v3.26.1
LOANS AND LEASES, NET
 9 Months Ended
Jun. 30, 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)June 30, 2026September 30, 2025
Term lending$2,666,977 $2,302,540 
Asset-based lending697,687 593,265 
Factoring220,026 217,501 
Lease financing120,583 149,236 
SBA/USDA567,986 511,488 
Other commercial finance49,510 149,939 
Commercial finance4,322,769 3,923,969 
Consumer finance99,430 93,319 
Tax services34,770 2,532 
Warehouse finance647,611 645,186 
Total loans and leases5,104,580 4,665,006 
Net deferred loan origination costs (fees)3,261 (98)
Total gross loans and leases5,107,841 4,664,908 
Allowance for credit losses(109,780)(53,319)
Total loans and leases, net$4,998,061 $4,611,589 

During the nine months ended June 30, 2026 and 2025, the Company originated $2.75 billion and $1.93 billion of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $2.91 billion and a $21.7 million gain on sale during the nine months ended June 30, 2026. 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. 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 June 30,Nine Months Ended June 30,
(Dollars in thousands)2026202520262025
Loans Purchased
Loans held for investment:
Commercial finance$— $1,271 $— $20,811 
Warehouse finance66,380 25,873 119,647 172,984 
Total purchases$66,380 $27,144 $119,647 $193,795 
Loans Sold
Loans held for sale:
Commercial finance$144,109 $100,909 $272,661 $349,378 
Consumer finance808,442 505,779 2,639,931 1,811,016 
Total sales$952,551 $606,688 $2,912,592 $2,160,394 

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

(Dollars in thousands)June 30, 2026September 30, 2025
Minimum lease payments receivable$125,185 $157,271 
Unguaranteed residual assets6,313 6,785 
Unamortized initial direct costs40 68 
Unearned income(10,915)(14,820)
Total net investment in direct financing and sales-type leases$120,623 $149,304 

The components of total lease income were as follows:

Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2026202520262025
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$1,630 $2,444 $5,551 $8,431 
Leasing and equipment finance noninterest income
Lease income from operating lease payments9,281 12,751 31,173 39,130 
Other(1)
333 747 3,878 3,193 
Total leasing and equipment finance noninterest income9,614 13,498 35,051 42,323 
Total lease income$11,244 $15,942 $40,602 $50,754 
(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, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026$12,834 
202763,024 
202825,806 
202914,367 
20306,483 
Thereafter2,671 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases125,185 
Third-party residual value guarantees— 
Total carrying amount of minimum lease payments for direct financing and sales-type leases$125,185 

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 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 lowering the target federal funds rate at the end of 2024 and the end of 2025. 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 June 30, 2026
Allowance for credit losses:
Term lending$33,744 $13,486 $(6,178)$419 $41,471 
Asset-based lending11,969 7,445 (8,617)19 10,816 
Factoring4,974 9,392 (1,490)29 12,905 
Lease financing838 232 — 29 1,099 
SBA/USDA4,235 3,276 (124)23 7,410 
Other commercial finance36 64 — — 100 
Commercial finance55,796 33,895 (16,409)519 73,801 
Consumer finance6,589 (373)(1,303)285 5,198 
Tax services35,289 (6,035)(1,000)1,879 30,133 
Warehouse finance605 43 — — 648 
Total loans and leases98,279 27,530 (18,712)2,683 109,780 
Unfunded commitments(1)
1,186 779 — — 1,965 
Total $99,465 $28,309 $(18,712)$2,683 $111,745 
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 
(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, 2026
Allowance for credit losses:
Term lending$28,345 $23,712 $(14,439)$3,853 $41,471 
Asset-based lending7,650 17,834 (14,702)34 10,816 
Factoring4,319 9,928 (1,490)148 12,905 
Lease financing1,040 4 (37)92 1,099 
SBA/USDA4,807 5,144 (2,581)40 7,410 
Other commercial finance90 10 — — 100 
Commercial finance46,251 56,632 (33,249)4,167 73,801 
Consumer finance6,422 2,437 (4,637)976 5,198 
Tax services— 17,043 (1,000)14,090 30,133 
Warehouse finance646 2 — — 648 
Total loans and leases53,319 76,114 (38,886)19,233 109,780 
Unfunded commitments(1)
924 1,041 — — 1,965 
Total $54,243 $77,155 $(38,886)$19,233 $111,745 
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 
(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, 2026September 30, 2025
Term lending$70,295 $33,042 
Asset-based lending24,169 24,273 
Factoring17,663 — 
Lease financing3,467 3,985 
SBA/USDA3,860 6,147 
Other commercial finance414 — 
Commercial finance(1)
119,868 67,447 
Total$119,868 $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 $92.4 million and $107.7 million at June 30, 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 $99.4 million and $34.8 million at June 30, 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
June 30, 202620262025202420232022Prior
Term lending
Pass$824,199 $383,074 $186,282 $138,913 $66,517 $62,129 $— $1,661,114 
Watch50,369 241,902 79,598 17,860 4,177 29,773 — 423,679 
Special mention— 89,136 155,932 48,696 792 7,037 — 301,593 
Substandard3,037 150,890 19,062 52,113 11,611 26,910 — 263,623 
Doubtful— 270 1,291 11,969 3,405 33 — 16,968 
Total877,605 865,272 442,165 269,551 86,502 125,882 — 2,666,977 
Current period charge-offs— — 5,106 1,048 1,639 6,646 — 14,439 
Asset-based lending
Pass— — — — — — 327,307 327,307 
Watch— — — — — — 329,098 329,098 
Special mention— — — — — — 14,801 14,801 
Substandard— — — — — — 22,845 22,845 
Doubtful— — — — — — 3,636 3,636 
Total— — — — — — 697,687 697,687 
Current period charge-offs— — — — — — 14,702 14,702 
Factoring
Pass— — — — — — 159,440 159,440 
Watch— — — — — — 33,997 33,997 
Special mention— — — — — — 8,462 8,462 
Substandard— — — — — — 18,127 18,127 
Total— — — — — — 220,026 220,026 
Current period charge-offs— — — — — — 1,490 1,490 
Lease financing
Pass16,676 34,673 13,898 27,993 1,156 2,021 — 96,417 
Watch1,769 3,559 3,749 230 — 72 — 9,379 
Special mention— — 234 — 115 96 — 445 
Substandard— 3,145 — 4,799 670 5,689 — 14,303 
Doubtful39 — — — — — — 39 
Total18,484 41,377 17,881 33,022 1,941 7,878 — 120,583 
Current period charge-offs— — — 15 — 22 — 37 
SBA/USDA
Pass112,711 82,731 29,128 70,406 108,798 34,369 — 438,143 
Watch1,878 5,362 31,673 — 19,274 3,552 — 61,739 
Special mention204 639 389 — — 15,348 — 16,580 
Substandard355 5,525 5,043 11,658 5,054 23,319 — 50,954 
Doubtful— 310 164 — — 96 — 570 
Total115,148 94,567 66,397 82,064 133,126 76,684 — 567,986 
Current period charge-offs— 224 792 1,565 — — — 2,581 
Other commercial finance
Pass1,900 7,760 — — — 39,441 — 49,101 
Substandard— — — 409 — — — 409 
Total1,900 7,760 — 409 — 39,441 — 49,510 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 647,611 647,611 
Total— — — — — — 647,611 647,611 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass955,486 508,238 229,308 237,312 176,471 137,960 1,134,358 3,379,133 
Watch54,016 250,823 115,020 18,090 23,451 33,397 363,095 857,892 
Special mention204 89,775 156,555 48,696 907 22,481 23,263 341,881 
Substandard3,392 159,560 24,105 68,979 17,335 55,918 40,972 370,261 
Doubtful39 580 1,455 11,969 3,405 129 3,636 21,213 
Total$1,013,137 $1,008,976 $526,443 $385,046 $221,569 $249,885 $1,565,324 $4,970,380 
Current period charge-offs$— $224 $5,898 $2,628 $1,639 $6,668 $16,192 $33,249 

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
June 30, 2026
Loans held for sale$— $12,420 $— $12,420 $84,868 $97,288 $— $— $— 
Term lending54,938 77,319 137,016 269,273 2,397,704 2,666,977 13,628 189,859 203,487 
Asset-based lending— — 9,064 9,064 688,623 697,687 — 22,771 22,771 
Factoring— — — — 220,026 220,026 — 18,186 18,186 
Lease financing876 2,187 3,517 6,580 114,003 120,583 — 3,945 3,945 
SBA/USDA917 7,740 22,115 30,772 537,214 567,986 2,083 20,195 22,278 
Other commercial finance— — — — 49,510 49,510 — 409 409 
Commercial finance56,731 87,246 171,712 315,689 4,007,080 4,322,769 15,711 255,365 271,076 
Consumer finance1,425 448 3,998 5,871 93,559 99,430 3,998 — 3,998 
Tax services— 34,770 — 34,770 — 34,770 — — — 
Warehouse finance— — — — 647,611 647,611 — — — 
Total loans and leases held for investment58,156 122,464 175,710 356,330 4,748,250 5,104,580 19,709 255,365 275,074 
Total loans and leases$58,156 $134,884 $175,710 $368,750 $4,833,118 $5,201,868 $19,709 $255,365 $275,074 
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
June 30, 202620262025202420232022Prior
Term lending$— $119,502 $2,217 $51,824 $1,380 $14,936 $— $189,859 $17,490 
Asset-based lending— — — — — — 22,771 22,771 11,895 
Factoring— — — — — — 18,186 18,186 — 
Lease financing— — — — — 3,945 — 3,945 3,468 
SBA/USDA— — 7,185 12,867 — 143 — 20,195 1,692 
Other commercial finance— — — 409 — — — 409 409 
Commercial finance— 119,502 9,402 65,100 1,380 19,024 40,957 255,365 34,954 
Total nonaccrual loans and leases$— $119,502 $9,402 $65,100 $1,380 $19,024 $40,957 $255,365 $34,954 

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
June 30, 202620262025202420232022Prior
Term lending$— $— $11,187 $1,553 $— $888 $— $13,628 
SBA/USDA355 979 172 — 328 249 — 2,083 
Commercial finance355 979 11,359 1,553 328 1,137 — 15,711 
Consumer finance3,454 314 177 36 13 4 — 3,998 
Total loans and leases held for investment3,809 1,293 11,536 1,589 341 1,141 — 19,709 
Total 90 days or more delinquent and accruing$3,809 $1,293 $11,536 $1,589 $341 $1,141 $— $19,709 

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 June 30,Nine Months Ended June 30,
(Dollars in thousands)2026202520262025
Term lending$92,218 $30,308 $60,055 $27,012 
Asset-based lending20,332 6,996 22,779 2,970 
Factoring7,803 1,350 3,541 1,004 
Lease financing3,947 4,514 4,075 3,655 
SBA/USDA19,581 7,005 18,908 4,000 
Other commercial finance413 — 470 — 
Commercial finance144,294 50,173 109,828 38,641 
Total loans and leases$144,294 $50,173 $109,828 $38,641 

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2026 and 2025 was not significant.

Modifications made to borrowers experiencing financial difficulty during the three and nine months ended June 30, 2026 were none 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 nine months ended June 30, 2025 were none and $9.1 million, respectively, in the commercial finance loan portfolio.
During the nine months ended June 30, 2026, the Company had $3.0 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, 2026, $0.5 million and $2.5 million of modifications granted during the current nine month period were in the 30-59 days past due category and the over 89 days past due category, 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 nine months ended June 30, 2025 were in the 60-89 days past due category.