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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 3 Months Ended
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Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract] |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company is restating its accompanying unaudited historical condensed consolidated financial statements as of December 31, 2024 and for the three months ended December 31, 2024 to correct for identified errors in its accounting for allowance for credit losses, interest income, provision for credit losses, and noninterest expense. In addition, the Company has corrected other unrelated immaterial errors which were previously not recorded or not recorded in the appropriate period. Prior period financial information restated for the quarter ended December 31, 2023, was restated in the Form 10-K/A for the fiscal year ended September 30, 2024. DESCRIPTION OF RESTATEMENT RECONCILIATION TABLES In the following tables, we have presented a reconciliation of our condensed consolidated statements of financial condition, operations and cash flows as of December 31, 2024 and for the three months ended December 31, 2024, as previously reported in the Original Report, to the restated amounts. The only change to the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of changes in stockholders' equity for the three months ended December 31, 2024 as a result of the restatement is due to the changes in net income (loss). See the statement of operations reconciliation table below for additional information on the restatement impacts to net income (loss). The restatement relates to the following misstatements: (a) Allowance for Credit Loss, Interest Income, Provision for credit loss, and Noninterest expense The errors relate to the Company's accounting and financial reporting of certain third-party lending and servicing relationships within the Consumer Solutions business. Historically, we accounted for all borrower payments and credit enhancement payments under these programs on a single unit or net basis, with all such payments presented as interest income representing our effective yield on the portfolios. We determined that these payments should instead be accounted for on a separate unit of account or gross basis, with loan yields and interest income recorded at the gross borrower loan rate, and credit losses and associated provisions for credit losses recorded on a gross basis over the life of the loans, and with all credit enhancement and servicing payments recorded separately in noninterest expense (the “Gross Basis Approach”). Additionally, there are tax adjustments that relate to the tax impact of the restatement entries discussed. (b) Other Adjustments The adjustments identified in this category include immaterial errors that were addressed and corrected as part of the restatement and tax adjustments. These errors have an immaterial impact on the 2024 condensed consolidated financial statements and they relate to misstatements in insurance premiums and loans. Additionally, there are tax adjustments that relate to the tax impact of the restatement entries discussed. Restated Condensed Consolidated Statements of Financial Condition (unaudited)
| December 31, 2024
(Dollars in thousands, except per share data) | As Previously Reported on Form 10-Q |  | Restatement Adjustment |  | Restatement Reference |  | As Restated
ASSETS |  |  |  |  |  |  |
Cash and cash equivalents | $ | 597,396 |  |  | $ | — |  |  |  |  | $ | 597,396 |
Securities available for sale, at fair value | 1,480,090 |  |  | — |  |  |  |  | 1,480,090 |
Securities held to maturity, at amortized cost (fair value $27,431) | 32,001 |  |  | — |  |  |  |  | 32,001 |
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost | 24,454 |  |  | — |  |  |  |  | 24,454 |
Loans held for sale | 72,648 |  |  | — |  |  |  |  | 72,648 |
Loans and leases | 4,562,681 |  |  | — |  |  |  |  | 4,562,681 |
Allowance for credit losses | (48,977) |  |  | (25,360) |  |  | a |  | (74,337) |
Accrued interest receivable | 35,279 |  |  | — |  |  |  |  | 35,279 |
Premises, furniture, and equipment, net | 38,263 |  |  | — |  |  |  |  | 38,263 |
Rental equipment, net | 206,754 |  |  | — |  |  |  |  | 206,754 |
Goodwill and intangible assets | 313,074 |  |  | — |  |  |  |  | 313,074 |
Other assets | 308,679 |  |  | 6,443 |  |  | b |  | 315,122 |
Total assets | $ | 7,622,342 |  |  | $ | (18,917) |  |  |  |  | $ | 7,603,425 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
LIABILITIES |  |  |  |  |  |  |
Deposits | $ | 6,518,953 |  |  | $ | — |  |  |  |  | $ | 6,518,953 |
Short-term borrowings | — |  |  | — |  |  |  |  | — |
Long-term borrowings | 33,380 |  |  | — |  |  |  |  | 33,380 |
Accrued expenses and other liabilities | 293,579 |  |  | (41) |  |  | b |  | 293,538 |
Total liabilities | 6,845,912 |  |  | (41) |  |  |  |  | 6,845,871 |
STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |
Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2024 | — |  |  | — |  |  |  |  | — |
Common stock, $0.01 par value; 90,000,000 shares authorized, 24,189,631 shares issued, 24,119,416 shares outstanding at December 31, 2024 | 241 |  |  | — |  |  |  |  | 241 |
Common stock, Nonvoting, $0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2024 | — |  |  | — |  |  |  |  | — |
Additional paid-in capital | 640,422 |  |  | — |  |  |  |  | 640,422 |
Retained earnings | 332,322 |  |  | (18,876) |  |  | a, b |  | 313,446 |
Accumulated other comprehensive loss | (190,917) |  |  | — |  |  |  |  | (190,917) |
Treasury stock, at cost, 70,215 common shares at December 31, 2024 | (4,882) |  |  | — |  |  |  |  | (4,882) |
Total equity attributable to parent | 777,186 |  |  | (18,876) |  |  |  |  | 758,310 |
Noncontrolling interest | (756) |  |  | — |  |  |  |  | (756) |
Total stockholders’ equity | 776,430 |  |  | (18,876) |  |  |  |  | 757,554 |
Total liabilities and stockholders’ equity | $ | 7,622,342 |  |  | $ | (18,917) |  |  |  |  | $ | 7,603,425 |
Restated Condensed Consolidated Statements of Operations (unaudited)
| Three Months Ended December 31, 2024
(Dollars in thousands, except per share data) | As Previously Reported on Form 10-Q |  | Restatement Adjustment |  | Restatement Reference |  | As Restated
Interest and dividend income: |  |  |  |  |  |  |
Loans and leases, including fees | $ | 102,731 |  |  | $ | 9,118 |  |  | a, b |  | $ | 111,849 |
Mortgage-backed securities | 8,986 |  | — |  |  |  |  | 8,986 |
Other investments | 7,522 |  | — |  |  |  |  | 7,522 |
| 119,239 |  | 9,118 |  |  |  |  | 128,357 |
Interest expense: |  |  |  |  |  |  |
Deposits | 775 |  | — |  |  |  |  | 775 |
FHLB advances and other borrowings | 2,331 |  | — |  |  |  |  | 2,331 |
| 3,106 |  | — |  |  |  |  | 3,106 |
Net interest income | 116,133 |  |  | 9,118 |  |  |  |  | 125,251 |
Provision for credit loss | 12,032 |  |  | 6,629 |  |  | a |  | 18,661 |
Net interest income after provision for credit loss | 104,101 |  |  | 2,489 |  |  |  |  | 106,590 |
Noninterest income: |  |  |  |  |  |  |
Refund transfer product fees | 410 |  |  | — |  |  |  |  | 410 |
Refund advance fee income | 459 |  |  | — |  |  |  |  | 459 |
Card and deposit fees | 29,066 |  |  | — |  |  |  |  | 29,066 |
Rental income | 13,708 |  |  | — |  |  |  |  | 13,708 |
(Loss) on sale of securities | (15,671) |  |  | — |  |  |  |  | (15,671) |
Gain on divestitures | 16,404 |  |  | — |  |  |  |  | 16,404 |
Gain (loss) on sale of loans and leases | 4,378 |  |  | — |  |  |  |  | 4,378 |
Gain on sale of other | 987 |  |  | — |  |  |  |  | 987 |
Other income | 7,637 |  |  | — |  |  |  |  | 7,637 |
Total noninterest income: | 57,378 |  |  | — |  |  |  |  | 57,378 |
Noninterest expense: |  |  |  |  |  |  |
Compensation and benefits | 49,292 |  |  | — |  |  |  |  | 49,292 |
Refund transfer product expense | 108 |  |  | — |  |  |  |  | 108 |
Refund advance expense | 34 |  |  | — |  |  |  |  | 34 |
Card processing | 33,314 |  |  | — |  |  |  |  | 33,314 |
Occupancy and equipment expense | 9,706 |  |  | — |  |  |  |  | 9,706 |
Operating lease equipment depreciation | 11,426 |  |  | — |  |  |  |  | 11,426 |
Legal and consulting | 5,225 |  |  | — |  |  |  |  | 5,225 |
Intangible amortization | 812 |  |  | — |  |  |  |  | 812 |
Other expense | 13,642 |  |  | 4,238 |  |  | a |  | 17,880 |
Total noninterest expense | 123,559 |  |  | 4,238 |  |  |  |  | 127,797 |
Income before income tax expense | 37,920 |  |  | (1,749) |  |  |  |  | 36,171 |
Income tax expense | 6,294 |  |  | (289) |  |  | a, b |  | 6,005 |
Net income before noncontrolling interest | 31,626 |  |  | (1,460) |  |  |  |  | 30,166 |
Net income attributable to noncontrolling interest | 199 |  |  | — |  |  |  |  | 199 |
Net income attributable to parent | $ | 31,427 |  |  | $ | (1,460) |  |  |  |  | $ | 29,967 |
Earnings per common share: |  |  |  |  |  |  |
Basic | $ | 1.29 |  |  | $ | (0.06) |  |  |  |  | 1.23
Diluted | $ | 1.29 |  |  | $ | (0.06) |  |  |  |  | 1.23
Restated Condensed Consolidated Statements of Cash Flows (unaudited)
| Three Months Ended December 31, 2024
(Dollars in thousands) | As Previously Reported on Form 10-Q |  | Restatement Adjustment |  | Restatement Reference |  | As Restated
Cash flows from operating activities: |  |  |  |  |  |  |
Net income before noncontrolling interest | $ | 31,626 |  |  | $ | (1,460) |  |  | a, b |  | $ | 30,166 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |  |  |  |  |
Depreciation and amortization | 14,918 |  |  |  |  |  |  | 14,918 |
Provision for credit loss | 12,032 |  |  | 6,629 |  |  | a |  | 18,661 |
Provision for deferred taxes | 2,157 |  |  | (158) |  |  | b |  | 1,999 |
Originations of loans held for sale | (853,109) |  |  |  |  |  |  | (853,109) |
Proceeds from sales of loans held for sale | 618,432 |  |  |  |  |  |  | 618,432 |
Net change in loans held for sale | 264,136 |  |  |  |  |  |  | 264,136 |
Net realized (gain) loss on loans held for sale | (4,378) |  |  |  |  |  |  | (4,378) |
Net realized loss on securities available for sale | 15,671 |  |  |  |  |  |  | 15,671 |
Net realized (gain) on divestitures | (16,404) |  |  |  |  |  |  | (16,404) |
Net realized (gain) on other | (987) |  |  |  |  |  |  | (987) |
Net change in accrued interest receivable | (3,894) |  |  |  |  |  |  | (3,894) |
Net change in other assets | (30,339) |  |  | 7 |  |  | b |  | (30,332) |
Net change in accrued expenses and other liabilities | (128,088) |  |  | (138) |  |  | b |  | (128,226) |
Stock compensation | 1,612 |  |  |  |  |  |  | 1,612 |
Net cash provided by operating activities | (76,615) |  |  | 4,880 |  |  |  |  | (71,735) |
Cash flows from investing activities: |  |  |  |  |  |  |
Purchases of securities available for sale | (1,168) |  |  |  |  |  |  | (1,168) |
Proceeds from sales of securities available for sale | 160,135 |  |  |  |  |  |  | 160,135 |
Proceeds from maturities of and principal collected on securities available for sale | 39,727 |  |  |  |  |  |  | 39,727 |
Proceeds from maturities of and principal collected on securities held to maturity | 1,038 |  |  |  |  |  |  | 1,038 |
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock | (90,725) |  |  |  |  |  |  | (90,725) |
Redemption of Federal Reserve Bank and Federal Home Loan Bank stock | 102,285 |  |  |  |  |  |  | 102,285 |
Purchases of loans and leases | (139,359) |  |  |  |  |  |  | (139,359) |
Net change in loans and leases | (325,766) |  |  | (4,880) |  |  | a, b |  | (330,646) |
Purchases of premises, furniture, and equipment | (2,087) |  |  |  |  |  |  | (2,087) |
Purchases of rental equipment | (52,790) |  |  |  |  |  |  | (52,790) |
Proceeds from sales of rental equipment | 5,591 |  |  |  |  |  |  | 5,591 |
Net change in rental equipment | 118 |  |  |  |  |  |  | 118 |
Proceeds from divestitures, net of transaction costs | 600,232 |  |  |  |  |  |  | 600,232 |
Proceeds from sale of other assets | 408 |  |  |  |  |  |  | 408 |
Net cash provided (used in) investing activities | 297,639 |  |  | (4,880) |  |  |  |  | 292,759 |
Cash flows from financing activities: |  |  |  |  |  |  |
Net change in deposits | 655,942 |  |  |  |  |  |  | 655,942 |
Net change in short-term borrowings | (377,000) |  |  |  |  |  |  | (377,000) |
Principal payments on other liabilities | — |  |  |  |  |  |  | — |
Dividends paid on common stock | (1,202) |  |  |  |  |  |  | (1,202) |
Issuance of common stock due to restricted stock | — |  |  |  |  |  |  | — |
Repurchases of common stock | (57,010) |  |  |  |  |  |  | (57,010) |
Investment by (distributions to) noncontrolling interest | (678) |  |  |  |  |  |  | (678) |
Net cash provided by (used in) financing activities | 220,052 |  |  |  |  |  |  | 220,052 |
Effect of exchange rate changes on cash | (2,017) |  |  | — |  |  |  |  | (2,017) |
Net change in cash and cash equivalents | 439,059 |  |  | — |  |  |  |  | 439,059 |
Cash and cash equivalents at beginning of fiscal year | 158,337 |  |  | — |  |  |  |  | 158,337 |
Cash and cash equivalents at end of fiscal period | $ | 597,396 |  |  | $ | — |  |  |  |  | $ | 597,396 |

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