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LOANS AND LEASES, NET
 6 Months Ended
Mar. 31, 2025
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, 2025September 30, 2024
Term lending$1,766,432 $1,554,641 
Asset-based lending542,483 471,897 
Factoring224,520 362,295 
Lease financing134,856 152,174 
SBA/USDA701,736 568,628 
Other commercial finance154,728 185,964 
Commercial finance3,524,755 3,295,599 
Consumer finance246,202 248,800 
Tax services55,973 8,825 
Warehouse finance643,124 517,847 
Total loans and leases4,470,054 4,071,071 
Net deferred loan origination costs (fees)(5,184)4,124 
Total gross loans and leases4,464,870 4,075,195 
Allowance for credit losses(102,890)(71,765)
Total loans and leases, net$4,361,980 $4,003,430 

During the six months ended March 31, 2025 and 2024, the Company originated $1.38 billion and $933.8 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $1.15 billion and a $19.8 million gain on sale during the six months ended March 31, 2025. 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. Gains and losses from the sale of loans and leases are included in secondary market revenue on the Condensed Consolidated Statements of Operations.

See Note 3. Divestitures to the Condensed 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:

Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2025202420252024
Loans Purchased
Loans held for investment:
Commercial finance$— $— $19,540 $— 
Warehouse finance27,292 73,701 147,111 163,091 
Total purchases$27,292 $73,701 $166,651 $163,091 
Loans Sold
Loans held for sale:
Commercial finance$182,667 $21,173 $248,469 $25,045 
Consumer finance491,761 321,489 1,044,391 943,953 
Total sales$674,428 $342,662 $1,292,860 $968,998 

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

(Dollars in thousands)March 31, 2025September 30, 2024
Minimum lease payments receivable$145,382 $162,757 
Unguaranteed residual assets7,621 9,300 
Unamortized initial direct costs82 102 
Unearned income(18,145)(19,883)
Total net investment in direct financing and sales-type leases$134,940 $152,276 

The components of total lease income were as follows:

Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2025202420252024
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$2,800 $2,853 $5,987 $5,961 
Leasing and equipment finance noninterest income
Lease income from operating lease payments12,930 13,605 26,379 26,860 
Other(1)
1,139 869 2,446 1,593 
Total leasing and equipment finance noninterest income14,069 14,474 28,825 28,453 
Total lease income$16,869 $17,327 $34,812 $34,414 
(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, 2025 were as follows:

(Dollars in thousands)
Remaining in 2025$29,353 
202645,692 
202731,293 
202819,336 
202912,939 
Thereafter6,769 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases145,382 
Third-party residual value guarantees— 
Total carrying amount of minimum lease payments for direct financing and sales-type leases$145,382 

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

(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Three Months Ended March 31, 2025
Allowance for credit losses:
Term lending$29,925 $1,384 $(6,208)$1,118 $26,219 
Asset-based lending1,762 440 (172)— 2,030 
Factoring5,765 (767)(96)32 4,934 
Lease financing881 1,374 (1,019)7 1,243 
SBA/USDA3,807 775 (609)48 4,021 
Other commercial finance421 (37)— — 384 
Commercial finance42,561 3,169 (8,104)1,205 38,831 
Consumer finance30,361 5,563 (6,897)608 29,635 
Tax services790 26,178 — 6,813 33,781 
Warehouse finance625 18 — — 643 
Total loans and leases74,337 34,928 (15,001)8,626 102,890 
Unfunded commitments(1)
513 338 — — 851 
Total $74,850 $35,266 $(15,001)$8,626 $103,741 
(As Restated)
Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Three Months Ended March 31, 2024
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 finance41,635 3,923 (10,823)346 35,081 
Tax services507 25,221 — 5,800 31,528 
Warehouse finance350 45 — — 395 
Total loans and leases91,040 29,597 (16,278)6,923 111,282 
Unfunded commitments(1)
596 147 — — 743 
Total $91,636 $29,744 $(16,278)$6,923 $112,025 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Six Months Ended March 31, 2025
Allowance for credit losses:
Term lending$30,394 $8,673 $(14,583)$1,735 $26,219 
Asset-based lending1,356 846 (172)— 2,030 
Factoring5,757 (937)(170)284 4,934 
Lease financing1,189 1,127 (1,082)9 1,243 
Insurance premium finance— 91 (93)2 — 
SBA/USDA3,273 1,606 (906)48 4,021 
Other commercial finance607 (223)— — 384 
Commercial finance42,576 11,183 (17,006)2,078 38,831 
Consumer finance28,669 14,984 (14,981)963 29,635 
Tax services2 27,479 (741)7,041 33,781 
Warehouse finance518 125 — — 643 
Total loans and leases71,765 53,771 (32,728)10,082 102,890 
Unfunded commitments(1)
695 156 — — 851 
Total $72,460 $53,927 $(32,728)$10,082 $103,741 
(As Restated)
Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Six Months Ended March 31, 2024
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 finance49,496 3,888 (18,924)621 35,081 
Tax services2 26,577 (1,145)6,094 31,528 
Warehouse finance377 18 — — 395 
Total loans and leases96,855 37,031 (31,186)8,582 111,282 
Unfunded commitments(1)
272 471 — — 743 
Total $97,127 $37,502 $(31,186)$8,582 $112,025 
(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)March 31, 2025September 30, 2024
Term lending$15,510 $15,491 
Asset-based lending783 — 
Factoring1,126 — 
Lease financing4,137 5,300 
SBA/USDA2,390 1,419 
Commercial finance(1)
23,946 22,210 
Total$23,946 $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 $117.5 million and $105.1 million at March 31, 2025 and at September 30, 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 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 $246.2 million and $56.0 million at March 31, 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 YearRevolving Loans and LeasesTotal
March 31, 202520252024202320222021Prior
Term lending
Pass$367,175 $492,482 $320,262 $117,245 $63,969 $47,725 $— $1,408,858 
Watch18,687 30,695 84,454 7,886 17,374 13,247 — 172,343 
Special mention1,100 54,125 5,543 607 16,579 93 — 78,047 
Substandard242 12,821 28,643 24,521 16,044 21,082 — 103,353 
Doubtful— 49 954 948 1,724 156 — 3,831 
Total387,204 590,172 439,856 151,207 115,690 82,303 — 1,766,432 
Current period charge-offs— 7,637 3,998 2,032 656 260 — 14,583 
Asset-based lending
Pass— — — — — — 294,029 294,029 
Watch— — — — — — 221,559 221,559 
Special mention— — — — — — 13,046 13,046 
Substandard— — — — — — 13,777 13,777 
Doubtful— — — — — — 72 72 
Total— — — — — — 542,483 542,483 
Current period charge-offs— — — — — — 172 172 
Factoring
Pass— — — — — — 173,851 173,851 
Watch— — — — — — 46,897 46,897 
Special mention— — — — — — 1,061 1,061 
Substandard— — — — — — 2,292 2,292 
Doubtful— — — — — — 419 419 
Total— — — — — — 224,520 224,520 
Current period charge-offs— — — — — — 170 170 
Lease financing
Pass16,997 35,768 38,520 7,522 3,118 6,254 — 108,179 
Watch1,457 3,148 2,979 1,475 1,974 1,783 — 12,816 
Special mention— — 220 — 325 — — 545 
Substandard— — 6,116 1,839 4,260 1,060 — 13,275 
Doubtful— — — — 2 39 — 41 
Total18,454 38,916 47,835 10,836 9,679 9,136 — 134,856 
Current period charge-offs— — 16 — 1,005 61 — 1,082 
Insurance premium finance
Current period charge-offs— 62 31 — — — — 93 
SBA/USDA
Pass100,469 102,236 172,239 161,572 18,827 48,008 — 603,351 
Watch903 6,218 118 9,791 1,000 12,955 — 30,985 
Special mention— — — 2,548 482 1,787 — 4,817 
Substandard70 2,291 18,115 14,042 2,875 24,546 — 61,939 
Doubtful— — 376 55 55 158 — 644 
Total101,442 110,745 190,848 188,008 23,239 87,454 — 701,736 
Current period charge-offs— — 171 — — 735 — 906 
Other commercial finance
Pass625 62,895 2,150 127 12,181 66,083 — 144,061 
Watch— — 2,447 — — — — 2,447 
Substandard— — 479 — 7,741 — — 8,220 
Total625 62,895 5,076 127 19,922 66,083 — 154,728 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 643,124 643,124 
Total— — — — — — 643,124 643,124 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass485,266 693,381 533,171 286,466 98,095 168,070 1,111,004 3,375,453 
Watch21,047 40,061 89,998 19,152 20,348 27,985 268,456 487,047 
Special mention1,100 54,125 5,763 3,155 17,386 1,880 14,107 97,516 
Substandard312 15,112 53,353 40,402 30,920 46,688 16,069 202,856 
Doubtful— 49 1,330 1,003 1,781 353 491 5,007 
Total$507,725 $802,728 $683,615 $350,178 $168,530 $244,976 $1,410,127 $4,167,879 
Current period charge-offs$— $7,699 $4,216 $2,032 $1,661 $1,056 $342 $17,006 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
September 30, 202420242023202220212020Prior
Term lending
Pass$548,597 $398,832 $117,180 $77,585 $42,950 $24,166 $— $1,209,310 
Watch47,765 52,317 34,964 31,025 2,720 2,312 — 171,103 
Special mention44,617 3,106 9,121 14,772 7,238 2 — 78,856 
Substandard9,798 24,187 18,537 11,660 18,894 2,631 — 85,707 
Doubtful4,314 1,465 2,247 758 114 767 — 9,665 
Total655,091 479,907 182,049 135,800 71,916 29,878 — 1,554,641 
Current period charge-offs114 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
Pass44,883 48,851 12,862 7,101 7,938 1,733 — 123,368 
Watch1,837 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 
Total46,720 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-offs86 890 173 — — — — 1,149 
SBA/USDA
Pass60,636 171,136 179,490 20,825 28,588 39,319 — 499,994 
Watch5,244 6,967 — 639 10 3,026 — 15,886 
Special mention— — — 156 — 363 — 519 
Substandard1,037 15,923 12,158 2,003 9,519 11,134 — 51,774 
Doubtful— 185 55 55 62 98 — 455 
Total66,917 194,211 191,703 23,678 38,179 53,940 — 568,628 
Current period charge-offs— 549 79 — 127 — — 755 
Other commercial finance
Pass73,330 2,210 6,685 12,351 1,274 70,203 — 166,053 
Watch— 2,480 — — — — — 2,480 
Substandard— 508 — 16,923 — — — 17,431 
Total73,330 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
Pass727,446 621,029 316,217 117,862 80,750 135,421 1,043,551 3,042,276 
Watch54,846 65,301 35,334 37,928 4,092 5,378 283,791 486,670 
Special mention44,617 3,356 9,121 14,928 7,412 365 13,458 93,257 
Substandard10,835 47,309 33,418 33,303 30,482 14,368 11,227 180,942 
Doubtful4,314 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 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
March 31, 2025
Loans held for sale$— $— $— $— $45,767 $45,767 $— $— $— 
Term lending23,308 9,380 10,724 43,412 1,723,020 1,766,432 7 23,080 23,087 
Asset-based lending— — — — 542,483 542,483 — 719 719 
Factoring— — — — 224,520 224,520 — 1,613 1,613 
Lease financing13,318 468 4,159 17,945 116,911 134,856 — 4,689 4,689 
SBA/USDA4,535 5,085 3,390 13,010 688,726 701,736 1,352 5,948 7,300 
Other commercial finance— — — — 154,728 154,728 — — — 
Commercial finance41,161 14,933 18,273 74,367 3,450,388 3,524,755 1,359 36,049 37,408 
Consumer finance3,922 2,769 2,398 9,089 237,113 246,202 2,398 — 2,398 
Tax services1,036 — — 1,036 54,937 55,973 — — — 
Warehouse finance— — — — 643,124 643,124 — — — 
Total loans and leases held for investment46,119 17,702 20,671 84,492 4,385,562 4,470,054 3,757 36,049 39,806 
Total loans and leases$46,119 $17,702 $20,671 $84,492 $4,431,329 $4,515,821 $3,757 $36,049 $39,806 
September 30, 2024
Loans held for sale$2,266 $1,361 $1,050 $4,677 $687,011 $691,688 $1,050 $— $1,050 
Term lending19,776 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 financing3,605 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 finance23,381 7,671 19,975 51,027 3,244,572 3,295,599 2,314 26,412 28,726 
Consumer finance3,962 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 investment27,343 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 YearRevolving Loans and LeasesTotalNonaccrual with No ACL
March 31, 202520252024202320222021Prior
Term lending$— $1,027 $3,058 $4,559 $11,552 $2,884 $— $23,080 $8,109 
Asset-based lending— — — — — — 719 719 — 
Factoring— — — — — — 1,613 1,613 — 
Lease financing— — 454 — 3,488 747 — 4,689 4,137 
SBA/USDA— 3,547 1,504 411 83 403 — 5,948 — 
Commercial finance— 4,574 5,016 4,970 15,123 4,034 2,332 36,049 12,246 
Total nonaccrual loans and leases$— $4,574 $5,016 $4,970 $15,123 $4,034 $2,332 $36,049 $12,246 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
September 30, 202420242023202220212020Prior
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 finance9,281 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 YearRevolving Loans and LeasesTotal
March 31, 202520252024202320222021Prior
Term lending$— $— $— $— $— $7 $— $7 
SBA/USDA— — 1,352 — — — — 1,352 
Commercial finance— — 1,352 — — 7 — 1,359 
Consumer finance266 896 1,037 190 9 — — 2,398 
Total loans and leases held for investment266 896 2,389 190 9 7 — 3,757 
Total 90 days or more delinquent and accruing$266 $896 $2,389 $190 $9 $7 $— $3,757 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
September 30, 202420242023202220212020Prior
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 finance736 1,841 388 88 — — — 3,053 
Tax services8,733 — — — — — — 8,733 
Total loans and leases held for investment9,469 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 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)2025202420252024
Term lending$27,521 $18,999 $25,365 $18,209 
Asset-based lending530 82 555 4,896 
Factoring1,398 5,745 831 3,463 
Lease financing4,887 1,639 3,226 1,631 
SBA/USDA3,096 2,329 2,498 1,908 
Commercial finance37,432 28,794 32,475 30,107 
Total loans and leases$37,432 $28,794 $32,475 $30,107 

The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2025 and 2024 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2025 were $5.9 million and $9.1 million, respectively, in the commercial finance loan portfolio. The types of modifications granted were term extensions. 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.

During the six months ended March 31, 2025, the Company had $6.1 million of commercial finance loans where a modification was granted in the previous 12 months in which there was a payment default. As of March 31, 2025, no modifications granted during the current six month period were in the 60-89 days past due category. During the six months ended March 31, 2024, the Company had no modifications granted in the previous 12 months in which there was a payment default.