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LOANS AND LEASES, NET | 3 Months Ended
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Dec. 31, 2020
Loans and Leases Receivable Disclosure [Abstract] |
LOANS AND LEASES, NET | LOANS AND LEASES, NET Loans and leases consist of the following:
(Dollars in Thousands) | December 31, 2020 |  | September 30, 2020
National Lending |  |  |
Term lending | $ | 881,306 |  |  | $ | 805,323 |
Asset based lending | 242,298 |  |  | 182,419 |
Factoring | 275,650 |  |  | 281,173 |
Lease financing | 283,722 |  |  | 281,084 |
Insurance premium finance | 338,227 |  |  | 337,940 |
SBA/USDA | 300,707 |  |  | 318,387 |
Other commercial finance | 101,209 |  |  | 101,658 |
Commercial finance | 2,423,119 |  |  | 2,307,984 |
Consumer credit products | 88,595 |  |  | 89,809 |
Other consumer finance | 162,423 |  |  | 134,342 |
Consumer finance | 251,018 |  |  | 224,151 |
Tax services | 92,548 |  |  | 3,066 |
Warehouse finance | 318,937 |  |  | 293,375 |
Total National Lending | 3,085,622 |  |  | 2,828,576 |
Community Banking |  |  |
Commercial real estate and operating | 339,141 |  |  | 457,371 |
Consumer one-to-four family real estate and other | 5,077 |  |  | 16,486 |
Agricultural real estate and operating | 9,724 |  |  | 11,707 |
Total Community Banking | 353,942 |  |  | 485,564 |
Total loans and leases | 3,439,564 |  |  | 3,314,140 |
Net deferred loan origination fees (costs) | 9,111 |  |  | 8,625 |
Total gross loans and leases | 3,448,675 |  |  | 3,322,765 |
Allowance for credit losses | (72,389) |  |  | (56,188) |
Total loans and leases, net | $ | 3,376,286 |  |  | $ | 3,266,577 |
During the three months ended December 31, 2020, the Company transferred $100.4 million of Community Banking loans to held for sale. During the three months ended December 31, 2019, the Company transferred $251.9 million of Community Banking loans to held for sale. During the three months ended December 31, 2020 and 2019, the Company originated $303.5 million of other consumer finance, SBA/USDA, and consumer credit product loans as held for sale and $16.2 million of SBA/USDA and consumer credit product loans as held for sale, respectively. The Company sold held for sale loans resulting in proceeds of $451.7 million and gains on sale of $3.5 million during the three months ended December 31, 2020. The Company sold held for sale loans resulting in proceeds of $143.0 million and gains on sale of $1.9 million during the three months ended December 31, 2019. Loans purchased and sold by portfolio segment, including participation interests, for the three months ended were as follows:
| Three Months Ended December 31, |  |
(Dollars in Thousands) | 2020 |  | 2019 |  |  |  |
Loans Purchased |  |  |  |  |  |  |
Loans held for investment: |  |  |  |  |  |  |
Total National Lending | $ | 62,631 |  |  | $ | 14,464 |  |  |  |  |
Total Community Banking | 2,299 |  |  | 4,349 |  |  |  |  |
Total purchases | $ | 64,930 |  |  | $ | 18,813 |  |  |  |  |
Loans Sold |  |  |  |  |  |  |
Loans held for sale: |  |  |  |  |  |  |
Total National Lending | $ | 321,864 |  |  | $ | 143,035 |  |  |  |  |
Total Community Banking | 129,788 |  |  | — |  |  |  |  |
Loans held for investment: |  |  |  |  |  |  |
Total Community Banking | — |  |  | 3,099 |  |  |  |  |
Total sales | $ | 451,652 |  |  | $ | 146,134 |  |  |  |  |
Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in Thousands) | December 31, 2020 |  | September 30, 2020
Carrying Amount | $ | 300,748 |  |  | $ | 299,487 |
Unguaranteed residual assets | 17,488 |  |  | 17,203 |
Unamortized initial direct costs | 2,056 |  |  | 2,078 |
Unearned income | (34,514) |  |  | (35,606) |
Total net investment in direct financing and sales-type leases | $ | 285,778 |  |  | $ | 283,162 |
The carrying amount of direct financing and sales-type leases subject to residual value guarantees was $8.4 million at December 31, 2020. The components of total lease income were as follows:
| Three Months Ended December 31, |  |
(Dollars in Thousands) | 2020 |  | 2019 |  |
Interest income - loans and leases |  |  |  |  |
Interest income on net investments in direct financing and sales-type leases | $ | 5,319 |  |  | $ | 4,087 |  |  |
Leasing and equipment finance noninterest income |  |  |  |  |
Lease income from operating lease payments | 10,041 |  |  | 11,203 |  |  |
Profit (loss) recorded on commencement date on sales-type leases | 71 |  |  | 471 |  |  |
Other(1) | 69 |  |  | 750 |  |  |
Total leasing and equipment finance noninterest income | 10,181 |  |  | 12,424 |  |  |
Total lease income | $ | 15,500 |  |  | $ | 16,511 |  |  |
(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) | December 31, 2020
Remaining in 2021 | $ | 85,352 |
2022 | 95,224 |
2023 | 66,168 |
2024 | 36,759 |
2025 | 13,669 |
Thereafter | 3,576 |
Equipment under leases not yet commenced | — |
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases | 300,748 |
Third-party residual value guarantees | — |
Total carrying amount of direct financing and sales-type leases | $ | 300,748 |
The Company did not record any contingent rental income from direct financing and sales-type leases in the three months ended December 31, 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 continues to be 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 continues to assess the impact to our customers and businesses as a result of COVID-19 and will refine our estimate as more information becomes available. Effective October 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related ASUs on a modified retrospective basis. Financial information at and for the quarter ended December 31, 2020 is reflected as such. The historical information disclosed is in accordance with Topic 310. Activity in the allowance for credit losses and balances of loans and leases by portfolio segment for each of the three months ended was as follows:
| Three Months Ended December 31, 2020
(Dollars in Thousands) | Beginning Balance |  | Impact of CECL Adoption |  | Provision (Recovery) for Credit Losses(2) |  | Charge-offs |  | Recoveries |  | Ending Balance
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |
National Lending |  |  |  |  |  |  |  |  |  |  |
Term lending | $ | 15,211 |  |  | $ | 9,999 |  |  | $ | 6,026 |  |  | $ | (3,312) |  |  | $ | 296 |  |  | $ | 28,220 |
Asset based lending | 1,406 |  |  | 164 |  |  | 839 |  |  | (600) |  |  | — |  |  | 1,809 |
Factoring | 3,027 |  |  | 987 |  |  | (1,416) |  |  | (1) |  |  | 1,122 |  |  | 3,719 |
Lease financing | 7,023 |  |  | (556) |  |  | 1,112 |  |  | (876) |  |  | 81 |  |  | 6,784 |
Insurance premium finance | 2,129 |  |  | (965) |  |  | 488 |  |  | (656) |  |  | 289 |  |  | 1,285 |
SBA/USDA | 940 |  |  | 2,720 |  |  | (497) |  |  | — |  |  | 1 |  |  | 3,164 |
Other commercial finance | 182 |  |  | 364 |  |  | (67) |  |  | — |  |  | — |  |  | 479 |
Commercial finance | 29,918 |  |  | 12,713 |  |  | 6,485 |  |  | (5,445) |  |  | 1,789 |  |  | 45,460 |
Consumer credit products | 845 |  |  | — |  |  | (10) |  |  | — |  |  | — |  |  | 835 |
Other consumer finance | 2,821 |  |  | 5,998 |  |  | 1,482 |  |  | (218) |  |  | 93 |  |  | 10,176 |
Consumer finance | 3,666 |  |  | 5,998 |  |  | 1,472 |  |  | (218) |  |  | 93 |  |  | 11,011 |
Tax services | 2 |  |  | — |  |  | 454 |  |  | — |  |  | 956 |  |  | 1,412 |
Warehouse finance | 294 |  |  | (1) |  |  | 26 |  |  | — |  |  | — |  |  | 319 |
Total National Lending | 33,880 |  |  | 18,710 |  |  | 8,437 |  |  | (5,663) |  |  | 2,838 |  |  | 58,202 |
Community Banking |  |  |  |  |  |  |  |  |  |  |
Commercial real estate and operating | 21,867 |  |  | (5,616) |  |  | (2,119) |  |  | (11) |  |  | — |  |  | 14,121 |
Consumer one-to-four family real estate and other | 298 |  |  | (247) |  |  | (32) |  |  | — |  |  | — |  |  | 19 |
Agricultural real estate and operating | 143 |  |  | (74) |  |  | (22) |  |  | — |  |  | — |  |  | 47 |
Total Community Banking | 22,308 |  |  | (5,937) |  |  | (2,173) |  |  | (11) |  |  | — |  |  | 14,187 |
Total loans and leases | 56,188 |  |  | 12,773 |  |  | 6,264 |  |  | (5,674) |  |  | 2,838 |  |  | 72,389 |
Unfunded commitments(1) | 32 |  |  | 831 |  |  | (175) |  |  | — |  |  | — |  |  | 688 |
Total | $ | 56,220 |  |  | $ | 13,604 |  |  | $ | 6,089 |  |  | $ | (5,674) |  |  | $ | 2,838 |  |  | $ | 73,077 |
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statement of Financial Condition. (2) As a result of the adoption of CECL, effective October 1, 2020, the provision for credit losses includes the provision for unfunded commitments that was previously included within other noninterest expense.
| Three Months Ended December 31, 2019
(Dollars in Thousands) | Beginning Balance |  | Provision (Recovery) for Loan and Lease Losses |  | Charge-offs |  | Recoveries |  | Ending Balance
Allowance for loan and lease losses: |  |  |  |  |  |  |  |  |
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 | 8,218 |  |  | (1,750) |  |  | — |  |  | — |  |  | 6,378 |
Total | $ | 29,149 |  |  | $ | 3,407 |  |  | $ | (3,918) |  |  | $ | 1,538 |  |  | $ | 30,176 |
The following tables provide additional disclosures previously required by ASC Topic 310 related to the Company's September 30, 2020 balances.
| Allowance |  | Loans and Leases
(Dollars in Thousands) | 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
Recorded Investment |  |  |  |  |  |  |  |  |  |  |
National Lending |  |  |  |  |  |  |  |  |  |  |
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 | — |  |  | 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 |
Information on impaired loans and leases, all of which are deemed to be collateral dependent and are evaluated individually for the ACL, as of December 31, 2020 was as follows:
(Dollars in Thousands) | December 31, 2020
National Lending |
Term lending | $ | 12,879 |
Asset based lending | 908 |
Factoring | 842 |
Lease financing | 2,420 |
SBA/USDA | 600 |
Commercial finance | 17,649 |
Total National Lending | 17,649 |
Community Banking |
Commercial real estate and operating | 18,456 |
Consumer one-to-four family real estate and other | 173 |
Agricultural real estate and operating | 6,343 |
Total Community Banking | 24,972 |
Total | $ | 42,621 |
Information on impaired loans and leases as of September 30, 2020 was as follows:
(Dollars in Thousands) | Recorded Balance |  | Unpaid Principal Balance |  | Specific Allowance
Loans and leases without a specific valuation allowance |  |  |  |  |
National Lending |  |  |  |  |
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 Loans | 160 |  |  | 160 |  |  | 141 |
Total | $ | 14,378 |  |  | $ | 14,390 |  |  | $ | 5,119 |
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 December 31, 2020, $84.2 million of loan and lease balances that were granted deferral payments by the Company were still in their deferment period due to performing borrowers experiencing temporary hardship from COVID-19. 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. The Company elected to accrue and recognize interest income on these modifications during the payment deferral period. 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. 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 Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” 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 credit losses 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 $251.0 million and $92.5 million at December 31, 2020, respectively, and $224.2 million and $3.1 million at September 30, 2020, 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
As of December 31, 2020 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior
Term lending |  |  |  |  |  |  |  |
Pass | $ | 107,414 |  | $ | 321,578 |  | $ | 130,293 |  | $ | 68,889 |  | $ | 46,776 |  | $ | 123,244 |  | $ | — |  | $ | 798,194 |
Watch | 718 |  | 4,081 |  | 8,058 |  | 915 |  | 3,850 |  | 11,660 |  | — |  | 29,282 |
Special Mention | — |  | 6,322 |  | 4,220 |  | 1,332 |  | 269 |  | 2,101 |  | — |  | 14,244 |
Substandard | 1,092 |  | 14,147 |  | 12,326 |  | 7,691 |  | — |  | 1,766 |  | — |  | 37,022 |
Doubtful | — |  | 1,264 |  | 832 |  | 456 |  | — |  | 12 |  | — |  | 2,564 |
Total | 109,224 |  | 347,392 |  | 155,729 |  | 79,283 |  | 50,895 |  | 138,783 |  | — |  | 881,306 |
Asset based lending |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 147,064 |  | 147,064 |
Watch | — |  | — |  | — |  | — |  | — |  | — |  | 73,402 |  | 73,402 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | 19,750 |  | 19,750 |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 2,082 |  | 2,082 |
Total | — |  | — |  | — |  | — |  | — |  | — |  | 242,298 |  | 242,298 |
Factoring |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 217,566 |  | 217,566 |
Watch | — |  | — |  | — |  | — |  | — |  | — |  | 31,257 |  | 31,257 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | 18,779 |  | 18,779 |
Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 8,048 |  | 8,048 |
Total | — |  | — |  | — |  | — |  | — |  | — |  | 275,650 |  | 275,650 |
Lease financing |  |  |  |  |  |  |  |
Pass | 32,970 |  | 161,904 |  | 51,762 |  | 16,780 |  | 1,282 |  | 2,297 |  | — |  | 266,995 |
Watch | 132 |  | 6,619 |  | 236 |  | 954 |  | 272 |  | 55 |  | — |  | 8,268 |
Special Mention | — |  | 2,048 |  | 1,295 |  | 213 |  | — |  | — |  | — |  | 3,556 |
Substandard | — |  | 288 |  | 3,585 |  | 277 |  | 3 |  | 496 |  | — |  | 4,649 |
Doubtful | — |  | 51 |  | 114 |  | 89 |  | — |  | — |  | — |  | 254 |
Total | 33,102 |  | 170,910 |  | 56,992 |  | 18,313 |  | 1,557 |  | 2,848 |  | — |  | 283,722 |
Insurance premium finance |  |  |  |  |  |  |  |
Pass | 173,400 |  | 164,238 |  | 41 |  | — |  | — |  | — |  | — |  | 337,679 |
Watch | — |  | 127 |  | 3 |  | — |  | — |  | — |  | — |  | 130 |
Special Mention | — |  | 175 |  | 2 |  | — |  | — |  | — |  | — |  | 177 |
Substandard | — |  | 135 |  | 21 |  | — |  | — |  | — |  | — |  | 156 |
Doubtful | — |  | 83 |  | 2 |  | — |  | — |  | — |  | — |  | 85 |
Total | 173,400 |  | 164,758 |  | 69 |  | — |  | — |  | — |  | — |  | 338,227 |
SBA/USDA |  |  |  |  |  |  |  |
Pass | 724 |  | 222,726 |  | 25,001 |  | 22,946 |  | 9,505 |  | 5,025 |  | — |  | 285,927 |
Watch | — |  | 6,811 |  | 643 |  | 457 |  | 1,381 |  | 966 |  | — |  | 10,258 |
Special Mention | — |  | — |  | — |  | 1,823 |  | — |  | 73 |  | — |  | 1,896 |
Substandard | — |  | — |  | — |  | 1,209 |  | 703 |  | 714 |  | — |  | 2,626 |
Total | 724 |  | 229,537 |  | 25,644 |  | 26,435 |  | 11,589 |  | 6,778 |  | — |  | 300,707 |
Other commercial finance |  |  |  |  |  |  |  |
Pass | 2,450 |  | 4,841 |  | 8,183 |  | 4,080 |  | 4,137 |  | 74,263 |  | — |  | 97,954 |
Watch | 867 |  | — |  | — |  | — |  | — |  | 2,107 |  | — |  | 2,974 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Substandard | — |  | 281 |  | — |  | — |  | — |  | — |  | — |  | 281 |
Total | 3,317 |  | 5,122 |  | 8,183 |  | 4,080 |  | 4,137 |  | 76,370 |  | — |  | 101,209 |
Warehouse finance |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 318,937 |  | 318,937 |
Total | — |  | — |  | — |  | — |  | — |  | — |  | 318,937 |  | 318,937 |
Total National Lending |  |  |  |  |  |  |  |
Pass | 316,958 |  | 875,287 |  | 215,280 |  | 112,695 |  | 61,700 |  | 204,829 |  | 683,567 |  | 2,470,316 |
Watch | 1,717 |  | 17,638 |  | 8,940 |  | 2,326 |  | 5,503 |  | 14,788 |  | 104,659 |  | 155,571 |
Special Mention | — |  | 8,545 |  | 5,517 |  | 3,368 |  | 269 |  | 2,174 |  | 38,529 |  | 58,402 |
Substandard | 1,092 |  | 14,851 |  | 15,932 |  | 9,177 |  | 706 |  | 2,976 |  | 10,130 |  | 54,864 |
Doubtful | — |  | 1,398 |  | 948 |  | 545 |  | — |  | 12 |  | — |  | 2,903 |
Total | 319,767 |  | 917,719 |  | 246,617 |  | 128,111 |  | 68,178 |  | 224,779 |  | 836,885 |  | 2,742,056 |
Commercial real estate and operating |  |  |  |  |  |  |  |
Pass | — |  | 10,122 |  | 99,181 |  | 75,915 |  | 32,338 |  | 50 |  | 300 |  | 217,906 |
Watch | — |  | — |  | 8,046 |  | 57,291 |  | 28,157 |  | 6,593 |  | — |  | 100,087 |
Special Mention | — |  | 926 |  | — |  | — |  | — |  | 1,455 |  | — |  | 2,381 |
Substandard | — |  | 300 |  | 700 |  | 16,896 |  | — |  | 311 |  | — |  | 18,207 |
Doubtful | — |  | — |  | 560 |  | — |  | — |  | — |  | — |  | 560 |
Total | — |  | 11,348 |  | 108,487 |  | 150,102 |  | 60,495 |  | 8,409 |  | 300 |  | 339,141 |
Consumer 1-4 family real estate and other |  |  |  |  |  |  |  |
Pass | — |  | — |  | 161 |  | 645 |  | 381 |  | 2,940 |  | 8 |  | 4,135 |
Watch | — |  | — |  | — |  | 236 |  | — |  | — |  | — |  | 236 |
Special Mention | — |  | — |  | — |  | — |  | 139 |  | 66 |  | 206 |  | 411 |
Substandard | — |  | — |  | 111 |  | — |  | 41 |  | 143 |  | — |  | 295 |
Total | — |  | — |  | 272 |  | 881 |  | 561 |  | 3,149 |  | 214 |  | 5,077 |
Agricultural real estate and other |  |  |  |  |  |  |  |
Pass | — |  | — |  | 85 |  | — |  | — |  | — |  | — |  | 85 |
Watch | — |  | 1,583 |  | — |  | — |  | — |  | — |  | — |  | 1,583 |
Special Mention | — |  | — |  | — |  | 111 |  | — |  | 2,694 |  | — |  | 2,805 |
Substandard | — |  | 3,394 |  | — |  | 913 |  | — |  | 594 |  | 350 |  | 5,251 |
Total | — |  | 4,977 |  | 85 |  | 1,024 |  | — |  | 3,288 |  | 350 |  | 9,724 |
Total Community Bank |  |  |  |  |  |  |  |
Pass | — |  | 10,122 |  | 99,427 |  | 76,560 |  | 32,719 |  | 2,990 |  | 308 |  | 222,126 |
Watch | — |  | 1,583 |  | 8,046 |  | 57,527 |  | 28,157 |  | 6,593 |  | — |  | 101,906 |
Special Mention | — |  | 926 |  | — |  | 111 |  | 139 |  | 4,215 |  | 206 |  | 5,597 |
Substandard | — |  | 3,694 |  | 811 |  | 17,809 |  | 41 |  | 1,048 |  | 350 |  | 23,753 |
Doubtful | — |  | — |  | 560 |  | — |  | — |  | — |  | — |  | 560 |
Total | — |  | 16,325 |  | 108,844 |  | 152,007 |  | 61,056 |  | 14,846 |  | 864 |  | 353,942 |
Total Loans and Leases |  |  |  |  |  |  |  |
Pass | 316,958 |  | 885,409 |  | 314,707 |  | 189,255 |  | 94,419 |  | 207,819 |  | 683,875 |  | 2,692,442 |
Watch | 1,717 |  | 19,221 |  | 16,986 |  | 59,853 |  | 33,660 |  | 21,381 |  | 104,659 |  | 257,477 |
Special Mention | — |  | 9,471 |  | 5,517 |  | 3,479 |  | 408 |  | 6,389 |  | 38,735 |  | 63,999 |
Substandard | 1,092 |  | 18,545 |  | 16,743 |  | 26,986 |  | 747 |  | 4,024 |  | 10,480 |  | 78,617 |
Doubtful | — |  | 1,398 |  | 1,508 |  | 545 |  | — |  | 12 |  | — |  | 3,463 |
Total | $ | 319,767 |  | $ | 934,044 |  | $ | 355,461 |  | $ | 280,118 |  | $ | 129,234 |  | $ | 239,625 |  | $ | 837,749 |  | $ | 3,095,998 |
The recorded investment of loans and leases by asset classification was as follows:
Asset Classification | Pass |  | Watch |  | Special Mention |  | Substandard |  | Doubtful |  | Total
As of September 30, 2020 | (Dollars in Thousands)
National Lending |  |  |  |  |  |  |  |  |  |  |
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 |
Past due loans and leases were as follows:
| 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 |  | Non-accrual balance |  | Total
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale | $ | 165 |  |  | $ | — |  |  | $ | — |  |  | $ | 165 |  |  | $ | 133,494 |  |  | $ | 133,659 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
National Lending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term lending | 8,467 |  |  | 2,442 |  |  | 10,211 |  |  | 21,120 |  |  | 860,186 |  |  | 881,306 |  |  | 385 |  |  | 13,741 |  |  | 14,126 |
Asset based lending | — |  |  | — |  |  | — |  |  | — |  |  | 242,298 |  |  | 242,298 |  |  | — |  |  | 917 |  |  | 917 |
Factoring | — |  |  | — |  |  | — |  |  | — |  |  | 275,650 |  |  | 275,650 |  |  | — |  |  | 842 |  |  | 842 |
Lease financing | 11,257 |  |  | 4,144 |  |  | 3,424 |  |  | 18,825 |  |  | 264,897 |  |  | 283,722 |  |  | 1,042 |  |  | 2,607 |  |  | 3,649 |
Insurance premium finance | 3,349 |  |  | 772 |  |  | 665 |  |  | 4,786 |  |  | 333,441 |  |  | 338,227 |  |  | 665 |  |  | — |  |  | 665 |
SBA/USDA | 375 |  |  | — |  |  | 600 |  |  | 975 |  |  | 299,732 |  |  | 300,707 |  |  | — |  |  | 600 |  |  | 600 |
Other commercial finance | — |  |  | — |  |  | — |  |  | — |  |  | 101,209 |  |  | 101,209 |  |  | — |  |  | — |  |  | — |
Commercial finance | 23,448 |  |  | 7,358 |  |  | 14,900 |  |  | 45,706 |  |  | 2,377,413 |  |  | 2,423,119 |  |  | 2,092 |  |  | 18,707 |  |  | 20,799 |
Consumer credit products | 661 |  |  | 301 |  |  | 457 |  |  | 1,419 |  |  | 87,176 |  |  | 88,595 |  |  | 457 |  |  | — |  |  | 457 |
Other consumer finance | 754 |  |  | 103 |  |  | 675 |  |  | 1,532 |  |  | 160,891 |  |  | 162,423 |  |  | 675 |  |  | — |  |  | 675 |
Consumer finance | 1,415 |  |  | 404 |  |  | 1,132 |  |  | 2,951 |  |  | 248,067 |  |  | 251,018 |  |  | 1,132 |  |  | — |  |  | 1,132 |
Tax services | — |  |  | — |  |  | — |  |  | — |  |  | 92,548 |  |  | 92,548 |  |  | — |  |  | — |  |  | — |
Warehouse finance | — |  |  | — |  |  | — |  |  | — |  |  | 318,937 |  |  | 318,937 |  |  | — |  |  | — |  |  | — |
Total National Lending | 24,863 |  |  | 7,762 |  |  | 16,032 |  |  | 48,657 |  |  | 3,036,965 |  |  | 3,085,622 |  |  | 3,224 |  |  | 18,707 |  |  | 21,931 |
Community Banking |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate and operating | 13 |  |  | — |  |  | 560 |  |  | 573 |  |  | 338,568 |  |  | 339,141 |  |  | — |  |  | 18,456 |  |  | 18,456 |
Consumer one-to-four family real estate and other | — |  |  | — |  |  | 50 |  |  | 50 |  |  | 5,027 |  |  | 5,077 |  |  | — |  |  | 164 |  |  | 164 |
Agricultural real estate and operating | — |  |  | — |  |  | 1,769 |  |  | 1,769 |  |  | 7,955 |  |  | 9,724 |  |  | — |  |  | 1,769 |  |  | 1,769 |
Total Community Banking | 13 |  |  | — |  |  | 2,379 |  |  | 2,392 |  |  | 351,550 |  |  | 353,942 |  |  | — |  |  | 20,389 |  |  | 20,389 |
Total loans and leases held for investment | 24,876 |  |  | 7,762 |  |  | 18,411 |  |  | 51,049 |  |  | 3,388,515 |  |  | 3,439,564 |  |  | 3,224 |  |  | 39,096 |  |  | 42,320 |
Total loans and leases | $ | 25,041 |  |  | $ | 7,762 |  |  | $ | 18,411 |  |  | $ | 51,214 |  |  | $ | 3,522,009 |  |  | $ | 3,573,223 |  |  | $ | 3,224 |  |  | $ | 39,096 |  |  | $ | 42,320 |
| 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 |  | Non-accrual balance |  | Total
As of September 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
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
December 31, 2020 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior
National Lending |  |  |  |  |  |  |  |
Term lending | $ | 42 |  | $ | 4,051 |  | $ | 2,117 |  | $ | 3,051 |  | $ | 11 |  | $ | 4,469 |  | $ | — |  | $ | 13,741 |
Asset based lending | — |  | — |  | — |  | — |  | — |  | — |  | 917 |  | 917 |
Factoring | — |  | — |  | — |  | — |  | — |  | — |  | 842 |  | 842 |
Lease financing | — |  | 90 |  | 2,106 |  | 411 |  | — |  | — |  | — |  | 2,607 |
SBA/USDA | — |  | — |  | — |  | — |  | — |  | 600 |  | — |  | 600 |
Commercial finance | 42 |  | 4,141 |  | 4,223 |  | 3,462 |  | 11 |  | 5,069 |  | 1,759 |  | 18,707 |
Total National Lending | 42 |  | 4,141 |  | 4,223 |  | 3,462 |  | 11 |  | 5,069 |  | 1,759 |  | 18,707 |
Community Banking |  |  |  |  |  |  |  | — |
Commercial real estate and operating | — |  | 1,260 |  | — |  | 300 |  | 13,618 |  | 3,278 |  | — |  | 18,456 |
Consumer one-to-four family real estate and other | — |  | — |  | 41 |  | 9 |  | — |  | 114 |  | — |  | 163 |
Agricultural real estate and operating | — |  | — |  | — |  | 1,419 |  | — |  | — |  | 350 |  | 1,769 |
Total Community Banking | — |  | 1,260 |  | 41 |  | 1,727 |  | 13,618 |  | 3,392 |  | 350 |  | 20,388 |
Total nonaccrual loans and leases | $ | 42 |  | $ | 5,401 |  | $ | 4,264 |  | $ | 5,189 |  | $ | 13,629 |  | $ | 8,461 |  | $ | 2,109 |  | $ | 39,096 |
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
December 31, 2020 | 2021 | 2020 | 2019 | 2018 | 2017 | Prior
National Lending |  |  |  |  |  |  |  |
Term lending | $ | — |  | $ | — |  | $ | 131 |  | $ | 232 |  | $ | — |  | $ | 22 |  | $ | — |  | $ | 385 |
Lease financing | — |  | 543 |  | 311 |  | 184 |  | 3 |  | 1 |  | — |  | 1,042 |
Insurance premium finance | — |  | 641 |  | 24 |  | — |  | — |  | — |  | — |  | 665 |
Commercial finance | — |  | 1,184 |  | 466 |  | 416 |  | 3 |  | 23 |  | — |  | 2,092 |
Other consumer finance | — |  | — |  | — |  | — |  | — |  | 675 |  | — |  | 675 |
Consumer finance (1) | — |  | — |  | — |  | — |  | — |  | 675 |  | — |  | 675 |
Total National Lending | — |  | 1,184 |  | 466 |  | 416 |  | 3 |  | 698 |  | — |  | 2,767 |
Total 90 days or more delinquent and accruing | $ | — |  | $ | 1,184 |  | $ | 466 |  | $ | 416 |  | $ | 3 |  | $ | 698 |  | $ | — |  | $ | 2,767 |
(1) Consumer credit products are not included in the table as they are evaluated under a separate methodology for allowance for credit loss purposes that considers the overall Program structure. Refer to the Company’s most recent audited financial statements for additional information on these Programs. 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) 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 or lessee 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 or lease is evaluated for impairment. Often, this is associated with a delay or shortfall in scheduled payments, as described above. The following table provides the average recorded investment in non-accrual loans and leases:
| Three Months Ended December 31, 2020
(Dollars in Thousands) | Average Recorded Investment |  |
National Lending |  |  |
Term lending | $ | 14,876 |  |  |
Asset based lending | 1,074 |  |  |
Factoring | 935 |  |  |
Lease financing | 3,556 |  |  |
SBA/USDA | 600 |  |  |
Commercial finance | 21,041 |  |  |
Total National Lending | 21,041 |  |  |
Community Banking |  |  |
Commercial real estate and operating | 6,539 |  |  |
Consumer one-to-four family real estate and other | 125 |  |  |
Agricultural real estate and operating | 1,769 |  |  |
Total Community Banking | 8,433 |  |  |
Total loans and leases | $ | 29,474 |  |  |
The recognized interest income on the Company's nonaccrual loans and leases during the quarter ended December 31, 2020 was not significant. The following table provides the average recorded investment in impaired loans and leases:
| Three Months Ended December 31, 2019
(Dollars in Thousands) |  | Average Recorded Investment |  | Recognized Interest Income
National Lending |  |  |  |
Term lending |  | $ | 19,537 |  |  | $ | 74 |
Asset based lending |  | 427 |  |  | — |
Factoring |  | 3,849 |  |  | — |
Lease financing |  | 3,686 |  |  | — |
SBA/USDA |  | 3,788 |  |  | — |
Commercial finance |  | 31,287 |  |  | 74 |
Other consumer finance |  | 1,551 |  |  | 35 |
Consumer finance |  | 1,551 |  |  | 35 |
Total National Lending |  | 32,838 |  |  | 109 |
Community Banking |  |  |  |
Commercial real estate and operating |  | 446 |  |  | 13 |
Consumer one-to-four family real estate and other |  | 90 |  |  | 8 |
Agricultural real estate and operating |  | 2,921 |  |  | 42 |
Total Community Banking |  | 3,457 |  |  | 63 |
Total loans and leases |  | $ | 36,295 |  |  | $ | 172 |
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 $0.1 million of national lending loans that were modified in a TDR during the three months ended December 31, 2020, all of which were modified to extend the term of the loan, and no community banking loans. There were $0.6 million community banking loans and $0.4 million of national lending loans and leases that were modified in a TDR during the three months ended December 31, 2019. During the three months ended December 31, 2020, the Company had $0.4 million of national lending loans and no community banking loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the three months ended December 31, 2019, the Company had $1.2 million of community banking loans and $0.3 million national lending 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, 2020 and December 31, 2019.

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