PATHWARD FINANCIAL, INC., 10-Q filed on 2/8/2024
Quarterly Report
v3.24.0.1
Cover Page - shares
 3 Months Ended
Dec. 31, 2023
Jan. 31, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 31, 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, $.01 par value  
Trading Symbol CASH  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   25,490,775
Entity Central Index Key 0000907471  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.24.0.1
Condensed Consolidated Statements of Financial Condition - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
ASSETS    
Cash and cash equivalents $ 671,630 $ 375,580
Securities available for sale, at fair value 1,850,581 1,804,228
Securities held to maturity, at amortized cost (fair value $32,180 and $31,425, respectively) 35,440 36,591
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 23,694 28,210
Loans held for sale 69,518 77,779
Loans and leases 4,426,281 4,366,116
Allowance for credit losses (53,785) (49,705)
Accrued interest receivable 27,080 23,282
Premises, furniture, and equipment, net 38,270 39,160
Rental equipment, net 228,916 211,750
Goodwill and intangible assets 329,241 330,225
Other assets 280,571 292,327
Total assets 7,927,437 7,535,543
LIABILITIES    
Deposits 6,936,055 6,589,182
Short-term borrowings 0 13,000
Long-term borrowings 33,614 33,873
Accrued expenses and other liabilities 228,486 248,863
Total liabilities 7,198,155 6,884,918
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2023 and September 30, 2023, respectively 0 0
Additional paid-in capital 629,737 628,500
Retained earnings 293,463 278,655
Accumulated other comprehensive loss (188,433) (255,443)
Treasury stock, at cost, 111,118 and 41,980 common shares at December 31, 2023 and September 30, 2023, respectively (5,235) (344)
Total equity attributable to parent 729,792 651,630
Noncontrolling interest (510) (1,005)
Total stockholders’ equity 729,282 650,625
Total liabilities and stockholders’ equity 7,927,437 7,535,543
Common stock, $0.01 par value; 90,000,000 shares authorized, 26,099,348 and 26,225,563 shares issued, 25,988,230 and 26,183,583 shares outstanding at December 31, 2023 and September 30, 2023, respectively    
STOCKHOLDERS’ EQUITY    
Common stock 260 262
Common stock, Nonvoting, $0.01 par value; 3,000,000 shares authorized, no shares issued, none outstanding at December 31, 2023 and September 30, 2023, respectively    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.24.0.1
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
STOCKHOLDERS’ EQUITY    
Investment securities held to maturity, fair value $ 32,180 $ 31,425
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) 111,118 41,980
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) 26,099,348 26,225,563
Common stock, shares outstanding (in shares) 25,988,230 26,183,583
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
v3.24.0.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Interest and dividend income:    
Loans and leases, including fees $ 94,963 $ 68,396
Mortgage-backed securities 10,049 10,412
Other investments 10,886 6,252
Total interest and dividend income 115,898 85,060
Interest expense:    
Deposits 3,526 142
FHLB advances and other borrowings 2,336 861
Total interest expense 5,862 1,003
Net interest income 110,036 84,057
Provision for credit loss 9,890 9,776
Net interest income after provision for credit loss 100,146 74,281
Noninterest income:    
Gain on sale of trademarks 0 10,000
Gain on sale of other 2,840 502
Other income 5,179 3,555
Total noninterest income 52,761 65,777
Noninterest expense:    
Compensation and benefits 46,652 43,017
Refund transfer product expense 192 105
Refund advance expense 30 27
Card processing 34,584 22,683
Occupancy and equipment expense 8,848 8,312
Operating lease equipment depreciation 10,423 9,628
Legal and consulting 4,892 9,459
Intangible amortization 984 1,258
Impairment expense 0 24
Other expense 12,669 10,546
Total noninterest expense 119,274 105,059
Income before income tax expense 33,633 34,999
Income tax expense 5,719 6,577
Net income before noncontrolling interest 27,914 28,422
Net income attributable to noncontrolling interest 257 580
Net income attributable to parent $ 27,657 $ 27,842
Earnings per common share:    
Basic (in dollars per share) $ 1.06 $ 0.98
Diluted (in dollars per share) $ 1.06 $ 0.98
Refund transfer product fees    
Noninterest income:    
Noninterest income: $ 422 $ 677
Refund advance fee income    
Noninterest income:    
Noninterest income: 111 617
Card and deposit fees    
Noninterest income:    
Noninterest income: 30,750 37,718
Rental income    
Noninterest income:    
Noninterest income: $ 13,459 $ 12,708
v3.24.0.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income before noncontrolling interest $ 27,914 $ 28,422
Other comprehensive income (loss):    
Change in net unrealized gain on debt securities 88,535 14,708
Total 88,535 14,708
Unrealized gain on currency translation 618 387
Deferred income tax effect 22,143 3,705
Total other comprehensive income 67,010 11,390
Total comprehensive income 94,924 39,812
Total comprehensive income attributable to noncontrolling interest 257 580
Comprehensive income attributable to parent $ 94,667 $ 39,232
v3.24.0.1
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Total Pathward Financial, Inc. Stockholders’ Equity
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Noncontrolling interest
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 (1,402) (1,402)     (1,402)      
Issuance of common stock due to restricted stock 1 1 1          
Repurchases of common stock (26,932) (26,932) (7) 7 (24,943)   (1,989)  
Stock compensation 3,271 3,271   3,271        
Total other comprehensive income 11,390 11,390       11,390    
Net income 28,422 27,842     27,842     580
Net distribution to noncontrolling interests (757)             (757)
Ending Balance at Dec. 31, 2022 659,133 659,340 282 620,681 246,891 (201,690) (6,824) (207)
Beginning Balance at Sep. 30, 2023 650,625 651,630 262 628,500 278,655 (255,443) (344) (1,005)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (1,299) (1,299)     (1,299)      
Issuance of common stock due to restricted stock 1 1 1          
Repurchases of common stock (15,918) (15,918) (3) 3 (11,027)   (4,891)  
Stock compensation 1,234 1,234   1,234        
Total other comprehensive income 67,010 67,010       67,010    
Joint venture membership interest divestiture (523) (523)     (523)      
Net income 27,914 27,657     27,657     257
Net distribution to noncontrolling interests 238             238
Ending Balance at Dec. 31, 2023 $ 729,282 $ 729,792 $ 260 $ 629,737 $ 293,463 $ (188,433) $ (5,235) $ (510)
v3.24.0.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]    
Cash dividends declared on common stock (in dollars per share) $ 0.05 $ 0.05
v3.24.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:    
Net income before noncontrolling interest $ 27,914 $ 28,422
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 14,689 14,566
Provision for credit loss 9,890 9,776
Provision for deferred taxes 1,162 2,255
Originations of loans held for sale (631,905) (398,798)
Proceeds from sales of loans held for sale 626,336 402,870
Net change in loans held for sale 13,829 (84)
Net realized (gain) on trademarks 0 (10,000)
Net realized (gain) on other (2,840) (502)
Impairment on rental equipment 0 24
Net change in accrued interest receivable (3,798) (2,191)
Net change in other assets (14,344) 16,986
Net change in accrued expenses and other liabilities (19,723) (24,222)
Stock compensation 1,234 3,271
Net cash provided by operating activities 22,444 42,373
Cash flows from investing activities:    
Proceeds from maturities of and principal collected on securities available for sale 41,936 49,069
Proceeds from maturities of and principal collected on securities held to maturity 1,093 1,058
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock (91,130) (57,760)
Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 95,647 57,760
Purchases of loans and leases (89,390) (67,649)
Net change in loans and leases 98,895 217,812
Purchases of premises, furniture, and equipment (1,885) (1,989)
Purchases of rental equipment (106,160) (164,245)
Proceeds from sales of rental equipment 3,373 1,495
Net change in rental equipment (79) (109)
Proceeds from sales of foreclosed real estate and repossessed assets 0 1
Proceeds from sale of trademarks 0 10,000
Proceeds from sale of other assets 4,077 0
Net cash (used in) provided by investing activities (43,623) 45,443
Cash flows from financing activities:    
Net change in deposits 346,873 (76,905)
Net change in short-term borrowings (13,000) 0
Principal payments on other liabilities (284) (573)
Payment of debt issuance costs 0 (504)
Dividends paid on common stock (1,299) (1,402)
Issuance of common stock due to restricted stock 1 1
Repurchases of common stock (15,918) (26,932)
Distributions to noncontrolling interest 238 (757)
Net cash provided by (used in) financing activities 316,611 (107,072)
Effect of exchange rate changes on cash 618 387
Net change in cash and cash equivalents 296,050 (18,869)
Cash and cash equivalents at beginning of fiscal year 375,580 388,038
Cash and cash equivalents at end of fiscal period 671,630 369,169
Supplemental disclosure of cash flow information:    
Interest 4,168 478
Income taxes 641 492
Franchise and other taxes 66 66
Supplemental schedule of non-cash investing activities:    
Loans and leases to rental equipment 1,430 1,405
Rental equipment to loan and leases 76,941 128,145
Recognition of operating lease ROU assets, net of measurements 654 0
Joint venture membership interest divestiture $ 523 $ 0
v3.24.0.1
BASIS OF PRESENTATION
 3 Months Ended
Dec. 31, 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, 2023 included in Pathward Financial, Inc.’s ("Pathward Financial" or the “Company") Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 21, 2023. 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 months ended December 31, 2023 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2024.

Certain prior fiscal year amounts have been reclassified to conform to the current year financial statement presentation. These reclassifications did not impact previously reported net income, comprehensive income or the statement of financial condition.

Additionally, certain prior fiscal year amounts within Note 4. Loans and Leases, Net have been revised. Prior fiscal year tables that were revised include the amortized cost basis of loans and leases by asset classification and year of origination, nonaccrual loans and leases by year of origination, and loans and leases that are 90 days or more delinquent and accruing by year of origination. The revisions were related to the year of origination and did not impact total loan balances, total asset classification balances, total nonaccrual balances, or total past due loan balances.
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
 3 Months Ended
Dec. 31, 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, 2023 remain substantially unchanged.

The following ASU became effective for the Company on October 1, 2023, and did not have a material impact on the Company’s significant accounting policies or Condensed Consolidated Financial Statements:

ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate accounting guidance for troubled-debt restructurings ("TDRs") by creditors in Subtopic ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors, and enhance disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU also requires current-period gross charge-offs by year of origination to be disclosed for loans and leases within scope of Topic 326.
v3.24.0.1
SECURITIES
 3 Months Ended
Dec. 31, 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 December 31, 2023
Corporate securities$25,000 $— $(6,625)$18,375 
SBA securities94,458 — (6,726)87,732 
Obligations of states and political subdivisions2,351 — (47)2,304 
Non-bank qualified obligations of states and political subdivisions262,999 25 (34,136)228,888 
Asset-backed securities244,965 96 (7,357)237,704 
Mortgage-backed securities1,471,376 27 (195,825)1,275,578 
Total debt securities AFS$2,101,149 $148 $(250,716)$1,850,581 
At September 30, 2023
Corporate securities$25,000 $— $(6,750)$18,250 
SBA securities95,549 — (10,307)85,242 
Obligations of states and political subdivisions2,368 — (79)2,289 
Non-bank qualified obligations of states and political subdivisions269,396 — (42,673)226,723 
Asset-backed securities255,384 234 (9,419)246,199 
Mortgage-backed securities1,495,636 — (270,111)1,225,525 
Total debt securities AFS$2,143,333 $234 $(339,339)$1,804,228 
Debt Securities HTM
At December 31, 2023
Non-bank qualified obligations of states and political subdivisions$33,337 $— $(3,050)$30,287 
Mortgage-backed securities2,103 — (210)1,893 
Total debt securities HTM$35,440 $— $(3,260)$32,180 
At September 30, 2023
Non-bank qualified obligations of states and political subdivisions$34,415 $— $(4,844)$29,571 
Mortgage-backed securities2,176 — (322)1,854 
Total debt securities HTM$36,591 $— $(5,166)$31,425 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
At December 31, 2023
Corporate securities$— $— $18,375 $(6,625)$18,375 $(6,625)
SBA securities23,502 (742)64,229 (5,984)87,731 (6,726)
Obligations of state and political subdivisions— — 2,304 (47)2,304 (47)
Non-bank qualified obligations of states and political subdivisions1,616 (18)225,198 (34,118)226,814 (34,136)
Asset-backed securities86,695 (257)112,043 (7,100)198,738 (7,357)
Mortgage-backed securities17,688 (245)1,256,811 (195,580)1,274,499 (195,825)
Total debt securities AFS$129,501 $(1,262)$1,678,960 $(249,454)$1,808,461 $(250,716)
At September 30, 2023
Corporate securities$— $— $18,250 $(6,750)$18,250 $(6,750)
SBA securities22,327 (1,919)62,915 (8,388)85,242 (10,307)
Obligations of state and political subdivisions— — 2,289 (79)2,289 (79)
Non-bank qualified obligations of states and political subdivisions5,010 (83)221,714 (42,590)226,723 (42,673)
Asset-backed securities46,528 (224)115,608 (9,195)162,136 (9,419)
Mortgage-backed securities18,311 (944)1,207,214 (269,167)1,225,525 (270,111)
Total debt securities AFS$92,176 $(3,170)$1,627,990 $(336,169)$1,720,165 $(339,339)
Debt Securities HTM
At December 31, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $30,287 $(3,050)$30,287 $(3,050)
Mortgage-backed securities— — 1,893 (210)1,893 (210)
Total debt securities HTM$— $— $32,180 $(3,260)$32,180 $(3,260)
At September 30, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $29,571 $(4,844)$29,571 $(4,844)
Mortgage-backed securities— — 1,854 (322)1,854 (322)
Total debt securities HTM$— $— $31,425 $(5166)$31,425 $(5,166)

The increase in the fair value of investment securities balances when comparing December 31, 2023 to September 30, 2023 was primarily driven by decreases in unrealized losses due to steady interest rates during the three months. At December 31, 2023, there were 199 securities AFS in an unrealized loss position. All of the mortgage-backed securities ("MBS") in an unrealized loss position at December 31, 2023 were government guaranteed. Management assessed each investment security with unrealized losses for credit loss and determined all unrealized losses on these securities were due to adverse market conditions and/or change 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 December 31, 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 December 31, 2023At September 30, 2023
Debt Securities AFSAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$3,597 $3,579 $5,023 $4,971 
Due after one year through five years11,172 10,523 11,175 10,292 
Due after five years through ten years79,137 68,613 79,139 66,428 
Due after ten years535,867 492,288 552,360 497,012 
629,773 575,003 647,697 578,703 
Mortgage-backed securities1,471,376 1,275,578 1,495,636 1,225,525 
Total debt securities AFS$2,101,149 $1,850,581 $2,143,333 $1,804,228 
Debt Securities HTM
Due after ten years$33,337 $30,287 $34,415 $29,571 
33,337 30,287 34,415 29,571 
Mortgage-backed securities2,103 1,893 2,176 1,854 
Total debt securities HTM$35,440 $32,180 $36,591 $31,425 

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 December 31, 2023 and September 30, 2023. 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 $4.0 million and $8.5 million at December 31, 2023 and at September 30, 2023, 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 cost approximates fair value.

Equity Securities. The Company held $4.2 million and $3.4 million in marketable equity securities within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2023 and September 30, 2023, respectively. The Company recognized $0.1 million and zero in unrealized gains on marketable equity securities during the three months ended December 31, 2023 and 2022, respectively. No such securities were sold during the three months ended December 31, 2023.
Non-marketable equity securities with a readily determinable fair value totaled $9.7 million and $8.4 million at December 31, 2023 and September 30, 2023, respectively. The Company recognized $0.3 million and $0.1 million in unrealized gains during the three months ended December 31, 2023 and 2022, respectively. No such securities were sold during the three months ended December 31, 2023.

Non-marketable equity securities without readily determinable fair value totaled $14.9 million and $16.2 million at December 31, 2023 and September 30, 2023, respectively. There was one such security sold during the three months ended December 31, 2023 for a $2.5 million gain.

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 no impairment for such investments for the three months ended December 31, 2023 and 2022, respectively.
v3.24.0.1
LOANS AND LEASES, NET
 3 Months Ended
Dec. 31, 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)December 31, 2023September 30, 2023
Term lending$1,452,274 $1,308,133 
Asset-based lending379,681 382,371 
Factoring335,953 358,344 
Lease financing188,889 183,392 
Insurance premium finance671,035 800,077 
SBA/USDA546,048 524,750 
Other commercial finance160,628 166,091 
Commercial finance3,734,508 3,723,158 
Consumer finance301,510 254,416 
Tax services33,435 5,192 
Warehouse finance349,911 376,915 
Total loans and leases4,419,364 4,359,681 
Net deferred loan origination costs6,917 6,435 
Total gross loans and leases4,426,281 4,366,116 
Allowance for credit losses(53,785)(49,705)
Total loans and leases, net$4,372,496 $4,316,411 

During the three months ended December 31, 2023 and 2022, the Company originated $631.9 million and $398.8 million of commercial finance and consumer finance as held for sale, respectively.

The Company sold held for sale loans resulting in proceeds of $626.3 million and a nominal gain on sale during the three months ended December 31, 2023. The Company sold held for sale loans resulting in proceeds of $402.9 million and gain on sale of $0.1 million during the three months ended December 31, 2022.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Three Months Ended December 31,
(Dollars in thousands)20232022
Loans Purchased
Loans held for investment:
Warehouse finance$89,390 $67,649 
Total purchases$89,390 $67,649 
Loans Sold
Loans held for sale:
Commercial finance$3,872 $855 
Consumer finance622,464 402,015 
Total sales$626,336 $402,870 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)December 31, 2023September 30, 2023
Minimum lease payments receivable$197,829 $191,807 
Unguaranteed residual assets14,388 12,709 
Unamortized initial direct costs114 141 
Unearned income(23,181)(21,124)
Total net investment in direct financing and sales-type leases$189,150 $183,533 

The components of total lease income were as follows:
Three Months Ended December 31,
(Dollars in thousands)20232022
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$3,108 $3,143 
Leasing and equipment finance noninterest income
Lease income from operating lease payments13,255 12,554 
Other(1)
724 702 
Total leasing and equipment finance noninterest income13,979 13,256 
Total lease income$17,087 $16,399 
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.
Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$60,302 
202554,431 
202633,348 
202720,287 
202815,912 
Thereafter13,549 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases197,829 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$197,829 

The Company did not record any contingent rental income from direct financing and sales-type leases in the three months ended December 31, 2023.

A number of factors affected the economic environment in 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 these 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 these factors impacting the economy and will refine its estimate as developments occur and more information becomes available.

Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
Three Months Ended December 31, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$25,686 $5,822 $(5,121)$626 $27,013 
Asset-based lending2,738 (1,510)— 142 1,370 
Factoring6,566 751 (23)139 7,433 
Lease financing3,302 766 (153)93 4,008 
Insurance premium finance2,637 (239)(365)90 2,123 
SBA/USDA2,962 327 — — 3,289 
Other commercial finance3,089 223 — — 3,312 
Commercial finance46,980 6,140 (5,662)1,090 48,548 
Consumer finance2,346 2,097 (63)— 4,380 
Tax services2 1,356 (1,145)294 507 
Warehouse finance377 (27)— — 350 
Total loans and leases49,705 9,566 (6,870)1,384 53,785 
Unfunded commitments(1)
272 324 — — 596 
Total $49,977 $9,890 $(6,870)$1,384 $54,381 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended December 31, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $3,671 $(1,817)$277 $26,752 
Asset-based lending1,050 2,853 — — 3,903 
Factoring6,556 (764)(121)3 5,674 
Lease financing5,902 (438)(406)180 5,238 
Insurance premium finance1,450 (47)(185)43 1,261 
SBA/USDA3,263 (651)— 20 2,632 
Other commercial finance1,310 2,046 — — 3,356 
Commercial finance44,152 6,670 (2,529)523 48,816 
Consumer finance1,463 1,603 (179)— 2,887 
Tax services5 1,637 (1,731)698 609 
Warehouse finance327 (47)— — 280 
Total loans and leases45,947 9,863 (4,439)1,221 52,592 
Unfunded commitments(1)
366 (87)— — 279 
Total $46,313 $9,776 $(4,439)$1,221 $52,871 
(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 December 31, 2023At September 30, 2023
Term lending$4,160 $3,516 
Asset-based lending7,731 19,226 
Factoring3,562 1,133 
Lease financing593 630 
SBA/USDA2,591 750 
Commercial finance(1)
18,637 25,255 
Total$18,637 $25,255 
(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 $114.3 million and $117.0 million at December 31, 2023 and at September 30, 2023, 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 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. The Company individually evaluates loans and leases that do not share similar risk characteristics with other financial assets, which generally means loans and leases identified as modifications or loans and leases on nonaccrual status.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the allowable Allowance for Credit Losses.

The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in its evaluation of the appropriateness of the ACL on these portfolios, and as such, these loans are not included in the asset classification table below. The outstanding balances of consumer finance loans and tax services loans were $301.5 million and $33.4 million at December 31, 2023, respectively, and $254.4 million and $5.2 million at September 30, 2023, 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 December 31, 202320242023202220212020Prior
Term lending
Pass$234,250 $496,789 $138,710 $110,564 $59,710 $55,391 $— $1,095,414 
Watch61,518 32,021 43,154 23,282 13,908 2,416 — 176,299 
Special mention922 24,558 13,232 26,952 572 283 — 66,519 
Substandard9,393 25,451 27,768 13,345 23,610 4,953 — 104,520 
Doubtful715 1,202 4,300 976 879 1,450 — 9,522 
Total306,798 580,021 227,164 175,119 98,679 64,493 — 1,452,274 
Current period charge-offs— 118 2,524 1,673 618 188 — 5,121 
Asset-based lending
Pass— — — — — — 187,835 187,835 
Watch— — — — — — 159,962 159,962 
Special mention— — — — — — 22,378 22,378 
Substandard— — — — — — 9,506 9,506 
Total— — — — — — 379,681 379,681 
Current period charge-offs— — — — — — — — 
Factoring
Pass— — — — — — 253,129 253,129 
Watch— — — — — — 63,492 63,492 
Special mention— — — — — — 5,528 5,528 
Substandard— — — — — — 13,804 13,804 
Total— — — — — — 335,953 335,953 
Current period charge-offs— — — — — — 23 23 
Lease financing
Pass26,190 62,933 13,847 13,464 22,422 2,564 — 141,420 
Watch1,266 458 9,747 10,573 3,769 1,635 — 27,448 
Special mention— 2 — 175 360 265 — 802 
Substandard— 6,126 2,005 5,642 2,884 2,272 — 18,929 
Doubtful— — — 64 — 226 — 290 
Total27,456 69,519 25,599 29,918 29,435 6,962 — 188,889 
Current period charge-offs— — 44 42 67 — — 153 
Insurance premium finance
Pass238,408 430,949 352 — — — — 669,709 
Watch— 251 — — — — — 251 
Special mention— 420 — — — — — 420 
Substandard— 317 4 — — — — 321 
Doubtful— 326 8 — — — — 334 
Total238,408 432,263 364 — — — — 671,035 
Current period charge-offs— 202 163 — — — — 365 
SBA/USDA
Pass27,424 154,580 147,067 24,847 35,508 26,629 — 416,055 
Watch— 53,475 48,374 650 61 3,309 — 105,869 
Special mention— — — 525 — — — 525 
Substandard— 252 2,339 1,706 5,377 13,925 — 23,599 
Total27,424 208,307 197,780 27,728 40,946 43,863 — 546,048 
Current period charge-offs— — — — — — — — 
Other commercial finance
Pass— 2,300 18,958 32,615 1,105 76,911 — 131,889 
Watch— 1,736 — — — — — 1,736 
Substandard— 2,717 58 24,228 — — — 27,003 
Total— 6,753 19,016 56,843 1,105 76,911 — 160,628 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 349,911 349,911 
Total— — — — — — 349,911 349,911 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass526,272 1,147,551 318,934 181,490 118,745 161,495 790,875 3,245,362 
Watch62,784 87,941 101,275 34,505 17,738 7,360 223,454 535,057 
Special mention922 24,980 13,232 27,652 932 548 27,906 96,172 
Substandard9,393 34,863 32,174 44,921 31,871 21,150 23,310 197,682 
Doubtful715 1,528 4,308 1,040 879 1,676 — 10,146 
Total$600,086 $1,296,863 $469,923 $289,608 $170,165 $192,229 $1,065,545 $4,084,419 
Current period charge-offs$— $320 $2,731 $1,715 $685 $188 $23 $5,662 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Term lending
Pass$539,448 $149,190 $99,677 $73,132 $14,368 $85,812 $— $961,627 
Watch53,481 51,036 58,041 12,230 4,483 727 — 179,998 
Special mention26,539 13,853 20,463 723 2,932 75 — 64,585 
Substandard20,437 30,451 14,729 24,613 3,872 764 — 94,866 
Doubtful200 2,655 1,691 1,121 165 1,225 — 7,057 
Total640,105 247,185 194,601 111,819 25,820 88,603 — 1,308,133 
Asset-based lending
Pass— — — — — — 161,744 161,744 
Watch— — — — — — 174,243 174,243 
Special mention— — — — — — 26,382 26,382 
Substandard— — — — — — 19,501 19,501 
Doubtful— — — — — — 501 501 
Total— — — — — — 382,371 382,371 
Factoring
Pass— — — — — — 270,754 270,754 
Watch— — — — — — 70,833 70,833 
Special mention— — — — — — 8,892 8,892 
Substandard— — — — — — 7,865 7,865 
Total— — — — — — 358,344 358,344 
Lease financing
Pass57,123 15,941 15,167 27,489 4,036 1,281 — 121,037 
Watch793 10,436 12,566 4,494 1,579 55 — 29,923 
Special mention— — 847 415 195 — — 1,457 
Substandard14,890 1,983 7,082 3,660 3,062 33 — 30,710 
Doubtful— — 71 61 — 133 — 265 
Total72,806 28,360 35,733 36,119 8,872 1,502 — 183,392 
Insurance premium finance
Pass797,267 1,210 — — — — — 798,477 
Watch858 34 — — — — — 892 
Special mention250 15 — — — — — 265 
Substandard91 20 — — — — — 111 
Doubtful180 152 — — — — — 332 
Total798,646 1,431 — — — — — 800,077 
SBA/USDA
Pass158,675 148,525 26,244 36,274 8,798 18,252 — 396,768 
Watch49,010 48,833 658 51 357 2,572 — 101,481 
Special mention— — 530 — — — — 530 
Substandard252 2,356 1,718 5,418 8,509 7,718 — 25,971 
Total207,937 199,714 29,150 41,743 17,664 28,542 — 524,750 
Other commercial finance
Pass2,330 18,927 32,737 1,137 10,122 69,927 — 135,180 
Watch1,742 — — — — — — 1,742 
Substandard2,753 450 25,708 — — 258 — 29,169 
Total6,825 19,377 58,445 1,137 10,122 70,185 — 166,091 
Warehouse finance
Pass— — — — — — 376,915 376,915 
Total— — — — — — 376,915 376,915 
Total loans and leases
Pass1,554,843 333,793 173,825 138,032 37,324 175,272 809,413 3,222,502 
Watch105,884 110,339 71,265 16,775 6,419 3,354 245,076 559,112 
Special mention26,789 13,868 21,840 1,138 3,127 75 35,274 102,111 
Substandard38,423 35,260 49,237 33,691 15,443 8,773 27,366 208,193 
Doubtful380 2,807 1,762 1,182 165 1,358 501 8,155 
Total$1,726,319 $496,067 $317,929 $190,818 $62,478 $188,832 $1,117,630 $4,100,073 

Past due loans and leases were as follows:
At December 31, 2023
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$1,173 $786 $661 $2,620 $66,898 $69,518 $661 $— $661 
Term lending28,694 6,156 14,385 49,235 1,403,039 1,452,274 4,006 17,978 21,984 
Asset-based lending— — 123 123 379,558 379,681 — 4,593 4,593 
Factoring— — — — 335,953 335,953 — 1,173 1,173 
Lease financing1,944 1,107 2,161 5,212 183,677 188,889 1,488 1,645 3,133 
Insurance premium finance2,666 999 1,924 5,589 665,446 671,035 1,924 — 1,924 
SBA/USDA102 79 2,146 2,327 543,721 546,048 444 2,710 3,154 
Other commercial finance— — — — 160,628 160,628 — — — 
Commercial finance33,406 8,341 20,739 62,486 3,672,022 3,734,508 7,862 28,099 35,961 
Consumer finance4,258 3,345 2,859 10,462 291,048 301,510 2,859 — 2,859 
Tax services— — — — 33,435 33,435 — — — 
Warehouse finance— — — — 349,911 349,911 — — — 
Total loans and leases held for investment37,664 11,686 23,598 72,948 4,346,416 4,419,364 10,721 28,099 38,820 
Total loans and leases$38,837 $12,472 $24,259 $75,568 $4,413,314 $4,488,882 $11,382 $28,099 $39,481 
At September 30, 2023
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$626 $549 $306 $1,481 $76,298 $77,779 $306 $— $306 
Term lending13,898 7,723 11,136 32,757 1,275,376 1,308,133 3,737 15,324 19,061 
Asset-based lending— — 123 123 382,248 382,371 — 18,082 18,082 
Factoring— — — — 358,344 358,344 — 1,298 1,298 
Lease financing6,865 158 4,828 11,851 171,541 183,392 4,242 1,666 5,908 
Insurance premium finance2,159 1,262 2,339 5,760 794,317 800,077 2,339 — 2,339 
SBA/USDA512 — 1,835 2,347 522,403 524,750 833 1,002 1,835 
Other commercial finance— — 91 91 166,000 166,091 91 — 91 
Commercial finance23,434 9,143 20,352 52,929 3,670,229 3,723,158 11,242 37,372 48,614 
Consumer finance2,992 2,425 2,210 7,627 246,789 254,416 2,210 — 2,210 
Tax services— — 5,082 5,082 110 5,192 5,082 — 5,082 
Warehouse finance— — — — 376,915 376,915 — — — 
Total loans and leases held for investment26,426 11,568 27,644 65,638 4,294,043 4,359,681 18,534 37,372 55,906 
Total loans and leases$27,052 $12,117 $27,950 $67,119 $4,370,341 $4,437,460 $18,840 $37,372 $56,212 
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 December 31, 202320242023202220212020Prior
Term lending$1,264 $2,002 $7,666 $2,082 $1,925 $3,039 $— $17,978 $— 
Asset-based lending— — — — — — 4,593 4,593 4,469 
Factoring— — — — — — 1,173 1,173 — 
Lease financing— — — 439 781 425 — 1,645 593 
SBA/USDA— 1,008 — — 1,301 401 — 2,710 750 
Commercial finance1,264 3,010 7,666 2,521 4,007 3,865 5,766 28,099 5,812 
Total nonaccrual loans and leases$1,264 $3,010 $7,666 $2,521 $4,007 $3,865 $5,766 $28,099 $5,812 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202320232022202120202019Prior
Term lending$865 $4,942 $2,933 $2,165 $3,134 $1,285 $— $15,324 $— 
Asset-based lending— — — — — — 18,082 18,082 — 
Factoring— — — — — — 1,298 1,298 — 
Lease financing— — 446 660 — 560 — 1,666 1 
SBA/USDA— 750 — — — 252 — 1,002 — 
Commercial finance865 5,692 3,379 2,825 3,134 2,097 19,380 37,372 1 
Total nonaccrual loans and leases$865 $5,692 $3,379 $2,825 $3,134 $2,097 $19,380 $37,372 $1 

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 December 31, 202320242023202220212020Prior
Loans held for sale$— $661 $— $— $— $— $— $661 
Term lending— 1,139 2,290 186 383 8 — 4,006 
Lease financing— — 498 895 95 — — 1,488 
Insurance premium finance— — 910 5 — 1,009 — 1,924 
SBA/USDA— — — — 191 253 — 444 
Commercial finance— 1,139 3,698 1,086 669 1,270 — 7,862 
Consumer finance— 1,898 706 235 — — 20 2,859 
Total loans and leases held for investment— 3,037 4,404 1,321 669 1,270 20 10,721 
Total 90 days or more delinquent and accruing$— $3,698 $4,404 $1,321 $669 $1,270 $20 $11,382 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Loans held for sale$306 $— $— $— $— $— $— $306 
Term lending1,604 1,371 500 233 29 — — 3,737 
Lease financing151 490 979 784 1,794 44 — 4,242 
Insurance premium finance— 414 114 — 334 1,477 — 2,339 
SBA/USDA— — — 833 — — — 833 
Other commercial finance— — — — — 91 — 91 
Commercial finance1,755 2,275 1,593 1,850 2,157 1,612 — 11,242 
Consumer finance891 1,045 246 — — — 28 2,210 
Tax services5,082 — — — — — — 5,082 
Total loans and leases held for investment7,728 3,320 1,839 1,850 2,157 1,612 28 18,534 
Total 90 days or more delinquent and accruing$8,034 $3,320 $1,839 $1,850 $2,157 $1,612 $28 $18,840 

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 December 31,
(Dollars in thousands)20232022
Term lending$17,419 $8,796 
Asset-based lending9,711 4,272 
Factoring1,180 708 
Lease financing1,623 3,623 
SBA/USDA1,488 1,420 
Commercial finance31,421 18,819 
Total loans and leases$31,421 $18,819 

The recognized interest income on the Company's nonaccrual loans and leases for the three months ended December 31, 2023 and 2022 was not significant.

Effective October 1, 2023, the Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on a prospective basis. Financial information at and for the quarter ended December 31, 2023 is reflected as such. The historical information disclosed is in accordance with Subtopic ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors.

Modifications made to borrowers experiencing financial difficulty during the three months ended December 31, 2023 were insignificant.

No loans were modified in a TDR during the three months ended December 31, 2022. The Company had $0.1 million of commercial finance loans that were modified within the previous 12 months experience a payment default during the three months ended December 31, 2022. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the three months ended December 31, 2022.
v3.24.0.1
EARNINGS PER COMMON SHARE ("EPS")
 3 Months Ended
Dec. 31, 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 two-class method or the treasury stock 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 upon vesting of restricted stock grants and after 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 December 31,
(Dollars in thousands, except per share data)20232022
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$27,657 $27,842 
Dividends and undistributed earnings allocated to participating securities(220)(403)
Basic net earnings available to common stockholders27,437 27,439 
Undistributed earnings allocated to nonvested restricted stockholders210 383 
Reallocation of undistributed earnings to nonvested restricted stockholders(210)(382)
Diluted net earnings available to common stockholders$27,437 $27,440 
Total weighted-average basic common shares outstanding25,776,845 28,024,541 
Effect of dilutive securities(1)
Performance share units24,693 62,282 
Total effect of dilutive securities24,693 62,282 
Total weighted-average diluted common shares outstanding25,801,538 28,086,823 
Net earnings per common share:
Basic earnings per common share$1.06 $0.98 
Diluted earnings per common share(2)
$1.06 $0.98 
(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 December 31, 2023 and 2022, respectively, were 207,074 and 411,794 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.24.0.1
RENTAL EQUIPMENT, NET
 3 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
RENTAL EQUIPMENT, NET RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
(Dollars in thousands)December 31, 2023September 30, 2023
Computers and IT networking equipment$23,958 $25,094 
Motor vehicles and other125,801 122,845 
Other furniture and equipment46,934 37,637 
Solar panels and equipment149,157 142,355 
Total345,850 327,931 
Accumulated depreciation(118,120)(117,418)
Unamortized initial direct costs1,186 1,237 
Net book value$228,916 $211,750 

Future minimum lease payments expected to be received for operating leases at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$32,519 
202536,915 
202627,052 
202719,132 
202810,461 
Thereafter10,805 
Total $136,884 
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Dec. 31, 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 December 31, 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 three months ended December 31, 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
At September 30, 2023$7,477 $— $9,110 $4,133 $20,720 
Amortization during the period(264)— (587)(133)(984)
At December 31, 2023$7,213 $— $8,523 $4,000 $19,736 
Gross carrying amount$13,774 $301 $77,578 $7,798 $99,451 
Accumulated amortization(6,561)(301)(58,137)(3,579)(68,578)
Accumulated impairment— — (10,918)(219)(11,137)
At December 31, 2023$7,213 $— $8,523 $4,000 $19,736 
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Amortization during the period(351)— (776)(131)(1,258)
At December 31, 2022$8,254 $— $11,619 $4,560 $24,433 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,370)(2,481)(59,551)(5,162)(73,564)
Accumulated impairment— — (10,918)(218)(11,136)
At December 31, 2022$8,254 $— $11,619 $4,560 $24,433 
(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 nine months of fiscal 2024 and subsequent fiscal years at December 31, 2023 was as follows:
(Dollars in thousands)
Remaining in 2024$3,148 
20253,569 
20263,223 
20272,577 
20282,267 
Thereafter4,952 
Total anticipated intangible amortization$19,736 

There were no impairments to intangible assets during the three months ended December 31, 2023 and 2022. Intangible impairment expense is recorded within the impairment expense line of the Condensed Consolidated Statements of Operations.
v3.24.0.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 3 Months Ended
Dec. 31, 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 $26.8 million and $26.9 million at December 31, 2023 and September 30, 2023, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $28.6 million and $28.8 million at December 31, 2023 and September 30, 2023, respectively.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$3,141 
20253,985 
20263,435 
20273,152 
20283,095 
Thereafter15,545 
Total undiscounted future minimum lease payments 32,353 
Discount(3,703)
Total operating lease liabilities$28,650 

The weighted-average discount rate and remaining lease term for operating leases at December 31, 2023 were as follows:
Weighted-average discount rate2.43 %
Weighted-average remaining lease term (years)9.3

The components of total lease costs for operating leases were as follows:
Three Months Ended December 31,
(Dollars in thousands)20232022
Lease expense$1,025 $1,014 
Short-term and variable lease cost(7)42 
Sublease income(370)(333)
Total lease cost for operating leases$648 $723 
v3.24.0.1
STOCKHOLDERS' EQUITY
 3 Months Ended
Dec. 31, 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. On August 25, 2023, the Company's Board of Directors announced a share repurchase program to repurchase up to an additional 7,000,000 shares of the Company's outstanding common stock on or before September 30, 2028. During the three months ended December 31, 2023 and 2022, the Company repurchased 232,588 and 653,994 shares, respectively, as part of the share repurchase programs.

Under the repurchase programs, 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 December 31, 2023, 8,433,848 shares of common stock remained available for repurchase.
For the three months ended December 31, 2023 and 2022, the Company also repurchased 103,641 and 57,291 shares, or $4.9 million and $2.0 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 no shares of common stock held in treasury during the three months ended December 31, 2023 and 2022.
v3.24.0.1
STOCK COMPENSATION
 3 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
On September 27, 2023, the Board adopted the Pathward Financial, Inc. 2023 Omnibus Incentive Plan (the "2023 Omnibus Incentive Plan") contingent on stockholder approval at the Annual Meeting of Stockholders expected to be held on February 27, 2024. The 2023 Omnibus Incentive Plan permits the granting of various types of awards including but not limited to nonvested (restricted) shares and performance share units ("PSUs") to certain officers and directors of the Company. Awards may be granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to three years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares have historically vested one year from the grant date.

The Company also grants selected executives and other key employees PSU awards. The vesting of these awards is contingent on meeting company-wide performance goals, including but not limited to return on equity, earnings per share, and total shareholder return. PSUs are generally granted at the market value of the underlying share on the date of grant, adjusted for dividends, as performance share units do not participate in dividends. The awards contingently vest over a period of three years and have payout levels ranging from a threshold of 50% to a maximum of 200%. Upon vesting, each performance share unit earned is converted into one share of common stock.

The fair value of the PSUs is determined by the dividend-adjusted fair value on the grant date for those awards subject to a performance condition. For those PSUs subject to a market condition, a simulation valuation is performed.

In addition, during the first and second quarters of fiscal year 2017, shares were granted to certain executive officers of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years.
The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the three months ended December 31, 2023.
Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2023370,151 $35.87 
Granted(1)
— — 
Vested(176,700)36.44 
Forfeited or expired(1,863)39.23 
Nonvested shares outstanding, December 31, 2023191,588 $35.31 
Number of Units(2)
Weighted Average Fair Value at Grant
Performance share units outstanding, September 30, 2023155,804 $41.20 
Granted(1)
— — 
Vested(60,984)55.47 
Forfeited or expired— — 
Performance share units outstanding, December 31, 202394,820 $55.47 
(1) While no shares were granted during the first quarter of fiscal year 2024, 150,522 of nonvested shares and 44,800 of target performance share units were issued under awards contingent on the stockholder approval of the 2023 Omnibus Incentive Plan.
(2) The activity in this table includes 60,984 shares related to the fiscal year 2021 performance share units, which are included in this table under the assumption of a target performance achievement. The final performance was assessed after September 30, 2023, resulted in an achievement greater than target, and an additional 47,252 shares were allocated to the participants in the plan.

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 fair value of nonvested (restricted) shares and PSUs granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date, adjusted for dividends where applicable. The Company has elected to record forfeitures as they occur.

At December 31, 2023, stock-based compensation expense not yet recognized in income totaled $4.1 million, which is expected to be recognized over a weighted average remaining period of 1.27 years.
v3.24.0.1
INCOME TAXES
 3 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded an income tax expense of $5.7 million for the three months ended December 31, 2023, resulting in an effective tax rate of 17.00%, compared to an income tax expense of $6.6 million, or an effective tax rate of 18.79%, for the three months ended December 31, 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 2024. 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.
Three Months Ended December 31,
(Dollars in thousands)20232022
Provision at statutory rate$7,009 $7,228 
Tax-exempt income(174)(203)
State income taxes1,228 1,510 
Interim period effective rate adjustment2,806 1,119 
Tax credit investments, net - federal(4,377)(3,062)
IRC 162(m) nondeductible compensation(280)136 
Other, net(493)(151)
Income tax expense$5,719 $6,577 
Effective tax rate17.00 %18.79 %
v3.24.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Dec. 31, 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 13. Segment Reporting to the Condensed Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Three Months Ended December 31,20232022202320222023202220232022
Net interest income(1)
$59,356 $34,272 $45,881 $42,324 $4,799 $7,461 $110,036 $84,057 
Noninterest income:
Refund transfer product fees422 677 — — — — 422 677 
Refund advance fee income(1)
111 617 — — — — 111 617 
Card and deposit fees30,507 37,452 236 261 7 5 30,750 37,718 
Rental income(1)
— — 13,235 12,515 224 193 13,459 12,708 
Gain on sale of trademarks— — — — — 10,000 — 10,000 
Gain (loss) on sale of other(1)
(31)— 362 502 2,509 — 2,840 502 
Other income(1)
1,778 793 2,166 1,084 1,235 1,678 5,179 3,555 
Total noninterest income32,787 39,539 15,999 14,362 3,975 11,876 52,761 65,777 
Revenue$92,143 $73,811 $61,880 $56,686 $8,774 $19,337 $162,797 $149,834 
(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 three months ended December 31, 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").
v3.24.0.1
SEGMENT REPORTING
 3 Months Ended
Dec. 31, 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 table presents segment data for the Company:
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Three Months Ended December 31,20232022202320222023202220232022
Net interest income$59,356 $34,272 $45,881 $42,324 $4,799 $7,461 $110,036 $84,057 
Provision for (reversal of) credit loss3,454 3,240 6,463 6,583 (27)(47)9,890 9,776 
Noninterest income32,787 39,539 15,999 14,362 3,975 11,876 52,761 65,777 
Noninterest expense50,013 34,494 34,856 32,749 34,405 37,816 119,274 105,059 
Income (loss) before income tax expense38,676 36,077 20,561 17,354 (25,604)(18,432)33,633 34,999 
Total assets563,706 393,898 4,206,522 3,476,942 3,157,209 2,788,385 7,927,437 6,659,225 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,587,052 5,624,919 3,669 6,628 345,334 157,585 6,936,055 5,789,132 
v3.24.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
 3 Months Ended
Dec. 31, 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 December 31, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,375 $18,375 
SBA securities87,732 — 87,732 — 
Obligations of states and political subdivisions2,304 — 2,304 — 
Non-bank qualified obligations of states and political subdivisions228,888 — 228,888 — 
Asset-backed securities237,704 — 237,704 — 
Mortgage-backed securities1,275,578 — 1,275,578 — 
Total debt securities AFS$1,850,581 $— $1,850,581 $— 
Common equities and mutual funds(1)
$4,207 $4,207 $— $— 
Non-marketable equity securities(2)
$9,700 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 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, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,250 $— $18,250 $— 
SBA securities85,242 — 85,242 — 
Obligations of states and political subdivisions2,289 — 2,289 — 
Non-bank qualified obligations of states and political subdivisions226,723 — 226,723 — 
Asset-backed securities246,199 — 246,199 — 
Mortgage-backed securities1,225,525 — 1,225,525 — 
Total debt securities AFS$1,804,228 $— $1,804,228 $— 
Common equities and mutual funds(1)
$3,378 $3,378 $— $— 
Non-marketable equity securities(2)
$8,389 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2023.
(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 44%.
The following tables summarize the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a nonrecurring basis:
 At December 31, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$6,441 $— $— $6,441 
    Total loans and leases, net individually evaluated for credit loss6,441 — — 6,441 
Total$6,441 $— $— $6,441 
 At September 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$21,829 $— $— $21,829 
    Total loans and leases, net individually evaluated for credit loss21,829 — — 21,829 
Total$21,829 $— $— $21,829 
 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
December 31, 2023
Fair Value at
September 30, 2023
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$6,441 $21,829 Market approach
Appraised values(1)
3% - 44%
(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 44%.

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 December 31, 2023 and September 30, 2023 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 December 31, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$671,630 $671,630 $671,630 $— $— 
Debt securities available for sale1,850,581 1,850,581 — 1,850,581 — 
Debt securities held to maturity35,440 32,180 — 32,180 — 
Common equities and mutual funds(1)
4,207 4,207 4,207 — — 
Non-marketable equity securities(1)(2)
20,195 20,195 — 10,495 — 
Loans held for sale69,518 69,518 — 69,518 — 
Loans and leases4,419,364 4,298,218 — — 4,298,218 
Federal Reserve Bank and Federal Home Loan Bank stocks23,694 23,694 — 23,694 — 
Accrued interest receivable27,080 27,080 27,080 — — 
Financial liabilities
Deposits6,936,055 6,937,613 6,795,322 142,292 — 
Other short- and long-term borrowings33,614 31,421 — 31,421 — 
Accrued interest payable1,941 1,941 1,941 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 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, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$375,580 $375,580 $375,580 $— $— 
Debt securities available for sale1,804,228 1,804,228 — 1,804,228 — 
Debt securities held to maturity36,591 31,425 — 31,425 — 
Common equities and mutual funds(1)
3,378 3,378 3,378 — — 
Non-marketable equity securities(1)(2)
20,453 20,453 — 12,064 — 
Loans held for sale77,779 77,779 — 77,779 — 
Loans and leases4,359,681 4,223,010 — — 4,223,010 
Federal Reserve Bank and Federal Home Loan Bank stocks28,210 28,210 — 28,210 — 
Accrued interest receivable23,282 23,282 23,282 — — 
Financial liabilities
Deposits6,589,182 6,589,065 6,583,648 5,417 — 
Other short- and long-term borrowings33,873 31,187 — 31,187 — 
Accrued interest payable247 247 247 — — 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2023.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.24.0.1
SUBSEQUENT EVENTS
 3 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Management has evaluated subsequent events that occurred after December 31, 2023. During this period, up to the filing date of this Quarterly Report on Form 10-Q, management did not identify any material subsequent events that would require recognition or disclosure in our Condensed Consolidated Financial Statements as of or for the quarter ended December 31, 2023.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure    
Net income attributable to Pathward Financial, Inc. $ 27,657 $ 27,842
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Glen Herrick [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
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
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Policies)
 3 Months Ended
Dec. 31, 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, 2023 remain substantially unchanged.

The following ASU became effective for the Company on October 1, 2023, and did not have a material impact on the Company’s significant accounting policies or Condensed Consolidated Financial Statements:

ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate accounting guidance for troubled-debt restructurings ("TDRs") by creditors in Subtopic ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors, and enhance disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU also requires current-period gross charge-offs by year of origination to be disclosed for loans and leases within scope of Topic 326.
v3.24.0.1
SECURITIES (Tables)
 3 Months Ended
Dec. 31, 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 December 31, 2023
Corporate securities$25,000 $— $(6,625)$18,375 
SBA securities94,458 — (6,726)87,732 
Obligations of states and political subdivisions2,351 — (47)2,304 
Non-bank qualified obligations of states and political subdivisions262,999 25 (34,136)228,888 
Asset-backed securities244,965 96 (7,357)237,704 
Mortgage-backed securities1,471,376 27 (195,825)1,275,578 
Total debt securities AFS$2,101,149 $148 $(250,716)$1,850,581 
At September 30, 2023
Corporate securities$25,000 $— $(6,750)$18,250 
SBA securities95,549 — (10,307)85,242 
Obligations of states and political subdivisions2,368 — (79)2,289 
Non-bank qualified obligations of states and political subdivisions269,396 — (42,673)226,723 
Asset-backed securities255,384 234 (9,419)246,199 
Mortgage-backed securities1,495,636 — (270,111)1,225,525 
Total debt securities AFS$2,143,333 $234 $(339,339)$1,804,228 
Debt Securities HTM
At December 31, 2023
Non-bank qualified obligations of states and political subdivisions$33,337 $— $(3,050)$30,287 
Mortgage-backed securities2,103 — (210)1,893 
Total debt securities HTM$35,440 $— $(3,260)$32,180 
At September 30, 2023
Non-bank qualified obligations of states and political subdivisions$34,415 $— $(4,844)$29,571 
Mortgage-backed securities2,176 — (322)1,854 
Total debt securities HTM$36,591 $— $(5,166)$31,425 
Securities Held to Maturity
Schedule of Unrealized Loss on Investments, AFS
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
At December 31, 2023
Corporate securities$— $— $18,375 $(6,625)$18,375 $(6,625)
SBA securities23,502 (742)64,229 (5,984)87,731 (6,726)
Obligations of state and political subdivisions— — 2,304 (47)2,304 (47)
Non-bank qualified obligations of states and political subdivisions1,616 (18)225,198 (34,118)226,814 (34,136)
Asset-backed securities86,695 (257)112,043 (7,100)198,738 (7,357)
Mortgage-backed securities17,688 (245)1,256,811 (195,580)1,274,499 (195,825)
Total debt securities AFS$129,501 $(1,262)$1,678,960 $(249,454)$1,808,461 $(250,716)
At September 30, 2023
Corporate securities$— $— $18,250 $(6,750)$18,250 $(6,750)
SBA securities22,327 (1,919)62,915 (8,388)85,242 (10,307)
Obligations of state and political subdivisions— — 2,289 (79)2,289 (79)
Non-bank qualified obligations of states and political subdivisions5,010 (83)221,714 (42,590)226,723 (42,673)
Asset-backed securities46,528 (224)115,608 (9,195)162,136 (9,419)
Mortgage-backed securities18,311 (944)1,207,214 (269,167)1,225,525 (270,111)
Total debt securities AFS$92,176 $(3,170)$1,627,990 $(336,169)$1,720,165 $(339,339)
Debt Securities HTM
At December 31, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $30,287 $(3,050)$30,287 $(3,050)
Mortgage-backed securities— — 1,893 (210)1,893 (210)
Total debt securities HTM$— $— $32,180 $(3,260)$32,180 $(3,260)
At September 30, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $29,571 $(4,844)$29,571 $(4,844)
Mortgage-backed securities— — 1,854 (322)1,854 (322)
Total debt securities HTM$— $— $31,425 $(5166)$31,425 $(5,166)
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 December 31, 2023At September 30, 2023
Debt Securities AFSAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$3,597 $3,579 $5,023 $4,971 
Due after one year through five years11,172 10,523 11,175 10,292 
Due after five years through ten years79,137 68,613 79,139 66,428 
Due after ten years535,867 492,288 552,360 497,012 
629,773 575,003 647,697 578,703 
Mortgage-backed securities1,471,376 1,275,578 1,495,636 1,225,525 
Total debt securities AFS$2,101,149 $1,850,581 $2,143,333 $1,804,228 
Debt Securities HTM
Due after ten years$33,337 $30,287 $34,415 $29,571 
33,337 30,287 34,415 29,571 
Mortgage-backed securities2,103 1,893 2,176 1,854 
Total debt securities HTM$35,440 $32,180 $36,591 $31,425 
v3.24.0.1
LOANS AND LEASES, NET (Tables)
 3 Months Ended
Dec. 31, 2023
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans Receivable
Loans and leases consist of the following:
(Dollars in thousands)December 31, 2023September 30, 2023
Term lending$1,452,274 $1,308,133 
Asset-based lending379,681 382,371 
Factoring335,953 358,344 
Lease financing188,889 183,392 
Insurance premium finance671,035 800,077 
SBA/USDA546,048 524,750 
Other commercial finance160,628 166,091 
Commercial finance3,734,508 3,723,158 
Consumer finance301,510 254,416 
Tax services33,435 5,192 
Warehouse finance349,911 376,915 
Total loans and leases4,419,364 4,359,681 
Net deferred loan origination costs6,917 6,435 
Total gross loans and leases4,426,281 4,366,116 
Allowance for credit losses(53,785)(49,705)
Total loans and leases, net$4,372,496 $4,316,411 
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 December 31,
(Dollars in thousands)20232022
Loans Purchased
Loans held for investment:
Warehouse finance$89,390 $67,649 
Total purchases$89,390 $67,649 
Loans Sold
Loans held for sale:
Commercial finance$3,872 $855 
Consumer finance622,464 402,015 
Total sales$626,336 $402,870 
Sales-type Lease, Lease Income The net investment in direct financing and sales-type leases was comprised of the following:
(Dollars in thousands)December 31, 2023September 30, 2023
Minimum lease payments receivable$197,829 $191,807 
Unguaranteed residual assets14,388 12,709 
Unamortized initial direct costs114 141 
Unearned income(23,181)(21,124)
Total net investment in direct financing and sales-type leases$189,150 $183,533 
Operating Lease, Lease Income
The components of total lease income were as follows:
Three Months Ended December 31,
(Dollars in thousands)20232022
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$3,108 $3,143 
Leasing and equipment finance noninterest income
Lease income from operating lease payments13,255 12,554 
Other(1)
724 702 
Total leasing and equipment finance noninterest income13,979 13,256 
Total lease income$17,087 $16,399 
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.
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 December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$60,302 
202554,431 
202633,348 
202720,287 
202815,912 
Thereafter13,549 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases197,829 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$197,829 
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 December 31, 2023
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$25,686 $5,822 $(5,121)$626 $27,013 
Asset-based lending2,738 (1,510)— 142 1,370 
Factoring6,566 751 (23)139 7,433 
Lease financing3,302 766 (153)93 4,008 
Insurance premium finance2,637 (239)(365)90 2,123 
SBA/USDA2,962 327 — — 3,289 
Other commercial finance3,089 223 — — 3,312 
Commercial finance46,980 6,140 (5,662)1,090 48,548 
Consumer finance2,346 2,097 (63)— 4,380 
Tax services2 1,356 (1,145)294 507 
Warehouse finance377 (27)— — 350 
Total loans and leases49,705 9,566 (6,870)1,384 53,785 
Unfunded commitments(1)
272 324 — — 596 
Total $49,977 $9,890 $(6,870)$1,384 $54,381 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Condensed Consolidated Statements of Financial Condition.
Three Months Ended December 31, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$24,621 $3,671 $(1,817)$277 $26,752 
Asset-based lending1,050 2,853 — — 3,903 
Factoring6,556 (764)(121)3 5,674 
Lease financing5,902 (438)(406)180 5,238 
Insurance premium finance1,450 (47)(185)43 1,261 
SBA/USDA3,263 (651)— 20 2,632 
Other commercial finance1,310 2,046 — — 3,356 
Commercial finance44,152 6,670 (2,529)523 48,816 
Consumer finance1,463 1,603 (179)— 2,887 
Tax services5 1,637 (1,731)698 609 
Warehouse finance327 (47)— — 280 
Total loans and leases45,947 9,863 (4,439)1,221 52,592 
Unfunded commitments(1)
366 (87)— — 279 
Total $46,313 $9,776 $(4,439)$1,221 $52,871 
(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 December 31, 2023At September 30, 2023
Term lending$4,160 $3,516 
Asset-based lending7,731 19,226 
Factoring3,562 1,133 
Lease financing593 630 
SBA/USDA2,591 750 
Commercial finance(1)
18,637 25,255 
Total$18,637 $25,255 
(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 December 31,
(Dollars in thousands)20232022
Term lending$17,419 $8,796 
Asset-based lending9,711 4,272 
Factoring1,180 708 
Lease financing1,623 3,623 
SBA/USDA1,488 1,420 
Commercial finance31,421 18,819 
Total loans and leases$31,421 $18,819 
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 December 31, 202320242023202220212020Prior
Term lending
Pass$234,250 $496,789 $138,710 $110,564 $59,710 $55,391 $— $1,095,414 
Watch61,518 32,021 43,154 23,282 13,908 2,416 — 176,299 
Special mention922 24,558 13,232 26,952 572 283 — 66,519 
Substandard9,393 25,451 27,768 13,345 23,610 4,953 — 104,520 
Doubtful715 1,202 4,300 976 879 1,450 — 9,522 
Total306,798 580,021 227,164 175,119 98,679 64,493 — 1,452,274 
Current period charge-offs— 118 2,524 1,673 618 188 — 5,121 
Asset-based lending
Pass— — — — — — 187,835 187,835 
Watch— — — — — — 159,962 159,962 
Special mention— — — — — — 22,378 22,378 
Substandard— — — — — — 9,506 9,506 
Total— — — — — — 379,681 379,681 
Current period charge-offs— — — — — — — — 
Factoring
Pass— — — — — — 253,129 253,129 
Watch— — — — — — 63,492 63,492 
Special mention— — — — — — 5,528 5,528 
Substandard— — — — — — 13,804 13,804 
Total— — — — — — 335,953 335,953 
Current period charge-offs— — — — — — 23 23 
Lease financing
Pass26,190 62,933 13,847 13,464 22,422 2,564 — 141,420 
Watch1,266 458 9,747 10,573 3,769 1,635 — 27,448 
Special mention— 2 — 175 360 265 — 802 
Substandard— 6,126 2,005 5,642 2,884 2,272 — 18,929 
Doubtful— — — 64 — 226 — 290 
Total27,456 69,519 25,599 29,918 29,435 6,962 — 188,889 
Current period charge-offs— — 44 42 67 — — 153 
Insurance premium finance
Pass238,408 430,949 352 — — — — 669,709 
Watch— 251 — — — — — 251 
Special mention— 420 — — — — — 420 
Substandard— 317 4 — — — — 321 
Doubtful— 326 8 — — — — 334 
Total238,408 432,263 364 — — — — 671,035 
Current period charge-offs— 202 163 — — — — 365 
SBA/USDA
Pass27,424 154,580 147,067 24,847 35,508 26,629 — 416,055 
Watch— 53,475 48,374 650 61 3,309 — 105,869 
Special mention— — — 525 — — — 525 
Substandard— 252 2,339 1,706 5,377 13,925 — 23,599 
Total27,424 208,307 197,780 27,728 40,946 43,863 — 546,048 
Current period charge-offs— — — — — — — — 
Other commercial finance
Pass— 2,300 18,958 32,615 1,105 76,911 — 131,889 
Watch— 1,736 — — — — — 1,736 
Substandard— 2,717 58 24,228 — — — 27,003 
Total— 6,753 19,016 56,843 1,105 76,911 — 160,628 
Current period charge-offs— — — — — — — — 
Warehouse finance
Pass— — — — — — 349,911 349,911 
Total— — — — — — 349,911 349,911 
Current period charge-offs— — — — — — — — 
Total loans and leases
Pass526,272 1,147,551 318,934 181,490 118,745 161,495 790,875 3,245,362 
Watch62,784 87,941 101,275 34,505 17,738 7,360 223,454 535,057 
Special mention922 24,980 13,232 27,652 932 548 27,906 96,172 
Substandard9,393 34,863 32,174 44,921 31,871 21,150 23,310 197,682 
Doubtful715 1,528 4,308 1,040 879 1,676 — 10,146 
Total$600,086 $1,296,863 $469,923 $289,608 $170,165 $192,229 $1,065,545 $4,084,419 
Current period charge-offs$— $320 $2,731 $1,715 $685 $188 $23 $5,662 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Term lending
Pass$539,448 $149,190 $99,677 $73,132 $14,368 $85,812 $— $961,627 
Watch53,481 51,036 58,041 12,230 4,483 727 — 179,998 
Special mention26,539 13,853 20,463 723 2,932 75 — 64,585 
Substandard20,437 30,451 14,729 24,613 3,872 764 — 94,866 
Doubtful200 2,655 1,691 1,121 165 1,225 — 7,057 
Total640,105 247,185 194,601 111,819 25,820 88,603 — 1,308,133 
Asset-based lending
Pass— — — — — — 161,744 161,744 
Watch— — — — — — 174,243 174,243 
Special mention— — — — — — 26,382 26,382 
Substandard— — — — — — 19,501 19,501 
Doubtful— — — — — — 501 501 
Total— — — — — — 382,371 382,371 
Factoring
Pass— — — — — — 270,754 270,754 
Watch— — — — — — 70,833 70,833 
Special mention— — — — — — 8,892 8,892 
Substandard— — — — — — 7,865 7,865 
Total— — — — — — 358,344 358,344 
Lease financing
Pass57,123 15,941 15,167 27,489 4,036 1,281 — 121,037 
Watch793 10,436 12,566 4,494 1,579 55 — 29,923 
Special mention— — 847 415 195 — — 1,457 
Substandard14,890 1,983 7,082 3,660 3,062 33 — 30,710 
Doubtful— — 71 61 — 133 — 265 
Total72,806 28,360 35,733 36,119 8,872 1,502 — 183,392 
Insurance premium finance
Pass797,267 1,210 — — — — — 798,477 
Watch858 34 — — — — — 892 
Special mention250 15 — — — — — 265 
Substandard91 20 — — — — — 111 
Doubtful180 152 — — — — — 332 
Total798,646 1,431 — — — — — 800,077 
SBA/USDA
Pass158,675 148,525 26,244 36,274 8,798 18,252 — 396,768 
Watch49,010 48,833 658 51 357 2,572 — 101,481 
Special mention— — 530 — — — — 530 
Substandard252 2,356 1,718 5,418 8,509 7,718 — 25,971 
Total207,937 199,714 29,150 41,743 17,664 28,542 — 524,750 
Other commercial finance
Pass2,330 18,927 32,737 1,137 10,122 69,927 — 135,180 
Watch1,742 — — — — — — 1,742 
Substandard2,753 450 25,708 — — 258 — 29,169 
Total6,825 19,377 58,445 1,137 10,122 70,185 — 166,091 
Warehouse finance
Pass— — — — — — 376,915 376,915 
Total— — — — — — 376,915 376,915 
Total loans and leases
Pass1,554,843 333,793 173,825 138,032 37,324 175,272 809,413 3,222,502 
Watch105,884 110,339 71,265 16,775 6,419 3,354 245,076 559,112 
Special mention26,789 13,868 21,840 1,138 3,127 75 35,274 102,111 
Substandard38,423 35,260 49,237 33,691 15,443 8,773 27,366 208,193 
Doubtful380 2,807 1,762 1,182 165 1,358 501 8,155 
Total$1,726,319 $496,067 $317,929 $190,818 $62,478 $188,832 $1,117,630 $4,100,073 
Past Due Loans and Leases
Past due loans and leases were as follows:
At December 31, 2023
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$1,173 $786 $661 $2,620 $66,898 $69,518 $661 $— $661 
Term lending28,694 6,156 14,385 49,235 1,403,039 1,452,274 4,006 17,978 21,984 
Asset-based lending— — 123 123 379,558 379,681 — 4,593 4,593 
Factoring— — — — 335,953 335,953 — 1,173 1,173 
Lease financing1,944 1,107 2,161 5,212 183,677 188,889 1,488 1,645 3,133 
Insurance premium finance2,666 999 1,924 5,589 665,446 671,035 1,924 — 1,924 
SBA/USDA102 79 2,146 2,327 543,721 546,048 444 2,710 3,154 
Other commercial finance— — — — 160,628 160,628 — — — 
Commercial finance33,406 8,341 20,739 62,486 3,672,022 3,734,508 7,862 28,099 35,961 
Consumer finance4,258 3,345 2,859 10,462 291,048 301,510 2,859 — 2,859 
Tax services— — — — 33,435 33,435 — — — 
Warehouse finance— — — — 349,911 349,911 — — — 
Total loans and leases held for investment37,664 11,686 23,598 72,948 4,346,416 4,419,364 10,721 28,099 38,820 
Total loans and leases$38,837 $12,472 $24,259 $75,568 $4,413,314 $4,488,882 $11,382 $28,099 $39,481 
At September 30, 2023
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$626 $549 $306 $1,481 $76,298 $77,779 $306 $— $306 
Term lending13,898 7,723 11,136 32,757 1,275,376 1,308,133 3,737 15,324 19,061 
Asset-based lending— — 123 123 382,248 382,371 — 18,082 18,082 
Factoring— — — — 358,344 358,344 — 1,298 1,298 
Lease financing6,865 158 4,828 11,851 171,541 183,392 4,242 1,666 5,908 
Insurance premium finance2,159 1,262 2,339 5,760 794,317 800,077 2,339 — 2,339 
SBA/USDA512 — 1,835 2,347 522,403 524,750 833 1,002 1,835 
Other commercial finance— — 91 91 166,000 166,091 91 — 91 
Commercial finance23,434 9,143 20,352 52,929 3,670,229 3,723,158 11,242 37,372 48,614 
Consumer finance2,992 2,425 2,210 7,627 246,789 254,416 2,210 — 2,210 
Tax services— — 5,082 5,082 110 5,192 5,082 — 5,082 
Warehouse finance— — — — 376,915 376,915 — — — 
Total loans and leases held for investment26,426 11,568 27,644 65,638 4,294,043 4,359,681 18,534 37,372 55,906 
Total loans and leases$27,052 $12,117 $27,950 $67,119 $4,370,341 $4,437,460 $18,840 $37,372 $56,212 
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 December 31, 202320242023202220212020Prior
Term lending$1,264 $2,002 $7,666 $2,082 $1,925 $3,039 $— $17,978 $— 
Asset-based lending— — — — — — 4,593 4,593 4,469 
Factoring— — — — — — 1,173 1,173 — 
Lease financing— — — 439 781 425 — 1,645 593 
SBA/USDA— 1,008 — — 1,301 401 — 2,710 750 
Commercial finance1,264 3,010 7,666 2,521 4,007 3,865 5,766 28,099 5,812 
Total nonaccrual loans and leases$1,264 $3,010 $7,666 $2,521 $4,007 $3,865 $5,766 $28,099 $5,812 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
At September 30, 202320232022202120202019Prior
Term lending$865 $4,942 $2,933 $2,165 $3,134 $1,285 $— $15,324 $— 
Asset-based lending— — — — — — 18,082 18,082 — 
Factoring— — — — — — 1,298 1,298 — 
Lease financing— — 446 660 — 560 — 1,666 1 
SBA/USDA— 750 — — — 252 — 1,002 — 
Commercial finance865 5,692 3,379 2,825 3,134 2,097 19,380 37,372 1 
Total nonaccrual loans and leases$865 $5,692 $3,379 $2,825 $3,134 $2,097 $19,380 $37,372 $1 

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 December 31, 202320242023202220212020Prior
Loans held for sale$— $661 $— $— $— $— $— $661 
Term lending— 1,139 2,290 186 383 8 — 4,006 
Lease financing— — 498 895 95 — — 1,488 
Insurance premium finance— — 910 5 — 1,009 — 1,924 
SBA/USDA— — — — 191 253 — 444 
Commercial finance— 1,139 3,698 1,086 669 1,270 — 7,862 
Consumer finance— 1,898 706 235 — — 20 2,859 
Total loans and leases held for investment— 3,037 4,404 1,321 669 1,270 20 10,721 
Total 90 days or more delinquent and accruing$— $3,698 $4,404 $1,321 $669 $1,270 $20 $11,382 
Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202320232022202120202019Prior
Loans held for sale$306 $— $— $— $— $— $— $306 
Term lending1,604 1,371 500 233 29 — — 3,737 
Lease financing151 490 979 784 1,794 44 — 4,242 
Insurance premium finance— 414 114 — 334 1,477 — 2,339 
SBA/USDA— — — 833 — — — 833 
Other commercial finance— — — — — 91 — 91 
Commercial finance1,755 2,275 1,593 1,850 2,157 1,612 — 11,242 
Consumer finance891 1,045 246 — — — 28 2,210 
Tax services5,082 — — — — — — 5,082 
Total loans and leases held for investment7,728 3,320 1,839 1,850 2,157 1,612 28 18,534 
Total 90 days or more delinquent and accruing$8,034 $3,320 $1,839 $1,850 $2,157 $1,612 $28 $18,840 
v3.24.0.1
EARNINGS PER COMMON SHARE ("EPS") (Tables)
 3 Months Ended
Dec. 31, 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 December 31,
(Dollars in thousands, except per share data)20232022
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$27,657 $27,842 
Dividends and undistributed earnings allocated to participating securities(220)(403)
Basic net earnings available to common stockholders27,437 27,439 
Undistributed earnings allocated to nonvested restricted stockholders210 383 
Reallocation of undistributed earnings to nonvested restricted stockholders(210)(382)
Diluted net earnings available to common stockholders$27,437 $27,440 
Total weighted-average basic common shares outstanding25,776,845 28,024,541 
Effect of dilutive securities(1)
Performance share units24,693 62,282 
Total effect of dilutive securities24,693 62,282 
Total weighted-average diluted common shares outstanding25,801,538 28,086,823 
Net earnings per common share:
Basic earnings per common share$1.06 $0.98 
Diluted earnings per common share(2)
$1.06 $0.98 
(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 December 31, 2023 and 2022, respectively, were 207,074 and 411,794 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.24.0.1
RENTAL EQUIPMENT, NET (Tables)
 3 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Rental Equipment
Rental equipment consists of the following:
(Dollars in thousands)December 31, 2023September 30, 2023
Computers and IT networking equipment$23,958 $25,094 
Motor vehicles and other125,801 122,845 
Other furniture and equipment46,934 37,637 
Solar panels and equipment149,157 142,355 
Total345,850 327,931 
Accumulated depreciation(118,120)(117,418)
Unamortized initial direct costs1,186 1,237 
Net book value$228,916 $211,750 
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments expected to be received for operating leases at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$32,519 
202536,915 
202627,052 
202719,132 
202810,461 
Thereafter10,805 
Total $136,884 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$3,141 
20253,985 
20263,435 
20273,152 
20283,095 
Thereafter15,545 
Total undiscounted future minimum lease payments 32,353 
Discount(3,703)
Total operating lease liabilities$28,650 
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 3 Months Ended
Dec. 31, 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
At September 30, 2023$7,477 $— $9,110 $4,133 $20,720 
Amortization during the period(264)— (587)(133)(984)
At December 31, 2023$7,213 $— $8,523 $4,000 $19,736 
Gross carrying amount$13,774 $301 $77,578 $7,798 $99,451 
Accumulated amortization(6,561)(301)(58,137)(3,579)(68,578)
Accumulated impairment— — (10,918)(219)(11,137)
At December 31, 2023$7,213 $— $8,523 $4,000 $19,736 
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Amortization during the period(351)— (776)(131)(1,258)
At December 31, 2022$8,254 $— $11,619 $4,560 $24,433 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,370)(2,481)(59,551)(5,162)(73,564)
Accumulated impairment— — (10,918)(218)(11,136)
At December 31, 2022$8,254 $— $11,619 $4,560 $24,433 
(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 nine months of fiscal 2024 and subsequent fiscal years at December 31, 2023 was as follows:
(Dollars in thousands)
Remaining in 2024$3,148 
20253,569 
20263,223 
20272,577 
20282,267 
Thereafter4,952 
Total anticipated intangible amortization$19,736 
v3.24.0.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES (Tables)
 3 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments expected to be received for operating leases at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$32,519 
202536,915 
202627,052 
202719,132 
202810,461 
Thereafter10,805 
Total $136,884 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2023 were as follows:
(Dollars in thousands)
Remaining in 2024$3,141 
20253,985 
20263,435 
20273,152 
20283,095 
Thereafter15,545 
Total undiscounted future minimum lease payments 32,353 
Discount(3,703)
Total operating lease liabilities$28,650 
Weighted-Average Discount Rate and Remaining Lease Term for Operating Leases
The weighted-average discount rate and remaining lease term for operating leases at December 31, 2023 were as follows:
Weighted-average discount rate2.43 %
Weighted-average remaining lease term (years)9.3

The components of total lease costs for operating leases were as follows:
Three Months Ended December 31,
(Dollars in thousands)20232022
Lease expense$1,025 $1,014 
Short-term and variable lease cost(7)42 
Sublease income(370)(333)
Total lease cost for operating leases$648 $723 
v3.24.0.1
STOCK COMPENSATION (Tables)
 3 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Nonvested Share Activity
The following tables show the activity of share awards (including shares of restricted stock subject to vesting, fully-vested restricted stock, and PSUs) granted, exercised or forfeited under all of the Company's incentive plans during the three months ended December 31, 2023.
Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2023370,151 $35.87 
Granted(1)
— — 
Vested(176,700)36.44 
Forfeited or expired(1,863)39.23 
Nonvested shares outstanding, December 31, 2023191,588 $35.31 
Number of Units(2)
Weighted Average Fair Value at Grant
Performance share units outstanding, September 30, 2023155,804 $41.20 
Granted(1)
— — 
Vested(60,984)55.47 
Forfeited or expired— — 
Performance share units outstanding, December 31, 202394,820 $55.47 
(1) While no shares were granted during the first quarter of fiscal year 2024, 150,522 of nonvested shares and 44,800 of target performance share units were issued under awards contingent on the stockholder approval of the 2023 Omnibus Incentive Plan.
(2) The activity in this table includes 60,984 shares related to the fiscal year 2021 performance share units, which are included in this table under the assumption of a target performance achievement. The final performance was assessed after September 30, 2023, resulted in an achievement greater than target, and an additional 47,252 shares were allocated to the participants in the plan.
v3.24.0.1
INCOME TAXES (Tables)
 3 Months Ended
Dec. 31, 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.
Three Months Ended December 31,
(Dollars in thousands)20232022
Provision at statutory rate$7,009 $7,228 
Tax-exempt income(174)(203)
State income taxes1,228 1,510 
Interim period effective rate adjustment2,806 1,119 
Tax credit investments, net - federal(4,377)(3,062)
IRC 162(m) nondeductible compensation(280)136 
Other, net(493)(151)
Income tax expense$5,719 $6,577 
Effective tax rate17.00 %18.79 %
v3.24.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 3 Months Ended
Dec. 31, 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 13. Segment Reporting to the Condensed Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Three Months Ended December 31,20232022202320222023202220232022
Net interest income(1)
$59,356 $34,272 $45,881 $42,324 $4,799 $7,461 $110,036 $84,057 
Noninterest income:
Refund transfer product fees422 677 — — — — 422 677 
Refund advance fee income(1)
111 617 — — — — 111 617 
Card and deposit fees30,507 37,452 236 261 7 5 30,750 37,718 
Rental income(1)
— — 13,235 12,515 224 193 13,459 12,708 
Gain on sale of trademarks— — — — — 10,000 — 10,000 
Gain (loss) on sale of other(1)
(31)— 362 502 2,509 — 2,840 502 
Other income(1)
1,778 793 2,166 1,084 1,235 1,678 5,179 3,555 
Total noninterest income32,787 39,539 15,999 14,362 3,975 11,876 52,761 65,777 
Revenue$92,143 $73,811 $61,880 $56,686 $8,774 $19,337 $162,797 $149,834 
(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.
v3.24.0.1
SEGMENT REPORTING (Tables)
 3 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information of Entity
The following table presents segment data for the Company:
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Three Months Ended December 31,20232022202320222023202220232022
Net interest income$59,356 $34,272 $45,881 $42,324 $4,799 $7,461 $110,036 $84,057 
Provision for (reversal of) credit loss3,454 3,240 6,463 6,583 (27)(47)9,890 9,776 
Noninterest income32,787 39,539 15,999 14,362 3,975 11,876 52,761 65,777 
Noninterest expense50,013 34,494 34,856 32,749 34,405 37,816 119,274 105,059 
Income (loss) before income tax expense38,676 36,077 20,561 17,354 (25,604)(18,432)33,633 34,999 
Total assets563,706 393,898 4,206,522 3,476,942 3,157,209 2,788,385 7,927,437 6,659,225 
Total goodwill87,145 87,145 222,360 222,360 — — 309,505 309,505 
Total deposits6,587,052 5,624,919 3,669 6,628 345,334 157,585 6,936,055 5,789,132 
v3.24.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Dec. 31, 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 December 31, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,375 $18,375 
SBA securities87,732 — 87,732 — 
Obligations of states and political subdivisions2,304 — 2,304 — 
Non-bank qualified obligations of states and political subdivisions228,888 — 228,888 — 
Asset-backed securities237,704 — 237,704 — 
Mortgage-backed securities1,275,578 — 1,275,578 — 
Total debt securities AFS$1,850,581 $— $1,850,581 $— 
Common equities and mutual funds(1)
$4,207 $4,207 $— $— 
Non-marketable equity securities(2)
$9,700 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 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, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,250 $— $18,250 $— 
SBA securities85,242 — 85,242 — 
Obligations of states and political subdivisions2,289 — 2,289 — 
Non-bank qualified obligations of states and political subdivisions226,723 — 226,723 — 
Asset-backed securities246,199 — 246,199 — 
Mortgage-backed securities1,225,525 — 1,225,525 — 
Total debt securities AFS$1,804,228 $— $1,804,228 $— 
Common equities and mutual funds(1)
$3,378 $3,378 $— $— 
Non-marketable equity securities(2)
$8,389 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2023.
(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 tables summarize the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a nonrecurring basis:
 At December 31, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$6,441 $— $— $6,441 
    Total loans and leases, net individually evaluated for credit loss6,441 — — 6,441 
Total$6,441 $— $— $6,441 
 At September 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$21,829 $— $— $21,829 
    Total loans and leases, net individually evaluated for credit loss21,829 — — 21,829 
Total$21,829 $— $— $21,829 
Quantitative Information about Level 3 Fair Value Measurements
 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
December 31, 2023
Fair Value at
September 30, 2023
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$6,441 $21,829 Market approach
Appraised values(1)
3% - 44%
(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 44%.
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 December 31, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$671,630 $671,630 $671,630 $— $— 
Debt securities available for sale1,850,581 1,850,581 — 1,850,581 — 
Debt securities held to maturity35,440 32,180 — 32,180 — 
Common equities and mutual funds(1)
4,207 4,207 4,207 — — 
Non-marketable equity securities(1)(2)
20,195 20,195 — 10,495 — 
Loans held for sale69,518 69,518 — 69,518 — 
Loans and leases4,419,364 4,298,218 — — 4,298,218 
Federal Reserve Bank and Federal Home Loan Bank stocks23,694 23,694 — 23,694 — 
Accrued interest receivable27,080 27,080 27,080 — — 
Financial liabilities
Deposits6,936,055 6,937,613 6,795,322 142,292 — 
Other short- and long-term borrowings33,614 31,421 — 31,421 — 
Accrued interest payable1,941 1,941 1,941 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 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, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$375,580 $375,580 $375,580 $— $— 
Debt securities available for sale1,804,228 1,804,228 — 1,804,228 — 
Debt securities held to maturity36,591 31,425 — 31,425 — 
Common equities and mutual funds(1)
3,378 3,378 3,378 — — 
Non-marketable equity securities(1)(2)
20,453 20,453 — 12,064 — 
Loans held for sale77,779 77,779 — 77,779 — 
Loans and leases4,359,681 4,223,010 — — 4,223,010 
Federal Reserve Bank and Federal Home Loan Bank stocks28,210 28,210 — 28,210 — 
Accrued interest receivable23,282 23,282 23,282 — — 
Financial liabilities
Deposits6,589,182 6,589,065 6,583,648 5,417 — 
Other short- and long-term borrowings33,873 31,187 — 31,187 — 
Accrued interest payable247 247 247 — — 
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2023.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.24.0.1
SECURITIES - Available for Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Available-for-sale debt securities [Abstract]    
Amortized Cost $ 2,101,149 $ 2,143,333
Fair Value 1,850,581 1,804,228
Amortized Cost    
Due in one year or less 3,597 5,023
Due after one year through five years 11,172 11,175
Due after five years through ten years 79,137 79,139
Due after ten years 535,867 552,360
Total 629,773 647,697
Mortgage-backed securities 1,471,376 1,495,636
Fair Value    
Due in one year or less 3,579 4,971
Due after one year through five years 10,523 10,292
Due after five years through ten years 68,613 66,428
Due after ten years 492,288 497,012
Total 575,003 578,703
Mortgage-backed securities 1,275,578 1,225,525
Corporate securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 25,000 25,000
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (6,625) (6,750)
Fair Value 18,375 18,250
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 18,375 18,250
OVER 12 MONTHS, Gross Unrealized (Losses) (6,625) (6,750)
TOTAL, Fair Value 18,375 18,250
TOTAL, Gross Unrealized (Losses) (6,625) (6,750)
SBA securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 94,458 95,549
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (6,726) (10,307)
Fair Value 87,732 85,242
LESS THAN 12 MONTHS, Fair Value 23,502 22,327
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (742) (1,919)
OVER 12 MONTHS, Fair Value 64,229 62,915
OVER 12 MONTHS, Gross Unrealized (Losses) (5,984) (8,388)
TOTAL, Fair Value 87,731 85,242
TOTAL, Gross Unrealized (Losses) (6,726) (10,307)
Obligations of states and political subdivisions    
Available-for-sale debt securities [Abstract]    
Amortized Cost 2,351 2,368
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (47) (79)
Fair Value 2,304 2,289
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 2,304 2,289
OVER 12 MONTHS, Gross Unrealized (Losses) (47) (79)
TOTAL, Fair Value 2,304 2,289
TOTAL, Gross Unrealized (Losses) (47) (79)
Non-bank qualified obligations of states and political subdivisions    
Available-for-sale debt securities [Abstract]    
Amortized Cost 262,999 269,396
Gross Unrealized Gains 25 0
Gross Unrealized (Losses) (34,136) (42,673)
Fair Value 228,888 226,723
LESS THAN 12 MONTHS, Fair Value 1,616 5,010
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (18) (83)
OVER 12 MONTHS, Fair Value 225,198 221,714
OVER 12 MONTHS, Gross Unrealized (Losses) (34,118) (42,590)
TOTAL, Fair Value 226,814 226,723
TOTAL, Gross Unrealized (Losses) (34,136) (42,673)
Asset-backed securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 244,965 255,384
Gross Unrealized Gains 96 234
Gross Unrealized (Losses) (7,357) (9,419)
Fair Value 237,704 246,199
LESS THAN 12 MONTHS, Fair Value 86,695 46,528
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (257) (224)
OVER 12 MONTHS, Fair Value 112,043 115,608
OVER 12 MONTHS, Gross Unrealized (Losses) (7,100) (9,195)
TOTAL, Fair Value 198,738 162,136
TOTAL, Gross Unrealized (Losses) (7,357) (9,419)
Mortgage-backed securities    
Available-for-sale debt securities [Abstract]    
Amortized Cost 1,471,376 1,495,636
Gross Unrealized Gains 27 0
Gross Unrealized (Losses) (195,825) (270,111)
Fair Value 1,275,578 1,225,525
LESS THAN 12 MONTHS, Fair Value 17,688 18,311
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (245) (944)
OVER 12 MONTHS, Fair Value 1,256,811 1,207,214
OVER 12 MONTHS, Gross Unrealized (Losses) (195,580) (269,167)
TOTAL, Fair Value 1,274,499 1,225,525
TOTAL, Gross Unrealized (Losses) (195,825) (270,111)
Total debt securities AFS    
Available-for-sale debt securities [Abstract]    
Amortized Cost 2,101,149 2,143,333
Gross Unrealized Gains 148 234
Gross Unrealized (Losses) (250,716) (339,339)
Fair Value 1,850,581 1,804,228
LESS THAN 12 MONTHS, Fair Value 129,501 92,176
LESS THAN 12 MONTHS, Gross Unrealized (Losses) (1,262) (3,170)
OVER 12 MONTHS, Fair Value 1,678,960 1,627,990
OVER 12 MONTHS, Gross Unrealized (Losses) (249,454) (336,169)
TOTAL, Fair Value 1,808,461 1,720,165
TOTAL, Gross Unrealized (Losses) $ (250,716) $ (339,339)
v3.24.0.1
SECURITIES - Held to Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost $ 35,440 $ 36,591
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (3,260) (5,166)
Fair Value 32,180 31,425
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 32,180 31,425
OVER 12 MONTHS, Gross Unrealized (Losses) (3,260) (5,166)
TOTAL, Fair Value 32,180 31,425
TOTAL, Gross Unrealized (Losses) (3,260) (5,166)
Amortized Cost    
Due after ten years 33,337 34,415
Total 33,337 34,415
Mortgage-backed securities 2,103 2,176
Fair Value    
Due after ten years 30,287 29,571
Total 30,287 29,571
Mortgage-backed securities 1,893 1,854
Non-bank qualified obligations of states and political subdivisions    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 33,337 34,415
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (3,050) (4,844)
Fair Value 30,287 29,571
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 30,287 29,571
OVER 12 MONTHS, Gross Unrealized (Losses) (3,050) (4,844)
TOTAL, Fair Value 30,287 29,571
TOTAL, Gross Unrealized (Losses) (3,050) (4,844)
Mortgage-backed securities    
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]    
Amortized Cost 2,103 2,176
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (210) (322)
Fair Value 1,893 1,854
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Gross Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 1,893 1,854
OVER 12 MONTHS, Gross Unrealized (Losses) (210) (322)
TOTAL, Fair Value 1,893 1,854
TOTAL, Gross Unrealized (Losses) $ (210) $ (322)
v3.24.0.1
SECURITIES - Narrative (Details)
 3 Months Ended
Dec. 31, 2023
USD ($)
security
Dec. 31, 2022
USD ($)
Sep. 30, 2023
USD ($)
Debt Securities, Available-for-sale [Line Items]      
AFS number of securities in an unrealized loss position (in securities) | security 199    
Federal reserve bank stock $ 19,700,000   $ 19,700,000
Federal home loan bank stock 4,000,000   8,500,000
Impairment recognized 0 $ 0  
Marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 4,200,000   3,400,000
Unrealized losses on equity securities 100,000 0  
Non-marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 9,700,000   8,400,000
Unrealized losses on equity securities 300,000    
Unrealized gains on equity securities 2,500,000 $ 100,000  
Equity securities without readily determinable fair value, amount $ 14,900,000   $ 16,200,000
Number of equity securities sold | security 1    
v3.24.0.1
LOANS AND LEASES, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases $ 4,419,364 $ 4,359,681    
Net deferred loan origination costs 6,917 6,435    
Total gross loans and leases 4,426,281 4,366,116    
Allowance for credit losses (53,785) (49,705)    
Total loans and leases, net 4,372,496 4,316,411    
National Lending | Term lending        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 1,452,274 1,308,133    
Allowance for credit losses (27,013) (25,686) $ (26,752) $ (24,621)
National Lending | Asset-based lending        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 379,681 382,371    
Allowance for credit losses (1,370) (2,738) (3,903) (1,050)
National Lending | Factoring        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 335,953 358,344    
Allowance for credit losses (7,433) (6,566) (5,674) (6,556)
National Lending | Lease financing        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 188,889 183,392    
Allowance for credit losses (4,008) (3,302) (5,238) (5,902)
National Lending | Insurance premium finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 671,035 800,077    
Allowance for credit losses (2,123) (2,637) (1,261) (1,450)
National Lending | SBA/USDA        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 546,048 524,750    
Allowance for credit losses (3,289) (2,962) (2,632) (3,263)
National Lending | Other commercial finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 160,628 166,091    
Allowance for credit losses (3,312) (3,089) (3,356) (1,310)
National Lending | Commercial finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 3,734,508 3,723,158    
Allowance for credit losses (48,548) (46,980) (48,816) (44,152)
National Lending | Consumer finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 301,510 254,416    
Allowance for credit losses (4,380) (2,346) (2,887) (1,463)
National Lending | Tax services        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 33,435 5,192    
Allowance for credit losses (507) (2) (609) (5)
National Lending | Warehouse finance        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total loans and leases 349,911 376,915    
Allowance for credit losses $ (350) $ (377) $ (280) $ (327)
v3.24.0.1
LOANS AND LEASES, NET - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originated loans held for sale $ 631,905 $ 398,798  
Proceeds from sale of loans held-for-sale 626,300 402,900  
Gain on sale of loans and leases   100  
Loans and leases 4,426,281   $ 4,366,116
Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 3,245,362   3,222,502
Pass | Asset Pledged as Collateral      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 114,300   117,000
Consumer finance portfolio segment      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 301,500   254,400
Tax services loans      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 33,400   $ 5,200
National Lending | Commercial Finance and Consumer Finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originated loans held for sale $ 631,900 $ 398,800  
v3.24.0.1
LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans Purchased, Loans held for investment $ 89,390 $ 67,649
Loans Sold, Loans held for sale 626,336 402,870
Loans Sold, Total sales 626,336 402,870
National Lending | Warehouse finance    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans Purchased, Loans held for investment 89,390 67,649
National Lending | Commercial finance    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans Sold, Loans held for sale 3,872 855
National Lending | Consumer finance    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans Sold, Loans held for sale $ 622,464 $ 402,015
v3.24.0.1
LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Net Investment in Lease [Abstract]      
Minimum lease payments receivable $ 197,829   $ 191,807
Unguaranteed residual assets 14,388   12,709
Unamortized initial direct costs 114   141
Unearned income (23,181)   (21,124)
Total net investment in direct financing and sales-type leases 189,150   $ 183,533
Interest income - loans and leases      
Interest income on net investments in direct financing and sales-type leases 3,108 $ 3,143  
Lease income from operating lease payments 13,255 12,554  
Other 724 702  
Total leasing and equipment finance noninterest income 13,979 13,256  
Total lease income 17,087 $ 16,399  
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]      
Remaining in 2024 60,302    
2025 54,431    
2026 33,348    
2027 20,287    
2028 15,912    
Thereafter 13,549    
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 197,829    
Third-party residual value guarantees 0    
Total carrying amount of direct financing and sales-type leases $ 197,829    
v3.24.0.1
LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Allowance for Credit Losses [Roll Forward]    
Beginning Balance $ 49,705  
Provision (Reversal) 9,890 $ 9,776
Ending Balance 53,785  
Total Committed Loans    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 49,705 45,947
Provision (Reversal) 9,566 9,863
Charge-offs (6,870) (4,439)
Recoveries 1,384 1,221
Ending Balance 53,785 52,592
Unfunded commitments    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 272 366
Provision (Reversal) 324 (87)
Charge-offs 0 0
Recoveries 0 0
Ending Balance 596 279
Total Loans    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 49,977 46,313
Provision (Reversal) 9,890 9,776
Charge-offs (6,870) (4,439)
Recoveries 1,384 1,221
Ending Balance 54,381 52,871
National Lending | Term lending    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 25,686 24,621
Provision (Reversal) 5,822 3,671
Charge-offs (5,121) (1,817)
Recoveries 626 277
Ending Balance 27,013 26,752
National Lending | Asset-based lending    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 2,738 1,050
Provision (Reversal) (1,510) 2,853
Charge-offs 0 0
Recoveries 142 0
Ending Balance 1,370 3,903
National Lending | Factoring    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 6,566 6,556
Provision (Reversal) 751 (764)
Charge-offs (23) (121)
Recoveries 139 3
Ending Balance 7,433 5,674
National Lending | Lease financing    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 3,302 5,902
Provision (Reversal) 766 (438)
Charge-offs (153) (406)
Recoveries 93 180
Ending Balance 4,008 5,238
National Lending | Insurance premium finance    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 2,637 1,450
Provision (Reversal) (239) (47)
Charge-offs (365) (185)
Recoveries 90 43
Ending Balance 2,123 1,261
National Lending | SBA/USDA    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 2,962 3,263
Provision (Reversal) 327 (651)
Charge-offs 0 0
Recoveries 0 20
Ending Balance 3,289 2,632
National Lending | Other commercial finance    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 3,089 1,310
Provision (Reversal) 223 2,046
Charge-offs 0 0
Recoveries 0 0
Ending Balance 3,312 3,356
National Lending | Commercial finance    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 46,980 44,152
Provision (Reversal) 6,140 6,670
Charge-offs (5,662) (2,529)
Recoveries 1,090 523
Ending Balance 48,548 48,816
National Lending | Consumer finance    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 2,346 1,463
Provision (Reversal) 2,097 1,603
Charge-offs (63) (179)
Recoveries 0 0
Ending Balance 4,380 2,887
National Lending | Tax services    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 2 5
Provision (Reversal) 1,356 1,637
Charge-offs (1,145) (1,731)
Recoveries 294 698
Ending Balance 507 609
National Lending | Warehouse finance    
Allowance for Credit Losses [Roll Forward]    
Beginning Balance 377 327
Provision (Reversal) (27) (47)
Charge-offs 0 0
Recoveries 0 0
Ending Balance $ 350 $ 280
v3.24.0.1
LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2022
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance $ 18,637   $ 25,255
Average recorded investment 31,421 $ 18,819  
National Lending | Term lending      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 4,160   3,516
Average recorded investment 17,419 8,796  
National Lending | Asset-based lending      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 7,731   19,226
Average recorded investment 9,711 4,272  
National Lending | Factoring      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 3,562   1,133
Average recorded investment 1,180 708  
National Lending | Lease financing      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 593   630
Average recorded investment 1,623 3,623  
National Lending | SBA/USDA      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 2,591   750
Average recorded investment 1,488 1,420  
National Lending | Commercial finance      
Financing Receivable, Impaired [Line Items]      
Impaired loans, unpaid balance 18,637   $ 25,255
Average recorded investment $ 31,421 $ 18,819  
v3.24.0.1
LOANS AND LEASES, NET - Credit Quality Indicator (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Financing Receivable, Credit Quality Indicator [Line Items]      
Total gross loans and leases $ 4,426,281   $ 4,366,116
Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 526,272   1,554,843
2023 1,147,551   333,793
2022 318,934   173,825
2021 181,490   138,032
2020 118,745   37,324
Prior 161,495   175,272
Revolving Loans and Leases 790,875   809,413
Total gross loans and leases 3,245,362   3,222,502
Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 62,784   105,884
2023 87,941   110,339
2022 101,275   71,265
2021 34,505   16,775
2020 17,738   6,419
Prior 7,360   3,354
Revolving Loans and Leases 223,454   245,076
Total gross loans and leases 535,057   559,112
Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 922   26,789
2023 24,980   13,868
2022 13,232   21,840
2021 27,652   1,138
2020 932   3,127
Prior 548   75
Revolving Loans and Leases 27,906   35,274
Total gross loans and leases 96,172   102,111
Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 9,393   38,423
2023 34,863   35,260
2022 32,174   49,237
2021 44,921   33,691
2020 31,871   15,443
Prior 21,150   8,773
Revolving Loans and Leases 23,310   27,366
Total gross loans and leases 197,682   208,193
Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 715   380
2023 1,528   2,807
2022 4,308   1,762
2021 1,040   1,182
2020 879   165
Prior 1,676   1,358
Revolving Loans and Leases 0   501
Total gross loans and leases 10,146   8,155
Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 600,086   1,726,319
2023 1,296,863   496,067
2022 469,923   317,929
2021 289,608   190,818
2020 170,165   62,478
Prior 192,229   188,832
Revolving Loans and Leases 1,065,545   1,117,630
Total gross loans and leases 4,084,419   4,100,073
National Lending | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024, Writeoffs 0    
2023, Writeoffs 320    
2022, Writeoffs 2,731    
2021, Writeoffs 1,715    
2020, Writeoffs 685    
Prior, Writeoffs 188    
Revolving Loans and Leases, Writeoffs 23    
Total, Writeoffs 5,662    
National Lending | Term lending      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 5,121 $ 1,817  
National Lending | Term lending | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 234,250   539,448
2023 496,789   149,190
2022 138,710   99,677
2021 110,564   73,132
2020 59,710   14,368
Prior 55,391   85,812
Revolving Loans and Leases 0   0
Total gross loans and leases 1,095,414   961,627
National Lending | Term lending | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 61,518   53,481
2023 32,021   51,036
2022 43,154   58,041
2021 23,282   12,230
2020 13,908   4,483
Prior 2,416   727
Revolving Loans and Leases 0   0
Total gross loans and leases 176,299   179,998
National Lending | Term lending | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 922   26,539
2023 24,558   13,853
2022 13,232   20,463
2021 26,952   723
2020 572   2,932
Prior 283   75
Revolving Loans and Leases 0   0
Total gross loans and leases 66,519   64,585
National Lending | Term lending | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 9,393   20,437
2023 25,451   30,451
2022 27,768   14,729
2021 13,345   24,613
2020 23,610   3,872
Prior 4,953   764
Revolving Loans and Leases 0   0
Total gross loans and leases 104,520   94,866
National Lending | Term lending | Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 715   200
2023 1,202   2,655
2022 4,300   1,691
2021 976   1,121
2020 879   165
Prior 1,450   1,225
Revolving Loans and Leases 0   0
Total gross loans and leases 9,522   7,057
National Lending | Term lending | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 306,798   640,105
2023 580,021   247,185
2022 227,164   194,601
2021 175,119   111,819
2020 98,679   25,820
Prior 64,493   88,603
Revolving Loans and Leases 0   0
Total gross loans and leases 1,452,274   1,308,133
2024, Writeoffs 0    
2023, Writeoffs 118    
2022, Writeoffs 2,524    
2021, Writeoffs 1,673    
2020, Writeoffs 618    
Prior, Writeoffs 188    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 5,121    
National Lending | Asset-based lending      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 0 0  
National Lending | Asset-based lending | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 187,835   161,744
Total gross loans and leases 187,835   161,744
National Lending | Asset-based lending | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 159,962   174,243
Total gross loans and leases 159,962   174,243
National Lending | Asset-based lending | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 22,378   26,382
Total gross loans and leases 22,378   26,382
National Lending | Asset-based lending | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 9,506   19,501
Total gross loans and leases 9,506   19,501
National Lending | Asset-based lending | Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024     0
2023     0
2022     0
2021     0
2020     0
Prior     0
Revolving Loans and Leases     501
Total gross loans and leases     501
National Lending | Asset-based lending | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 379,681   382,371
Total gross loans and leases 379,681   382,371
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 0    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 0    
National Lending | Factoring      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 23 121  
National Lending | Factoring | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 253,129   270,754
Total gross loans and leases 253,129   270,754
National Lending | Factoring | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 63,492   70,833
Total gross loans and leases 63,492   70,833
National Lending | Factoring | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 5,528   8,892
Total gross loans and leases 5,528   8,892
National Lending | Factoring | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 13,804   7,865
Total gross loans and leases 13,804   7,865
National Lending | Factoring | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 335,953   358,344
Total gross loans and leases 335,953   358,344
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 0    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 23    
Total, Writeoffs 23    
National Lending | Lease financing      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 153 406  
National Lending | Lease financing | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 26,190   57,123
2023 62,933   15,941
2022 13,847   15,167
2021 13,464   27,489
2020 22,422   4,036
Prior 2,564   1,281
Revolving Loans and Leases 0   0
Total gross loans and leases 141,420   121,037
National Lending | Lease financing | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 1,266   793
2023 458   10,436
2022 9,747   12,566
2021 10,573   4,494
2020 3,769   1,579
Prior 1,635   55
Revolving Loans and Leases 0   0
Total gross loans and leases 27,448   29,923
National Lending | Lease financing | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 2   0
2022 0   847
2021 175   415
2020 360   195
Prior 265   0
Revolving Loans and Leases 0   0
Total gross loans and leases 802   1,457
National Lending | Lease financing | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   14,890
2023 6,126   1,983
2022 2,005   7,082
2021 5,642   3,660
2020 2,884   3,062
Prior 2,272   33
Revolving Loans and Leases 0   0
Total gross loans and leases 18,929   30,710
National Lending | Lease financing | Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   71
2021 64   61
2020 0   0
Prior 226   133
Revolving Loans and Leases 0   0
Total gross loans and leases 290   265
National Lending | Lease financing | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 27,456   72,806
2023 69,519   28,360
2022 25,599   35,733
2021 29,918   36,119
2020 29,435   8,872
Prior 6,962   1,502
Revolving Loans and Leases 0   0
Total gross loans and leases 188,889   183,392
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 44    
2021, Writeoffs 42    
2020, Writeoffs 67    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 153    
National Lending | Insurance premium finance      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 365 185  
National Lending | Insurance premium finance | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 238,408   797,267
2023 430,949   1,210
2022 352   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 669,709   798,477
National Lending | Insurance premium finance | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   858
2023 251   34
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 251   892
National Lending | Insurance premium finance | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   250
2023 420   15
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 420   265
National Lending | Insurance premium finance | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   91
2023 317   20
2022 4   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 321   111
National Lending | Insurance premium finance | Doubtful      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   180
2023 326   152
2022 8   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 334   332
National Lending | Insurance premium finance | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 238,408   798,646
2023 432,263   1,431
2022 364   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 671,035   800,077
2024, Writeoffs 0    
2023, Writeoffs 202    
2022, Writeoffs 163    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 365    
National Lending | SBA/USDA      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 0 0  
National Lending | SBA/USDA | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 27,424   158,675
2023 154,580   148,525
2022 147,067   26,244
2021 24,847   36,274
2020 35,508   8,798
Prior 26,629   18,252
Revolving Loans and Leases 0   0
Total gross loans and leases 416,055   396,768
National Lending | SBA/USDA | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   49,010
2023 53,475   48,833
2022 48,374   658
2021 650   51
2020 61   357
Prior 3,309   2,572
Revolving Loans and Leases 0   0
Total gross loans and leases 105,869   101,481
National Lending | SBA/USDA | Special mention      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   530
2021 525   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 525   530
National Lending | SBA/USDA | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   252
2023 252   2,356
2022 2,339   1,718
2021 1,706   5,418
2020 5,377   8,509
Prior 13,925   7,718
Revolving Loans and Leases 0   0
Total gross loans and leases 23,599   25,971
National Lending | SBA/USDA | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 27,424   207,937
2023 208,307   199,714
2022 197,780   29,150
2021 27,728   41,743
2020 40,946   17,664
Prior 43,863   28,542
Revolving Loans and Leases 0   0
Total gross loans and leases 546,048   524,750
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 0    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 0    
National Lending | Other commercial finance      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 0 0  
National Lending | Other commercial finance | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   2,330
2023 2,300   18,927
2022 18,958   32,737
2021 32,615   1,137
2020 1,105   10,122
Prior 76,911   69,927
Revolving Loans and Leases 0   0
Total gross loans and leases 131,889   135,180
National Lending | Other commercial finance | Watch      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   1,742
2023 1,736   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 0   0
Total gross loans and leases 1,736   1,742
National Lending | Other commercial finance | Substandard      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   2,753
2023 2,717   450
2022 58   25,708
2021 24,228   0
2020 0   0
Prior 0   258
Revolving Loans and Leases 0   0
Total gross loans and leases 27,003   29,169
National Lending | Other commercial finance | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   6,825
2023 6,753   19,377
2022 19,016   58,445
2021 56,843   1,137
2020 1,105   10,122
Prior 76,911   70,185
Revolving Loans and Leases 0   0
Total gross loans and leases 160,628   166,091
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 0    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs 0    
National Lending | Warehouse finance      
Financing Receivable, Credit Quality Indicator [Line Items]      
Total, Writeoffs 0 $ 0  
National Lending | Warehouse finance | Pass      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 349,911   376,915
Total gross loans and leases 349,911   376,915
National Lending | Warehouse finance | Total      
Financing Receivable, Credit Quality Indicator [Line Items]      
2024 0   0
2023 0   0
2022 0   0
2021 0   0
2020 0   0
Prior 0   0
Revolving Loans and Leases 349,911   376,915
Total gross loans and leases 349,911   $ 376,915
2024, Writeoffs 0    
2023, Writeoffs 0    
2022, Writeoffs 0    
2021, Writeoffs 0    
2020, Writeoffs 0    
Prior, Writeoffs 0    
Revolving Loans and Leases, Writeoffs 0    
Total, Writeoffs $ 0    
v3.24.0.1
LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 4,426,281 $ 4,366,116
Accruing and Nonaccruing Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,488,882 4,437,460
Accruing and Nonaccruing Loans and Leases | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,419,364 4,359,681
Accruing and Nonaccruing Loans and Leases | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 69,518 77,779
Accruing and Nonaccruing Loans and Leases | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,452,274 1,308,133
Accruing and Nonaccruing Loans and Leases | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 379,681 382,371
Accruing and Nonaccruing Loans and Leases | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 335,953 358,344
Accruing and Nonaccruing Loans and Leases | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 188,889 183,392
Accruing and Nonaccruing Loans and Leases | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 671,035 800,077
Accruing and Nonaccruing Loans and Leases | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 546,048 524,750
Accruing and Nonaccruing Loans and Leases | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 160,628 166,091
Accruing and Nonaccruing Loans and Leases | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,734,508 3,723,158
Accruing and Nonaccruing Loans and Leases | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 301,510 254,416
Accruing and Nonaccruing Loans and Leases | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 33,435 5,192
Accruing and Nonaccruing Loans and Leases | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 349,911 376,915
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 38,837 27,052
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 37,664 26,426
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 1,173 626
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 28,694 13,898
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 1,944 6,865
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 2,666 2,159
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 102 512
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 33,406 23,434
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,258 2,992
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 12,472 12,117
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 11,686 11,568
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 786 549
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 6,156 7,723
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 1,107 158
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 999 1,262
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 79 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 8,341 9,143
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,345 2,425
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 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 24,259 27,950
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 23,598 27,644
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 661 306
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 14,385 11,136
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 123 123
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 2,161 4,828
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,924 2,339
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,146 1,835
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 91
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 20,739 20,352
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,859 2,210
Accruing and Nonaccruing Loans and Leases | > 89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 5,082
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 75,568 67,119
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 72,948 65,638
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,620 1,481
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 49,235 32,757
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 123 123
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 5,212 11,851
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 5,589 5,760
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,327 2,347
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 91
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 62,486 52,929
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 10,462 7,627
Accruing and Nonaccruing Loans and Leases | Total Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 5,082
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 4,413,314 4,370,341
Accruing and Nonaccruing Loans and Leases | Current | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,346,416 4,294,043
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 66,898 76,298
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,403,039 1,275,376
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 379,558 382,248
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 335,953 358,344
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 183,677 171,541
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 665,446 794,317
Accruing and Nonaccruing Loans and Leases | Current | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 543,721 522,403
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 160,628 166,000
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,672,022 3,670,229
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 291,048 246,789
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 33,435 110
Accruing and Nonaccruing Loans and Leases | Current | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 349,911 376,915
Nonperforming Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 39,481 56,212
Nonaccrual Balance 28,099 37,372
Nonperforming Loans and Leases | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 38,820 55,906
Nonaccrual Balance 28,099 37,372
Nonperforming Loans and Leases | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 661 306
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 21,984 19,061
Nonaccrual Balance 17,978 15,324
Nonperforming Loans and Leases | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,593 18,082
Nonaccrual Balance 4,593 18,082
Nonperforming Loans and Leases | National Lending | Factoring    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,173 1,298
Nonaccrual Balance 1,173 1,298
Nonperforming Loans and Leases | National Lending | Lease financing    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,133 5,908
Nonaccrual Balance 1,645 1,666
Nonperforming Loans and Leases | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,924 2,339
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,154 1,835
Nonaccrual Balance 2,710 1,002
Nonperforming Loans and Leases | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 91
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 35,961 48,614
Nonaccrual Balance 28,099 37,372
Nonperforming Loans and Leases | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,859 2,210
Nonaccrual Balance 0 0
Nonperforming Loans and Leases | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 5,082
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 11,382 18,840
Nonperforming Loans and Leases | > 89 Days Past Due | Total loans and leases held for investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 10,721 18,534
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Loans and leases 661 306
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Term lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,006 3,737
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Asset-based lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
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 1,488 4,242
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Insurance premium finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,924 2,339
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | SBA/USDA    
Financing Receivable, Past Due [Line Items]    
Loans and leases 444 833
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Other commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 91
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Commercial finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 7,862 11,242
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,859 2,210
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 5,082
Nonperforming Loans and Leases | > 89 Days Past Due | National Lending | Warehouse finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 0 $ 0
v3.24.0.1
LOANS AND LEASES, NET - Nonaccrual (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Financing Receivable, Nonaccrual [Line Items]    
Loans and leases $ 4,426,281 $ 4,366,116
Nonaccrual Loans    
Financing Receivable, Nonaccrual [Line Items]    
2024 1,264 865
2023 3,010 5,692
2022 7,666 3,379
2021 2,521 2,825
2020 4,007 3,134
Prior 3,865 2,097
Revolving Loans and Leases 5,766 19,380
Loans and leases 28,099 37,372
Nonaccrual with No ACL 5,812 1
Nonaccrual Loans | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2024 1,264 865
2023 2,002 4,942
2022 7,666 2,933
2021 2,082 2,165
2020 1,925 3,134
Prior 3,039 1,285
Revolving Loans and Leases 0 0
Loans and leases 17,978 15,324
Nonaccrual with No ACL 0 0
Nonaccrual Loans | National Lending | Asset-based lending    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 0 0
2022 0 0
2021 0 0
2020 0 0
Prior 0 0
Revolving Loans and Leases 4,593 18,082
Loans and leases 4,593 18,082
Nonaccrual with No ACL 4,469 0
Nonaccrual Loans | National Lending | Factoring    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 0 0
2022 0 0
2021 0 0
2020 0 0
Prior 0 0
Revolving Loans and Leases 1,173 1,298
Loans and leases 1,173 1,298
Nonaccrual with No ACL 0 0
Nonaccrual Loans | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 0 0
2022 0 446
2021 439 660
2020 781 0
Prior 425 560
Revolving Loans and Leases 0 0
Loans and leases 1,645 1,666
Nonaccrual with No ACL 593 1
Nonaccrual Loans | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 1,008 750
2022 0 0
2021 0 0
2020 1,301 0
Prior 401 252
Revolving Loans and Leases 0 0
Loans and leases 2,710 1,002
Nonaccrual with No ACL 750 0
Nonaccrual Loans | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2024 1,264 865
2023 3,010 5,692
2022 7,666 3,379
2021 2,521 2,825
2020 4,007 3,134
Prior 3,865 2,097
Revolving Loans and Leases 5,766 19,380
Loans and leases 28,099 37,372
Nonaccrual with No ACL 5,812 1
90 or More Days Delinquent and Accruing    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 8,034
2023 3,698 3,320
2022 4,404 1,839
2021 1,321 1,850
2020 669 2,157
Prior 1,270 1,612
Revolving Loans and Leases 20 28
Loans and leases 11,382 18,840
90 or More Days Delinquent and Accruing | Total loans and leases held for investment    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 7,728
2023 3,037 3,320
2022 4,404 1,839
2021 1,321 1,850
2020 669 2,157
Prior 1,270 1,612
Revolving Loans and Leases 20 28
Loans and leases 10,721 18,534
90 or More Days Delinquent and Accruing | National Lending | Loans held for sale    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 306
2023 661 0
2022 0 0
2021 0 0
2020 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 661 306
90 or More Days Delinquent and Accruing | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 1,604
2023 1,139 1,371
2022 2,290 500
2021 186 233
2020 383 29
Prior 8 0
Revolving Loans and Leases 0 0
Loans and leases 4,006 3,737
90 or More Days Delinquent and Accruing | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 151
2023 0 490
2022 498 979
2021 895 784
2020 95 1,794
Prior 0 44
Revolving Loans and Leases 0 0
Loans and leases 1,488 4,242
90 or More Days Delinquent and Accruing | National Lending | Insurance premium finance    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 0 414
2022 910 114
2021 5 0
2020 0 334
Prior 1,009 1,477
Revolving Loans and Leases 0 0
Loans and leases 1,924 2,339
90 or More Days Delinquent and Accruing | National Lending | Other commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2024   0
2023   0
2022   0
2021   0
2020   0
Prior   91
Revolving Loans and Leases   0
Loans and leases   91
90 or More Days Delinquent and Accruing | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 0
2023 0 0
2022 0 0
2021 0 833
2020 191 0
Prior 253 0
Revolving Loans and Leases 0 0
Loans and leases 444 833
90 or More Days Delinquent and Accruing | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 1,755
2023 1,139 2,275
2022 3,698 1,593
2021 1,086 1,850
2020 669 2,157
Prior 1,270 1,612
Revolving Loans and Leases 0 0
Loans and leases 7,862 11,242
90 or More Days Delinquent and Accruing | National Lending | Consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
2024 0 891
2023 1,898 1,045
2022 706 246
2021 235 0
2020 0 0
Prior 0 0
Revolving Loans and Leases 20 28
Loans and leases $ 2,859 2,210
90 or More Days Delinquent and Accruing | National Lending | Tax services    
Financing Receivable, Nonaccrual [Line Items]    
2024   5,082
2023   0
2022   0
2021   0
2020   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   $ 5,082
v3.24.0.1
LOANS AND LEASES, NET - Troubled Debt Restructured Loans (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
National Lending | Commercial finance  
Financing Receivable, Troubled Debt Restructuring [Line Items]  
TDRs subsequent default, recorded investment $ 0.1
v3.24.0.1
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Basic income per common share:    
Net income attributable to Pathward Financial, Inc. $ 27,657 $ 27,842
Dividends and undistributed earnings allocated to participating securities (220) (403)
Basic net earnings available to common stockholders 27,437 27,439
Undistributed earnings allocated to nonvested restricted stockholders 210 383
Reallocation of undistributed earnings to nonvested restricted stockholders (210) (382)
Diluted net earnings available to common stockholders $ 27,437 $ 27,440
Total weighted average common shares outstanding (in shares) 25,776,845 28,024,541
Effect of dilutive securities    
Total effect of dilutive securities (in shares) 24,693 62,282
Weighted average dilutive common shares outstanding (in shares) 25,801,538 28,086,823
Net earnings per common share:    
Basic income per common share (in dollars per share) $ 1.06 $ 0.98
Diluted income per common share (in dollars per share) $ 1.06 $ 0.98
Weighted average shares of nonvested restricted stock, antidilutive (in shares) 207,074 411,794
Performance share units    
Effect of dilutive securities    
Outstanding options - based upon the two-class method (in shares) 24,693 62,282
v3.24.0.1
RENTAL EQUIPMENT, NET - Schedule of Rental Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Property, Plant and Equipment [Line Items]    
Total $ 345,850 $ 327,931
Accumulated depreciation (118,120) (117,418)
Unamortized initial direct costs 1,186 1,237
Net book value 228,916 211,750
Computers and IT networking equipment    
Property, Plant and Equipment [Line Items]    
Total 23,958 25,094
Motor vehicles and other    
Property, Plant and Equipment [Line Items]    
Total 125,801 122,845
Other furniture and equipment    
Property, Plant and Equipment [Line Items]    
Total 46,934 37,637
Solar panels and equipment    
Property, Plant and Equipment [Line Items]    
Total $ 149,157 $ 142,355
v3.24.0.1
RENTAL EQUIPMENT, NET - Schedule of Operating Leases, Future Minimum Payments (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Property, Plant and Equipment [Abstract]  
Remaining in 2024 $ 32,519
2025 36,915
2026 27,052
2027 19,132
2028 10,461
Thereafter 10,805
Total $ 136,884
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Total goodwill $ 309,505,000 $ 309,505,000
Goodwill, accumulated impairment 0  
Impairment expense $ 0 $ 0
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Asses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance $ 20,720 $ 25,691
Amortization during the period (984) (1,258)
Ending Balance 19,736 24,433
Gross carrying amount 99,451 109,133
Accumulated amortization (68,578) (73,564)
Accumulated impairment (11,137) (11,136)
Total anticipated intangible amortization 19,736 24,433
Trademarks    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance 7,477 8,605
Amortization during the period (264) (351)
Ending Balance 7,213 8,254
Gross carrying amount 13,774 14,624
Accumulated amortization (6,561) (6,370)
Accumulated impairment 0 0
Total anticipated intangible amortization $ 7,213 8,254
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 0
Amortization during the period 0 0
Ending Balance 0 0
Gross carrying amount 301 2,481
Accumulated amortization (301) (2,481)
Accumulated impairment 0 0
Total anticipated intangible amortization 0 0
Customer Relationships    
Finite-lived Intangible Assets [Roll Forward]    
Beginning Balance 9,110 12,395
Amortization during the period (587) (776)
Ending Balance 8,523 11,619
Gross carrying amount 77,578 82,088
Accumulated amortization (58,137) (59,551)
Accumulated impairment (10,918) (10,918)
Total anticipated intangible amortization $ 8,523 11,619
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 $ 4,133 4,691
Amortization during the period (133) (131)
Ending Balance 4,000 4,560
Gross carrying amount 7,798 9,940
Accumulated amortization (3,579) (5,162)
Accumulated impairment (219) (218)
Total anticipated intangible amortization $ 4,000 $ 4,560
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  
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]        
Remaining in 2024 $ 3,148      
2025 3,569      
2026 3,223      
2027 2,577      
2028 2,267      
Thereafter 4,952      
Total anticipated intangible amortization $ 19,736 $ 20,720 $ 24,433 $ 25,691
v3.24.0.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 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 $ 26,800 $ 26,900
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other liabilities Accrued expenses and other liabilities
Operating lease, liability $ 28,650 $ 28,800
v3.24.0.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Remaining in 2024 $ 3,141  
2025 3,985  
2026 3,435  
2027 3,152  
2028 3,095  
Thereafter 15,545  
Total undiscounted future minimum lease payments 32,353  
Discount (3,703)  
Total operating lease liabilities $ 28,650 $ 28,800
v3.24.0.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Weighted-average discount rate 2.43%  
Weighted-average remaining lease term (years) 9 years 3 months 18 days  
Lease expense $ 1,025 $ 1,014
Short-term and variable lease cost (7) 42
Sublease income (370) (333)
Total lease cost for operating leases $ 648 $ 723
v3.24.0.1
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Aug. 25, 2023
Sep. 03, 2021
Equity, Class of Treasury Stock [Line Items]        
Stock repurchased during the period (in shares) 103,641 57,291    
Stock repurchased during the period, value $ 4.9 $ 2.0    
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
Additional shares authorized to be repurchased (in shares)     7,000,000  
Stock repurchased under repurchase program (in shares) 232,588 653,994    
Remaining number of shares authorized to be repurchased (in shares) 8,433,848      
v3.24.0.1
STOCK COMPENSATION - Narrative (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2023
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period eight years
Stock based compensation expense not yet recognized in income | $ $ 4.1
Weighted average remaining period for unrecognized stock based compensation (in years) 1 year 3 months 7 days
Restricted Shares  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Period that options vest 3 years
Restricted Shares | Director  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Period that options vest 1 year
Performance Share Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Period that options vest 3 years
Shares issuable upon vesting (in shares) | shares 1
Performance Share Units | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Payout levels percentage 50.00%
Performance Share Units | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Payout levels percentage 200.00%
v3.24.0.1
STOCK COMPENSATION - Share Activity (Details) - $ / shares
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2021
Number of Shares    
Granted (in shares)   60,984,000
Restricted Shares    
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 370,151  
Granted (in shares) 0  
Vested (in shares) (176,700)  
Forfeited or expired (in shares) (1,863)  
Nonvested shares outstanding, end of period (in shares) 191,588  
Weighted Average Fair Value at Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 35.87  
Granted (in dollars per share) 0  
Vested (in dollars per share) 36.44  
Forfeited or expired (in dollars per share) 39.23  
Nonvested shares outstanding, end of period (in dollars per share) $ 35.31  
Restricted Shares | Omnibus Incentive Plan    
Number of Shares    
Granted (in shares) 150,522,000  
Performance share units    
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 155,804  
Granted (in shares) 0  
Vested (in shares) (60,984)  
Forfeited or expired (in shares) 0  
Nonvested shares outstanding, end of period (in shares) 94,820  
Weighted Average Fair Value at Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 41.20  
Granted (in dollars per share) 0  
Vested (in dollars per share) 55.47  
Forfeited or expired (in dollars per share) 0  
Nonvested shares outstanding, end of period (in dollars per share) $ 55.47  
Target Performance Share Units    
Number of Shares    
Granted (in shares) 47,252,000  
Target Performance Share Units | Omnibus Incentive Plan    
Number of Shares    
Granted (in shares) 44,800,000  
v3.24.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Income tax expense $ 5,719 $ 6,577
Effective tax rate 17.00% 18.79%
v3.24.0.1
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Provision at statutory rate $ 7,009 $ 7,228
Tax-exempt income (174) (203)
State income taxes 1,228 1,510
Interim period effective rate adjustment 2,806 1,119
Tax credit investments, net - federal (4,377) (3,062)
IRC 162(m) nondeductible compensation (280) 136
Other, net (493) (151)
Income tax expense $ 5,719 $ 6,577
Effective tax rate 17.00% 18.79%
v3.24.0.1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenue by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Net interest income $ 110,036 $ 84,057
Net realized (gain) on trademarks 0 10,000
Gain on sale of other 2,840 502
Other income 5,179 3,555
Noninterest income 52,761 65,777
Revenue 162,797 149,834
Refund transfer product fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 422 677
Refund advance fee income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 111 617
Card and deposit fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 30,750 37,718
Rental income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 13,459 12,708
Consumer    
Disaggregation of Revenue [Line Items]    
Net interest income 59,356 34,272
Net realized (gain) on trademarks 0 0
Gain on sale of other (31) 0
Other income 1,778 793
Noninterest income 32,787 39,539
Revenue 92,143 73,811
Consumer | Refund transfer product fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 422 677
Consumer | Refund advance fee income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 111 617
Consumer | Card and deposit fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 30,507 37,452
Consumer | Rental income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 0 0
Commercial    
Disaggregation of Revenue [Line Items]    
Net interest income 45,881 42,324
Net realized (gain) on trademarks 0 0
Gain on sale of other 362 502
Other income 2,166 1,084
Noninterest income 15,999 14,362
Revenue 61,880 56,686
Commercial | Refund transfer product fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 0 0
Commercial | Refund advance fee income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 0 0
Commercial | Card and deposit fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 236 261
Commercial | Rental income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 13,235 12,515
Corporate Services/Other    
Disaggregation of Revenue [Line Items]    
Net interest income 4,799 7,461
Net realized (gain) on trademarks 0 10,000
Gain on sale of other 2,509 0
Other income 1,235 1,678
Noninterest income 3,975 11,876
Revenue 8,774 19,337
Corporate Services/Other | Refund transfer product fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 0 0
Corporate Services/Other | Refund advance fee income    
Disaggregation of Revenue [Line Items]    
Noninterest income: 0 0
Corporate Services/Other | Card and deposit fees    
Disaggregation of Revenue [Line Items]    
Noninterest income: 7 5
Corporate Services/Other | Rental income    
Disaggregation of Revenue [Line Items]    
Noninterest income: $ 224 $ 193
v3.24.0.1
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
Sep. 30, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Segment data [Abstract]      
Net interest income $ 110,036 $ 84,057  
Provision for (reversal of) credit loss 9,890 9,776  
Noninterest income 52,761 65,777  
Noninterest expense 119,274 105,059  
Income before income tax expense 33,633 34,999  
Total assets 7,927,437 6,659,225 $ 7,535,543
Total goodwill 309,505 309,505  
Total deposits 6,936,055 5,789,132  
Consumer      
Segment data [Abstract]      
Net interest income 59,356 34,272  
Provision for (reversal of) credit loss 3,454 3,240  
Noninterest income 32,787 39,539  
Noninterest expense 50,013 34,494  
Income before income tax expense 38,676 36,077  
Total assets 563,706 393,898  
Total goodwill 87,145 87,145  
Total deposits 6,587,052 5,624,919  
Commercial      
Segment data [Abstract]      
Net interest income 45,881 42,324  
Provision for (reversal of) credit loss 6,463 6,583  
Noninterest income 15,999 14,362  
Noninterest expense 34,856 32,749  
Income before income tax expense 20,561 17,354  
Total assets 4,206,522 3,476,942  
Total goodwill 222,360 222,360  
Total deposits 3,669 6,628  
Corporate Services/Other      
Segment data [Abstract]      
Net interest income 4,799 7,461  
Provision for (reversal of) credit loss (27) (47)  
Noninterest income 3,975 11,876  
Noninterest expense 34,405 37,816  
Income before income tax expense (25,604) (18,432)  
Total assets 3,157,209 2,788,385  
Total goodwill 0 0  
Total deposits $ 345,334 $ 157,585  
v3.24.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Level 1    
Available-for-sale debt securities [Abstract]    
Total debt securities AFS $ 0 $ 0
Common equities and mutual funds 4,207 3,378
Level 2    
Available-for-sale debt securities [Abstract]    
Total debt securities AFS 1,850,581 1,804,228
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 18,375 18,250
SBA securities 87,732 85,242
Obligations of states and political subdivisions 2,304 2,289
Non-bank qualified obligations of states and political subdivisions 228,888 226,723
Asset-backed securities 237,704 246,199
Mortgage-backed securities 1,275,578 1,225,525
Total debt securities AFS 1,850,581 1,804,228
Common equities and mutual funds 4,207 3,378
Non-marketable equity securities 9,700 8,389
Recurring | Level 1    
Available-for-sale debt securities [Abstract]    
Corporate securities 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 4,207 3,378
Non-marketable equity securities 0 0
Recurring | Level 2    
Available-for-sale debt securities [Abstract]    
Corporate securities 18,375 18,250
SBA securities 87,732 85,242
Obligations of states and political subdivisions 2,304 2,289
Non-bank qualified obligations of states and political subdivisions 228,888 226,723
Asset-backed securities 237,704 246,199
Mortgage-backed securities 1,275,578 1,225,525
Total debt securities AFS 1,850,581 1,804,228
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
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
v3.24.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2023
Sep. 30, 2023
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) 44.00%  
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 4,298,218 4,223,010
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 $ 6,441 21,829
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) 44.00%  
Nonrecurring    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 6,441 21,829
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 6,441 21,829
Nonrecurring | Commercial finance    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 6,441 21,829
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 6,441 21,829
Nonrecurring | Total loans and leases, net individually evaluated for credit loss    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 6,441 21,829
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 $ 6,441 $ 21,829
v3.24.0.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Financial assets    
Debt securities held to maturity $ 32,180 $ 31,425
Level 1    
Financial assets    
Cash and cash equivalents 671,630 375,580
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Common equities and mutual funds 4,207 3,378
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 27,080 23,282
Financial liabilities    
Deposits 6,795,322 6,583,648
Other short- and long-term borrowings 0 0
Accrued interest payable 1,941 247
Level 2    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 1,850,581 1,804,228
Debt securities held to maturity 32,180 31,425
Common equities and mutual funds 0 0
Non-marketable equity securities 10,495 12,064
Loans held for sale 69,518 77,779
Loans and leases 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 23,694 28,210
Accrued interest receivable 0 0
Financial liabilities    
Deposits 142,292 5,417
Other short- and long-term borrowings 31,421 31,187
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 4,298,218 4,223,010
Federal Reserve Bank and Federal Home Loan Bank stocks 0 0
Accrued interest receivable 0 0
Financial liabilities    
Deposits 0 0
Other short- and long-term borrowings 0 0
Accrued interest payable 0 0
Carrying Amount    
Financial assets    
Cash and cash equivalents 671,630 375,580
Debt securities available for sale 1,850,581 1,804,228
Debt securities held to maturity 35,440 36,591
Common equities and mutual funds 4,207 3,378
Non-marketable equity securities 20,195 20,453
Loans held for sale 69,518 77,779
Loans and leases 4,419,364 4,359,681
Federal Reserve Bank and Federal Home Loan Bank stocks 23,694 28,210
Accrued interest receivable 27,080 23,282
Financial liabilities    
Deposits 6,936,055 6,589,182
Other short- and long-term borrowings 33,614 33,873
Accrued interest payable 1,941 247
Estimated Fair Value    
Financial assets    
Cash and cash equivalents 671,630 375,580
Debt securities available for sale 1,850,581 1,804,228
Debt securities held to maturity 32,180 31,425
Common equities and mutual funds 4,207 3,378
Non-marketable equity securities 20,195 20,453
Loans held for sale 69,518 77,779
Loans and leases 4,298,218 4,223,010
Federal Reserve Bank and Federal Home Loan Bank stocks 23,694 28,210
Accrued interest receivable 27,080 23,282
Financial liabilities    
Deposits 6,937,613 6,589,065
Other short- and long-term borrowings 31,421 31,187
Accrued interest payable $ 1,941 $ 247