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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Dec. 31, 2024

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

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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- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-7

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

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