PATHWARD FINANCIAL, INC., 10-Q filed on 8/8/2023
Quarterly Report
v3.23.2
Cover Page - shares
 9 Months Ended
Jun. 30, 2023
Aug. 02, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
Document Transition Report false  
Entity File Number 0-22140  
Entity Registrant Name PATHWARD FINANCIAL, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 42-1406262  
Entity Address, Address Line One 5501 South Broadband Lane  
Entity Address, City or Town Sioux Falls  
Entity Address, State or Province SD  
Entity Address, Postal Zip Code 57108  
City Area Code 877  
Local Phone Number 497-7497  
Title of 12(b) Security Common Stock, $.01 par value  
Trading Symbol CASH  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   26,225,563
Entity Central Index Key 0000907471  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.23.2
Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
ASSETS    
Cash and cash equivalents $ 515,271 $ 388,038
Securities available for sale, at fair value 1,914,271 1,882,869
Securities held to maturity, at amortized cost (fair value $33,670 and $38,171, respectively) 37,725 41,682
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 30,890 28,812
Loans held for sale 87,351 21,071
Loans and leases 4,072,899 3,536,305
Allowance for credit losses (81,916) (45,947)
Accrued interest receivable 22,332 17,979
Premises, furniture, and equipment, net 38,601 41,710
Rental equipment, net 224,212 204,371
Goodwill and intangible assets 331,335 335,196
Other assets 265,654 295,324
Total assets 7,458,625 6,747,410
LIABILITIES    
Deposits 6,306,976 5,866,037
Short-term borrowings 230,000 0
Long-term borrowings 34,178 36,028
Accrued expenses and other liabilities 209,750 200,205
Total liabilities 6,780,904 6,102,270
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at June 30, 2023 and September 30, 2022, respectively 0 0
Additional paid-in capital 625,825 617,403
Retained earnings 267,100 245,394
Accumulated other comprehensive loss (207,896) (213,080)
Treasury stock, at cost, 149,679 and 90,053 common shares at June 30, 2023 and September 30, 2022, respectively (6,943) (4,835)
Total equity attributable to parent 678,352 645,170
Noncontrolling interest (631) (30)
Total stockholders’ equity 677,721 645,140
Total liabilities and stockholders’ equity 7,458,625 6,747,410
Common stock, $0.01 par value; 90,000,000 shares authorized, 26,688,951 and 28,878,177 shares issued, 26,539,272 and 28,788,124 shares outstanding at June 30, 2023 and September 30, 2022, respectively    
STOCKHOLDERS’ EQUITY    
Common stock 266 288
Common stock, Nonvoting, $0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at June 30, 2023 and September 30, 2022, respectively    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.23.2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
STOCKHOLDERS’ EQUITY    
Investment securities held to maturity, fair value $ 33,670 $ 38,171
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Treasury stock (in shares) 149,679 90,053
Common Stock    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 90,000,000 90,000,000
Common stock, shares issued (in shares) 26,688,951 28,878,177
Common stock, shares outstanding (in shares) 26,539,272 28,788,124
Common Stock, Nonvoting    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 3,000,000 3,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.23.2
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Interest and dividend income:        
Loans and leases, including fees $ 81,242 $ 62,541 $ 233,517 $ 203,115
Mortgage-backed securities 10,234 7,381 30,972 16,690
Other investments 7,870 3,984 24,604 12,169
Total interest and dividend income 99,346 73,906 289,093 231,974
Interest expense:        
Deposits 164 94 2,402 400
FHLB advances and other borrowings 1,717 1,661 3,764 4,010
Total interest expense 1,881 1,755 6,166 4,410
Net interest income 97,465 72,151 282,927 227,564
Provision for (reversal of) credit losses 1,773 (1,302) 48,312 31,186
Net interest income after provision for credit losses 95,692 73,453 234,615 196,378
Noninterest income:        
Gain on sale of securities 9 198 91 595
Gain on sale of trademarks 0 0 10,000 50,000
Gain (loss) on sale of other 812 1,239 566 (1,601)
Other income 5,889 5,271 13,921 10,811
Total noninterest income 67,733 53,994 260,548 250,351
Noninterest expense:        
Compensation and benefits 47,402 45,091 137,966 128,364
Refund transfer product expense 1,727 2,457 9,695 8,855
Refund advance expense 239 (29) 1,869 2,156
Card processing 26,342 8,438 75,949 23,067
Occupancy and equipment expense 8,595 8,996 25,417 25,845
Operating lease equipment depreciation 10,517 9,145 34,864 26,331
Legal and consulting 5,089 11,724 19,469 27,279
Intangible amortization 1,168 1,532 3,861 5,188
Impairment expense 2,749 670 3,273 670
Other expense 10,750 8,626 34,410 34,491
Total noninterest expense 114,578 96,650 346,773 282,246
Income before income tax expense 48,847 30,797 148,390 164,483
Income tax expense 3,243 6,958 18,996 29,236
Net income before noncontrolling interest 45,604 23,839 129,394 135,247
Net income attributable to noncontrolling interest 508 1,448 1,685 2,281
Net income attributable to parent $ 45,096 $ 22,391 $ 127,709 $ 132,966
Earnings per common share:        
Basic (in dollars per share) $ 1.69 $ 0.76 $ 4.63 $ 4.44
Diluted (in dollars per share) $ 1.68 $ 0.76 $ 4.62 $ 4.44
Refund transfer product fees        
Noninterest income:        
Noninterest income $ 8,262 $ 10,289 $ 39,144 $ 38,674
Refund advance fee income        
Noninterest income:        
Noninterest income (927) (20) 37,685 40,513
Card and deposit fees        
Noninterest income:        
Noninterest income 39,708 24,935 119,513 76,825
Rental income        
Noninterest income:        
Noninterest income $ 13,980 $ 12,082 $ 39,628 $ 34,534
v3.23.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income before noncontrolling interest $ 45,604 $ 23,839 $ 129,394 $ 135,247
Other comprehensive income (loss):        
Change in net unrealized gain (loss) on debt securities (26,664) (81,841) 6,574 (184,614)
Net (gain) realized on investment securities (9) (198) (91) (595)
Total (26,673) (82,039) 6,483 (185,209)
Unrealized gain (loss) on currency translation 495 (520) 942 (311)
Deferred income tax effect (6,111) (20,526) 2,241 (46,514)
Total other comprehensive income (loss) (20,067) (62,033) 5,184 (139,006)
Total comprehensive income (loss) 25,537 (38,194) 134,578 (3,759)
Total comprehensive income attributable to noncontrolling interest 508 1,448 1,685 2,281
Comprehensive income (loss) attributable to parent $ 25,029 $ (39,642) $ 132,893 $ (6,040)
v3.23.2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Total Pathward Financial Stockholders’ Equity
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Noncontrolling interest
Beginning Balance at Sep. 30, 2021 $ 871,884 $ 870,729 $ 317 $ 604,484 $ 259,189 $ 7,599 $ (860) $ 1,155
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (4,469) (4,469)     (4,469)      
Issuance of common stock due to restricted stock 1 1 1          
Issuance of common stock due to ESOP 2,886 2,886 1 2,885        
Repurchases of common stock (146,763) (146,763) (25) 25 (143,000)   (3,763)  
Stock compensation 7,765 7,765   7,765        
Total other comprehensive income (loss) (139,006) (139,006)       (139,006)    
Net income 135,247 132,966     132,966     2,281
Net investment by (distribution to) noncontrolling interests (2,771)             (2,771)
Ending Balance at Jun. 30, 2022 724,774 724,109 294 615,159 244,686 (131,407) (4,623) 665
Beginning Balance at Mar. 31, 2022 763,406 763,084 294 612,917 223,760 (69,374) (4,513) 322
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (1,465) (1,465)     (1,465)      
Repurchases of common stock (110) (110)         (110)  
Stock compensation 2,242 2,242   2,242        
Total other comprehensive income (loss) (62,033) (62,033)       (62,033)    
Net income 23,839 22,391     22,391     1,448
Net investment by (distribution to) noncontrolling interests (1,105)             (1,105)
Ending Balance at Jun. 30, 2022 724,774 724,109 294 615,159 244,686 (131,407) (4,623) 665
Beginning Balance at Sep. 30, 2022 645,140 645,170 288 617,403 245,394 (213,080) (4,835) (30)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (4,115) (4,115)     (4,115)      
Issuance of common stock due to restricted stock 1 1 1          
Repurchases of common stock (103,996) (103,996) (23) 23 (101,888)   (2,108)  
Stock compensation 8,399 8,399   8,399        
Total other comprehensive income (loss) 5,184 5,184       5,184    
Net income 129,394 127,709     127,709     1,685
Net investment by (distribution to) noncontrolling interests (2,286)             (2,286)
Ending Balance at Jun. 30, 2023 677,721 678,352 266 625,825 267,100 (207,896) (6,943) (631)
Beginning Balance at Mar. 31, 2023 673,244 673,795 271 623,250 245,046 (187,829) (6,943) (551)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (1,327) (1,327)     (1,327)      
Repurchases of common stock (21,715) (21,715) (5) 5 (21,715)      
Stock compensation 2,570 2,570   2,570        
Total other comprehensive income (loss) (20,067) (20,067)       (20,067)    
Net income 45,604 45,096     45,096     508
Net investment by (distribution to) noncontrolling interests (588)             (588)
Ending Balance at Jun. 30, 2023 $ 677,721 $ 678,352 $ 266 $ 625,825 $ 267,100 $ (207,896) $ (6,943) $ (631)
v3.23.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]        
Cash dividends declared on common stock (in dollars per share) $ 0.05 $ 0.05 $ 0.15 $ 0.15
v3.23.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:    
Net income before noncontrolling interest $ 129,394 $ 135,247
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation, amortization and accretion, net 49,506 47,193
Provision for credit losses 48,312 31,186
Provision for deferred taxes 4,895 18,517
Originations of loans held for sale (941,502) (769,672)
Proceeds from sales of loans held for sale 870,132 898,442
Net change in loans held for sale 5,456 12,568
Net realized (gain) on securities available for sale 0 (161)
Net realized (gain) loss on loans held for sale (235) 3,933
Net realized loss on premise, furniture, and equipment 0 45
Net realized (gain) on lease receivables and equipment (335) (2,180)
Net realized (gain) on trademarks (10,000) (50,000)
Net realized (gain) on other assets (91) (434)
Impairment on rental equipment 24 0
Impairment of intangibles 0 670
Net change in accrued interest receivable (4,353) (564)
Net change in other assets 22,528 (8,959)
Net change in accrued expenses and other liabilities 6,519 (36,577)
Stock compensation 8,399 7,765
Net cash provided by operating activities 188,649 287,019
Cash flows from investing activities:    
Purchases of securities available for sale (150,751) (689,515)
Proceeds from sales of securities available for sale 0 244,305
Proceeds from maturities of and principal collected on securities available for sale 127,071 264,808
Proceeds from maturities of and principal collected on securities held to maturity 3,758 12,189
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock (206,104) (134,293)
Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 204,026 133,880
Purchases of loans and leases (197,549) (108,570)
Proceeds from sales of loans and leases 0 45,784
Net change in loans and leases (42,484) 35,462
Purchases of premises, furniture, and equipment (4,973) (5,860)
Proceeds from sales of premises, furniture, and equipment 0 35
Purchases of rental equipment (373,063) (270,262)
Proceeds from sales of rental equipment 9,373 8,236
Net change in rental equipment (279) (1,879)
Proceeds from sales of foreclosed real estate and repossessed assets 1 1,814
Proceeds from sale of trademarks 10,000 50,000
Proceeds from sale of other assets 0 2,925
Net cash (used in) investing activities (620,974) (410,941)
Cash flows from financing activities:    
Net change in deposits 440,939 195,828
Net change in short-term borrowings 230,000 0
Redemption of long-term borrowings 0 (75,000)
Principal payments on capital lease obligations 0 (75)
Principal payments on other liabilities (1,416) (2,163)
Proceeds from other liabilities 0 0
Payment of debt issuance costs (511) 0
Dividends paid on common stock (4,115) (4,469)
Issuance of common stock due to restricted stock 1 1
Issuance of common stock due to ESOP 0 2,886
Repurchases of common stock (103,996) (146,763)
Distributions to noncontrolling interest (2,286) (2,771)
Net cash provided by (used in) financing activities 558,616 (32,526)
Effect of exchange rate changes on cash 942 (311)
Net change in cash and cash equivalents 127,233 (156,759)
Cash and cash equivalents at beginning of fiscal year 388,038 314,019
Cash and cash equivalents at end of fiscal period 515,271 157,260
Supplemental disclosure of cash flow information:    
Interest 5,556 4,779
Income taxes 11,260 10,898
Franchise taxes 200 200
Other taxes 449 516
Supplemental schedule of non-cash investing activities:    
Trade Date Purchases - AFS 3,026 101,993
Held for sale to loans and leases 158 14,731
Loans and leases to held for sale 0 169,045
Loans and leases to rental equipment 2,168 3,393
Rental equipment to loan and leases 311,278 233,634
Recognition of operating lease ROU assets, net of measurements $ 0 $ 389
v3.23.2
BASIS OF PRESENTATION
 9 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2022 included in Pathward Financial, Inc.’s (“Pathward” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 22, 2022. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and nine months ended June 30, 2023 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2023.
Certain prior fiscal year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
 9 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES (ASU) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2022 remain substantially unchanged, except for the following:

PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Pathward Financial, Inc. ("Pathward Financial" or the “Company” or "us"), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include Pathward®, National Association ("Pathward®, N.A." or "Pathward" or "the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of Pathward, N.A. which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company.

In addition, the Company is a variable interest holder in certain entities in which the equity holders do not have the characteristics of a controlling financial interest or where the entity does not have enough equity at risk to finance its activities without additional subordinated financial support (referred to as variable interest entities or "VIEs"). The Company's variable interest arises from contractual ownership or other monetary interests that change with fluctuations in the VIE's net asset value. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impacts the VIE's economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. To determine whether or not a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of the Company's involvement with the VIE. Further, the Company assesses whether or not the Company is the primary beneficiary of a VIE on an ongoing basis. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.

Noncontrolling interests represent the portion of net income and equity attributable to third-party owners of consolidated subsidiaries that are not wholly-owned by Pathward Financial. All of the Company's noncontrolling interests relate to the Company's Commercial Finance business line.
Variable Interest Entities
In the normal course of business, the Company enters into off-balance sheet transactions with special purpose entities ("SPEs"), which can be structured as corporations, trusts, limited liability companies, or partnerships and are established for a limited purpose. Currently, the Company utilizes a SPE facility for certain term lending products within the Company's Commercial Finance business line. The Company participated in the structuring of the SPE, has a minority ownership interest in the SPE, and acts as servicer for the SPE in exchange for a servicing fee. Pathward is not the primary beneficiary of the SPE as our risk of loss or right to benefits from the SPE are not significant. As of June 30, 2023, there are $9.9 million of commercial term loans held at the SPE, and the Company’s equity investment in the SPE is $0.9 million. The Company’s maximum exposure to loss from the SPE is limited to its equity investment. As of June 30, 2023, there are $3.0 million of commercial term loans classified as held for sale related to this VIE. Additional information on loans transferred during the period is included in Note 5. Loans and Leases, Net.

Loan Servicing and Transfers of Financial Assets
Transfers of loans, portions of loans meeting the definition of a participating interest, and other financial assets are accounted for as sales on the transaction settlement date when control has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of such right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through a repurchase agreement or other means. Upon sale, the loans or other financial assets are derecognized from the Company’s Consolidated Statements of Financial Condition. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the loans or other financial assets remaining on the Company’s Consolidated Statements of Financial Condition and proceeds recognized as a liability.

The Company sells loan participations, generally without recourse, in both the commercial and consumer segments. The Company also sells commercial Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") loans to third parties, generally without recourse. The Bank generally retains the right to service the sold loans for a fee. If the fee is determined commensurate and customary with market terms, no servicing asset or liability is recorded. Any fee that is above or below market terms results in a servicing asset or liability and is included within Other Assets on the Consolidated Statements of Financial Condition.

The following ASU became effective for the Company on October 1, 2022, and did not have a material impact on the Company’s significant accounting policies or Condensed Consolidated Financial Statements:

–ASU 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments.
v3.23.2
SIGNIFICANT EVENTS
 9 Months Ended
Jun. 30, 2023
Unusual or Infrequent Items, or Both [Abstract]  
SIGNIFICANT EVENTS SIGNIFICANT EVENTS
Rebranding

On December 7, 2021, the Company executed a Purchase Agreement (the “Agreement”) with Beige Key, LLC (the “Assignee”) for the sale of all of the Company’s worldwide right, title and interest in and to company names and tradenames including Meta and other "Meta" formative names including MetaBank and Meta Financial Group, and the domain names, social media accounts and goodwill associated with the foregoing (collectively, the “Meta” tradenames) in exchange for $60.0 million in cash. Subject to the terms and conditions set forth in the Agreement, the Company had one year from the Agreement execution date to phase out and cease all use of the Meta tradenames. The Company received $50.0 million upon execution and delivery of the Agreement and was reflected in noninterest income for the fiscal year ended September 30, 2022. The remaining $10.0 million was received by the Company upon completion of phase out activities during the quarter ended December 31, 2022. There have been no additional rebrand activities since completion of these activities.
v3.23.2
SECURITIES
 9 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities are presented below.
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
Debt Securities AFS
At June 30, 2023
Corporate securities$25,000 $— $(6,250)$18,750 
SBA securities98,342 — (7,737)90,605 
Obligations of states and political subdivisions2,384 — (73)2,311 
Non-bank qualified obligations of states and political subdivisions272,818 — (34,443)238,375 
Asset-backed securities265,794 — (11,228)254,566 
Mortgage-backed securities1,526,300 — (216,636)1,309,664 
Total debt securities AFS$2,190,638 $— $(276,367)$1,914,271 
At September 30, 2022
Corporate securities$25,000 $— $(2,813)$22,187 
SBA securities105,238 — (7,470)97,768 
Obligations of states and political subdivisions2,469 — (125)2,344 
Non-bank qualified obligations of states and political subdivisions290,754 — (26,971)263,783 
Asset-backed securities160,806 — (13,016)147,790 
Mortgage-backed securities1,581,452 — (232,455)1,348,997 
Total debt securities AFS$2,165,719 $— $(282,850)$1,882,869 
Debt Securities HTM
At June 30, 2023
Non-bank qualified obligations of states and political subdivisions$35,450 $— $(3,822)$31,628 
Mortgage-backed securities2,275 — (233)2,042 
Total debt securities HTM$37,725 $— $(4,055)$33,670 
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$39,093 $— $(3,190)$35,903 
Mortgage-backed securities2,589 — (321)2,268 
Total debt securities HTM$41,682 $— $(3,511)$38,171 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
At June 30, 2023
Corporate securities$— $— $18,750 $(6,250)$18,750 $(6,250)
SBA securities39,964 (2,048)50,641 (5,689)90,605 (7,737)
Obligations of state and political subdivisions— — 2,311 (73)2,311 (73)
Non-bank qualified obligations of states and political subdivisions38,703 (2,128)198,715 (32,315)237,418 (34,443)
Asset-backed securities98,655 (1,170)155,911 (10,058)254,566 (11,228)
Mortgage-backed securities284,959 (16,159)1,021,679 (200,477)1,306,638 (216,636)
Total debt securities AFS$462,281 $(21,505)$1,448,007 $(254,862)$1,910,288 $(276,367)
At September 30, 2022
Corporate securities$— $— $22,187 $(2,813)$22,187 $(2,813)
SBA securities97,767 (7,470)— — 97,767 (7,470)
Obligations of state and political subdivisions2,345 (125)— — 2,345 (125)
Non-bank qualified obligations of states and political subdivisions195,816 (19,743)67,967 (7,228)263,783 (26,971)
Asset-backed securities64,886 (1,838)82,904 (11,178)147,790 (13,016)
Mortgage-backed securities816,657 (106,583)532,340 (125,872)1,348,997 (232,455)
Total debt securities AFS$1,177,471 $(135,759)$705,398 $(147,091)$1,882,869 $(282,850)
Debt Securities HTM
At June 30, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $31,628 $(3,822)$31,628 $(3,822)
Mortgage-backed securities— — 2,042 (233)2,042 (233)
Total debt securities HTM$— $— $33,670 $(4,055)$33,670 $(4,055)
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$3,984 $(300)$31,919 $(2,890)$35,903 $(3,190)
Mortgage-backed securities2,268 (321)— — 2,268 (321)
Total debt securities HTM$6,252 $(621)$31,919 $(2890)$38,171 $(3,511)

At June 30, 2023, there were 203 securities AFS in an unrealized loss position. All of the mortgage-backed securities ("MBS") in an unrealized loss position at June 30, 2023 were government guaranteed. Management assessed each investment security with unrealized losses for credit loss and determined substantially all unrealized losses on these securities were due to adverse market conditions and/or changes in interest rates versus credit loss. As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost. At June 30, 2023, there was no allowance for credit losses ("ACL") for debt securities AFS.
The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features that allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
(Dollars in thousands)At June 30, 2023At September 30, 2022
Securities AFS at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$4,784 $4,728 $718 $715 
Due after one year through five years4,814 4,400 9,921 9,395 
Due after five years through ten years86,500 75,126 89,921 81,819 
Due after ten years568,240 520,353 483,707 441,943 
664,338 604,607 584,267 533,872 
Mortgage-backed securities1,526,300 1,309,664 1,581,452 1,348,997 
Total securities AFS, at fair value$2,190,638 $1,914,271 $2,165,719 $1,882,869 
Securities HTM at Fair Value
Due after ten years$35,450 $31,628 $39,093 $35,903 
35,450 31,628 39,093 35,903 
Mortgage-backed securities2,275 2,042 2,589 2,268 
Total securities HTM, at cost$37,725 $33,670 $41,682 $38,171 

Federal Reserve Bank ("FRB") Stock. The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank totaled $19.7 million at June 30, 2023 and September 30, 2022. These equity securities are 'restricted' in that they can only be owned by member banks.

Federal Home Loan Bank ("FHLB") Stock. The Company's borrowings from the FHLB are secured by specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.

The investments in the FHLB stock are required investments related to the Company's membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency.

The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $11.2 million and $9.1 million at June 30, 2023 and at September 30, 2022, respectively.

These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par. Therefore, FRB and FHLB stocks are less liquid than other marketable equity securities, and the fair value approximates cost.

Equity Securities. The Company held $3.5 million at June 30, 2023 and $2.9 million at September 30, 2022 in marketable equity securities. The Company recognized $0.2 million and $3.8 million in unrealized losses on marketable equity securities during the nine months ended June 30, 2023 and 2022, respectively, which is attributable to an investee becoming publicly traded during fiscal year 2021. All other marketable equity securities and related activity were insignificant for the nine months ended June 30, 2023 and 2022. No such securities were sold during the nine months ended June 30, 2023.
Non-marketable equity securities with a readily determinable fair value totaled $8.5 million at June 30, 2023 and $7.2 million at September 30, 2022. The Company recognized $0.1 million in unrealized losses and $0.6 million in unrealized gains during the nine months ended June 30, 2023 and 2022, respectively. No such securities were sold during the nine months ended June 30, 2023.

Non-marketable equity securities without readily determinable fair value totaled $15.8 million at June 30, 2023 and $18.2 million at September 30, 2022. There were two such securities were sold during the nine months ended June 30, 2023.

Equity Securities Impairment. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis. The Company recognized $3.2 million and no impairment for such investments for the nine months ended June 30, 2023 and 2022, respectively.
v3.23.2
LOANS AND LEASES, NET
 9 Months Ended
Jun. 30, 2023
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, 2023September 30, 2022
Term lending$1,253,841 $1,090,289 
Asset based lending373,160 351,696 
Factoring351,133 372,595 
Lease financing201,996 210,692 
Insurance premium finance666,265 479,754 
SBA/USDA422,389 359,238 
Other commercial finance171,954 159,409 
Commercial finance3,440,738 3,023,673 
Consumer credit products175,158 144,353 
Other consumer finance24,963 25,306 
Consumer finance200,121 169,659 
Tax services47,194 9,098 
Warehouse finance380,458 326,850 
Total loans and leases4,068,511 3,529,280 
Net deferred loan origination costs4,388 7,025 
Total gross loans and leases4,072,899 3,536,305 
Allowance for credit losses(81,916)(45,947)
Total loans and leases, net$3,990,983 $3,490,358 

During the nine months ended June 30, 2023 and 2022, the Company originated $941.5 million and $769.7 million of consumer finance and SBA/USDA as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $870.1 million and gain on sale of $0.2 million during the nine months ended June 30, 2023. The Company sold held for sale loans resulting in proceeds of $898.4 million and loss on sale of $3.9 million during the nine months ended June 30, 2022.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Loans Purchased
Loans held for investment:
Commercial finance$— $— $— $3,098 
Warehouse finance9,715 19,657 197,549 105,472 
Total purchases$9,715 $19,657 $197,549 $108,570 
Loans Sold
Loans held for sale:
Commercial finance$11,114 $1,216 $12,263 $48,329 
Consumer finance254,655 173,284 857,869 696,891 
Community banking— — — 153,222 
Loans held for investment:
Commercial finance— — — 15,549 
Community banking— — — 30,235 
Total sales$265,769 $174,500 $870,132 $944,226 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Carrying amount$212,275 $216,880 
Unguaranteed residual assets13,152 13,037 
Unamortized initial direct costs160 295 
Unearned income(23,431)(19,225)
Total net investment in direct financing and sales-type leases$202,156 $210,987 

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$23,963 
202476,232 
202546,603 
202624,781 
202715,865 
Thereafter24,831 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases212,275 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$212,275 

The Company did not record any contingent rental income from direct financing and sales-type leases in the nine months ended June 30, 2023.
The COVID-19 pandemic began impacting the U.S. and global economies in the first calendar quarter of 2020, with significant deterioration of macroeconomic conditions and markets into 2021. Although macroeconomic conditions and markets have improved since the beginning of 2021, other factors have been affecting the economic environment in 2022 and 2023 including geopolitical conflict, supply chain disruptions, inflation, rising interest rates, and bank failures brought on by, among other things, rising interest rates, deposit outflows and liquidity crises. While the ultimate impact of the pandemic and these other factors on the Company's loan and lease portfolio remains difficult to predict, 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 COVID-19 and other factors impacting the economy and will refine its estimate as developments occur and more information becomes available.
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
Three Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$28,415 $250 $(2,852)$825 $26,638 
Asset based lending1,081 68 — 154 1,303 
Factoring5,588 493 (140)1 5,942 
Lease financing4,549 (355)(302)(26)3,866 
Insurance premium finance1,263 1,094 (443)158 2,072 
SBA/USDA2,640 24 — — 2,664 
Other commercial finance4,332 (253)— — 4,079 
Commercial finance47,868 1,321 (3,737)1,112 46,564 
Consumer credit products1,219 522 — — 1,741 
Other consumer finance1,746 216 (1,860)— 102 
Consumer finance2,965 738 (1,860)— 1,843 
Tax services33,094 (229)(404)671 33,132 
Warehouse finance377 — — — 377 
Total loans and leases84,304 1,830 (6,001)1,783 81,916 
Unfunded commitments(1)
356 (57)— — 299 
Total $84,660 $1,773 $(6,001)$1,783 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$27,568 $9 $(3,086)$1,316 $25,807 
Asset based lending2,583 (1,553)— 295 1,325 
Factoring6,526 533 (194)268 7,133 
Lease financing6,471 (429)— 107 6,149 
Insurance premium finance1,057 583 (230)41 1,451 
SBA/USDA2,943 338 (408)25 2,898 
Other commercial finance1,197 (79)— — 1,118 
Commercial finance48,345 (598)(3,918)2,052 45,881 
Consumer credit products1,621 (170)— — 1,451 
Other consumer finance7,388 (205)(2,428)88 4,843 
Consumer finance9,009 (375)(2,428)88 6,294 
Tax services30,757 (166)(7,998)6 22,599 
Warehouse finance441 (9)— — 432 
Total loans and leases88,552 (1,148)(14,344)2,146 75,206 
Unfunded commitments(1)
551 (154)— — 397 
Total $89,103 $(1,302)$(14,344)$2,146 $75,603 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $7,895 $(7,374)$1,496 $26,638 
Asset based lending1,050 2,972 (2,873)154 1,303 
Factoring6,556 (311)(323)20 5,942 
Lease financing5,902 (976)(1,315)255 3,866 
Insurance premium finance1,450 1,202 (852)272 2,072 
SBA/USDA3,263 (625)— 26 2,664 
Other commercial finance1,310 2,769 — — 4,079 
Commercial finance44,152 12,926 (12,737)2,223 46,564 
Consumer credit products1,400 341 — — 1,741 
Other consumer finance63 2,232 (2,193)— 102 
Consumer finance1,463 2,573 (2,193)— 1,843 
Tax services5 32,830 (2,135)2,432 33,132 
Warehouse finance327 50 — — 377 
Total loans and leases45,947 48,379 (17,065)4,655 81,916 
Unfunded commitments(1)
366 (67)— — 299 
Total $46,312 $48,312 $(17,065)$4,655 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $1,104 $(6,993)$2,345 $25,807 
Asset based lending1,726 (817)(16)432 1,325 
Factoring3,997 13,857 (11,057)336 7,133 
Lease financing7,629 (1,647)(112)279 6,149 
Insurance premium finance1,394 374 (514)197 1,451 
SBA/USDA2,978 517 (624)27 2,898 
Other commercial finance1,168 (50)— — 1,118 
Commercial finance48,243 13,338 (19,316)3,616 45,881 
Consumer credit products1,242 209 — — 1,451 
Other consumer finance6,112 2,513 (4,049)267 4,843 
Consumer finance7,354 2,722 (4,049)267 6,294 
Tax services2 28,093 (8,253)2,757 22,599 
Warehouse finance420 12 — — 432 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 31,479 (31,618)7,064 75,206 
Unfunded commitments(1)
690 (293)— — 397 
Total $68,971 $31,186 $(31,618)$7,064 $75,603 
(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)At June 30, 2023At September 30, 2022
Term lending$4,767 $2,885 
Asset based lending14,414 — 
Factoring— 550 
Lease financing591 2,787 
SBA/USDA750 1,199 
Commercial finance(1)
20,522 7,421 
Total$20,522 $7,421 
(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 $68.2 million and $120.7 million at June 30, 2023 and at September 30, 2022, 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 210 days or more for commercial insurance premium finance, 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. Nonaccrual loans and troubled debt restructurings are generally individually evaluated for expected credit losses.

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 $200.1 million and $47.2 million at June 30, 2023, respectively, and $169.7 million and $9.1 million at September 30, 2022, 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
At June 30, 202320232022202120202019Prior
Term lending
Pass$313,587 $201,918 $119,763 $82,834 $18,380 $203,059 $— $939,541 
Watch47,005 50,336 61,125 11,832 6,964 14,399 — 191,661 
Special mention1,174 12,080 11,369 1,383 1,106 1,753 — 28,865 
Substandard2,715 34,238 19,320 25,326 4,485 2,135 — 88,219 
Doubtful103 1,934 1,110 931 235 1,242 — 5,555 
Total364,584 300,506 212,687 122,306 31,170 222,588 — 1,253,841 
Asset based lending
Pass— — — — — — 163,401 163,401 
Watch— — — — — — 163,215 163,215 
Special mention— — — — — — 23,264 23,264 
Substandard— — — — — — 15,748 15,748 
Doubtful— — — — — — 7,532 7,532 
Total— — — — — — 373,160 373,160 
Factoring
Pass— — — — — — 257,636 257,636 
Watch— — — — — — 71,351 71,351 
Special mention— — — — — — 11,875 11,875 
Substandard— — — — — — 10,271 10,271 
Total— — — — — — 351,133 351,133 
Lease financing
Pass8,249 18,748 21,365 34,127 2,091 50,807 — 135,387 
Watch190 10,301 11,617 3,370 2,222 477 — 28,177 
Special mention— — 1,374 602 281 — — 2,257 
Substandard— 8,185 8,168 3,960 6,269 9,278 — 35,860 
Doubtful— — 81 100 — 134 — 315 
Total8,439 37,234 42,605 42,159 10,863 60,696 — 201,996 
Insurance premium finance
Pass655,755 8,822 9 — — — — 664,586 
Watch374 239 — — — — — 613 
Special mention115 74 — — — — — 189 
Substandard55 429 — — — — — 484 
Doubtful80 313 — — — — — 393 
Total656,379 9,877 9 — — — — 666,265 
SBA/USDA
Pass91,797 198,975 28,116 45,070 9,288 18,745 — 391,991 
Watch— — 326 53 358 2,391 — 3,128 
Special mention— — — — — — — — 
Substandard252 1,680 1,156 7,185 8,303 8,694 — 27,270 
Total92,049 200,655 29,598 52,308 17,949 29,830 — 422,389 
Other commercial finance
Pass3,425 18,899 32,908 1,094 10,212 73,785 — 140,323 
Watch1,740 — — — — — — 1,740 
Special mention— — 18,000 — — — — 18,000 
Substandard2,789 464 8,379 — — 259 — 11,891 
Total7,954 19,363 59,287 1,094 10,212 74,044 — 171,954 
Warehouse finance
Pass— — — — — — 380,458 380,458 
Total— — — — — — 380,458 380,458 
Total loans and leases
Pass1,072,813 447,362 202,161 163,125 39,971 346,396 801,495 3,073,323 
Watch49,309 60,876 73,068 15,255 9,544 17,267 234,566 459,885 
Special mention1,289 12,154 30,743 1,985 1,387 1,753 35,139 84,450 
Substandard5,811 44,996 37,023 36,471 19,057 20,366 26,019 189,743 
Doubtful183 2,247 1,191 1,031 235 1,376 7,532 13,795 
Total$1,129,405 $567,635 $344,186 $217,867 $70,194 $387,158 $1,104,751 $3,821,196 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 99,114 121,429 73,717 — 1,090,289 
Asset based lending
Pass— — — — — — 154,494 154,494 
Watch— — — — — — 162,990 162,990 
Special mention— — — — — — 13,770 13,770 
Substandard— — — — — — 20,442 20,442 
Total— — — — — — 351,696 351,696 
Factoring
Pass— — — — — — 254,883 254,883 
Watch— — — — — — 86,219 86,219 
Special mention— — — — — — 9,174 9,174 
Substandard— — — — — — 22,319 22,319 
Total— — — — — — 372,595 372,595 
Lease financing
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 40,474 56,538 28,874 24,305 — 316,610 
Watch— 13,836 1,266 702 — 710 — 16,514 
Special mention— 211 — 869 — — — 1,080 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 23,145 26,040 20,458 23,098 60,782 — 159,409 
Warehouse finance
Pass— — — — — — 294,350 294,350 
Special mention— — — — — — 32,500 32,500 
Total— — — — — — 326,850 326,850 
Total loans and leases
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 584 1,749 960 204 192 — 4,022 
Total$873,673 $538,519 $306,740 $218,730 $193,876 $167,844 $1,051,141 $3,350,523 

Past due loans and leases were as follows:
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At June 30, 202330-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$10 $— $— $10 $87,341 $87,351 $— $— $— 
Term lending30,464 3,423 8,074 41,961 1,211,880 1,253,841 1,862 13,207 15,069 
Asset based lending— — 218 218 372,942 373,160 218 14,407 14,625 
Factoring— — — — 351,133 351,133 — 364 364 
Lease financing2,945 729 1,940 5,614 196,382 201,996 1,627 1,494 3,121 
Insurance premium finance1,884 874 2,394 5,152 661,113 666,265 2,394 — 2,394 
SBA/USDA51 908 1,002 1,961 420,428 422,389 349 698 1,047 
Other commercial finance— — 92 92 171,862 171,954 92 — 92 
Commercial finance35,344 5,934 13,720 54,998 3,385,740 3,440,738 6,542 30,170 36,712 
Consumer credit products2,512 2,030 2,058 6,600 168,558 175,158 2,058 — 2,058 
Other consumer finance26 20 29 75 24,888 24,963 29 — 29 
Consumer finance2,538 2,050 2,087 6,675 193,446 200,121 2,087 — 2,087 
Tax services— 47,194 — 47,194 — 47,194 — — — 
Warehouse finance— — — — 380,458 380,458 — — — 
Total loans and leases held for investment37,882 55,178 15,807 108,867 3,959,644 4,068,511 8,629 30,170 38,799 
Total loans and leases$37,892 $55,178 $15,807 $108,877 $4,046,985 $4,155,862 $8,629 $30,170 $38,799 
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At September 30, 202230-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 2,576 4,458 21,100 1,069,189 1,090,289 2,035 7,576 9,611 
Asset based lending— — 68 68 351,628 351,696 39 29 68 
Factoring— — — — 372,595 372,595 — 569 569 
Lease financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 1,379 1,628 5,557 474,197 479,754 1,628 — 1,628 
SBA/USDA— — — — 359,238 359,238 — 1,451 1,451 
Other commercial finance— — — — 159,409 159,409 — — — 
Commercial finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
Consumer finance3,322 2,609 2,793 8,724 160,935 169,659 2,793 — 2,793 
Tax services— — 8,873 8,873 225 9,098 8,873 — 8,873 
Warehouse finance— — — — 326,850 326,850 — — — 
Total loans and leases held for investment28,203 8,817 19,534 56,554 3,472,726 3,529,280 15,808 13,375 29,183 
Total loans and leases$28,203 $8,817 $19,534 $56,554 $3,493,797 $3,550,351 $15,808 $13,375 $29,183 

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
At June 30, 202320232022202120202019Prior
Term lending$103 $3,819 $2,245 $2,017 $3,380 $1,643 $— $13,207 $— 
Asset based lending— — — — — — 14,407 14,407 14,407 
Factoring— — — — — — 364 364 — 
Lease financing— 269 596 — — 629 — 1,494 591 
SBA/USDA— 401 12 32 — 253 — 698 401 
Commercial finance103 4,489 2,853 2,049 3,380 2,525 14,771 30,170 15,399 
Total nonaccrual loans and leases$103 $4,489 $2,853 $2,049 $3,380 $2,525 $14,771 $30,170 $15,399 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202220222021202020192018Prior
Term lending$251 $1,110 $1,964 $989 $3,096 $166 $— $7,576 $2,885 
Asset based lending— — — — — — 29 29 — 
Factoring— — — — — — 569 569 550 
Lease financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 1,420 5,605 1,002 3,104 418 598 13,375 4,634 
Total nonaccrual loans and leases$1,228 $1,420 $5,605 $1,002 $3,104 $418 $598 $13,375 $4,634 
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
At June 30, 202320232022202120202019Prior
Term lending$128 $917 $658 $107 $52 $— $— $1,862 
Asset based lending— — — — — — 218 218 
Lease financing— 479 969 152 20 7 — 1,627 
Insurance premium finance1,149 1,241 4 — — — — 2,394 
SBA/USDA— 349 — — — — — 349 
Other commercial finance— — — — — 92 — 92 
Commercial finance1,277 2,986 1,631 259 72 99 218 6,542 
Consumer credit products335 1,239 415 50 19 — — 2,058 
Other consumer finance— — — — — — 29 29 
Consumer finance335 1,239 415 50 19 — 29 2,087 
Total 90 days or more delinquent and accruing$1,612 $4,225 $2,046 $309 $91 $99 $247 $8,629 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808 

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)2023202220232022
Term lending$12,637 $11,114 $10,397 $11,908 
Asset based lending15,792 3,500 8,452 4,502 
Factoring545 1,903 592 7,980 
Lease financing2,675 3,529 3,308 3,194 
SBA/USDA1,261 1,776 1,353 1,152 
Commercial finance32,910 21,822 24,102 28,736 
Total loans and leases$32,910 $21,822 $24,102 $28,736 

The recognized interest income on the Company's nonaccrual loans and leases for the three and nine months ended June 30, 2023 and 2022 was not significant.
The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. No loans were modified in a TDR during the three months ended June 30, 2023. There were $0.2 million of commercial finance loans and $0.5 million of consumer finance loans that were modified in a TDR during the three months ended June 30, 2022, all of which were modified to extend the term of the loan.

During the nine months ended June 30, 2023, there were no loans that were modified in a TDR. There were $10.4 million of commercial finance loans and $0.7 million of consumer finance loans that were modified in a TDR during the nine months ended June 30, 2022, all of which were modified to extend the term of the loan.

During the three months ended June 30, 2023, there was an immaterial amount of commercial finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the three months ended June 30, 2022, the Company had $1.4 million of commercial finance loans and $0.3 million of consumer finance loans that were modified in a TDR with the previous 12 months and for which there was a payment default.

During the nine months ended June 30, 2023, the Company had $0.4 million of commercial finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the nine months ended June 30, 2022, the Company had $3.9 million of commercial finance loans and $1.1 million of consumer finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the nine months ended June 30, 2023 and June 30, 2022.
v3.23.2
EARNINGS PER COMMON SHARE ("EPS")
 9 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE ("EPS") EARNINGS PER COMMON SHARE ("EPS")The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation under the two-class method. Basic EPS is computed using the two-class method by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated using the more dilutive of the treasury stock method or the two-class method. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options, performance share units, and nonvested restricted stock, where applicable. Diluted EPS under the two-class method also considers the allocation of earnings to the participating securities. Antidilutive securities are disregarded in earnings per share calculations. Diluted EPS shown below reflects the two-class method, as diluted EPS under the two-class method was more dilutive than under the treasury stock method.
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands, except per share data)2023202220232022
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$45,096 $22,391 $127,709 $132,966 
Dividends and undistributed earnings allocated to participating securities(690)(377)(1,920)(2,166)
Basic net earnings available to common stockholders44,406 22,014 125,789 130,800 
Undistributed earnings allocated to nonvested restricted stockholders670 352 1,858 2,093 
Reallocation of undistributed earnings to nonvested restricted stockholders(667)(352)(1,852)(2,092)
Diluted net earnings available to common stockholders$44,409 $22,014 $125,795 $130,801 
Total weighted-average basic common shares outstanding26,346,693 28,868,136 27,152,773 29,444,979 
Effect of dilutive securities(1)
Performance share units100,339 — 86,028 9,607 
Total effect of dilutive securities100,339 — 86,028 9,607 
Total weighted-average diluted common shares outstanding26,447,032 28,868,136 27,238,801 29,454,586 
Net earnings per common share:
Basic earnings per common share$1.69 $0.76 $4.63 $4.44 
Diluted earnings per common share(2)
$1.68 $0.76 $4.62 $4.44 
(1) Represents the effect of the assumed exercise of stock options and vesting of performance share units and restricted stock, as applicable, utilizing the treasury stock method.
(2) Excluded from the computation of diluted earnings per share for the three months ended June 30, 2023 and 2022, respectively, were 409,666 and 493,800 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. Excluded from the computation of diluted earnings per share for the nine months ended June 30, 2023 and 2022, respectively, were 414,539 and 487,538 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.23.2
RENTAL EQUIPMENT, NET
 9 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
RENTAL EQUIPMENT, NET RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Computers and IT networking equipment$25,681 $21,669 
Motor vehicles and other123,374 107,648 
Other furniture and equipment49,214 34,254 
Solar panels and equipment137,809 133,765 
Total336,078 297,336 
Accumulated depreciation(113,122)(94,355)
Unamortized initial direct costs1,256 1,390 
Net book value$224,212 $204,371 
Future minimum lease payments expected to be received for operating leases at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$11,844 
202440,640 
202533,086 
202623,247 
202715,506 
Thereafter17,484 
Total $141,807 
v3.23.2
GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
The Company held a total of $309.5 million of goodwill at June 30, 2023. The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018. There have been no changes to the carrying amount of goodwill during the nine months ended June 30, 2023.
The changes in the carrying amount of the Company’s intangible assets were as follows:
(Dollars in thousands)
Trademark(1)
Non-Compete
Customer Relationships(2)
All Others(3)
Total
Intangible Assets
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Amortization during the period(868)— (2,595)(398)(3,861)
At June 30, 2023$7,737 $— $9,800 $4,293 $21,830 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,887)(2,481)(61,370)(5,429)(76,167)
Accumulated impairment— — (10,918)(218)(11,136)
At June 30, 2023$7,737 $— $9,800 $4,293 $21,830 
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Acquisitions during the period— — — 1 1 
Amortization during the period(871)(40)(3,884)(393)(5,188)
Write-offs during the period— — (670)(203)(873)
At June 30, 2022$8,952 $— $13,314 $4,822 $27,088 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(5,672)(2,481)(57,856)(4,900)(70,909)
Accumulated impairment— — (10,918)(218)(11,136)
At June 30, 2022$8,952 $— $13,314 $4,822 $27,088 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 10-30 years. Amortized using the accelerated method.
(3) Book amortization period of 3-20 years. Amortized using the straight line method.
The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining three months of fiscal 2023 and subsequent fiscal years at June 30, 2023 was as follows:
(Dollars in thousands)
Remaining in 2023$1,082 
20244,123 
20253,561 
20263,215 
20272,569 
Thereafter7,280 
Total anticipated intangible amortization$21,830 

There were no impairments to intangible assets during the nine months ended June 30, 2023 and 2022. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations.
v3.23.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 9 Months Ended
Jun. 30, 2023
Leases [Abstract]  
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
Operating lease right-of-use ("ROU") assets, included in other assets, were $27.7 million and $31.0 million at June 30, 2023 and 2022, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $29.6 million and $32.9 million at June 30, 2023 and 2022, respectively.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$1,091 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 33,648 
Discount(4,003)
Total operating lease liabilities$29,645 

The weighted-average discount rate and remaining lease term for operating leases at June 30, 2023 were as follows:
Weighted-average discount rate2.37 %
Weighted-average remaining lease term (years)9.82

The components of total lease costs for operating leases were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Lease expense$978 $1,119 $2,974 $3,375 
Short-term and variable lease cost22 58 106 133 
ROU asset impairment— 670 — 670 
Sublease income(368)(375)(1,040)(906)
Total lease cost for operating leases$632 $1,472 $2,040 $3,272 
v3.23.2
STOCKHOLDERS' EQUITY
 9 Months Ended
Jun. 30, 2023
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Repurchase of Common Stock. The Company's Board of Directors authorized the September 3, 2021 share repurchase program to repurchase up to 6,000,000 shares of the Company's outstanding common stock. This authorization is effective from September 3, 2021 through September 30, 2024. During the nine months ended June 30, 2023 and 2022, the Company repurchased 2,316,814 and 2,447,699 shares, respectively, as part of the share repurchase program.

Under the repurchase program, repurchased shares were retired and designated as authorized but unissued shares. The Company accounts for repurchased shares using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. As of June 30, 2023, 1,978,163 shares of common stock remained available for repurchase.

For the nine months ended June 30, 2023 and 2022, the Company also repurchased 59,626 and 67,158 shares, or $2.1 million and $3.8 million of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

Retirement of Treasury Stock. The Company accounts for the retirement of repurchased shares, including treasury stock, using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. The Company retired zero shares of common stock held in treasury during the nine months ended June 30, 2023 and 2022, respectively.
v3.23.2
STOCK COMPENSATION
 9 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
The Company maintains the Pathward Financial, Inc. 2002 Omnibus Incentive Plan, as amended and restated (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options, nonvested (restricted) shares, and performance share units ("PSUs") to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. No new awards are made under the 2002 Omnibus Incentive Plan following November 25, 2022, the date that the 2002 Omnibus Incentive Plan expired by its terms.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of nonvested (restricted) shares and performance share units granted under the Company’s 2002 Omnibus Incentive Plan is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends where applicable. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur.

The following tables show the activity of nonvested (restricted) shares and PSUs granted, vested, or forfeited under the 2002 Omnibus Incentive Plan for the nine months ended June 30, 2023. There were no options granted, exercised, or forfeited under this plan during the nine months ended June 30, 2023.
Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2022
474,348 $36.52 
Granted160,881 38.95 
Vested(209,440)36.59 
Forfeited or expired(33,293)48.90 
Nonvested shares outstanding, June 30, 2023
392,496 $36.42 
Performance share units outstanding, September 30, 2022
96,689 $42.59 
Granted(1)
59,115 38.94 
Vested— — 
Forfeited or expired— — 
Performance share units outstanding, June 30, 2023
155,804 $41.20 
(1) The number of PSUs granted reflects the target number of PSUs able to be earned under a given award.

At June 30, 2023, stock-based compensation expense not yet recognized in income totaled $8.2 million, which is expected to be recognized over a weighted average remaining period of 1.45 years.
v3.23.2
INCOME TAXES
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded an income tax expense of $19.0 million for the nine months ended June 30, 2023, resulting in an effective tax rate of 12.80%, compared to an income tax expense of $29.2 million, or an effective tax rate of 17.77%, for the nine months ended June 30, 2022. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the effect of investment tax credits during fiscal year 2023. The Company's effective tax rate in the future will depend in part on actual investment tax credits generated from qualified renewable energy property.

The table below compares the income tax expense components for the periods presented.
Nine Months Ended June 30,
(Dollars in thousands)20232022
Provision at statutory rate$30,808 $34,063 
Tax-exempt income(600)(541)
State income taxes6,109 6,728 
Interim period effective rate adjustment(3,065)(2,849)
Tax credit investments, net - federal(13,669)(6,994)
Research tax credit(805)(355)
IRC 162(m) nondeductible compensation928 801 
Other, net(710)(1,617)
Income tax expense$18,996 $29,236 
Effective tax rate12.80 %17.77 %
v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Condensed Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Three Months Ended June 30,20232022202320222023202220232022
Net interest income(1)
$40,683 $23,213 $53,067 $46,802 $3,715 $2,136 $97,465 $72,151 
Noninterest income:
Refund transfer product fees8,262 10,289 — — — — 8,262 10,289 
Refund advance fee income(1)
(927)(20)— — — — (927)(20)
Card and deposit fees39,450 24,673 253 252 5 10 39,708 24,935 
Rental income(1)
— — 13,756 11,890 224 192 13,980 12,082 
Gain on sale of securities(1)
— — — — 9 198 9 198 
Gain on sale of other(1)
— — 812 1,239 — — 812 1,239 
Other income(1)
1,929 1,284 1,888 2,479 2,072 1,508 5,889 5,271 
Total noninterest income48,714 36,226 16,709 15,860 2,310 1,908 67,733 53,994 
Revenue$89,397 $59,439 $69,776 $62,662 $6,025 $4,044 $165,198 $126,145 
Nine Months Ended June 30,
Net interest income(1)
$116,373 $79,323 $142,149 $136,923 $24,405 $11,318 $282,927 $227,564 
Noninterest income:
Refund transfer product fees39,144 38,674 — — — — 39,144 38,674 
Refund advance fee income(1)
37,685 40,513 — — — — 37,685 40,513 
Card and deposit fees118,730 76,075 766 728 17 22 119,513 76,825 
Rental income(1)
— — 39,008 34,192 620 342 39,628 34,534 
Gain on sale of securities(1)
— — — — 91 595 91 595 
Gain on sale of trademarks— — — — 10,000 50,000 10,000 50,000 
Gain (loss) on sale of other(1)
— — 566 7,331 — (8,932)566 (1,601)
Other income(1)
4,470 3,434 4,907 8,103 4,544 (726)13,921 10,811 
Total noninterest income200,029 158,696 45,247 50,354 15,272 41,301 260,548 250,351 
Revenue$316,402 $238,019 $187,396 $187,277 $39,677 $52,619 $543,475 $477,915 
(1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period; therefore, the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities for the nine months ended June 30, 2023.
Refund Transfer Product Fees. Refund transfer fees are specific to the Banking as a Service ("BaaS") business line and reflect product fees offered by the Company through third-party tax preparers and tax preparation software providers where the Company acts as the partnering financial institution. A refund transfer allows a taxpayer to pay tax preparation and filing fees directly from their federal or state government tax refund, with the remainder of the refund being disbursed in accordance with the terms and conditions of the taxpayer agreement, which may include satisfaction of other disbursement obligations before going directly to the taxpayer via check, direct deposit, or prepaid card. Refund transfer fees are recognized by the Company immediately after the taxpayer's refund has been disbursed in accordance with the contract and are based on standalone pricing included within the terms and conditions. Certain expenses to tax preparation software providers are netted with refund transfer fee income as the Company is considered the agent in these contractual relationships. All refund transfer fees are recorded within the Consumer reporting segment.

Card and Deposit Fees. Card fees relate to the BaaS business line and consists of income from prepaid cards and merchant services, including interchange fees from prepaid cards processed through card association networks, merchant services and other card related services. Interchange rates are generally set by card association networks based on transaction volume and other factors. Since interchange fees are generated by cardholder activity, the Company recognizes the income as transactions occur. Fee income for merchant services and other card related services reflect account management and transaction fees charged to merchants for processing card association network transactions. The associated income is recognized as transactions occur or as services are performed. For the Company's internally managed prepaid card programs, fees are based on standalone pricing within the terms and conditions of the cardholder agreement. The Company is considered the principal of these relationships resulting in all fee income being presented on a gross basis within the Condensed Consolidated Statement of Operations. For the Company's sponsorship prepaid card programs where a third-party is considered the Program Manager, the fees are based on standalone pricing within the terms and conditions of the Program Agreement. For these relationships, the Company is considered the agent and certain expenses with the Program Manager, networks and associations are netted with card fee revenue. All card fee income is included in the Consumer reporting segment.

Deposit fees relate to the BaaS and Commercial Finance business lines and consist of income from banking and deposit-related services, including account services, overdraft protection, and wire transfers. Fee income for account services is recognized over the course of the month as the performance obligation is satisfied. Fee income for overdraft protection and wire transfers is recognized at the point in time when such event occurs. For BaaS, the fees for account services and overdraft protection are based on standalone pricing within the terms and conditions of the Program Agreement with the sponsorship partner. For these relationships, the Company is considered the agent and certain expenses with the partner are netted with deposit fee revenue. For Commercial Finance, fees for wire transfers are based on standalone pricing within the terms and conditions of the customer deposit agreement. Bank and deposit fees for the BaaS and Commercial Finance business lines are included in the Consumer and Commercial reporting segments, respectively. Also included within Card and Deposit Fees for the Consumer reporting segment are servicing fees the Company recognizes for custodial off-balance sheet deposits. This fee income is for services the Bank performs to maintain records of cardholder funds placed at one or more third-party banks insured by the Federal Deposit Insurance Corporation ("FDIC"). The servicing fee is typically reflective of the effective federal funds rate ("EFFR").
v3.23.2
SEGMENT REPORTING
 9 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The Company reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The BaaS business line is reported in the Consumer segment. The Commercial Finance business line is reported in the Commercial segment. The Corporate Services/Other segment includes certain shared services as well as treasury related functions such as the investment portfolio, warehouse finance, wholesale deposits and borrowings.
The following tables present segment data for the Company:
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Three Months Ended June 30,20232022202320222023202220232022
Net interest income$40,683 $23,213 $53,067 $46,802 $3,715 $2,136 $97,465 $72,151 
Provision for (reversal of) credit losses508 (279)1,265 (752)— (271)1,773 (1,302)
Noninterest income48,714 36,226 16,709 15,860 2,310 1,908 67,733 53,994 
Noninterest expense39,666 23,960 33,594 31,336 41,318 41,354 114,578 96,650 
Income (loss) before income tax expense49,223 35,758 34,917 32,078 (35,293)(37,039)48,847 30,797 
Total assets455,540 373,019 3,914,924 3,457,004 3,088,161 2,898,155 7,458,625 6,728,178 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,130,524 5,573,768 7,550 11,177 168,902 125,854 6,306,976 5,710,799 
Nine Months Ended June 30,
Net interest income$116,373 $79,323 $142,149 $136,923 $24,405 $11,318 $282,927 $227,564 
Provision for (reversal of) credit losses35,402 30,667 12,860 13,045 50 (12,526)48,312 31,186 
Noninterest income200,029 158,696 45,247 50,354 15,272 41,301 260,548 250,351 
Noninterest expense124,070 73,509 105,189 95,845 117,514 112,892 346,773 282,246 
Income (loss) before income tax expense156,930 133,843 69,347 78,387 (77,887)(47,747)148,390 164,483 
Total assets455,540 373,019 3,914,924 3,457,004 3,088,161 2,898,155 7,458,625 6,728,178 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,130,524 5,573,768 7,550 11,177 168,902 125,854 6,306,976 5,710,799 
v3.23.2
FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUES OF FINANCIAL INSTRUMENTS
ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

Debt Securities Available for Sale and Held to Maturity. Debt securities available for sale are recorded at fair value on a recurring basis and debt securities held to maturity are carried at amortized cost.
The fair value of debt securities available for sale, categorized primarily as Level 2, is recorded using prices obtained from independent asset pricing services that are based on observable transactions, but not quoted markets. Management reviews the prices obtained from independent asset pricing services for unusual fluctuations and compares to current market trading activity.

Equity Securities. Marketable equity securities and certain non-marketable equity securities are recorded at fair value on a recurring basis. The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

The following tables summarize the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 At June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,750 $— $18,750 $— 
SBA securities90,605 — 90,605 — 
Obligations of states and political subdivisions2,311 — 2,311 — 
Non-bank qualified obligations of states and political subdivisions238,375 — 238,375 — 
Asset-backed securities254,566 — 254,566 — 
Mortgage-backed securities1,309,664 — 1,309,664 — 
Total debt securities AFS$1,914,271 $— $1,914,271 $— 
Common equities and mutual funds(1)
$3,527 $3,527 $— $— 
Non-marketable equity securities(2)
$8,469 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$22,187 $— $22,187 $— 
SBA securities97,768 — 97,768 — 
Obligations of states and political subdivisions2,344 — 2,344 — 
Non-bank qualified obligations of states and political subdivisions263,783 — 263,783 — 
Asset-backed securities147,790 — 147,790 — 
Mortgage-backed securities1,348,997 — 1,348,997 — 
Total debt securities AFS$1,882,869 $— $1,882,869 $— 
Common equities and mutual funds(1)
$2,874 $2,874 $— $— 
Non-marketable equity securities(2)
$7,212 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2022.
(2) Consists of certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is individually evaluated for risk of credit loss and repayment is expected to be solely provided by the values of the underlying collateral, the Company measures fair value on a nonrecurring basis. Fair value is determined by the fair value of the underlying collateral less estimated costs to sell. The fair value of the collateral is determined based on the internal estimates and/or assessment provided by third-party appraisers and the valuation relies on discount rates ranging from 3% to 18%.
The following table summarizes the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a non-recurring basis:
 At June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$4,113 $— $— $4,113 
    Total loans and leases, net individually evaluated for credit loss4,113 — — 4,113 
Total$4,113 $— $— $4,113 
 At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$1,575 $— $— $1,575 
    Total loans and leases, net individually evaluated for credit loss1,575 — — 1,575 
Foreclosed assets, net1 — — 1 
Total$1,576 $— $— $1,576 
 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
June 30, 2023
Fair Value at
September 30, 2022
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$4,113 $1,575 Market approach
Appraised values(1)
3% - 18%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs and other inputs in a range of 3% to 18%.

Management discloses the estimated fair value of financial instruments, including assets and liabilities on and off the Condensed Consolidated Statements of Financial Condition, for which it is practicable to estimate fair value. These fair value estimates were made at June 30, 2023 and September 30, 2022 based on relevant market information and information about financial instruments. Fair value estimates are intended to represent the price at which an asset could be sold or a liability could be settled. However, since there is no active market for certain financial instruments of the Company, the estimates of fair value are subjective in nature, involve uncertainties, and include matters of significant judgment. Changes in assumptions as well as tax considerations could significantly affect the estimated values. Accordingly, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company:
 At June 30, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$515,271 $515,271 $515,271 $— $— 
Debt securities available for sale1,914,271 1,914,271 — 1,914,271 — 
Debt securities held to maturity37,725 33,670 — 33,670 — 
Common equities and mutual funds(1)
3,527 3,527 3,527 — — 
Non-marketable equity securities(1)(2)
20,533 20,533 — 12,064 — 
Loans held for sale87,351 87,351 — 87,351 — 
Loans and leases4,068,511 4,006,176 — — 4,006,176 
Federal Reserve Bank and Federal Home Loan Bank stocks30,890 30,890 — 30,890 — 
Accrued interest receivable22,332 22,332 22,332 — — 
Financial liabilities
Deposits6,306,976 6,306,818 6,301,147 5,671 — 
Overnight federal funds purchased230,000 230,000 230,000 — — 
Other short- and long-term borrowings34,178 31,853 — 31,853 — 
Accrued interest payable802 802 802 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2022
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$388,038 $388,038 $388,038 $— $— 
Debt securities available for sale1,882,869 1,882,869 — 1,882,869 — 
Debt securities held to maturity41,682 38,171 — 38,171 — 
Common equities and mutual funds(1)
2,874 2,874 2,874 — — 
Non-marketable equity securities(1)(2)
22,526 22,526 — 15,314 — 
Loans held for sale21,071 21,071 — 21,071 — 
Loans and leases3,529,280 3,525,803 — — 3,525,803 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable17,979 17,979 17,979 — — 
Financial liabilities
Deposits5,866,037 5,865,854 5,858,283 7,571 — 
Other short- and long-term borrowings36,028 35,986 — 35,986 — 
Accrued interest payable192 192 192 — — 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2022.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.23.2
SUBSEQUENT EVENTS
 9 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTSManagement has evaluated subsequent events that occurred after June 30, 2023. During this period, up to the filing date of this Quarterly Report on Form 10-Q, management did not identify any material subsequent events that would require recognition or disclosure in our Condensed Consolidated Financial Statements as of or for the quarter ended June 30, 2023.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure        
Net income attributable to Pathward Financial, Inc. $ 45,096 $ 22,391 $ 127,709 $ 132,966
v3.23.2
Insider Trading Arrangements
 3 Months Ended 9 Months Ended
Jun. 30, 2023
shares
Jun. 30, 2023
shares
Glen Herrick [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
Name and TitleDate Adopted
Character of Trading Arrangement(1)
Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement
Duration(2)
Date Terminated
Glen Herrick, EVP Chief Financial Officer
May 16, 2023
Rule 10b5-1 Trading Arrangement(3)
Up to 20,000 shares to be sold
November 1, 2023 to January 30, 2024Not applicable
(1) Except as indicated by footnote, the trading arrangement marked as "Rule 10b5-1 Trading Arrangement" in the above table (the "Trading Arrangement") is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the "Rule").
(2) The Trading Arrangement permits transactions through: (a) the termination or suspension of the Trading Arrangement, or (b) the earliest to occur of (i) the date set forth in the above table, (ii) completion of all sales under the Trading Arrangement, (iii) receipt of notice of Mr. Herrick’s death, or (iv) receipt of notice of the commencement of any proceedings in respect of or triggered by Mr. Herrick’s bankruptcy or insolvency. The Trading Arrangement only permits transactions after expiration of the applicable mandatory cooling-off period under the Rule.
(3) Compiled with the then-applicable requirements of Rule 10b5-1(c) when adopted in May 2023.
Name Glen Herrick  
Title Chief Financial Officer  
Adoption Date May 16, 2023  
Arrangement Duration 61 days  
Aggregate Available 20,000 20,000
Director and Officer Trading Arrangement [Member]    
Trading Arrangements, by Individual    
Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Policies)
 9 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Adopted ASUs
Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2022 remain substantially unchanged, except for the following:

PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Pathward Financial, Inc. ("Pathward Financial" or the “Company” or "us"), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include Pathward®, National Association ("Pathward®, N.A." or "Pathward" or "the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of Pathward, N.A. which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company.

In addition, the Company is a variable interest holder in certain entities in which the equity holders do not have the characteristics of a controlling financial interest or where the entity does not have enough equity at risk to finance its activities without additional subordinated financial support (referred to as variable interest entities or "VIEs"). The Company's variable interest arises from contractual ownership or other monetary interests that change with fluctuations in the VIE's net asset value. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impacts the VIE's economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. To determine whether or not a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of the Company's involvement with the VIE. Further, the Company assesses whether or not the Company is the primary beneficiary of a VIE on an ongoing basis. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.

Noncontrolling interests represent the portion of net income and equity attributable to third-party owners of consolidated subsidiaries that are not wholly-owned by Pathward Financial. All of the Company's noncontrolling interests relate to the Company's Commercial Finance business line.
Variable Interest Entities
In the normal course of business, the Company enters into off-balance sheet transactions with special purpose entities ("SPEs"), which can be structured as corporations, trusts, limited liability companies, or partnerships and are established for a limited purpose. Currently, the Company utilizes a SPE facility for certain term lending products within the Company's Commercial Finance business line. The Company participated in the structuring of the SPE, has a minority ownership interest in the SPE, and acts as servicer for the SPE in exchange for a servicing fee. Pathward is not the primary beneficiary of the SPE as our risk of loss or right to benefits from the SPE are not significant. As of June 30, 2023, there are $9.9 million of commercial term loans held at the SPE, and the Company’s equity investment in the SPE is $0.9 million. The Company’s maximum exposure to loss from the SPE is limited to its equity investment. As of June 30, 2023, there are $3.0 million of commercial term loans classified as held for sale related to this VIE. Additional information on loans transferred during the period is included in Note 5. Loans and Leases, Net.

Loan Servicing and Transfers of Financial Assets
Transfers of loans, portions of loans meeting the definition of a participating interest, and other financial assets are accounted for as sales on the transaction settlement date when control has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of such right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through a repurchase agreement or other means. Upon sale, the loans or other financial assets are derecognized from the Company’s Consolidated Statements of Financial Condition. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the loans or other financial assets remaining on the Company’s Consolidated Statements of Financial Condition and proceeds recognized as a liability.

The Company sells loan participations, generally without recourse, in both the commercial and consumer segments. The Company also sells commercial Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") loans to third parties, generally without recourse. The Bank generally retains the right to service the sold loans for a fee. If the fee is determined commensurate and customary with market terms, no servicing asset or liability is recorded. Any fee that is above or below market terms results in a servicing asset or liability and is included within Other Assets on the Consolidated Statements of Financial Condition.

The following ASU became effective for the Company on October 1, 2022, and did not have a material impact on the Company’s significant accounting policies or Condensed Consolidated Financial Statements:

–ASU 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments.
v3.23.2
SECURITIES (Tables)
 9 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities are presented below.
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
Debt Securities AFS
At June 30, 2023
Corporate securities$25,000 $— $(6,250)$18,750 
SBA securities98,342 — (7,737)90,605 
Obligations of states and political subdivisions2,384 — (73)2,311 
Non-bank qualified obligations of states and political subdivisions272,818 — (34,443)238,375 
Asset-backed securities265,794 — (11,228)254,566 
Mortgage-backed securities1,526,300 — (216,636)1,309,664 
Total debt securities AFS$2,190,638 $— $(276,367)$1,914,271 
At September 30, 2022
Corporate securities$25,000 $— $(2,813)$22,187 
SBA securities105,238 — (7,470)97,768 
Obligations of states and political subdivisions2,469 — (125)2,344 
Non-bank qualified obligations of states and political subdivisions290,754 — (26,971)263,783 
Asset-backed securities160,806 — (13,016)147,790 
Mortgage-backed securities1,581,452 — (232,455)1,348,997 
Total debt securities AFS$2,165,719 $— $(282,850)$1,882,869 
Debt Securities HTM
At June 30, 2023
Non-bank qualified obligations of states and political subdivisions$35,450 $— $(3,822)$31,628 
Mortgage-backed securities2,275 — (233)2,042 
Total debt securities HTM$37,725 $— $(4,055)$33,670 
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$39,093 $— $(3,190)$35,903 
Mortgage-backed securities2,589 — (321)2,268 
Total debt securities HTM$41,682 $— $(3,511)$38,171 
Securities Held to Maturity
Schedule of Unrealized Loss on Investments, AFS
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
At June 30, 2023
Corporate securities$— $— $18,750 $(6,250)$18,750 $(6,250)
SBA securities39,964 (2,048)50,641 (5,689)90,605 (7,737)
Obligations of state and political subdivisions— — 2,311 (73)2,311 (73)
Non-bank qualified obligations of states and political subdivisions38,703 (2,128)198,715 (32,315)237,418 (34,443)
Asset-backed securities98,655 (1,170)155,911 (10,058)254,566 (11,228)
Mortgage-backed securities284,959 (16,159)1,021,679 (200,477)1,306,638 (216,636)
Total debt securities AFS$462,281 $(21,505)$1,448,007 $(254,862)$1,910,288 $(276,367)
At September 30, 2022
Corporate securities$— $— $22,187 $(2,813)$22,187 $(2,813)
SBA securities97,767 (7,470)— — 97,767 (7,470)
Obligations of state and political subdivisions2,345 (125)— — 2,345 (125)
Non-bank qualified obligations of states and political subdivisions195,816 (19,743)67,967 (7,228)263,783 (26,971)
Asset-backed securities64,886 (1,838)82,904 (11,178)147,790 (13,016)
Mortgage-backed securities816,657 (106,583)532,340 (125,872)1,348,997 (232,455)
Total debt securities AFS$1,177,471 $(135,759)$705,398 $(147,091)$1,882,869 $(282,850)
Debt Securities HTM
At June 30, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $31,628 $(3,822)$31,628 $(3,822)
Mortgage-backed securities— — 2,042 (233)2,042 (233)
Total debt securities HTM$— $— $33,670 $(4,055)$33,670 $(4,055)
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$3,984 $(300)$31,919 $(2,890)$35,903 $(3,190)
Mortgage-backed securities2,268 (321)— — 2,268 (321)
Total debt securities HTM$6,252 $(621)$31,919 $(2890)$38,171 $(3,511)
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity
The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features that allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
(Dollars in thousands)At June 30, 2023At September 30, 2022
Securities AFS at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$4,784 $4,728 $718 $715 
Due after one year through five years4,814 4,400 9,921 9,395 
Due after five years through ten years86,500 75,126 89,921 81,819 
Due after ten years568,240 520,353 483,707 441,943 
664,338 604,607 584,267 533,872 
Mortgage-backed securities1,526,300 1,309,664 1,581,452 1,348,997 
Total securities AFS, at fair value$2,190,638 $1,914,271 $2,165,719 $1,882,869 
Securities HTM at Fair Value
Due after ten years$35,450 $31,628 $39,093 $35,903 
35,450 31,628 39,093 35,903 
Mortgage-backed securities2,275 2,042 2,589 2,268 
Total securities HTM, at cost$37,725 $33,670 $41,682 $38,171 
v3.23.2
LOANS AND LEASES, NET (Tables)
 9 Months Ended
Jun. 30, 2023
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans Receivable
Loans and leases consist of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Term lending$1,253,841 $1,090,289 
Asset based lending373,160 351,696 
Factoring351,133 372,595 
Lease financing201,996 210,692 
Insurance premium finance666,265 479,754 
SBA/USDA422,389 359,238 
Other commercial finance171,954 159,409 
Commercial finance3,440,738 3,023,673 
Consumer credit products175,158 144,353 
Other consumer finance24,963 25,306 
Consumer finance200,121 169,659 
Tax services47,194 9,098 
Warehouse finance380,458 326,850 
Total loans and leases4,068,511 3,529,280 
Net deferred loan origination costs4,388 7,025 
Total gross loans and leases4,072,899 3,536,305 
Allowance for credit losses(81,916)(45,947)
Total loans and leases, net$3,990,983 $3,490,358 
Schedule of Loans Purchased and Sold by Portfolio Segment
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Loans Purchased
Loans held for investment:
Commercial finance$— $— $— $3,098 
Warehouse finance9,715 19,657 197,549 105,472 
Total purchases$9,715 $19,657 $197,549 $108,570 
Loans Sold
Loans held for sale:
Commercial finance$11,114 $1,216 $12,263 $48,329 
Consumer finance254,655 173,284 857,869 696,891 
Community banking— — — 153,222 
Loans held for investment:
Commercial finance— — — 15,549 
Community banking— — — 30,235 
Total sales$265,769 $174,500 $870,132 $944,226 
Sales-type Lease, Lease Income The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Carrying amount$212,275 $216,880 
Unguaranteed residual assets13,152 13,037 
Unamortized initial direct costs160 295 
Unearned income(23,431)(19,225)
Total net investment in direct financing and sales-type leases$202,156 $210,987 
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$23,963 
202476,232 
202546,603 
202624,781 
202715,865 
Thereafter24,831 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases212,275 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$212,275 
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
Three Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$28,415 $250 $(2,852)$825 $26,638 
Asset based lending1,081 68 — 154 1,303 
Factoring5,588 493 (140)1 5,942 
Lease financing4,549 (355)(302)(26)3,866 
Insurance premium finance1,263 1,094 (443)158 2,072 
SBA/USDA2,640 24 — — 2,664 
Other commercial finance4,332 (253)— — 4,079 
Commercial finance47,868 1,321 (3,737)1,112 46,564 
Consumer credit products1,219 522 — — 1,741 
Other consumer finance1,746 216 (1,860)— 102 
Consumer finance2,965 738 (1,860)— 1,843 
Tax services33,094 (229)(404)671 33,132 
Warehouse finance377 — — — 377 
Total loans and leases84,304 1,830 (6,001)1,783 81,916 
Unfunded commitments(1)
356 (57)— — 299 
Total $84,660 $1,773 $(6,001)$1,783 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$27,568 $9 $(3,086)$1,316 $25,807 
Asset based lending2,583 (1,553)— 295 1,325 
Factoring6,526 533 (194)268 7,133 
Lease financing6,471 (429)— 107 6,149 
Insurance premium finance1,057 583 (230)41 1,451 
SBA/USDA2,943 338 (408)25 2,898 
Other commercial finance1,197 (79)— — 1,118 
Commercial finance48,345 (598)(3,918)2,052 45,881 
Consumer credit products1,621 (170)— — 1,451 
Other consumer finance7,388 (205)(2,428)88 4,843 
Consumer finance9,009 (375)(2,428)88 6,294 
Tax services30,757 (166)(7,998)6 22,599 
Warehouse finance441 (9)— — 432 
Total loans and leases88,552 (1,148)(14,344)2,146 75,206 
Unfunded commitments(1)
551 (154)— — 397 
Total $89,103 $(1,302)$(14,344)$2,146 $75,603 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $7,895 $(7,374)$1,496 $26,638 
Asset based lending1,050 2,972 (2,873)154 1,303 
Factoring6,556 (311)(323)20 5,942 
Lease financing5,902 (976)(1,315)255 3,866 
Insurance premium finance1,450 1,202 (852)272 2,072 
SBA/USDA3,263 (625)— 26 2,664 
Other commercial finance1,310 2,769 — — 4,079 
Commercial finance44,152 12,926 (12,737)2,223 46,564 
Consumer credit products1,400 341 — — 1,741 
Other consumer finance63 2,232 (2,193)— 102 
Consumer finance1,463 2,573 (2,193)— 1,843 
Tax services5 32,830 (2,135)2,432 33,132 
Warehouse finance327 50 — — 377 
Total loans and leases45,947 48,379 (17,065)4,655 81,916 
Unfunded commitments(1)
366 (67)— — 299 
Total $46,312 $48,312 $(17,065)$4,655 $82,215 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Nine Months Ended June 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $1,104 $(6,993)$2,345 $25,807 
Asset based lending1,726 (817)(16)432 1,325 
Factoring3,997 13,857 (11,057)336 7,133 
Lease financing7,629 (1,647)(112)279 6,149 
Insurance premium finance1,394 374 (514)197 1,451 
SBA/USDA2,978 517 (624)27 2,898 
Other commercial finance1,168 (50)— — 1,118 
Commercial finance48,243 13,338 (19,316)3,616 45,881 
Consumer credit products1,242 209 — — 1,451 
Other consumer finance6,112 2,513 (4,049)267 4,843 
Consumer finance7,354 2,722 (4,049)267 6,294 
Tax services2 28,093 (8,253)2,757 22,599 
Warehouse finance420 12 — — 432 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 31,479 (31,618)7,064 75,206 
Unfunded commitments(1)
690 (293)— — 397 
Total $68,971 $31,186 $(31,618)$7,064 $75,603 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Impaired Loans and Leases
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)At June 30, 2023At September 30, 2022
Term lending$4,767 $2,885 
Asset based lending14,414 — 
Factoring— 550 
Lease financing591 2,787 
SBA/USDA750 1,199 
Commercial finance(1)
20,522 7,421 
Total$20,522 $7,421 
(1) For Commercial Finance, collateral dependent financial assets have collateral in the form of cash, equipment, or other business assets.
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)2023202220232022
Term lending$12,637 $11,114 $10,397 $11,908 
Asset based lending15,792 3,500 8,452 4,502 
Factoring545 1,903 592 7,980 
Lease financing2,675 3,529 3,308 3,194 
SBA/USDA1,261 1,776 1,353 1,152 
Commercial finance32,910 21,822 24,102 28,736 
Total loans and leases$32,910 $21,822 $24,102 $28,736 
Asset Classification by Credit Quality Indicators of Loans and Leases 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
At June 30, 202320232022202120202019Prior
Term lending
Pass$313,587 $201,918 $119,763 $82,834 $18,380 $203,059 $— $939,541 
Watch47,005 50,336 61,125 11,832 6,964 14,399 — 191,661 
Special mention1,174 12,080 11,369 1,383 1,106 1,753 — 28,865 
Substandard2,715 34,238 19,320 25,326 4,485 2,135 — 88,219 
Doubtful103 1,934 1,110 931 235 1,242 — 5,555 
Total364,584 300,506 212,687 122,306 31,170 222,588 — 1,253,841 
Asset based lending
Pass— — — — — — 163,401 163,401 
Watch— — — — — — 163,215 163,215 
Special mention— — — — — — 23,264 23,264 
Substandard— — — — — — 15,748 15,748 
Doubtful— — — — — — 7,532 7,532 
Total— — — — — — 373,160 373,160 
Factoring
Pass— — — — — — 257,636 257,636 
Watch— — — — — — 71,351 71,351 
Special mention— — — — — — 11,875 11,875 
Substandard— — — — — — 10,271 10,271 
Total— — — — — — 351,133 351,133 
Lease financing
Pass8,249 18,748 21,365 34,127 2,091 50,807 — 135,387 
Watch190 10,301 11,617 3,370 2,222 477 — 28,177 
Special mention— — 1,374 602 281 — — 2,257 
Substandard— 8,185 8,168 3,960 6,269 9,278 — 35,860 
Doubtful— — 81 100 — 134 — 315 
Total8,439 37,234 42,605 42,159 10,863 60,696 — 201,996 
Insurance premium finance
Pass655,755 8,822 9 — — — — 664,586 
Watch374 239 — — — — — 613 
Special mention115 74 — — — — — 189 
Substandard55 429 — — — — — 484 
Doubtful80 313 — — — — — 393 
Total656,379 9,877 9 — — — — 666,265 
SBA/USDA
Pass91,797 198,975 28,116 45,070 9,288 18,745 — 391,991 
Watch— — 326 53 358 2,391 — 3,128 
Special mention— — — — — — — — 
Substandard252 1,680 1,156 7,185 8,303 8,694 — 27,270 
Total92,049 200,655 29,598 52,308 17,949 29,830 — 422,389 
Other commercial finance
Pass3,425 18,899 32,908 1,094 10,212 73,785 — 140,323 
Watch1,740 — — — — — — 1,740 
Special mention— — 18,000 — — — — 18,000 
Substandard2,789 464 8,379 — — 259 — 11,891 
Total7,954 19,363 59,287 1,094 10,212 74,044 — 171,954 
Warehouse finance
Pass— — — — — — 380,458 380,458 
Total— — — — — — 380,458 380,458 
Total loans and leases
Pass1,072,813 447,362 202,161 163,125 39,971 346,396 801,495 3,073,323 
Watch49,309 60,876 73,068 15,255 9,544 17,267 234,566 459,885 
Special mention1,289 12,154 30,743 1,985 1,387 1,753 35,139 84,450 
Substandard5,811 44,996 37,023 36,471 19,057 20,366 26,019 189,743 
Doubtful183 2,247 1,191 1,031 235 1,376 7,532 13,795 
Total$1,129,405 $567,635 $344,186 $217,867 $70,194 $387,158 $1,104,751 $3,821,196 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 99,114 121,429 73,717 — 1,090,289 
Asset based lending
Pass— — — — — — 154,494 154,494 
Watch— — — — — — 162,990 162,990 
Special mention— — — — — — 13,770 13,770 
Substandard— — — — — — 20,442 20,442 
Total— — — — — — 351,696 351,696 
Factoring
Pass— — — — — — 254,883 254,883 
Watch— — — — — — 86,219 86,219 
Special mention— — — — — — 9,174 9,174 
Substandard— — — — — — 22,319 22,319 
Total— — — — — — 372,595 372,595 
Lease financing
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 40,474 56,538 28,874 24,305 — 316,610 
Watch— 13,836 1,266 702 — 710 — 16,514 
Special mention— 211 — 869 — — — 1,080 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 23,145 26,040 20,458 23,098 60,782 — 159,409 
Warehouse finance
Pass— — — — — — 294,350 294,350 
Special mention— — — — — — 32,500 32,500 
Total— — — — — — 326,850 326,850 
Total loans and leases
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 584 1,749 960 204 192 — 4,022 
Total$873,673 $538,519 $306,740 $218,730 $193,876 $167,844 $1,051,141 $3,350,523 
Past Due Loans and Leases
Past due loans and leases were as follows:
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At June 30, 202330-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$10 $— $— $10 $87,341 $87,351 $— $— $— 
Term lending30,464 3,423 8,074 41,961 1,211,880 1,253,841 1,862 13,207 15,069 
Asset based lending— — 218 218 372,942 373,160 218 14,407 14,625 
Factoring— — — — 351,133 351,133 — 364 364 
Lease financing2,945 729 1,940 5,614 196,382 201,996 1,627 1,494 3,121 
Insurance premium finance1,884 874 2,394 5,152 661,113 666,265 2,394 — 2,394 
SBA/USDA51 908 1,002 1,961 420,428 422,389 349 698 1,047 
Other commercial finance— — 92 92 171,862 171,954 92 — 92 
Commercial finance35,344 5,934 13,720 54,998 3,385,740 3,440,738 6,542 30,170 36,712 
Consumer credit products2,512 2,030 2,058 6,600 168,558 175,158 2,058 — 2,058 
Other consumer finance26 20 29 75 24,888 24,963 29 — 29 
Consumer finance2,538 2,050 2,087 6,675 193,446 200,121 2,087 — 2,087 
Tax services— 47,194 — 47,194 — 47,194 — — — 
Warehouse finance— — — — 380,458 380,458 — — — 
Total loans and leases held for investment37,882 55,178 15,807 108,867 3,959,644 4,068,511 8,629 30,170 38,799 
Total loans and leases$37,892 $55,178 $15,807 $108,877 $4,046,985 $4,155,862 $8,629 $30,170 $38,799 
(Dollars in thousands)Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
At September 30, 202230-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 2,576 4,458 21,100 1,069,189 1,090,289 2,035 7,576 9,611 
Asset based lending— — 68 68 351,628 351,696 39 29 68 
Factoring— — — — 372,595 372,595 — 569 569 
Lease financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 1,379 1,628 5,557 474,197 479,754 1,628 — 1,628 
SBA/USDA— — — — 359,238 359,238 — 1,451 1,451 
Other commercial finance— — — — 159,409 159,409 — — — 
Commercial finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
Consumer finance3,322 2,609 2,793 8,724 160,935 169,659 2,793 — 2,793 
Tax services— — 8,873 8,873 225 9,098 8,873 — 8,873 
Warehouse finance— — — — 326,850 326,850 — — — 
Total loans and leases held for investment28,203 8,817 19,534 56,554 3,472,726 3,529,280 15,808 13,375 29,183 
Total loans and leases$28,203 $8,817 $19,534 $56,554 $3,493,797 $3,550,351 $15,808 $13,375 $29,183 
Financing Receivable, Nonaccrual
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
At June 30, 202320232022202120202019Prior
Term lending$103 $3,819 $2,245 $2,017 $3,380 $1,643 $— $13,207 $— 
Asset based lending— — — — — — 14,407 14,407 14,407 
Factoring— — — — — — 364 364 — 
Lease financing— 269 596 — — 629 — 1,494 591 
SBA/USDA— 401 12 32 — 253 — 698 401 
Commercial finance103 4,489 2,853 2,049 3,380 2,525 14,771 30,170 15,399 
Total nonaccrual loans and leases$103 $4,489 $2,853 $2,049 $3,380 $2,525 $14,771 $30,170 $15,399 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202220222021202020192018Prior
Term lending$251 $1,110 $1,964 $989 $3,096 $166 $— $7,576 $2,885 
Asset based lending— — — — — — 29 29 — 
Factoring— — — — — — 569 569 550 
Lease financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 1,420 5,605 1,002 3,104 418 598 13,375 4,634 
Total nonaccrual loans and leases$1,228 $1,420 $5,605 $1,002 $3,104 $418 $598 $13,375 $4,634 
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
At June 30, 202320232022202120202019Prior
Term lending$128 $917 $658 $107 $52 $— $— $1,862 
Asset based lending— — — — — — 218 218 
Lease financing— 479 969 152 20 7 — 1,627 
Insurance premium finance1,149 1,241 4 — — — — 2,394 
SBA/USDA— 349 — — — — — 349 
Other commercial finance— — — — — 92 — 92 
Commercial finance1,277 2,986 1,631 259 72 99 218 6,542 
Consumer credit products335 1,239 415 50 19 — — 2,058 
Other consumer finance— — — — — — 29 29 
Consumer finance335 1,239 415 50 19 — 29 2,087 
Total 90 days or more delinquent and accruing$1,612 $4,225 $2,046 $309 $91 $99 $247 $8,629 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202220222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808 
v3.23.2
EARNINGS PER COMMON SHARE ("EPS") (Tables)
 9 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands, except per share data)2023202220232022
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$45,096 $22,391 $127,709 $132,966 
Dividends and undistributed earnings allocated to participating securities(690)(377)(1,920)(2,166)
Basic net earnings available to common stockholders44,406 22,014 125,789 130,800 
Undistributed earnings allocated to nonvested restricted stockholders670 352 1,858 2,093 
Reallocation of undistributed earnings to nonvested restricted stockholders(667)(352)(1,852)(2,092)
Diluted net earnings available to common stockholders$44,409 $22,014 $125,795 $130,801 
Total weighted-average basic common shares outstanding26,346,693 28,868,136 27,152,773 29,444,979 
Effect of dilutive securities(1)
Performance share units100,339 — 86,028 9,607 
Total effect of dilutive securities100,339 — 86,028 9,607 
Total weighted-average diluted common shares outstanding26,447,032 28,868,136 27,238,801 29,454,586 
Net earnings per common share:
Basic earnings per common share$1.69 $0.76 $4.63 $4.44 
Diluted earnings per common share(2)
$1.68 $0.76 $4.62 $4.44 
(1) Represents the effect of the assumed exercise of stock options and vesting of performance share units and restricted stock, as applicable, utilizing the treasury stock method.
(2) Excluded from the computation of diluted earnings per share for the three months ended June 30, 2023 and 2022, respectively, were 409,666 and 493,800 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive. Excluded from the computation of diluted earnings per share for the nine months ended June 30, 2023 and 2022, respectively, were 414,539 and 487,538 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.23.2
RENTAL EQUIPMENT, NET (Tables)
 9 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Rental Equipment
Rental equipment consists of the following:
(Dollars in thousands)June 30, 2023September 30, 2022
Computers and IT networking equipment$25,681 $21,669 
Motor vehicles and other123,374 107,648 
Other furniture and equipment49,214 34,254 
Solar panels and equipment137,809 133,765 
Total336,078 297,336 
Accumulated depreciation(113,122)(94,355)
Unamortized initial direct costs1,256 1,390 
Net book value$224,212 $204,371 
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments expected to be received for operating leases at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$11,844 
202440,640 
202533,086 
202623,247 
202715,506 
Thereafter17,484 
Total $141,807 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$1,091 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 33,648 
Discount(4,003)
Total operating lease liabilities$29,645 
v3.23.2
GOODWILL AND INTANGIBLE ASSETS (Tables)
 9 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The changes in the carrying amount of the Company’s intangible assets were as follows:
(Dollars in thousands)
Trademark(1)
Non-Compete
Customer Relationships(2)
All Others(3)
Total
Intangible Assets
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Amortization during the period(868)— (2,595)(398)(3,861)
At June 30, 2023$7,737 $— $9,800 $4,293 $21,830 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,887)(2,481)(61,370)(5,429)(76,167)
Accumulated impairment— — (10,918)(218)(11,136)
At June 30, 2023$7,737 $— $9,800 $4,293 $21,830 
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Acquisitions during the period— — — 1 1 
Amortization during the period(871)(40)(3,884)(393)(5,188)
Write-offs during the period— — (670)(203)(873)
At June 30, 2022$8,952 $— $13,314 $4,822 $27,088 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(5,672)(2,481)(57,856)(4,900)(70,909)
Accumulated impairment— — (10,918)(218)(11,136)
At June 30, 2022$8,952 $— $13,314 $4,822 $27,088 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 10-30 years. Amortized using the accelerated method.
(3) Book amortization period of 3-20 years. Amortized using the straight line method.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense Estimated amortization expense of intangible assets in the remaining three months of fiscal 2023 and subsequent fiscal years at June 30, 2023 was as follows:
(Dollars in thousands)
Remaining in 2023$1,082 
20244,123 
20253,561 
20263,215 
20272,569 
Thereafter7,280 
Total anticipated intangible amortization$21,830 
v3.23.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments expected to be received for operating leases at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$11,844 
202440,640 
202533,086 
202623,247 
202715,506 
Thereafter17,484 
Total $141,807 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2023 were as follows:
(Dollars in thousands)
Remaining in 2023$1,091 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 33,648 
Discount(4,003)
Total operating lease liabilities$29,645 
Weighted-Average Discount Rate and Remaining Lease Term for Operating Leases
The weighted-average discount rate and remaining lease term for operating leases at June 30, 2023 were as follows:
Weighted-average discount rate2.37 %
Weighted-average remaining lease term (years)9.82

The components of total lease costs for operating leases were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2023202220232022
Lease expense$978 $1,119 $2,974 $3,375 
Short-term and variable lease cost22 58 106 133 
ROU asset impairment— 670 — 670 
Sublease income(368)(375)(1,040)(906)
Total lease cost for operating leases$632 $1,472 $2,040 $3,272 
v3.23.2
STOCK COMPENSATION (Tables)
 9 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Nonvested Share Activity The following tables show the activity of nonvested (restricted) shares and PSUs granted, vested, or forfeited under the 2002 Omnibus Incentive Plan for the nine months ended June 30, 2023. There were no options granted, exercised, or forfeited under this plan during the nine months ended June 30, 2023.
Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2022
474,348 $36.52 
Granted160,881 38.95 
Vested(209,440)36.59 
Forfeited or expired(33,293)48.90 
Nonvested shares outstanding, June 30, 2023
392,496 $36.42 
Performance share units outstanding, September 30, 2022
96,689 $42.59 
Granted(1)
59,115 38.94 
Vested— — 
Forfeited or expired— — 
Performance share units outstanding, June 30, 2023
155,804 $41.20 
(1) The number of PSUs granted reflects the target number of PSUs able to be earned under a given award.
v3.23.2
INCOME TAXES (Tables)
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
The table below compares the income tax expense components for the periods presented.
Nine Months Ended June 30,
(Dollars in thousands)20232022
Provision at statutory rate$30,808 $34,063 
Tax-exempt income(600)(541)
State income taxes6,109 6,728 
Interim period effective rate adjustment(3,065)(2,849)
Tax credit investments, net - federal(13,669)(6,994)
Research tax credit(805)(355)
IRC 162(m) nondeductible compensation928 801 
Other, net(710)(1,617)
Income tax expense$18,996 $29,236 
Effective tax rate12.80 %17.77 %
v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 9 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Condensed Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Three Months Ended June 30,20232022202320222023202220232022
Net interest income(1)
$40,683 $23,213 $53,067 $46,802 $3,715 $2,136 $97,465 $72,151 
Noninterest income:
Refund transfer product fees8,262 10,289 — — — — 8,262 10,289 
Refund advance fee income(1)
(927)(20)— — — — (927)(20)
Card and deposit fees39,450 24,673 253 252 5 10 39,708 24,935 
Rental income(1)
— — 13,756 11,890 224 192 13,980 12,082 
Gain on sale of securities(1)
— — — — 9 198 9 198 
Gain on sale of other(1)
— — 812 1,239 — — 812 1,239 
Other income(1)
1,929 1,284 1,888 2,479 2,072 1,508 5,889 5,271 
Total noninterest income48,714 36,226 16,709 15,860 2,310 1,908 67,733 53,994 
Revenue$89,397 $59,439 $69,776 $62,662 $6,025 $4,044 $165,198 $126,145 
Nine Months Ended June 30,
Net interest income(1)
$116,373 $79,323 $142,149 $136,923 $24,405 $11,318 $282,927 $227,564 
Noninterest income:
Refund transfer product fees39,144 38,674 — — — — 39,144 38,674 
Refund advance fee income(1)
37,685 40,513 — — — — 37,685 40,513 
Card and deposit fees118,730 76,075 766 728 17 22 119,513 76,825 
Rental income(1)
— — 39,008 34,192 620 342 39,628 34,534 
Gain on sale of securities(1)
— — — — 91 595 91 595 
Gain on sale of trademarks— — — — 10,000 50,000 10,000 50,000 
Gain (loss) on sale of other(1)
— — 566 7,331 — (8,932)566 (1,601)
Other income(1)
4,470 3,434 4,907 8,103 4,544 (726)13,921 10,811 
Total noninterest income200,029 158,696 45,247 50,354 15,272 41,301 260,548 250,351 
Revenue$316,402 $238,019 $187,396 $187,277 $39,677 $52,619 $543,475 $477,915 
(1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.
v3.23.2
SEGMENT REPORTING (Tables)
 9 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information of Entity
The following tables present segment data for the Company:
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Three Months Ended June 30,20232022202320222023202220232022
Net interest income$40,683 $23,213 $53,067 $46,802 $3,715 $2,136 $97,465 $72,151 
Provision for (reversal of) credit losses508 (279)1,265 (752)— (271)1,773 (1,302)
Noninterest income48,714 36,226 16,709 15,860 2,310 1,908 67,733 53,994 
Noninterest expense39,666 23,960 33,594 31,336 41,318 41,354 114,578 96,650 
Income (loss) before income tax expense49,223 35,758 34,917 32,078 (35,293)(37,039)48,847 30,797 
Total assets455,540 373,019 3,914,924 3,457,004 3,088,161 2,898,155 7,458,625 6,728,178 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,130,524 5,573,768 7,550 11,177 168,902 125,854 6,306,976 5,710,799 
Nine Months Ended June 30,
Net interest income$116,373 $79,323 $142,149 $136,923 $24,405 $11,318 $282,927 $227,564 
Provision for (reversal of) credit losses35,402 30,667 12,860 13,045 50 (12,526)48,312 31,186 
Noninterest income200,029 158,696 45,247 50,354 15,272 41,301 260,548 250,351 
Noninterest expense124,070 73,509 105,189 95,845 117,514 112,892 346,773 282,246 
Income (loss) before income tax expense156,930 133,843 69,347 78,387 (77,887)(47,747)148,390 164,483 
Total assets455,540 373,019 3,914,924 3,457,004 3,088,161 2,898,155 7,458,625 6,728,178 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,130,524 5,573,768 7,550 11,177 168,902 125,854 6,306,976 5,710,799 
v3.23.2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following tables summarize the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 At June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,750 $— $18,750 $— 
SBA securities90,605 — 90,605 — 
Obligations of states and political subdivisions2,311 — 2,311 — 
Non-bank qualified obligations of states and political subdivisions238,375 — 238,375 — 
Asset-backed securities254,566 — 254,566 — 
Mortgage-backed securities1,309,664 — 1,309,664 — 
Total debt securities AFS$1,914,271 $— $1,914,271 $— 
Common equities and mutual funds(1)
$3,527 $3,527 $— $— 
Non-marketable equity securities(2)
$8,469 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$22,187 $— $22,187 $— 
SBA securities97,768 — 97,768 — 
Obligations of states and political subdivisions2,344 — 2,344 — 
Non-bank qualified obligations of states and political subdivisions263,783 — 263,783 — 
Asset-backed securities147,790 — 147,790 — 
Mortgage-backed securities1,348,997 — 1,348,997 — 
Total debt securities AFS$1,882,869 $— $1,882,869 $— 
Common equities and mutual funds(1)
$2,874 $2,874 $— $— 
Non-marketable equity securities(2)
$7,212 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2022.
(2) Consists of certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a non-recurring basis:
 At June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$4,113 $— $— $4,113 
    Total loans and leases, net individually evaluated for credit loss4,113 — — 4,113 
Total$4,113 $— $— $4,113 
 At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$1,575 $— $— $1,575 
    Total loans and leases, net individually evaluated for credit loss1,575 — — 1,575 
Foreclosed assets, net1 — — 1 
Total$1,576 $— $— $1,576 
Quantitative Information about Level 3 Fair Value Measurements
 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
June 30, 2023
Fair Value at
September 30, 2022
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$4,113 $1,575 Market approach
Appraised values(1)
3% - 18%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs and other inputs in a range of 3% to 18%.
Carrying Amount and Estimated Fair Value of Financial Instruments
The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company:
 At June 30, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$515,271 $515,271 $515,271 $— $— 
Debt securities available for sale1,914,271 1,914,271 — 1,914,271 — 
Debt securities held to maturity37,725 33,670 — 33,670 — 
Common equities and mutual funds(1)
3,527 3,527 3,527 — — 
Non-marketable equity securities(1)(2)
20,533 20,533 — 12,064 — 
Loans held for sale87,351 87,351 — 87,351 — 
Loans and leases4,068,511 4,006,176 — — 4,006,176 
Federal Reserve Bank and Federal Home Loan Bank stocks30,890 30,890 — 30,890 — 
Accrued interest receivable22,332 22,332 22,332 — — 
Financial liabilities
Deposits6,306,976 6,306,818 6,301,147 5,671 — 
Overnight federal funds purchased230,000 230,000 230,000 — — 
Other short- and long-term borrowings34,178 31,853 — 31,853 — 
Accrued interest payable802 802 802 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2022
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$388,038 $388,038 $388,038 $— $— 
Debt securities available for sale1,882,869 1,882,869 — 1,882,869 — 
Debt securities held to maturity41,682 38,171 — 38,171 — 
Common equities and mutual funds(1)
2,874 2,874 2,874 — — 
Non-marketable equity securities(1)(2)
22,526 22,526 — 15,314 — 
Loans held for sale21,071 21,071 — 21,071 — 
Loans and leases3,529,280 3,525,803 — — 3,525,803 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable17,979 17,979 17,979 — — 
Financial liabilities
Deposits5,866,037 5,865,854 5,858,283 7,571 — 
Other short- and long-term borrowings36,028 35,986 — 35,986 — 
Accrued interest payable192 192 192 — — 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2022.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.23.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans $ 4,068,511 $ 3,529,280
Loans held for sale 87,351 21,071
National Lending | Commercial finance    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans 3,440,738 $ 3,023,673
Special Purpose Entity    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Equity investment 900  
Special Purpose Entity | National Lending | Commercial finance    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Loans 9,900  
Loans held for sale $ 3,000  
v3.23.2
SIGNIFICANT EVENTS (Details) - USD ($)
$ in Thousands
 9 Months Ended
Dec. 07, 2021
Jun. 30, 2023
Jun. 30, 2022
Unusual or Infrequent Item, or Both [Line Items]      
Proceeds from sale of trademarks   $ 10,000 $ 50,000
Rebranding      
Unusual or Infrequent Item, or Both [Line Items]      
Cash received in purchase agreement $ 60,000    
Proceeds from sale of trademarks 50,000    
Remaining consideration to be paid $ 10,000    
v3.23.2
SECURITIES - Available for Sale (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Available-for-sale debt securities [Abstract]    
Amortized Cost $ 2,190,638 $ 2,165,719
Fair Value 1,914,271 1,882,869
Amortized Cost    
Due in one year or less 4,784 718
Due after one year through five years 4,814 9,921
Due after five years through ten years 86,500 89,921
Due after ten years 568,240 483,707
Total 664,338 584,267
Mortgage-backed securities 1,526,300 1,581,452
Fair Value    
Due in one year or less 4,728 715
Due after one year through five years 4,400 9,395
Due after five years through ten years 75,126 81,819
Due after ten years 520,353 441,943
Total 604,607 533,872
Mortgage-backed securities 1,309,664 1,348,997
Corporate securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 25,000 25,000
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (6,250) (2,813)
Fair Value 18,750 22,187
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 18,750 22,187
OVER 12 MONTHS, Gross Unrealized (Losses) (6,250) (2,813)
TOTAL, Fair Value 18,750 22,187
TOTAL, Gross Unrealized (Losses) (6,250) (2,813)
SBA securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 98,342 105,238
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (7,737) (7,470)
Fair Value 90,605 97,768
LESS THAN 12 MONTHS, Fair Value 39,964 97,767
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (2,048) (7,470)
OVER 12 MONTHS, Fair Value 50,641 0
OVER 12 MONTHS, Gross Unrealized (Losses) (5,689) 0
TOTAL, Fair Value 90,605 97,767
TOTAL, Gross Unrealized (Losses) (7,737) (7,470)
Obligations of states and political subdivisions    
Available-for-sale debt securities [Abstract]    
Amortized Cost 2,384 2,469
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (73) (125)
Fair Value 2,311 2,344
LESS THAN 12 MONTHS, Fair Value 0 2,345
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 (125)
OVER 12 MONTHS, Fair Value 2,311 0
OVER 12 MONTHS, Gross Unrealized (Losses) (73) 0
TOTAL, Fair Value 2,311 2,345
TOTAL, Gross Unrealized (Losses) (73) (125)
Non-bank qualified obligations of states and political subdivisions    
Available-for-sale debt securities [Abstract]    
Amortized Cost 272,818 290,754
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (34,443) (26,971)
Fair Value 238,375 263,783
LESS THAN 12 MONTHS, Fair Value 38,703 195,816
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (2,128) (19,743)
OVER 12 MONTHS, Fair Value 198,715 67,967
OVER 12 MONTHS, Gross Unrealized (Losses) (32,315) (7,228)
TOTAL, Fair Value 237,418 263,783
TOTAL, Gross Unrealized (Losses) (34,443) (26,971)
Asset-backed securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 265,794 160,806
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (11,228) (13,016)
Fair Value 254,566 147,790
LESS THAN 12 MONTHS, Fair Value 98,655 64,886
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (1,170) (1,838)
OVER 12 MONTHS, Fair Value 155,911 82,904
OVER 12 MONTHS, Gross Unrealized (Losses) (10,058) (11,178)
TOTAL, Fair Value 254,566 147,790
TOTAL, Gross Unrealized (Losses) (11,228) (13,016)
Mortgage-backed securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 1,526,300 1,581,452
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (216,636) (232,455)
Fair Value 1,309,664 1,348,997
LESS THAN 12 MONTHS, Fair Value 284,959 816,657
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (16,159) (106,583)
OVER 12 MONTHS, Fair Value 1,021,679 532,340
OVER 12 MONTHS, Gross Unrealized (Losses) (200,477) (125,872)
TOTAL, Fair Value 1,306,638 1,348,997
TOTAL, Gross Unrealized (Losses) (216,636) (232,455)
Total debt securities AFS    
Available-for-sale debt securities [Abstract]    
Amortized Cost 2,190,638 2,165,719
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (276,367) (282,850)
Fair Value 1,914,271 1,882,869
LESS THAN 12 MONTHS, Fair Value 462,281 1,177,471
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (21,505) (135,759)
OVER 12 MONTHS, Fair Value 1,448,007 705,398
OVER 12 MONTHS, Gross Unrealized (Losses) (254,862) (147,091)
TOTAL, Fair Value 1,910,288 1,882,869
TOTAL, Gross Unrealized (Losses) $ (276,367) $ (282,850)
v3.23.2
SECURITIES - Held to Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost $ 37,725 $ 41,682
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (4,055) (3,511)
Fair Value 33,670 38,171
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 6,252
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 (621)
OVER 12 MONTHS, Fair Value 33,670 31,919
OVER 12 MONTHS, Gross Unrealized (Losses) (4,055) (2,890)
TOTAL, Fair Value 33,670 38,171
TOTAL, Gross Unrealized (Losses) (4,055) (3,511)
Amortized Cost    
Due after ten years 35,450 39,093
Total 35,450 39,093
Mortgage-backed securities 2,275 2,589
Fair Value    
Due after ten years 31,628 35,903
Total 31,628 35,903
Mortgage-backed securities 2,042 2,268
Non-bank qualified obligations of states and political subdivisions    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 35,450 39,093
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (3,822) (3,190)
Fair Value 31,628 35,903
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 3,984
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 (300)
OVER 12 MONTHS, Fair Value 31,628 31,919
OVER 12 MONTHS, Gross Unrealized (Losses) (3,822) (2,890)
TOTAL, Fair Value 31,628 35,903
TOTAL, Gross Unrealized (Losses) (3,822) (3,190)
Mortgage-backed securities    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 2,275 2,589
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (233) (321)
Fair Value 2,042 2,268
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 2,268
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 (321)
OVER 12 MONTHS, Fair Value 2,042 0
OVER 12 MONTHS, Gross Unrealized (Losses) (233) 0
TOTAL, Fair Value 2,042 2,268
TOTAL, Gross Unrealized (Losses) $ (233) $ (321)
v3.23.2
SECURITIES - Narrative (Details)
 9 Months Ended
Jun. 30, 2023
USD ($)
security
Jun. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
Debt Securities, Available-for-sale [Line Items]      
AFS number of securities in an unrealized loss position (in securities) | security 203    
Federal reserve bank stock $ 19,700,000   $ 19,700,000
Federal home loan bank stock 11,200,000   9,100,000
Impairment recognized 3,200,000 $ 0  
Marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 3,500,000   2,900,000
Unrealized losses on equity securities 200,000 3,800,000  
Non-marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 8,500,000   7,200,000
Unrealized losses on equity securities 100,000    
Unrealized gains on equity securities   $ 600,000  
Equity securities without readily determinable fair value, amount $ 15,800,000   $ 18,200,000
v3.23.2
LOANS AND LEASES, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Sep. 30, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases $ 4,068,511   $ 3,529,280      
Net deferred loan origination costs 4,388   7,025      
Total gross loans and leases 4,072,899   3,536,305      
Allowance for credit losses (81,916)   (45,947)      
Total loans and leases, net 3,990,983   3,490,358      
National Lending | Term lending            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 1,253,841   1,090,289      
Allowance for credit losses (26,638) $ (28,415) (24,621) $ (25,807) $ (27,568) $ (29,351)
National Lending | Asset based lending            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 373,160   351,696      
Allowance for credit losses (1,303) (1,081) (1,050) (1,325) (2,583) (1,726)
National Lending | Factoring            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 351,133   372,595      
Allowance for credit losses (5,942) (5,588) (6,556) (7,133) (6,526) (3,997)
National Lending | Lease financing            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 201,996   210,692      
Allowance for credit losses (3,866) (4,549) (5,902) (6,149) (6,471) (7,629)
National Lending | Insurance premium finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 666,265   479,754      
Allowance for credit losses (2,072) (1,263) (1,450) (1,451) (1,057) (1,394)
National Lending | SBA/USDA            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 422,389   359,238      
Allowance for credit losses (2,664) (2,640) (3,263) (2,898) (2,943) (2,978)
National Lending | Other commercial finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 171,954   159,409      
Allowance for credit losses (4,079) (4,332) (1,310) (1,118) (1,197) (1,168)
National Lending | Commercial finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 3,440,738   3,023,673      
Allowance for credit losses (46,564) (47,868) (44,152) (45,881) (48,345) (48,243)
National Lending | Consumer credit products            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 175,158   144,353      
Allowance for credit losses (1,741) (1,219) (1,400) (1,451) (1,621) (1,242)
National Lending | Other consumer finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 24,963   25,306      
Allowance for credit losses (102) (1,746) (63) (4,843) (7,388) (6,112)
National Lending | Consumer finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 200,121   169,659      
Allowance for credit losses (1,843) (2,965) (1,463) (6,294) (9,009) (7,354)
National Lending | Tax services            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 47,194   9,098      
Allowance for credit losses (33,132) (33,094) (5) (22,599) (30,757) (2)
National Lending | Warehouse finance            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans and leases 380,458   326,850      
Allowance for credit losses $ (377) $ (377) $ (327) $ (432) $ (441) $ (420)
v3.23.2
LOANS AND LEASES, NET - Additional Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originated loans held for sale $ 941,502 $ 769,672  
Proceeds from sale of loans held-for-sale 870,100 898,400  
Gain (loss) on sale of loans and leases 200 (3,900)  
Loans and leases 4,072,899   $ 3,536,305
Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 3,073,323   2,548,929
Pass | Asset Pledged as Collateral      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 68,200   120,700
Consumer finance portfolio segment      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 200,100   169,700
Tax services loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 47,200   9,100
National Lending | Consumer Finance and SBA/USDA Loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originated loans held for sale 941,500 $ 769,700  
National Lending | Term lending | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 939,541   802,533
National Lending | Asset based lending | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 163,401   154,494
National Lending | Insurance premium finance | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 664,586   478,819
National Lending | SBA/USDA | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases $ 391,991   $ 316,610
v3.23.2
LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans Purchased, Loans held for investment $ 9,715 $ 19,657 $ 197,549 $ 108,570
Loans Sold, Loans held for sale     870,132 898,442
Loans Sold, Total sales 265,769 174,500 870,132 944,226
National Lending | Commercial finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans Purchased, Loans held for investment 0 0 0 3,098
Loans Sold, Loans held for sale 11,114 1,216 12,263 48,329
Loans Sold, Loans held for investment 0 0 0 15,549
National Lending | Warehouse finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans Purchased, Loans held for investment 9,715 19,657 197,549 105,472
National Lending | Consumer finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans Sold, Loans held for sale 254,655 173,284 857,869 696,891
Community Banking        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loans Sold, Loans held for sale 0 0 0 153,222
Loans Sold, Loans held for investment $ 0 $ 0 $ 0 $ 30,235
v3.23.2
LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Net Investment in Lease [Abstract]    
Carrying amount $ 212,275 $ 216,880
Unguaranteed residual assets 13,152 13,037
Unamortized initial direct costs 160 295
Unearned income (23,431) (19,225)
Total net investment in direct financing and sales-type leases 202,156 $ 210,987
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
Remaining in 2023 23,963  
2024 76,232  
2025 46,603  
2026 24,781  
2027 15,865  
Thereafter 24,831  
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 212,275  
Third-party residual value guarantees 0  
Total carrying amount of direct financing and sales-type leases $ 212,275  
v3.23.2
LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Allowance for Credit Losses [Roll Forward]        
Beginning Balance     $ 45,947  
Provision (Reversal) $ 1,773 $ (1,302) 48,312 $ 31,186
Ending Balance 81,916   81,916  
Total Committed Loans        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 84,304 88,552 45,947 68,281
Provision (Reversal) 1,830 (1,148) 48,379 31,479
Charge-offs (6,001) (14,344) (17,065) (31,618)
Recoveries 1,783 2,146 4,655 7,064
Ending Balance 81,916 75,206 81,916 75,206
Unfunded commitments        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 356 551 366 690
Provision (Reversal) (57) (154) (67) (293)
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Ending Balance 299 397 299 397
Total Loans        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 84,660 89,103 46,312 68,971
Provision (Reversal) 1,773 (1,302) 48,312 31,186
Charge-offs (6,001) (14,344) (17,065) (31,618)
Recoveries 1,783 2,146 4,655 7,064
Ending Balance 82,215 75,603 82,215 75,603
National Lending | Term lending        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 28,415 27,568 24,621 29,351
Provision (Reversal) 250 9 7,895 1,104
Charge-offs (2,852) (3,086) (7,374) (6,993)
Recoveries 825 1,316 1,496 2,345
Ending Balance 26,638 25,807 26,638 25,807
National Lending | Asset based lending        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 1,081 2,583 1,050 1,726
Provision (Reversal) 68 (1,553) 2,972 (817)
Charge-offs 0 0 (2,873) (16)
Recoveries 154 295 154 432
Ending Balance 1,303 1,325 1,303 1,325
National Lending | Factoring        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 5,588 6,526 6,556 3,997
Provision (Reversal) 493 533 (311) 13,857
Charge-offs (140) (194) (323) (11,057)
Recoveries 1 268 20 336
Ending Balance 5,942 7,133 5,942 7,133
National Lending | Lease financing        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 4,549 6,471 5,902 7,629
Provision (Reversal) (355) (429) (976) (1,647)
Charge-offs (302) 0 (1,315) (112)
Recoveries   107 255 279
Ending Balance 3,866 6,149 3,866 6,149
National Lending | Lease financing | Revision of Prior Period, Error Correction, Adjustment        
Allowance for Credit Losses [Roll Forward]        
Recoveries (26)      
National Lending | Insurance premium finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 1,263 1,057 1,450 1,394
Provision (Reversal) 1,094 583 1,202 374
Charge-offs (443) (230) (852) (514)
Recoveries 158 41 272 197
Ending Balance 2,072 1,451 2,072 1,451
National Lending | SBA/USDA        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 2,640 2,943 3,263 2,978
Provision (Reversal) 24 338 (625) 517
Charge-offs 0 (408) 0 (624)
Recoveries 0 25 26 27
Ending Balance 2,664 2,898 2,664 2,898
National Lending | Other commercial finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 4,332 1,197 1,310 1,168
Provision (Reversal) (253) (79) 2,769 (50)
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Ending Balance 4,079 1,118 4,079 1,118
National Lending | Commercial finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 47,868 48,345 44,152 48,243
Provision (Reversal) 1,321 (598) 12,926 13,338
Charge-offs (3,737) (3,918) (12,737) (19,316)
Recoveries 1,112 2,052 2,223 3,616
Ending Balance 46,564 45,881 46,564 45,881
National Lending | Consumer credit products        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 1,219 1,621 1,400 1,242
Provision (Reversal) 522 (170) 341 209
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Ending Balance 1,741 1,451 1,741 1,451
National Lending | Other consumer finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 1,746 7,388 63 6,112
Provision (Reversal) 216 (205) 2,232 2,513
Charge-offs (1,860) (2,428) (2,193) (4,049)
Recoveries 0 88 0 267
Ending Balance 102 4,843 102 4,843
National Lending | Consumer finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 2,965 9,009 1,463 7,354
Provision (Reversal) 738 (375) 2,573 2,722
Charge-offs (1,860) (2,428) (2,193) (4,049)
Recoveries 0 88 0 267
Ending Balance 1,843 6,294 1,843 6,294
National Lending | Tax services        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 33,094 30,757 5 2
Provision (Reversal) (229) (166) 32,830 28,093
Charge-offs (404) (7,998) (2,135) (8,253)
Recoveries 671 6 2,432 2,757
Ending Balance 33,132 22,599 33,132 22,599
National Lending | Warehouse finance        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance 377 441 327 420
Provision (Reversal) 0 (9) 50 12
Charge-offs 0 0 0 0
Recoveries 0 0 0 0
Ending Balance $ 377 432 $ 377 432
Community Banking        
Allowance for Credit Losses [Roll Forward]        
Beginning Balance       12,262
Provision (Reversal)       (12,686)
Charge-offs       0
Recoveries       424
Ending Balance   $ 0   $ 0
v3.23.2
LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2021
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance $ 20,522   $ 20,522   $ 7,421
Average recorded investment 32,910 $ 21,822 24,102 $ 28,736  
National Lending | Term lending          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 4,767   4,767   2,885
Average recorded investment 12,637 11,114 10,397 11,908  
National Lending | Asset based lending          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 14,414   14,414   0
Average recorded investment 15,792 3,500 8,452 4,502  
National Lending | Factoring          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 0   0   550
Average recorded investment 545 1,903 592 7,980  
National Lending | Lease financing          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 591   591   2,787
Average recorded investment 2,675 3,529 3,308 3,194  
National Lending | SBA/USDA          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 750   750   1,199
Average recorded investment 1,261 1,776 1,353 1,152  
National Lending | Commercial finance          
Financing Receivable, Impaired [Line Items]          
Impaired loans, unpaid balance 20,522   20,522   $ 7,421
Average recorded investment $ 32,910 $ 21,822 $ 24,102 $ 28,736  
v3.23.2
LOANS AND LEASES, NET - Credit Quality Indicator (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Financing Receivable, Credit Quality Indicator [Line Items]    
Total gross loans and leases $ 4,072,899 $ 3,536,305
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,072,813 792,936
2022 447,362 404,657
2021 202,161 203,100
2020 163,125 163,965
2019 39,971 153,405
Prior 346,396 127,139
Revolving Loans and Leases 801,495 703,727
Total gross loans and leases 3,073,323 2,548,929
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 49,309 54,877
2022 60,876 55,259
2021 73,068 56,602
2020 15,255 19,055
2019 9,544 23,976
Prior 17,267 10,660
Revolving Loans and Leases 234,566 249,209
Total gross loans and leases 459,885 469,638
Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,289 9,820
2022 12,154 31,287
2021 30,743 16,944
2020 1,985 4,211
2019 1,387 3,495
Prior 1,753 3,053
Revolving Loans and Leases 35,139 55,444
Total gross loans and leases 84,450 124,254
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 5,811 15,707
2022 44,996 46,732
2021 37,023 28,345
2020 36,471 30,539
2019 19,057 12,796
Prior 20,366 26,800
Revolving Loans and Leases 26,019 42,761
Total gross loans and leases 189,743 203,680
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 183 333
2022 2,247 584
2021 1,191 1,749
2020 1,031 960
2019 235 204
Prior 1,376 192
Revolving Loans and Leases 7,532 0
Total gross loans and leases 13,795 4,022
Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,129,405 873,673
2022 567,635 538,519
2021 344,186 306,740
2020 217,867 218,730
2019 70,194 193,876
Prior 387,158 167,844
Revolving Loans and Leases 1,104,751 1,051,141
Total gross loans and leases 3,821,196 3,350,523
National Lending | Term lending | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 313,587 246,627
2022 201,918 240,018
2021 119,763 105,170
2020 82,834 60,417
2019 18,380 89,072
Prior 203,059 61,229
Revolving Loans and Leases 0 0
Total gross loans and leases 939,541 802,533
National Lending | Term lending | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 47,005 45,539
2022 50,336 24,318
2021 61,125 45,052
2020 11,832 11,698
2019 6,964 21,077
Prior 14,399 9,799
Revolving Loans and Leases 0 0
Total gross loans and leases 191,661 157,483
National Lending | Term lending | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,174 9,500
2022 12,080 24,885
2021 11,369 14,300
2020 1,383 2,861
2019 1,106 619
Prior 1,753 242
Revolving Loans and Leases 0 0
Total gross loans and leases 28,865 52,407
National Lending | Term lending | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 2,715 10,627
2022 34,238 16,694
2021 19,320 12,248
2020 25,326 23,266
2019 4,485 10,457
Prior 2,135 2,255
Revolving Loans and Leases 0 0
Total gross loans and leases 88,219 75,547
National Lending | Term lending | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 103 175
2022 1,934 407
2021 1,110 469
2020 931 872
2019 235 204
Prior 1,242 192
Revolving Loans and Leases 0 0
Total gross loans and leases 5,555 2,319
National Lending | Term lending | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 364,584 312,468
2022 300,506 306,322
2021 212,687 177,239
2020 122,306 99,114
2019 31,170 121,429
Prior 222,588 73,717
Revolving Loans and Leases 0 0
Total gross loans and leases 1,253,841 1,090,289
National Lending | Asset based lending | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 163,401 154,494
Total gross loans and leases 163,401 154,494
National Lending | Asset based lending | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 163,215 162,990
Total gross loans and leases 163,215 162,990
National Lending | Asset based lending | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 23,264 13,770
Total gross loans and leases 23,264 13,770
National Lending | Asset based lending | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 15,748 20,442
Total gross loans and leases 15,748 20,442
National Lending | Asset based lending | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0  
2021 0  
2020 0  
2019 0  
Prior 0  
Revolving Loans and Leases 7,532  
Total gross loans and leases 7,532  
National Lending | Asset based lending | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 373,160 351,696
Total gross loans and leases 373,160 351,696
National Lending | Factoring | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 257,636 254,883
Total gross loans and leases 257,636 254,883
National Lending | Factoring | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 71,351 86,219
Total gross loans and leases 71,351 86,219
National Lending | Factoring | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 11,875 9,174
Total gross loans and leases 11,875 9,174
National Lending | Factoring | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 10,271 22,319
Total gross loans and leases 10,271 22,319
National Lending | Factoring | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 351,133 372,595
Total gross loans and leases 351,133 372,595
National Lending | Lease financing | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 8,249 7,407
2022 18,748 38,818
2021 21,365 31,408
2020 34,127 26,552
2019 2,091 12,361
Prior 50,807 823
Revolving Loans and Leases 0 0
Total gross loans and leases 135,387 117,369
National Lending | Lease financing | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 190 8,799
2022 10,301 17,098
2021 11,617 10,284
2020 3,370 6,655
2019 2,222 2,899
Prior 477 151
Revolving Loans and Leases 0 0
Total gross loans and leases 28,177 45,886
National Lending | Lease financing | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 151
2022 0 6,151
2021 1,374 2,644
2020 602 481
2019 281 2,876
Prior 0 2,811
Revolving Loans and Leases 0 0
Total gross loans and leases 2,257 15,114
National Lending | Lease financing | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 825
2022 8,185 9,486
2021 8,168 11,819
2020 3,960 7,273
2019 6,269 1,245
Prior 9,278 0
Revolving Loans and Leases 0 0
Total gross loans and leases 35,860 30,648
National Lending | Lease financing | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 144
2022 0 163
2021 81 1,280
2020 100 88
2019 0 0
Prior 134 0
Revolving Loans and Leases 0 0
Total gross loans and leases 315 1,675
National Lending | Lease financing | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 8,439 17,326
2022 37,234 71,716
2021 42,605 57,435
2020 42,159 41,049
2019 10,863 19,381
Prior 60,696 3,785
Revolving Loans and Leases 0 0
Total gross loans and leases 201,996 210,692
National Lending | Insurance premium finance | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 655,755 478,504
2022 8,822 307
2021 9 8
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 664,586 478,819
National Lending | Insurance premium finance | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 374 539
2022 239 7
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 613 546
National Lending | Insurance premium finance | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 115 169
2022 74 40
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 189 209
National Lending | Insurance premium finance | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 55 106
2022 429 46
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 484 152
National Lending | Insurance premium finance | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 80 14
2022 313 14
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 393 28
National Lending | Insurance premium finance | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 656,379 479,332
2022 9,877 414
2021 9 8
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 666,265 479,754
National Lending | SBA/USDA | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 91,797 54,512
2022 198,975 111,907
2021 28,116 40,474
2020 45,070 56,538
2019 9,288 28,874
Prior 18,745 24,305
Revolving Loans and Leases 0 0
Total gross loans and leases 391,991 316,610
National Lending | SBA/USDA | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 13,836
2021 326 1,266
2020 53 702
2019 358 0
Prior 2,391 710
Revolving Loans and Leases 0 0
Total gross loans and leases 3,128 16,514
National Lending | SBA/USDA | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 211
2021 0 0
2020 0 869
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Total gross loans and leases 0 1,080
National Lending | SBA/USDA | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 252 4,149
2022 1,680 10,968
2021 1,156 4,278
2020 7,185 0
2019 8,303 1,094
Prior 8,694 4,545
Revolving Loans and Leases 0 0
Total gross loans and leases 27,270 25,034
National Lending | SBA/USDA | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 92,049 58,661
2022 200,655 136,922
2021 29,598 46,018
2020 52,308 58,109
2019 17,949 29,968
Prior 29,830 29,560
Revolving Loans and Leases 0 0
Total gross loans and leases 422,389 359,238
National Lending | Other commercial finance | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 3,425 5,886
2022 18,899 13,607
2021 32,908 26,040
2020 1,094 20,458
2019 10,212 23,098
Prior 73,785 40,782
Revolving Loans and Leases 0 0
Total gross loans and leases 140,323 129,871
National Lending | Other commercial finance | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 1,740  
2022 0  
2021 0  
2020 0  
2019 0  
Prior 0  
Revolving Loans and Leases 0  
Total gross loans and leases 1,740  
National Lending | Other commercial finance | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0  
2022 0  
2021 18,000  
2020 0  
2019 0  
Prior 0  
Revolving Loans and Leases 0  
Total gross loans and leases 18,000  
National Lending | Other commercial finance | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 2,789 0
2022 464 9,538
2021 8,379 0
2020 0 0
2019 0 0
Prior 259 20,000
Revolving Loans and Leases 0 0
Total gross loans and leases 11,891 29,538
National Lending | Other commercial finance | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 7,954 5,886
2022 19,363 23,145
2021 59,287 26,040
2020 1,094 20,458
2019 10,212 23,098
Prior 74,044 60,782
Revolving Loans and Leases 0 0
Total gross loans and leases 171,954 159,409
National Lending | Warehouse finance | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 380,458 294,350
Total gross loans and leases 380,458 294,350
National Lending | Warehouse finance | Special mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023   0
2022   0
2021   0
2020   0
2019   0
Prior   0
Revolving Loans and Leases   32,500
Total gross loans and leases   32,500
National Lending | Warehouse finance | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 380,458 326,850
Total gross loans and leases $ 380,458 $ 326,850
v3.23.2
LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 4,072,899 $ 3,536,305
Accruing and Nonaccruing Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,155,862 3,550,351
Accruing and Nonaccruing Loans and Leases | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,068,511 3,529,280
Accruing and Nonaccruing Loans and Leases | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 87,351 21,071
Accruing and Nonaccruing Loans and Leases | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,253,841 1,090,289
Accruing and Nonaccruing Loans and Leases | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 373,160 351,696
Accruing and Nonaccruing Loans and Leases | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 351,133 372,595
Accruing and Nonaccruing Loans and Leases | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 201,996 210,692
Accruing and Nonaccruing Loans and Leases | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 666,265 479,754
Accruing and Nonaccruing Loans and Leases | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 422,389 359,238
Accruing and Nonaccruing Loans and Leases | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 171,954 159,409
Accruing and Nonaccruing Loans and Leases | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,440,738 3,023,673
Accruing and Nonaccruing Loans and Leases | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 175,158 144,353
Accruing and Nonaccruing Loans and Leases | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 24,963 25,306
Accruing and Nonaccruing Loans and Leases | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 200,121 169,659
Accruing and Nonaccruing Loans and Leases | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 47,194 9,098
Accruing and Nonaccruing Loans and Leases | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 380,458 326,850
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 37,892 28,203
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 37,882 28,203
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 10 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 30,464 14,066
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,945 8,265
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,884 2,550
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 51 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 35,344 24,881
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,512 3,209
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 26 113
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,538 3,322
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 55,178 8,817
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 55,178 8,817
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,423 2,576
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 729 2,253
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 874 1,379
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 908 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 5,934 6,208
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,030 2,558
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 20 51
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,050 2,609
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 47,194 0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 15,807 19,534
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 15,807 19,534
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,074 4,458
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 218 68
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,940 1,714
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,394 1,628
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,002 0
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 92 0
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 13,720 7,868
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,058 2,669
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 29 124
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,087 2,793
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 8,873
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 108,877 56,554
Accruing and Nonaccruing Loans and Leases | Total Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 108,867 56,554
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 10 0
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 41,961 21,100
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 218 68
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 5,614 12,232
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 5,152 5,557
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,961 0
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 92 0
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 54,998 38,957
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 6,600 8,436
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 75 288
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 6,675 8,724
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 47,194 8,873
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Current    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,046,985 3,493,797
Accruing and Nonaccruing Loans and Leases | Current | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,959,644 3,472,726
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 87,341 21,071
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,211,880 1,069,189
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 372,942 351,628
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 351,133 372,595
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 196,382 198,460
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 661,113 474,197
Accruing and Nonaccruing Loans and Leases | Current | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 420,428 359,238
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 171,862 159,409
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,385,740 2,984,716
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 168,558 135,917
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 24,888 25,018
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 193,446 160,935
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 225
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 380,458 326,850
Nonperforming Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 38,799 29,183
Nonaccrual Balance 30,170 13,375
Nonperforming Loans and Leases | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 38,799 29,183
Nonaccrual Balance 30,170 13,375
Nonperforming Loans and Leases | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 15,069 9,611
Nonaccrual Balance 13,207 7,576
Nonperforming Loans and Leases | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 14,625 68
Nonaccrual Balance 14,407 29
Nonperforming Loans and Leases | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 364 569
Nonaccrual Balance 364 569
Nonperforming Loans and Leases | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,121 4,190
Nonaccrual Balance 1,494 3,750
Nonperforming Loans and Leases | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,394 1,628
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,047 1,451
Nonaccrual Balance 698 1,451
Nonperforming Loans and Leases | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 92 0
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 36,712 17,517
Nonaccrual Balance 30,170 13,375
Nonperforming Loans and Leases | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,058 2,669
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 29 124
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,087 2,793
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 8,873
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | > 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,629 15,808
Nonperforming Loans and Leases | > 89 Days Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,629 15,808
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,862 2,035
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Asset based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 218 39
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,627 440
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,394 1,628
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 349 0
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 92 0
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 6,542 4,142
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Consumer credit products    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,058 2,669
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Other consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 29 124
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,087 2,793
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 8,873
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 0 $ 0
v3.23.2
LOANS AND LEASES, NET - Nonaccrual (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Financing Receivable, Nonaccrual [Line Items]    
Loans and leases $ 4,072,899 $ 3,536,305
Nonaccrual Loans    
Financing Receivable, Nonaccrual [Line Items]    
2023 103 1,228
2022 4,489 1,420
2021 2,853 5,605
2020 2,049 1,002
2019 3,380 3,104
Prior 2,525 418
Revolving Loans and Leases 14,771 598
Loans and leases 30,170 13,375
Nonaccrual with No ACL 15,399 4,634
Nonaccrual Loans | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2023 103 251
2022 3,819 1,110
2021 2,245 1,964
2020 2,017 989
2019 3,380 3,096
Prior 1,643 166
Revolving Loans and Leases 0 0
Loans and leases 13,207 7,576
Nonaccrual with No ACL 0 2,885
Nonaccrual Loans | National Lending | Asset based lending    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 14,407 29
Loans and leases 14,407 29
Nonaccrual with No ACL 14,407 0
Nonaccrual Loans | National Lending | Factoring    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 364 569
Loans and leases 364 569
Nonaccrual with No ACL 0 550
Nonaccrual Loans | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 977
2022 269 310
2021 596 2,442
2020 0 13
2019 0 8
Prior 629 0
Revolving Loans and Leases 0 0
Loans and leases 1,494 3,750
Nonaccrual with No ACL 591 0
Nonaccrual Loans | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 0
2022 401 0
2021 12 1,199
2020 32 0
2019 0 0
Prior 253 252
Revolving Loans and Leases 0 0
Loans and leases 698 1,451
Nonaccrual with No ACL 401 1,199
Nonaccrual Loans | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 103 1,228
2022 4,489 1,420
2021 2,853 5,605
2020 2,049 1,002
2019 3,380 3,104
Prior 2,525 418
Revolving Loans and Leases 14,771 598
Loans and leases 30,170 13,375
Nonaccrual with No ACL 15,399 4,634
90 or More Days Delinquent and Accruing    
Financing Receivable, Nonaccrual [Line Items]    
2023 1,612 12,724
2022 4,225 1,593
2021 2,046 861
2020 309 284
2019 91 115
Prior 99 192
Revolving Loans and Leases 247 39
Loans and leases 8,629 15,808
90 or More Days Delinquent and Accruing | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2023 128 207
2022 917 720
2021 658 716
2020 107 130
2019 52 70
Prior 0 192
Revolving Loans and Leases 0 0
Loans and leases 1,862 2,035
90 or More Days Delinquent and Accruing | National Lending | Asset based lending    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 0
2022 0 0
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 218 39
Loans and leases 218 39
90 or More Days Delinquent and Accruing | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 8
2022 479 158
2021 969 98
2020 152 131
2019 20 45
Prior 7 0
Revolving Loans and Leases 0 0
Loans and leases 1,627 440
90 or More Days Delinquent and Accruing | National Lending | Insurance premium finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 1,149 1,513
2022 1,241 110
2021 4 5
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 2,394 1,628
90 or More Days Delinquent and Accruing | National Lending | Other commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 0  
2022 0  
2021 0  
2020 0  
2019 0  
Prior 92  
Revolving Loans and Leases 0  
Loans and leases 92  
90 or More Days Delinquent and Accruing | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2023 0  
2022 349  
2021 0  
2020 0  
2019 0  
Prior 0  
Revolving Loans and Leases 0  
Loans and leases 349  
90 or More Days Delinquent and Accruing | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 1,277 1,728
2022 2,986 988
2021 1,631 819
2020 259 261
2019 72 115
Prior 99 192
Revolving Loans and Leases 218 39
Loans and leases 6,542 4,142
90 or More Days Delinquent and Accruing | National Lending | Consumer credit products    
Financing Receivable, Nonaccrual [Line Items]    
2023 335 2,123
2022 1,239 481
2021 415 42
2020 50 23
2019 19 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 2,058 2,669
90 or More Days Delinquent and Accruing | National Lending | Other consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 0 0
2022 0 124
2021 0 0
2020 0 0
2019 0 0
Prior 0 0
Revolving Loans and Leases 29 0
Loans and leases 29 124
90 or More Days Delinquent and Accruing | National Lending | Consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
2023 335 2,123
2022 1,239 605
2021 415 42
2020 50 23
2019 19 0
Prior 0 0
Revolving Loans and Leases 29 0
Loans and leases $ 2,087 2,793
90 or More Days Delinquent and Accruing | National Lending | Tax services    
Financing Receivable, Nonaccrual [Line Items]    
2023   8,873
2022   0
2021   0
2020   0
2019   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   $ 8,873
v3.23.2
LOANS AND LEASES, NET - Troubled Debt Restructured Loans (Details) - National Lending - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Commercial finance        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
TDRs recorded investment $ 0 $ 200,000 $ 0 $ 10,400,000
TDRs subsequent default, recorded investment   1,400,000 $ 400,000 3,900,000
Consumer finance        
Financing Receivable, Troubled Debt Restructuring [Line Items]        
TDRs recorded investment $ 0 500,000   700,000
TDRs subsequent default, recorded investment   $ 300,000   $ 1,100,000
v3.23.2
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Basic income per common share:        
Net income attributable to Pathward Financial, Inc. $ 45,096 $ 22,391 $ 127,709 $ 132,966
Dividends and undistributed earnings allocated to participating securities (690) (377) (1,920) (2,166)
Basic net earnings available to common stockholders 44,406 22,014 125,789 130,800
Undistributed earnings allocated to nonvested restricted stockholders 670 352 1,858 2,093
Reallocation of undistributed earnings to nonvested restricted stockholders (667) (352) (1,852) (2,092)
Diluted net earnings available to common stockholders $ 44,409 $ 22,014 $ 125,795 $ 130,801
Total weighted average common shares outstanding (in shares) 26,346,693 28,868,136 27,152,773 29,444,979
Effect of dilutive securities        
Total effect of dilutive securities (in shares) 100,339 0 86,028 9,607
Weighted average dilutive common shares outstanding (in shares) 26,447,032 28,868,136 27,238,801 29,454,586
Net earnings per common share:        
Basic income per common share (in dollars per share) $ 1.69 $ 0.76 $ 4.63 $ 4.44
Diluted income per common share (in dollars per share) $ 1.68 $ 0.76 $ 4.62 $ 4.44
Weighted average shares of nonvested restricted stock, antidilutive (in shares) 409,666 493,800 414,539 487,538
Performance share units        
Effect of dilutive securities        
Outstanding options - based upon the two-class method (in shares) 100,339 0 86,028 9,607
v3.23.2
RENTAL EQUIPMENT, NET - Schedule of Rental Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Property, Plant and Equipment [Line Items]    
Total $ 336,078 $ 297,336
Accumulated depreciation (113,122) (94,355)
Unamortized initial direct costs 1,256 1,390
Net book value 224,212 204,371
Computers and IT networking equipment    
Property, Plant and Equipment [Line Items]    
Total 25,681 21,669
Motor vehicles and other    
Property, Plant and Equipment [Line Items]    
Total 123,374 107,648
Other furniture and equipment    
Property, Plant and Equipment [Line Items]    
Total 49,214 34,254
Solar panels and equipment    
Property, Plant and Equipment [Line Items]    
Total $ 137,809 $ 133,765
v3.23.2
RENTAL EQUIPMENT, NET - Schedule of Operating Leases, Future Minimum Payments (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Property, Plant and Equipment [Abstract]  
Remaining in 2023 $ 11,844
2024 40,640
2025 33,086
2026 23,247
2027 15,506
Thereafter 17,484
Total $ 141,807
v3.23.2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Total goodwill $ 309,505,000 $ 309,505,000
Goodwill, accumulated impairment 0  
Asset impairment charges $ 0 $ 0
v3.23.2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Asses (Details) - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance $ 25,691 $ 33,148
Acquisitions during the period   1
Amortization during the period (3,861) (5,188)
Write-offs during the period   (873)
Ending Balance 21,830 27,088
Gross carrying amount 109,133 109,133
Accumulated amortization (76,167) (70,909)
Accumulated impairment (11,136) (11,136)
Total anticipated intangible amortization 21,830 27,088
Trademarks    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance 8,605 9,823
Acquisitions during the period   0
Amortization during the period (868) (871)
Write-offs during the period   0
Ending Balance 7,737 8,952
Gross carrying amount 14,624 14,624
Accumulated amortization (6,887) (5,672)
Accumulated impairment 0 0
Total anticipated intangible amortization $ 7,737 8,952
Trademarks | Minimum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 5 years  
Trademarks | Maximum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 15 years  
Noncompete    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance $ 0 40
Acquisitions during the period   0
Amortization during the period 0 (40)
Write-offs during the period   0
Ending Balance 0 0
Gross carrying amount 2,481 2,481
Accumulated amortization (2,481) (2,481)
Accumulated impairment 0 0
Total anticipated intangible amortization 0 0
Customer Relationships    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance 12,395 17,868
Acquisitions during the period   0
Amortization during the period (2,595) (3,884)
Write-offs during the period   (670)
Ending Balance 9,800 13,314
Gross carrying amount 82,088 82,088
Accumulated amortization (61,370) (57,856)
Accumulated impairment (10,918) (10,918)
Total anticipated intangible amortization $ 9,800 13,314
Customer Relationships | Minimum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 10 years  
Customer Relationships | Maximum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 30 years  
Other Intangible Assets    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance $ 4,691 5,417
Acquisitions during the period   1
Amortization during the period (398) (393)
Write-offs during the period   (203)
Ending Balance 4,293 4,822
Gross carrying amount 9,940 9,940
Accumulated amortization (5,429) (4,900)
Accumulated impairment (218) (218)
Total anticipated intangible amortization $ 4,293 $ 4,822
Other Intangible Assets | Minimum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 3 years  
Other Intangible Assets | Maximum    
Finite-lived Intangible Assets [Roll Forward]    
Useful life 20 years  
v3.23.2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Jun. 30, 2022
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]        
Remaining in 2023 $ 1,082      
2024 4,123      
2025 3,561      
2026 3,215      
2027 2,569      
Thereafter 7,280      
Total anticipated intangible amortization $ 21,830 $ 25,691 $ 27,088 $ 33,148
v3.23.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets
Operating lease, right-of-use asset $ 27,700 $ 31,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other liabilities Accrued expenses and other liabilities
Operating lease, liability $ 29,645 $ 32,900
v3.23.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]    
Remaining in 2023 $ 1,091  
2024 3,913  
2025 3,718  
2026 3,195  
2027 3,092  
Thereafter 18,639  
Total undiscounted future minimum lease payments 33,648  
Discount (4,003)  
Total operating lease liabilities $ 29,645 $ 32,900
v3.23.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]        
Weighted-average discount rate 2.37%   2.37%  
Weighted-average remaining lease term (years) 9 years 9 months 25 days   9 years 9 months 25 days  
Lease expense $ 978 $ 1,119 $ 2,974 $ 3,375
Short-term and variable lease cost 22 58 106 133
ROU asset impairment 0 670 0 670
Sublease income (368) (375) (1,040) (906)
Total lease cost for operating leases $ 632 $ 1,472 $ 2,040 $ 3,272
v3.23.2
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Millions
 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Sep. 03, 2021
Equity, Class of Treasury Stock [Line Items]      
Stock repurchased during the period (in shares) 59,626 67,158  
Stock repurchased during the period, value $ 2.1 $ 3.8  
Retired common stock held in treasury (in shares) 0 0  
Common Stock      
Equity, Class of Treasury Stock [Line Items]      
Shares authorized to be repurchased (in shares)     6,000,000
Stock repurchased under repurchase program (in shares) 2,316,814 2,447,699  
Remaining number of shares authorized to be repurchased (in shares) 1,978,163    
v3.23.2
STOCK COMPENSATION (Details)
$ / shares in Units, $ in Millions
 9 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options exercisable (in shares) 0
Weighted Average Fair Value at Grant  
Stock based compensation expense not yet recognized in income | $ $ 8.2
Weighted average remaining period for unrecognized stock based compensation (in years) 1 year 5 months 12 days
Restricted Shares  
Number of Shares  
Nonvested shares outstanding, beginning of period (in shares) 474,348
Granted (in shares) 160,881
Vested (in shares) (209,440)
Forfeited or expired (in shares) (33,293)
Nonvested shares outstanding, end of period (in shares) 392,496
Weighted Average Fair Value at Grant  
Nonvested shares outstanding, beginning of period (in dollars per share) | $ / shares $ 36.52
Granted (in dollars per share) | $ / shares 38.95
Vested (in dollars per share) | $ / shares 36.59
Forfeited or expired (in dollars per share) | $ / shares 48.90
Nonvested shares outstanding, end of period (in dollars per share) | $ / shares $ 36.42
Performance share units  
Number of Shares  
Nonvested shares outstanding, beginning of period (in shares) 96,689
Granted (in shares) 59,115
Vested (in shares) 0
Forfeited or expired (in shares) 0
Nonvested shares outstanding, end of period (in shares) 155,804
Weighted Average Fair Value at Grant  
Nonvested shares outstanding, beginning of period (in dollars per share) | $ / shares $ 42.59
Granted (in dollars per share) | $ / shares 38.94
Vested (in dollars per share) | $ / shares 0
Forfeited or expired (in dollars per share) | $ / shares 0
Nonvested shares outstanding, end of period (in dollars per share) | $ / shares $ 41.20
v3.23.2
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Income tax expense $ 3,243 $ 6,958 $ 18,996 $ 29,236
Effective tax rate     12.80% 17.77%
v3.23.2
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Tax Disclosure [Abstract]        
Provision at statutory rate     $ 30,808 $ 34,063
Tax-exempt income     (600) (541)
State income taxes     6,109 6,728
Interim period effective rate adjustment     (3,065) (2,849)
Tax credit investments, net - federal     (13,669) (6,994)
Research tax credit     (805) (355)
IRC 162(m) nondeductible compensation     928 801
Other, net     (710) (1,617)
Income tax expense $ 3,243 $ 6,958 $ 18,996 $ 29,236
Effective tax rate     12.80% 17.77%
v3.23.2
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenue by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Net interest income $ 97,465 $ 72,151 $ 282,927 $ 227,564
Net realized (gain) on securities available for sale 9 198 91 595
Gain on sale of trademarks 0 0 10,000 50,000
Gain (loss) on sale of other 812 1,239 566 (1,601)
Other income 5,889 5,271 13,921 10,811
Noninterest income 67,733 53,994 260,548 250,351
Revenue 165,198 126,145 543,475 477,915
Refund transfer product fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 8,262 10,289 39,144 38,674
Refund advance fee income        
Disaggregation of Revenue [Line Items]        
Noninterest income (927) (20) 37,685 40,513
Card and deposit fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 39,708 24,935 119,513 76,825
Rental income        
Disaggregation of Revenue [Line Items]        
Noninterest income 13,980 12,082 39,628 34,534
Consumer        
Disaggregation of Revenue [Line Items]        
Net interest income 40,683 23,213 116,373 79,323
Net realized (gain) on securities available for sale 0 0 0 0
Gain on sale of trademarks     0 0
Gain (loss) on sale of other 0 0 0 0
Other income 1,929 1,284 4,470 3,434
Noninterest income 48,714 36,226 200,029 158,696
Revenue 89,397 59,439 316,402 238,019
Consumer | Refund transfer product fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 8,262 10,289 39,144 38,674
Consumer | Refund advance fee income        
Disaggregation of Revenue [Line Items]        
Noninterest income (927) (20) 37,685 40,513
Consumer | Card and deposit fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 39,450 24,673 118,730 76,075
Consumer | Rental income        
Disaggregation of Revenue [Line Items]        
Noninterest income 0 0 0 0
Commercial        
Disaggregation of Revenue [Line Items]        
Net interest income 53,067 46,802 142,149 136,923
Net realized (gain) on securities available for sale 0 0 0 0
Gain on sale of trademarks     0 0
Gain (loss) on sale of other 812 1,239 566 7,331
Other income 1,888 2,479 4,907 8,103
Noninterest income 16,709 15,860 45,247 50,354
Revenue 69,776 62,662 187,396 187,277
Commercial | Refund transfer product fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 0 0 0 0
Commercial | Refund advance fee income        
Disaggregation of Revenue [Line Items]        
Noninterest income 0 0 0 0
Commercial | Card and deposit fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 253 252 766 728
Commercial | Rental income        
Disaggregation of Revenue [Line Items]        
Noninterest income 13,756 11,890 39,008 34,192
Corporate Services/Other        
Disaggregation of Revenue [Line Items]        
Net interest income 3,715 2,136 24,405 11,318
Net realized (gain) on securities available for sale 9 198 91 595
Gain on sale of trademarks     10,000 50,000
Gain (loss) on sale of other 0 0 0 (8,932)
Other income 2,072 1,508 4,544 (726)
Noninterest income 2,310 1,908 15,272 41,301
Revenue 6,025 4,044 39,677 52,619
Corporate Services/Other | Refund transfer product fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 0 0 0 0
Corporate Services/Other | Refund advance fee income        
Disaggregation of Revenue [Line Items]        
Noninterest income 0 0 0 0
Corporate Services/Other | Card and deposit fees        
Disaggregation of Revenue [Line Items]        
Noninterest income 5 10 17 22
Corporate Services/Other | Rental income        
Disaggregation of Revenue [Line Items]        
Noninterest income $ 224 $ 192 $ 620 $ 342
v3.23.2
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2023
USD ($)
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
segment
Jun. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     3    
Segment data [Abstract]          
Net interest income $ 97,465 $ 72,151 $ 282,927 $ 227,564  
Provision for (reversal of) credit losses 1,773 (1,302) 48,312 31,186  
Noninterest income 67,733 53,994 260,548 250,351  
Noninterest expense 114,578 96,650 346,773 282,246  
Income before income tax expense 48,847 30,797 148,390 164,483  
Total assets 7,458,625 6,728,178 7,458,625 6,728,178 $ 6,747,410
Total goodwill 309,505 309,505 309,505 309,505  
Total deposits 6,306,976 5,710,799 6,306,976 5,710,799  
Consumer          
Segment data [Abstract]          
Net interest income 40,683 23,213 116,373 79,323  
Provision for (reversal of) credit losses 508 (279) 35,402 30,667  
Noninterest income 48,714 36,226 200,029 158,696  
Noninterest expense 39,666 23,960 124,070 73,509  
Income before income tax expense 49,223 35,758 156,930 133,843  
Total assets 455,540 373,019 455,540 373,019  
Total goodwill 87,145 87,145 87,145 87,145  
Total deposits 6,130,524 5,573,768 6,130,524 5,573,768  
Commercial          
Segment data [Abstract]          
Net interest income 53,067 46,802 142,149 136,923  
Provision for (reversal of) credit losses 1,265 (752) 12,860 13,045  
Noninterest income 16,709 15,860 45,247 50,354  
Noninterest expense 33,594 31,336 105,189 95,845  
Income before income tax expense 34,917 32,078 69,347 78,387  
Total assets 3,914,924 3,457,004 3,914,924 3,457,004  
Total goodwill 222,360 222,360 222,360 222,360  
Total deposits 7,550 11,177 7,550 11,177  
Corporate Services/Other          
Segment data [Abstract]          
Net interest income 3,715 2,136 24,405 11,318  
Provision for (reversal of) credit losses 0 (271) 50 (12,526)  
Noninterest income 2,310 1,908 15,272 41,301  
Noninterest expense 41,318 41,354 117,514 112,892  
Income before income tax expense (35,293) (37,039) (77,887) (47,747)  
Total assets 3,088,161 2,898,155 3,088,161 2,898,155  
Total goodwill 0 0 0 0  
Total deposits $ 168,902 $ 125,854 $ 168,902 $ 125,854  
v3.23.2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Level 1    
Available-for-sale debt securities [Abstract]    
Total debt securities AFS $ 0 $ 0
Common equities and mutual funds 3,527 2,874
Level 2    
Available-for-sale debt securities [Abstract]    
Total debt securities AFS 1,914,271 1,882,869
Common equities and mutual funds 0 0
Level 3    
Available-for-sale debt securities [Abstract]    
Total debt securities AFS 0 0
Common equities and mutual funds 0 0
Recurring    
Available-for-sale debt securities [Abstract]    
Corporate securities 18,750 22,187
SBA securities 90,605 97,768
Obligations of states and political subdivisions 2,311 2,344
Non-bank qualified obligations of states and political subdivisions 238,375 263,783
Asset-backed securities 254,566 147,790
Mortgage-backed securities 1,309,664 1,348,997
Total debt securities AFS 1,914,271 1,882,869
Common equities and mutual funds 3,527 2,874
Non-marketable equity securities 8,469 7,212
Recurring | Level 1    
Available-for-sale debt securities [Abstract]    
Corporate securities 0 0
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 3,527 2,874
Non-marketable equity securities 0 0
Recurring | Level 2    
Available-for-sale debt securities [Abstract]    
Corporate securities 18,750 22,187
SBA securities 90,605 97,768
Obligations of states and political subdivisions 2,311 2,344
Non-bank qualified obligations of states and political subdivisions 238,375 263,783
Asset-backed securities 254,566 147,790
Mortgage-backed securities 1,309,664 1,348,997
Total debt securities AFS 1,914,271 1,882,869
Common equities and mutual funds 0 0
Non-marketable equity securities 0 0
Recurring | Level 3    
Available-for-sale debt securities [Abstract]    
Corporate securities 0 0
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 0 0
Non-marketable equity securities $ 0 $ 0
v3.23.2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2023
Sep. 30, 2022
Minimum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (percentage) 3.00%  
Maximum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (percentage) 18.00%  
Level 1    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 0 $ 0
Level 2    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 4,006,176 3,525,803
Total loans and leases, net individually evaluated for credit loss | Level 3 | Valuation, Market Approach    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 4,113 1,575
Total loans and leases, net individually evaluated for credit loss | Level 3 | Valuation, Market Approach | Minimum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (percentage) 3.00%  
Total loans and leases, net individually evaluated for credit loss | Level 3 | Valuation, Market Approach | Maximum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost (percentage) 18.00%  
Nonrecurring    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 4,113 1,576
Nonrecurring | Level 1    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Level 2    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 4,113 1,576
Nonrecurring | Commercial finance    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 4,113 1,575
Nonrecurring | Commercial finance | Level 1    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Commercial finance | Level 2    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Commercial finance | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 4,113 1,575
Nonrecurring | Total loans and leases, net individually evaluated for credit loss    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 4,113 1,575
Nonrecurring | Total loans and leases, net individually evaluated for credit loss | Level 1    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Total loans and leases, net individually evaluated for credit loss | Level 2    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 0
Nonrecurring | Total loans and leases, net individually evaluated for credit loss | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 4,113 1,575
Nonrecurring | Foreclosed assets, net    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Foreclosed assets, net   1
Nonrecurring | Foreclosed assets, net | Level 1    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Foreclosed assets, net   0
Nonrecurring | Foreclosed assets, net | Level 2    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Foreclosed assets, net   0
Nonrecurring | Foreclosed assets, net | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Foreclosed assets, net   $ 1
v3.23.2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Sep. 30, 2022
Financial assets    
Debt securities held to maturity $ 33,670 $ 38,171
Level 1    
Financial assets    
Cash and cash equivalents 515,271 388,038
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Common equities and mutual funds 3,527 2,874
Non-marketable equity securities 0 0
Loans held for sale 0 0
Loans and leases 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 0 0
Accrued interest receivable 22,332 17,979
Financial liabilities    
Deposits 6,301,147 5,858,283
Overnight federal funds purchased 230,000  
Other short- and long-term borrowings 0 0
Accrued interest payable 802 192
Level 2    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 1,914,271 1,882,869
Debt securities held to maturity 33,670 38,171
Common equities and mutual funds 0 0
Non-marketable equity securities 12,064 15,314
Loans held for sale 87,351 21,071
Loans and leases 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 30,890 28,812
Accrued interest receivable 0 0
Financial liabilities    
Deposits 5,671 7,571
Overnight federal funds purchased 0  
Other short- and long-term borrowings 31,853 35,986
Accrued interest payable 0 0
Level 3    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Common equities and mutual funds 0 0
Non-marketable equity securities 0 0
Loans held for sale 0 0
Loans and leases 4,006,176 3,525,803
Federal Reserve Bank and Federal Home Loan Bank stocks 0 0
Accrued interest receivable 0 0
Financial liabilities    
Deposits 0 0
Overnight federal funds purchased 0  
Other short- and long-term borrowings 0 0
Accrued interest payable 0 0
Carrying Amount    
Financial assets    
Cash and cash equivalents 515,271 388,038
Debt securities available for sale 1,914,271 1,882,869
Debt securities held to maturity 37,725 41,682
Common equities and mutual funds 3,527 2,874
Non-marketable equity securities 20,533 22,526
Loans held for sale 87,351 21,071
Loans and leases 4,068,511 3,529,280
Federal Reserve Bank and Federal Home Loan Bank stocks 30,890 28,812
Accrued interest receivable 22,332 17,979
Financial liabilities    
Deposits 6,306,976 5,866,037
Overnight federal funds purchased 230,000  
Other short- and long-term borrowings 34,178 36,028
Accrued interest payable 802 192
Estimated Fair Value    
Financial assets    
Cash and cash equivalents 515,271 388,038
Debt securities available for sale 1,914,271 1,882,869
Debt securities held to maturity 33,670 38,171
Common equities and mutual funds 3,527 2,874
Non-marketable equity securities 20,533 22,526
Loans held for sale 87,351 21,071
Loans and leases 4,006,176 3,525,803
Federal Reserve Bank and Federal Home Loan Bank stocks 30,890 28,812
Accrued interest receivable 22,332 17,979
Financial liabilities    
Deposits 6,306,818 5,865,854
Overnight federal funds purchased 230,000  
Other short- and long-term borrowings 31,853 35,986
Accrued interest payable $ 802 $ 192