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LOANS AND LEASES, NET

12 Months Ended

Sep. 30, 2025

Loans and Leases Receivable Disclosure [Abstract]

Loans and leases consist of the following:


(Dollars in thousands)	September 30, 2025		September 30, 2024
Term lending	$	2,302,540	$	1,554,641
Asset-based lending	593,265		471,897
Factoring	217,501		362,295
Lease financing	149,236		152,174
SBA/USDA	511,488		568,628
Other commercial finance	149,939		185,964
Commercial finance	3,923,969		3,295,599


Consumer finance	93,319		248,800
Tax services	2,532		8,825
Warehouse finance	645,186		517,847
Total loans and leases	4,665,006		4,071,071
Net deferred loan origination costs (fees)	(98)		4,124
Total gross loans and leases	4,664,908		4,075,195
Allowance for credit losses	(53,319)		(71,765)
Total loans and leases, net	$	4,611,589	$	4,003,430

During the fiscal years ended September 30, 2025 and 2024, the Company originated $2.50 billion and $2.03 billion of consumer finance and SBA/USDA loans as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $2.91 billion and gain on sale of $37.0 million during the fiscal year ended September 30, 2025. The Company sold held for sale loans resulting in proceeds of $2.04 billion and gain on sale of $5.9 million during the fiscal year ended September 30, 2024. Gains and losses from the sale of loans and leases are included in secondary market revenue on the Consolidated Statements of Operations.

See Note 2. Divestitures to the Consolidated Financial Statements for further information on the sale of the Company's commercial insurance premium finance business.

Loans purchased and sold by portfolio segment, including participation interests, were as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2025		2024
Loans Purchased





Loans held for investment:
Commercial finance	$	20,811	$	13,782


Warehouse finance	205,417		284,480
Total purchases	$	226,228	$	298,262
Loans Sold
Loans held for sale:
Commercial finance	$	563,997	$	99,005
Consumer finance	2,349,777		1,937,079







Total sales	$	2,913,774	$	2,036,084

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


(Dollars in thousands)	September 30, 2025		September 30, 2024
Minimum lease payments receivable	$	157,271	$	162,757
Unguaranteed residual assets	6,785		9,300
Unamortized initial direct costs	68		102
Unearned income	(14,820)		(19,883)
Total net investment in direct financing and sales-type leases	$	149,304	$	152,276

The components of total lease income were as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2025		2024		2023
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases	$	11,185	$	11,827	$	13,536

Leasing and equipment finance noninterest income
Lease income from operating lease payments	50,750		53,365		53,551

Other(1)	8,441		4,921		3,964
Total leasing and equipment finance noninterest income	59,191		58,286		57,515
Total lease income	$	70,376	$	70,113	$	71,051
(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 September 30, 2025 were as follows:


(Dollars in thousands)
2026	$	50,195
2027	60,916
2028	22,911
2029	15,108
2030	6,489
Thereafter	1,652

Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	157,271
Third-party residual value guarantees	—
Total carrying amount of minimum lease payments for direct financing and sales-type leases	$	157,271

The Company did not record any contingent rental income from direct financing and sales-type leases in the fiscal year ended September 30, 2025.

A number of factors that began to affect the economic environment in 2023 have continued into 2025, including economic uncertainty, inflation, increased interest rates, with the Federal Reserve beginning to lower the target federal funds rate at the end of 2024, and geopolitical conflict. Since early 2025, global markets and the U.S. economy have also experienced disruption and volatility resulting from tariffs and other policies of the U.S. administration, which may continue during the remainder of 2025. 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 by portfolio segment was as follows:


	Fiscal Year Ended September 30,
(Dollars in thousands)	2025		2024
Beginning balance	$	71,765	$	96,855
Provision for credit loss	56,545		57,678
Charge-offs	(90,894)		(95,245)
Recoveries	15,903		12,477
Ending balance	$	53,319	$	71,765


	Fiscal Year Ended September 30, 2025
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	30,394	$	11,728	$	(16,977)	$	3,200	$	28,345
Asset-based lending	1,356		11,855		(5,611)		50		7,650
Factoring	5,757		(668)		(1,479)		709		4,319
Lease financing	1,189		1,240		(1,426)		37		1,040
Insurance premium finance	—		91		(93)		2		—
SBA/USDA	3,273		4,100		(2,649)		83		4,807
Other commercial finance	607		(517)		—		—		90
Commercial finance	42,576		27,829		(28,235)		4,081		46,251


Consumer finance	28,669		6,497		(30,938)		2,194		6,422
Tax services	2		22,091		(31,721)		9,628		—
Warehouse finance	518		128		—		—		646
Total loans and leases	71,765		56,545		(90,894)		15,903		53,319
Unfunded commitments(1)	695		229		—		—		924
Total	$	72,460	$	56,774	$	(90,894)	$	15,903	$	54,243
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.


	Fiscal Year Ended September 30, 2024
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	25,686	$	20,558	$	(18,193)	$	2,343	$	30,394
Asset-based lending	2,738		(1,637)		—		255		1,356
Factoring	6,566		1,420		(2,453)		224		5,757
Lease financing	3,302		(2,010)		(287)		184		1,189
Insurance premium finance	2,637		(1,767)		(1,149)		279		—
SBA/USDA	2,962		1,065		(755)		1		3,273
Other commercial finance	3,089		(2,482)		—		—		607
Commercial finance	46,980		15,147		(22,837)		3,286		42,576


Consumer finance	49,496		19,395		(41,628)		1,406		28,669
Tax services	2		22,995		(30,780)		7,785		2
Warehouse finance	377		141		—		—		518
Total loans and leases	96,855		57,678		(95,245)		12,477		71,765
Unfunded commitments(1)	272		423		—		—		695
Total	$	97,127	$	58,101	$	(95,245)	$	12,477	$	72,460
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.


	Fiscal Year Ended September 30, 2023
(Dollars in thousands)	Beginning Balance		Provision (Reversal)		Charge-offs		Recoveries		Ending Balance
Allowance for credit losses:
Term lending	$	24,621	$	10,541	$	(11,295)	$	1,819	$	25,686
Asset-based lending	1,050		4,005		(2,873)		556		2,738
Factoring	6,556		1,523		(1,545)		32		6,566
Lease financing	5,902		(1,424)		(1,479)		303		3,302
Insurance premium finance	1,450		2,349		(1,659)		497		2,637
SBA/USDA	3,263		(296)		(43)		38		2,962
Other commercial finance	1,310		1,779		—		—		3,089
Commercial finance	44,152		18,477		(18,894)		3,245		46,980


Consumer finance	19,312		55,034		(26,297)		1,447		49,496
Tax services	5		35,775		(38,741)		2,963		2
Warehouse finance	327		50		—		—		377
Total loans and leases	63,796		109,336		(83,932)		7,655		96,855
Unfunded commitments(1)	366		(94)		—		—		272
Total	$	64,162	$	109,242	$	(83,932)	$	7,655	$	97,127
(1) Reserve for unfunded commitments is recognized within other liabilities on the 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)	September 30, 2025		September 30, 2024
Term lending	$	33,042	$	15,491
Asset-based lending	24,273		—

Lease financing	3,985		5,300

SBA/USDA	6,147		1,419

Commercial finance(1)	67,447		22,210





Total	$	67,447	$	22,210
(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 $107.7 million and $105.1 million at September 30, 2025 and 2024, 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 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 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 $93.3 million and $2.5 million at September 30, 2025, respectively, and $248.8 million and $8.8 million at September 30, 2024, 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
September 30, 2025	2025		2024		2023		2022		2021		Prior
Term lending
Pass	$	935,599	$	399,968	$	298,678	$	99,820	$	43,216	$	35,971	$	—	$	1,813,252
Watch	65,674		71,326		68,737		7,222		28,882		13,357		—		255,198
Special mention	56		68,989		3,762		826		11,078		65		—		84,776
Substandard	29,792		24,666		37,845		14,137		16,050		19,995		—		142,485
Doubtful	—		564		774		3,854		1,615		22		—		6,829
Total	1,031,121		565,513		409,796		125,859		100,841		69,410		—		2,302,540
Current period charge-offs	—		7,818		4,492		3,257		991		419		—		16,977
Asset-based lending
Pass	—		—		—		—		—		—		301,128		301,128
Watch	—		—		—		—		—		—		233,541		233,541
Special mention	—		—		—		—		—		—		31,702		31,702
Substandard	—		—		—		—		—		—		24,730		24,730
Doubtful	—		—		—		—		—		—		2,164		2,164
Total	—		—		—		—		—		—		593,265		593,265
Current period charge-offs	—		—		—		—		—		—		5,611		5,611
Factoring
Pass	—		—		—		—		—		—		179,352		179,352
Watch	—		—		—		—		—		—		36,218		36,218
Special mention	—		—		—		—		—		—		394		394
Substandard	—		—		—		—		—		—		1,537		1,537

Total	—		—		—		—		—		—		217,501		217,501
Current period charge-offs	—		—		—		—		—		—		1,479		1,479
Lease financing
Pass	43,710		20,259		36,483		2,270		1,089		4,439		—		108,250
Watch	13,587		5,181		13		635		1,059		—		—		20,475
Special mention	—		941		223		—		181		44		—		1,389
Substandard	7,190		—		5,375		1,377		4,088		905		—		18,935
Doubtful	—		—		150		—		37		—		—		187
Total	64,487		26,381		42,244		4,282		6,454		5,388		—		149,236
Current period charge-offs	—		—		320		—		1,005		101		—		1,426


Insurance premium finance






Current period charge-offs	—		62		31		—		—		—		—		93
SBA/USDA
Pass	79,928		61,063		93,459		136,075		19,674		30,962		—		421,161
Watch	2,651		5,117		136		12,477		691		3,598		—		24,670
Special mention	2,682		350		—		—		326		1,038		—		4,396
Substandard	315		3,176		12,721		7,678		2,235		30,588		—		56,713
Doubtful	221		2,687		1,592		—		—		48		—		4,548
Total	85,797		72,393		107,908		156,230		22,926		66,234		—		511,488
Current period charge-offs	74		882		537		90		55		1,011		—		2,649
Other commercial finance
Pass	8,770		63,200		—		134		12,471		62,495		—		147,070
Watch	—		—		2,418		—		—		—		—		2,418

Substandard	—		—		451		—		—		—		—		451

Total	8,770		63,200		2,869		134		12,471		62,495		—		149,939
Current period charge-offs	—		—		—		—		—		—		—		—
Warehouse finance
Pass	—		—		—		—		—		—		645,186		645,186




Total	—		—		—		—		—		—		645,186		645,186
Current period charge-offs	—		—		—		—		—		—		—		—
Total loans and leases
Pass	1,068,007		544,490		428,620		238,299		76,450		133,867		1,125,666		3,615,399
Watch	81,912		81,624		71,304		20,334		30,632		16,955		269,759		572,520
Special mention	2,738		70,280		3,985		826		11,585		1,147		32,096		122,657
Substandard	37,297		27,842		56,392		23,192		22,373		51,488		26,267		244,851
Doubtful	221		3,251		2,516		3,854		1,652		70		2,164		13,728
Total	$	1,190,175	$	727,487	$	562,817	$	286,505	$	142,692	$	203,527	$	1,455,952	$	4,569,155
Current period charge-offs	$	74	$	8,762	$	5,380	$	3,347	$	2,051	$	1,531	$	7,090	$	28,235


	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
September 30, 2024	2024		2023		2022		2021		2020		Prior
Term lending
Pass	$	548,597	$	398,832	$	117,180	$	77,585	$	42,950	$	24,166	$	—	$	1,209,310
Watch	47,765		52,317		34,964		31,025		2,720		2,312		—		171,103
Special mention	44,617		3,106		9,121		14,772		7,238		2		—		78,856
Substandard	9,798		24,187		18,537		11,660		18,894		2,631		—		85,707
Doubtful	4,314		1,465		2,247		758		114		767		—		9,665
Total	655,091		479,907		182,049		135,800		71,916		29,878		—		1,554,641
Current period charge-offs	114		3,102		8,502		3,576		2,184		715		—		18,193
Asset-based lending
Pass	—		—		—		—		—		—		233,268		233,268
Watch	—		—		—		—		—		—		221,521		221,521
Special mention	—		—		—		—		—		—		13,187		13,187


Substandard	—	—	—	—	—	—	3,921	3,921

Total	—	—	—	—	—	—	471,897	471,897
Current period charge-offs	—	—	—	—	—	—	—	—
Factoring
Pass	—	—	—	—	—	—	292,436	292,436
Watch	—	—	—	—	—	—	62,270	62,270
Special mention	—	—	—	—	—	—	271	271
Substandard	—	—	—	—	—	—	7,306	7,306
Doubtful	—	—	—	—	—	—	12	12
Total	—	—	—	—	—	—	362,295	362,295
Current period charge-offs	—	—	—	—	—	—	2,453	2,453
Lease financing
Pass	44,883	48,851	12,862	7,101	7,938	1,733	—	123,368
Watch	1,837	3,537	370	6,264	1,362	40	—	13,410
Special mention	—	250	—	—	174	—	—	424
Substandard	—	6,691	2,723	2,717	2,069	603	—	14,803
Doubtful	—	—	—	138	31	—	—	169
Total	46,720	59,329	15,955	16,220	11,574	2,376	—	152,174
Current period charge-offs	—	—	—	207	80	—	—	287
Insurance premium finance






Current period charge-offs	86	890	173	—	—	—	—	1,149
SBA/USDA
Pass	60,636	171,136	179,490	20,825	28,588	39,319	—	499,994
Watch	5,244	6,967	—	639	10	3,026	—	15,886
Special mention	—	—	—	156	—	363	—	519
Substandard	1,037	15,923	12,158	2,003	9,519	11,134	—	51,774
Doubtful	—	185	55	55	62	98	—	455
Total	66,917	194,211	191,703	23,678	38,179	53,940	—	568,628
Current period charge-offs	—	549	79	—	127	—	—	755
Other commercial finance
Pass	73,330	2,210	6,685	12,351	1,274	70,203	—	166,053
Watch	—	2,480	—	—	—	—	—	2,480

Substandard	—	508	—	16,923	—	—	—	17,431

Total	73,330	5,198	6,685	29,274	1,274	70,203	—	185,964
Current period charge-offs	—	—	—	—	—	—	—	—
Warehouse finance
Pass	—	—	—	—	—	—	517,847	517,847




Total	—	—	—	—	—	—	517,847	517,847
Current period charge-offs	—	—	—	—	—	—	—	—
Total loans and leases
Pass	727,446	621,029	316,217	117,862	80,750	135,421	1,043,551	3,042,276
Watch	54,846	65,301	35,334	37,928	4,092	5,378	283,791	486,670
Special mention	44,617	3,356	9,121	14,928	7,412	365	13,458	93,257


Substandard	10,835		47,309		33,418		33,303		30,482		14,368		11,227		180,942
Doubtful	4,314		1,650		2,302		951		207		865		12		10,301
Total	$	842,058	$	738,645	$	396,392	$	204,972	$	122,943	$	156,397	$	1,352,039	$	3,813,446
Current period charge-offs	$	200	$	4,541	$	8,754	$	3,783	$	2,391	$	715	$	2,453	$	22,837

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		Nonaccrual Balance		Total
September 30, 2025
Loans held for sale	$	2,319	$	1,860	$	1,521	$	5,700	$	173,721	$	179,421	$	1,521	$	—	$	1,521

Term lending	29,283		8,869		30,734		68,886		2,233,654		2,302,540		4,420		38,959		43,379
Asset-based lending	—		—		—		—		593,265		593,265		—		24,327		24,327
Factoring	—		—		—		—		217,501		217,501		—		1,291		1,291
Lease financing	2,222		316		5,291		7,829		141,407		149,236		1,067		4,268		5,335

SBA/USDA	—		8,876		17,808		26,684		484,804		511,488		7,413		12,571		19,984
Other commercial finance	—		—		—		—		149,939		149,939		—		—		—
Commercial finance	31,505		18,061		53,833		103,399		3,820,570		3,923,969		12,900		81,416		94,316


Consumer finance	909		778		826		2,513		90,806		93,319		826		—		826
Tax services	—		—		2,477		2,477		55		2,532		2,477		—		2,477
Warehouse finance	—		—		—		—		645,186		645,186		—		—		—
Total loans and leases held for investment	32,414		18,839		57,136		108,389		4,556,617		4,665,006		16,203		81,416		97,619
Total loans and leases	$	34,733	$	20,699	$	58,657	$	114,089	$	4,730,338	$	4,844,427	$	17,724	$	81,416	$	99,140


	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		Nonaccrual Balance		Total
September 30, 2024
Loans held for sale	$	2,266	$	1,361	$	1,050	$	4,677	$	687,011	$	691,688	$	1,050	$	—	$	1,050

Term lending	19,776		5,124		17,694		42,594		1,512,047		1,554,641		1,923		23,462		25,385
Asset-based lending	—		—		—		—		471,897		471,897		—		—		—
Factoring	—		—		—		—		362,295		362,295		—		29		29
Lease financing	3,605		1,595		109		5,309		146,865		152,174		60		746		806

SBA/USDA	—		952		2,172		3,124		565,504		568,628		331		2,175		2,506
Other commercial finance	—		—		—		—		185,964		185,964		—		—		—
Commercial finance	23,381		7,671		19,975		51,027		3,244,572		3,295,599		2,314		26,412		28,726


Consumer finance	3,962		3,186		3,053		10,201		238,599		248,800		3,053		—		3,053
Tax services	—		—		8,733		8,733		92		8,825		8,733		—		8,733
Warehouse finance	—		—		—		—		517,847		517,847		—		—		—
Total loans and leases held for investment	27,343		10,857		31,761		69,961		4,001,110		4,071,071		14,100		26,412		40,512
Total loans and leases	$	29,609	$	12,218	$	32,811	$	74,638	$	4,688,121	$	4,762,759	$	15,150	$	26,412	$	41,562

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
September 30, 2025	2025		2024		2023		2022		2021		Prior
Term lending	$	—	$	1,383	$	23,220	$	3,469	$	10,887	$	—	$	—	$	38,959	$	18,072
Asset-based lending	—		—		—		—		—		—		24,327		24,327		2,110
Factoring	—		—		—		—		—		—		1,291		1,291		—
Lease financing	—		—		150		—		3,511		607		—		4,268		3,985

SBA/USDA	221		4,605		7,675		—		22		48		—		12,571		—

Commercial finance	221		5,988		31,045		3,469		14,420		655		25,618		81,416		24,167





Total nonaccrual loans and leases	$	221	$	5,988	$	31,045	$	3,469	$	14,420	$	655	$	25,618	$	81,416	$	24,167


	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total		Nonaccrual with No ACL
September 30, 2024	2024		2023		2022		2021		2020		Prior
Term lending	$	9,281	$	3,433	$	5,369	$	1,386	$	625	$	3,368	$	—	$	23,462	$	2,579

Factoring	—		—		—		—		—		—		29		29		—
Lease financing	—		577		11		46		2		110		—		746		—

SBA/USDA	—		738		55		55		742		585		—		2,175		681

Commercial finance	9,281		4,748		5,435		1,487		1,369		4,063		29		26,412		3,260





Total nonaccrual loans and leases	$	9,281	$	4,748	$	5,435	$	1,487	$	1,369	$	4,063	$	29	$	26,412	$	3,260

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
September 30, 2025	2025		2024		2023		2022		2021		Prior
Loans held for sale	$	521	$	835	$	150	$	15	$	—	$	—	$	—	$	1,521
Term lending	—		2,942		—		—		—		1,478		—		4,420


Lease financing	277		—		—		789		1		—		—		1,067

SBA/USDA	1,139		495		5,683		—		—		96		—		7,413

Commercial finance	1,416		3,437		5,683		789		1		1,574		—		12,900


Consumer finance	241		348		180		44		13		—		—		826
Tax services	2,477		—		—		—		—		—		—		2,477

Total loans and leases held for investment	4,134		3,785		5,863		833		14		1,574		—		16,203
Total 90 days or more delinquent and accruing	$	4,655	$	4,620	$	6,013	$	848	$	14	$	1,574	$	—	$	17,724


	Amortized Cost Basis
(Dollars in thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Total
September 30, 2024	2024		2023		2022		2021		2020		Prior
Loans held for sale	$	1,031	$	19	$	—	$	—	$	—	$	—	$	—	$	1,050
Term lending	—		621		354		719		217		12		—		1,923


Lease financing	—		—		—		2		58		—		—		60

SBA/USDA	—		—		331		—		—		—		—		331

Commercial finance	—		621		685		721		275		12		—		2,314


Consumer finance	736		1,841		388		88		—		—		—		3,053
Tax services	8,733		—		—		—		—		—		—		8,733

Total loans and leases held for investment	9,469		2,462		1,073		809		275		12		—		14,100
Total 90 days or more delinquent and accruing	$	10,500	$	2,481	$	1,073	$	809	$	275	$	12	$	—	$	15,150

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 non-accrual until later delinquency, usually 120 days past due.

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


	Fiscal Year Ended September 30,
(Dollars in thousands)	2025		2024
Term lending	$	29,965	$	20,133
Asset-based lending	4,789		4,896
Factoring	915		2,079
Lease financing	3,804		1,176

SBA/USDA	5,436		2,230

Commercial finance	44,909		30,514





Total loans and leases	$	44,909	$	30,514

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2025 and 2024 was not significant.

Modifications made to borrowers experiencing financial difficulty during the fiscal year ended September 30, 2025 were $6.7 million in the commercial finance loan portfolio. The types of modifications granted were term extensions and reduced payments. Modifications made to borrowers experiencing financial difficulty during the fiscal year ended September 30, 2024 were $9.8 million in the commercial finance loan portfolio. The types of modifications granted were term extensions and reduced payments.

During the fiscal years ended September 30, 2025 and 2024, the Company had $5.9 million and $1.5 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default, respectively. At September 30, 2025 and 2024, $5.9 million of modifications granted were in the 60 to 89 days past due category and $1.5 million of modifications granted were in the over 89 days past due category, respectively.