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LOANS AND LEASES, NET
 9 Months Ended
Jun. 30, 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)June 30, 2025September 30, 2024
Term lending$2,003,699 $1,554,641 
Asset-based lending610,852 471,897 
Factoring241,024 362,295 
Lease financing134,214 152,174 
SBA/USDA674,902 568,628 
Other commercial finance153,321 185,964 
Commercial finance3,818,012 3,295,599 
Consumer finance226,380 248,800 
Tax services37,419 8,825 
Warehouse finance664,110 517,847 
Total loans and leases4,745,921 4,071,071 
Net deferred loan origination costs (fees)(2,597)4,124 
Total gross loans and leases4,743,324 4,075,195 
Allowance for credit losses(105,995)(71,765)
Total loans and leases, net$4,637,329 $4,003,430 

During the nine months ended June 30, 2025 and 2024, the Company originated $1.93 billion and $1.43 billion of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $2.16 billion and a $26.9 million gain on sale during the nine months ended June 30, 2025. 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. 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 June 30,Nine Months Ended June 30,
(Dollars in thousands)2025202420252024
Loans Purchased
Loans held for investment:
Commercial finance$1,271 $11,000 $20,811 $11,000 
Warehouse finance25,873 55,821 172,984 218,912 
Total purchases$27,144 $66,821 $193,795 $229,912 
Loans Sold
Loans held for sale:
Commercial finance$100,909 $24,173 $349,378 $49,218 
Consumer finance505,779 474,991 1,811,016 1,418,944 
Total sales$606,688 $499,164 $2,160,394 $1,468,162 

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

(Dollars in thousands)June 30, 2025September 30, 2024
Minimum lease payments receivable$144,134 $162,757 
Unguaranteed residual assets7,284 9,300 
Unamortized initial direct costs72 102 
Unearned income(17,204)(19,883)
Total net investment in direct financing and sales-type leases$134,286 $152,276 

The components of total lease income were as follows:

Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2025202420252024
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$2,444 $2,908 $8,431 $8,869 
Leasing and equipment finance noninterest income
Lease income from operating lease payments12,751 13,589 39,130 40,449 
Other(1)
747 1,051 3,193 2,644 
Total leasing and equipment finance noninterest income13,498 14,640 42,323 43,093 
Total lease income$15,942 $17,548 $50,754 $51,962 
(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, 2025 were as follows:

(Dollars in thousands)
Remaining in 2025$15,714 
202649,550 
202735,162 
202822,288 
202913,579 
Thereafter7,841 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases144,134 
Third-party residual value guarantees— 
Total carrying amount of minimum lease payments for direct financing and sales-type leases$144,134 

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 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:

(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Three Months Ended June 30, 2025
Allowance for credit losses:
Term lending$26,219 $3,514 $(1,333)$976 $29,376 
Asset-based lending2,030 5,844 (539)— 7,335 
Factoring4,934 516 (464)391 5,377 
Lease financing1,243 219 (344)12 1,130 
SBA/USDA4,021 1,427 (421)1 5,028 
Other commercial finance384 (195)— — 189 
Commercial finance38,831 11,325 (3,101)1,380 48,435 
Consumer finance29,635 2,613 (6,381)600 26,467 
Tax services33,781 (4,728)(554)1,930 30,429 
Warehouse finance643 21 — — 664 
Total loans and leases102,890 9,231 (10,036)3,910 105,995 
Unfunded commitments(1)
851 47 — — 898 
Total $103,741 $9,278 $(10,036)$3,910 $106,893 
(As Restated)
Three Months Ended June 30, 2024Beginning 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 finance35,081 7,145 (10,009)351 32,568 
Tax services31,528 (3,285)(820)1,230 28,653 
Warehouse finance395 55 — — 450 
Total loans and leases111,282 11,687 (18,565)2,361 106,765 
Unfunded commitments(1)
743 240 — — 983 
Total $112,025 $11,927 $(18,565)$2,361 $107,748 
(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
Nine Months Ended June 30, 2025
Allowance for credit losses:
Term lending$30,394 $12,187 $(15,916)$2,711 $29,376 
Asset-based lending1,356 6,690 (711)— 7,335 
Factoring5,757 (421)(634)675 5,377 
Lease financing1,189 1,346 (1,426)21 1,130 
Insurance premium finance— 91 (93)2 — 
SBA/USDA3,273 3,033 (1,327)49 5,028 
Other commercial finance607 (418)— — 189 
Commercial finance42,576 22,508 (20,107)3,458 48,435 
Consumer finance28,669 17,597 (21,362)1,563 26,467 
Tax services2 22,751 (1,295)8,971 30,429 
Warehouse finance518 146 — — 664 
Total loans and leases71,765 63,002 (42,764)13,992 105,995 
Unfunded commitments(1)
695 203 — — 898 
Total $72,460 $63,205 $(42,764)$13,992 $106,893 
(As Restated)
Nine Months Ended June 30, 2024Beginning 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 finance49,496 11,033 (28,932)971 32,568 
Tax services2 23,292 (1,965)7,324 28,653 
Warehouse finance377 73 — — 450 
Total loans and leases96,855 48,718 (49,750)10,942 106,765 
Unfunded commitments(1)
272 711 — — 983 
Total $97,127 $49,429 $(49,750)$10,942 $107,748 
(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)June 30, 2025September 30, 2024
Term lending$33,789 $15,491 
Asset-based lending9,517 — 
Factoring1,108 — 
Lease financing4,079 5,300 
SBA/USDA6,310 1,419 
Commercial finance(1)
54,803 22,210 
Total$54,803 $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 $111.0 million and $105.1 million at June 30, 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 $226.4 million and $37.4 million at June 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 YearRevolving Loans and LeasesTotal
June 30, 202520252024202320222021Prior
Term lending
Pass$639,497 $447,978 $307,564 $106,578 $65,242 $43,752 $— $1,610,611 
Watch32,947 49,641 77,918 7,643 17,657 11,035 — 196,841 
Special mention— 56,703 5,349 645 8,978 80 — 71,755 
Substandard1,671 19,994 40,877 20,882 14,293 20,438 — 118,155 
Doubtful— 229 776 3,647 1,572 113 — 6,337 
Total674,115 574,545 432,484 139,395 107,742 75,418 — 2,003,699 
Current period charge-offs— 7,637 4,365 2,704 851 359 — 15,916 
Asset-based lending
Pass— — — — — — 343,417 343,417 
Watch— — — — — — 249,272 249,272 
Special mention— — — — — — 7,641 7,641 
Substandard— — — — — — 5,643 5,643 
Doubtful— — — — — — 4,879 4,879 
Total— — — — — — 610,852 610,852 
Current period charge-offs— — — — — — 711 711 
Factoring
Pass— — — — — — 192,550 192,550 
Watch— — — — — — 43,120 43,120 
Special mention— — — — — — 1,624 1,624 
Substandard— — — — — — 2,387 2,387 
Doubtful— — — — — — 1,343 1,343 
Total— — — — — — 241,024 241,024 
Current period charge-offs— — — — — — 634 634 
Lease financing
Pass25,064 29,883 38,619 6,140 1,741 5,183 — 106,630 
Watch3,967 6,925 781 1,080 1,812 355 — 14,920 
Special mention— — — — 211 — — 211 
Substandard— — 5,545 1,607 4,180 970 — 12,302 
Doubtful— — 150 — 1 — — 151 
Total29,031 36,808 45,095 8,827 7,945 6,508 — 134,214 
Current period charge-offs— — 320 — 1,005 101 — 1,426 
Insurance premium finance
Current period charge-offs— 62 31 — — — — 93 
SBA/USDA
Pass71,249 102,629 171,232 155,222 18,905 39,753 — 558,990 
Watch19,885 6,217 241 9,735 998 3,779 — 40,855 
Special mention63 255 — 2,538 329 2,156 — 5,341 
Substandard612 2,048 17,463 12,553 2,864 32,471 — 68,011 
Doubtful— 884 693 — — 128 — 1,705 
Total91,809 112,033 189,629 180,048 23,096 78,287 — 674,902 
Current period charge-offs— — 171 90 55 1,011 — 1,327 
Other commercial finance
Pass8,385 62,895 2,120 127 12,122 64,771 — 150,420 
Watch— — 2,436 — — — — 2,436 
Substandard— — 465 — — — — 465 
Total8,385 62,895 5,021 127 12,122 64,771 — 153,321 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 664,110 664,110 
Total— — — — — — 664,110 664,110 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass744,195 643,385 519,535 268,067 98,010 153,459 1,200,077 3,626,728 
Watch56,799 62,783 81,376 18,458 20,467 15,169 292,392 547,444 
Special mention63 56,958 5,349 3,183 9,518 2,236 9,265 86,572 
Substandard2,283 22,042 64,350 35,042 21,337 53,879 8,030 206,963 
Doubtful— 1,113 1,619 3,647 1,573 241 6,222 14,415 
Total$803,340 $786,281 $672,229 $328,397 $150,905 $224,984 $1,515,986 $4,482,122 
Current period charge-offs$— $7,699 $4,887 $2,794 $1,911 $1,471 $1,345 $20,107 

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
June 30, 2025
Loans held for sale$— $— $— $— $49,767 $49,767 $— $— $— 
Term lending23,236 5,910 23,336 52,482 1,951,217 2,003,699 188 39,217 39,405 
Asset-based lending— — — — 610,852 610,852 — 9,517 9,517 
Factoring— — — — 241,024 241,024 — 1,730 1,730 
Lease financing2,846 1,471 5,160 9,477 124,737 134,214 918 4,286 5,204 
SBA/USDA96 5,900 8,729 14,725 660,177 674,902 2,264 6,774 9,038 
Other commercial finance— — — — 153,321 153,321 — — — 
Commercial finance26,178 13,281 37,225 76,684 3,741,328 3,818,012 3,370 61,524 64,894 
Consumer finance3,376 2,497 6,402 12,275 214,105 226,380 6,402 — 6,402 
Tax services— 37,234 — 37,234 185 37,419 — — — 
Warehouse finance— — — — 664,110 664,110 — — — 
Total loans and leases held for investment29,554 53,012 43,627 126,193 4,619,728 4,745,921 9,772 61,524 71,296 
Total loans and leases$29,554 $53,012 $43,627 $126,193 $4,669,495 $4,795,688 $9,772 $61,524 $71,296 
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
June 30, 202520252024202320222021Prior
Term lending$— $807 $13,395 $11,286 $13,537 $192 $— $39,217 $19,152 
Asset-based lending— — — — — — 9,517 9,517 — 
Factoring— — — — — — 1,730 1,730 — 
Lease financing— — 150 — 3,480 656 — 4,286 4,079 
SBA/USDA— 3,537 3,082 — 27 128 — 6,774 — 
Commercial finance— 4,344 16,627 11,286 17,044 976 11,247 61,524 23,231 
Total nonaccrual loans and leases$— $4,344 $16,627 $11,286 $17,044 $976 $11,247 $61,524 $23,231 

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
June 30, 202520252024202320222021Prior
Term lending$— $— $— $187 $— $1 $— $188 
Lease financing— 100 149 669 — — — 918 
SBA/USDA— 2,264 — — — — — 2,264 
Commercial finance— 2,364 149 856 — 1 — 3,370 
Consumer finance4,625 892 763 90 32 — — 6,402 
Total loans and leases held for investment4,625 3,256 912 946 32 1 — 9,772 
Total 90 days or more delinquent and accruing$4,625 $3,256 $912 $946 $32 $1 $— $9,772 

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 June 30,Nine Months Ended June 30,
(Dollars in thousands)2025202420252024
Term lending$30,308 $20,007 $27,012 $18,808 
Asset-based lending6,996 — 2,970 4,896 
Factoring1,350 967 1,004 2,631 
Lease financing4,514 635 3,655 1,299 
SBA/USDA7,005 2,853 4,000 2,223 
Commercial finance50,173 24,462 38,641 29,857 
Total loans and leases$50,173 $24,462 $38,641 $29,857 

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2025 and 2024 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and nine months ended June 30, 2025 were none 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 nine months ended June 30, 2024 were $6.1 million and $7.6 million in the commercial finance loan portfolio, respectively.

During the nine months ended June 30, 2025, the Company had $7.2 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, 2025, no modifications granted during the current nine month period were in the 60-89 days past due category. During the 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.