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LOANS AND LEASES, NET
 6 Months Ended
Mar. 31, 2026
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, 2026September 30, 2025
Term lending$2,501,855 $2,302,540 
Asset-based lending660,220 593,265 
Factoring213,269 217,501 
Lease financing126,902 149,236 
SBA/USDA536,637 511,488 
Other commercial finance73,694 149,939 
Commercial finance4,112,577 3,923,969 
Consumer finance90,912 93,319 
Tax services60,191 2,532 
Warehouse finance604,642 645,186 
Total loans and leases4,868,322 4,665,006 
Net deferred loan origination costs (fees)(1,157)(98)
Total gross loans and leases4,867,165 4,664,908 
Allowance for credit losses(98,279)(53,319)
Total loans and leases, net$4,768,886 $4,611,589 

During the six months ended March 31, 2026 and 2025, the Company originated $1.80 billion and $1.38 billion of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $1.96 billion and a $7.7 million gain on sale during the six months ended March 31, 2026. 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. Gains and losses from the sale of loans and leases are included in secondary market revenue on the Condensed Consolidated Statements of Operations.
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)2026202520262025
Loans Purchased
Loans held for investment:
Commercial finance$— $— $— $19,540 
Warehouse finance20,344 27,292 53,267 147,111 
Total purchases$20,344 $27,292 $53,267 $166,651 
Loans Sold
Loans held for sale:
Commercial finance$69,989 $182,667 $128,552 $248,469 
Consumer finance713,728 491,761 1,831,489 1,044,391 
Total sales$783,717 $674,428 $1,960,041 $1,292,860 

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

(Dollars in thousands)March 31, 2026September 30, 2025
Minimum lease payments receivable$131,981 $157,271 
Unguaranteed residual assets6,391 6,785 
Unamortized initial direct costs44 68 
Unearned income(11,470)(14,820)
Total net investment in direct financing and sales-type leases$126,946 $149,304 

The components of total lease income were as follows:

Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2026202520262025
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$1,973 $2,800 $3,921 $5,987 
Leasing and equipment finance noninterest income
Lease income from operating lease payments10,608 12,930 21,892 26,379 
Other(1)
1,962 1,139 3,545 2,446 
Total leasing and equipment finance noninterest income12,570 14,069 25,437 28,825 
Total lease income$14,543 $16,869 $29,358 $34,812 
(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, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026$24,553 
202761,933 
202824,672 
202913,245 
20305,752 
Thereafter1,826 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases131,981 
Third-party residual value guarantees— 
Total carrying amount of minimum lease payments for direct financing and sales-type leases$131,981 

The Company did not record any contingent rental income from direct financing and sales-type leases in the six months ended March 31, 2026.

A number of factors that have affected the economic environment over the past few years have continued into 2026, including economic uncertainty, inflation, geopolitical conflict and tensions, and increased interest rates, with the Federal Reserve beginning to lower the target federal funds rate at the end of 2024. 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, as well as geopolitical conflicts (including those in Iran and Ukraine). 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, 2026
Allowance for credit losses:
Term lending$28,771 $11,486 $(7,180)$667 $33,744 
Asset-based lending9,694 8,351 (6,085)9 11,969 
Factoring3,784 1,073 — 117 4,974 
Lease financing1,037 (190)(15)6 838 
SBA/USDA4,709 1,495 (1,981)12 4,235 
Other commercial finance102 (66)— — 36 
Commercial finance48,097 22,149 (15,261)811 55,796 
Consumer finance9,040 (1,312)(1,506)367 6,589 
Tax services1,061 24,476 — 9,752 35,289 
Warehouse finance642 (37)— — 605 
Total loans and leases58,840 45,276 (16,767)10,930 98,279 
Unfunded commitments(1)
846 340 — — 1,186 
Total $59,686 $45,616 $(16,767)$10,930 $99,465 
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 
(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, 2026
Allowance for credit losses:
Term lending$28,345 $10,226 $(8,261)$3,434 $33,744 
Asset-based lending7,650 10,389 (6,085)15 11,969 
Factoring4,319 536 — 119 4,974 
Lease financing1,040 (228)(37)63 838 
SBA/USDA4,807 1,868 (2,457)17 4,235 
Other commercial finance90 (54)— — 36 
Commercial finance46,251 22,737 (16,840)3,648 55,796 
Consumer finance6,422 2,810 (3,334)691 6,589 
Tax services— 23,078 — 12,211 35,289 
Warehouse finance646 (41)— — 605 
Total loans and leases53,319 48,584 (20,174)16,550 98,279 
Unfunded commitments(1)
924 262 — — 1,186 
Total $54,243 $48,846 $(20,174)$16,550 $99,465 
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 
(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, 2026September 30, 2025
Term lending$45,471 $33,042 
Asset-based lending21,973 24,273 
Factoring1,984 — 
Lease financing3,962 3,985 
SBA/USDA666 6,147 
Commercial finance(1)
74,056 67,447 
Total$74,056 $67,447 
(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 $98.0 million and $107.7 million at March 31, 2026 and at September 30, 2025, 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 Office of the Comptroller of the Currency (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 $90.9 million and $60.2 million at March 31, 2026, respectively, and $93.3 million and $2.5 million at September 30, 2025, 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, 202620262025202420232022Prior
Term lending
Pass$516,856 $637,643 $217,616 $228,868 $81,938 $76,235 $— $1,759,156 
Watch43,756 166,651 207,328 65,311 2,758 28,361 — 514,165 
Special mention— 51,299 11,783 801 1,096 4,755 — 69,734 
Substandard2,100 21,135 26,530 62,344 11,996 26,233 — 150,338 
Doubtful— — 362 818 2,962 4,320 — 8,462 
Total562,712 876,728 463,619 358,142 100,750 139,904 — 2,501,855 
Current period charge-offs— — 2,375 988 1,240 3,658 — 8,261 
Asset-based lending
Pass— — — — — — 299,174 299,174 
Watch— — — — — — 304,962 304,962 
Special mention— — — — — — 31,163 31,163 
Substandard— — — — — — 17,135 17,135 
Doubtful— — — — — — 7,786 7,786 
Total— — — — — — 660,220 660,220 
Current period charge-offs— — — — — — 6,085 6,085 
Factoring
Pass— — — — — — 166,314 166,314 
Watch— — — — — — 42,399 42,399 
Special mention— — — — — — 1,772 1,772 
Substandard— — — — — — 1,427 1,427 
Doubtful— — — — — — 1,357 1,357 
Total— — — — — — 213,269 213,269 
Current period charge-offs— — — — — — — — 
Lease financing
Pass14,553 38,223 15,200 30,390 1,475 2,296 — 102,137 
Watch456 3,980 4,474 389 — 27 — 9,326 
Special mention— — 254 — 302 299 — 855 
Substandard— 2,712 — 5,036 908 5,883 — 14,539 
Doubtful45 — — — — — — 45 
Total15,054 44,915 19,928 35,815 2,685 8,505 — 126,902 
Current period charge-offs— — — 15 — 22 — 37 
SBA/USDA
Pass70,432 88,391 29,474 71,200 109,248 49,065 — 417,810 
Watch333 2,697 31,879 — 13,384 3,102 — 51,395 
Special mention355 952 1,785 — — 299 — 3,391 
Substandard— 3,459 3,822 11,278 11,137 33,711 — 63,407 
Doubtful— — 538 — — 96 — 634 
Total71,120 95,499 67,498 82,478 133,769 86,273 — 536,637 
Current period charge-offs— 224 668 1,565 — — — 2,457 
Other commercial finance
Pass1,950 7,760 9,491 — — 54,070 — 73,271 
Substandard— — — 423 — — — 423 
Total1,950 7,760 9,491 423 — 54,070 — 73,694 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 604,642 604,642 
Total— — — — — — 604,642 604,642 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass603,791 772,017 271,781 330,458 192,661 181,666 1,070,130 3,422,504 
Watch44,545 173,328 243,681 65,700 16,142 31,490 347,361 922,247 
Special mention355 52,251 13,822 801 1,398 5,353 32,935 106,915 
Substandard2,100 27,306 30,352 79,081 24,041 65,827 18,562 247,269 
Doubtful45 — 900 818 2,962 4,416 9,143 18,284 
Total$650,836 $1,024,902 $560,536 $476,858 $237,204 $288,752 $1,478,131 $4,717,219 
Current period charge-offs$— $224 $3,043 $2,568 $1,240 $3,680 $6,085 $16,840 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
September 30, 202520252024202320222021Prior
Term lending
Pass$935,599 $399,968 $298,678 $99,820 $43,216 $35,971 $— $1,813,252 
Watch65,674 71,326 68,737 7,222 28,882 13,357 — 255,198 
Special mention56 68,989 3,762 826 11,078 65 — 84,776 
Substandard29,792 24,666 37,845 14,137 16,050 19,995 — 142,485 
Doubtful— 564 774 3,854 1,615 22 — 6,829 
Total1,031,121 565,513 409,796 125,859 100,841 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
Pass43,710 20,259 36,483 2,270 1,089 4,439 — 108,250 
Watch13,587 5,181 13 635 1,059 — — 20,475 
Special mention— 941 223 — 181 44 — 1,389 
Substandard7,190 — 5,375 1,377 4,088 905 — 18,935 
Doubtful— — 150 — 37 — — 187 
Total64,487 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
Pass79,928 61,063 93,459 136,075 19,674 30,962 — 421,161 
Watch2,651 5,117 136 12,477 691 3,598 — 24,670 
Special mention2,682 350 — — 326 1,038 — 4,396 
Substandard315 3,176 12,721 7,678 2,235 30,588 — 56,713 
Doubtful221 2,687 1,592 — — 48 — 4,548 
Total85,797 72,393 107,908 156,230 22,926 66,234 — 511,488 
Current period charge-offs74 882 537 90 55 1,011 — 2,649 
Other commercial finance
Pass8,770 63,200 — 134 12,471 62,495 — 147,070 
Watch— — 2,418 — — — — 2,418 
Substandard— — 451 — — — — 451 
Total8,770 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
Pass1,068,007 544,490 428,620 238,299 76,450 133,867 1,125,666 3,615,399 
Watch81,912 81,624 71,304 20,334 30,632 16,955 269,759 572,520 
Special mention2,738 70,280 3,985 826 11,585 1,147 32,096 122,657 
Substandard37,297 27,842 56,392 23,192 22,373 51,488 26,267 244,851 
Doubtful221 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 
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, 2026
Loans held for sale$— $— $— $— $53,072 $53,072 $— $— $— 
Term lending86,289 3,131 52,847 142,267 2,359,588 2,501,855 25,790 43,619 69,409 
Asset-based lending— 2,401 16,079 18,480 641,740 660,220 — 21,333 21,333 
Factoring— — — — 213,269 213,269 — 2,783 2,783 
Lease financing3,244 — 3,942 7,186 119,716 126,902 — 4,021 4,021 
SBA/USDA1,604 4,306 15,923 21,833 514,804 536,637 60 19,267 19,327 
Other commercial finance— — — — 73,694 73,694 — 423 423 
Commercial finance91,137 9,838 88,791 189,766 3,922,811 4,112,577 25,850 91,446 117,296 
Consumer finance985 492 417 1,894 89,018 90,912 417 — 417 
Tax services1,454 — — 1,454 58,737 60,191 — — — 
Warehouse finance— — — — 604,642 604,642 — — — 
Total loans and leases held for investment93,576 10,330 89,208 193,114 4,675,208 4,868,322 26,267 91,446 117,713 
Total loans and leases$93,576 $10,330 $89,208 $193,114 $4,728,280 $4,921,394 $26,267 $91,446 $117,713 
September 30, 2025
Loans held for sale$2,319 $1,860 $1,521 $5,700 $173,721 $179,421 $1,521 $— $1,521 
Term lending29,283 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 financing2,222 316 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 finance31,505 18,061 53,833 103,399 3,820,570 3,923,969 12,900 81,416 94,316 
Consumer finance909 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 investment32,414 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 
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, 202620262025202420232022Prior
Term lending$— $719 $3,965 $26,582 $1,815 $10,538 $— $43,619 $26,313 
Asset-based lending— — — — — — 21,333 21,333 3,281 
Factoring— — — — — — 2,783 2,783 438 
Lease financing— — — 50 — 3,971 — 4,021 3,962 
SBA/USDA— 1,720 4,193 13,307 — 47 — 19,267 — 
Other commercial finance— — — 423 — — — 423 — 
Commercial finance— 2,439 8,158 40,362 1,815 14,556 24,116 91,446 33,994 
Total nonaccrual loans and leases$— $2,439 $8,158 $40,362 $1,815 $14,556 $24,116 $91,446 $33,994 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
September 30, 202520252024202320222021Prior
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/USDA221 4,605 7,675 — 22 48 — 12,571 — 
Commercial finance221 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 
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, 202620262025202420232022Prior
Loans held for sale$— $— $— $— $— $— $— $— 
Term lending— — — 24,896 6 888 — 25,790 
SBA/USDA— — 60 — — — — 60 
Commercial finance— — 60 24,896 6 888 — 25,850 
Consumer finance5 161 163 80 8 — — 417 
Total loans and leases held for investment5 161 223 24,976 14 888 — 26,267 
Total 90 days or more delinquent and accruing$5 $161 $223 $24,976 $14 $888 $— $26,267 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
September 30, 202520252024202320222021Prior
Loans held for sale$521 $835 $150 $15 $— $— $— $1,521 
Term lending— 2,942 — — — 1,478 — 4,420 
Lease financing277 — — 789 1 — — 1,067 
SBA/USDA1,139 495 5,683 — — 96 — 7,413 
Commercial finance1,416 3,437 5,683 789 1 1,574 — 12,900 
Consumer finance241 348 180 44 13 — — 826 
Tax services2,477 — — — — — — 2,477 
Total loans and leases held for investment4,134 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 

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)2026202520262025
Term lending$44,403 $27,521 $43,974 $25,365 
Asset-based lending21,561 530 24,002 555 
Factoring1,578 1,398 1,410 831 
Lease financing4,074 4,887 4,140 3,226 
SBA/USDA21,777 3,096 18,572 2,498 
Other commercial finance538 — 512 — 
Commercial finance93,931 37,432 92,610 32,475 
Total loans and leases$93,931 $37,432 $92,610 $32,475 

The recognized interest income on the Company's nonaccrual loans and leases for the three and six months ended March 31, 2026 and 2025 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and six months ended March 31, 2026 were $0.5 million and $3.0 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, 2025 were $5.9 million and $9.1 million, respectively, in the commercial finance loan portfolio.
During the six months ended March 31, 2026, the Company had $2.1 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, 2026, $2.1 million of modifications granted during the current six month period were in the 30-59 days past due category. 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 six months ended March 31, 2025 were in the 60-89 days past due category.