XML 26 R14.htm IDEA: XBRL DOCUMENT

LOANS AND LEASES, NET

9 Months Ended

Jun. 30, 2021

Loans and Leases Receivable Disclosure [Abstract]

Loans and leases consist of the following:


(Dollars in Thousands)	June 30, 2021		September 30, 2020
National Lending
Term lending	$	920,279	$	805,323
Asset based lending	263,237		182,419
Factoring	320,629		281,173
Lease financing	282,940		281,084
Insurance premium finance	417,652		337,940
SBA/USDA	263,709		318,387
Other commercial finance	118,081		101,658
Commercial finance	2,586,527		2,307,984
Consumer credit products	105,440		89,809
Other consumer finance	122,316		134,342
Consumer finance	227,756		224,151
Tax services	41,268		3,066
Warehouse finance	335,704		293,375
Total National Lending	3,191,255		2,828,576
Community Banking
Commercial real estate and operating	294,810		457,371
Consumer one-to-four family real estate and other	1,349		16,486
Agricultural real estate and operating	7,825		11,707
Total Community Banking	303,984		485,564
Total loans and leases	3,495,239		3,314,140
Net deferred loan origination costs (fees)	1,431		8,625
Total gross loans and leases	3,496,670		3,322,765
Allowance for credit losses	(91,208)		(56,188)
Total loans and leases, net	$	3,405,462	$	3,266,577

During the nine months ended June 30, 2021, the Company transferred $118.0 million of Community Banking loans to held for sale. During the nine months ended June 30, 2020, the Company transferred $325.1 million of Community Banking loans to held for sale.

During the nine months ended June 30, 2021 and 2020, the Company originated $472.9 million of other consumer finance, SBA/USDA, and consumer credit product loans as held for sale and $63.4 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 $694.1 million and gains on sale of $9.8 million during the nine months ended June 30, 2021. The Company sold held for sale loans resulting in proceeds of $440.5 million and gains on sale of $7.0 million during the nine months ended June 30, 2020.

Loans purchased and sold by portfolio segment, including participation interests, for the three and nine months ended were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2021		2020		2021		2020
Loans Purchased



Loans held for investment:
Total National Lending	$	46,153	$	—	$	142,389	$	103,888
Total Community Banking	403		2,728		3,250		16,518
Total purchases	$	46,556	$	2,728	$	145,639	$	120,406
Loans Sold
Loans held for sale:
Total National Lending	$	118,132	$	8,524	$	464,378	$	168,814
Total Community Banking	—		—		232,979		271,681
Loans held for investment:

Total Community Banking	1,816		—		13,822		3,099
Total sales	$	119,948	$	8,524	$	711,179	$	443,594

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


(Dollars in Thousands)	June 30, 2021		September 30, 2020
Carrying amount	$	297,370	$	299,487
Unguaranteed residual assets	14,770		17,203
Unamortized initial direct costs	520		2,078
Unearned income	(29,200)		(35,606)
Total net investment in direct financing and sales-type leases	$	283,460	$	283,162

The carrying amount of direct financing and sales-type leases subject to residual value guarantees was $5.0 million at June 30, 2021.

The components of total lease income were as follows:


	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2021		2020		2021		2020
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	6,344	$	4,496	$	17,779	$	12,958

Leasing and equipment finance noninterest income
Lease income from operating lease payments	10,047		11,391		29,824		33,857
Profit (loss) recorded on commencement date on sales-type leases	85		103		215		590
Other(1)	901		554		2,657		3,135
Total leasing and equipment finance noninterest income	11,033		12,048		32,696		37,582
Total lease income	$	17,377	$	16,544	$	50,475	$	50,540

(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)	June 30, 2021
Remaining in 2021	$	28,766
2022	108,161
2023	80,606
2024	48,993
2025	22,798
Thereafter	8,046
Equipment under leases not yet commenced	—
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	297,370
Third-party residual value guarantees	—
Total carrying amount of direct financing and sales-type lease	$	297,370

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 2021.

The COVID-19 pandemic began impacting the U.S. and global economies in the first calendar quarter of 2020, with significant deterioration of macroeconomic conditions and markets into 2021. Although macroeconomic conditions and markets have improved since the beginning of 2021, the ultimate impact of this pandemic on the Company's loan and lease portfolio is difficult to predict. Management continues to evaluate the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses and the impact to our customers and businesses as a result of 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 subsequent related ASUs on a modified retrospective basis. Financial information at and for the quarter ended June 30, 2021 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 was as follows:


	Three Months Ended June 30, 2021
(Dollars in Thousands)	Beginning Balance		Provision (Recovery) for Credit Losses(2)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
National Lending
Term lending	$	27,315	$	1,199	$	(1,998)	$	515	$	27,031
Asset based lending	1,749		21		—		212		1,982
Factoring	3,210		33		1		17		3,261
Lease financing	6,863		842		(916)		130		6,919
Insurance premium finance	1,326		(1,200)		(120)		1,583		1,589
SBA/USDA	3,300		(171)		—		—		3,129
Other commercial finance	541		183		—		—		724
Commercial finance	44,304		907		(3,033)		2,457		44,635
Consumer credit products	990		21		—		—		1,011
Other consumer finance	10,093		(180)		(2,327)		57		7,643
Consumer finance	11,083		(159)		(2,327)		57		8,654
Tax services	29,146		4,685		(9,505)		17		24,343
Warehouse finance	332		—		—		—		332
Total National Lending	84,865		5,433		(14,865)		2,531		77,964
Community Banking
Commercial real estate and operating	13,965		(767)		—		—		13,198
Consumer one-to-four family real estate and other	17		(13)		—		—		4
Agricultural real estate and operating	45		(3)		—		—		42
Total Community Banking	14,027		(783)		—		—		13,244
Total loans and leases	98,892		4,650		(14,865)		2,531		91,208
Unfunded commitments(1)	779		(38)		—		—		741
Total	$	99,671	$	4,612	$	(14,865)	$	2,531	$	91,949

(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements 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.


	Nine Months Ended June 30, 2021
(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	$	8,621	$	(7,787)	$	987	$	27,031
Asset based lending	1,406		164		1,399		(1,199)		212		1,982
Factoring	3,027		987		(1,928)		—		1,175		3,261
Lease financing	7,023		(556)		2,375		(2,264)		341		6,919
Insurance premium finance	2,129		(965)		(609)		(925)		1,959		1,589
SBA/USDA	940		2,720		(532)		—		1		3,129
Other commercial finance	182		364		178		—		—		724
Commercial finance	29,918		12,713		9,504		(12,175)		4,675		44,635
Consumer credit products	845		—		166		—		—		1,011
Other consumer finance	2,821		5,998		1,568		(2,964)		220		7,643
Consumer finance	3,666		5,998		1,734		(2,964)		220		8,654
Tax services	2		—		32,819		(9,505)		1,027		24,343
Warehouse finance	294		(1)		39		—		—		332
Total National Lending	33,880		18,710		44,096		(24,644)		5,922		77,964
Community Banking
Commercial real estate and operating	21,867		(5,616)		(2,909)		(144)		—		13,198
Consumer one-to-four family real estate and other	298		(247)		(47)		—		—		4
Agricultural real estate and operating	143		(74)		(27)		—		—		42
Total Community Banking	22,308		(5,937)		(2,983)		(144)		—		13,244
Total loans and leases	56,188		12,773		41,113		(24,788)		5,922		91,208
Unfunded commitments(1)	32		831		(122)		—		—		741
Total	$	56,220	$	13,604	$	40,991	$	(24,788)	$	5,922	$	91,949

(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.


	Three Months Ended June 30, 2020
(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	$	11,647	$	5,672	$	(2,831)	$	25	$	14,513
Asset based lending	2,826		(953)		(42)		—		1,831
Factoring	4,444		(1,997)		(140)		362		2,669
Lease financing	2,683		4,293		(357)		91		6,710
Insurance premium finance	2,142		596		(736)		367		2,369
SBA/USDA	1,558		716		(1,134)		—		1,140
Other commercial finance	552		(381)		—		—		171
Commercial finance	25,852		7,946		(5,240)		845		29,403
Consumer credit products	1,082		(111)		—		—		971
Other consumer finance	3,414		358		(567)		44		3,249
Consumer finance	4,496		247		(567)		44		4,220
Tax services	21,320		(100)		(9,797)		14		11,437
Warehouse finance	334		(56)		—		—		278
Total National Lending	52,002		8,037		(15,604)		903		45,338
Community Banking
Commercial real estate and operating	10,069		6,688		—		—		16,757
Consumer one-to-four family real estate and other	2,350		586		—		—		2,936
Agricultural real estate and operating	934		(218)		—		—		716
Total Community Banking	13,353		7,056		—		—		20,409
Total	$	65,355	$	15,093	$	(15,604)	$	903	$	65,747


	Nine Months Ended June 30, 2020
(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	$	14,753	$	(6,003)	$	230	$	14,513
Asset based lending	2,437		(611)		(42)		47		1,831
Factoring	3,261		(509)		(875)		792		2,669
Lease financing	1,275		5,841		(725)		319		6,710
Insurance premium finance	1,024		2,671		(1,809)		483		2,369
SBA/USDA	383		2,007		(1,250)		—		1,140
Other commercial finance	683		(512)		—		—		171
Commercial finance	14,596		23,640		(10,704)		1,871		29,403
Consumer credit products	1,044		(73)		—		—		971
Other consumer finance	5,118		(474)		(2,208)		813		3,249
Consumer finance	6,162		(547)		(2,208)		813		4,220
Tax services	—		20,407		(9,797)		827		11,437
Warehouse finance	263		15		—		—		278
Total National Lending	21,021		43,515		(22,709)		3,511		45,338
Community Banking
Commercial real estate and operating	6,208		10,549		—		—		16,757
Consumer one-to-four family real estate and other	1,053		1,883		—		—		2,936
Agricultural real estate and operating	867		(151)		—		—		716
Total Community Banking	8,128		12,281		—		—		20,409
Total	$	29,149	$	55,796	$	(22,709)	$	3,511	$	65,747

The following table 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 was as follows:


(Dollars in Thousands)	June 30, 2021
National Lending
Term lending	$	25,994
Asset based lending	—
Factoring	1,232
Lease financing	2,946

SBA/USDA	600

Commercial finance	30,772
Consumer credit products	2,197

Consumer finance	2,197


Total National Lending	32,969
Community Banking
Commercial real estate and operating	17,896
Consumer one-to-four family real estate and other	110
Agricultural real estate and operating	4,657
Total Community Banking	22,663
Total	$	55,632

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 forbearances, 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 June 30, 2021, $41.5 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. Other than the loan modifications that are on nonaccrual status, the Company is accruing and recognizing interest income on these modifications during the payment deferral period. The Company continues to regularly assess the collectability of the income on these active deferral relationships and considers adjustments to the accruing status on an individual case basis.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the allowable Allowance for Credit Losses.

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 $227.8 million and $41.3 million at June 30, 2021, 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 June 30, 2021	2021		2020		2019		2018		2017		Prior
Term lending
Pass	$	310,845	$	333,608	$	119,271	$	62,381	$	4,217	$	5,433	$	—	$	835,755
Watch	6,568		9,609		5,821		450		43		1,397		—		23,888
Special Mention	595		3,934		6,579		1,026		35		1,241		—		13,410
Substandard	7,732		8,347		19,708		4,347		162		359		—		40,655
Doubtful	71		1,207		4,982		311		—		—		—		6,571
Total	325,811		356,705		156,361		68,515		4,457		8,430		—		920,279
Asset based lending
Pass	—		—		—		—		—		—		162,787		162,787
Watch	—		—		—		—		—		—		66,290		66,290
Special Mention	—		—		—		—		—		—		19,253		19,253
Substandard	—		—		—		—		—		—		14,907		14,907

Total	—		—		—		—		—		—		263,237		263,237
Factoring
Pass	—		—		—		—		—		—		278,665		278,665
Watch	—		—		—		—		—		—		19,261		19,261
Special Mention	—		—		—		—		—		—		11,853		11,853
Substandard	—		—		—		—		—		—		10,850		10,850

Total	—		—		—		—		—		—		320,629		320,629
Lease financing
Pass	87,134		118,080		38,073		10,010		4,766		687		—		258,750
Watch	4,574		10,358		490		349		253		197		—		16,221
Special Mention	1,119		558		114		206		39		—		—		2,036
Substandard	—		571		3,961		844		36		156		—		5,568
Doubtful	—		133		167		65						—		365
Total	92,827		129,700		42,805		11,474		5,094		1,040		—		282,940
Insurance premium finance
Pass	411,729		5,080		14		—		—		—		—		416,823
Watch	421		34		—		—		—		—		—		455
Special Mention	72		11		—		—		—		—		—		83
Substandard	16		45		—		—		—		—		—		61
Doubtful	187		43		—		—		—		—		—		230
Total	412,425		5,213		14		—		—		—		—		417,652
SBA/USDA
Pass	108,286		80,971		23,094		22,268		8,066		4,222		—		246,907
Watch			—		926		822		2,272		935		—		4,955
Special Mention			6,755		675		1,803		—		—		—		9,233
Substandard							1,196		695		723		—		2,614

Total	108,286		87,726		24,695		26,089		11,033		5,880		—		263,709
Other commercial finance
Pass	19,070		17,525		9,387		6,277		3,579		59,273		—		115,111


Watch	556		—		—		—		847		1,292		—		2,695

Substandard	—		—		—		275		—		—		—		275

Total	19,626		17,525		9,387		6,552		4,426		60,565		—		118,081
Warehouse finance
Pass	—		—		—		—		—		—		335,704		335,704




Total	—		—		—		—		—		—		335,704		335,704
Total National Lending
Pass	937,063		555,264		189,839		100,936		20,628		69,614		777,156		2,650,500
Watch	12,120		20,001		7,237		1,621		3,415		3,820		85,551		133,765
Special Mention	1,786		11,258		7,368		3,035		76		1,241		31,106		55,870
Substandard	7,748		8,963		23,669		6,662		893		1,238		25,757		74,930
Doubtful	258		1,383		5,149		376		—		—		—		7,166
Total	958,975		596,869		233,262		112,630		25,012		75,913		919,570		2,922,231
Commercial real estate and operating
Pass	—		13,841		85,971		63,844		27,728		528		—		191,912
Watch	—		924		3,128		10,952		15,834		2,656		—		33,494
Special Mention	—		—		224		13,681		—		669		—		14,574
Substandard	—		300		1,497		44,948		4,472		3,613		—		54,830

Total	—		15,065		90,820		133,425		48,034		7,466		—		294,810
Consumer 1-4 family real estate and other
Pass	—		—		157		234		368		355		—		1,114


Substandard	—		—		108		—		—		127		—		235

Total	—		—		265		234		368		482		—		1,349
Agricultural real estate and other
Pass	—		—		—		108		—		2,586		—		2,694


Substandard	—		3,277		—		1,263		—		591		—		5,131

Total	—		3,277		—		1,371		—		3,177		—		7,825
Total Community Bank
Pass	—		13,841		86,128		64,185		28,097		3,469		—		195,720
Watch	—		924		3,128		10,952		15,834		2,656		—		33,494
Special Mention	—		—		224		13,681		—		669		—		14,574
Substandard	—		3,577		1,605		46,212		4,471		4,331		—		60,196

Total	—		18,342		91,085		135,030		48,402		11,125		—		303,984
Total Loans and Leases
Pass	937,063		569,104		275,967		165,121		48,725		73,084		777,156		2,846,220
Watch	12,120		20,925		10,365		12,573		19,249		6,476		85,551		167,259
Special Mention	1,786		11,258		7,592		16,717		76		1,909		31,106		70,444
Substandard	7,748		12,541		25,274		52,873		5,364		5,569		25,757		135,126
Doubtful	258		1,383		5,149		376		—		—		—		7,166
Total	$	958,975	$	615,211	$	324,347	$	247,660	$	73,414	$	87,038	$	919,570	$	3,226,215

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 June 30, 2021
Loans held for sale	$	—	$	—	$	—	$	—	$	87,905	$	87,905	$	—	$	—	$	—

National Lending
Term lending	11,146		6,714		4,820		22,680		897,599		920,279		2,073		14,470		16,543
Asset based lending	—		—		—		—		263,237		263,237		—		—		—
Factoring	—		—		—		—		320,629		320,629		—		37		37
Lease financing	9,076		3,514		2,550		15,140		267,800		282,940		1,403		2,208		3,611
Insurance premium finance	552		422		874		1,848		415,804		417,652		874		—		874
SBA/USDA	1,343		—		600		1,943		261,766		263,709		—		600		600
Other commercial finance	—		—		—		—		118,081		118,081		—		—		—
Commercial finance	22,117		10,650		8,844		41,611		2,544,916		2,586,527		4,350		17,315		21,665
Consumer credit products	843		1,009		525		2,377		204,642		207,019		469		—		469
Other consumer finance	—		—		—		—		20,737		20,737		—		—		—
Consumer finance	843		1,009		525		2,377		225,379		227,756		469		—		469
Tax services	—		40,958		—		40,958		310		41,268		—		—		—
Warehouse finance	—		—		—		—		335,704		335,704		—		—		—
Total National Lending	22,960		52,617		9,369		84,946		3,106,309		3,191,255		4,819		17,315		22,134
Community Banking
Commercial real estate and operating	11		—		—		11		294,799		294,810		—		17,896		17,896
Consumer one-to-four family real estate and other	51		—		—		51		1,298		1,349		—		108		108
Agricultural real estate and operating	—		—		1,769		1,769		6,056		7,825		—		1,769		1,769
Total Community Banking	62		—		1,769		1,831		302,153		303,984		—		19,773		19,773
Total loans and leases held for investment	23,022		52,617		11,138		86,777		3,408,462		3,495,239		4,819		37,088		41,907

Total loans and leases	$	23,022	$	52,617	$	11,138	$	86,777	$	3,496,367	$	3,583,144	$	4,819	$	37,088	$	41,907


	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		Nonaccrual With No ACL
June 30, 2021	2021		2020		2019		2018		2017		Prior
National Lending
Term lending	$	20	$	2,506	$	6,862	$	2,865	$	147	$	2,070	$	—	$	14,470	$	7,558
Asset based lending	—		—		—		—		—		—		—		—		—
Factoring	—		—		13		—		—		24		—		37		37
Lease financing			248		1,519		276		9		156		—		2,208		824

SBA/USDA									600		—		—		600		600

Commercial finance	20		2,754		8,394		3,141		756		2,250		—		17,315		9,019





Total National Lending	20		2,754		8,394		3,141		756		2,250		—		17,315		9,019
Community Banking
Commercial real estate and operating	—		300		700		16,896		—		—		—		17,896		—
Consumer one-to-four family real estate and other	—		—		108		—		—		—		—		108		108
Agricultural real estate and operating	—		—		—		1,263		—		506		—		1,769		1,769
Total Community Banking	—		300		808		18,159		—		506		—		19,773		1,877
Total nonaccrual loans and leases	$	20	$	3,054	$	9,202	$	21,300	$	756	$	2,756	$	—	$	37,088	$	10,896

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
June 30, 2021	2021		2020		2019		2018		2017		Prior
National Lending
Term lending	$	1,142	$	685	$	36	$	196	$	14	$	—	$	—	$	2,073


Lease financing	356		426		223		372		26		—		—		1,403
Insurance premium finance	769		105		—		—		—		—		—		874


Commercial finance	2,267		1,216		259		568		40		—		—		4,350

Other consumer finance	—		—		—		—		—		383		—		383
Consumer finance (1)	—		—		—		—		—		383		—		383


Total National Lending	2,267		1,216		259		568		40		383		—		4,733





Total 90 days or more delinquent and accruing	$	2,267	$	1,216	$	259	$	568	$	40	$	383	$	—	$	4,733

(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:


	Average Recorded Investment
(Dollars in Thousands)	Three Months Ended June 30, 2021		Nine Months Ended June 30, 2021
National Lending
Term lending	$	14,964	$	14,190
Asset based lending	127		591
Factoring	33		337
Lease financing	2,435		2,994

SBA/USDA	600		600

Commercial finance	18,159		18,712





Total National Lending	18,159		18,712
Community Banking
Commercial real estate and operating	17,896		14,235
Consumer one-to-four family real estate and other	136		140
Agricultural real estate and operating	1,769		1,769
Total Community Banking	19,801		16,144
Total loans and leases	$	37,960	$	34,856

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2021 was not significant.

The following table provides the average recorded investment in impaired loans and leases:


	Three Months Ended June 30, 2020				Nine Months Ended June 30, 2020
(Dollars in Thousands)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
National Lending
Term lending	$	28,848	$	121	$	24,946	$	240
Asset based lending	935		—		571		—
Factoring	4,715		—		4,387		—
Lease financing	2,946		2		2,929		14

SBA/USDA	3,162		—		3,530		—

Commercial finance	40,606		123		36,363		254

Other consumer finance	1,999		37		1,775		111
Consumer finance	1,999		37		1,775		111


Total National Lending	42,605		160		38,138		365
Community Banking
Commercial real estate and operating	405		1		511		27
Consumer one-to-four family real estate and other	131		—		101		9
Agricultural real estate and operating	2,437		10		2,677		(134)
Total Community Banking	2,973		11		3,289		(98)
Total loans and leases	$	45,578	$	171	$	41,427	$	267

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 $3.9 million of national lending loans that were modified in a TDR during the three months ended June 30, 2021, all of which were modified to extend the term of the loan, and no community banking loans. There were $1.4 million of national lending loans and leases that were modified in a TDR during the three months ended June 30, 2020 and no community banking loans.

During the nine months ended June 30, 2021, there were $6.0 million of national lending loans that were modified in a TDR, all of which were modified to extend the term of the loan, and no community bank loans. There were $5.5 million of national lending loans and leases and $0.6 million of community banking loans that were modified in a TDR during the nine months ended June 30, 2020.

During the nine months ended June 30, 2021, the Company had $0.6 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 nine months ended June 30, 2020, the Company had $3.3 million of community banking loans and $1.3 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 credit losses were insignificant during the quarters ended June 30, 2021 and June 30, 2020.