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LOANS AND LEASES, NET
 9 Months Ended
Jun. 30, 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)June 30, 2024September 30, 2023
Term lending$1,533,722 $1,308,133 
Asset-based lending473,289 382,371 
Factoring350,740 358,344 
Lease financing155,044 183,392 
Insurance premium finance617,054 800,077 
SBA/USDA563,689 524,750 
Other commercial finance166,653 166,091 
Commercial finance3,860,191 3,723,158 
Consumer finance253,358 254,416 
Tax services43,184 5,192 
Warehouse finance449,962 376,915 
Total loans and leases4,606,695 4,359,681 
Net deferred loan origination costs5,857 6,435 
Total gross loans and leases4,612,552 4,366,116 
Allowance for credit losses(79,836)(49,705)
Total loans and leases, net$4,532,716 $4,316,411 

During the nine months ended June 30, 2024 and 2023, the Company originated $1.43 billion and $941.5 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $1.47 billion and a $3.1 million gain on sale during the nine months ended June 30, 2024. 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.
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)2024202320242023
Loans Purchased
Loans held for investment:
Commercial finance$11,000 $— $11,000 $— 
Warehouse finance55,821 9,715 218,912 197,549 
Total purchases$66,821 $9,715 $229,912 $197,549 
Loans Sold
Loans held for sale:
Commercial finance$24,173 $11,114 $49,218 $12,263 
Consumer finance474,991 254,655 1,418,944 857,869 
Total sales$499,164 $265,769 $1,468,162 $870,132 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)June 30, 2024September 30, 2023
Minimum lease payments receivable$164,458 $191,807 
Unguaranteed residual assets10,442 12,709 
Unamortized initial direct costs62 141 
Unearned income(19,846)(21,124)
Total net investment in direct financing and sales-type leases$155,116 $183,533 

The components of total lease income were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2024202320242023
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$2,908 $2,858 $8,869 $8,821 
Leasing and equipment finance noninterest income
Lease income from operating lease payments13,589 13,780 40,449 39,176 
Other(1)
1,051 833 2,644 1,179 
Total leasing and equipment finance noninterest income14,640 14,613 43,093 40,355 
Total lease income$17,548 $17,471 $51,962 $49,176 
(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 June 30, 2024 were as follows:
(Dollars in thousands)
Remaining in 2024$17,056 
202554,962 
202636,939 
202722,897 
202817,622 
Thereafter14,982 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases164,458 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$164,458 

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 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 June 30, 2024
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$28,627 $5,962 $(4,628)$698 $30,659 
Asset-based lending1,215 10 — 9 1,234 
Factoring6,814 1,369 (2,389)18 5,812 
Lease financing1,551 (86)— 29 1,494 
Insurance premium finance1,409 480 (263)26 1,652 
SBA/USDA2,942 358 (456)— 2,844 
Other commercial finance1,720 (321)— — 1,399 
Commercial finance44,278 7,772 (7,736)780 45,094 
Consumer finance4,576 1,099 (36)— 5,639 
Tax services31,528 (3,285)(820)1,230 28,653 
Warehouse finance395 55 — — 450 
Total loans and leases80,777 5,641 (8,592)2,010 79,836 
Unfunded commitments(1)
743 240 — — 983 
Total $81,520 $5,881 $(8,592)$2,010 $80,819 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
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 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.
Nine Months Ended June 30, 2024
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$25,686 $18,087 $(14,925)$1,811 $30,659 
Asset-based lending2,738 (1,754)— 250 1,234 
Factoring6,566 1,497 (2,424)173 5,812 
Lease financing3,302 (1,867)(125)184 1,494 
Insurance premium finance2,637 (291)(923)229 1,652 
SBA/USDA2,962 338 (456)— 2,844 
Other commercial finance3,089 (1,690)— — 1,399 
Commercial finance46,980 14,320 (18,853)2,647 45,094 
Consumer finance2,346 3,427 (136)2 5,639 
Tax services2 23,292 (1,965)7,324 28,653 
Warehouse finance377 73 — — 450 
Total loans and leases49,705 41,112 (20,954)9,973 79,836 
Unfunded commitments(1)
272 711 — — 983 
Total $49,977 $41,823 $(20,954)$9,973 $80,819 
(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 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.
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, 2024At September 30, 2023
Term lending$14,425 $3,516 
Asset-based lending— 19,226 
Factoring— 1,133 
Lease financing5,909 630 
SBA/USDA1,419 750 
Commercial finance(1)
21,753 25,255 
Total$21,753 $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 $109.0 million and $117.0 million at June 30, 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 $253.4 million and $43.2 million at June 30, 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 June 30, 202420242023202220212020Prior
Term lending
Pass$401,657 $475,168 $119,617 $67,910 $52,871 $46,207 $— $1,163,430 
Watch68,494 56,746 40,545 45,016 2,967 2,676 — 216,444 
Special mention8,797 3,641 7,043 20,568 7,680 21 — 47,750 
Substandard16,990 24,672 16,907 18,418 19,170 2,684 — 98,841 
Doubtful— 2,713 2,355 963 487 739 — 7,257 
Total495,938 562,940 186,467 152,875 83,175 52,327 — 1,533,722 
Current period charge-offs— 1,976 7,241 3,211 1,789 708 — 14,925 
Asset-based lending
Pass— — — — — — 222,125 222,125 
Watch— — — — — — 233,343 233,343 
Special mention— — — — — — 13,875 13,875 
Substandard— — — — — — 3,946 3,946 
Total— — — — — — 473,289 473,289 
Current period charge-offs— — — — — — — — 
Factoring
Pass— — — — — — 287,625 287,625 
Watch— — — — — — 56,232 56,232 
Special mention— — — — — — 577 577 
Substandard— — — — — — 6,273 6,273 
Doubtful— — — — — — 33 33 
Total— — — — — — 350,740 350,740 
Current period charge-offs— — — — — — 2,424 2,424 
Lease financing
Pass34,430 55,730 18,396 8,546 10,519 2,583 — 130,204 
Watch1,157 — 387 8,489 2,258 8 — 12,299 
Special mention— 265 — 12 192 116 — 585 
Substandard— 5,902 381 2,479 2,015 819 — 11,596 
Doubtful— — — 147 27 186 — 360 
Total35,587 61,897 19,164 19,673 15,011 3,712 — 155,044 
Current period charge-offs— — — 58 67 — — 125 
Insurance premium finance
Pass600,053 16,207 — — — — — 616,260 
Watch228 133 — — — — — 361 
Special mention82 73 — — — — — 155 
Substandard41 108 — — — — — 149 
Doubtful33 96 — — — — — 129 
Total600,437 16,617 — — — — — 617,054 
Current period charge-offs24 726 173 — — — — 923 
SBA/USDA
Pass46,314 181,467 181,385 21,135 30,045 39,910 — 500,256 
Watch— 11,992 — 1,054 11 3,052 — 16,109 
Special mention— — 55 55 — 471 — 581 
Substandard— 11,736 12,281 1,606 9,539 11,180 — 46,342 
Doubtful— 300 — — — 101 — 401 
Total46,314 205,495 193,721 23,850 39,595 54,714 — 563,689 
Current period charge-offs— 250 79 — 127 — — 456 
Other commercial finance
Pass20,667 2,240 9,748 32,361 1,214 72,607 — 138,837 
Watch— 2,490 — — — — — 2,490 
Substandard— 2,645 19 22,662 — — — 25,326 
Total20,667 7,375 9,767 55,023 1,214 72,607 — 166,653 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 449,962 449,962 
Total— — — — — — 449,962 449,962 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass1,103,121 730,812 329,146 129,952 94,649 161,307 959,712 3,508,699 
Watch69,879 71,361 40,932 54,559 5,236 5,736 289,575 537,278 
Special mention8,879 3,979 7,098 20,635 7,872 608 14,452 63,523 
Substandard17,031 45,063 29,588 45,165 30,724 14,683 10,219 192,473 
Doubtful33 3,109 2,355 1,110 514 1,026 33 8,180 
Total$1,198,943 $854,324 $409,119 $251,421 $138,995 $183,360 $1,273,991 $4,310,153 
Current period charge-offs$24 $2,952 $7,493 $3,269 $1,983 $708 $2,424 $18,853 
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 $4,100,073 
Past due loans and leases were as follows:
At June 30, 2024
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $29,380 $29,380 $— $— $— 
Term lending22,708 4,523 11,403 38,634 1,495,088 1,533,722 4,843 23,871 28,714 
Asset-based lending— — — — 473,289 473,289 — — — 
Factoring— — — — 350,740 350,740 — 40 40 
Lease financing2,386 51 2,634 5,071 149,973 155,044 2,293 548 2,841 
Insurance premium finance1,584 2,463 1,227 5,274 611,780 617,054 1,227 — 1,227 
SBA/USDA1,546 311 1,807 3,664 560,025 563,689 64 3,154 3,218 
Other commercial finance— — — — 166,653 166,653 — — — 
Commercial finance28,224 7,348 17,071 52,643 3,807,548 3,860,191 8,427 27,613 36,040 
Consumer finance4,496 3,534 8,588 16,618 236,740 253,358 8,588 — 8,588 
Tax services— 43,184 — 43,184 — 43,184 — — — 
Warehouse finance— — — — 449,962 449,962 — — — 
Total loans and leases held for investment32,720 54,066 25,659 112,445 4,494,250 4,606,695 17,015 27,613 44,628 
Total loans and leases$32,720 $54,066 $25,659 $112,445 $4,523,629 $4,636,074 $17,015 $27,613 $44,628 
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 June 30, 202420242023202220212020Prior
Term lending$9,284 $2,830 $5,082 $1,712 $1,218 $3,745 $— $23,871 $— 
Factoring— — — — — — 40 40 — 
Lease financing— 153 — 155 2 238 — 548 — 
SBA/USDA— 1,037 — — 1,598 519 — 3,154 681 
Commercial finance9,284 4,020 5,082 1,867 2,818 4,502 40 27,613 681 
Total nonaccrual loans and leases$9,284 $4,020 $5,082 $1,867 $2,818 $4,502 $40 $27,613 $681 
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 June 30, 202420242023202220212020Prior
Term lending$1,570 $2,154 $746 $175 $180 $18 $— $4,843 
Lease financing220 — 1,258 287 53 475 — 2,293 
Insurance premium finance699 528 — — — — — 1,227 
SBA/USDA— — — — 48 16 — 64 
Commercial finance2,489 2,682 2,004 462 281 509 — 8,427 
Consumer finance6,535 1,516 397 140 — — — 8,588 
Total loans and leases held for investment9,024 4,198 2,401 602 281 509 — 17,015 
Total 90 days or more delinquent and accruing$9,024 $4,198 $2,401 $602 $281 $509 $— $17,015 
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 June 30,Nine Months Ended June 30,
(Dollars in thousands)2024202320242023
Term lending$20,007 $12,637 $18,808 $10,397 
Asset-based lending— 15,792 4,896 8,452 
Factoring967 545 2,631 592 
Lease financing635 2,675 1,299 3,308 
SBA/USDA2,853 1,261 2,223 1,353 
Commercial finance24,462 32,910 29,857 24,102 
Total loans and leases$24,462 $32,910 $29,857 $24,102 

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 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 nine months ended June 30, 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 nine months ended June 30, 2024 were $6.1 million and $7.6 million in the commercial finance loan portfolio, respectively. The types of modifications granted were term extensions and reduced payments.

During the three and nine months ended June 30, 2024, the Company had $1.5 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of June 30, 2024, $1.5 million of modifications granted were in the 60-89 days past due category.

No loans were modified in a TDR during the three and nine months ended June 30, 2023. The Company had an immaterial amount and $0.4 million of commercial finance loans that were modified within the previous 12 months experience a payment default during the three and nine months ended June 30, 2023, respectively. 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.