assets. There were no impairments on any foreclosed and repossessed assets at either date. The Company had no loans or leases in the process of foreclosure at December 31, 2019 or September 30, 2019.