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LOANS AND LEASES, NET
 9 Months Ended
Jun. 30, 2023
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES, NET LOANS AND LEASES, NET
Loans and leases consist of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Term lending$1,253,841 $1,090,289 
Asset based lending373,160 351,696 
Factoring351,133 372,595 
Lease financing201,996 210,692 
Insurance premium finance666,265 479,754 
SBA/USDA422,389 359,238 
Other commercial finance171,954 159,409 
Commercial finance3,440,738 3,023,673 
Consumer credit products175,158 144,353 
Other consumer finance24,963 25,306 
Consumer finance200,121 169,659 
Tax services47,194 9,098 
Warehouse finance380,458 326,850 
Total loans and leases4,068,511 3,529,280 
Net deferred loan origination costs4,388 7,025 
Total gross loans and leases4,072,899 3,536,305 
Allowance for credit losses(81,916)(45,947)
Total loans and leases, net$3,990,983 $3,490,358 

During the nine months ended June 30, 2023 and 2022, the Company originated $941.5 million and $769.7 million of consumer finance and SBA/USDA as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $870.1 million and gain on sale of $0.2 million during the nine months ended June 30, 2023. The Company sold held for sale loans resulting in proceeds of $898.4 million and loss on sale of $3.9 million during the nine months ended June 30, 2022.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Loans Purchased
Loans held for investment:
Commercial finance$— $— $— $3,098 
Warehouse finance9,715 19,657 197,549 105,472 
Total purchases$9,715 $19,657 $197,549 $108,570 
Loans Sold
Loans held for sale:
Commercial finance$11,114 $1,216 $12,263 $48,329 
Consumer finance254,655 173,284 857,869 696,891 
Community banking— — — 153,222 
Loans held for investment:
Commercial finance— — — 15,549 
Community banking— — — 30,235 
Total sales$265,769 $174,500 $870,132 $944,226 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Carrying amount$212,275 $216,880 
Unguaranteed residual assets13,152 13,037 
Unamortized initial direct costs160 295 
Unearned income(23,431)(19,225)
Total net investment in direct financing and sales-type leases$202,156 $210,987 

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$23,963 
202476,232 
202546,603 
202624,781 
202715,865 
Thereafter24,831 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases212,275 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$212,275 

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 2023.
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, other factors have been affecting the economic environment in 2022 and 2023 including geopolitical conflict, supply chain disruptions, inflation, rising interest rates, and bank failures brought on by, among other things, rising interest rates, deposit outflows and liquidity crises. While the ultimate impact of the pandemic and these other factors on the Company's loan and lease portfolio remains 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 other factors impacting the economy and will refine its estimate as developments occur and more information becomes available.
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
Three Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$28,415 $250 $(2,852)$825 $26,638 
Asset based lending1,081 68 — 154 1,303 
Factoring5,588 493 (140)1 5,942 
Lease financing4,549 (355)(302)(26)3,866 
Insurance premium finance1,263 1,094 (443)158 2,072 
SBA/USDA2,640 24 — — 2,664 
Other commercial finance4,332 (253)— — 4,079 
Commercial finance47,868 1,321 (3,737)1,112 46,564 
Consumer credit products1,219 522 — — 1,741 
Other consumer finance1,746 216 (1,860)— 102 
Consumer finance2,965 738 (1,860)— 1,843 
Tax services33,094 (229)(404)671 33,132 
Warehouse finance377 — — — 377 
Total loans and leases84,304 1,830 (6,001)1,783 81,916 
Unfunded commitments(1)
356 (57)— — 299 
Total $84,660 $1,773 $(6,001)$1,783 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$27,568 $9 $(3,086)$1,316 $25,807 
Asset based lending2,583 (1,553)— 295 1,325 
Factoring6,526 533 (194)268 7,133 
Lease financing6,471 (429)— 107 6,149 
Insurance premium finance1,057 583 (230)41 1,451 
SBA/USDA2,943 338 (408)25 2,898 
Other commercial finance1,197 (79)— — 1,118 
Commercial finance48,345 (598)(3,918)2,052 45,881 
Consumer credit products1,621 (170)— — 1,451 
Other consumer finance7,388 (205)(2,428)88 4,843 
Consumer finance9,009 (375)(2,428)88 6,294 
Tax services30,757 (166)(7,998)6 22,599 
Warehouse finance441 (9)— — 432 
Total loans and leases88,552 (1,148)(14,344)2,146 75,206 
Unfunded commitments(1)
551 (154)— — 397 
Total $89,103 $(1,302)$(14,344)$2,146 $75,603 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $7,895 $(7,374)$1,496 $26,638 
Asset based lending1,050 2,972 (2,873)154 1,303 
Factoring6,556 (311)(323)20 5,942 
Lease financing5,902 (976)(1,315)255 3,866 
Insurance premium finance1,450 1,202 (852)272 2,072 
SBA/USDA3,263 (625)— 26 2,664 
Other commercial finance1,310 2,769 — — 4,079 
Commercial finance44,152 12,926 (12,737)2,223 46,564 
Consumer credit products1,400 341 — — 1,741 
Other consumer finance63 2,232 (2,193)— 102 
Consumer finance1,463 2,573 (2,193)— 1,843 
Tax services5 32,830 (2,135)2,432 33,132 
Warehouse finance327 50 — — 377 
Total loans and leases45,947 48,379 (17,065)4,655 81,916 
Unfunded commitments(1)
366 (67)— — 299 
Total $46,312 $48,312 $(17,065)$4,655 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $1,104 $(6,993)$2,345 $25,807 
Asset based lending1,726 (817)(16)432 1,325 
Factoring3,997 13,857 (11,057)336 7,133 
Lease financing7,629 (1,647)(112)279 6,149 
Insurance premium finance1,394 374 (514)197 1,451 
SBA/USDA2,978 517 (624)27 2,898 
Other commercial finance1,168 (50)— — 1,118 
Commercial finance48,243 13,338 (19,316)3,616 45,881 
Consumer credit products1,242 209 — — 1,451 
Other consumer finance6,112 2,513 (4,049)267 4,843 
Consumer finance7,354 2,722 (4,049)267 6,294 
Tax services2 28,093 (8,253)2,757 22,599 
Warehouse finance420 12 — — 432 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 31,479 (31,618)7,064 75,206 
Unfunded commitments(1)
690 (293)— — 397 
Total $68,971 $31,186 $(31,618)$7,064 $75,603 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Information on loans and leases that are deemed to be collateral dependent and are evaluated individually for the ACL was as follows:
(Dollars in thousands)At June 30, 2023At September 30, 2022
Term lending$4,767 $2,885 
Asset based lending14,414 — 
Factoring— 550 
Lease financing591 2,787 
SBA/USDA750 1,199 
Commercial finance(1)
20,522 7,421 
Total$20,522 $7,421 
(1) For Commercial Finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets.

Management has identified certain structured finance credits for alternative energy projects in which a substantial cash collateral account has been established to mitigate credit risk. Due to the nature of the transactions and significant cash collateral positions, these credits are evaluated individually. The balance of these pass rated cash collateral loans totaled $68.2 million and $120.7 million at June 30, 2023 and at September 30, 2022, respectively.

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 OCC, to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows:

Pass - A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.
 
Watch - A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets.

Special Mention - 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.
 
The adverse classifications are as follows:
 
Substandard - A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful - A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate.

Loss - A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.
Loans and leases, or portions thereof, are generally charged off when collection of principal becomes doubtful. Typically, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 120 days or more for consumer credit products and leases, and 90 days or more for commercial finance loans. Action is taken to charge off electronic return originator ("ERO") loans if such loans have not been collected by the end of June and refund advance loans if such loans have not been collected by the end of the calendar year. Nonaccrual loans and troubled debt restructurings are generally individually evaluated for expected credit losses.

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.

The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in its evaluation of the appropriateness of the ACL 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 $200.1 million and $47.2 million at June 30, 2023, respectively, and $169.7 million and $9.1 million at September 30, 2022, 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 YearRevolving Loans and LeasesTotal
At June 30, 202320232022202120202019Prior
Term lending
Pass$313,587 $201,918 $119,763 $82,834 $18,380 $203,059 $— $939,541 
Watch47,005 50,336 61,125 11,832 6,964 14,399 — 191,661 
Special mention1,174 12,080 11,369 1,383 1,106 1,753 — 28,865 
Substandard2,715 34,238 19,320 25,326 4,485 2,135 — 88,219 
Doubtful103 1,934 1,110 931 235 1,242 — 5,555 
Total364,584 300,506 212,687 122,306 31,170 222,588 — 1,253,841 
Asset based lending
Pass— — — — — — 163,401 163,401 
Watch— — — — — — 163,215 163,215 
Special mention— — — — — — 23,264 23,264 
Substandard— — — — — — 15,748 15,748 
Doubtful— — — — — — 7,532 7,532 
Total— — — — — — 373,160 373,160 
Factoring
Pass— — — — — — 257,636 257,636 
Watch— — — — — — 71,351 71,351 
Special mention— — — — — — 11,875 11,875 
Substandard— — — — — — 10,271 10,271 
Total— — — — — — 351,133 351,133 
Lease financing
Pass8,249 18,748 21,365 34,127 2,091 50,807 — 135,387 
Watch190 10,301 11,617 3,370 2,222 477 — 28,177 
Special mention— — 1,374 602 281 — — 2,257 
Substandard— 8,185 8,168 3,960 6,269 9,278 — 35,860 
Doubtful— — 81 100 — 134 — 315 
Total8,439 37,234 42,605 42,159 10,863 60,696 — 201,996 
Insurance premium finance
Pass655,755 8,822 9 — — — — 664,586 
Watch374 239 — — — — — 613 
Special mention115 74 — — — — — 189 
Substandard55 429 — — — — — 484 
Doubtful80 313 — — — — — 393 
Total656,379 9,877 9 — — — — 666,265 
SBA/USDA
Pass91,797 198,975 28,116 45,070 9,288 18,745 — 391,991 
Watch— — 326 53 358 2,391 — 3,128 
Special mention— — — — — — — — 
Substandard252 1,680 1,156 7,185 8,303 8,694 — 27,270 
Total92,049 200,655 29,598 52,308 17,949 29,830 — 422,389 
Other commercial finance
Pass3,425 18,899 32,908 1,094 10,212 73,785 — 140,323 
Watch1,740 — — — — — — 1,740 
Special mention— — 18,000 — — — — 18,000 
Substandard2,789 464 8,379 — — 259 — 11,891 
Total7,954 19,363 59,287 1,094 10,212 74,044 — 171,954 
Warehouse finance
Pass— — — — — — 380,458 380,458 
Total— — — — — — 380,458 380,458 
Total loans and leases
Pass1,072,813 447,362 202,161 163,125 39,971 346,396 801,495 3,073,323 
Watch49,309 60,876 73,068 15,255 9,544 17,267 234,566 459,885 
Special mention1,289 12,154 30,743 1,985 1,387 1,753 35,139 84,450 
Substandard5,811 44,996 37,023 36,471 19,057 20,366 26,019 189,743 
Doubtful183 2,247 1,191 1,031 235 1,376 7,532 13,795 
Total$1,129,405 $567,635 $344,186 $217,867 $70,194 $387,158 $1,104,751 $3,821,196 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 99,114 121,429 73,717 — 1,090,289 
Asset based lending
Pass— — — — — — 154,494 154,494 
Watch— — — — — — 162,990 162,990 
Special mention— — — — — — 13,770 13,770 
Substandard— — — — — — 20,442 20,442 
Total— — — — — — 351,696 351,696 
Factoring
Pass— — — — — — 254,883 254,883 
Watch— — — — — — 86,219 86,219 
Special mention— — — — — — 9,174 9,174 
Substandard— — — — — — 22,319 22,319 
Total— — — — — — 372,595 372,595 
Lease financing
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 40,474 56,538 28,874 24,305 — 316,610 
Watch— 13,836 1,266 702 — 710 — 16,514 
Special mention— 211 — 869 — — — 1,080 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 23,145 26,040 20,458 23,098 60,782 — 159,409 
Warehouse finance
Pass— — — — — — 294,350 294,350 
Special mention— — — — — — 32,500 32,500 
Total— — — — — — 326,850 326,850 
Total loans and leases
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 584 1,749 960 204 192 — 4,022 
Total$873,673 $538,519 $306,740 $218,730 $193,876 $167,844 $1,051,141 $3,350,523 

Past due loans and leases were as follows:
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At June 30, 202330-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$10 $— $— $10 $87,341 $87,351 $— $— $— 
Term lending30,464 3,423 8,074 41,961 1,211,880 1,253,841 1,862 13,207 15,069 
Asset based lending— — 218 218 372,942 373,160 218 14,407 14,625 
Factoring— — — — 351,133 351,133 — 364 364 
Lease financing2,945 729 1,940 5,614 196,382 201,996 1,627 1,494 3,121 
Insurance premium finance1,884 874 2,394 5,152 661,113 666,265 2,394 — 2,394 
SBA/USDA51 908 1,002 1,961 420,428 422,389 349 698 1,047 
Other commercial finance— — 92 92 171,862 171,954 92 — 92 
Commercial finance35,344 5,934 13,720 54,998 3,385,740 3,440,738 6,542 30,170 36,712 
Consumer credit products2,512 2,030 2,058 6,600 168,558 175,158 2,058 — 2,058 
Other consumer finance26 20 29 75 24,888 24,963 29 — 29 
Consumer finance2,538 2,050 2,087 6,675 193,446 200,121 2,087 — 2,087 
Tax services— 47,194 — 47,194 — 47,194 — — — 
Warehouse finance— — — — 380,458 380,458 — — — 
Total loans and leases held for investment37,882 55,178 15,807 108,867 3,959,644 4,068,511 8,629 30,170 38,799 
Total loans and leases$37,892 $55,178 $15,807 $108,877 $4,046,985 $4,155,862 $8,629 $30,170 $38,799 
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At September 30, 202230-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 2,576 4,458 21,100 1,069,189 1,090,289 2,035 7,576 9,611 
Asset based lending— — 68 68 351,628 351,696 39 29 68 
Factoring— — — — 372,595 372,595 — 569 569 
Lease financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 1,379 1,628 5,557 474,197 479,754 1,628 — 1,628 
SBA/USDA— — — — 359,238 359,238 — 1,451 1,451 
Other commercial finance— — — — 159,409 159,409 — — — 
Commercial finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
Consumer finance3,322 2,609 2,793 8,724 160,935 169,659 2,793 — 2,793 
Tax services— — 8,873 8,873 225 9,098 8,873 — 8,873 
Warehouse finance— — — — 326,850 326,850 — — — 
Total loans and leases held for investment28,203 8,817 19,534 56,554 3,472,726 3,529,280 15,808 13,375 29,183 
Total loans and leases$28,203 $8,817 $19,534 $56,554 $3,493,797 $3,550,351 $15,808 $13,375 $29,183 

Nonaccrual loans and leases by year of origination were as follows:
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At June 30, 202320232022202120202019Prior
Term lending$103 $3,819 $2,245 $2,017 $3,380 $1,643 $— $13,207 $— 
Asset based lending— — — — — — 14,407 14,407 14,407 
Factoring— — — — — — 364 364 — 
Lease financing— 269 596 — — 629 — 1,494 591 
SBA/USDA— 401 12 32 — 253 — 698 401 
Commercial finance103 4,489 2,853 2,049 3,380 2,525 14,771 30,170 15,399 
Total nonaccrual loans and leases$103 $4,489 $2,853 $2,049 $3,380 $2,525 $14,771 $30,170 $15,399 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202220222021202020192018Prior
Term lending$251 $1,110 $1,964 $989 $3,096 $166 $— $7,576 $2,885 
Asset based lending— — — — — — 29 29 — 
Factoring— — — — — — 569 569 550 
Lease financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 1,420 5,605 1,002 3,104 418 598 13,375 4,634 
Total nonaccrual loans and leases$1,228 $1,420 $5,605 $1,002 $3,104 $418 $598 $13,375 $4,634 
Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows:
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At June 30, 202320232022202120202019Prior
Term lending$128 $917 $658 $107 $52 $— $— $1,862 
Asset based lending— — — — — — 218 218 
Lease financing— 479 969 152 20 7 — 1,627 
Insurance premium finance1,149 1,241 4 — — — — 2,394 
SBA/USDA— 349 — — — — — 349 
Other commercial finance— — — — — 92 — 92 
Commercial finance1,277 2,986 1,631 259 72 99 218 6,542 
Consumer credit products335 1,239 415 50 19 — — 2,058 
Other consumer finance— — — — — — 29 29 
Consumer finance335 1,239 415 50 19 — 29 2,087 
Total 90 days or more delinquent and accruing$1,612 $4,225 $2,046 $309 $91 $99 $247 $8,629 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808 

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) consumer loans exempt under regulatory rules from being classified as nonaccrual until later delinquency, usually 120 days past due.

The following table provides the average recorded investment in nonaccrual loans and leases:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Term lending$12,637 $11,114 $10,397 $11,908 
Asset based lending15,792 3,500 8,452 4,502 
Factoring545 1,903 592 7,980 
Lease financing2,675 3,529 3,308 3,194 
SBA/USDA1,261 1,776 1,353 1,152 
Commercial finance32,910 21,822 24,102 28,736 
Total loans and leases$32,910 $21,822 $24,102 $28,736 

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2023 and 2022 was not significant.
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. No loans were modified in a TDR during the three months ended June 30, 2023. There were $0.2 million of commercial finance loans and $0.5 million of consumer finance loans that were modified in a TDR during the three months ended June 30, 2022, all of which were modified to extend the term of the loan.

During the nine months ended June 30, 2023, there were no loans that were modified in a TDR. There were $10.4 million of commercial finance loans and $0.7 million of consumer finance loans that were modified in a TDR during the nine months ended June 30, 2022, all of which were modified to extend the term of the loan.

During the three months ended June 30, 2023, there was an immaterial amount of commercial finance 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 June 30, 2022, the Company had $1.4 million of commercial finance loans and $0.3 million of consumer finance loans that were modified in a TDR with the previous 12 months and for which there was a payment default.

During the nine months ended June 30, 2023, the Company had $0.4 million of commercial finance 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, 2022, the Company had $3.9 million of commercial finance loans and $1.1 million of consumer finance 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 nine months ended June 30, 2023 and June 30, 2022.