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LOANS AND LEASES, NET
 6 Months Ended
Mar. 31, 2024
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES, NET LOANS AND LEASES, NET
Loans and leases consist of the following:
(Dollars in thousands)March 31, 2024September 30, 2023
Term lending$1,489,054 $1,308,133 
Asset-based lending429,556 382,371 
Factoring336,442 358,344 
Lease financing168,616 183,392 
Insurance premium finance522,904 800,077 
SBA/USDA560,433 524,750 
Other commercial finance149,056 166,091 
Commercial finance3,656,061 3,723,158 
Consumer finance267,031 254,416 
Tax services84,502 5,192 
Warehouse finance394,814 376,915 
Total loans and leases4,402,408 4,359,681 
Net deferred loan origination costs6,977 6,435 
Total gross loans and leases4,409,385 4,366,116 
Allowance for credit losses(80,777)(49,705)
Total loans and leases, net$4,328,608 $4,316,411 

During the six months ended March 31, 2024 and 2023, the Company originated $933.8 million and $608.6 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $969.0 million and a $1.4 million gain on sale during the six months ended March 31, 2024. The Company sold held for sale loans resulting in proceeds of $604.4 million and gain on sale of $0.1 million during the six months ended March 31, 2023.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2024202320242023
Loans Purchased
Loans held for investment:
Warehouse finance$73,701 $120,185 $163,091 $187,834 
Total purchases$73,701 $120,185 $163,091 $187,834 
Loans Sold
Loans held for sale:
Commercial finance$21,173 $294 $25,045 $1,149 
Consumer finance321,489 201,199 943,953 603,214 
Total sales$342,662 $201,493 $968,998 $604,363 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)March 31, 2024September 30, 2023
Minimum lease payments receivable$177,498 $191,807 
Unguaranteed residual assets12,171 12,709 
Unamortized initial direct costs82 141 
Unearned income(21,053)(21,124)
Total net investment in direct financing and sales-type leases$168,698 $183,533 

The components of total lease income were as follows:
Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2024202320242023
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$2,853 $2,819 $5,961 $5,962 
Leasing and equipment finance noninterest income
Lease income from operating lease payments13,605 12,843 26,860 25,397 
Other(1)
869 (356)1,593 346 
Total leasing and equipment finance noninterest income14,474 12,487 28,453 25,743 
Total lease income$17,327 $15,306 $34,414 $31,705 
(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 at March 31, 2024 were as follows:
(Dollars in thousands)
Remaining in 2024$36,927 
202553,952 
202634,868 
202721,176 
202816,575 
Thereafter14,000 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases177,498 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$177,498 

The Company did not record any contingent rental income from direct financing and sales-type leases in the six months ended March 31, 2024.

A number of factors affected the economic environment in 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 these factors, some of which continue to impact the economic environment in 2024, 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 these 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 March 31, 2024
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$27,013 $6,303 $(5,176)$487 $28,627 
Asset-based lending1,370 (254)— 99 1,215 
Factoring7,433 (623)(12)16 6,814 
Lease financing4,008 (2,547)28 62 1,551 
Insurance premium finance2,123 (532)(295)113 1,409 
SBA/USDA3,289 (347)— — 2,942 
Other commercial finance3,312 (1,592)— — 1,720 
Commercial finance48,548 408 (5,455)777 44,278 
Consumer finance4,380 231 (37)2 4,576 
Tax services507 25,221 — 5,800 31,528 
Warehouse finance350 45 — — 395 
Total loans and leases53,785 25,905 (5,492)6,579 80,777 
Unfunded commitments(1)
596 147 — — 743 
Total $54,381 $26,052 $(5,492)$6,579 $81,520 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended March 31, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$26,752 $3,974 $(2,705)$394 $28,415 
Asset-based lending3,903 51 (2,873)— 1,081 
Factoring5,674 (40)(62)16 5,588 
Lease financing5,238 (183)(607)101 4,549 
Insurance premium finance1,261 155 (224)71 1,263 
SBA/USDA2,632 2 — 6 2,640 
Other commercial finance3,356 976 — — 4,332 
Commercial finance48,816 4,935 (6,471)588 47,868 
Consumer finance2,887 232 (154)— 2,965 
Tax services609 31,422 — 1,063 33,094 
Warehouse finance280 97 — — 377 
Total loans and leases52,592 36,686 (6,625)1,651 84,304 
Unfunded commitments(1)
279 77 — — 356 
Total $52,871 $36,763 $(6,625)$1,651 $84,660 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Six Months Ended March 31, 2024
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$25,686 $12,125 $(10,297)$1,113 $28,627 
Asset-based lending2,738 (1,764)— 241 1,215 
Factoring6,566 128 (35)155 6,814 
Lease financing3,302 (1,781)(125)155 1,551 
Insurance premium finance2,637 (771)(660)203 1,409 
SBA/USDA2,962 (20)— — 2,942 
Other commercial finance3,089 (1,369)— — 1,720 
Commercial finance46,980 6,548 (11,117)1,867 44,278 
Consumer finance2,346 2,328 (100)2 4,576 
Tax services2 26,577 (1,145)6,094 31,528 
Warehouse finance377 18 — — 395 
Total loans and leases49,705 35,471 (12,362)7,963 80,777 
Unfunded commitments(1)
272 471 — — 743 
Total $49,977 $35,942 $(12,362)$7,963 $81,520 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Six Months Ended March 31, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $7,645 $(4,522)$671 $28,415 
Asset-based lending1,050 2,904 (2,873)— 1,081 
Factoring6,556 (804)(183)19 5,588 
Lease financing5,902 (621)(1,013)281 4,549 
Insurance premium finance1,450 108 (409)114 1,263 
SBA/USDA3,263 (649)— 26 2,640 
Other commercial finance1,310 3,022 — — 4,332 
Commercial finance44,152 11,605 (9,000)1,111 47,868 
Consumer finance1,463 1,835 (333)— 2,965 
Tax services5 33,059 (1,731)1,761 33,094 
Warehouse finance327 50 — — 377 
Total loans and leases45,947 46,549 (11,064)2,872 84,304 
Unfunded commitments(1)
366 (10)— — 356 
Total $46,313 $46,539 $(11,064)$2,872 $84,660 
(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 March 31, 2024At September 30, 2023
Term lending$7,100 $3,516 
Asset-based lending1,213 19,226 
Factoring5,103 1,133 
Lease financing647 630 
SBA/USDA1,748 750 
Commercial finance(1)
15,811 25,255 
Total$15,811 $25,255 
(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 $119.1 million and $117.0 million at March 31, 2024 and at September 30, 2023, 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 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. The Company individually evaluates loans and leases that do not share similar risk characteristics with other financial assets, which generally means loans and leases identified as modifications or loans and leases on nonaccrual status.

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 $267.0 million and $84.5 million at March 31, 2024, respectively, and $254.4 million and $5.2 million at September 30, 2023, 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 March 31, 202420242023202220212020Prior
Term lending
Pass$308,787 $492,087 $125,586 $97,696 $54,397 $48,457 $— $1,127,010 
Watch66,389 42,282 46,196 24,715 3,456 1,549 — 184,587 
Special mention920 14,887 7,222 19,254 10,145 114 — 52,542 
Substandard9,546 35,689 23,732 21,362 22,623 4,730 — 117,682 
Doubtful— 601 3,135 1,657 534 1,306 — 7,233 
Total385,642 585,546 205,871 164,684 91,155 56,156 — 1,489,054 
Current period charge-offs— 1,336 5,063 2,314 1,351 233 — 10,297 
Asset-based lending
Pass— — — — — — 229,053 229,053 
Watch— — — — — — 176,233 176,233 
Special mention— — — — — — 21,530 21,530 
Substandard— — — — — — 2,740 2,740 
Total— — — — — — 429,556 429,556 
Current period charge-offs— — — — — — — — 
Factoring
Pass— — — — — — 272,222 272,222 
Watch— — — — — — 38,237 38,237 
Special mention— — — — — — 7,459 7,459 
Substandard— — — — — — 16,970 16,970 
Doubtful— — — — — — 1,554 1,554 
Total— — — — — — 336,442 336,442 
Current period charge-offs— — — — — — 35 35 
Lease financing
Pass29,214 57,899 11,949 10,795 17,486 2,851 — 130,194 
Watch1,210 164 9,047 9,295 2,019 398 — 22,133 
Special mention— 278 — — 1,026 45 — 1,349 
Substandard52 6,013 1,165 3,506 2,291 1,612 — 14,639 
Doubtful— — — 58 — 243 — 301 
Total30,476 64,354 22,161 23,654 22,822 5,149 — 168,616 
Current period charge-offs— — — 58 67 — — 125 
Insurance premium finance
Pass380,580 141,340 56 — — — — 521,976 
Watch90 254 — — — — — 344 
Special mention30 270 — — — — — 300 
Substandard5 152 — — — — — 157 
Doubtful— 127 — — — — — 127 
Total380,705 142,143 56 — — — — 522,904 
Current period charge-offs— 487 173 — — — — 660 
SBA/USDA
Pass34,482 184,511 182,889 25,243 25,614 40,539 — 493,278 
Watch— 12,241 55 1,111 6,592 3,077 — 23,076 
Special mention— — 1,325 — 2,783 369 — 4,477 
Substandard— 10,144 11,173 1,295 5,217 11,694 — 39,523 
Doubtful— — 79 — — — — 79 
Total34,482 206,896 195,521 27,649 40,206 55,679 — 560,433 
Current period charge-offs— — — — — — — — 
Other commercial finance
Pass— 2,270 10,532 32,600 1,079 73,678 — 120,159 
Watch— 2,500 — — — — — 2,500 
Substandard— 2,681 44 23,672 — — — 26,397 
Total— 7,451 10,576 56,272 1,079 73,678 — 149,056 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 394,814 394,814 
Total— — — — — — 394,814 394,814 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass753,063 878,107 331,012 166,334 98,576 165,525 896,089 3,288,706 
Watch67,689 57,441 55,298 35,121 12,067 5,024 214,470 447,110 
Special mention950 15,435 8,547 19,254 13,954 528 28,989 87,657 
Substandard9,603 54,679 36,114 49,835 30,131 18,036 19,710 218,108 
Doubtful— 728 3,214 1,715 534 1,549 1,554 9,294 
Total$831,305 $1,006,390 $434,185 $272,259 $155,262 $190,662 $1,160,812 $4,050,875 
Current period charge-offs$— $1,823 $5,236 $2,372 $1,418 $233 $35 $11,117 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Term lending
Pass$539,448 $149,190 $99,677 $73,132 $14,368 $85,812 $— $961,627 
Watch53,481 51,036 58,041 12,230 4,483 727 — 179,998 
Special mention26,539 13,853 20,463 723 2,932 75 — 64,585 
Substandard20,437 30,451 14,729 24,613 3,872 764 — 94,866 
Doubtful200 2,655 1,691 1,121 165 1,225 — 7,057 
Total640,105 247,185 194,601 111,819 25,820 88,603 — 1,308,133 
Asset-based lending
Pass— — — — — — 161,744 161,744 
Watch— — — — — — 174,243 174,243 
Special mention— — — — — — 26,382 26,382 
Substandard— — — — — — 19,501 19,501 
Doubtful— — — — — — 501 501 
Total— — — — — — 382,371 382,371 
Factoring
Pass— — — — — — 270,754 270,754 
Watch— — — — — — 70,833 70,833 
Special mention— — — — — — 8,892 8,892 
Substandard— — — — — — 7,865 7,865 
Total— — — — — — 358,344 358,344 
Lease financing
Pass57,123 15,941 15,167 27,489 4,036 1,281 — 121,037 
Watch793 10,436 12,566 4,494 1,579 55 — 29,923 
Special mention— — 847 415 195 — — 1,457 
Substandard14,890 1,983 7,082 3,660 3,062 33 — 30,710 
Doubtful— — 71 61 — 133 — 265 
Total72,806 28,360 35,733 36,119 8,872 1,502 — 183,392 
Insurance premium finance
Pass797,267 1,210 — — — — — 798,477 
Watch858 34 — — — — — 892 
Special mention250 15 — — — — — 265 
Substandard91 20 — — — — — 111 
Doubtful180 152 — — — — — 332 
Total798,646 1,431 — — — — — 800,077 
SBA/USDA
Pass158,675 148,525 26,244 36,274 8,798 18,252 — 396,768 
Watch49,010 48,833 658 51 357 2,572 — 101,481 
Special mention— — 530 — — — — 530 
Substandard252 2,356 1,718 5,418 8,509 7,718 — 25,971 
Total207,937 199,714 29,150 41,743 17,664 28,542 — 524,750 
Other commercial finance
Pass2,330 18,927 32,737 1,137 10,122 69,927 — 135,180 
Watch1,742 — — — — — — 1,742 
Substandard2,753 450 25,708 — — 258 — 29,169 
Total6,825 19,377 58,445 1,137 10,122 70,185 — 166,091 
Warehouse finance
Pass— — — — — — 376,915 376,915 
Total— — — — — — 376,915 376,915 
Total loans and leases
Pass1,554,843 333,793 173,825 138,032 37,324 175,272 809,413 3,222,502 
Watch105,884 110,339 71,265 16,775 6,419 3,354 245,076 559,112 
Special mention26,789 13,868 21,840 1,138 3,127 75 35,274 102,111 
Substandard38,423 35,260 49,237 33,691 15,443 8,773 27,366 208,193 
Doubtful380 2,807 1,762 1,182 165 1,358 501 8,155 
Total$1,726,319 $496,067 $317,929 $190,818 $62,478 $188,832 $1,117,630 $4,100,073 
Past due loans and leases were as follows:
At March 31, 2024
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 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$323 $546 $843 $1,712 $24,234 $25,946 $843 $— $843 
Term lending31,580 20,883 10,397 62,860 1,426,194 1,489,054 890 18,960 19,850 
Asset-based lending— — — — 429,556 429,556 — — — 
Factoring— — — — 336,442 336,442 — 4,580 4,580 
Lease financing2,655 171 1,526 4,352 164,264 168,616 752 1,605 2,357 
Insurance premium finance2,211 592 1,037 3,840 519,064 522,904 1,037 — 1,037 
SBA/USDA36 2,340 2,636 5,012 555,421 560,433 — 2,636 2,636 
Other commercial finance— — — — 149,056 149,056 — — — 
Commercial finance36,482 23,986 15,596 76,064 3,579,997 3,656,061 2,679 27,781 30,460 
Consumer finance4,293 3,001 3,093 10,387 256,644 267,031 3,093 — 3,093 
Tax services1,123 — — 1,123 83,379 84,502 — — — 
Warehouse finance— — — — 394,814 394,814 — — — 
Total loans and leases held for investment41,898 26,987 18,689 87,574 4,314,834 4,402,408 5,772 27,781 33,553 
Total loans and leases$42,221 $27,533 $19,532 $89,286 $4,339,068 $4,428,354 $6,615 $27,781 $34,396 
At September 30, 2023
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 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$626 $549 $306 $1,481 $76,298 $77,779 $306 $— $306 
Term lending13,898 7,723 11,136 32,757 1,275,376 1,308,133 3,737 15,324 19,061 
Asset-based lending— — 123 123 382,248 382,371 — 18,082 18,082 
Factoring— — — — 358,344 358,344 — 1,298 1,298 
Lease financing6,865 158 4,828 11,851 171,541 183,392 4,242 1,666 5,908 
Insurance premium finance2,159 1,262 2,339 5,760 794,317 800,077 2,339 — 2,339 
SBA/USDA512 — 1,835 2,347 522,403 524,750 833 1,002 1,835 
Other commercial finance— — 91 91 166,000 166,091 91 — 91 
Commercial finance23,434 9,143 20,352 52,929 3,670,229 3,723,158 11,242 37,372 48,614 
Consumer finance2,992 2,425 2,210 7,627 246,789 254,416 2,210 — 2,210 
Tax services— — 5,082 5,082 110 5,192 5,082 — 5,082 
Warehouse finance— — — — 376,915 376,915 — — — 
Total loans and leases held for investment26,426 11,568 27,644 65,638 4,294,043 4,359,681 18,534 37,372 55,906 
Total loans and leases$27,052 $12,117 $27,950 $67,119 $4,370,341 $4,437,460 $18,840 $37,372 $56,212 
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 March 31, 202420242023202220212020Prior
Term lending$1,121 $2,683 $7,414 $2,222 $1,446 $4,074 $— $18,960 $— 
Factoring— — — — — — 4,580 4,580 — 
Lease financing— — 95 540 695 275 — 1,605 539 
SBA/USDA— 1,307 79 — 1,005 245 — 2,636 750 
Commercial finance1,121 3,990 7,588 2,762 3,146 4,594 4,580 27,781 1,289 
Total nonaccrual loans and leases$1,121 $3,990 $7,588 $2,762 $3,146 $4,594 $4,580 $27,781 $1,289 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202320232022202120202019Prior
Term lending$865 $4,942 $2,933 $2,165 $3,134 $1,285 $— $15,324 $— 
Asset-based lending— — — — — — 18,082 18,082 — 
Factoring— — — — — — 1,298 1,298 — 
Lease financing— — 446 660 — 560 — 1,666 1 
SBA/USDA— 750 — — — 252 — 1,002 — 
Commercial finance865 5,692 3,379 2,825 3,134 2,097 19,380 37,372 1 
Total nonaccrual loans and leases$865 $5,692 $3,379 $2,825 $3,134 $2,097 $19,380 $37,372 $1 

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 March 31, 202420242023202220212020Prior
Loans held for sale$— $843 $— $— $— $— $— $843 
Term lending— 185 58 393 254 — — 890 
Lease financing354 121 — — 2 275 — 752 
Insurance premium finance198 839 — — — — — 1,037 
Commercial finance552 1,145 58 393 256 275 — 2,679 
Consumer finance309 1,969 658 157 — — — 3,093 
Total loans and leases held for investment861 3,114 716 550 256 275 — 5,772 
Total 90 days or more delinquent and accruing$861 $3,957 $716 $550 $256 $275 $— $6,615 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Loans held for sale$306 $— $— $— $— $— $— $306 
Term lending1,604 1,371 500 233 29 — — 3,737 
Lease financing151 490 979 784 1,794 44 — 4,242 
Insurance premium finance— 414 114 — 334 1,477 — 2,339 
SBA/USDA— — — 833 — — — 833 
Other commercial finance— — — — — 91 — 91 
Commercial finance1,755 2,275 1,593 1,850 2,157 1,612 — 11,242 
Consumer finance891 1,045 246 — — — 28 2,210 
Tax services5,082 — — — — — — 5,082 
Total loans and leases held for investment7,728 3,320 1,839 1,850 2,157 1,612 28 18,534 
Total 90 days or more delinquent and accruing$8,034 $3,320 $1,839 $1,850 $2,157 $1,612 $28 $18,840 

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 March 31,Six Months Ended March 31,
(Dollars in thousands)2024202320242023
Term lending$18,999 $9,758 $18,209 $9,277 
Asset-based lending82 5,292 4,896 4,782 
Factoring5,745 523 3,463 615 
Lease financing1,639 3,627 1,631 3,625 
SBA/USDA2,329 1,379 1,908 1,400 
Commercial finance28,794 20,579 30,107 19,699 
Total loans and leases$28,794 $20,579 $30,107 $19,699 

The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2024 and 2023 was not significant.

Effective October 1, 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on a prospective basis. Financial information at and for the three and six months ended March 31, 2024 is reflected as such. The historical information disclosed is in accordance with Subtopic ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors.

Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2024 were $1.6 million in the commercial finance loan portfolio.

No loans were modified in a TDR during the three and six months ended March 31, 2023. The Company had an immaterial amount and $0.1 million of commercial finance loans that were modified within the previous 12 months experience a payment default during the three and six months ended March 31, 2023, respectively. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the six months ended March 31, 2023.