PATHWARD FINANCIAL, INC., 10-K filed on 11/22/2022
Annual Report
v3.22.2.2
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2022
Nov. 16, 2022
Mar. 31, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 30, 2022    
Current Fiscal Year End Date --09-30    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 1,500.0
Entity Common Stock, Shares Outstanding (in shares)   28,466,833  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
 
PART III of Form 10-K -- Portions of the Proxy Statement for the Annual Meeting of Stockholders expected to be held February 28, 2023 are incorporated by reference into Part III of this report.
    
Entity Central Index Key 0000907471    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.2.2
Audit Information
 12 Months Ended
Sep. 30, 2022
Audit Information [Abstract]  
Auditor Name Crowe LLP
Auditor Firm ID 173
Auditor Location South Bend, Indiana
v3.22.2.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
ASSETS    
Cash and cash equivalents $ 388,038 $ 314,019
Securities available for sale, at fair value 1,882,869 1,864,899
Securities held to maturity, at amortized cost (fair value $38,171 and $56,391, respectively) 41,682 56,669
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 28,812 28,400
Loans held for sale 21,071 56,194
Loans and leases 3,536,305 3,609,563
Allowance for credit losses (45,947) (68,281)
Accrued interest receivable 17,979 16,254
Premises, furniture, and equipment, net 41,710 44,888
Rental equipment, net 204,371 213,116
Goodwill and intangible assets 335,196 342,653
Other assets 295,324 212,276
Total assets 6,747,410 6,690,650
LIABILITIES    
Deposits 5,866,037 5,514,971
Long-term borrowings 36,028 92,834
Accrued expenses and other liabilities 200,205 210,961
Total liabilities 6,102,270 5,818,766
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at September 30, 2022 and 2021, respectively 0 0
Additional paid-in capital 617,403 604,484
Retained earnings 245,394 259,189
Accumulated other comprehensive income (loss) (213,080) 7,599
Treasury stock, at cost, 90,053 and 16,531 common shares at September 30, 2022 and 2021, respectively (4,835) (860)
Total equity attributable to parent 645,170 870,729
Noncontrolling interest (30) 1,155
Total stockholders’ equity 645,140 871,884
Total liabilities and stockholders’ equity 6,747,410 6,690,650
Common Class A    
STOCKHOLDERS’ EQUITY    
Common stock 288 317
Nonvoting Common Stock    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.22.2.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
STOCKHOLDERS’ EQUITY    
Fair Value $ 38,171 $ 56,391
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) 90,053 16,531
Common Class A    
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) 28,878,177 31,686,483
Common stock, shares outstanding (in shares) 28,788,124 31,669,952
Nonvoting Common Stock    
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
v3.22.2.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Interest and dividend income:      
Loans and leases, including fees $ 268,078 $ 256,080 $ 261,128
Mortgage-backed securities 26,846 12,155 9,028
Other investments 17,272 17,619 22,685
Total interest and dividend income 312,196 285,854 292,841
Interest expense:      
Deposits 500 1,593 22,616
FHLB advances and other borrowings 4,372 5,270 11,187
Total interest expense 4,872 6,863 33,803
Net interest income 307,324 278,991 259,038
Provision for credit losses 28,538 49,766 64,776
Net interest income after provision for credit losses 278,786 229,225 194,262
Noninterest income:      
Gain (loss) on sale of securities (1,287) 6 51
Gain on divestitures 0 0 19,275
Gain on sale of trademarks 50,000 0 0
Gain (loss) on sale of other (4,920) 11,515 4,425
Other income 17,357 26,240 14,641
Total noninterest income 293,807 270,904 239,794
Noninterest expense:      
Compensation and benefits 171,126 151,090 136,247
Refund transfer product expense 8,908 11,861 7,644
Refund advance expense 2,157 2,564 2,723
Card processing 38,785 27,201 25,956
Occupancy and equipment expense 34,909 29,269 26,995
Operating lease equipment depreciation 35,636 30,987 32,831
Legal and consulting 40,634 31,341 20,858
Intangible amortization 6,585 8,545 10,997
Impairment expense 670 2,818 1,982
Other expense 45,865 48,007 52,818
Total noninterest expense 385,275 343,683 319,051
Income before income tax expense 187,318 156,446 115,005
Income tax expense 27,964 10,701 5,661
Net income before noncontrolling interest 159,354 145,745 109,344
Net income attributable to noncontrolling interest 2,968 4,037 4,624
Net income attributable to parent $ 156,386 $ 141,708 $ 104,720
Earnings per common share:      
Basic (in dollars per share) $ 5.26 $ 4.38 $ 2.94
Diluted (in dollars per share) $ 5.26 $ 4.38 $ 2.94
Refund transfer product fees      
Noninterest income:      
Noninterest income: $ 39,809 $ 37,967 $ 36,061
Refund advance fee income      
Noninterest income:      
Noninterest income: 40,557 47,639 31,826
Payment card and deposit fees      
Noninterest income:      
Noninterest income: 104,684 107,182 87,379
Other bank and deposit fees      
Noninterest income:      
Noninterest income: 1,049 939 1,310
Rental income      
Noninterest income:      
Noninterest income: $ 46,558 $ 39,416 $ 44,826
v3.22.2.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]      
Net income before noncontrolling interest $ 159,354 $ 145,745 $ 109,344
Other comprehensive income (loss):      
Change in net unrealized gain (loss) on debt securities (293,952) (13,896) 15,164
Net loss (gain) realized on investment securities 1,287 (6) (51)
Total available for sale adjustment (292,665) (13,902) 15,113
Unrealized gain (loss) on currency translation (1,736) 476 (101)
Deferred income tax effect (73,722) (3,483) 3,809
Total other comprehensive income (loss) (220,679) (9,943) 11,203
Total comprehensive income (loss) (61,325) 135,802 120,547
Total comprehensive income attributable to noncontrolling interest 2,968 4,037 4,624
Comprehensive income (loss) attributable to parent $ (64,293) $ 131,765 $ 115,923
v3.22.2.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Adjustment
Total Pathward Financial Stockholders’ Equity
Total Pathward Financial Stockholders’ Equity
Adjustment
Common Stock
Additional Paid-in Capital
Retained Earnings
Retained Earnings
Adjustment
Accumulated Other Comprehensive Income (Loss)
Treasury Stock
Noncontrolling interest
Noncontrolling interest
Adjustment
Balance at the beginning of the period at Sep. 30, 2019 $ 843,958   $ 839,911   $ 378 $ 580,826 $ 252,813   $ 6,339 $ (445) $ 4,047  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (7,100)   (7,100)       (7,100)          
Issuance of common stock due to exercise of stock options 266   266   1 265            
Issuance of common stock due to restricted stock 2   2   2              
Issuance of common stock due to ESOP 3,220   3,220   1 3,219            
Repurchases of common stock (118,738)   (118,738)   (38) 38 (115,506)     (3,232)    
Stock compensation 10,221   10,221     10,221            
Total other comprehensive income (loss) 11,203   11,203           11,203      
Net income before noncontrolling interest 109,344   104,720       104,720       4,624  
Net investment by (distribution to) noncontrolling interests (5,068)                   (5,068)  
Balance at the end of the period at Sep. 30, 2020 847,308 $ (10,803) 843,705 $ (8,351) 344 594,569 234,927 $ (8,351) 17,542 (3,677) 3,603 $ (2,452)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (6,400)   (6,400)       (6,400)          
Issuance of common stock due to ESOP 3,036   3,036   2 3,034            
Repurchases of common stock (99,878)   (99,878)   (29) 29 (96,999)     (2,879)    
Retirement of treasury stock 0           (5,696)     5,696    
Stock compensation 6,852   6,852     6,852            
Total other comprehensive income (loss) (9,943)   (9,943)           (9,943)      
Net income before noncontrolling interest 145,745   141,708       141,708       4,037  
Net investment by (distribution to) noncontrolling interests (4,033)                   (4,033)  
Balance at the end of the period at Sep. 30, 2021 871,884   870,729   317 604,484 259,189   7,599 (860) 1,155  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (5,921)   (5,921)       (5,921)          
Issuance of common stock due to ESOP 2,886   2,886   1 2,885            
Repurchases of common stock (168,235)   (168,235)   (30) 30 (164,260)     (3,975)    
Stock compensation 10,004   10,004     10,004            
Total other comprehensive income (loss) (220,679)   (220,679)           (220,679)      
Net income before noncontrolling interest 159,354   156,386       156,386       2,968  
Net investment by (distribution to) noncontrolling interests (4,153)                   (4,153)  
Balance at the end of the period at Sep. 30, 2022 $ 645,140   $ 645,170   $ 288 $ 617,403 $ 245,394   $ (213,080) $ (4,835) $ (30)  
v3.22.2.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]      
Accounting Standards Update [Extensible Enumeration]   Accounting Standards Update 2016-13 [Member]  
Cash dividends declared on common stock (in dollars per share) $ 0.20 $ 0.20 $ 0.20
v3.22.2.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:      
Net income before noncontrolling interest $ 159,354 $ 145,745 $ 109,344
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation, amortization and accretion, net 61,601 59,047 60,745
Provision for credit losses 28,538 49,766 64,776
Provision (reversal of) for deferred taxes 17,587 (1,639) (2,347)
Originations of loans held for sale (985,330) (601,481) (98,798)
Proceeds from sales of loans held for sale 1,059,361 890,340 319,123
Net change in loans held for sale 12,819 588 22,855
Fair value adjustment of foreclosed real estate 301 591 568
Net realized (gain) on securities available for sale, net (154) (6) (51)
Net realized (gain) loss on loans held for sale 3,694 (8,610) (5,389)
Net realized loss on premise, furniture, and equipment 55 0 0
Net realized (gain) on lease receivables and equipment (3,397) (2,257) (4,335)
Net realized (gain) on foreclosed real estate and repossessed assets 0 (4) 4,960
Net realized (gain) on divestitures 0 0 (19,275)
Net realized (gain) on trademarks (50,000) 0 0
Net realized (gain) loss on other assets 1,441 28 361
Change in bank-owned life insurance value (2,434) (2,434) (2,488)
Impairment on rental equipment 0 0 447
Impairment of intangibles 670 0 0
Impairment on assets held for sale 0 0 242
Net change in accrued interest receivable (1,725) 374 2,050
Net change in other assets (32,936) 825 1,524
Net change in deposits held for sale 0 0 1,535
Net change in accrued expenses and other liabilities (10,640) 43,920 1,152
Stock compensation 10,004 6,852 10,221
Net cash provided by operating activities 268,809 581,645 467,220
Cash flows from investing activities:      
Purchases of securities available for sale (907,361) (1,041,768) (229,326)
Proceeds from sales of securities available for sale 265,951 50,468 4,904
Proceeds from maturities of and principal collected on securities available for sale 324,234 371,898 237,254
Proceeds from maturities of and principal collected on securities held to maturity 14,281 34,268 40,017
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock (173,653) (1,296) (472,000)
Redemption of Federal Reserve Bank and Federal Home Loan Bank stock 173,240 34 475,778
Purchases of loans and leases (115,353) (311,332) (151,435)
Proceeds from sales of loans and leases 123,241 13,850 9,991
Net change in loans and leases 358,635 (196,356) (100,508)
Purchases of premises, furniture, and equipment (8,177) (12,961) (12,266)
Proceeds from sales of premises, furniture, and equipment 35 86 107
Purchases of rental equipment (424,919) (50,437) (53,637)
Proceeds from sales of rental equipment 9,372 16,822 14,692
Net change in rental equipment (5,772) (630) 2,623
Proceeds from sales of foreclosed real estate and repossessed assets 1,824 8,952 23,992
Proceeds from divestitures 0 0 3,498
Proceeds from sale of trademarks 50,000 0 0
Proceeds from sale of other assets 3,550 0 0
Net cash (used in) investing activities (310,872) (1,118,402) (206,316)
Cash flows from financing activities:      
Net change in deposits 351,066 535,771 931,128
Net change in short-term borrowings 0 0 (756,019)
Redemption of long-term borrowings (75,000) 0 0
Proceeds from long-term borrowings 20,000 0 0
Principal payments on capital lease obligations (75) (32) (1,737)
Principal payments on other liabilities (2,751) (5,611) (7,568)
Proceeds from other liabilities 0 80 1,633
Dividends paid on common stock (5,921) (6,400) (7,100)
Issuance of common stock due to exercise of stock options 0 0 266
Issuance of common stock due to restricted stock 1 0 2
Issuance of common stock due to ESOP 2,886 3,036 3,220
Repurchases of common stock (168,235) (99,878) (118,738)
Distributions to noncontrolling interest (4,153) (4,033) (5,068)
Net cash provided by financing activities 117,818 422,933 40,019
Effect of exchange rate changes on cash (1,736) 476 (101)
Net change in cash and cash equivalents 74,019 (113,348) 300,822
Cash and cash equivalents at beginning of fiscal year 314,019 427,367 126,545
Cash and cash equivalents at end of fiscal period 388,038 314,019 427,367
Supplemental disclosure of cash flow information:      
Interest 5,259 8,207 41,294
Income taxes 13,940 8,038 6,223
Franchise taxes 250 250 281
Other taxes 541 722 535
Supplemental schedule of non-cash investing activities:      
Held for sale to loans and leases 115,934 36,919 0
Loans and leases to held for sale 169,045 188,638 542,101
Loans and leases to rental equipment 3,893 28,604 2,134
Loans and leases to foreclosed real estate and repossessed assets 49 9 9,983
Rental equipment to loan and leases 400,148 24,324 8,924
Rental equipment to foreclosed real estate and repossessed assets 0 1,650 0
Other assets to held for sale 0 0 7,858
Deposits to held for sale 0 0 288,975
Recognition of operating lease ROU assets, net of measurements $ 117 $ 12,954 $ 28,666
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Pathward Financial, Inc.® ("Pathward Financial" or the “Company” or "us"), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include PathwardTM, National Association ("Pathward, N.A." or "Pathward" or "the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of Pathward, N.A. which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.

Variable Interest Entities
VIEs are defined by contractual ownership or other interests that change with fluctuations in the VIE's net asset value. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. To determine whether or not a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of the Company's involvement with the VIE. Further, the Company assesses whether or not the Company is the primary beneficiary of a VIE on an ongoing basis.

Crestmark Capital Trust I qualifies as a VIE for which the Company is not the primary beneficiary. Consequently, the accounts of that entity are not consolidated in the Company’s Financial Statements.

As a result of the Crestmark Acquisition, the Company acquired existing membership interests of five joint venture limited liability companies (the "LLCs"). The Company holds 80% of the membership interests in each of the five LLC entities, which offer commercial lending and other financing arrangements. In connection with these LLCs, the Company exclusively provides funding for each entity's activities. The Company determined it is the primary beneficiary of all five LLCs as it has the managing power under the terms of each of the LLC operating agreements. Results of the five LLCs are reflected in the Company's September 30, 2022 Consolidated Financial Statements and are summarized below. The assets recognized as a result of consolidating the LLCs are the property of the LLCs and are not available for any other purpose.

(Dollars in thousands)At September 30, 2022
Cash and cash equivalents$604 
Loans and leases81,881 
Allowance for credit losses(3,720)
Accrued interest receivable345 
Foreclosed real estate and repossessed assets, net1 
Other assets1,727 
Total assets80,838 
Accrued expenses and other liabilities1,280 
Noncontrolling interest(30)
Net assets less noncontrolling assets$79,588 
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interest in the following entities:

•Capital Equipment Solutions, LLC (“CES”) - CES engages in the business of providing equipment financing term loans.

•CM Help, LLC - CM Help provides flexible patient loan programs to hospitals and patient clients of hospitals as a financing alternative for the self-pay and co-pay portions of patients’ hospital expenses.

•CM Southgate II, LLC - CM Southgate II engages in the business of acquiring fleet leases and semi-trailer/tractor loans and leases.

•CM Sterling, LLC - CM Sterling engages in asset based lending and factoring.

•CM TFS, LLC - CM TFS engages in the business of acquiring equipment financing term loans and leases.

NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
One of the Company's primary sources of revenue relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans, and warehouse finance loans. The Company accepts deposits from customers in the normal course of business on a national basis through its Payments and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. See Note 17. Segment Reporting for additional information on the Company's segment reporting.
 
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the valuation of residual values within lease receivables, allowance for credit losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
 
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was zero at September 30, 2022, and zero at September 30, 2021. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2022, the Company had $1.3 million interest-bearing deposits held at the FHLB and $294.4 million in interest-bearing deposits held at the FRB. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS debt securities are carried at fair value on the Consolidated Statements of Financial Condition. Unrealized holding gains and losses due to risk of credit loss are recognized in earnings while unrealized holding gains and losses due to market conditions and other non-credit risk factors are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). See Note 20. Fair Values of Financial Instruments for additional information on fair value of AFS debt securities. HTM debt securities are measured at amortized cost. The Company classifies the majority of its debt securities as AFS, which are those the Company may decide to sell if needed for liquidity, asset/liability management, or other reasons. Both AFS and HTM are subject to an allowance for credit loss. Pathward Financial did not hold trading securities at September 30, 2022 or 2021.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount using the level yield method, is included in income as earned. For callable debt securities, any purchase premium is amortized to the first call date while any discount is accreted over the contractual life of the security.

Debt Securities Credit Losses
The Company evaluates HTM debt securities for credit losses on a quarterly basis and records any such losses as a component of provision for credit losses in the Consolidated Statements of Operations. The Company has concluded that its portfolio as of September 30, 2022 has a zero risk of credit loss due to the U.S. Government financial guarantees underlying the securities within the HTM portfolio and as a result has not recorded an allowance for credit loss.

The Company evaluates AFS debt securities for credit losses on a quarterly basis and records any such losses as a component of provision for credit losses in the Consolidated Statements of Operations. The Company has concluded that any unrealized holding losses in its portfolio as of September 30, 2022 are not related to credit loss and as a result has not recorded an allowance for credit loss. See Note 3. Securities for further information.

Equity Investments
The Company holds marketable equity securities, which have readily determinable fair value, and include common equity and mutual funds. These securities are recorded at fair value with unrealized gains and losses, due to changes in fair value, reflected in earnings. Interest and dividend income from these securities is recognized in interest income. See Note 3. Securities for additional information on marketable equity securities.

The Company also holds non-marketable equity investments that are included in Other Assets in the Company’s Consolidated Financial Statements. The Company generally accounts for these investments under the equity method or the provisions of Accounting Standards Codification ("ASC") 321. Equity Securities. Investments where the Company has significant influence, but not control, over the investee are accounted for under the equity method. Investments where the Company cannot exercise significant influence over the investee are measured at fair value, with changes in fair value recognized in earnings, unless those investments have no readily determinable fair value. Investments without readily determinable fair value are measured under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer ("measurement alternative investments").

The Company reviews for impairment for equity method and measurement alternative investments and includes an analysis of the facts and circumstances for each investment, expectations of cash flows, capital needs, and viability of its business model. For equity method, the asset carrying value is reduced when the decline in fair value is considered to be other than temporary. For measurement alternative investments, the asset carrying value is reduced when the fair value is less than the carrying value, without the consideration of recovery.
The Company held the following non-marketable equity investments:

•Equity Method - The Company held equity method investments of $2.9 million within other assets as of September 30, 2022 and $3.1 million at September 30, 2021. The Company’s ownership of such investments typically ranges from 5% - 25% of the investee. The Company recognized net earnings from these investments in the amount of $12,863 within noninterest income for the fiscal year ended September 30, 2022. The Company elected to classify distributions received from equity method investments using the cumulative earnings approach on the Consolidated Statements of Cash Flows.

•Fair Value Method - The Company held equity investments measured at net asset value (NAV) per share (or its equivalent) of $7.2 million at September 30, 2022 and $4.6 million at September 30, 2021 where NAV is considered the fair value practical expedient. These investments are recorded within other assets on the Company’s Consolidated Financial Statements. Fluctuations in fair value are recognized in earnings within noninterest Income.

•Measurement Alternative - The Company held equity investments measured using the measurement alternative of $15.3 million as of September 30, 2022 and $12.9 million at September 30, 2021 within other assets on the Company’s Consolidated Financial Statements. The Company recognized a fair value decrease of $1.0 million and an increase of $8.0 million during the fiscal years ended September 30, 2022 and 2021, respectively. The Company recognized impairment losses of zero and $2.6 million on such investments during the fiscal years ended September 30, 2022 and 2021, respectively.

LOANS HELD FOR SALE ("LHFS")
LHFS include commercial loans originated under the guidelines of the SBA or USDA and consumer loans. LHFS are held at the lower of cost or fair value. Any amount by which the cost exceeds fair value is initially recorded as a valuation allowance and subsequently reflected in the gain or loss on sale when sold. At September 30, 2022 and 2021, there was no valuation allowance recorded for LHFS. Gains and losses on LHFS are recorded in noninterest income on the Consolidated Statements of Operations. Loan costs and fees are deferred at origination and are recognized in income at the time of sale. Interest income is calculated based on the note rate of the loan and is recorded as interest income. For loans transferred to LHFS due to change in intent of holding the loans to maturity or for the foreseeable future, such loans are transferred at lower of cost or fair value.

LOANS AND LEASES

Loans Receivable
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans.

Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company's business lines follow a nonaccrual policy with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates.
For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due.

As part of the Company’s ongoing risk management practices, management generally attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Modified loan terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance or other actions intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of the collateral. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.

Leases Receivable
The Company provides various types of commercial lease financing that are classified for accounting purposes as direct financing, sales-type or operating leases. Leases that transfer substantially all of the benefits and risks of ownership to the lessee are classified as direct financing or sales-type leases and are included in loans and leases receivable on the Consolidated Statements of Financial Condition. Direct financing and sales-type leases are carried at the combined present value of future minimum lease payments and lease residual values. The determination of lease classification requires various judgments and estimates by management, including the fair value of equipment at lease inception, useful life of the equipment under lease, lease residual value, and collectability of minimum lease payments.

Sales-type leases generate dealer profit, which is recognized at lease inception by recording lease revenue net of lease cost. Lease revenue consists of the present value of the future minimum lease payments. Lease cost consists of the lease equipment’s book value, less the present value of its residual. Interest income on direct financing and sales-type leases is recognized using methods that approximate a level yield over the fixed, non-cancelable term of the lease. Recognition of interest income is generally discontinued at the time the lease becomes 90 days delinquent, unless the lease is well-secured and in process of collection. Delinquency and past due status is based on the contractual terms of the lease. The Company receives pro rata rent payments for the interim period until the lease contract commences and the fixed, non-cancelable lease term begins. Interim payments are recognized in the month they are earned and are recorded in interest income. Management has policies and procedures in place for the determination of lease classification and review of the related judgments and estimates for all lease financings.

The Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for leases when management judges the lease to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the lease has been classified as a loss by either the Company's internal review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the lease meets a defined number of days past due unless the lease is both well-secured and in the process of collection.
Some lease financings include a residual value component, which represents the estimated fair value of the leased equipment at the expiration of the initial term of the transaction. The estimation of the residual value involves judgments regarding product and technology changes, customer behavior, shifts in supply and demand, and other economic assumptions. The Company may purchase and sell minimum lease payments, primarily as a credit risk reduction tool, to third-party financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral. For those transactions that achieve sale treatment, the related lease cash flow stream and the non-recourse financing are derecognized. For those transactions that do not achieve sale treatment, the underlying lease remains on the Company’s Consolidated Statements of Financial Condition and non-recourse debt is recorded in the amount of the proceeds received. The Company retains servicing of these leases and bills, collects, and remits funds to the third-party financial institution. Upon default by the lessee, the third-party financial institutions may take control of the underlying collateral which the Company would otherwise retain as residual value.

Leases that do not transfer substantially all benefits and risks of ownership to the lessee are classified as operating leases. Such leased equipment are included in rental equipment on the Consolidated Statements of Financial Condition and are depreciated on a straight-line basis over the term of the lease to its estimated residual value. Depreciation expense is recorded as operating lease equipment depreciation expense within noninterest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of noninterest income. The Company evaluates the carrying value of rental equipment for impairment whenever events or circumstances have occurred that would indicate the carrying amount may not be fully recoverable. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value, where fair value is based on the condition of the rental equipment and the projected net cash flows from rental and sale adjusted for current market conditions. No impairment expense was recognized for fiscal years ended September 30, 2022, 2021, and 2020.

LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETS
The Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, generally without recourse. Sold loans are not included in the Consolidated Financial Statements. The Bank generally retains the right to service the sold loans for a fee and records a servicing asset, which is included within other assets on the Consolidated Statements of Financial Condition. At September 30, 2022 and 2021, the Bank was servicing loans for others with aggregate unpaid principal balances of $336.6 million and $307.3 million, respectively. The service fees and ancillary income related to these loans were immaterial.

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

ALLOWANCE FOR CREDIT LOSSES
The ACL represents management’s estimate of current credit losses expected to be incurred by the loan and lease portfolio over the life of each financial asset as of the balance sheet date. 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 troubled debt restructurings or loans and leases on nonaccrual status. All other loans and leases are evaluated collectively for credit loss. A reserve for unfunded credit commitments such as letters of credit and binding unfunded loan commitments is recorded in other liabilities on the Consolidated Statements of Financial Condition.

Individually evaluated loans and leases are a key component of the ACL. Generally, the Company measures credit loss on individually evaluated loans based on the fair value of the collateral less estimated selling costs, as the Company considers these financial assets to be collateral dependent. If an individually evaluated loan or lease is not collateral dependent, credit loss is measured at the present value of expected future cash flows discounted at the loan or lease initial effective interest rate. Management has also 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.
Credit loss for all other loans and leases is evaluated collectively by various characteristics. The collective evaluation of expected losses in all commercial finance portfolios is based on a cohort loss rate and adjustments for forward-looking information, including industry and macroeconomic forecasts. The cohort loss rate is a life of loan loss rate that immediately reverts to historical loss information for the remaining maturity of the financial asset. Management has elected to use a twelve-month reasonable and supportable forecast for forward-looking information. Factors utilized in the determination of the allowance include historical loss experience, current economic forecasts and measurement date credit characteristics such as product type, delinquency, and industry. The unfunded credit commitments depend on these same factors, as well as estimates of lines of credit usage. The various quantitative and qualitative factors used in the methodologies are reviewed quarterly.

The collective evaluation of expected credit losses for certain consumer lending portfolios utilize different methodologies when estimating expected credit losses. Factors utilized in the determination of the allowance include historical loss experience, current economic forecasts, and measurement date credit characteristics including delinquency.

The amount of ACL depends significantly on management’s estimates or key factors and assumptions affecting valuation, appraisals of collateral, evaluations of performance and status, the amounts and timing of future cash flows expected to be received, forecasts of future economic conditions and reversion periods. Such estimates, appraisals, evaluations, cash flows and forecasts may be subject to frequent adjustments due to changing economic prospects of borrowers, lessees, properties or economic conditions. These estimates are reviewed quarterly and adjustments, if necessary, are recorded in the provision for credit losses in the periods in which they become known.

Accrued interest receivable is presented separately on the Consolidated Statements of Financial Condition, and an ACL is not recorded for these balances. Generally, when a loan or lease is placed on nonaccrual status, typically when the collection of interest or principal is 90 days or more past due, uncollected interest accrued in prior years is charged off against the ACL and interest accrued in the current year is reversed against interest income.

Management maintains a framework of controls over the estimation process for the ACL, including review of collective reserve methodologies for compliance with GAAP. Management has a quarterly process to review the appropriateness of historical observation periods and loss assumptions and risk ratings assigned to loans and leases, if applicable. Management reviews its qualitative framework and the effect on the collective reserve compared with relevant credit risk factors and consistency with credit trends. Management also maintains controls over information systems, models and spreadsheets used in the quantitative components of the reserve estimate. This includes the quality and accuracy of historical data used to derive loss rates, the inputs to industry and macroeconomic forecasts and the reversion periods utilized. The results of this process are summarized and presented to management quarterly for their approval of the recorded allowance. See Note 4. Loans and Leases, Net for further information.

The following are risk characteristics of the Company’s loan and lease portfolio:
Commercial Finance
The Company's Commercial Finance business line offers a variety of products through its working capital, equipment finance, structured finance, and insurance premium finance lending solutions. These products include term lending, asset based lending, factoring, lease financing, insurance premium finance, government guaranteed lending and other commercial finance products offered on a nationwide basis that are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or lease or could cause a decline in the value of the collateral that secures the loan or lease. The loans or leases are primarily made based on the operating cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans and leases may be difficult to measure. Most commercial finance loans and leases are secured by the assets being financed or other business assets such as accounts receivable or inventory. Although the loans and leases are often collateralized by equipment, inventory, accounts receivable, insurance premiums or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of borrowers and guarantors.
Consumer Finance
The Company's BaaS business line offers its consumer credit products and Emerald Advance products through its credit solution. The Bank designs its credit program relationships with certain desired outcomes. Three high priority outcomes are liquidity, credit protection, and risk retention. The Bank believes the benefits of these outcomes not only support its goals but the goals of the credit program partner as well. The Bank designs its program credit protections in a manner so that the Bank earns a reasonable risk adjusted return, but is protected by certain layers of credit support, similar to what you would find in structured finance. Certain loans are sold to third parties based on terms and conditions within the Program Agreement.

Tax Services
The Bank's BaaS business line also offers tax solutions, which includes short-term refund advance loans. Through this product, taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of refund advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a refund advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

The Bank offers short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

Warehouse Finance
The Bank participates in several collateral-based warehouse lines of credit whereby the Bank is in a senior, secured position as the first out participant. These facilities are primarily collateralized by consumer receivables, with the Bank holding a senior collateral position enhanced by a subordinate party structure.

EARNINGS PER COMMON SHARE (“EPS”)
Basic earnings per share is computed 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 earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. See Note 5. Earnings per Common Share for further information.

PREMISES, FURNITURE, AND EQUIPMENT
Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements, internal-use software and equipment are carried at cost, less accumulated depreciation and amortization. The Company primarily uses the straight-line method of depreciation over the estimated useful lives of the assets, which is 39 years for buildings, three years years for internal-use software, and range from two years to 15 years for leasehold improvements, and for furniture, fixtures and equipment. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. See Note 6. Premises, Furniture and Equipment, Net for further information.
GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment at a reporting unit level. The Company has determined that its reporting units are one level below the operating segments and distinguish these reporting units based on how the segments and reporting units are managed, taking into consideration the economic characteristics, nature of the products, and customers of the segments and reporting units. The Company performs its impairment evaluation as of September 30 of each fiscal year unless a triggering event occurs that would require an interim impairment evaluation. The Company generally utilizes a qualitative approach during this annual assessment to determine whether it is more likely than not (i.e. a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. If we determine it is more likely than not that goodwill is impaired, then a quantitative assessment is performed to determine fair value of the reporting unit. If the carrying amount of the reporting unit with goodwill exceeds its fair value, goodwill is considered impaired and is written down by the excess carrying value of the reporting unit. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the fiscal years ended September 30, 2022, 2021 or 2020. See Note 8. Goodwill and Intangible Assets for further information.

INTANGIBLE ASSETS
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. See Note 8. Goodwill and Intangible Assets for further information.

EMPLOYEE PROFIT SHARING PLAN
The Company has a profit sharing plan covering substantially all full-time employees. Profit sharing expense included in compensation and benefits, for the fiscal years ended September 30, 2022, 2021 and 2020 was $0.1 million, $3.1 million and $3.1 million, respectively. As of October 1, 2021, the Company modified its profit sharing plan to incorporate a Qualified Automatic Contribution Arrangement safe harbor provision, whereby employee contributions are matched at 100% of the first 6% of eligible compensation contributed.

STOCK COMPENSATION
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of non-vested (restricted) shares and performance share units 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. See Note 13. Stock Compensation for further information.

INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in noninterest income or noninterest expense. The effect on deferred tax assets and liabilities from a change in tax rates is recorded in income tax expense in the Consolidated Statements of Operations in the period in which the enactment date occurs. If current period income tax rates change, the impact on the annual effective income tax rate is applied year to date in the period of enactment. See Note 14. Income Taxes for further information.

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Company, in the normal course of business, makes commitments to originate loans which are not reflected in the Consolidated Financial Statements. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition.
REVENUE RECOGNITION
Interest revenue from loans, leases, and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan, lease, or investment. Income from service and other customer charges is recognized as earned. Revenue within the Consumer segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. Refer to Note 16. Revenue from Contracts with Customers for additional information.

COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes the change in net unrealized holding gains and losses due to market conditions and other non-credit risk factors on AFS debt securities, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
 
RELATED PARTY TRANSACTIONS
The Company has disclosed information on its equity investments and relationships with variable interest entities in Note 1. Summary of Significant Accounting Policies.

At September 30, 2022 and 2021, the Company had no loans outstanding with individuals deemed under Regulation O to be directors, executive officers and/or employees of the Company.

RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES
Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.

RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
The following ASUs were adopted by the Company during the fiscal year ended September 30, 2022, none of which had a material impact on the Company's Consolidated Financial Statements. All became effective for the Company on October 1, 2021.

ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies accounting for income taxes by removing specific technical exceptions in ASC 740 related to the incremental approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. All changes within ASU 2019-12 were applied on a prospective basis and did not have a material impact on the Company's Consolidated Financial Statements.

ASU 2020-08, Codification Improvements to Subtopic 310-20: Receivables – Nonrefundable Fees and Other Costs. This ASU clarifies that an entity should amortize any premium, if applicable, to the next call date, which is the first date when a call option at a specified price becomes exercisable. The Company had previously amortized fees through the next call date and will continue to do so; accordingly, there is no impact on the Company's Consolidated Financial Statements as a result of adopting this ASU.

ASU 2020-10, Codification Improvements. This ASU made minor improvements to various Topics that did not have a significant impact on the Company’s accounting policies and practices. There were no material impacts to the Consolidated Financial Statements as a result of adopting this ASU.

ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services – Depository and Lending (Topic 942), and Financial Services – Investment Companies (Topic 946) – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Business, and No. 33-10835, Updated of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU adds new quarterly disclosures and expands certain annual disclosures to quarterly reporting. The additional disclosure requirements have been included within the Management Discussion & Analysis section.

The following ASUs have been issued and are considered applicable to the Company, but have not yet been adopted as of September 30, 2022.
ASU 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments. The amendments in this ASU require lessors to classify and account for leases with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. This ASU is effective for public companies for fiscal years beginning after December 15, 2021. The Company’s Equipment Finance division does not generally originate leases with variable lease payments that do not depend on a reference rate or index, so the impact of this ASU is not expected to be material to the 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. This ASU is effective for public companies for fiscal years beginning after December 15, 2022. Management is currently evaluating the impact of this guidance on the consolidated financial statements.
v3.22.2.2
SIGNIFICANT EVENTS
 12 Months Ended
Sep. 30, 2022
Unusual or Infrequent Items, or Both [Abstract]  
SIGNIFICANT EVENTS SIGNIFICANT EVENTS
Rebranding

On December 7, 2021, the Company executed a Purchase Agreement (the “Agreement”) with Beige Key, LLC (the “Assignee”) for the sale of all of the Company’s worldwide right, title and interest in and to company names and tradenames including Meta and other "Meta" formative names including MetaBank and Meta Financial Group, and the domain names, social media accounts and goodwill associated with the foregoing (collectively, the “Meta” tradenames) in exchange for $60.0 million in cash. Subject to the terms and conditions set forth in the Agreement, the Company has one year from the Agreement execution date to phase out and cease all use of the Meta tradenames. From the date of the Agreement until the date such phase out is completed (the “Phase Out Period”), Assignee has granted the Company a non-exclusive royalty free license in the United States and Canada to use the Meta tradenames in the manner in which they were used by the Company prior to the Agreement.

The Company received $50.0 million upon execution and delivery of the Agreement, at which time the Meta tradenames were assigned to the Assignee. The Company has recognized the $50.0 million as noninterest income in the fiscal year ended September 30, 2022. The remaining $10.0 million was paid by the Assignee and is being held in an escrow account by a third-party agent until the agreed upon activities within the Phase Out Period have been completed, at which time the funds will be released to the Company. The Company’s receipt of the $10.0 million payment is contingent upon phase out activities that have not yet been completed and has not been recognized in the Company’s consolidated financial statements for the fiscal year ended September 30, 2022.

On July 13, 2022, the Company announced it changed its name to Pathward Financial, Inc.TM, and its bank subsidiary MetaBank®, N.A. changed to Pathward™, N.A. ("Pathward" or the "Bank"). The full transition to Pathward, including a new brand identity and website, is expected to be completed by the end of this calendar year.

The Company recognized $13.1 million of noninterest expense related to rebranding efforts in the fiscal year ended September 30, 2022.
v3.22.2.2
SECURITIES
 12 Months Ended
Sep. 30, 2022
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.
Debt Securities AFS
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At September 30, 2022
Corporate securities$25,000 $— $(2,813)$22,187 
SBA securities105,238 — (7,470)97,768 
Obligations of states and political subdivisions2,469 — (125)2,344 
Non-bank qualified obligations of states and political subdivisions290,754 — (26,971)263,783 
Asset-backed securities160,806 — (13,016)147,790 
Mortgage-backed securities1,581,452 — (232,455)1,348,997 
Total debt securities AFS$2,165,719 $— $(282,850)$1,882,869 
At September 30, 2021
Corporate securities$25,000 $— $— $25,000 
SBA securities151,958 5,251 — 157,209 
Obligations of states and political subdivisions2,497 10 — 2,507 
Non-bank qualified obligations of states and political subdivisions266,048 3,347 (1,100)268,295 
Asset-backed securities393,103 3,003 (1,247)394,859 
Mortgage-backed securities1,016,478 9,728 (9,177)1,017,029 
Total debt securities AFS$1,855,084 $21,339 $(11,524)$1,864,899 

Debt Securities HTM
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$39,093 $— $(3,190)$35,903 
Mortgage-backed securities2,589 — (321)2,268 
Total debt securities HTM$41,682 $— $(3,511)$38,171 
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$52,944 $103 $(471)$52,576 
Mortgage-backed securities3,725 90 — 3,815 
Total debt securities HTM$56,669 $193 $(471)$56,391 
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 September 30, 2022
Corporate securities$— $— $22,187 $(2,813)$22,187 $(2,813)
SBA securities97,767 (7,470)— — 97,767 (7,470)
Obligations of state and political subdivisions2,345 (125)— — 2,345 (125)
Non-bank qualified obligations of states and political subdivisions195,816 (19,743)67,967 (7,228)263,783 (26,971)
Asset-backed securities64,886 (1,838)82,904 (11,178)147,790 (13,016)
Mortgage-backed securities816,657 (106,583)532,340 (125,872)1,348,997 (232,455)
Total debt securities AFS$1,177,471 $(135,759)$705,398 $(147,091)$1,882,869 $(282,850)
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$101,046 $(1,100)$— $— $101,046 $(1,100)
Asset-backed securities127,110 (283)91,553 (964)218,663 (1,247)
Mortgage-backed securities759,035 (7,418)60,792 (1,759)819,827 (9,177)
Total debt securities AFS$987,191 $(8,801)$152,345 $(2,723)$1,139,536 $(11,524)
Debt Securities HTM
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$3,984 $(300)$31,919 $(2,890)$35,903 $(3,190)
Mortgage-backed securities2,268 (321)— — 2,268 (321)
Total debt securities HTM$6,252 $(621)$31,919 $(2,890)$38,171 $(3,511)
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$26,096 $(471)$— $— $26,096 $(471)
Total debt securities HTM$26,096 $(471)$— $— $26,096 $(471)

At September 30, 2022, there were 195 securities AFS in an unrealized loss position. All of the mortgage-backed securities ("MBS") in an unrealized loss position at September 30, 2022 were government guaranteed. Management assessed each investment security with unrealized losses for credit loss and determined substantially all unrealized losses on these securities were due to credit spreads and 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 September 30, 2022, there was no 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 which 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.
At September 30,
(Dollars in thousands)20222021
Securities AFS at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$718 $715 $810 $822 
Due after one year through five years9,921 9,395 13,026 13,378 
Due after five years through ten years89,921 81,819 50,785 52,357 
Due after ten years483,707 441,943 773,985 781,313 
584,267 533,872 838,606 847,870 
Mortgage-backed securities1,581,452 1,348,997 1,016,478 1,017,029 
Total securities AFS, at fair value$2,165,719 $1,882,869 $1,855,084 $1,864,899 

At September 30,
(Dollars in thousands)20222021
Securities HTM at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due after ten years$39,093 $35,903 $52,944 $52,576 
39,093 35,903 52,944 52,576 
Mortgage-backed securities2,589 2,268 3,725 3,815 
Total securities HTM, at cost$41,682 $38,171 $56,669 $56,391 

Activity related to the sale of securities available for sale is summarized below.
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Available For Sale
   Proceeds from sales$265,951 $50,468 $4,904 
   Gross gains on sales1,742 179 51 
   Gross losses on sales1,588 173 — 
 Net gain (loss) on securities AFS$154 $6 $51 

There was no activity related to the sale of securities held to maturity during the fiscal years ended September 30, 2022, 2021, and 2020.

No securities were pledged as collateral for public funds on deposit at September 30, 2022 and 2021. No securities were pledged as collateral for individual, trust and estate deposits at September 30, 2022 and 2021.

Equity Securities
The Company held $2.9 million and $12.7 million in marketable equity securities at September 30, 2022 and 2021, respectively. The Company recognized $3.8 million and $3.4 million in unrealized loss on marketable equity securities during the fiscal years ended September 30, 2022 and 2021, respectively, which is attributable to an investee becoming publicly traded during fiscal year 2021. All other marketable equity securities and related activity were insignificant for the fiscal years ended September 30, 2022 and 2021. There was one marketable equity security sold during fiscal year 2022 for a $0.3 million gain.

Non-marketable equity securities with a readily determinable fair value totaled $7.2 million and $4.6 million at September 30, 2022 and 2021, respectively. The Company recognized $1.1 million and $0.6 million in unrealized gains during the fiscal years ended September 30, 2022 and 2021, respectively. No such securities were sold during fiscal year 2022.

Non-marketable equity securities without readily determinable fair value totaled $18.2 million and $16.0 million at September 30, 2022 and 2021, respectively. There were four securities sold during the fiscal year ended September 30, 2022 for a $1.7 million loss.
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 September 30, 2022 and 2021. These equity securities are 'restricted' in that they can only be owned by member banks. At fiscal year-end 2022 and 2021, the Company pledged securities with fair values of approximately $924.2 million and $236.1 million against FRB advances, respectively.
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Included in interest and dividend income from other investments is $1.2 million and $1.5 million related to dividend income on FRB stock for the fiscal years ended September 30, 2022 and 2021, respectively.

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 $9.1 million and $8.7 million at September 30, 2022 and 2021, respectively. At fiscal year-end 2022 and 2021, the Company pledged securities with fair values of approximately $804.0 million and $644.7 million, respectively, to be used against FHLB advances. In addition, a combination of qualifying residential and other real estate loans of zero and zero were pledged as collateral at September 30, 2022 and 2021, respectively.

Included in interest and dividend income from other investments is $0.3 million, $0.2 million and $0.8 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.

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

Equity Security 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 zero, $2.6 million, and $1.3 million in impairment for such investments for the fiscal years ended September 30, 2022, 2021, and 2020, respectively.
v3.22.2.2
LOANS AND LEASES, NET
 12 Months Ended
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES, NET LOANS AND LEASES, NET
Loans and leases consist of the following:
At September 30,
(Dollars in thousands)20222021
Term lending$1,090,289 $961,019 
Asset based lending351,696 300,225 
Factoring372,595 363,670 
Lease financing210,692 266,050 
Insurance premium finance479,754 428,867 
SBA/USDA359,238 247,756 
Other commercial finance159,409 157,908 
Commercial finance3,023,673 2,725,495 
Consumer credit products144,353 129,251 
Other consumer finance25,306 123,606 
Consumer finance169,659 252,857 
Tax services9,098 10,405 
Warehouse finance326,850 419,926 
Community banking— 199,132 
Total loans and leases3,529,280 3,607,815 
Net deferred loan origination costs7,025 1,748 
Total gross loans and leases3,536,305 3,609,563 
Allowance for credit losses(45,947)(68,281)
Total loans and leases, net$3,490,358 $3,541,282 

During the fiscal years ended September 30, 2022 and 2021, the Company transferred $169.0 million and $188.6 million, respectively, of Community Banking loans to held for sale.

During the fiscal years ended September 30, 2022, the Company originated $985.3 million of other consumer finance and SBA/USDA loans held for sale. During the fiscal year ended September 30, 2021, the Company originated $601.5 million of other consumer finance, SBA/USDA, and consumer credit product loans as held for sale.

The Company sold held for sale loans resulting in proceeds of $1.06 billion and gains on sale of $3.7 million during the fiscal year ended September 30, 2022. The Company sold held for sale loans resulting in proceeds of $890.3 million and gains on sale of $8.6 million during the fiscal year ended September 30, 2021.

In connection with the Company's sale of the Bank's Community Bank division to Central Bank, the Company entered into a servicing agreement with Central Bank for the retained Community Bank loan portfolio that became effective on February 29, 2020 (the "Closing Date"). The Company recognized $0.2 million and $3.3 million for the fiscal years ended September 30, 2022 and 2021, respectively.

Since the Closing Date, the Company has entered into subsequent loan portfolio sale agreements with Central Bank and other third parties. The Company sold additional loans from the retained Community Bank portfolio in the amount of $192.5 million and $308.1 million for the fiscal years ended September 30, 2022 and 2021, respectively. All loans from the retained Community Bank portfolio have been sold as of December 31, 2021.
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Loans Purchased
Commercial finance$3,098 $— 
Warehouse finance112,255 308,014 
Community banking— 3,318 
Total purchases$115,353 $311,332 
Loans Sold
Loans held for sale:
Commercial finance$50,848 $89,276 
Consumer finance855,291 494,585 
Community banking153,222 308,082 
Loans held for investment:
Commercial finance15,549 — 
Consumer finance77,456 — 
Community banking30,235 13,850 
Total sales$1,182,601 $905,793 

Leasing Portfolio. The net investment in direct financing and sales-type leases was comprised of the following:
At September 30,
(Dollars in thousands)20222021
Carrying amount$216,880 $278,341 
Unguaranteed residual assets13,037 14,393 
Unamortized initial direct costs295 490 
Unearned income(19,225)(26,684)
Total net investment in direct financing and sales-type leases$210,987 $266,540 

The components of total lease income were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$17,081 $22,876 
Leasing and equipment finance noninterest income
Lease income from operating lease payments46,017 39,553 
Profit recorded on commencement date on sales-type leases— 337 
Other(1)
5,982 4,986 
Total leasing and equipment finance noninterest income51,999 44,876 
Total lease income$69,080 $67,752 
(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 September 30, 2022 were as follows:
(Dollars in thousands)
2023$95,608 
202466,344 
202534,657 
202612,714 
20275,495 
Thereafter2,062 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases216,880 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$216,880 

The Company did not record any contingent rental income from direct financing and sales-type leases in the fiscal year ended September 30, 2022.

The COVID-19 pandemic began impacting the U.S. and global economies in the first calendar quarter of 2020, with significant deterioration of macroeconomic conditions and markets into 2021. Although macroeconomic conditions and markets have improved since the beginning of 2021, other factors have been affecting the economic environment in 2022 including geopolitical conflict, supply chain disruptions, inflation, and rising interest rates. While the ultimate impact of the pandemic and these other factors on the Company's loan and lease portfolio remains difficult to predict, management continues to evaluate the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses and the impact to our customers and businesses as a result of COVID-19 and other factors impacting the economy and will refine its estimate as developments occur and more information becomes available.

Activity in the allowance for credit losses was as follows: 
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Beginning balance$68,281 $56,188 
Impact of CECL adoption— 12,773 
Provision for credit losses28,862 49,939 
Charge-offs(61,061)(57,273)
Recoveries9,865 6,654 
Ending balance$45,947 $68,281 
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
At September 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $4,850 $(12,629)$3,049 $24,621 
Asset based lending1,726 (1,092)(16)432 1,050 
Factoring3,997 11,699 (11,057)1,917 6,556 
Lease financing7,629 (2,062)(301)636 5,902 
Insurance premium finance1,394 597 (767)226 1,450 
SBA/USDA2,978 863 (652)74 3,263 
Other commercial finance1,168 142 — — 1,310 
Commercial finance48,243 14,997 (25,422)6,334 44,152 
Consumer credit products1,242 158 — — 1,400 
Other consumer finance6,112 (1,607)(4,787)345 63 
Consumer finance7,354 (1,449)(4,787)345 1,463 
Tax services2 28,093 (30,852)2,762 5 
Warehouse finance420 (93)— — 327 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 28,862 (61,061)9,865 45,947 
Unfunded commitments(1)
690 (324)— — 366 
Total $68,971 $28,538 $(61,061)$9,865 $46,313 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.

At September 30, 2021
(Dollars in thousands)Beginning BalanceImpact of CECL AdoptionProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for loan and lease losses:
Term lending$15,211 $9,999 $16,944 $(14,090)$1,287 $29,351 
Asset based lending1,406 164 933 (1,200)423 1,726 
Factoring3,027 987 (1,192)— 1,175 3,997 
Lease financing7,023 (556)3,758 (2,969)373 7,629 
Insurance premium finance2,129 (965)(555)(1,192)1,977 1,394 
SBA/USDA940 2,720 (703)— 21 2,978 
Other commercial finance182 364 622 — — 1,168 
Commercial finance29,918 12,713 19,807 (19,451)5,256 48,243 
Consumer credit products845 — 397 — — 1,242 
Other consumer finance2,821 5,998 297 (3,324)320 6,112 
Consumer finance3,666 5,998 694 (3,324)320 7,354 
Tax services2 — 33,276 (34,354)1,078 2 
Warehouse finance294 (1)127 — — 420 
Community banking22,308 (5,937)(3,965)(144)— 12,262 
Total loans and leases56,188 12,773 49,939 (57,273)6,654 68,281 
Unfunded commitments(1)
32 831 (173)— — 690 
Total $56,220 $13,604 $49,766 $(57,273)$6,654 $68,971 
(1) Reserve for unfunded commitments is recognized within other liabilities on the 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 September 30, 2022At September 30, 2021
Term lending$2,885 $20,965 
Factoring550 1,268 
Lease financing2,787 3,882 
SBA/USDA1,199 — 
Commercial finance(1)
7,421 26,115 
Community banking— 14,915 
Total$7,421 $41,030 
(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. At September 30, 2022, the balance of these pass rated cash collateral loans totaled $120.7 million.

In response to the ongoing COVID-19 pandemic, the Company allowed modifications, such as payment deferrals and temporary forbearance, to credit-worthy borrowers who are experiencing temporary hardship due to the effects of COVID-19. Up to January 1, 2022, when this relief ended, if all payments were less than 30 days past due prior to the onset of the pandemic effects, the loan or lease was not be reported as past due during the deferral or forbearance period. As of September 30, 2022, the Company had no loans and leases that were in active deferment. These modifications consisted solely of payment deferrals ranging from 30 days to six months. These modifications are in line with applicable regulatory guidelines and, therefore, they are not reported as troubled debt restructurings.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the OCC, to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows:
 
Pass - A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.
 
Watch - A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets.

Special Mention - A special mention asset is a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.
 
The adverse classifications are as follows:
 
Substandard - A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful - A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate.
Loss - A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

Loans and leases, or portions thereof, are generally charged off when collection of principal becomes doubtful. Typically, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 180 days or more for the purchased student loan portfolios, 120 days or more for consumer credit products and leases, and 90 days or more for community banking loans and commercial finance loans. Action is taken to charge off electronic return originator ("ERO") loans if such loans have not been collected by the end of June and refund advance loans if such loans have not been collected by the end of the calendar year. Nonaccrual loans and troubled debt restructurings are generally individually evaluated for expected credit losses.

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

The Company has various portfolios of consumer finance and tax services loans that present unique risks that are statistically managed. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for credit losses 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 $169.7 million and $9.1 million at September 30, 2022, respectively, and $252.9 million and $10.4 million at September 30, 2021, 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 September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special Mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 99,114 121,429 73,717 — 1,090,289 
Asset based lending
Pass— — — — — — 154,494 154,494 
Watch— — — — — — 162,990 162,990 
Special Mention— — — — — — 13,770 13,770 
Substandard— — — — — — 20,442 20,442 
Total— — — — — — 351,696 351,696 
Factoring
Pass— — — — — — 254,883 254,883 
Watch— — — — — — 86,219 86,219 
Special Mention— — — — — — 9,174 9,174 
Substandard— — — — — — 22,319 22,319 
Total— — — — — — 372,595 372,595 
Lease financing
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special Mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special Mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 40,474 56,538 28,874 24,305 — 316,610 
Watch— 13,836 1,266 702 — 710 — 16,514 
Special Mention— 211 — 869 — — — 1,080 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 23,145 26,040 20,458 23,098 60,782 — 159,409 
Warehouse finance
Pass— — — — — — 294,350 294,350 
Special Mention— — — — — — 32,500 32,500 
Total— — — — — — 326,850 326,850 
Total loans and leases
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special Mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 584 1,749 960 204 192 — 4,022 
Total$873,673 $538,519 $306,740 $218,730 $193,876 $167,844 $1,051,141 $3,350,523 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202120212020201920182017Prior
Term lending
Pass$362,443 $192,305 $63,708 $34,381 $3,195 $1,236 $— $657,268 
Watch63,046 71,701 32,941 21,419 76 3,628 — 192,811 
Special Mention6,422 26,673 4,821 932 70 633 — 39,551 
Substandard18,569 16,810 26,920 3,529 928 641 — 67,397 
Doubtful252 1,673 1,756 311 — — — 3,992 
Total450,732 309,162 130,146 60,572 4,269 6,138 — 961,019 
Asset based lending
Pass— — — — — — 185,432 185,432 
Watch— — — — — — 52,072 52,072 
Special Mention— — — — — — 43,135 43,135 
Substandard— — — — — — 19,586 19,586 
Total— — — — — — 300,225 300,225 
Factoring
Pass— — — — — — 294,124 294,124 
Watch— — — — — — 17,984 17,984 
Special Mention— — — — — — 33,035 33,035 
Substandard— — — — — — 18,527 18,527 
Total— — — — — — 363,670 363,670 
Lease financing
Pass54,434 73,629 17,153 7,511 1,857 203 — 154,787 
Watch22,061 20,455 9,274 2,739 1,454 — — 55,983 
Special Mention15,402 20,595 4,148 1,546 61 — — 41,752 
Substandard479 4,765 4,981 831 25 — — 11,081 
Doubtful— 6 2,402 38 1 — — 2,447 
Total92,376 119,450 37,958 12,665 3,398 203 — 266,050 
Insurance premium finance
Pass428,131 144 9 — — — — 428,284 
Watch262 5 — — — — — 267 
Special Mention58 5 — — — — — 63 
Substandard68 107 — — — — — 175 
Doubtful58 20 — — — — — 78 
Total428,577 281 9 — — — — 428,867 
SBA/USDA
Pass110,122 37,006 14,461 12,760 6,525 3,779 — 184,653 
Watch— 20,431 1,996 1,670 1,394 298 — 25,789 
Special Mention— 8,333 214 3,348 177 919 — 12,991 
Substandard— 3,812 9,550 8,079 2,169 713 — 24,323 
Total110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 
Other commercial finance
Pass56,957 642 5,786 6,075 3,345 60,965 — 133,770 
Watch— 17,404 3,409 451 — — — 21,264 
Substandard466 — — 273 837 1,299 — 2,875 
Total57,423 18,046 9,195 6,799 4,182 62,264 — 157,909 
Warehouse finance
Pass— — — — — — 419,926 419,926 
Total— — — — — — 419,926 419,926 
Community banking
Pass— — 4,159 — 5,683 472 — 10,314 
Watch— 10,134 — 10,854 6,133 — — 27,121 
Special Mention— — 35,916 — — — — 35,916 
Substandard— 119 49,449 50,626 13,933 6,110 — 120,237 
Doubtful— 122 — 5,422 — — — 5,544 
Total— 10,375 89,524 66,902 25,749 6,582 — 199,132 
Total loans and leases
Pass1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 
Watch85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 
Special Mention21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 
Substandard19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 
Doubtful310 1,822 4,158 5,770 1 — — 12,061 
Total$1,139,233 $526,899 $293,051 $172,793 $47,861 $80,895 $1,083,821 $3,344,553 
Past due loans and leases were as follows:
At September 30, 2022
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 2,576 4,458 21,100 1,069,189 1,090,289 2,035 7,576 9,611 
Asset based lending— — 68 68 351,628 351,696 39 29 68 
Factoring— — — — 372,595 372,595 — 569 569 
Lease financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 1,379 1,628 5,557 474,197 479,754 1,628 — 1,628 
SBA/USDA— — — — 359,238 359,238 — 1,451 1,451 
Other commercial finance— — — — 159,409 159,409 — — — 
Commercial finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
Consumer finance3,322 2,609 2,793 8,724 160,935 169,659 2,793 — 2,793 
Tax services— — 8,873 8,873 225 9,098 8,873 — 8,873 
Warehouse finance— — — — 326,850 326,850 — — — 
Total loans and leases held for investment28,203 8,817 19,534 56,554 3,472,726 3,529,280 15,808 13,375 29,183 
Total loans and leases$28,203 $8,817 $19,534 $56,554 $3,493,797 $3,550,351 $15,808 $13,375 $29,183 

At September 30, 2021
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$— $— $— $— $56,194 $56,194 $— $— $— 
Term lending11,879 2,703 5,452 20,034 940,985 961,019 2,558 14,904 17,462 
Asset based lending— — — — 300,225 300,225 — — — 
Factoring— — — — 363,670 363,670 — 1,268 1,268 
Lease financing4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 
Insurance premium finance1,415 375 599 2,389 426,478 428,867 599 — 599 
SBA/USDA66 974 987 2,027 245,729 247,756 987 — 987 
Other commercial finance— — — — 157,908 157,908 — — — 
Commercial finance18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 
Consumer credit products713 527 511 1,751 127,500 129,251 511 — 511 
Other consumer finance963 285 725 1,973 121,633 123,606 725 — 725 
Consumer finance1,676 812 1,236 3,724 249,133 252,857 1,236 — 1,236 
Tax services— — 7,962 7,962 2,443 10,405 7,962 — 7,962 
Warehouse finance— — — — 419,926 419,926 — — — 
Community banking— — — — 199,132 199,132 — 14,915 14,915 
Total loans and leases held for investment19,945 8,200 24,637 52,782 3,555,033 3,607,815 21,687 34,245 55,932 
Total loans and leases$19,945 $8,200 $24,637 $52,782 $3,611,227 $3,664,009 $21,687 $34,245 $55,932 
Nonaccrual loans and leases by year of origination at September 30, 2022 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20222021202020192018Prior
Term lending$251 $1,110 $1,964 $989 $3,096 $166 $— $7,576 $2,885 
Asset based lending— — — — — — 29 29 — 
Factoring— — — — — — 569 569 550 
Lease financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 1,420 5,605 1,002 3,104 418 598 13,375 4,634 
Total nonaccrual loans and leases$1,228 $1,420 $5,605 $1,002 $3,104 $418 $598 $13,375 $4,634 

Nonaccrual loans and leases by year of origination at September 30, 2021 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20212020201920182017Prior
Term lending$131 $3,812 $10,072 $756 $133 $— $— $14,904 $12,103 
Asset based lending— — — — — — — — — 
Factoring— — — — — — 1,268 1,268 1,268 
Lease financing— 30 2,471 632 25 — — 3,158 541 
Commercial finance131 3,842 12,543 1,388 158 — 1,268 19,330 13,912 
Community banking— 242 — 14,673 — — — 14,915 — 
Total nonaccrual loans and leases$131 $4,084 $12,543 $16,061 $158 $— $1,268 $32,245 $13,912 

Loans and leases that are 90 days or more delinquent and accruing by year of origination at September 30, 2022 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
(Dollars in thousands)20222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808 
Loans and leases that are 90 days or more delinquent and accruing by year of origination at September 30, 2021 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
(Dollars in thousands)20212020201920182017Prior
Term lending$2,546 $— $12 $— $— $— $— $2,558 
Lease financing429 7,558 224 99 31 4 — 8,345 
Insurance premium finance468 131 — — — — — 599 
SBA/USDA— 987 — — — — — 987 
Commercial finance3,443 8,676 236 99 31 4 — 12,489 
Consumer credit products206 77 224 3 — — — 510 
Other consumer finance— — — — — 725 — 725 
Consumer finance206 77 224 3 — 725 — 1,235 
Tax services7,962 — — — — — — 7,962 
Total 90 days or more delinquent and accruing$11,611 $8,753 $460 $102 $31 $729 $— $21,686 

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 non-accrual until later delinquency, usually 120 days past due.

The following table provides the average recorded investment in nonaccrual loans and leases:

Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Term lending$11,320 $14,623 
Asset based lending3,754 444 
Factoring6,344 757 
Lease financing3,278 3,029 
SBA/USDA1,244 550 
Commercial finance25,940 19,403 
Community banking— 16,231 
Total loans and leases$25,940 $35,634 

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2022 and 2021 was not significant.

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $10.5 million of commercial finance loans and $0.9 million of consumer finance loans that were modified in a TDR during the fiscal year ended September 30, 2022, all of which were modified to extend the term of the loan. There were $5.9 million of commercial finance loans and $0.3 million of consumer finance loans that were modified in a TDR during the fiscal year ended September 30, 2021.

During the fiscal year ended September 30, 2022, the Company had $5.2 million of commercial finance loans and $1.1 million of consumer finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the fiscal year ended September 30, 2021, the Company had $3.4 million of commercial finance loans and $0.3 million of consumer finance loans that were modified in a TDR within the previous 12 months and for which there was a payment default. TDR net charge-offs and the impact of TDRs on the Company's allowance for credit losses were insignificant during the fiscal years ended September 30, 2022 and September 30, 2021.
v3.22.2.2
EARNINGS PER COMMON SHARE ("EPS")
 12 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE ("EPS") EARNINGS PER COMMON SHARE ("EPS")
 
The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation under the two-class method. Basic EPS is computed using the two-class method by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated using the more dilutive of the treasury stock method or the two-class method. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options, performance share units, and nonvested restricted stock, where applicable. Diluted EPS under the two-class method also considers the allocation of earnings to the participating securities. Antidilutive securities are disregarded in earnings per share calculations. Diluted EPS shown below reflects the two-class method, as diluted EPS under the two-class method was more dilutive than under the treasury stock method.
 
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.
Fiscal Year Ended September 30,
(Dollars in thousands, except per share data)202220212020
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$156,386 $141,708 $104,720 
Dividends and undistributed earnings allocated to participating securities(2,565)(2,698)(2,414)
Basic net earnings available to common stockholders153,821 139,010 102,306 
Undistributed earnings allocated to nonvested restricted stockholders2,468 2,575 2,249 
Reallocation of undistributed earnings to nonvested restricted stockholders(2,468)(2,573)(2,249)
Diluted net earnings available to common stockholders$153,821 $139,012 $102,306 
Total weighted-average basic common shares outstanding29,227,071 31,729,596 34,829,971 
Effect of dilutive securities(1)
Stock options— — — 
Performance share units5,176 21,926 — 
Total effect of dilutive securities5,176 21,926 — 
Total weighted-average diluted common shares outstanding29,232,247 31,751,522 34,829,971 
Net earnings per common share:
Basic earnings per common share$5.26 $4.38 $2.94 
Diluted earnings per common share(2)
$5.26 $4.38 $2.94 
(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 fiscal years ended September 30, 2022, 2021, and 2020, respectively, were 487,476, 615,811, and 821,738 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.22.2.2
PREMISES, FURNITURE, AND EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
PREMISES, FURNITURE, AND EQUIPMENT, NET PREMISES, FURNITURE, AND EQUIPMENT, NET
 
Premises, furniture, and equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Land$1,354 $1,354 
Buildings21,300 21,196 
Furniture, fixtures, and equipment56,631 76,662 
79,285 99,212 
Less: accumulated depreciation and amortization(37,575)(54,324)
Net book value$41,710 $44,888 

Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $11.3 million, $9.6 million and $9.2 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.
RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Computers and IT networking equipment$21,669 $17,683 
Motor vehicles and other107,648 87,396 
Other furniture and equipment34,254 48,828 
Solar panels and equipment133,765 125,457 
Total297,336 279,364 
Accumulated depreciation(94,355)(67,825)
Unamortized initial direct costs1,390 1,577 
Net book value$204,371 $213,116 

Future minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows:
(Dollars in thousands)
2023$39,286 
202430,807 
202523,158 
202614,651 
20278,454 
Thereafter9,704 
Total $126,060 
v3.22.2.2
RENTAL EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
RENTAL EQUIPMENT, NET PREMISES, FURNITURE, AND EQUIPMENT, NET
 
Premises, furniture, and equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Land$1,354 $1,354 
Buildings21,300 21,196 
Furniture, fixtures, and equipment56,631 76,662 
79,285 99,212 
Less: accumulated depreciation and amortization(37,575)(54,324)
Net book value$41,710 $44,888 

Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $11.3 million, $9.6 million and $9.2 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.
RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Computers and IT networking equipment$21,669 $17,683 
Motor vehicles and other107,648 87,396 
Other furniture and equipment34,254 48,828 
Solar panels and equipment133,765 125,457 
Total297,336 279,364 
Accumulated depreciation(94,355)(67,825)
Unamortized initial direct costs1,390 1,577 
Net book value$204,371 $213,116 

Future minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows:
(Dollars in thousands)
2023$39,286 
202430,807 
202523,158 
202614,651 
20278,454 
Thereafter9,704 
Total $126,060 
v3.22.2.2
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2022
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 September 30, 2022. The recorded goodwill is a result of multiple business combinations that occurred from 2015 to 2018. The Company did not enter into any business combinations in the fiscal year ended September 30, 2022. There have been no changes to the carrying amount of goodwill during the fiscal years ended September 30, 2022 and 2021.
The changes in the carrying amount of the Company's intangible assets were as follows:
(Dollars in thousands)
Trademark(1)
Non-Compete
Customer Relationships(2)
All Others(3)
Total
Intangible Assets
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Acquisitions during the period— — — 1 1 
Amortization during the period(1,218)(40)(4,803)(524)(6,585)
Write-offs during the period— — (670)(203)(873)
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,019)(2,481)(58,775)(5,031)(72,306)
Accumulated impairment— — (10,918)(218)(11,136)
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
At September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
Acquisitions during the period— — — 24 24 
Amortization during the period(1,078)(382)(6,465)(620)(8,545)
Write-offs during the period— — — (23)(23)
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Gross carrying amount$14,624 $2,481 $82,088 $10,142 $109,335 
Accumulated amortization(4,801)(2,441)(53,972)(4,507)(65,721)
Accumulated impairment— — (10,248)(218)(10,466)
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
(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 subsequent fiscal years at September 30, 2022 was as follows:
(Dollars in thousands)
2023$4,937 
20244,123 
20253,561 
20263,215 
20272,569 
Thereafter7,286 
Total anticipated intangible amortization$25,691 

There was a $0.7 million impairment to intangible assets for the fiscal year ended September 30, 2022 and no impairment for the fiscal year ended September 30, 2021. Intangible impairment expense is recorded within the impairment expense line of the Consolidated Statements of Operations.
v3.22.2.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 12 Months Ended
Sep. 30, 2022
Leases [Abstract]  
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
Operating lease ROU assets, included in other assets, were $30.1 million and $34.4 million at September 30, 2022 and 2021, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $32.1 million and $36.5 million at September 30, 2022 and 2021, respectively.
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at September 30, 2022 were as follows:
(Dollars in thousands)
2023$3,946 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 36,503 
Discount(4,448)
Total operating lease liabilities$32,055 

The weighted-average discount rate and remaining lease term for operating leases at September 30, 2022 were as follows:
Weighted-average discount rate2.35 %
Weighted-average remaining lease term (years)10.41

The components of total lease costs for operating leases were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Lease expense$4,431 $4,310 
Short-term and variable lease cost194 193 
ROU asset impairment670 224 
Sublease income(1,267)(591)
Total lease cost for operating leases$4,028 $4,136 
v3.22.2.2
TIME CERTIFICATES OF DEPOSIT
 12 Months Ended
Sep. 30, 2022
Deposits [Abstract]  
TIME CERTIFICATES OF DEPOSIT TIME CERTIFICATES OF DEPOSIT
 
Time certificates of deposit in denominations of $250,000 or more were approximately $6.2 million and $24.9 million at September 30, 2022, and 2021, respectively.
 
Scheduled maturities of time certificates of deposit at September 30, 2022 were as follows for the fiscal years ending:
(Dollars in thousands)
2023$5,947 
20241,807 
2025— 
2026— 
2027— 
Thereafter— 
Total(1)
$7,754 
(1) As of September 30, 2022, the Company had $0.1 million of certificates of deposit which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition.

Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are insured up to $250,000 by the DIF under management of the FDIC.
v3.22.2.2
SHORT-TERM AND LONG-TERM BORROWINGS
 12 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
SHORT-TERM AND LONG-TERM BORROWINGS SHORT-TERM AND LONG-TERM BORROWINGS
Short-Term Borrowings
The Company had no short-term borrowing at September 30, 2022 and 2021.
 
The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in real estate and securities collateral. The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB. Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement.
 
At September 30, 2022 and 2021, the Bank pledged securities with fair values of approximately $804.0 million and $644.7 million, respectively, to be used against FHLB advances as needed. In addition, no qualifying real estate loans were pledged as collateral at September 30, 2022 and 2021.

The Company had no securities sold under agreements to repurchase at September 30, 2022 and 2021.
At September 30, 2022 and 2021, the Company did not have any securities pledged as collateral for securities sold under agreements to repurchase.

Long-Term Borrowings
At September 30,
(Dollars in thousands)20222021
Trust preferred securities13,661 13,661 
Subordinated debentures, net of issuance costs20,000 73,980 
Other long-term borrowings(1)
2,367 5,193 
Total$36,028 $92,834 
(1) Includes $2.4 million and $5.1 million of discounted leases and none and $0.1 million of finance lease obligations at September 30, 2022 and 2021, respectively.

Scheduled maturities of the Company's long-term borrowings at September 30, 2022 were as follows for the fiscal years ending:
(Dollars in thousands)Trust preferred securitiesSubordinated debenturesOther long-term borrowingsTotal
2023$— $— $603 $603 
2024— — 1,764 1,764 
2025— — — — 
2026— — — — 
2027— — — — 
Thereafter13,661 20,000 — 33,661 
Total long-term borrowings$13,661 $20,000 $2,367 $36,028 

Certain trust preferred securities are due to First Midwest Financial Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The securities bear the same interest rate and terms as the trust preferred securities. The securities are included on the Consolidated Statements of Financial Condition as liabilities.
 
The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of LIBOR plus 3.75% (7.98% at September 30, 2022, and 3.93% at September 30, 2021), not to exceed 12.5%. The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions are required to be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date. The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption.
 
Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock.
 
Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations.

Through the Crestmark Acquisition, the Company acquired $3.4 million in floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The subordinated debentures bear interest at LIBOR plus 3.00%, have a stated maturity of 30 years and are redeemable by the Company at par, with regulatory approval. The interest rate is reset quarterly at distribution dates in February, May, August, and November. The interest rate as of September 30, 2022 was 6.75%. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years.
The Company redeemed its $75.0 million of 5.75% fixed-to-floating rate subordinated debentures on May 15, 2022 with payment of $75.0 million principal and approximately $1.0 million interest. On September 23, 2022, the Company completed a private placement of $20.0 million of its 6.625% fixed-to-floating rate subordinated debentures due 2032 to certain qualified institutional buyers and accredited investors. These notes will mature on September 30, 2032, unless earlier redeemed. Beginning on September 30, 2027, the notes may be redeemed, in whole or in part, at the Company's option subject to regulatory approval, on any scheduled interest payment date. Prior to September 30, 2027, the notes may be redeemed, in whole but not in part, at any time upon certain other specified events. At September 30, 2022, the Company had $20.0 million in aggregate principal amount in subordinated debentures remains outstanding.
v3.22.2.2
STOCKHOLDERS' EQUITY
 12 Months Ended
Sep. 30, 2022
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Repurchase of Common Stock
The Company's Board of Directors authorized the November 20, 2019 share repurchase program to repurchase up to 7,500,000 shares of the Company's outstanding common stock. This authorization is effective from November 21, 2019 through December 31, 2022. All remaining shares available for repurchase under this program were repurchased during the fiscal 2022 first quarter. On September 7, 2021, the Company's Board of Directors announced a share repurchase program to repurchase up to an additional 6,000,000 shares of the Company's outstanding common stock. This authorization is effective from September 3, 2021 through September 30, 2024. During the fiscal years ended September 30, 2022 and 2021, the Company repurchased 3,020,899 and 2,833,755 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 September 30, 2022, 4,294,977 shares of common stock remained available for repurchase.
For the fiscal years ended September 30, 2022, and 2021, the Company also repurchased 73,522 and 101,481 shares, or $4.0 million and $2.9 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.
Repurchase of Treasury Stock
The Company accounts for the retirement of repurchased shares, including treasury stock, using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. The Company retired zero and 203,224 shares of common stock held in treasury during the fiscal years ended September 30, 2022 and 2021, respectively.
v3.22.2.2
STOCK COMPENSATION
 12 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
 
The Company maintains the Pathward Financial, Inc. 2002 Omnibus Incentive Plan, as amended and restated (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options, nonvested (restricted) shares, and performance share units ("PSUs") to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model. The exercise price of stock options equals the fair market value of the underlying stock at the date of grant. Options are issued for a period of 10 years with 100% vesting generally occurring either at grant date or over a period of four years. There were no options granted during the fiscal years ended September 30, 2022, 2021 or 2020. The intrinsic value of options exercised during the fiscal years ended September 30, 2022, 2021 and 2020 were zero, zero and $1.0 million, respectively.

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 four 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 vest immediately. The total fair value of director’s shares granted during the fiscal years ended September 30, 2022, 2021 and 2020 was $0.0 million, $1.0 million and $0.8 million, respectively.

Under its 2002 Omnibus Incentive Plan, 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 while unearned. 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 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 to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan. No new options were, or could have been, awarded under the 1995 plan during the fiscal years ended September 30, 2022, 2021 or 2020. Furthermore, no options were outstanding during the year.

In addition, during the first and second quarters of fiscal 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 options and 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 option and incentive plans during the fiscal year ended September 30, 2022 and 2021.

There was no activity of options during the fiscal years ended September 30, 2022 and 2021 and zero were outstanding or exercisable at September 30, 2022 and 2021.
(Dollars in thousands, except per share data)Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2021547,063 $30.22 
Granted178,631 55.56 
Vested(230,323)35.70 
Forfeited or expired(21,023)43.45 
Nonvested shares outstanding, September 30, 2022474,348 $36.52 
Nonvested shares outstanding, September 30, 2020790,083 $30.03 
Granted190,187 30.88 
Vested(329,409)30.32 
Forfeited or expired(103,798)29.66 
Nonvested shares outstanding, September 30, 2021547,063 $30.22 

(Dollars in thousands, except per share data)Number of UnitsWeighted Average Fair Value at Grant
Performance share units outstanding, September 30, 202160,984 $34.03 
Granted(1)
35,705 57.20 
Vested— — 
Forfeited or expired— — 
Performance share units outstanding, September 30, 202296,689 $42.59 
(1) The number of PSUs granted reflects the target number of PSUs able to be earned under a given award.

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

The following table shows the effect to income, net of tax benefits, of share-based compensation expense recorded:

Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Total employee stock-based compensation expense recognized in income, net of tax effects of $2,181, $1,562, and $2,567, respectively
$7,824 $5,290 $7,656 

As of September 30, 2022, stock-based compensation expense not yet recognized in income totaled $6.5 million, which is expected to be recognized over a weighted-average remaining period of 1.48 years.
v3.22.2.2
INCOME TAXES
 12 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Federal:
Current$5,657 $6,402 $3,148 
Deferred12,900 (3,909)(4,505)
18,557 2,493 (1,357)
State:   
Current4,720 5,938 4,860 
Deferred4,687 2,270 2,158 
9,407 8,208 7,018 
Income tax expense (benefit)$27,964 $10,701 $5,661 

The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities were:
At September 30,
(Dollars in thousands)20222021
Deferred tax assets:
Bad debts$10,636 $15,946 
Deferred compensation2,652 3,733 
Stock based compensation3,521 3,314 
Valuation adjustments3,047 4,111 
General business credits(1)
52,684 49,196 
Accrued expenses1,948 2,780 
Lease liability8,074 9,206 
Net unrealized losses on securities available for sale71,336 — 
Other assets2,662 4,253 
 156,560 92,539 
Deferred tax liabilities:  
Premises and equipment(3,148)(3,328)
Intangibles(4,099)(3,032)
Net unrealized gains on securities available for sale— (2,471)
Leased assets(58,592)(46,355)
Right-of-use assets(7,758)(8,877)
Other liabilities(1,170)(3,303)
(74,767)(67,366)
Net deferred tax assets$81,793 $25,173 
(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2022 and 2021. These credits expire on September 30, 2042 and 2041, respectively.

As of September 30, 2022, the Company had a gross deferred tax asset of $2.9 million for separate company state cumulative net operating loss carryforwards, for which $2.9 million was reserved. At September 30, 2021, the Company had a gross deferred tax asset of $2.7 million for separate company state cumulative net operating loss carryforwards, for which $2.7 million was reserved. These state operating loss carryforwards will expire in various subsequent periods.
In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2022, or 2021 with the exception of the state cumulative net operating loss carryforwards discussed above.

The table below reconciles the statutory federal income tax expense and rate to the effective income tax expense and rate for the fiscal years presented. The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Fiscal Year Ended September 30,
202220212020
(Dollars in thousands)AmountRateAmountRateAmountRate
Statutory federal income tax expense and rate$38,714 21.0 %$32,854 21.0 %$24,151 21.0 %
Change in tax rate resulting from:
State income taxes net of federal benefits7,413 4.0 %6,452 4.1 %5,444 4.7 %
162(m) disallowance1,125 0.4 %686 0.4 %1,129 1.0 %
Tax exempt income(743)(0.4)%(835)(0.5)%(1,212)(1.0)%
General business credits(17,589)(9.5)%(26,945)(17.2)%(22,284)(19.4)%
Other, net(956)(0.3)%(1,511)(1.0)%(1,567)(1.4)%
Income tax expense$27,964 15.2 %$10,701 6.8 %$5,661 4.9 %

The Company uses the flow through method of accounting for investment tax credits under which the credits are recognized as a reduction to income tax expense in the period in which the credit arises. During the fiscal years ended September 30, 2022, 2021, and 2020, $16.8 million, $26.5 million, and $20.5 million in investment tax credits were recognized as a reduction to income tax expense, respectively.

The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the Consolidated Financial Statements and the final resolution of a tax issue during the period.

The tax years ended September 30, 2019 and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended September 30, 2019 and later remain open for examination, with few exceptions.
 
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows:
 
At September 30,
(Dollars in thousands)20222021
Balance at beginning of fiscal year$777 $1,091 
Additions (reductions) for tax positions related to prior years(132)(314)
Balance at end of fiscal year$645 $777 

The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $699,000 as of September 30, 2022. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was $145,000 as of September 30, 2022. The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months.
v3.22.2.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2022
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
As U.S. banking organizations, the Company and the Bank are required to comply with the regulatory capital rules adopted by the Federal Reserve and the OCC (the "Capital Rules") that became effective on January 1, 2015, subject to phase-in periods for certain requirements and other provisions of the Capital Rules. Under the Capital Rules and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

The Capital Rules require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2022, the Company and the Bank exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements. The Company and the Bank made the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. 

The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.
 CompanyBankMinimum
to be Adequately Capitalized Under Prompt Corrective Action Provisions		Minimum to be Well Capitalized Under Prompt Corrective Action Provisions
At September 30, 2022
Tier 1 leverage capital ratio8.10 %8.19 %4.00 %5.00 %
Common equity Tier 1 capital ratio12.07 12.55 4.50 6.50 
Tier 1 capital ratio12.39 12.55 6.00 8.00 
Total capital ratio13.88 13.57 8.00 10.00 
At September 30, 2021    
Tier 1 leverage capital ratio7.67 %8.69 %4.00 %5.00 %
Common equity Tier 1 capital ratio12.12 14.11 4.50 6.50 
Tier 1 capital ratio12.46 14.13 6.00 8.00 
Total capital ratio15.45 15.38 8.00 10.00 
The following table provides a reconciliation of the amounts included in the table above for the Company.
(Dollars in thousands)
Standardized Approach(1)
September 30, 2022
Total stockholders' equity$645,140 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities299,186 
LESS: Certain other intangible assets26,406 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards17,968 
LESS: Net unrealized gains (losses) on available for sale securities(211,600)
LESS: Noncontrolling interest(30)
ADD: Adoption of Accounting Standards Update 2016-132,689 
Common Equity Tier 1(1)
515,899 
Long-term borrowings and other instruments qualifying as Tier 113,661 
Tier 1 minority interest not included in common equity Tier 1 capital(20)
Total Tier 1 capital529,540 
Allowance for credit losses43,623 
Subordinated debentures, net of issuance costs20,000 
Total capital$593,163 
(1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.

The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to total stockholders' equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.
(Dollars in thousands)At September 30, 2022
Total stockholders' equity$645,140 
LESS: Goodwill309,505 
LESS: Intangible assets25,691 
Tangible common equity309,944 
LESS: AOCI(213,080)
Tangible common equity excluding AOCI$523,024 

Since January 1, 2016, the Company and the Bank have been required to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. The required Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios with the buffer are currently 7.0%, 8.5% and 10.5%, respectively.

Based on current and expected continued profitability and subject to continued access to capital markets, we believe that the Company and the Bank will continue to meet the capital conservation buffer of 2.5% in addition to required minimum capital ratios.
v3.22.2.2
REVENUE FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERSTopic 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 17. Segment Reporting to the Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Fiscal Year Ended September 30,20222021202220212022202120222021
Net interest income(1)
$98,366 $91,489 $187,209 $173,969 $21,749 $13,533 $307,324 $278,991 
Noninterest income:
Refund transfer product fees39,809 37,967 — — — — 39,809 37,967 
Refund advance fee income(1)
40,557 47,639 — — — — 40,557 47,639 
Payment card and deposit fees104,684 107,182 — — — — 104,684 107,182 
Other bank and deposit fees— — 1,020 917 29 22 1,049 939 
Rental income(1)
— 18 46,023 39,398 535 — 46,558 39,416 
Gain (loss) on sale of securities(1)
— — — — (1,287)6 (1,287)6 
Gain on trademarks(1)
— — — — 50,000 — 50,000 — 
Gain (loss) on sale of other(1)
— — 8,782 12,622 (13,702)(1,107)(4,920)11,515 
Other income(1)
4,202 2,902 12,587 8,876 568 14,462 17,357 26,240 
Total noninterest income189,252 195,708 68,412 61,813 36,143 13,383 293,807 270,904 
Revenue$287,618 $287,197 $255,621 $235,782 $57,892 $26,916 $601,131 $549,895 
(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.

Refund Transfer Product Fees. Refund transfer fees are specific to the Tax Services division 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 is 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 Fees. Card fees relate to Payments and Tax Services divisions 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 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.

Bank and Deposit Fees. Bank and deposit fees relate to Payments and Commercial Finance divisions 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 point in time when such event occurs. For Payments, 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 Payments and Commercial Finance divisions are included in the Consumer and Commercial reporting segments, respectively.
v3.22.2.2
SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.
The Company reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The BaaS business line is reported in the Consumer segment. The Commercial Finance business line is reported in the Commercial segment. The Corporate Services/Other segment includes certain shared services as well as treasury related functions such as the investment portfolio, warehouse finance, wholesale deposits and borrowings.

The following tables present segment data for the Company:
Fiscal Year Ended September 30, 2022
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$98,366 $187,209 $21,749 $307,324 
Provision (reversal of) for credit losses30,680 14,674 (16,816)28,538 
Noninterest income189,252 68,412 36,143 293,807 
Noninterest expense99,589 128,904 156,782 385,275 
Income (loss) before income tax expense157,349 112,043 (82,074)187,318 
Total assets356,994 3,487,461 2,902,955 6,747,410 
Total goodwill87,145 222,360 — 309,505 
Total deposits5,695,776 8,965 161,296 5,866,037 

Fiscal Year Ended September 30, 2021
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$91,489 $173,969 $13,533 $278,991 
Provision (reversal of) for credit losses35,765 19,791 (5,790)49,766 
Noninterest income195,708 61,813 13,383 270,904 
Noninterest expense90,792 114,925 137,966 343,683 
Income (loss) before income tax expense160,640 101,066 (105,260)156,446 
Total assets354,441 3,208,889 3,127,320 6,690,650 
Total goodwill87,145 222,360 — 309,505 
Total deposits5,342,192 6,625 166,154 5,514,971 
Fiscal Year Ended September 30, 2020
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$92,362 $151,649 $15,027 $259,038 
Provision for loan and lease losses21,807 29,296 13,673 64,776 
Noninterest income158,284 60,151 21,359 239,794 
Noninterest expense76,533 107,790 134,728 319,051 
Income (loss) before income tax expense152,306 74,714 (112,015)115,005 
Total assets276,998 2,854,088 2,960,988 6,092,074 
Total goodwill87,145 222,360 — 309,505 
Total deposits4,555,999 6,226 416,975 4,979,200 
v3.22.2.2
PARENT COMPANY FINANCIAL STATEMENTS
 12 Months Ended
Sep. 30, 2022
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS
 
Presented below are the condensed financial statements for the parent company, Pathward Financial.
 
Condensed Statements of Financial Condition
(Dollars in thousands)September 30, 2022September 30, 2021
ASSETS
Cash and cash equivalents$13,117 $3,296 
Investment securities held to maturity, at cost8,003 4,623 
Investment in subsidiaries665,172 956,584 
Other assets928 278 
Total assets$687,220 $964,781 
LIABILITIES AND STOCKHOLDERS' EQUITY  
LIABILITIES  
Subordinated debentures$33,661 $87,641 
Other liabilities8,419 5,256 
Total liabilities42,080 92,897 
STOCKHOLDERS' EQUITY  
Common stock288 317 
Additional paid-in capital617,403 604,484 
Retained earnings245,394 259,189 
Accumulated other comprehensive income (loss)(213,080)7,599 
Treasury stock, at cost(4,835)(860)
Total equity attributable to parent645,170 870,729 
Non-controlling interest(30)1,155 
Total stockholders' equity645,140 871,884 
Total liabilities and stockholders' equity$687,220 $964,781 
Condensed Statements of Operations
Fiscal Years Ended September 30,
(Dollars in thousands)202220212020
Interest expense$3,982 $4,915 $5,168 
Other expense1,062 1,287 1,256 
Total expense5,044 6,202 6,424 
Loss before income taxes and equity in undistributed net income of subsidiaries(5,044)(6,202)(6,424)
Income tax benefit(1,029)395 (3,638)
Loss before equity in undistributed net income of subsidiaries(4,015)(6,597)(2,786)
Equity in undistributed net income of subsidiaries159,652 147,895 107,476 
Other Income749 410 30 
Total Income160,401 148,305 107,506 
Net income attributable to parent$156,386 $141,708 $104,720 
 
Condensed Statements of Cash Flows
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Cash flows from operating activities:
Net income attributable to parent$156,386 $141,708 $104,720 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net 1,020 173 163 
Equity in undistributed net income of subsidiaries(159,652)(147,895)(107,476)
Net change in accrued interest receivable(15)— — 
Net change in other assets(636)3,030 (3,149)
Net change in accrued expenses and other liabilities3,163 (2,698)(2,660)
Cash dividend received229,200 104,000 118,000 
Stock compensation10,004 6,852 10,221 
Net cash provided by operating activities239,470 105,170 119,819 
Cash flows from investing activities:
Alternative investments(3,380)(3,415)(797)
Net cash (used in) investing activities(3,380)(3,415)(797)
Cash flows from financing activities:
Redemption of long-term borrowings(75,000)— — 
Proceeds from long-term borrowings20,000 — — 
Dividends paid on common stock(5,921)(6,400)(7,100)
Issuance of common stock due to exercise of stock options— — 266 
Issuance of common stock due to restricted stock1 — 2 
Issuance of common stock due to ESOP2,886 3,036 3,220 
Repurchases of common stock(168,235)(99,878)(118,738)
Net cash (used in) financing activities(226,269)(103,242)(122,350)
Net change in cash and cash equivalents9,821 (1,487)(3,328)
Cash and cash equivalents at beginning of fiscal year3,296 4,783 8,111 
Cash and cash equivalents at end of fiscal year$13,117 $3,296 $4,783 

The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company. For further discussion, see Note 15 herein.
v3.22.2.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Sep. 30, 2022
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 Quarter Ended
(Dollars in thousands, except per share data)December 31March 31June 30September 30
Fiscal Year 2022
Interest and dividend income$72,891 $85,177 $73,906 $80,222 
Interest expense1,278 1,377 1,755 462 
Net interest income71,613 83,800 72,151 79,760 
Provision (reversal of) for credit losses186 32,302 (1,302)(2,648)
Noninterest income86,591 109,766 53,994 43,456 
Net income attributable to parent61,324 49,251 22,391 23,420 
Earnings per common share    
Basic$2.00 $1.66 $0.76 $0.81 
Diluted2.00 1.66 0.76 0.81 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2021    
Interest and dividend income$68,146 $75,669 $69,983 $72,056 
Interest expense2,147 1,819 1,508 1,389 
Net interest income65,999 73,850 68,475 70,667 
Provision for loan and lease losses6,089 30,290 4,612 8,775 
Noninterest income45,455 113,453 62,453 49,542 
Net income attributable to parent28,037 59,066 38,701 15,903 
Earnings per common share    
Basic$0.84 $1.84 $1.21 $0.50 
Diluted0.84 1.84 1.21 0.50 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2020    
Interest and dividend income$77,625 $79,403 $67,406 $68,407 
Interest expense12,974 11,666 5,269 3,894 
Net interest income64,651 67,737 62,137 64,513 
Provision for loan and lease losses3,407 37,296 15,093 8,980 
Noninterest income37,483 120,513 41,048 40,750 
Net income attributable to parent21,068 52,304 18,190 13,158 
Earnings per common share    
Basic$0.56 $1.45 $0.53 $0.38 
Diluted0.56 1.45 0.53 0.38 
Dividend declared per share0.05 0.05 0.05 0.05 
v3.22.2.2
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUES 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. 
 
There were no transfers between levels of the fair value hierarchy for the fiscal years ended September 30, 2022 or 2021.
 
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 values 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 table summarizes the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 Fair Value At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
Corporate securities$97,768 $— $97,768 — 
SBA securities2,344 — 2,344 — 
Obligations of states and political subdivisions263,783 — 263,783 — 
Non-bank qualified obligations of states and political subdivisions147,790 — 147,790 — 
Asset-backed securities1,348,997 — 1,348,997 — 
Mortgage-backed securities22,187 — 22,187 — 
Total debt securities AFS$1,882,869 $— $1,882,869 $— 
Common equities and mutual funds(1)
$2,874 $2,874 $— $— 
Non-marketable equity securities(2)
$7,212 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2022.
(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.
 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
Corporate securities$25,000 $— $25,000 $— 
SBA securities157,209 — 157,209 — 
Obligations of states and political subdivisions2,507 — 2,507 — 
Non-bank qualified obligations of states and political subdivisions268,295 — 268,295 — 
Asset-backed securities394,859 — 394,859 — 
Mortgage-backed securities1,017,029 — 1,017,029 — 
Total debt securities AFS$1,864,899 $— $1,864,899 $— 
Common equities and mutual funds(1)
$12,668 $12,668 $— $— 
Non-marketable equity securities(2)
$4,560 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2021.
(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 underlying collateral, the Company measures fair value on a nonrecurring bases. 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 4% to 35%.
 
The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis:
 Fair Value At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss
Commercial finance$1,575 $— $— $1,575 
    Total loans and leases, net individually evaluated
    for credit loss		1,575 — — 1,575 
Foreclosed assets, net1 — — 1 
Total$1,576 $— $— $1,576 

 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$3,404 $— $— $3,404 
Community banking9,371 — — 9,371 
    Total impaired loans and leases, net12,775 — — 12,775 
Foreclosed assets, net2,077 — — 2,077 
Total$14,852 $— $— $14,852 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)Fair Value at September 30, 2022Fair Value at September 30, 2021Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$1,575 12,775 Market approach
Appraised values(1)
15% - 59%
Foreclosed assets, net$1 2,077 Market approach
Appraised values(1)
9% - 20%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs and other inputs in a range of 15% to 59%.

Management discloses the estimated fair value amounts of its financial instruments, including assets and liabilities on and off the Consolidated Statements of Financial Condition, for which it is practicable to estimate fair value. These fair values estimates were made at September 30, 2022 and 2021 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 September 30, 2022
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$388,038 $388,038 $388,038 $— $— 
Debt securities available for sale1,882,869 1,882,869 — 1,882,869 — 
Debt securities held to maturity41,682 38,171 — 38,171 — 
Common equities and mutual funds(1)
2,874 2,874 2,874 — — 
Non-marketable equity securities(1)(2)
22,526 22,526 — 15,314 — 
Loans held for sale21,071 21,071 — 21,071 — 
Loans and leases3,529,280 3,525,803 — — 3,525,803 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable17,979 17,979 17,979 — — 
Financial liabilities
Deposits5,866,037 5,865,854 5,858,283 7,571 — 
Other short- and long-term borrowings36,028 35,986 — 35,986 — 
Accrued interest payable192 192 192 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2022.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2021
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$314,019 $314,019 $314,019 $— $— 
Debt securities available for sale1,864,899 1,864,899 — 1,864,899 — 
Debt securities held to maturity56,669 56,391 — 56,391 — 
Common equities and mutual funds(1)
12,668 12,668 12,668 — — 
Non-marketable equity securities(1)(2)
17,509 17,509 — 12,949 — 
Loans held for sale56,194 56,194 — 56,194 — 
Loans and leases3,607,815 3,616,646 — — 3,616,646 
Federal Reserve Bank and Federal Home Loan Bank stocks28,400 28,400 — 28,400 — 
Accrued interest receivable16,254 16,254 16,254 — — 
Financial liabilities
Deposits5,514,971 5,515,035 5,482,471 32,564 — 
Other short- and long-term borrowings92,834 93,938 — 93,938 — 
Accrued interest payable579 579 579 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2021.
(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.

The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2022 and 2021.
 
CASH AND CASH EQUIVALENTS
The carrying amount of cash and short-term investments is assumed to approximate the fair value.
 
DEBT SECURITIES AVAILABLE FOR SALE AND EQUITY SECURITIES
Fair values for debt securities available for sale are based on quoted prices of similar securities on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for marketable equity securities are based on unadjusted quoted prices from active markets in which the security is traded. Non-marketable equity securities are measured at fair value using NAV per share (or its equivalent) as a practical expedient.

LOANS HELD FOR SALE
Loans held for sale are carried at the lower of amortized cost or fair value, where fair value reflects the amount a willing market participant would pay for the loan. The Company classifies SBA/USDA loans held for sale as Level 2 in the fair value hierarchy as there is an active secondary market in which these loans are exchanged. Consumer loans held for sale are classified as Level 3 in the fair value hierarchy as the price at which these loans are sold are dictated by terms of the Program Agreements with consumer lending partners.

LOANS AND LEASES, NET
The fair values of loans and leases were estimated using an exit price methodology. The exit price estimation of fair value is based on the present value of expected cash flows, which are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk.

FEDERAL RESERVE BANK AND FEDERAL HOME LOAN BANK STOCKS
The fair value of FRB and FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
With the exception of time certificate deposits and wholesale deposits, the carrying values of deposits are assumed to approximate fair value since deposits are immediately withdrawable without penalty. The fair value of time certificate deposits and wholesale certificate of deposits are estimated using a discounted cash flows calculation that applies the FHLB Des Moines curve to aggregated expected maturities of time deposits.
 
FEDERAL HOME LOAN BANK ADVANCES
The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.
 
SUBORDINATED DEBENTURES AND OTHER BORROWINGS
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 
LIMITATIONS
Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, 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.
v3.22.2.2
SUBSEQUENT EVENTS
 12 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Management has evaluated subsequent events that occurred after September 30, 2022. During this period, up to the filing date of this Annual Report on Form 10-K, management identified the following subsequent events:

•On October 27, 2022, the Company announced that Sonja Theisen, currently Executive Vice President of Governance, Risk and Compliance, was appointed to succeed Glen Herrick as the Chief Financial Officer effective April 30, 2023. Ms.Theisen, who joined Pathward in 2013, has held leaderships roles across the organization including Chief Accounting Officer, Chief of Staff, and EVP of Governance, Risk and Compliance.
•On October 4, 2022, the Company launched its new brand identity and website as part of its rebranding efforts and overall transition to Pathward Financial, Inc.
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION PRINCIPLES OF CONSOLIDATIONThe Consolidated Financial Statements include the accounts of Pathward Financial, Inc.® ("Pathward Financial" or the “Company” or "us"), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include PathwardTM, National Association ("Pathward, N.A." or "Pathward" or "the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Pathward Venture Capital, LLC, a wholly-owned service corporation subsidiary of Pathward, N.A. which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATIONOne of the Company's primary sources of revenue relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans, and warehouse finance loans. The Company accepts deposits from customers in the normal course of business on a national basis through its Payments and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTSThe preparation of Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the valuation of residual values within lease receivables, allowance for credit losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was zero at September 30, 2022, and zero at September 30, 2021. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2022, the Company had $1.3 million interest-bearing deposits held at the FHLB and $294.4 million in interest-bearing deposits held at the FRB. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS debt securities are carried at fair value on the Consolidated Statements of Financial Condition. Unrealized holding gains and losses due to risk of credit loss are recognized in earnings while unrealized holding gains and losses due to market conditions and other non-credit risk factors are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). See Note 20. Fair Values of Financial Instruments for additional information on fair value of AFS debt securities. HTM debt securities are measured at amortized cost. The Company classifies the majority of its debt securities as AFS, which are those the Company may decide to sell if needed for liquidity, asset/liability management, or other reasons. Both AFS and HTM are subject to an allowance for credit loss. Pathward Financial did not hold trading securities at September 30, 2022 or 2021.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount using the level yield method, is included in income as earned. For callable debt securities, any purchase premium is amortized to the first call date while any discount is accreted over the contractual life of the security.

Debt Securities Credit Losses
The Company evaluates HTM debt securities for credit losses on a quarterly basis and records any such losses as a component of provision for credit losses in the Consolidated Statements of Operations. The Company has concluded that its portfolio as of September 30, 2022 has a zero risk of credit loss due to the U.S. Government financial guarantees underlying the securities within the HTM portfolio and as a result has not recorded an allowance for credit loss.

The Company evaluates AFS debt securities for credit losses on a quarterly basis and records any such losses as a component of provision for credit losses in the Consolidated Statements of Operations. The Company has concluded that any unrealized holding losses in its portfolio as of September 30, 2022 are not related to credit loss and as a result has not recorded an allowance for credit loss. See Note 3. Securities for further information.

Equity Investments
The Company holds marketable equity securities, which have readily determinable fair value, and include common equity and mutual funds. These securities are recorded at fair value with unrealized gains and losses, due to changes in fair value, reflected in earnings. Interest and dividend income from these securities is recognized in interest income. See Note 3. Securities for additional information on marketable equity securities.

The Company also holds non-marketable equity investments that are included in Other Assets in the Company’s Consolidated Financial Statements. The Company generally accounts for these investments under the equity method or the provisions of Accounting Standards Codification ("ASC") 321. Equity Securities. Investments where the Company has significant influence, but not control, over the investee are accounted for under the equity method. Investments where the Company cannot exercise significant influence over the investee are measured at fair value, with changes in fair value recognized in earnings, unless those investments have no readily determinable fair value. Investments without readily determinable fair value are measured under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer ("measurement alternative investments").

The Company reviews for impairment for equity method and measurement alternative investments and includes an analysis of the facts and circumstances for each investment, expectations of cash flows, capital needs, and viability of its business model. For equity method, the asset carrying value is reduced when the decline in fair value is considered to be other than temporary. For measurement alternative investments, the asset carrying value is reduced when the fair value is less than the carrying value, without the consideration of recovery.
The Company held the following non-marketable equity investments:

•Equity Method - The Company held equity method investments of $2.9 million within other assets as of September 30, 2022 and $3.1 million at September 30, 2021. The Company’s ownership of such investments typically ranges from 5% - 25% of the investee. The Company recognized net earnings from these investments in the amount of $12,863 within noninterest income for the fiscal year ended September 30, 2022. The Company elected to classify distributions received from equity method investments using the cumulative earnings approach on the Consolidated Statements of Cash Flows.

•Fair Value Method - The Company held equity investments measured at net asset value (NAV) per share (or its equivalent) of $7.2 million at September 30, 2022 and $4.6 million at September 30, 2021 where NAV is considered the fair value practical expedient. These investments are recorded within other assets on the Company’s Consolidated Financial Statements. Fluctuations in fair value are recognized in earnings within noninterest Income.

•Measurement Alternative - The Company held equity investments measured using the measurement alternative of $15.3 million as of September 30, 2022 and $12.9 million at September 30, 2021 within other assets on the Company’s Consolidated Financial Statements. The Company recognized a fair value decrease of $1.0 million and an increase of $8.0 million during the fiscal years ended September 30, 2022 and 2021, respectively. The Company recognized impairment losses of zero and $2.6 million on such investments during the fiscal years ended September 30, 2022 and 2021, respectively.
LOANS HELD FOR SALE ("LHFS")
LOANS HELD FOR SALE ("LHFS")
LHFS include commercial loans originated under the guidelines of the SBA or USDA and consumer loans. LHFS are held at the lower of cost or fair value. Any amount by which the cost exceeds fair value is initially recorded as a valuation allowance and subsequently reflected in the gain or loss on sale when sold. At September 30, 2022 and 2021, there was no valuation allowance recorded for LHFS. Gains and losses on LHFS are recorded in noninterest income on the Consolidated Statements of Operations. Loan costs and fees are deferred at origination and are recognized in income at the time of sale. Interest income is calculated based on the note rate of the loan and is recorded as interest income. For loans transferred to LHFS due to change in intent of holding the loans to maturity or for the foreseeable future, such loans are transferred at lower of cost or fair value.
LOANS AND LEASES
LOANS AND LEASES

Loans Receivable
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans.

Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company's business lines follow a nonaccrual policy with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates.
For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due.

As part of the Company’s ongoing risk management practices, management generally attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Modified loan terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance or other actions intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of the collateral. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.

Leases Receivable
The Company provides various types of commercial lease financing that are classified for accounting purposes as direct financing, sales-type or operating leases. Leases that transfer substantially all of the benefits and risks of ownership to the lessee are classified as direct financing or sales-type leases and are included in loans and leases receivable on the Consolidated Statements of Financial Condition. Direct financing and sales-type leases are carried at the combined present value of future minimum lease payments and lease residual values. The determination of lease classification requires various judgments and estimates by management, including the fair value of equipment at lease inception, useful life of the equipment under lease, lease residual value, and collectability of minimum lease payments.

Sales-type leases generate dealer profit, which is recognized at lease inception by recording lease revenue net of lease cost. Lease revenue consists of the present value of the future minimum lease payments. Lease cost consists of the lease equipment’s book value, less the present value of its residual. Interest income on direct financing and sales-type leases is recognized using methods that approximate a level yield over the fixed, non-cancelable term of the lease. Recognition of interest income is generally discontinued at the time the lease becomes 90 days delinquent, unless the lease is well-secured and in process of collection. Delinquency and past due status is based on the contractual terms of the lease. The Company receives pro rata rent payments for the interim period until the lease contract commences and the fixed, non-cancelable lease term begins. Interim payments are recognized in the month they are earned and are recorded in interest income. Management has policies and procedures in place for the determination of lease classification and review of the related judgments and estimates for all lease financings.

The Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for leases when management judges the lease to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the lease has been classified as a loss by either the Company's internal review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the lease meets a defined number of days past due unless the lease is both well-secured and in the process of collection.
Some lease financings include a residual value component, which represents the estimated fair value of the leased equipment at the expiration of the initial term of the transaction. The estimation of the residual value involves judgments regarding product and technology changes, customer behavior, shifts in supply and demand, and other economic assumptions. The Company may purchase and sell minimum lease payments, primarily as a credit risk reduction tool, to third-party financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral. For those transactions that achieve sale treatment, the related lease cash flow stream and the non-recourse financing are derecognized. For those transactions that do not achieve sale treatment, the underlying lease remains on the Company’s Consolidated Statements of Financial Condition and non-recourse debt is recorded in the amount of the proceeds received. The Company retains servicing of these leases and bills, collects, and remits funds to the third-party financial institution. Upon default by the lessee, the third-party financial institutions may take control of the underlying collateral which the Company would otherwise retain as residual value.Leases that do not transfer substantially all benefits and risks of ownership to the lessee are classified as operating leases. Such leased equipment are included in rental equipment on the Consolidated Statements of Financial Condition and are depreciated on a straight-line basis over the term of the lease to its estimated residual value. Depreciation expense is recorded as operating lease equipment depreciation expense within noninterest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of noninterest income. The Company evaluates the carrying value of rental equipment for impairment whenever events or circumstances have occurred that would indicate the carrying amount may not be fully recoverable. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value, where fair value is based on the condition of the rental equipment and the projected net cash flows from rental and sale adjusted for current market conditions. No impairment expense was recognized for fiscal years ended September 30, 2022, 2021, and 2020.
LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETS LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETSThe Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, generally without recourse. Sold loans are not included in the Consolidated Financial Statements. The Bank generally retains the right to service the sold loans for a fee and records a servicing asset, which is included within other assets on the Consolidated Statements of Financial Condition.
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES
The ACL represents management’s estimate of current credit losses expected to be incurred by the loan and lease portfolio over the life of each financial asset as of the balance sheet date. 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 troubled debt restructurings or loans and leases on nonaccrual status. All other loans and leases are evaluated collectively for credit loss. A reserve for unfunded credit commitments such as letters of credit and binding unfunded loan commitments is recorded in other liabilities on the Consolidated Statements of Financial Condition.

Individually evaluated loans and leases are a key component of the ACL. Generally, the Company measures credit loss on individually evaluated loans based on the fair value of the collateral less estimated selling costs, as the Company considers these financial assets to be collateral dependent. If an individually evaluated loan or lease is not collateral dependent, credit loss is measured at the present value of expected future cash flows discounted at the loan or lease initial effective interest rate. Management has also 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.
Credit loss for all other loans and leases is evaluated collectively by various characteristics. The collective evaluation of expected losses in all commercial finance portfolios is based on a cohort loss rate and adjustments for forward-looking information, including industry and macroeconomic forecasts. The cohort loss rate is a life of loan loss rate that immediately reverts to historical loss information for the remaining maturity of the financial asset. Management has elected to use a twelve-month reasonable and supportable forecast for forward-looking information. Factors utilized in the determination of the allowance include historical loss experience, current economic forecasts and measurement date credit characteristics such as product type, delinquency, and industry. The unfunded credit commitments depend on these same factors, as well as estimates of lines of credit usage. The various quantitative and qualitative factors used in the methodologies are reviewed quarterly.

The collective evaluation of expected credit losses for certain consumer lending portfolios utilize different methodologies when estimating expected credit losses. Factors utilized in the determination of the allowance include historical loss experience, current economic forecasts, and measurement date credit characteristics including delinquency.

The amount of ACL depends significantly on management’s estimates or key factors and assumptions affecting valuation, appraisals of collateral, evaluations of performance and status, the amounts and timing of future cash flows expected to be received, forecasts of future economic conditions and reversion periods. Such estimates, appraisals, evaluations, cash flows and forecasts may be subject to frequent adjustments due to changing economic prospects of borrowers, lessees, properties or economic conditions. These estimates are reviewed quarterly and adjustments, if necessary, are recorded in the provision for credit losses in the periods in which they become known.

Accrued interest receivable is presented separately on the Consolidated Statements of Financial Condition, and an ACL is not recorded for these balances. Generally, when a loan or lease is placed on nonaccrual status, typically when the collection of interest or principal is 90 days or more past due, uncollected interest accrued in prior years is charged off against the ACL and interest accrued in the current year is reversed against interest income.

Management maintains a framework of controls over the estimation process for the ACL, including review of collective reserve methodologies for compliance with GAAP. Management has a quarterly process to review the appropriateness of historical observation periods and loss assumptions and risk ratings assigned to loans and leases, if applicable. Management reviews its qualitative framework and the effect on the collective reserve compared with relevant credit risk factors and consistency with credit trends. Management also maintains controls over information systems, models and spreadsheets used in the quantitative components of the reserve estimate. This includes the quality and accuracy of historical data used to derive loss rates, the inputs to industry and macroeconomic forecasts and the reversion periods utilized. The results of this process are summarized and presented to management quarterly for their approval of the recorded allowance. See Note 4. Loans and Leases, Net for further information.

The following are risk characteristics of the Company’s loan and lease portfolio:
Commercial Finance
The Company's Commercial Finance business line offers a variety of products through its working capital, equipment finance, structured finance, and insurance premium finance lending solutions. These products include term lending, asset based lending, factoring, lease financing, insurance premium finance, government guaranteed lending and other commercial finance products offered on a nationwide basis that are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or lease or could cause a decline in the value of the collateral that secures the loan or lease. The loans or leases are primarily made based on the operating cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans and leases may be difficult to measure. Most commercial finance loans and leases are secured by the assets being financed or other business assets such as accounts receivable or inventory. Although the loans and leases are often collateralized by equipment, inventory, accounts receivable, insurance premiums or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of borrowers and guarantors.
Consumer Finance
The Company's BaaS business line offers its consumer credit products and Emerald Advance products through its credit solution. The Bank designs its credit program relationships with certain desired outcomes. Three high priority outcomes are liquidity, credit protection, and risk retention. The Bank believes the benefits of these outcomes not only support its goals but the goals of the credit program partner as well. The Bank designs its program credit protections in a manner so that the Bank earns a reasonable risk adjusted return, but is protected by certain layers of credit support, similar to what you would find in structured finance. Certain loans are sold to third parties based on terms and conditions within the Program Agreement.

Tax Services
The Bank's BaaS business line also offers tax solutions, which includes short-term refund advance loans. Through this product, taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of refund advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a refund advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

The Bank offers short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

Warehouse Finance
The Bank participates in several collateral-based warehouse lines of credit whereby the Bank is in a senior, secured position as the first out participant. These facilities are primarily collateralized by consumer receivables, with the Bank holding a senior collateral position enhanced by a subordinate party structure.
EARNINGS PER COMMON SHARE ("EPS")
EARNINGS PER COMMON SHARE (“EPS”)
Basic earnings per share is computed 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 earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. See Note 5. Earnings per Common Share for further information.
PREMISES, FURNITURE, AND EQUIPMENT PREMISES, FURNITURE, AND EQUIPMENTLand is carried at cost. Buildings, furniture, fixtures, leasehold improvements, internal-use software and equipment are carried at cost, less accumulated depreciation and amortization. The Company primarily uses the straight-line method of depreciation over the estimated useful lives of the assets, which is 39 years for buildings, three years years for internal-use software, and range from two years to 15 years for leasehold improvements, and for furniture, fixtures and equipment. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.
GOODWILL
GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment at a reporting unit level. The Company has determined that its reporting units are one level below the operating segments and distinguish these reporting units based on how the segments and reporting units are managed, taking into consideration the economic characteristics, nature of the products, and customers of the segments and reporting units. The Company performs its impairment evaluation as of September 30 of each fiscal year unless a triggering event occurs that would require an interim impairment evaluation. The Company generally utilizes a qualitative approach during this annual assessment to determine whether it is more likely than not (i.e. a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying value. If we determine it is more likely than not that goodwill is impaired, then a quantitative assessment is performed to determine fair value of the reporting unit. If the carrying amount of the reporting unit with goodwill exceeds its fair value, goodwill is considered impaired and is written down by the excess carrying value of the reporting unit. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the fiscal years ended September 30, 2022, 2021 or 2020. See Note 8. Goodwill and Intangible Assets for further information.
INTANGIBLE ASSETS
INTANGIBLE ASSETS
Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. See Note 8. Goodwill and Intangible Assets for further information.
EMPLOYEE PROFIT SHARING PLAN
EMPLOYEE PROFIT SHARING PLAN
The Company has a profit sharing plan covering substantially all full-time employees. Profit sharing expense included in compensation and benefits, for the fiscal years ended September 30, 2022, 2021 and 2020 was $0.1 million, $3.1 million and $3.1 million, respectively. As of October 1, 2021, the Company modified its profit sharing plan to incorporate a Qualified Automatic Contribution Arrangement safe harbor provision, whereby employee contributions are matched at 100% of the first 6% of eligible compensation contributed.
STOCK COMPENSATION
STOCK COMPENSATION
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of non-vested (restricted) shares and performance share units 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. See Note 13. Stock Compensation for further information.
INCOME TAXES
INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in noninterest income or noninterest expense. The effect on deferred tax assets and liabilities from a change in tax rates is recorded in income tax expense in the Consolidated Statements of Operations in the period in which the enactment date occurs. If current period income tax rates change, the impact on the annual effective income tax rate is applied year to date in the period of enactment. See Note 14. Income Taxes for further information.
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Company, in the normal course of business, makes commitments to originate loans which are not reflected in the Consolidated Financial Statements. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition.
REVENUE RECOGNITION
REVENUE RECOGNITION
Interest revenue from loans, leases, and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan, lease, or investment. Income from service and other customer charges is recognized as earned. Revenue within the Consumer segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. Refer to Note 16. Revenue from Contracts with Customers for additional information.
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes the change in net unrealized holding gains and losses due to market conditions and other non-credit risk factors on AFS debt securities, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
The Company has disclosed information on its equity investments and relationships with variable interest entities in Note 1. Summary of Significant Accounting Policies.
RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES
RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES
Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.
RECENT ACCOUNTING STANDARDS UPDATES ("ASU")
RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
The following ASUs were adopted by the Company during the fiscal year ended September 30, 2022, none of which had a material impact on the Company's Consolidated Financial Statements. All became effective for the Company on October 1, 2021.

ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies accounting for income taxes by removing specific technical exceptions in ASC 740 related to the incremental approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. All changes within ASU 2019-12 were applied on a prospective basis and did not have a material impact on the Company's Consolidated Financial Statements.

ASU 2020-08, Codification Improvements to Subtopic 310-20: Receivables – Nonrefundable Fees and Other Costs. This ASU clarifies that an entity should amortize any premium, if applicable, to the next call date, which is the first date when a call option at a specified price becomes exercisable. The Company had previously amortized fees through the next call date and will continue to do so; accordingly, there is no impact on the Company's Consolidated Financial Statements as a result of adopting this ASU.

ASU 2020-10, Codification Improvements. This ASU made minor improvements to various Topics that did not have a significant impact on the Company’s accounting policies and practices. There were no material impacts to the Consolidated Financial Statements as a result of adopting this ASU.

ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services – Depository and Lending (Topic 942), and Financial Services – Investment Companies (Topic 946) – Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Business, and No. 33-10835, Updated of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU adds new quarterly disclosures and expands certain annual disclosures to quarterly reporting. The additional disclosure requirements have been included within the Management Discussion & Analysis section.

The following ASUs have been issued and are considered applicable to the Company, but have not yet been adopted as of September 30, 2022.
ASU 2021-05, Leases (Topic 842): Lessors – Certain Leases with Variable Lease Payments. The amendments in this ASU require lessors to classify and account for leases with variable lease payments that do not depend on a reference index or rate as an operating lease if certain criteria are met. This ASU is effective for public companies for fiscal years beginning after December 15, 2021. The Company’s Equipment Finance division does not generally originate leases with variable lease payments that do not depend on a reference rate or index, so the impact of this ASU is not expected to be material to the 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. This ASU is effective for public companies for fiscal years beginning after December 15, 2022. Management is currently evaluating the impact of this guidance on the consolidated financial statements.
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Schedule of Summarized Financial Information of Variable Interest Entities
(Dollars in thousands)At September 30, 2022
Cash and cash equivalents$604 
Loans and leases81,881 
Allowance for credit losses(3,720)
Accrued interest receivable345 
Foreclosed real estate and repossessed assets, net1 
Other assets1,727 
Total assets80,838 
Accrued expenses and other liabilities1,280 
Noncontrolling interest(30)
Net assets less noncontrolling assets$79,588 
v3.22.2.2
SECURITIES (Tables)
 12 Months Ended
Sep. 30, 2022
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.
Debt Securities AFS
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At September 30, 2022
Corporate securities$25,000 $— $(2,813)$22,187 
SBA securities105,238 — (7,470)97,768 
Obligations of states and political subdivisions2,469 — (125)2,344 
Non-bank qualified obligations of states and political subdivisions290,754 — (26,971)263,783 
Asset-backed securities160,806 — (13,016)147,790 
Mortgage-backed securities1,581,452 — (232,455)1,348,997 
Total debt securities AFS$2,165,719 $— $(282,850)$1,882,869 
At September 30, 2021
Corporate securities$25,000 $— $— $25,000 
SBA securities151,958 5,251 — 157,209 
Obligations of states and political subdivisions2,497 10 — 2,507 
Non-bank qualified obligations of states and political subdivisions266,048 3,347 (1,100)268,295 
Asset-backed securities393,103 3,003 (1,247)394,859 
Mortgage-backed securities1,016,478 9,728 (9,177)1,017,029 
Total debt securities AFS$1,855,084 $21,339 $(11,524)$1,864,899 
Securities Held to Maturity
Debt Securities HTM
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$39,093 $— $(3,190)$35,903 
Mortgage-backed securities2,589 — (321)2,268 
Total debt securities HTM$41,682 $— $(3,511)$38,171 
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$52,944 $103 $(471)$52,576 
Mortgage-backed securities3,725 90 — 3,815 
Total debt securities HTM$56,669 $193 $(471)$56,391 
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
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 September 30, 2022
Corporate securities$— $— $22,187 $(2,813)$22,187 $(2,813)
SBA securities97,767 (7,470)— — 97,767 (7,470)
Obligations of state and political subdivisions2,345 (125)— — 2,345 (125)
Non-bank qualified obligations of states and political subdivisions195,816 (19,743)67,967 (7,228)263,783 (26,971)
Asset-backed securities64,886 (1,838)82,904 (11,178)147,790 (13,016)
Mortgage-backed securities816,657 (106,583)532,340 (125,872)1,348,997 (232,455)
Total debt securities AFS$1,177,471 $(135,759)$705,398 $(147,091)$1,882,869 $(282,850)
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$101,046 $(1,100)$— $— $101,046 $(1,100)
Asset-backed securities127,110 (283)91,553 (964)218,663 (1,247)
Mortgage-backed securities759,035 (7,418)60,792 (1,759)819,827 (9,177)
Total debt securities AFS$987,191 $(8,801)$152,345 $(2,723)$1,139,536 $(11,524)
Debt Securities HTM
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$3,984 $(300)$31,919 $(2,890)$35,903 $(3,190)
Mortgage-backed securities2,268 (321)— — 2,268 (321)
Total debt securities HTM$6,252 $(621)$31,919 $(2,890)$38,171 $(3,511)
At September 30, 2021
Non-bank qualified obligations of states and political subdivisions$26,096 $(471)$— $— $26,096 $(471)
Total debt securities HTM$26,096 $(471)$— $— $26,096 $(471)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
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 which 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.
At September 30,
(Dollars in thousands)20222021
Securities AFS at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$718 $715 $810 $822 
Due after one year through five years9,921 9,395 13,026 13,378 
Due after five years through ten years89,921 81,819 50,785 52,357 
Due after ten years483,707 441,943 773,985 781,313 
584,267 533,872 838,606 847,870 
Mortgage-backed securities1,581,452 1,348,997 1,016,478 1,017,029 
Total securities AFS, at fair value$2,165,719 $1,882,869 $1,855,084 $1,864,899 

At September 30,
(Dollars in thousands)20222021
Securities HTM at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due after ten years$39,093 $35,903 $52,944 $52,576 
39,093 35,903 52,944 52,576 
Mortgage-backed securities2,589 2,268 3,725 3,815 
Total securities HTM, at cost$41,682 $38,171 $56,669 $56,391 
Summary of Activities Related to Sale of Securities Available for Sale Activity related to the sale of securities available for sale is summarized below.
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Available For Sale
   Proceeds from sales$265,951 $50,468 $4,904 
   Gross gains on sales1,742 179 51 
   Gross losses on sales1,588 173 — 
 Net gain (loss) on securities AFS$154 $6 $51 
v3.22.2.2
LOANS AND LEASES, NET (Tables)
 12 Months Ended
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Loans and leases consist of the following:
At September 30,
(Dollars in thousands)20222021
Term lending$1,090,289 $961,019 
Asset based lending351,696 300,225 
Factoring372,595 363,670 
Lease financing210,692 266,050 
Insurance premium finance479,754 428,867 
SBA/USDA359,238 247,756 
Other commercial finance159,409 157,908 
Commercial finance3,023,673 2,725,495 
Consumer credit products144,353 129,251 
Other consumer finance25,306 123,606 
Consumer finance169,659 252,857 
Tax services9,098 10,405 
Warehouse finance326,850 419,926 
Community banking— 199,132 
Total loans and leases3,529,280 3,607,815 
Net deferred loan origination costs7,025 1,748 
Total gross loans and leases3,536,305 3,609,563 
Allowance for credit losses(45,947)(68,281)
Total loans and leases, net$3,490,358 $3,541,282 
Schedule of Loans Purchased and Sold by Portfolio Segment
Loans purchased and sold by portfolio segment, including participation interests, were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Loans Purchased
Commercial finance$3,098 $— 
Warehouse finance112,255 308,014 
Community banking— 3,318 
Total purchases$115,353 $311,332 
Loans Sold
Loans held for sale:
Commercial finance$50,848 $89,276 
Consumer finance855,291 494,585 
Community banking153,222 308,082 
Loans held for investment:
Commercial finance15,549 — 
Consumer finance77,456 — 
Community banking30,235 13,850 
Total sales$1,182,601 $905,793 
Sales-type Lease, Lease Income The net investment in direct financing and sales-type leases was comprised of the following:
At September 30,
(Dollars in thousands)20222021
Carrying amount$216,880 $278,341 
Unguaranteed residual assets13,037 14,393 
Unamortized initial direct costs295 490 
Unearned income(19,225)(26,684)
Total net investment in direct financing and sales-type leases$210,987 $266,540 
Operating Lease, Lease Income
The components of total lease income were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$17,081 $22,876 
Leasing and equipment finance noninterest income
Lease income from operating lease payments46,017 39,553 
Profit recorded on commencement date on sales-type leases— 337 
Other(1)
5,982 4,986 
Total leasing and equipment finance noninterest income51,999 44,876 
Total lease income$69,080 $67,752 
(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 September 30, 2022 were as follows:
(Dollars in thousands)
2023$95,608 
202466,344 
202534,657 
202612,714 
20275,495 
Thereafter2,062 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases216,880 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$216,880 
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Activity in the allowance for credit losses was as follows: 
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Beginning balance$68,281 $56,188 
Impact of CECL adoption— 12,773 
Provision for credit losses28,862 49,939 
Charge-offs(61,061)(57,273)
Recoveries9,865 6,654 
Ending balance$45,947 $68,281 
Activity in the allowance for credit losses and balances of loans and leases by portfolio segment was as follows:
At September 30, 2022
(Dollars in thousands)Beginning BalanceProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for credit losses:
Term lending$29,351 $4,850 $(12,629)$3,049 $24,621 
Asset based lending1,726 (1,092)(16)432 1,050 
Factoring3,997 11,699 (11,057)1,917 6,556 
Lease financing7,629 (2,062)(301)636 5,902 
Insurance premium finance1,394 597 (767)226 1,450 
SBA/USDA2,978 863 (652)74 3,263 
Other commercial finance1,168 142 — — 1,310 
Commercial finance48,243 14,997 (25,422)6,334 44,152 
Consumer credit products1,242 158 — — 1,400 
Other consumer finance6,112 (1,607)(4,787)345 63 
Consumer finance7,354 (1,449)(4,787)345 1,463 
Tax services2 28,093 (30,852)2,762 5 
Warehouse finance420 (93)— — 327 
Community banking12,262 (12,686)— 424 — 
Total loans and leases68,281 28,862 (61,061)9,865 45,947 
Unfunded commitments(1)
690 (324)— — 366 
Total $68,971 $28,538 $(61,061)$9,865 $46,313 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.

At September 30, 2021
(Dollars in thousands)Beginning BalanceImpact of CECL AdoptionProvision (Reversal)Charge-offsRecoveriesEnding Balance
Allowance for loan and lease losses:
Term lending$15,211 $9,999 $16,944 $(14,090)$1,287 $29,351 
Asset based lending1,406 164 933 (1,200)423 1,726 
Factoring3,027 987 (1,192)— 1,175 3,997 
Lease financing7,023 (556)3,758 (2,969)373 7,629 
Insurance premium finance2,129 (965)(555)(1,192)1,977 1,394 
SBA/USDA940 2,720 (703)— 21 2,978 
Other commercial finance182 364 622 — — 1,168 
Commercial finance29,918 12,713 19,807 (19,451)5,256 48,243 
Consumer credit products845 — 397 — — 1,242 
Other consumer finance2,821 5,998 297 (3,324)320 6,112 
Consumer finance3,666 5,998 694 (3,324)320 7,354 
Tax services2 — 33,276 (34,354)1,078 2 
Warehouse finance294 (1)127 — — 420 
Community banking22,308 (5,937)(3,965)(144)— 12,262 
Total loans and leases56,188 12,773 49,939 (57,273)6,654 68,281 
Unfunded commitments(1)
32 831 (173)— — 690 
Total $56,220 $13,604 $49,766 $(57,273)$6,654 $68,971 
(1) Reserve for unfunded commitments is recognized within other liabilities on the Consolidated Statements of Financial Condition.
Impaired Loans
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 September 30, 2022At September 30, 2021
Term lending$2,885 $20,965 
Factoring550 1,268 
Lease financing2,787 3,882 
SBA/USDA1,199 — 
Commercial finance(1)
7,421 26,115 
Community banking— 14,915 
Total$7,421 $41,030 
(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:

Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Term lending$11,320 $14,623 
Asset based lending3,754 444 
Factoring6,344 757 
Lease financing3,278 3,029 
SBA/USDA1,244 550 
Commercial finance25,940 19,403 
Community banking— 16,231 
Total loans and leases$25,940 $35,634 

The recognized interest income on the Company's nonaccrual loans and leases for the fiscal years ended September 30, 2022 and 2021 was not significant.
Asset Classification of Loans 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 September 30, 202220222021202020192018Prior
Term lending
Pass$246,627 $240,018 $105,170 $60,417 $89,072 $61,229 $— $802,533 
Watch45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 
Special Mention9,500 24,885 14,300 2,861 619 242 — 52,407 
Substandard10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 
Doubtful175 407 469 872 204 192 — 2,319 
Total312,468 306,322 177,239 99,114 121,429 73,717 — 1,090,289 
Asset based lending
Pass— — — — — — 154,494 154,494 
Watch— — — — — — 162,990 162,990 
Special Mention— — — — — — 13,770 13,770 
Substandard— — — — — — 20,442 20,442 
Total— — — — — — 351,696 351,696 
Factoring
Pass— — — — — — 254,883 254,883 
Watch— — — — — — 86,219 86,219 
Special Mention— — — — — — 9,174 9,174 
Substandard— — — — — — 22,319 22,319 
Total— — — — — — 372,595 372,595 
Lease financing
Pass7,407 38,818 31,408 26,552 12,361 823 — 117,369 
Watch8,799 17,098 10,284 6,655 2,899 151 — 45,886 
Special Mention151 6,151 2,644 481 2,876 2,811 — 15,114 
Substandard825 9,486 11,819 7,273 1,245 — — 30,648 
Doubtful144 163 1,280 88 — — — 1,675 
Total17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 
Insurance premium finance
Pass478,504 307 8 — — — — 478,819 
Watch539 7 — — — — — 546 
Special Mention169 40 — — — — — 209 
Substandard106 46 — — — — — 152 
Doubtful14 14 — — — — — 28 
Total479,332 414 8 — — — — 479,754 
SBA/USDA
Pass54,512 111,907 40,474 56,538 28,874 24,305 — 316,610 
Watch— 13,836 1,266 702 — 710 — 16,514 
Special Mention— 211 — 869 — — — 1,080 
Substandard4,149 10,968 4,278 — 1,094 4,545 — 25,034 
Total58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 
Other commercial finance
Pass5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 
Substandard— 9,538 — — — 20,000 — 29,538 
Total5,886 23,145 26,040 20,458 23,098 60,782 — 159,409 
Warehouse finance
Pass— — — — — — 294,350 294,350 
Special Mention— — — — — — 32,500 32,500 
Total— — — — — — 326,850 326,850 
Total loans and leases
Pass792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 
Watch54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 
Special Mention9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 
Substandard15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 
Doubtful333 584 1,749 960 204 192 — 4,022 
Total$873,673 $538,519 $306,740 $218,730 $193,876 $167,844 $1,051,141 $3,350,523 

Amortized Cost Basis
(Dollars in thousands)Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
At September 30, 202120212020201920182017Prior
Term lending
Pass$362,443 $192,305 $63,708 $34,381 $3,195 $1,236 $— $657,268 
Watch63,046 71,701 32,941 21,419 76 3,628 — 192,811 
Special Mention6,422 26,673 4,821 932 70 633 — 39,551 
Substandard18,569 16,810 26,920 3,529 928 641 — 67,397 
Doubtful252 1,673 1,756 311 — — — 3,992 
Total450,732 309,162 130,146 60,572 4,269 6,138 — 961,019 
Asset based lending
Pass— — — — — — 185,432 185,432 
Watch— — — — — — 52,072 52,072 
Special Mention— — — — — — 43,135 43,135 
Substandard— — — — — — 19,586 19,586 
Total— — — — — — 300,225 300,225 
Factoring
Pass— — — — — — 294,124 294,124 
Watch— — — — — — 17,984 17,984 
Special Mention— — — — — — 33,035 33,035 
Substandard— — — — — — 18,527 18,527 
Total— — — — — — 363,670 363,670 
Lease financing
Pass54,434 73,629 17,153 7,511 1,857 203 — 154,787 
Watch22,061 20,455 9,274 2,739 1,454 — — 55,983 
Special Mention15,402 20,595 4,148 1,546 61 — — 41,752 
Substandard479 4,765 4,981 831 25 — — 11,081 
Doubtful— 6 2,402 38 1 — — 2,447 
Total92,376 119,450 37,958 12,665 3,398 203 — 266,050 
Insurance premium finance
Pass428,131 144 9 — — — — 428,284 
Watch262 5 — — — — — 267 
Special Mention58 5 — — — — — 63 
Substandard68 107 — — — — — 175 
Doubtful58 20 — — — — — 78 
Total428,577 281 9 — — — — 428,867 
SBA/USDA
Pass110,122 37,006 14,461 12,760 6,525 3,779 — 184,653 
Watch— 20,431 1,996 1,670 1,394 298 — 25,789 
Special Mention— 8,333 214 3,348 177 919 — 12,991 
Substandard— 3,812 9,550 8,079 2,169 713 — 24,323 
Total110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 
Other commercial finance
Pass56,957 642 5,786 6,075 3,345 60,965 — 133,770 
Watch— 17,404 3,409 451 — — — 21,264 
Substandard466 — — 273 837 1,299 — 2,875 
Total57,423 18,046 9,195 6,799 4,182 62,264 — 157,909 
Warehouse finance
Pass— — — — — — 419,926 419,926 
Total— — — — — — 419,926 419,926 
Community banking
Pass— — 4,159 — 5,683 472 — 10,314 
Watch— 10,134 — 10,854 6,133 — — 27,121 
Special Mention— — 35,916 — — — — 35,916 
Substandard— 119 49,449 50,626 13,933 6,110 — 120,237 
Doubtful— 122 — 5,422 — — — 5,544 
Total— 10,375 89,524 66,902 25,749 6,582 — 199,132 
Total loans and leases
Pass1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 
Watch85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 
Special Mention21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 
Substandard19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 
Doubtful310 1,822 4,158 5,770 1 — — 12,061 
Total$1,139,233 $526,899 $293,051 $172,793 $47,861 $80,895 $1,083,821 $3,344,553 
Past Due Loans
Past due loans and leases were as follows:
At September 30, 2022
Accruing and Nonaccruing Loans and LeasesNonperforming Loans and Leases
(Dollars in thousands)30-59 Days Past Due60-89 Days Past Due> 89 Days Past DueTotal Past DueCurrentTotal Loans and Leases Receivable> 89 Days Past Due and AccruingNonaccrual BalanceTotal
Loans held for sale$— $— $— $— $21,071 $21,071 $— $— $— 
Term lending14,066 2,576 4,458 21,100 1,069,189 1,090,289 2,035 7,576 9,611 
Asset based lending— — 68 68 351,628 351,696 39 29 68 
Factoring— — — — 372,595 372,595 — 569 569 
Lease financing8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 
Insurance premium finance2,550 1,379 1,628 5,557 474,197 479,754 1,628 — 1,628 
SBA/USDA— — — — 359,238 359,238 — 1,451 1,451 
Other commercial finance— — — — 159,409 159,409 — — — 
Commercial finance24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 
Consumer credit products3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 
Other consumer finance113 51 124 288 25,018 25,306 124 — 124 
Consumer finance3,322 2,609 2,793 8,724 160,935 169,659 2,793 — 2,793 
Tax services— — 8,873 8,873 225 9,098 8,873 — 8,873 
Warehouse finance— — — — 326,850 326,850 — — — 
Total loans and leases held for investment28,203 8,817 19,534 56,554 3,472,726 3,529,280 15,808 13,375 29,183 
Total loans and leases$28,203 $8,817 $19,534 $56,554 $3,493,797 $3,550,351 $15,808 $13,375 $29,183 

At September 30, 2021
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$— $— $— $— $56,194 $56,194 $— $— $— 
Term lending11,879 2,703 5,452 20,034 940,985 961,019 2,558 14,904 17,462 
Asset based lending— — — — 300,225 300,225 — — — 
Factoring— — — — 363,670 363,670 — 1,268 1,268 
Lease financing4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 
Insurance premium finance1,415 375 599 2,389 426,478 428,867 599 — 599 
SBA/USDA66 974 987 2,027 245,729 247,756 987 — 987 
Other commercial finance— — — — 157,908 157,908 — — — 
Commercial finance18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 
Consumer credit products713 527 511 1,751 127,500 129,251 511 — 511 
Other consumer finance963 285 725 1,973 121,633 123,606 725 — 725 
Consumer finance1,676 812 1,236 3,724 249,133 252,857 1,236 — 1,236 
Tax services— — 7,962 7,962 2,443 10,405 7,962 — 7,962 
Warehouse finance— — — — 419,926 419,926 — — — 
Community banking— — — — 199,132 199,132 — 14,915 14,915 
Total loans and leases held for investment19,945 8,200 24,637 52,782 3,555,033 3,607,815 21,687 34,245 55,932 
Total loans and leases$19,945 $8,200 $24,637 $52,782 $3,611,227 $3,664,009 $21,687 $34,245 $55,932 
Financing Receivable, Nonaccrual
Nonaccrual loans and leases by year of origination at September 30, 2022 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20222021202020192018Prior
Term lending$251 $1,110 $1,964 $989 $3,096 $166 $— $7,576 $2,885 
Asset based lending— — — — — — 29 29 — 
Factoring— — — — — — 569 569 550 
Lease financing977 310 2,442 13 8 — — 3,750 — 
SBA/USDA— — 1,199 — — 252 — 1,451 1,199 
Commercial finance1,228 1,420 5,605 1,002 3,104 418 598 13,375 4,634 
Total nonaccrual loans and leases$1,228 $1,420 $5,605 $1,002 $3,104 $418 $598 $13,375 $4,634 

Nonaccrual loans and leases by year of origination at September 30, 2021 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotalNonaccrual with No ACL
(Dollars in thousands)20212020201920182017Prior
Term lending$131 $3,812 $10,072 $756 $133 $— $— $14,904 $12,103 
Asset based lending— — — — — — — — — 
Factoring— — — — — — 1,268 1,268 1,268 
Lease financing— 30 2,471 632 25 — — 3,158 541 
Commercial finance131 3,842 12,543 1,388 158 — 1,268 19,330 13,912 
Community banking— 242 — 14,673 — — — 14,915 — 
Total nonaccrual loans and leases$131 $4,084 $12,543 $16,061 $158 $— $1,268 $32,245 $13,912 

Loans and leases that are 90 days or more delinquent and accruing by year of origination at September 30, 2022 were as follows:
Amortized Cost Basis
Term Loans and Leases by Origination YearRevolving Loans and LeasesTotal
(Dollars in thousands)20222021202020192018Prior
Term lending$207 $720 $716 $130 $70 $192 $— $2,035 
Asset based lending— — — — — — 39 39 
Lease financing8 158 98 131 45 — — 440 
Insurance premium finance1,513 110 5 — — — — 1,628 
Commercial finance1,728 988 819 261 115 192 39 4,142 
Consumer credit products2,123 481 42 23 — — — 2,669 
Other consumer finance— 124 — — — — — 124 
Consumer finance2,123 605 42 23 — — — 2,793 
Tax services8,873 — — — — — — 8,873 
Total 90 days or more delinquent and accruing$12,724 $1,593 $861 $284 $115 $192 $39 $15,808 
v3.22.2.2
EARNINGS PER COMMON SHARE ("EPS") (Tables)
 12 Months Ended
Sep. 30, 2022
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.
Fiscal Year Ended September 30,
(Dollars in thousands, except per share data)202220212020
Basic income per common share:
Net income attributable to Pathward Financial, Inc.$156,386 $141,708 $104,720 
Dividends and undistributed earnings allocated to participating securities(2,565)(2,698)(2,414)
Basic net earnings available to common stockholders153,821 139,010 102,306 
Undistributed earnings allocated to nonvested restricted stockholders2,468 2,575 2,249 
Reallocation of undistributed earnings to nonvested restricted stockholders(2,468)(2,573)(2,249)
Diluted net earnings available to common stockholders$153,821 $139,012 $102,306 
Total weighted-average basic common shares outstanding29,227,071 31,729,596 34,829,971 
Effect of dilutive securities(1)
Stock options— — — 
Performance share units5,176 21,926 — 
Total effect of dilutive securities5,176 21,926 — 
Total weighted-average diluted common shares outstanding29,232,247 31,751,522 34,829,971 
Net earnings per common share:
Basic earnings per common share$5.26 $4.38 $2.94 
Diluted earnings per common share(2)
$5.26 $4.38 $2.94 
(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 fiscal years ended September 30, 2022, 2021, and 2020, respectively, were 487,476, 615,811, and 821,738 weighted average shares of nonvested restricted stock because their inclusion would be anti-dilutive.
v3.22.2.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Summary of Year-End Premises and Equipment
Premises, furniture, and equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Land$1,354 $1,354 
Buildings21,300 21,196 
Furniture, fixtures, and equipment56,631 76,662 
79,285 99,212 
Less: accumulated depreciation and amortization(37,575)(54,324)
Net book value$41,710 $44,888 
Rental equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Computers and IT networking equipment$21,669 $17,683 
Motor vehicles and other107,648 87,396 
Other furniture and equipment34,254 48,828 
Solar panels and equipment133,765 125,457 
Total297,336 279,364 
Accumulated depreciation(94,355)(67,825)
Unamortized initial direct costs1,390 1,577 
Net book value$204,371 $213,116 
v3.22.2.2
RENTAL EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Summary of Rental Equipment
Premises, furniture, and equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Land$1,354 $1,354 
Buildings21,300 21,196 
Furniture, fixtures, and equipment56,631 76,662 
79,285 99,212 
Less: accumulated depreciation and amortization(37,575)(54,324)
Net book value$41,710 $44,888 
Rental equipment consists of the following:
At September 30,
(Dollars in thousands)20222021
Computers and IT networking equipment$21,669 $17,683 
Motor vehicles and other107,648 87,396 
Other furniture and equipment34,254 48,828 
Solar panels and equipment133,765 125,457 
Total297,336 279,364 
Accumulated depreciation(94,355)(67,825)
Unamortized initial direct costs1,390 1,577 
Net book value$204,371 $213,116 
Schedule of Operating Lease Payments uture minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows:
(Dollars in thousands)
2023$39,286 
202430,807 
202523,158 
202614,651 
20278,454 
Thereafter9,704 
Total $126,060 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at September 30, 2022 were as follows:
(Dollars in thousands)
2023$3,946 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 36,503 
Discount(4,448)
Total operating lease liabilities$32,055 
v3.22.2.2
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
(Dollars in thousands)
Trademark(1)
Non-Compete
Customer Relationships(2)
All Others(3)
Total
Intangible Assets
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Acquisitions during the period— — — 1 1 
Amortization during the period(1,218)(40)(4,803)(524)(6,585)
Write-offs during the period— — (670)(203)(873)
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
Gross carrying amount$14,624 $2,481 $82,088 $9,940 $109,133 
Accumulated amortization(6,019)(2,481)(58,775)(5,031)(72,306)
Accumulated impairment— — (10,918)(218)(11,136)
At September 30, 2022$8,605 $— $12,395 $4,691 $25,691 
At September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
Acquisitions during the period— — — 24 24 
Amortization during the period(1,078)(382)(6,465)(620)(8,545)
Write-offs during the period— — — (23)(23)
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
Gross carrying amount$14,624 $2,481 $82,088 $10,142 $109,335 
Accumulated amortization(4,801)(2,441)(53,972)(4,507)(65,721)
Accumulated impairment— — (10,248)(218)(10,466)
At September 30, 2021$9,823 $40 $17,868 $5,417 $33,148 
(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.
Anticipated Future Amortization of Intangibles
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 subsequent fiscal years at September 30, 2022 was as follows:
(Dollars in thousands)
2023$4,937 
20244,123 
20253,561 
20263,215 
20272,569 
Thereafter7,286 
Total anticipated intangible amortization$25,691 
v3.22.2.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Schedule of Operating Lease Payments uture minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows:
(Dollars in thousands)
2023$39,286 
202430,807 
202523,158 
202614,651 
20278,454 
Thereafter9,704 
Total $126,060 
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at September 30, 2022 were as follows:
(Dollars in thousands)
2023$3,946 
20243,913 
20253,718 
20263,195 
20273,092 
Thereafter18,639 
Total undiscounted future minimum lease payments 36,503 
Discount(4,448)
Total operating lease liabilities$32,055 
Lease Costs
The weighted-average discount rate and remaining lease term for operating leases at September 30, 2022 were as follows:
Weighted-average discount rate2.35 %
Weighted-average remaining lease term (years)10.41

The components of total lease costs for operating leases were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)20222021
Lease expense$4,431 $4,310 
Short-term and variable lease cost194 193 
ROU asset impairment670 224 
Sublease income(1,267)(591)
Total lease cost for operating leases$4,028 $4,136 
v3.22.2.2
TIME CERTIFICATES OF DEPOSIT (Tables)
 12 Months Ended
Sep. 30, 2022
Deposits [Abstract]  
Scheduled Maturities of Time Certificates of Deposits
Scheduled maturities of time certificates of deposit at September 30, 2022 were as follows for the fiscal years ending:
(Dollars in thousands)
2023$5,947 
20241,807 
2025— 
2026— 
2027— 
Thereafter— 
Total(1)
$7,754 
(1) As of September 30, 2022, the Company had $0.1 million of certificates of deposit which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition.
v3.22.2.2
SHORT-TERM AND LONG-TERM BORROWINGS (Tables)
 12 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
Long-Term Borrowings
At September 30,
(Dollars in thousands)20222021
Trust preferred securities13,661 13,661 
Subordinated debentures, net of issuance costs20,000 73,980 
Other long-term borrowings(1)
2,367 5,193 
Total$36,028 $92,834 
(1) Includes $2.4 million and $5.1 million of discounted leases and none and $0.1 million of finance lease obligations at September 30, 2022 and 2021, respectively.
Scheduled maturities of FHLB advances
Scheduled maturities of the Company's long-term borrowings at September 30, 2022 were as follows for the fiscal years ending:
(Dollars in thousands)Trust preferred securitiesSubordinated debenturesOther long-term borrowingsTotal
2023$— $— $603 $603 
2024— — 1,764 1,764 
2025— — — — 
2026— — — — 
2027— — — — 
Thereafter13,661 20,000 — 33,661 
Total long-term borrowings$13,661 $20,000 $2,367 $36,028 
v3.22.2.2
STOCK COMPENSATION (Tables)
 12 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Activity of Options
The following tables show the activity of options and 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 option and incentive plans during the fiscal year ended September 30, 2022 and 2021.

There was no activity of options during the fiscal years ended September 30, 2022 and 2021 and zero were outstanding or exercisable at September 30, 2022 and 2021.
Activity of Nonvested (Restricted) Shares
(Dollars in thousands, except per share data)Number of SharesWeighted Average Fair Value at Grant
Nonvested shares outstanding, September 30, 2021547,063 $30.22 
Granted178,631 55.56 
Vested(230,323)35.70 
Forfeited or expired(21,023)43.45 
Nonvested shares outstanding, September 30, 2022474,348 $36.52 
Nonvested shares outstanding, September 30, 2020790,083 $30.03 
Granted190,187 30.88 
Vested(329,409)30.32 
Forfeited or expired(103,798)29.66 
Nonvested shares outstanding, September 30, 2021547,063 $30.22 
Activity of Performance Shares
(Dollars in thousands, except per share data)Number of UnitsWeighted Average Fair Value at Grant
Performance share units outstanding, September 30, 202160,984 $34.03 
Granted(1)
35,705 57.20 
Vested— — 
Forfeited or expired— — 
Performance share units outstanding, September 30, 202296,689 $42.59 
(1) The number of PSUs granted reflects the target number of PSUs able to be earned under a given award.
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded
The following table shows the effect to income, net of tax benefits, of share-based compensation expense recorded:

Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Total employee stock-based compensation expense recognized in income, net of tax effects of $2,181, $1,562, and $2,567, respectively
$7,824 $5,290 $7,656 
v3.22.2.2
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes were as follows:
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Federal:
Current$5,657 $6,402 $3,148 
Deferred12,900 (3,909)(4,505)
18,557 2,493 (1,357)
State:   
Current4,720 5,938 4,860 
Deferred4,687 2,270 2,158 
9,407 8,208 7,018 
Income tax expense (benefit)$27,964 $10,701 $5,661 
Components of Net Deferred Tax Asset (Liability)
The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities were:
At September 30,
(Dollars in thousands)20222021
Deferred tax assets:
Bad debts$10,636 $15,946 
Deferred compensation2,652 3,733 
Stock based compensation3,521 3,314 
Valuation adjustments3,047 4,111 
General business credits(1)
52,684 49,196 
Accrued expenses1,948 2,780 
Lease liability8,074 9,206 
Net unrealized losses on securities available for sale71,336 — 
Other assets2,662 4,253 
 156,560 92,539 
Deferred tax liabilities:  
Premises and equipment(3,148)(3,328)
Intangibles(4,099)(3,032)
Net unrealized gains on securities available for sale— (2,471)
Leased assets(58,592)(46,355)
Right-of-use assets(7,758)(8,877)
Other liabilities(1,170)(3,303)
(74,767)(67,366)
Net deferred tax assets$81,793 $25,173 
(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2022 and 2021. These credits expire on September 30, 2042 and 2041, respectively.
Reconciliation of Total Income Tax Expense The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Fiscal Year Ended September 30,
202220212020
(Dollars in thousands)AmountRateAmountRateAmountRate
Statutory federal income tax expense and rate$38,714 21.0 %$32,854 21.0 %$24,151 21.0 %
Change in tax rate resulting from:
State income taxes net of federal benefits7,413 4.0 %6,452 4.1 %5,444 4.7 %
162(m) disallowance1,125 0.4 %686 0.4 %1,129 1.0 %
Tax exempt income(743)(0.4)%(835)(0.5)%(1,212)(1.0)%
General business credits(17,589)(9.5)%(26,945)(17.2)%(22,284)(19.4)%
Other, net(956)(0.3)%(1,511)(1.0)%(1,567)(1.4)%
Income tax expense$27,964 15.2 %$10,701 6.8 %$5,661 4.9 %
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows:
 
At September 30,
(Dollars in thousands)20222021
Balance at beginning of fiscal year$777 $1,091 
Additions (reductions) for tax positions related to prior years(132)(314)
Balance at end of fiscal year$645 $777 
v3.22.2.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)
 12 Months Ended
Sep. 30, 2022
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
Bank's Actual and Required Capital Amount and Ratios
The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.
 CompanyBankMinimum
to be Adequately Capitalized Under Prompt Corrective Action Provisions		Minimum to be Well Capitalized Under Prompt Corrective Action Provisions
At September 30, 2022
Tier 1 leverage capital ratio8.10 %8.19 %4.00 %5.00 %
Common equity Tier 1 capital ratio12.07 12.55 4.50 6.50 
Tier 1 capital ratio12.39 12.55 6.00 8.00 
Total capital ratio13.88 13.57 8.00 10.00 
At September 30, 2021    
Tier 1 leverage capital ratio7.67 %8.69 %4.00 %5.00 %
Common equity Tier 1 capital ratio12.12 14.11 4.50 6.50 
Tier 1 capital ratio12.46 14.13 6.00 8.00 
Total capital ratio15.45 15.38 8.00 10.00 
Reconciliation of Required Capital Amount and Ratios
The following table provides a reconciliation of the amounts included in the table above for the Company.
(Dollars in thousands)
Standardized Approach(1)
September 30, 2022
Total stockholders' equity$645,140 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities299,186 
LESS: Certain other intangible assets26,406 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards17,968 
LESS: Net unrealized gains (losses) on available for sale securities(211,600)
LESS: Noncontrolling interest(30)
ADD: Adoption of Accounting Standards Update 2016-132,689 
Common Equity Tier 1(1)
515,899 
Long-term borrowings and other instruments qualifying as Tier 113,661 
Tier 1 minority interest not included in common equity Tier 1 capital(20)
Total Tier 1 capital529,540 
Allowance for credit losses43,623 
Subordinated debentures, net of issuance costs20,000 
Total capital$593,163 
(1) Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.
Reconciliation of Tangible Common Equity
The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to total stockholders' equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.
(Dollars in thousands)At September 30, 2022
Total stockholders' equity$645,140 
LESS: Goodwill309,505 
LESS: Intangible assets25,691 
Tangible common equity309,944 
LESS: AOCI(213,080)
Tangible common equity excluding AOCI$523,024 
v3.22.2.2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 12 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 17. Segment Reporting to the Consolidated Financial Statements.
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Fiscal Year Ended September 30,20222021202220212022202120222021
Net interest income(1)
$98,366 $91,489 $187,209 $173,969 $21,749 $13,533 $307,324 $278,991 
Noninterest income:
Refund transfer product fees39,809 37,967 — — — — 39,809 37,967 
Refund advance fee income(1)
40,557 47,639 — — — — 40,557 47,639 
Payment card and deposit fees104,684 107,182 — — — — 104,684 107,182 
Other bank and deposit fees— — 1,020 917 29 22 1,049 939 
Rental income(1)
— 18 46,023 39,398 535 — 46,558 39,416 
Gain (loss) on sale of securities(1)
— — — — (1,287)6 (1,287)6 
Gain on trademarks(1)
— — — — 50,000 — 50,000 — 
Gain (loss) on sale of other(1)
— — 8,782 12,622 (13,702)(1,107)(4,920)11,515 
Other income(1)
4,202 2,902 12,587 8,876 568 14,462 17,357 26,240 
Total noninterest income189,252 195,708 68,412 61,813 36,143 13,383 293,807 270,904 
Revenue$287,618 $287,197 $255,621 $235,782 $57,892 $26,916 $601,131 $549,895 
(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.
v3.22.2.2
SEGMENT REPORTING (Tables)
 12 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information of Entity
The following tables present segment data for the Company:
Fiscal Year Ended September 30, 2022
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$98,366 $187,209 $21,749 $307,324 
Provision (reversal of) for credit losses30,680 14,674 (16,816)28,538 
Noninterest income189,252 68,412 36,143 293,807 
Noninterest expense99,589 128,904 156,782 385,275 
Income (loss) before income tax expense157,349 112,043 (82,074)187,318 
Total assets356,994 3,487,461 2,902,955 6,747,410 
Total goodwill87,145 222,360 — 309,505 
Total deposits5,695,776 8,965 161,296 5,866,037 

Fiscal Year Ended September 30, 2021
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$91,489 $173,969 $13,533 $278,991 
Provision (reversal of) for credit losses35,765 19,791 (5,790)49,766 
Noninterest income195,708 61,813 13,383 270,904 
Noninterest expense90,792 114,925 137,966 343,683 
Income (loss) before income tax expense160,640 101,066 (105,260)156,446 
Total assets354,441 3,208,889 3,127,320 6,690,650 
Total goodwill87,145 222,360 — 309,505 
Total deposits5,342,192 6,625 166,154 5,514,971 
Fiscal Year Ended September 30, 2020
(Dollars in thousands)ConsumerCommercialCorporate Services/OtherTotal
Net interest income$92,362 $151,649 $15,027 $259,038 
Provision for loan and lease losses21,807 29,296 13,673 64,776 
Noninterest income158,284 60,151 21,359 239,794 
Noninterest expense76,533 107,790 134,728 319,051 
Income (loss) before income tax expense152,306 74,714 (112,015)115,005 
Total assets276,998 2,854,088 2,960,988 6,092,074 
Total goodwill87,145 222,360 — 309,505 
Total deposits4,555,999 6,226 416,975 4,979,200 
v3.22.2.2
PARENT COMPANY FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2022
Condensed Financial Information Disclosure [Abstract]  
Condensed Statements of Financial Condition
Condensed Statements of Financial Condition
(Dollars in thousands)September 30, 2022September 30, 2021
ASSETS
Cash and cash equivalents$13,117 $3,296 
Investment securities held to maturity, at cost8,003 4,623 
Investment in subsidiaries665,172 956,584 
Other assets928 278 
Total assets$687,220 $964,781 
LIABILITIES AND STOCKHOLDERS' EQUITY  
LIABILITIES  
Subordinated debentures$33,661 $87,641 
Other liabilities8,419 5,256 
Total liabilities42,080 92,897 
STOCKHOLDERS' EQUITY  
Common stock288 317 
Additional paid-in capital617,403 604,484 
Retained earnings245,394 259,189 
Accumulated other comprehensive income (loss)(213,080)7,599 
Treasury stock, at cost(4,835)(860)
Total equity attributable to parent645,170 870,729 
Non-controlling interest(30)1,155 
Total stockholders' equity645,140 871,884 
Total liabilities and stockholders' equity$687,220 $964,781 
Condensed Statements of Operations
Condensed Statements of Operations
Fiscal Years Ended September 30,
(Dollars in thousands)202220212020
Interest expense$3,982 $4,915 $5,168 
Other expense1,062 1,287 1,256 
Total expense5,044 6,202 6,424 
Loss before income taxes and equity in undistributed net income of subsidiaries(5,044)(6,202)(6,424)
Income tax benefit(1,029)395 (3,638)
Loss before equity in undistributed net income of subsidiaries(4,015)(6,597)(2,786)
Equity in undistributed net income of subsidiaries159,652 147,895 107,476 
Other Income749 410 30 
Total Income160,401 148,305 107,506 
Net income attributable to parent$156,386 $141,708 $104,720 
Condensed Statements of Cash Flows
Condensed Statements of Cash Flows
Fiscal Year Ended September 30,
(Dollars in thousands)202220212020
Cash flows from operating activities:
Net income attributable to parent$156,386 $141,708 $104,720 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net 1,020 173 163 
Equity in undistributed net income of subsidiaries(159,652)(147,895)(107,476)
Net change in accrued interest receivable(15)— — 
Net change in other assets(636)3,030 (3,149)
Net change in accrued expenses and other liabilities3,163 (2,698)(2,660)
Cash dividend received229,200 104,000 118,000 
Stock compensation10,004 6,852 10,221 
Net cash provided by operating activities239,470 105,170 119,819 
Cash flows from investing activities:
Alternative investments(3,380)(3,415)(797)
Net cash (used in) investing activities(3,380)(3,415)(797)
Cash flows from financing activities:
Redemption of long-term borrowings(75,000)— — 
Proceeds from long-term borrowings20,000 — — 
Dividends paid on common stock(5,921)(6,400)(7,100)
Issuance of common stock due to exercise of stock options— — 266 
Issuance of common stock due to restricted stock1 — 2 
Issuance of common stock due to ESOP2,886 3,036 3,220 
Repurchases of common stock(168,235)(99,878)(118,738)
Net cash (used in) financing activities(226,269)(103,242)(122,350)
Net change in cash and cash equivalents9,821 (1,487)(3,328)
Cash and cash equivalents at beginning of fiscal year3,296 4,783 8,111 
Cash and cash equivalents at end of fiscal year$13,117 $3,296 $4,783 
v3.22.2.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Sep. 30, 2022
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 Quarter Ended
(Dollars in thousands, except per share data)December 31March 31June 30September 30
Fiscal Year 2022
Interest and dividend income$72,891 $85,177 $73,906 $80,222 
Interest expense1,278 1,377 1,755 462 
Net interest income71,613 83,800 72,151 79,760 
Provision (reversal of) for credit losses186 32,302 (1,302)(2,648)
Noninterest income86,591 109,766 53,994 43,456 
Net income attributable to parent61,324 49,251 22,391 23,420 
Earnings per common share    
Basic$2.00 $1.66 $0.76 $0.81 
Diluted2.00 1.66 0.76 0.81 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2021    
Interest and dividend income$68,146 $75,669 $69,983 $72,056 
Interest expense2,147 1,819 1,508 1,389 
Net interest income65,999 73,850 68,475 70,667 
Provision for loan and lease losses6,089 30,290 4,612 8,775 
Noninterest income45,455 113,453 62,453 49,542 
Net income attributable to parent28,037 59,066 38,701 15,903 
Earnings per common share    
Basic$0.84 $1.84 $1.21 $0.50 
Diluted0.84 1.84 1.21 0.50 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2020    
Interest and dividend income$77,625 $79,403 $67,406 $68,407 
Interest expense12,974 11,666 5,269 3,894 
Net interest income64,651 67,737 62,137 64,513 
Provision for loan and lease losses3,407 37,296 15,093 8,980 
Noninterest income37,483 120,513 41,048 40,750 
Net income attributable to parent21,068 52,304 18,190 13,158 
Earnings per common share    
Basic$0.56 $1.45 $0.53 $0.38 
Diluted0.56 1.45 0.53 0.38 
Dividend declared per share0.05 0.05 0.05 0.05 
v3.22.2.2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 Fair Value At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
Corporate securities$97,768 $— $97,768 — 
SBA securities2,344 — 2,344 — 
Obligations of states and political subdivisions263,783 — 263,783 — 
Non-bank qualified obligations of states and political subdivisions147,790 — 147,790 — 
Asset-backed securities1,348,997 — 1,348,997 — 
Mortgage-backed securities22,187 — 22,187 — 
Total debt securities AFS$1,882,869 $— $1,882,869 $— 
Common equities and mutual funds(1)
$2,874 $2,874 $— $— 
Non-marketable equity securities(2)
$7,212 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2022.
(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.
 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
Corporate securities$25,000 $— $25,000 $— 
SBA securities157,209 — 157,209 — 
Obligations of states and political subdivisions2,507 — 2,507 — 
Non-bank qualified obligations of states and political subdivisions268,295 — 268,295 — 
Asset-backed securities394,859 — 394,859 — 
Mortgage-backed securities1,017,029 — 1,017,029 — 
Total debt securities AFS$1,864,899 $— $1,864,899 $— 
Common equities and mutual funds(1)
$12,668 $12,668 $— $— 
Non-marketable equity securities(2)
$4,560 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2021.
(2) Consists of certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis:
 Fair Value At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss
Commercial finance$1,575 $— $— $1,575 
    Total loans and leases, net individually evaluated
    for credit loss		1,575 — — 1,575 
Foreclosed assets, net1 — — 1 
Total$1,576 $— $— $1,576 

 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$3,404 $— $— $3,404 
Community banking9,371 — — 9,371 
    Total impaired loans and leases, net12,775 — — 12,775 
Foreclosed assets, net2,077 — — 2,077 
Total$14,852 $— $— $14,852 
Quantitative Information about Level 3 Fair Value Measurements
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)Fair Value at September 30, 2022Fair Value at September 30, 2021Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$1,575 12,775 Market approach
Appraised values(1)
15% - 59%
Foreclosed assets, net$1 2,077 Market approach
Appraised values(1)
9% - 20%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs and other inputs in a range of 15% to 59%.
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 September 30, 2022
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$388,038 $388,038 $388,038 $— $— 
Debt securities available for sale1,882,869 1,882,869 — 1,882,869 — 
Debt securities held to maturity41,682 38,171 — 38,171 — 
Common equities and mutual funds(1)
2,874 2,874 2,874 — — 
Non-marketable equity securities(1)(2)
22,526 22,526 — 15,314 — 
Loans held for sale21,071 21,071 — 21,071 — 
Loans and leases3,529,280 3,525,803 — — 3,525,803 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable17,979 17,979 17,979 — — 
Financial liabilities
Deposits5,866,037 5,865,854 5,858,283 7,571 — 
Other short- and long-term borrowings36,028 35,986 — 35,986 — 
Accrued interest payable192 192 192 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2022.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2021
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$314,019 $314,019 $314,019 $— $— 
Debt securities available for sale1,864,899 1,864,899 — 1,864,899 — 
Debt securities held to maturity56,669 56,391 — 56,391 — 
Common equities and mutual funds(1)
12,668 12,668 12,668 — — 
Non-marketable equity securities(1)(2)
17,509 17,509 — 12,949 — 
Loans held for sale56,194 56,194 — 56,194 — 
Loans and leases3,607,815 3,616,646 — — 3,616,646 
Federal Reserve Bank and Federal Home Loan Bank stocks28,400 28,400 — 28,400 — 
Accrued interest receivable16,254 16,254 16,254 — — 
Financial liabilities
Deposits5,514,971 5,515,035 5,482,471 32,564 — 
Other short- and long-term borrowings92,834 93,938 — 93,938 — 
Accrued interest payable579 579 579 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2021.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
 12 Months Ended
Oct. 01, 2021
Sep. 30, 2022
USD ($)
joint_venture
segment
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Accounting Policies [Abstract]        
Contribution expense to profit sharing plan included in compensation and benefits   $ 100,000 $ 3,100,000 $ 3,100,000
Employee contributions matched 100.00%      
Percent of eligible compensation contributed 6.00%      
Investment Holdings [Line Items]        
Number of joint venture LLC's | joint_venture   5    
Joint venture ownership interest in each of the joint ventures (as a percentage)   80.00%    
Number of reporting segments | segment   3    
Terms of FHLB advances   90 days    
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank)   $ 0 0  
Impairment   0 0 0
Loans outstanding with individuals   0 0  
Allowance for credit losses   45,947,000 68,281,000 56,188,000
SECURITIES        
Other-than-temporary impairment recorded   0    
Equity Investments        
Impairment loss   0    
Net income before noncontrolling interest   159,354,000 145,745,000 $ 109,344,000
Transfers        
Aggregate unpaid balance of loans serviced for others   336,600,000 307,300,000  
Equity Method Investment, Nonconsolidated Investee        
Equity Investments        
Net income before noncontrolling interest   12,863    
FRB        
Investment Holdings [Line Items]        
Interest bearing deposits   294,400,000    
FHLB        
Investment Holdings [Line Items]        
Interest bearing deposits   $ 1,300,000    
Minimum | Other Assets Investments        
Equity Investments        
Equity method investment, ownership percentage   5.00%    
Maximum | Other Assets Investments        
Equity Investments        
Equity method investment, ownership percentage   25.00%    
Other Assets        
Equity Investments        
Equity method investments   $ 2,900,000 3,100,000  
Other Assets | Accounting Standards Update 2016-01        
Equity Investments        
Impairment loss     2,600,000  
Alternative investment   15,300,000 12,900,000  
Alternative investment, fair value increase (decrease)   (1,000,000) 8,000,000  
Fair Value Measured at Net Asset Value Per Share | Other Assets        
Equity Investments        
Equity method investments   $ 7,200,000 $ 4,600,000  
First Midwest Financial Capital Trust I        
Investment Holdings [Line Items]        
Percentage of interest in subsidiary   100.00%    
Buildings        
Property, Plant and Equipment [Line Items]        
Premises, furniture and equipment, estimated useful lives   39 years    
Software Development        
Property, Plant and Equipment [Line Items]        
Premises, furniture and equipment, estimated useful lives   3 years    
Leasehold Improvements | Minimum        
Property, Plant and Equipment [Line Items]        
Premises, furniture and equipment, estimated useful lives   2 years    
Leasehold Improvements | Maximum        
Property, Plant and Equipment [Line Items]        
Premises, furniture and equipment, estimated useful lives   15 years    
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets of VIE's (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Variable Interest Entity [Line Items]      
Cash and cash equivalents $ 388,038 $ 314,019  
Loans and leases 3,536,305 3,609,563  
Allowance for credit losses (45,947) (68,281) $ (56,188)
Accrued interest receivable 17,979 16,254  
Other assets 295,324 212,276  
Total assets 6,747,410 6,690,650 $ 6,092,074
Accrued expenses and other liabilities 200,205 210,961  
Noncontrolling interest (30) 1,155  
Net assets less noncontrolling assets 645,170 $ 870,729  
Variable Interest Entity, Primary Beneficiary      
Variable Interest Entity [Line Items]      
Cash and cash equivalents 604    
Loans and leases 81,881    
Allowance for credit losses (3,720)    
Accrued interest receivable 345    
Foreclosed real estate and repossessed assets, net 1    
Other assets 1,727    
Total assets 80,838    
Accrued expenses and other liabilities 1,280    
Noncontrolling interest (30)    
Net assets less noncontrolling assets $ 79,588    
v3.22.2.2
SIGNIFICANT EVENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 07, 2021
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Loss Contingencies [Line Items]                                
Proceeds from sale of trademarks                           $ 50,000 $ 0 $ 0
Noninterest income   $ 43,456 $ 53,994 $ 109,766 $ 86,591 $ 49,542 $ 62,453 $ 113,453 $ 45,455 $ 40,750 $ 41,048 $ 120,513 $ 37,483 293,807 $ 270,904 $ 239,794
Purchase agreement receivable $ 10,000                              
Noninterest rebranding expense                           13,100    
Rebranding                                
Loss Contingencies [Line Items]                                
Cash received in purchase agreement 60,000                              
Proceeds from sale of trademarks 50,000                              
Noninterest income                           $ 50,000    
Remaining consideration to be paid $ 10,000                              
v3.22.2.2
SECURITIES - Narrative (Details)
 12 Months Ended
Sep. 30, 2022
USD ($)
security
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Debt Securities, Available-for-sale [Line Items]      
Number of securities in an unrealized loss position | security 195    
Securities pledged as collateral for public funds on deposit $ 0 $ 0  
Securities pledged as collateral for individual, trust, and estate deposits 0 0  
Equity securities without readily determinable fair value, amount 18,200,000 16,000,000  
Federal reserve bank stock 19,700,000 19,700,000  
Federal Reserve Bank and Federal Home Loan Bank Stock, at cost 9,100,000 8,700,000  
Loans 3,490,358,000 3,541,282,000  
Impairment recognized 0 2,600,000 $ 1,300,000
Estimated Fair Value      
Debt Securities, Available-for-sale [Line Items]      
Loans and leases 3,525,803,000 3,616,646,000  
Marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 2,900,000 12,700,000  
Unrealized gains (losses) on marketable equity securities (3,800,000) (3,400,000)  
Realized gains (loss) on marketable equity securities 300,000    
Non-marketable      
Debt Securities, Available-for-sale [Line Items]      
Equity securities 7,200,000 4,600,000  
Unrealized gains (losses) on marketable equity securities 1,100,000 600,000  
Realized gains (loss) on marketable equity securities (1,700,000)    
Asset Pledged as Collateral      
Debt Securities, Available-for-sale [Line Items]      
Investments 924,200,000 236,100,000  
Loans 0 0  
Asset Pledged as Collateral with Right | Estimated Fair Value | Short-term FHLB advances      
Debt Securities, Available-for-sale [Line Items]      
Loans and leases 804,000,000 644,700,000  
Federal Home Loan Bank      
Debt Securities, Available-for-sale [Line Items]      
Interest and dividend income from FLHB 300,000 200,000 $ 800,000
Federal Reserve Bank      
Debt Securities, Available-for-sale [Line Items]      
Interest and dividend income from FLHB $ 1,200,000 $ 1,500,000  
v3.22.2.2
SECURITIES - Schedule of Securities Available (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Available For Sale    
Amortized Cost $ 2,165,719 $ 1,855,084
Fair Value 1,882,869 1,864,899
Amortized Cost    
Due in one year or less 718 810
Due after one year through five years 9,921 13,026
Due after five years through ten years 89,921 50,785
Due after ten years 483,707 773,985
Total Amortized Cost 584,267 838,606
Mortgage-backed securities 1,581,452 1,016,478
Total securities AFS, at fair value 2,165,719 1,855,084
Fair Value    
Due in one year or less 715 822
Due after one year through five years 9,395 13,378
Due after five years through ten years 81,819 52,357
Due after ten years 441,943 781,313
Total Fair Value 533,872 847,870
Mortgage-backed securities 1,348,997 1,017,029
Total securities AFS, at fair value 1,882,869 1,864,899
Held To Maturity    
Amortized Cost 41,682 56,669
Gross Unrealized Gains 0 193
Gross Unrealized (Losses) (3,511) (471)
Fair Value 38,171 56,391
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 6,252 26,096
OVER 12 MONTHS, Fair Value 31,919 0
TOTAL, Fair Value 38,171 26,096
LESS THAN 12 MONTHS, Unrealized (Losses) (621) (471)
OVER 12 MONTHS, Unrealized (Losses) (2,890) 0
TOTAL, Unrealized (Losses) (3,511) (471)
AMORTIZED COST [Abstract]    
Due after ten years 39,093 52,944
Total Amortized Cost 39,093 52,944
Mortgage-backed securities 2,589 3,725
Total securities HTM, at cost 41,682 56,669
FAIR VALUE [Abstract]    
Due after ten years 35,903 52,576
Total Fair Value 35,903 52,576
Mortgage-backed securities 2,268 3,815
Total securities HTM, at cost 38,171 56,391
Corporate securities    
Available For Sale    
Amortized Cost 25,000 25,000
Gross Unrealized Gains 0 0
Gross Unrealized (Losses) (2,813) 0
Fair Value 22,187 25,000
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 0  
Unrealized (Losses), Less than 12 months 0  
Fair Value, 12 Months or Longer 22,187  
Unrealized (Losses), 12 Months or Longer (2,813)  
Fair Value, Total 22,187  
Unrealized (Losses), Total (2,813)  
Amortized Cost    
Total securities AFS, at fair value 25,000 25,000
Fair Value    
Total securities AFS, at fair value 22,187 25,000
SBA securities    
Available For Sale    
Amortized Cost 105,238 151,958
Gross Unrealized Gains 0 5,251
Gross Unrealized (Losses) (7,470) 0
Fair Value 97,768 157,209
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 97,767  
Unrealized (Losses), Less than 12 months (7,470)  
Fair Value, 12 Months or Longer 0  
Unrealized (Losses), 12 Months or Longer 0  
Fair Value, Total 97,767  
Unrealized (Losses), Total (7,470)  
Amortized Cost    
Total securities AFS, at fair value 105,238 151,958
Fair Value    
Total securities AFS, at fair value 97,768 157,209
Obligations of states and political subdivisions    
Available For Sale    
Amortized Cost 2,469 2,497
Gross Unrealized Gains 0 10
Gross Unrealized (Losses) (125) 0
Fair Value 2,344 2,507
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 2,345  
Unrealized (Losses), Less than 12 months (125)  
Fair Value, 12 Months or Longer 0  
Unrealized (Losses), 12 Months or Longer 0  
Fair Value, Total 2,345  
Unrealized (Losses), Total (125)  
Amortized Cost    
Total securities AFS, at fair value 2,469 2,497
Fair Value    
Total securities AFS, at fair value 2,344 2,507
Non-bank qualified obligations of states and political subdivisions    
Available For Sale    
Amortized Cost 290,754 266,048
Gross Unrealized Gains 0 3,347
Gross Unrealized (Losses) (26,971) (1,100)
Fair Value 263,783 268,295
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 195,816 101,046
Unrealized (Losses), Less than 12 months (19,743) (1,100)
Fair Value, 12 Months or Longer 67,967 0
Unrealized (Losses), 12 Months or Longer (7,228) 0
Fair Value, Total 263,783 101,046
Unrealized (Losses), Total (26,971) (1,100)
Amortized Cost    
Total securities AFS, at fair value 290,754 266,048
Fair Value    
Total securities AFS, at fair value 263,783 268,295
Held To Maturity    
Amortized Cost 39,093 52,944
Gross Unrealized Gains 0 103
Gross Unrealized (Losses) (3,190) (471)
Fair Value 35,903 52,576
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 3,984 26,096
OVER 12 MONTHS, Fair Value 31,919 0
TOTAL, Fair Value 35,903 26,096
LESS THAN 12 MONTHS, Unrealized (Losses) (300) (471)
OVER 12 MONTHS, Unrealized (Losses) (2,890) 0
TOTAL, Unrealized (Losses) (3,190) (471)
AMORTIZED COST [Abstract]    
Total securities HTM, at cost 39,093 52,944
FAIR VALUE [Abstract]    
Total securities HTM, at cost 35,903 52,576
Asset-backed securities    
Available For Sale    
Amortized Cost 160,806 393,103
Gross Unrealized Gains 0 3,003
Gross Unrealized (Losses) (13,016) (1,247)
Fair Value 147,790 394,859
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 64,886 127,110
Unrealized (Losses), Less than 12 months (1,838) (283)
Fair Value, 12 Months or Longer 82,904 91,553
Unrealized (Losses), 12 Months or Longer (11,178) (964)
Fair Value, Total 147,790 218,663
Unrealized (Losses), Total (13,016) (1,247)
Amortized Cost    
Total securities AFS, at fair value 160,806 393,103
Fair Value    
Total securities AFS, at fair value 147,790 394,859
Mortgage-backed securities    
Available For Sale    
Amortized Cost 1,581,452 1,016,478
Gross Unrealized Gains 0 9,728
Gross Unrealized (Losses) (232,455) (9,177)
Fair Value 1,348,997 1,017,029
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 816,657 759,035
Unrealized (Losses), Less than 12 months (106,583) (7,418)
Fair Value, 12 Months or Longer 532,340 60,792
Unrealized (Losses), 12 Months or Longer (125,872) (1,759)
Fair Value, Total 1,348,997 819,827
Unrealized (Losses), Total (232,455) (9,177)
Amortized Cost    
Total securities AFS, at fair value 1,581,452 1,016,478
Fair Value    
Total securities AFS, at fair value 1,348,997 1,017,029
Held To Maturity    
Amortized Cost 2,589 3,725
Gross Unrealized Gains 0 90
Gross Unrealized (Losses) (321) 0
Fair Value 2,268 3,815
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 2,268  
OVER 12 MONTHS, Fair Value 0  
TOTAL, Fair Value 2,268  
LESS THAN 12 MONTHS, Unrealized (Losses) (321)  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Unrealized (Losses) (321)  
AMORTIZED COST [Abstract]    
Total securities HTM, at cost 2,589 3,725
FAIR VALUE [Abstract]    
Total securities HTM, at cost 2,268 3,815
Total debt securities AFS    
Available For Sale    
Amortized Cost 2,165,719 1,855,084
Gross Unrealized Gains 0 21,339
Gross Unrealized (Losses) (282,850) (11,524)
Fair Value 1,882,869 1,864,899
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 1,177,471 987,191
Unrealized (Losses), Less than 12 months (135,759) (8,801)
Fair Value, 12 Months or Longer 705,398 152,345
Unrealized (Losses), 12 Months or Longer (147,091) (2,723)
Fair Value, Total 1,882,869 1,139,536
Unrealized (Losses), Total (282,850) (11,524)
Amortized Cost    
Total securities AFS, at fair value 2,165,719 1,855,084
Fair Value    
Total securities AFS, at fair value $ 1,882,869 $ 1,864,899
v3.22.2.2
SECURITIES - Activities Related to Sale (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Available For Sale      
Proceeds from sales $ 265,951 $ 50,468 $ 4,904
Gross gains on sales 1,742 179 51
Gross losses on sales 1,588 173 0
Net gain (loss) on securities AFS $ 154 $ 6 $ 51
v3.22.2.2
LOANS AND LEASES, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases $ 3,529,280 $ 3,607,815  
Net deferred loan origination costs 7,025 1,748  
Total gross loans and leases 3,536,305 3,609,563  
Allowance for credit losses (45,947) (68,281) $ (56,188)
Total loans and leases, net 3,490,358 3,541,282  
Consumer finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total gross loans and leases 169,700 252,900  
Tax services      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total gross loans and leases 9,100 10,400  
National Lending | Term lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 1,090,289 961,019  
Allowance for credit losses (24,621) (29,351) (15,211)
National Lending | Asset based lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 351,696 300,225  
Allowance for credit losses (1,050) (1,726) (1,406)
National Lending | Factoring      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 372,595 363,670  
Allowance for credit losses (6,556) (3,997) (3,027)
National Lending | Lease financing      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 210,692 266,050  
Allowance for credit losses (5,902) (7,629) (7,023)
National Lending | Insurance premium finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 479,754 428,867  
Allowance for credit losses (1,450) (1,394) (2,129)
National Lending | SBA/USDA      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 359,238 247,756  
Allowance for credit losses (3,263) (2,978) (940)
National Lending | Other commercial finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 159,409 157,908  
Allowance for credit losses (1,310) (1,168) (182)
National Lending | Commercial finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 3,023,673 2,725,495  
Allowance for credit losses (44,152) (48,243) (29,918)
National Lending | Consumer credit products      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 144,353 129,251  
Allowance for credit losses (1,400) (1,242) (845)
National Lending | Other consumer finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 25,306 123,606  
Allowance for credit losses (63) (6,112) (2,821)
National Lending | Consumer finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 169,659 252,857  
Allowance for credit losses (1,463) (7,354) (3,666)
National Lending | Tax services      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 9,098 10,405  
Allowance for credit losses (5) (2) (2)
National Lending | Warehouse finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 326,850 419,926  
Allowance for credit losses (327) (420) (294)
Community Banking      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans and leases 0 199,132  
Allowance for credit losses $ 0 $ (12,262) $ (22,308)
v3.22.2.2
LOANS AND LEASES, NET - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases to held for sale $ 169,045,000 $ 188,638,000 $ 542,101,000
Originations of loans held-for-sale 985,330,000 601,481,000 $ 98,798,000
Proceeds from held-for-sale loans 1,060,000,000.00 890,300,000  
Gain on sale of held for sale loans 3,700,000 8,600,000  
Loans and leases 3,536,305,000 3,609,563,000  
Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 2,548,929,000 2,468,557,000  
Asset Pledged as Collateral | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 120,700,000    
Community Bank      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Servicing fee expense 200,000 3,300,000  
Additional loans sold $ 192,500,000 308,100,000  
Covid-19 Pandemic      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trial modifications, threshold of past due days prior to onset of pandemic effects 30 days    
Loans and lease receivables deferred income $ 0    
Covid-19 Pandemic | Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trial modifications, payment deferral period 30 days    
Covid-19 Pandemic | Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Trial modifications, payment deferral period 6 months    
Community Banking | Pass      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases   10,314,000  
Other Consumer Finance and SBA/USDA Loans | National Lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originations of loans held-for-sale $ 985,300,000    
Other Consumer Finance, SBA/USDA and Consumer Credit Product Loans | National Lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Originations of loans held-for-sale   601,500,000  
Tax services      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 9,100,000 10,400,000  
Commercial finance | National Lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Financing receivable, TDR, postmodification 10,500,000 5,900,000  
Loans modified in TDR, subsequent default 5,200,000 3,400,000  
Consumer finance      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and leases 169,700,000 252,900,000  
Consumer finance | National Lending      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Financing receivable, TDR, postmodification 900,000 300,000  
Loans modified in TDR, subsequent default $ 1,100,000 $ 300,000  
v3.22.2.2
LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Loans Purchased      
Loans held for investment $ 115,353 $ 311,332  
Loans Sold      
Loans held for sale 1,059,361 890,340 $ 319,123
Loans held for investment 1,182,601 905,793  
National Lending | Commercial finance      
Loans Purchased      
Loans held for investment 3,098 0  
Loans Sold      
Loans held for sale 50,848 89,276  
Loans held for investment 15,549 0  
National Lending | Warehouse finance      
Loans Purchased      
Loans held for investment 112,255 308,014  
National Lending | Consumer finance      
Loans Sold      
Loans held for sale 855,291 494,585  
Loans held for investment 77,456 0  
Community Banking      
Loans Purchased      
Loans held for investment 0 3,318  
Loans Sold      
Loans held for sale 153,222 308,082  
Loans held for investment $ 30,235 $ 13,850  
v3.22.2.2
LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Loans and Leases Receivable Disclosure [Abstract]    
Carrying amount $ 216,880 $ 278,341
Unguaranteed residual assets 13,037 14,393
Unamortized initial direct costs 295 490
Unearned income (19,225) (26,684)
Total net investment in direct financing and sales-type leases 210,987 266,540
Interest income - loans and leases    
Interest income on net investments in direct financing and sales-type leases 17,081 22,876
Lease income from operating lease payments 46,017 39,553
Profit recorded on commencement date on sales-type leases 0 337
Other 5,982 4,986
Total leasing and equipment finance noninterest income 51,999 44,876
Total lease income 69,080 $ 67,752
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
2023 95,608  
2024 66,344  
2025 34,657  
2026 12,714  
2027 5,495  
Thereafter 2,062  
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 216,880  
Third-party residual value guarantees 0  
Total carrying amount of direct financing and sales-type leases $ 216,880  
v3.22.2.2
LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance $ 68,281 $ 56,188
Provision for credit losses 28,862 49,939
Charge-offs (61,061) (57,273)
Recoveries 9,865 6,654
Ending balance 45,947 68,281
Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 0 12,773
Ending balance   0
Unfunded Loan Commitment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 690 32
Provision for credit losses (324) (173)
Charge-offs 0 0
Recoveries 0 0
Ending balance 366 690
Unfunded Loan Commitment | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   831
Total Committed Loans    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 68,971 56,220
Provision for credit losses 28,538 49,766
Charge-offs (61,061) (57,273)
Recoveries 9,865 6,654
Ending balance 46,313 68,971
Total Committed Loans | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   13,604
National Lending | Term lending    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 29,351 15,211
Provision for credit losses 4,850 16,944
Charge-offs (12,629) (14,090)
Recoveries 3,049 1,287
Ending balance 24,621 29,351
National Lending | Term lending | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   9,999
National Lending | Asset based lending    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 1,726 1,406
Provision for credit losses (1,092) 933
Charge-offs (16) (1,200)
Recoveries 432 423
Ending balance 1,050 1,726
National Lending | Asset based lending | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   164
National Lending | Factoring    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 3,997 3,027
Provision for credit losses 11,699 (1,192)
Charge-offs (11,057) 0
Recoveries 1,917 1,175
Ending balance 6,556 3,997
National Lending | Factoring | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   987
National Lending | Lease financing    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 7,629 7,023
Provision for credit losses (2,062) 3,758
Charge-offs (301) (2,969)
Recoveries 636 373
Ending balance 5,902 7,629
National Lending | Lease financing | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   (556)
National Lending | Insurance premium finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 1,394 2,129
Provision for credit losses 597 (555)
Charge-offs (767) (1,192)
Recoveries 226 1,977
Ending balance 1,450 1,394
National Lending | Insurance premium finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   (965)
National Lending | SBA/USDA    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 2,978 940
Provision for credit losses 863 (703)
Charge-offs (652) 0
Recoveries 74 21
Ending balance 3,263 2,978
National Lending | SBA/USDA | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   2,720
National Lending | Other commercial finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 1,168 182
Provision for credit losses 142 622
Charge-offs 0 0
Recoveries 0 0
Ending balance 1,310 1,168
National Lending | Other commercial finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   364
National Lending | Commercial finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 48,243 29,918
Provision for credit losses 14,997 19,807
Charge-offs (25,422) (19,451)
Recoveries 6,334 5,256
Ending balance 44,152 48,243
National Lending | Commercial finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   12,713
National Lending | Consumer credit products    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 1,242 845
Provision for credit losses 158 397
Charge-offs 0 0
Recoveries 0 0
Ending balance 1,400 1,242
National Lending | Consumer credit products | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   0
National Lending | Other consumer finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 6,112 2,821
Provision for credit losses (1,607) 297
Charge-offs (4,787) (3,324)
Recoveries 345 320
Ending balance 63 6,112
National Lending | Other consumer finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   5,998
National Lending | Consumer finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 7,354 3,666
Provision for credit losses (1,449) 694
Charge-offs (4,787) (3,324)
Recoveries 345 320
Ending balance 1,463 7,354
National Lending | Consumer finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   5,998
National Lending | Tax services    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 2 2
Provision for credit losses 28,093 33,276
Charge-offs (30,852) (34,354)
Recoveries 2,762 1,078
Ending balance 5 2
National Lending | Tax services | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   0
National Lending | Warehouse finance    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 420 294
Provision for credit losses (93) 127
Charge-offs 0 0
Recoveries 0 0
Ending balance 327 420
National Lending | Warehouse finance | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   (1)
Community Banking    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance 12,262 22,308
Provision for credit losses (12,686) (3,965)
Charge-offs 0 (144)
Recoveries 424 0
Ending balance $ 0 12,262
Community Banking | Adjustment    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning balance   $ (5,937)
v3.22.2.2
LOANS AND LEASES, NET - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases $ 3,536,305 $ 3,609,563
Consumer finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases 169,700 252,900
Tax services    
Financing Receivable, Credit Quality Indicator [Line Items]    
Loans and leases 9,100 10,400
Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 792,936 1,012,088
2021 404,657 303,727
2020 203,100 105,274
2019 163,965 60,727
2018 153,405 20,605
Prior 127,139 66,655
Revolving Loans and Leases 703,727 899,481
Loans and leases 2,548,929 2,468,557
Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 54,877 85,369
2021 55,259 140,131
2020 56,602 47,620
2019 19,055 37,132
2018 23,976 9,057
Prior 10,660 3,926
Revolving Loans and Leases 249,209 70,056
Loans and leases 469,638 393,291
Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 9,820 21,882
2021 31,287 55,606
2020 16,944 45,099
2019 4,211 5,826
2018 3,495 307
Prior 3,053 1,552
Revolving Loans and Leases 55,444 76,171
Loans and leases 124,254 206,443
Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 15,707 19,584
2021 46,732 25,613
2020 28,345 90,900
2019 30,539 63,338
2018 12,796 17,891
Prior 26,800 8,762
Revolving Loans and Leases 42,761 38,113
Loans and leases 203,680 264,201
Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 333 310
2021 584 1,822
2020 1,749 4,158
2019 960 5,770
2018 204 1
Prior 192 0
Revolving Loans and Leases 0 0
Loans and leases 4,022 12,061
Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 873,673 1,139,233
2021 538,519 526,899
2020 306,740 293,051
2019 218,730 172,793
2018 193,876 47,861
Prior 167,844 80,895
Revolving Loans and Leases 1,051,141 1,083,821
Loans and leases 3,350,523 3,344,553
National Lending | Pass | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 246,627 362,443
2021 240,018 192,305
2020 105,170 63,708
2019 60,417 34,381
2018 89,072 3,195
Prior 61,229 1,236
Revolving Loans and Leases 0 0
Loans and leases 802,533 657,268
National Lending | Pass | Asset based lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 154,494 185,432
Loans and leases 154,494 185,432
National Lending | Pass | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 254,883 294,124
Loans and leases 254,883 294,124
National Lending | Pass | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 7,407 54,434
2021 38,818 73,629
2020 31,408 17,153
2019 26,552 7,511
2018 12,361 1,857
Prior 823 203
Revolving Loans and Leases 0 0
Loans and leases 117,369 154,787
National Lending | Pass | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 478,504 428,131
2021 307 144
2020 8 9
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 478,819 428,284
National Lending | Pass | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 54,512 110,122
2021 111,907 37,006
2020 40,474 14,461
2019 56,538 12,760
2018 28,874 6,525
Prior 24,305 3,779
Revolving Loans and Leases 0 0
Loans and leases 316,610 184,653
National Lending | Pass | Other commercial finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 5,886 56,957
2021 13,607 642
2020 26,040 5,786
2019 20,458 6,075
2018 23,098 3,345
Prior 40,782 60,965
Revolving Loans and Leases 0 0
Loans and leases 129,871 133,770
National Lending | Pass | Warehouse finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 294,350 419,926
Loans and leases 294,350 419,926
National Lending | Watch | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 45,539 63,046
2021 24,318 71,701
2020 45,052 32,941
2019 11,698 21,419
2018 21,077 76
Prior 9,799 3,628
Revolving Loans and Leases 0 0
Loans and leases 157,483 192,811
National Lending | Watch | Asset based lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 162,990 52,072
Loans and leases 162,990 52,072
National Lending | Watch | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 86,219 17,984
Loans and leases 86,219 17,984
National Lending | Watch | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 8,799 22,061
2021 17,098 20,455
2020 10,284 9,274
2019 6,655 2,739
2018 2,899 1,454
Prior 151 0
Revolving Loans and Leases 0 0
Loans and leases 45,886 55,983
National Lending | Watch | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 539 262
2021 7 5
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 546 267
National Lending | Watch | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 13,836 20,431
2020 1,266 1,996
2019 702 1,670
2018 0 1,394
Prior 710 298
Revolving Loans and Leases 0 0
Loans and leases 16,514 25,789
National Lending | Watch | Other commercial finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   17,404
2020   3,409
2019   451
2018   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   21,264
National Lending | Special Mention | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 9,500 6,422
2021 24,885 26,673
2020 14,300 4,821
2019 2,861 932
2018 619 70
Prior 242 633
Revolving Loans and Leases 0 0
Loans and leases 52,407 39,551
National Lending | Special Mention | Asset based lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 13,770 43,135
Loans and leases 13,770 43,135
National Lending | Special Mention | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 9,174 33,035
Loans and leases 9,174 33,035
National Lending | Special Mention | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 151 15,402
2021 6,151 20,595
2020 2,644 4,148
2019 481 1,546
2018 2,876 61
Prior 2,811 0
Revolving Loans and Leases 0 0
Loans and leases 15,114 41,752
National Lending | Special Mention | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 169 58
2021 40 5
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 209 63
National Lending | Special Mention | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 211 8,333
2020 0 214
2019 869 3,348
2018 0 177
Prior 0 919
Revolving Loans and Leases 0 0
Loans and leases 1,080 12,991
National Lending | Special Mention | Warehouse finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0  
2021 0  
2020 0  
2019 0  
2018 0  
Prior 0  
Revolving Loans and Leases 32,500  
Loans and leases 32,500  
National Lending | Substandard | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 10,627 18,569
2021 16,694 16,810
2020 12,248 26,920
2019 23,266 3,529
2018 10,457 928
Prior 2,255 641
Revolving Loans and Leases 0 0
Loans and leases 75,547 67,397
National Lending | Substandard | Asset based lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 20,442 19,586
Loans and leases 20,442 19,586
National Lending | Substandard | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 22,319 18,527
Loans and leases 22,319 18,527
National Lending | Substandard | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 825 479
2021 9,486 4,765
2020 11,819 4,981
2019 7,273 831
2018 1,245 25
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 30,648 11,081
National Lending | Substandard | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 106 68
2021 46 107
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 152 175
National Lending | Substandard | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 4,149 0
2021 10,968 3,812
2020 4,278 9,550
2019 0 8,079
2018 1,094 2,169
Prior 4,545 713
Revolving Loans and Leases 0 0
Loans and leases 25,034 24,323
National Lending | Substandard | Other commercial finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 466
2021 9,538 0
2020 0 0
2019 0 273
2018 0 837
Prior 20,000 1,299
Revolving Loans and Leases 0 0
Loans and leases 29,538 2,875
National Lending | Doubtful | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 175 252
2021 407 1,673
2020 469 1,756
2019 872 311
2018 204 0
Prior 192 0
Revolving Loans and Leases 0 0
Loans and leases 2,319 3,992
National Lending | Doubtful | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 144 0
2021 163 6
2020 1,280 2,402
2019 88 38
2018 0 1
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 1,675 2,447
National Lending | Doubtful | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 14 58
2021 14 20
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 28 78
National Lending | Total | Term lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 312,468 450,732
2021 306,322 309,162
2020 177,239 130,146
2019 99,114 60,572
2018 121,429 4,269
Prior 73,717 6,138
Revolving Loans and Leases 0 0
Loans and leases 1,090,289 961,019
National Lending | Total | Asset based lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 351,696 300,225
Loans and leases 351,696 300,225
National Lending | Total | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 372,595 363,670
Loans and leases 372,595 363,670
National Lending | Total | Lease financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 17,326 92,376
2021 71,716 119,450
2020 57,435 37,958
2019 41,049 12,665
2018 19,381 3,398
Prior 3,785 203
Revolving Loans and Leases 0 0
Loans and leases 210,692 266,050
National Lending | Total | Insurance premium finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 479,332 428,577
2021 414 281
2020 8 9
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 479,754 428,867
National Lending | Total | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 58,661 110,122
2021 136,922 69,582
2020 46,018 26,221
2019 58,109 25,857
2018 29,968 10,265
Prior 29,560 5,709
Revolving Loans and Leases 0 0
Loans and leases 359,238 247,756
National Lending | Total | Other commercial finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 5,886 57,423
2021 23,145 18,046
2020 26,040 9,195
2019 20,458 6,799
2018 23,098 4,182
Prior 60,782 62,264
Revolving Loans and Leases 0 0
Loans and leases 159,409 157,909
National Lending | Total | Warehouse finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 326,850 419,926
Loans and leases $ 326,850 419,926
Community Banking | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   0
2020   4,159
2019   0
2018   5,683
Prior   472
Revolving Loans and Leases   0
Loans and leases   10,314
Community Banking | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   10,134
2020   0
2019   10,854
2018   6,133
Prior   0
Revolving Loans and Leases   0
Loans and leases   27,121
Community Banking | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   0
2020   35,916
2019   0
2018   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   35,916
Community Banking | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   119
2020   49,449
2019   50,626
2018   13,933
Prior   6,110
Revolving Loans and Leases   0
Loans and leases   120,237
Community Banking | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   122
2020   0
2019   5,422
2018   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   5,544
Community Banking | Total    
Financing Receivable, Credit Quality Indicator [Line Items]    
2022   0
2021   10,375
2020   89,524
2019   66,902
2018   25,749
Prior   6,582
Revolving Loans and Leases   0
Loans and leases   $ 199,132
v3.22.2.2
LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 3,536,305 $ 3,609,563
Consumer finance    
Financing Receivable, Past Due [Line Items]    
Loans and leases 169,700 252,900
Tax services    
Financing Receivable, Past Due [Line Items]    
Loans and leases 9,100 10,400
Accruing and Nonaccruing Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,550,351 3,664,009
Accruing and Nonaccruing Loans and Leases | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   199,132
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 28,203 19,945
Accruing and Nonaccruing Loans and Leases | 30-59 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   0
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,817 8,200
Accruing and Nonaccruing Loans and Leases | 60-89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   0
Accruing and Nonaccruing Loans and Leases | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 19,534 24,637
Accruing and Nonaccruing Loans and Leases | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   0
Accruing and Nonaccruing Loans and Leases | Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 56,554 52,782
Accruing and Nonaccruing Loans and Leases | Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   0
Accruing and Nonaccruing Loans and Leases | Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,493,797 3,611,227
Accruing and Nonaccruing Loans and Leases | Not Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   199,132
Accruing and Nonaccruing Loans and Leases | Loans held for sale | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 21,071 56,194
Accruing and Nonaccruing Loans and Leases | Loans held for sale | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Loans held for sale | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Loans held for sale | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Loans held for sale | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Loans held for sale | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 21,071 56,194
Accruing and Nonaccruing Loans and Leases | Term lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,090,289 961,019
Accruing and Nonaccruing Loans and Leases | Term lending | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 14,066 11,879
Accruing and Nonaccruing Loans and Leases | Term lending | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,576 2,703
Accruing and Nonaccruing Loans and Leases | Term lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,458 5,452
Accruing and Nonaccruing Loans and Leases | Term lending | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 21,100 20,034
Accruing and Nonaccruing Loans and Leases | Term lending | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,069,189 940,985
Accruing and Nonaccruing Loans and Leases | Asset based lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 351,696 300,225
Accruing and Nonaccruing Loans and Leases | Asset based lending | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Asset based lending | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Asset based lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 68 0
Accruing and Nonaccruing Loans and Leases | Asset based lending | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 68 0
Accruing and Nonaccruing Loans and Leases | Asset based lending | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 351,628 300,225
Accruing and Nonaccruing Loans and Leases | Factoring | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 372,595 363,670
Accruing and Nonaccruing Loans and Leases | Factoring | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Factoring | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Factoring | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Factoring | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Factoring | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 372,595 363,670
Accruing and Nonaccruing Loans and Leases | Lease financing | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 210,692 266,050
Accruing and Nonaccruing Loans and Leases | Lease financing | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,265 4,909
Accruing and Nonaccruing Loans and Leases | Lease financing | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,253 3,336
Accruing and Nonaccruing Loans and Leases | Lease financing | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,714 8,401
Accruing and Nonaccruing Loans and Leases | Lease financing | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 12,232 16,646
Accruing and Nonaccruing Loans and Leases | Lease financing | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 198,460 249,404
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 479,754 428,867
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,550 1,415
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,379 375
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,628 599
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 5,557 2,389
Accruing and Nonaccruing Loans and Leases | Insurance premium finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 474,197 426,478
Accruing and Nonaccruing Loans and Leases | SBA/USDA | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 359,238 247,756
Accruing and Nonaccruing Loans and Leases | SBA/USDA | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 66
Accruing and Nonaccruing Loans and Leases | SBA/USDA | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 974
Accruing and Nonaccruing Loans and Leases | SBA/USDA | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 987
Accruing and Nonaccruing Loans and Leases | SBA/USDA | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 2,027
Accruing and Nonaccruing Loans and Leases | SBA/USDA | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 359,238 245,729
Accruing and Nonaccruing Loans and Leases | Other commercial finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 159,409 157,908
Accruing and Nonaccruing Loans and Leases | Other commercial finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Other commercial finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Other commercial finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Other commercial finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Other commercial finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 159,409 157,908
Accruing and Nonaccruing Loans and Leases | Commercial finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,023,673 2,725,495
Accruing and Nonaccruing Loans and Leases | Commercial finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 24,881 18,269
Accruing and Nonaccruing Loans and Leases | Commercial finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 6,208 7,388
Accruing and Nonaccruing Loans and Leases | Commercial finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 7,868 15,439
Accruing and Nonaccruing Loans and Leases | Commercial finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 38,957 41,096
Accruing and Nonaccruing Loans and Leases | Commercial finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,984,716 2,684,399
Accruing and Nonaccruing Loans and Leases | Consumer credit products | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 144,353 129,251
Accruing and Nonaccruing Loans and Leases | Consumer credit products | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,209 713
Accruing and Nonaccruing Loans and Leases | Consumer credit products | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,558 527
Accruing and Nonaccruing Loans and Leases | Consumer credit products | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,669 511
Accruing and Nonaccruing Loans and Leases | Consumer credit products | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,436 1,751
Accruing and Nonaccruing Loans and Leases | Consumer credit products | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 135,917 127,500
Accruing and Nonaccruing Loans and Leases | Other consumer finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 25,306 123,606
Accruing and Nonaccruing Loans and Leases | Other consumer finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 113 963
Accruing and Nonaccruing Loans and Leases | Other consumer finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 51 285
Accruing and Nonaccruing Loans and Leases | Other consumer finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 124 725
Accruing and Nonaccruing Loans and Leases | Other consumer finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 288 1,973
Accruing and Nonaccruing Loans and Leases | Other consumer finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 25,018 121,633
Accruing and Nonaccruing Loans and Leases | Consumer finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 169,659 252,857
Accruing and Nonaccruing Loans and Leases | Consumer finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,322 1,676
Accruing and Nonaccruing Loans and Leases | Consumer finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,609 812
Accruing and Nonaccruing Loans and Leases | Consumer finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,793 1,236
Accruing and Nonaccruing Loans and Leases | Consumer finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,724 3,724
Accruing and Nonaccruing Loans and Leases | Consumer finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 160,935 249,133
Accruing and Nonaccruing Loans and Leases | Tax services | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 9,098 10,405
Accruing and Nonaccruing Loans and Leases | Tax services | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Tax services | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Tax services | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,873 7,962
Accruing and Nonaccruing Loans and Leases | Tax services | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,873 7,962
Accruing and Nonaccruing Loans and Leases | Tax services | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 225 2,443
Accruing and Nonaccruing Loans and Leases | Warehouse finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 326,850 419,926
Accruing and Nonaccruing Loans and Leases | Warehouse finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Warehouse finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Warehouse finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Warehouse finance | Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Accruing and Nonaccruing Loans and Leases | Warehouse finance | Not Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 326,850 419,926
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,529,280 3,607,815
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 28,203 19,945
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,817 8,200
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 19,534 24,637
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment | Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 56,554 52,782
Accruing and Nonaccruing Loans and Leases | Loans Held for Investment | Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 3,472,726 3,555,033
Nonperforming Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Loans and leases 29,183 55,932
Non-accrual balance 13,375 34,245
Nonperforming Loans and Leases | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   14,915
Non-accrual balance   14,915
Nonperforming Loans and Leases | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases 15,808 21,687
Nonperforming Loans and Leases | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Loans and leases   0
Nonperforming Loans and Leases | Loans held for sale | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Non-accrual balance 0 0
Nonperforming Loans and Leases | Loans held for sale | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | Term lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 9,611 17,462
Non-accrual balance 7,576 14,904
Nonperforming Loans and Leases | Term lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,035 2,558
Nonperforming Loans and Leases | Asset based lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 68 0
Non-accrual balance 29 0
Nonperforming Loans and Leases | Asset based lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 39 0
Nonperforming Loans and Leases | Factoring | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 569 1,268
Non-accrual balance 569 1,268
Nonperforming Loans and Leases | Factoring | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | Lease financing | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,190 11,503
Non-accrual balance 3,750 3,158
Nonperforming Loans and Leases | Lease financing | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 440 8,345
Nonperforming Loans and Leases | Insurance premium finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,628 599
Non-accrual balance 0 0
Nonperforming Loans and Leases | Insurance premium finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,628 599
Nonperforming Loans and Leases | SBA/USDA | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 1,451 987
Non-accrual balance 1,451 0
Nonperforming Loans and Leases | SBA/USDA | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 987
Nonperforming Loans and Leases | Other commercial finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Non-accrual balance 0 0
Nonperforming Loans and Leases | Other commercial finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | Commercial finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 17,517 31,819
Non-accrual balance 13,375 19,330
Nonperforming Loans and Leases | Commercial finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 4,142 12,489
Nonperforming Loans and Leases | Consumer credit products | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,669 511
Non-accrual balance 0 0
Nonperforming Loans and Leases | Consumer credit products | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,669 511
Nonperforming Loans and Leases | Other consumer finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 124 725
Non-accrual balance 0 0
Nonperforming Loans and Leases | Other consumer finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 124 725
Nonperforming Loans and Leases | Consumer finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,793 1,236
Non-accrual balance 0 0
Nonperforming Loans and Leases | Consumer finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 2,793 1,236
Nonperforming Loans and Leases | Tax services | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,873 7,962
Non-accrual balance 0 0
Nonperforming Loans and Leases | Tax services | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 8,873 7,962
Nonperforming Loans and Leases | Warehouse finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Non-accrual balance 0 0
Nonperforming Loans and Leases | Warehouse finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Loans and leases 0 0
Nonperforming Loans and Leases | Loans Held for Investment    
Financing Receivable, Past Due [Line Items]    
Loans and leases 29,183 55,932
Non-accrual balance 13,375 34,245
Nonperforming Loans and Leases | Loans Held for Investment | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans and leases $ 15,808 $ 21,687
v3.22.2.2
LOANS AND LEASES, NET - Nonaccrual (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Nonaccrual [Line Items]    
Loans and leases $ 3,536,305 $ 3,609,563
Consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
Loans and leases 169,700 252,900
Tax services    
Financing Receivable, Nonaccrual [Line Items]    
Loans and leases 9,100 10,400
Nonaccrual Loans    
Financing Receivable, Nonaccrual [Line Items]    
2022 1,228 131
2021 1,420 4,084
2020 5,605 12,543
2019 1,002 16,061
2018 3,104 158
Prior 418 0
Revolving Loans and Leases 598 1,268
Loans and leases 13,375 32,245
Nonaccrual With No ACL 4,634 13,912
Nonaccrual Loans | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2022 251 131
2021 1,110 3,812
2020 1,964 10,072
2019 989 756
2018 3,096 133
Prior 166 0
Revolving Loans and Leases 0 0
Loans and leases 7,576 14,904
Nonaccrual With No ACL 2,885 12,103
Nonaccrual Loans | National Lending | Asset based lending    
Financing Receivable, Nonaccrual [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 29 0
Loans and leases 29 0
Nonaccrual With No ACL 0 0
Nonaccrual Loans | National Lending | Factoring    
Financing Receivable, Nonaccrual [Line Items]    
2022 0 0
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 569 1,268
Loans and leases 569 1,268
Nonaccrual With No ACL 550 1,268
Nonaccrual Loans | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2022 977 0
2021 310 30
2020 2,442 2,471
2019 13 632
2018 8 25
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 3,750 3,158
Nonaccrual With No ACL 0 541
Nonaccrual Loans | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2022 0  
2021 0  
2020 1,199  
2019 0  
2018 0  
Prior 252  
Revolving Loans and Leases 0  
Loans and leases 1,451  
Nonaccrual With No ACL 1,199  
Nonaccrual Loans | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2022 1,228 131
2021 1,420 3,842
2020 5,605 12,543
2019 1,002 1,388
2018 3,104 158
Prior 418 0
Revolving Loans and Leases 598 1,268
Loans and leases 13,375 19,330
Nonaccrual With No ACL 4,634 13,912
Nonaccrual Loans | Community Banking    
Financing Receivable, Nonaccrual [Line Items]    
2022   0
2021   242
2020   0
2019   14,673
2018   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   14,915
Nonaccrual With No ACL   0
90 or More Days Delinquent and Accruing    
Financing Receivable, Nonaccrual [Line Items]    
2022 12,724 11,611
2021 1,593 8,753
2020 861 460
2019 284 102
2018 115 31
Prior 192 729
Revolving Loans and Leases 39 0
Loans and leases 15,808 21,686
90 or More Days Delinquent and Accruing | National Lending | Term lending    
Financing Receivable, Nonaccrual [Line Items]    
2022 207 2,546
2021 720 0
2020 716 12
2019 130 0
2018 70 0
Prior 192 0
Revolving Loans and Leases 0 0
Loans and leases 2,035 2,558
90 or More Days Delinquent and Accruing | National Lending | Asset based lending    
Financing Receivable, Nonaccrual [Line Items]    
2022 0  
2021 0  
2020 0  
2019 0  
2018 0  
Prior 0  
Revolving Loans and Leases 39  
Loans and leases 39  
90 or More Days Delinquent and Accruing | National Lending | Lease financing    
Financing Receivable, Nonaccrual [Line Items]    
2022 8 429
2021 158 7,558
2020 98 224
2019 131 99
2018 45 31
Prior 0 4
Revolving Loans and Leases 0 0
Loans and leases 440 8,345
90 or More Days Delinquent and Accruing | National Lending | Insurance premium finance    
Financing Receivable, Nonaccrual [Line Items]    
2022 1,513 468
2021 110 131
2020 5 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 1,628 599
90 or More Days Delinquent and Accruing | National Lending | SBA/USDA    
Financing Receivable, Nonaccrual [Line Items]    
2022   0
2021   987
2020   0
2019   0
2018   0
Prior   0
Revolving Loans and Leases   0
Loans and leases   987
90 or More Days Delinquent and Accruing | National Lending | Commercial finance    
Financing Receivable, Nonaccrual [Line Items]    
2022 1,728 3,443
2021 988 8,676
2020 819 236
2019 261 99
2018 115 31
Prior 192 4
Revolving Loans and Leases 39 0
Loans and leases 4,142 12,489
90 or More Days Delinquent and Accruing | National Lending | Consumer credit products    
Financing Receivable, Nonaccrual [Line Items]    
2022 2,123 206
2021 481 77
2020 42 224
2019 23 3
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases 2,669 510
90 or More Days Delinquent and Accruing | National Lending | Other consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
2022 0 0
2021 124 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 725
Revolving Loans and Leases 0 0
Loans and leases 124 725
90 or More Days Delinquent and Accruing | National Lending | Consumer finance    
Financing Receivable, Nonaccrual [Line Items]    
2022 2,123 206
2021 605 77
2020 42 224
2019 23 3
2018 0 0
Prior 0 725
Revolving Loans and Leases 0 0
Loans and leases 2,793 1,235
90 or More Days Delinquent and Accruing | National Lending | Tax services    
Financing Receivable, Nonaccrual [Line Items]    
2022 8,873 7,962
2021 0 0
2020 0 0
2019 0 0
2018 0 0
Prior 0 0
Revolving Loans and Leases 0 0
Loans and leases $ 8,873 $ 7,962
v3.22.2.2
LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance $ 7,421 $ 41,030
Average recorded investment 25,940 35,634
National Lending | Term lending    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 2,885 20,965
Average recorded investment 11,320 14,623
National Lending | Asset based lending    
Financing Receivable, Impaired [Line Items]    
Average recorded investment 3,754 444
National Lending | Factoring    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 550 1,268
Average recorded investment 6,344 757
National Lending | Lease financing    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 2,787 3,882
Average recorded investment 3,278 3,029
National Lending | SBA/USDA    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 1,199 0
Average recorded investment 1,244 550
National Lending | Commercial finance    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 7,421 26,115
Average recorded investment 25,940 19,403
Community Banking    
Financing Receivable, Impaired [Line Items]    
Impaired loans, unpaid balance 0 14,915
Average recorded investment $ 0 $ 16,231
v3.22.2.2
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Basic income per common share:                              
Net income attributable to Pathward Financial, Inc. $ 23,420 $ 22,391 $ 49,251 $ 61,324 $ 15,903 $ 38,701 $ 59,066 $ 28,037 $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 156,386 $ 141,708 $ 104,720
Dividends and undistributed earnings allocated to participating securities                         (2,565) (2,698) (2,414)
Basic net earnings available to common stockholders                         153,821 139,010 102,306
Undistributed earnings allocated to nonvested restricted stockholders                         2,468 2,575 2,249
Reallocation of undistributed earnings to nonvested restricted stockholders                         (2,468) (2,573) (2,249)
Diluted net earnings available to common stockholders                         $ 153,821 $ 139,012 $ 102,306
Weighted average common shares outstanding (in shares)                         29,227,071 31,729,596 34,829,971
Effect of dilutive securities                              
Total effect of dilutive securities (in shares)                         5,176 21,926 0
Total weighted average diluted common shares outstanding (in shares)                         29,232,247 31,751,522 34,829,971
Basic earnings per common share (in dollars per share) $ 0.81 $ 0.76 $ 1.66 $ 2.00 $ 0.50 $ 1.21 $ 1.84 $ 0.84 $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 5.26 $ 4.38 $ 2.94
Diluted earnings per common share (in dollars per share) $ 0.81 $ 0.76 $ 1.66 $ 2.00 $ 0.50 $ 1.21 $ 1.84 $ 0.84 $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 5.26 $ 4.38 $ 2.94
Weighted average shares of nonvested restricted stock, antidilutive (in shares)                         487,476 615,811 821,738
Stock options                              
Effect of dilutive securities                              
Outstanding options - based upon the two-class method (in shares)                         0 0 0
Performance share units                              
Effect of dilutive securities                              
Outstanding options - based upon the two-class method (in shares)                         5,176 21,926 0
v3.22.2.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 79,285 $ 99,212  
Less: accumulated depreciation and amortization (37,575) (54,324)  
Net book value 41,710 44,888  
Depreciation expense of premises, furniture, and equipment 11,300 9,600 $ 9,200
Land      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 1,354 1,354  
Buildings      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 21,300 21,196  
Furniture, Fixtures, and Equipment      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 56,631 $ 76,662  
v3.22.2.2
RENTAL EQUIPMENT, NET - Schedule of Rental Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Property, Plant and Equipment [Line Items]    
Total $ 297,336 $ 279,364
Accumulated depreciation (94,355) (67,825)
Unamortized initial direct costs 1,390 1,577
Net book value 204,371 213,116
Computers and IT networking equipment    
Property, Plant and Equipment [Line Items]    
Total 21,669 17,683
Motor vehicles and other    
Property, Plant and Equipment [Line Items]    
Total 107,648 87,396
Other furniture and equipment    
Property, Plant and Equipment [Line Items]    
Total 34,254 48,828
Solar panels and equipment    
Property, Plant and Equipment [Line Items]    
Total $ 133,765 $ 125,457
v3.22.2.2
RENTAL EQUIPMENT, NET - Schedule of Operating Leases, Future Minimum Payments Receivable (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Property, Plant and Equipment [Abstract]  
2023 $ 39,286
2024 30,807
2025 23,158
2026 14,651
2027 8,454
Thereafter 9,704
Total $ 126,060
v3.22.2.2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 309,505 $ 309,505 $ 309,505
Impairment to intangible assets $ 873 $ 23  
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] Impairment expense Impairment expense  
v3.22.2.2
GOODWILL AND INTANGIBLE ASSETS - Goodwill and Intangible Assets (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Intangible Assets [Roll Forward]      
Balance, beginning of period $ 33,148,000 $ 41,692,000  
Acquisitions during the period 1,000 24,000  
Amortization during the period (6,585,000) (8,545,000) $ (10,997,000)
Write-offs during the period (873,000) (23,000)  
Balance, end of period 25,691,000 33,148,000 41,692,000
Gross carrying amount 109,133,000 109,335,000  
Accumulated amortization (72,306,000) (65,721,000)  
Accumulated impairment (11,136,000) (10,466,000)  
Anticipated intangible amortization [Abstract]      
2023 4,937,000    
2024 4,123,000    
2025 3,561,000    
2026 3,215,000    
2027 2,569,000    
Thereafter 7,286,000    
Total anticipated intangible amortization 25,691,000 33,148,000 41,692,000
Trademark      
Intangible Assets [Roll Forward]      
Balance, beginning of period 9,823,000 10,901,000  
Acquisitions during the period 0 0  
Amortization during the period (1,218,000) (1,078,000)  
Write-offs during the period 0 0  
Balance, end of period 8,605,000 9,823,000 10,901,000
Gross carrying amount 14,624,000 14,624,000  
Accumulated amortization (6,019,000) (4,801,000)  
Accumulated impairment 0 0  
Anticipated intangible amortization [Abstract]      
Total anticipated intangible amortization 8,605,000 9,823,000 10,901,000
Non-Compete      
Intangible Assets [Roll Forward]      
Balance, beginning of period 40,000 422,000  
Acquisitions during the period 0 0  
Amortization during the period (40,000) (382,000)  
Write-offs during the period 0 0  
Balance, end of period 0 40,000 422,000
Gross carrying amount 2,481,000 2,481,000  
Accumulated amortization (2,481,000) (2,441,000)  
Accumulated impairment 0 0  
Anticipated intangible amortization [Abstract]      
Total anticipated intangible amortization 0 40,000 422,000
Customer Relationships      
Intangible Assets [Roll Forward]      
Balance, beginning of period 17,868,000 24,333,000  
Acquisitions during the period 0 0  
Amortization during the period (4,803,000) (6,465,000)  
Write-offs during the period (670,000) 0  
Balance, end of period 12,395,000 17,868,000 24,333,000
Gross carrying amount 82,088,000 82,088,000  
Accumulated amortization (58,775,000) (53,972,000)  
Accumulated impairment (10,918,000) (10,248,000)  
Anticipated intangible amortization [Abstract]      
Total anticipated intangible amortization 12,395,000 17,868,000 24,333,000
Technology/Other      
Intangible Assets [Roll Forward]      
Balance, beginning of period 5,417,000 6,036,000  
Acquisitions during the period 1,000 24,000  
Amortization during the period (524,000) (620,000)  
Write-offs during the period (203,000) (23,000)  
Balance, end of period 4,691,000 5,417,000 6,036,000
Gross carrying amount 9,940,000 10,142,000  
Accumulated amortization (5,031,000) (4,507,000)  
Accumulated impairment (218,000) (218,000)  
Anticipated intangible amortization [Abstract]      
Total anticipated intangible amortization $ 4,691,000 $ 5,417,000 $ 6,036,000
Refund Advantage Financial Services Inc | Trademark | Minimum      
Intangible Assets [Roll Forward]      
Book amortization period 5 years    
Refund Advantage Financial Services Inc | Trademark | Maximum      
Intangible Assets [Roll Forward]      
Book amortization period 15 years    
Refund Advantage Financial Services Inc | Customer Relationships | Minimum      
Intangible Assets [Roll Forward]      
Book amortization period 10 years    
Refund Advantage Financial Services Inc | Customer Relationships | Maximum      
Intangible Assets [Roll Forward]      
Book amortization period 30 years    
Refund Advantage Financial Services Inc | Technology/Other | Minimum      
Intangible Assets [Roll Forward]      
Book amortization period 3 years    
Refund Advantage Financial Services Inc | Technology/Other | Maximum      
Intangible Assets [Roll Forward]      
Book amortization period 20 years    
v3.22.2.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Leases [Abstract]    
Operating lease, right-of-use asset, statement of financial position Other assets Other assets
Operating lease, right-of-use asset $ 30,100 $ 34,400
Operating lease, liability, statement of financial position Accrued expenses and other liabilities Accrued expenses and other liabilities
Total operating lease liabilities $ 32,055 $ 36,500
v3.22.2.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Undiscounted Future Minimum Operating Lease Payments (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Leases [Abstract]    
2022 $ 3,946  
2024 3,913  
2025 3,718  
2026 3,195  
2027 3,092  
Thereafter 18,639  
Total undiscounted future minimum lease payments 36,503  
Discount (4,448)  
Total operating lease liabilities $ 32,055 $ 36,500
v3.22.2.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Leases [Abstract]    
Weighted-average discount rate 2.35%  
Weighted-average remaining lease term (years) 10 years 4 months 28 days  
Lease expense $ 4,431 $ 4,310
Short-term and variable lease cost 194 193
ROU asset impairment 670 224
Sublease income (1,267) (591)
Total lease cost for operating leases $ 4,028 $ 4,136
v3.22.2.2
TIME CERTIFICATES OF DEPOSIT (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Deposits [Line Items]    
IRA deposit accounts permanently insured by DIF under management of FDIC $ 250,000  
Time certificates of deposits in denominations of $250,000 or more 6,200,000 $ 24,900,000
Time Deposits, Fiscal Year Maturity [Abstract]    
2023 5,947,000  
2024 1,807,000  
2025 0  
2026 0  
2027 0  
Thereafter 0  
Total 7,754,000  
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC 250,000  
Wholesale Deposits    
Time Deposits, Fiscal Year Maturity [Abstract]    
Wholesale deposits $ 100,000  
v3.22.2.2
SHORT-TERM AND LONG-TERM BORROWINGS - Short Term Debt (Details) - USD ($)
Sep. 30, 2022
Sep. 30, 2021
Debt Instrument [Line Items]    
Loans $ 3,490,358,000 $ 3,541,282,000
Securities sold under agreements to repurchase, total 0  
Estimated Fair Value    
Debt Instrument [Line Items]    
Loans and leases 3,525,803,000 3,616,646,000
Asset Pledged as Collateral    
Debt Instrument [Line Items]    
Loans 0 0
Asset Pledged as Collateral with Right | Estimated Fair Value | Short-term FHLB advances    
Debt Instrument [Line Items]    
Loans and leases 804,000,000 644,700,000
Asset Pledged as Collateral with Right | Estimated Fair Value | Repurchase agreements    
Debt Instrument [Line Items]    
Loans and leases $ 0 $ 0
v3.22.2.2
SHORT-TERM AND LONG-TERM BORROWINGS - Long Term Debt Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
May 15, 2022
USD ($)
Sep. 30, 2022
USD ($)
Period
$ / shares
shares
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Debt Instrument [Line Items]        
Subordinated debentures, net of issuance costs   $ 20,000 $ 73,980  
Public offering   $ 20,000 $ 0 $ 0
First Midwest Financial Capital Trust I        
Debt Instrument [Line Items]        
Issuance of trust preferred securities (in shares) | shares   10,000    
Number of authorized shares of trust preferred securities issued (in shares) | shares   10,310    
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period   10    
Redemption price per capital security (in dollars per share) | $ / shares   $ 1,000    
First Midwest Financial Capital Trust I | First Midwest Financial Capital Trust I        
Debt Instrument [Line Items]        
Equity method investment, ownership percentage   100.00%    
First Midwest Financial Capital Trust I | LIBOR        
Debt Instrument [Line Items]        
Basis spread on variable rate   3.75%    
Effective interest rate   7.98% 3.93%  
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 | Subordinated debentures        
Debt Instrument [Line Items]        
Subordinated debentures, net of issuance costs $ 75,000 $ 20,000    
Interest rate, stated percentage 5.75%      
Payment of subordinated debt $ 75,000      
Payment of interest $ 1,000      
6 Point 625 Percent Fixed to Floating Rate Subordinated Debt, Due 2032 | Subordinated debentures        
Debt Instrument [Line Items]        
Interest rate, stated percentage   6.625%    
Public offering   $ 20,000    
Weighted Average | First Midwest Financial Capital Trust I | LIBOR        
Debt Instrument [Line Items]        
Effective interest rate   12.50%    
Crestmark Bancorp, Inc.        
Debt Instrument [Line Items]        
Effective interest rate   6.75%    
Long-term borrowings   $ 3,400    
Debt instrument, term   30 years    
Crestmark Bancorp, Inc. | LIBOR        
Debt Instrument [Line Items]        
Basis spread on variable rate   3.00%    
v3.22.2.2
SHORT-TERM AND LONG-TERM BORROWINGS - Long Term Debt (Details) - USD ($)
Sep. 30, 2022
Sep. 30, 2021
Debt Instrument [Line Items]    
Trust preferred securities $ 13,661,000 $ 13,661,000
Subordinated debentures, net of issuance costs 20,000,000 73,980,000
Other long-term borrowings 2,367,000 5,193,000
Long-term borrowings 36,028,000 92,834,000
Discounted leases 2,400,000 5,100,000
Finance lease obligations $ 0 $ 100,000
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] Total long-term borrowings Total long-term borrowings
Maturities of Long-term Debt    
2023 $ 603,000  
2024 1,764,000  
2025 0  
2026 0  
2027 0  
Thereafter 33,661,000  
Total long-term borrowings 36,028,000 $ 92,834,000
Trust preferred securities    
Debt Instrument [Line Items]    
Long-term borrowings 13,661,000  
Maturities of Long-term Debt    
2023 0  
2024 0  
2025 0  
2026 0  
2027 0  
Thereafter 13,661,000  
Total long-term borrowings 13,661,000  
Subordinated debentures    
Debt Instrument [Line Items]    
Long-term borrowings 20,000,000  
Maturities of Long-term Debt    
2023 0  
2024 0  
2025 0  
2026 0  
2027 0  
Thereafter 20,000,000  
Total long-term borrowings 20,000,000  
Other long-term borrowings    
Debt Instrument [Line Items]    
Long-term borrowings 2,367,000  
Maturities of Long-term Debt    
2023 603,000  
2024 1,764,000  
2025 0  
2026 0  
2027 0  
Thereafter 0  
Total long-term borrowings $ 2,367,000  
v3.22.2.2
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 07, 2021
Nov. 20, 2019
Class of Stock [Line Items]        
Stock repurchased during period (in shares) 73,522 101,481    
Stock repurchased during period, value $ 4.0 $ 2.9    
Shares retired 0 203,224    
Common Stock        
Class of Stock [Line Items]        
Number of shares authorized to be repurchased (in shares)     6,000,000 7,500,000
Stock repurchased and retired during the period (in shares) 3,020,899 2,833,755    
Remaining number of shares authorized to be repurchased (in shares) 4,294,977      
v3.22.2.2
STOCK COMPENSATION - Additional Information (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Period that options are issued 10 years    
Percentage of options vesting at either grant date or over four year period 100.00%    
Period that options vest 4 years    
Granted (in shares) 0 0 0
Exercised $ 0 $ 0 $ 1,000,000
Fair value of share granted (in shares) 178,631 190,187  
Award vesting period eight years    
Options exercisable end of year (in shares) 0    
Stock based compensation expense not yet recognized in income $ 6,500,000    
Weighted average remaining period for unrecognized stock based compensation 1 year 5 months 23 days    
Director      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of share granted (in shares) 0 1,000,000 800,000
v3.22.2.2
STOCK COMPENSATION - Nonvested Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Number of Shares    
Shares outstanding, beginning of period (in shares) 547,063 790,083
Granted (in shares) 178,631 190,187
Vested (in shares) (230,323) (329,409)
Forfeited or expired (in shares) (21,023) (103,798)
Shares outstanding, end of period (in shares) 474,348 547,063
Weighted Average Fair Value at Grant    
Shares outstanding, beginning of period (in dollars per share) $ 30.22 $ 30.03
Granted (in dollars per share) 55.56 30.88
Vested (in dollars per share) 35.70 30.32
Forfeited or expired (in dollars per share) 43.45 29.66
Shares outstanding, end of period (in dollars per share) $ 36.52 $ 30.22
v3.22.2.2
STOCK COMPENSATION - Performance Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Number of Units    
Shares outstanding, beginning of period (in shares) 547,063 790,083
Granted (in shares) 178,631 190,187
Vested (in shares) (230,323) (329,409)
Forfeited or expired (in shares) (21,023) (103,798)
Shares outstanding, end of period (in shares) 474,348 547,063
Weighted Average Fair Value at Grant    
Shares outstanding, beginning of period (in dollars per share) $ 30.22 $ 30.03
Granted (in dollars per share) 55.56 30.88
Vested (in dollars per share) 35.70 30.32
Forfeited or expired (in dollars per share) 43.45 29.66
Shares outstanding, end of period (in dollars per share) $ 36.52 $ 30.22
PSUs    
Number of Units    
Shares outstanding, beginning of period (in shares) 60,984  
Granted (in shares) 35,705  
Vested (in shares) 0  
Forfeited or expired (in shares) 0  
Shares outstanding, end of period (in shares) 96,689 60,984
Weighted Average Fair Value at Grant    
Shares outstanding, beginning of period (in dollars per share) $ 34.03  
Granted (in dollars per share) 57.20  
Vested (in dollars per share) 0  
Forfeited or expired (in dollars per share) 0  
Shares outstanding, end of period (in dollars per share) $ 42.59 $ 34.03
v3.22.2.2
STOCK COMPENSATION - Effects to Net Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Share-Based Payment Arrangement [Abstract]      
Tax effects of employee's stock-based compensation expense recognized income $ 2,181 $ 1,562 $ 2,567
Total employee stock-based compensation expense recognized in income, net of tax effects of $2,181, $1,562, and $2,567, respectively $ 7,824 $ 5,290 $ 7,656
v3.22.2.2
INCOME TAXES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Federal:      
Current $ 5,657 $ 6,402 $ 3,148
Deferred 12,900 (3,909) (4,505)
Federal income tax expense 18,557 2,493 (1,357)
State:      
Current 4,720 5,938 4,860
Deferred 4,687 2,270 2,158
State tax expense 9,407 8,208 7,018
Income tax expense (benefit) 27,964 10,701 5,661
Deferred tax assets:      
Bad debts 10,636 15,946  
Deferred compensation 2,652 3,733  
Stock based compensation 3,521 3,314  
Valuation adjustments 3,047 4,111  
General business credits 52,684 49,196  
Accrued expenses 1,948 2,780  
Lease liability 8,074 9,206  
Net unrealized losses on securities available for sale 71,336 0  
Other assets 2,662 4,253  
Gross deferred tax assets 156,560 92,539  
Deferred tax liabilities:      
Premises and equipment (3,148) (3,328)  
Intangibles (4,099) (3,032)  
Net unrealized gains on securities available for sale 0 (2,471)  
Leased assets (58,592) (46,355)  
Right-of-use assets (7,758) (8,877)  
Other liabilities (1,170) (3,303)  
Gross deferred tax liabilities (74,767) (67,366)  
Net deferred tax assets 81,793 25,173  
Amount      
Statutory federal income tax expense and rate 38,714 32,854 24,151
Change in tax rate resulting from:      
State income taxes net of federal benefits 7,413 6,452 5,444
162(m) disallowance 1,125 686 1,129
Tax exempt income (743) (835) (1,212)
General business credits (17,589) (26,945) (22,284)
Other, net (956) (1,511) (1,567)
Income tax expense (benefit) $ 27,964 $ 10,701 $ 5,661
Rate      
Statutory federal income tax expense and rate (percent) 21.00% 21.00% 21.00%
State income taxes net of federal benefits (percent) 4.00% 4.10% 4.70%
162 (m) disallowance (percent) 0.40% 0.40% 1.00%
Tax exempt income (percent) (0.40%) (0.50%) (1.00%)
General business credits (percent) (9.50%) (17.20%) (19.40%)
Other, net (percent) (0.30%) (1.00%) (1.40%)
Total income tax expense (percent) 15.20% 6.80% 4.90%
Gross deferred tax on state net operating loss carryforwards $ 2,900 $ 2,700  
Operating loss carryforwards reserved 2,900 2,700  
Tax credit, investment, amount 16,800 26,500 $ 20,500
Reconciliation for liabilities [Abstract]      
Balance at beginning of fiscal year 777 1,091  
Reductions for tax positions related to prior years (132) (314)  
Balance at end of fiscal year 645 $ 777 $ 1,091
Unrecognized tax benefits that, if recognized, would impact the effective rate 699    
Accrued interest related to unrecognized tax benefits $ 145    
v3.22.2.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details)
Sep. 30, 2022
Sep. 30, 2021
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 8.10% 7.67%
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio 4.00% 4.00%
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 5.00% 5.00%
Common equity Tier 1 (to risk-weighted assets), actual ratio 12.07% 12.12%
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 4.50% 4.50%
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 6.50% 6.50%
Tier 1 (core) capital ( to risk weighted assets), ratio 0.1239 0.1246
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 0.0600 0.0600
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 0.0800 0.0800
Total qualifying capital (to risk-weighted assets), ratio 13.88% 15.45%
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 8.00% 8.00%
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 10.00% 10.00%
MetaBank    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 8.19% 8.69%
Common equity Tier 1 (to risk-weighted assets), actual ratio 12.55% 14.11%
Tier 1 (core) capital ( to risk weighted assets), ratio 0.1255 0.1413
Total qualifying capital (to risk-weighted assets), ratio 13.57% 15.38%
v3.22.2.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Reconciliation of capital amounts [Abstract]        
Total stockholders' equity $ 645,140 $ 871,884 $ 847,308 $ 843,958
Adjustments:        
LESS: Goodwill, net of associated deferred tax liabilities 299,186      
LESS: Certain other intangible assets 26,406      
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 17,968      
LESS: Net unrealized gains (losses) on available for sale securities (211,600)      
LESS: Noncontrolling interest (30) $ 1,155    
ADD: Adoption of Accounting Standards Update 2016-13 2,689      
Common Equity Tier 1 515,899      
Long-term borrowings and other instruments qualifying as Tier 1 13,661      
Tier 1 minority interest not included in common equity Tier 1 capital (20)      
Total Tier 1 capital 529,540      
Allowance for credit losses 43,623      
Subordinated debentures, net of issuance costs 20,000      
Total capital $ 593,163      
Common Equity Tier 1, risk-based (as a percent) 0.070      
Tier 1 risk-based (as a percent) 0.085      
Total risk based capital ratios with buffer (as a percent) 0.105      
Capital conservation buffer requirement 0.025      
v3.22.2.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Tangible Common Equity Reconciliation (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Restructuring and Related Activities [Abstract]        
Total stockholders' equity $ 645,140 $ 871,884 $ 847,308 $ 843,958
LESS: Goodwill 309,505 309,505 $ 309,505  
LESS: Intangible assets 25,691      
Tangible common equity 309,944      
Accumulated other comprehensive income (loss) (213,080) $ 7,599    
Tangible common equity excluding AOCI $ 523,024      
v3.22.2.2
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenue From Contracts with Customers by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Disaggregation of Revenue [Line Items]                              
Net interest income (expense) $ 79,760 $ 72,151 $ 83,800 $ 71,613 $ 70,667 $ 68,475 $ 73,850 $ 65,999 $ 64,513 $ 62,137 $ 67,737 $ 64,651 $ 307,324 $ 278,991 $ 259,038
Gain (loss) on sale of securities                         (1,287) 6 51
Gain on sale of trademarks                         50,000 0 0
Gain (loss) on sale of other                         (4,920) 11,515 4,425
Other income                         17,357 26,240 14,641
Noninterest income $ 43,456 $ 53,994 $ 109,766 $ 86,591 $ 49,542 $ 62,453 $ 113,453 $ 45,455 $ 40,750 $ 41,048 $ 120,513 $ 37,483 293,807 270,904 239,794
Revenue                         601,131 549,895  
Refund transfer product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         39,809 37,967  
Refund advance fee income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         40,557 47,639 31,826
Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         104,684 107,182  
Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         1,049 939 1,310
Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         46,558 39,416 44,826
Consumer                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         98,366 91,489 92,362
Gain (loss) on sale of securities                         0 0  
Gain on sale of trademarks                         0 0  
Gain (loss) on sale of other                         0 0  
Other income                         4,202 2,902  
Noninterest income                         189,252 195,708 158,284
Revenue                         287,618 287,197  
Consumer | Refund transfer product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         39,809 37,967  
Consumer | Refund advance fee income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         40,557 47,639  
Consumer | Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         104,684 107,182  
Consumer | Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         0 0  
Consumer | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         0 18  
Commercial                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         187,209 173,969 151,649
Gain (loss) on sale of securities                         0 0  
Gain on sale of trademarks                         0 0  
Gain (loss) on sale of other                         8,782 12,622  
Other income                         12,587 8,876  
Noninterest income                         68,412 61,813 60,151
Revenue                         255,621 235,782  
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 | Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         0 0  
Commercial | Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         1,020 917  
Commercial | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         46,023 39,398  
Corporate Services/Other                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         21,749 13,533 15,027
Gain (loss) on sale of securities                         (1,287) 6  
Gain on sale of trademarks                         50,000 0  
Gain (loss) on sale of other                         (13,702) (1,107)  
Other income                         568 14,462  
Noninterest income                         36,143 13,383 $ 21,359
Revenue                         57,892 26,916  
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 | Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         0 0  
Corporate Services/Other | Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         29 22  
Corporate Services/Other | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income:                         $ 535 $ 0  
v3.22.2.2
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
USD ($)
Jun. 30, 2022
USD ($)
Mar. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Sep. 30, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2022
USD ($)
segment
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Segment Reporting [Abstract]                              
Number of reportable segments | segment                         3    
Segment data [Abstract]                              
Net interest income (expense) $ 79,760 $ 72,151 $ 83,800 $ 71,613 $ 70,667 $ 68,475 $ 73,850 $ 65,999 $ 64,513 $ 62,137 $ 67,737 $ 64,651 $ 307,324 $ 278,991 $ 259,038
Provision for credit losses (2,648) (1,302) 32,302 186 8,775 4,612 30,290 6,089 8,980 15,093 37,296 3,407 28,538 49,766 64,776
Noninterest income 43,456 $ 53,994 $ 109,766 $ 86,591 49,542 $ 62,453 $ 113,453 $ 45,455 40,750 $ 41,048 $ 120,513 $ 37,483 293,807 270,904 239,794
Noninterest expense                         385,275 343,683 319,051
Income (loss) before income tax expense                         187,318 156,446 115,005
Total assets 6,747,410       6,690,650       6,092,074       6,747,410 6,690,650 6,092,074
LESS: Goodwill 309,505       309,505       309,505       309,505 309,505 309,505
Total deposits 5,866,037       5,514,971       4,979,200       5,866,037 5,514,971 4,979,200
Consumer                              
Segment data [Abstract]                              
Net interest income (expense)                         98,366 91,489 92,362
Provision for credit losses                         30,680 35,765 21,807
Noninterest income                         189,252 195,708 158,284
Noninterest expense                         99,589 90,792 76,533
Income (loss) before income tax expense                         157,349 160,640 152,306
Total assets 356,994       354,441       276,998       356,994 354,441 276,998
LESS: Goodwill 87,145       87,145       87,145       87,145 87,145 87,145
Total deposits 5,695,776       5,342,192       4,555,999       5,695,776 5,342,192 4,555,999
Commercial                              
Segment data [Abstract]                              
Net interest income (expense)                         187,209 173,969 151,649
Provision for credit losses                         14,674 19,791 29,296
Noninterest income                         68,412 61,813 60,151
Noninterest expense                         128,904 114,925 107,790
Income (loss) before income tax expense                         112,043 101,066 74,714
Total assets 3,487,461       3,208,889       2,854,088       3,487,461 3,208,889 2,854,088
LESS: Goodwill 222,360       222,360       222,360       222,360 222,360 222,360
Total deposits 8,965       6,625       6,226       8,965 6,625 6,226
Corporate Services/Other                              
Segment data [Abstract]                              
Net interest income (expense)                         21,749 13,533 15,027
Provision for credit losses                         (16,816) (5,790) 13,673
Noninterest income                         36,143 13,383 21,359
Noninterest expense                         156,782 137,966 134,728
Income (loss) before income tax expense                         (82,074) (105,260) (112,015)
Total assets 2,902,955       3,127,320       2,960,988       2,902,955 3,127,320 2,960,988
LESS: Goodwill 0       0       0       0 0 0
Total deposits $ 161,296       $ 166,154       $ 416,975       $ 161,296 $ 166,154 $ 416,975
v3.22.2.2
PARENT COMPANY FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
ASSETS        
Cash and cash equivalents $ 388,038 $ 314,019    
Investment securities held to maturity, at cost 41,682 56,669    
Other assets 295,324 212,276    
Total assets 6,747,410 6,690,650 $ 6,092,074  
LIABILITIES        
Subordinated debentures, net of issuance costs 20,000 73,980    
Other liabilities 200,205 210,961    
Total liabilities 6,102,270 5,818,766    
STOCKHOLDERS' EQUITY        
Additional paid-in capital 617,403 604,484    
Retained earnings 245,394 259,189    
Accumulated other comprehensive income (loss) (213,080) 7,599    
Treasury stock, at cost (4,835) (860)    
Total equity attributable to parent 645,170 870,729    
Noncontrolling interest (30) 1,155    
Total stockholders' equity 645,140 871,884 $ 847,308 $ 843,958
Total liabilities and stockholders' equity 6,747,410 6,690,650    
Meta Financial        
ASSETS        
Cash and cash equivalents 13,117 3,296    
Investment securities held to maturity, at cost 8,003 4,623    
Investment in subsidiaries 665,172 956,584    
Other assets 928 278    
Total assets 687,220 964,781    
LIABILITIES        
Subordinated debentures, net of issuance costs 33,661 87,641    
Other liabilities 8,419 5,256    
Total liabilities 42,080 92,897    
STOCKHOLDERS' EQUITY        
Common stock 288 317    
Additional paid-in capital 617,403 604,484    
Retained earnings 245,394 259,189    
Accumulated other comprehensive income (loss) (213,080) 7,599    
Treasury stock, at cost (4,835) (860)    
Total equity attributable to parent 645,170 870,729    
Noncontrolling interest (30) 1,155    
Total stockholders' equity 645,140 871,884    
Total liabilities and stockholders' equity $ 687,220 $ 964,781    
v3.22.2.2
PARENT COMPANY FINANCIAL STATEMENTS - Income Statement (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                              
Interest expense $ 462 $ 1,755 $ 1,377 $ 1,278 $ 1,389 $ 1,508 $ 1,819 $ 2,147 $ 3,894 $ 5,269 $ 11,666 $ 12,974 $ 4,872 $ 6,863 $ 33,803
Other expense                         385,275 343,683 319,051
Income tax expense (benefit)                         27,964 10,701 5,661
Net income before noncontrolling interest                         159,354 145,745 109,344
Net income attributable to parent $ 23,420 $ 22,391 $ 49,251 $ 61,324 $ 15,903 $ 38,701 $ 59,066 $ 28,037 $ 13,158 $ 18,190 $ 52,304 $ 21,068 156,386 141,708 104,720
Meta Financial                              
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                              
Interest expense                         3,982 4,915 5,168
Other expense                         1,062 1,287 1,256
Total expense                         5,044 6,202 6,424
Loss before income taxes and equity in undistributed net income of subsidiaries                         (5,044) (6,202) (6,424)
Income tax expense (benefit)                         (1,029) 395 (3,638)
Loss before equity in undistributed net income of subsidiaries                         (4,015) (6,597) (2,786)
Equity in undistributed net income of subsidiaries                         159,652 147,895 107,476
Other Income                         749 410 30
Net income before noncontrolling interest                         160,401 148,305 107,506
Net income attributable to parent                         $ 156,386 $ 141,708 $ 104,720
v3.22.2.2
PARENT COMPANY FINANCIAL STATEMENTS - Cash Flow Statement (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:                              
Net income attributable to parent $ 23,420 $ 22,391 $ 49,251 $ 61,324 $ 15,903 $ 38,701 $ 59,066 $ 28,037 $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 156,386 $ 141,708 $ 104,720
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                              
Depreciation, amortization and accretion, net                         61,601 59,047 60,745
Net change in accrued interest receivable                         (1,725) 374 2,050
Net change in other assets                         (32,936) 825 1,524
Net change in accrued expenses and other liabilities                         (10,640) 43,920 1,152
Stock compensation                         10,004 6,852 10,221
Net cash provided by operating activities                         268,809 581,645 467,220
Cash flows from investing activities:                              
Net cash (used in) investing activities                         (310,872) (1,118,402) (206,316)
Cash flows from financing activities:                              
Redemption of long-term borrowings                         (75,000) 0 0
Proceeds from long-term borrowings                         20,000 0 0
Dividends paid on common stock                         (5,921) (6,400) (7,100)
Issuance of common stock due to exercise of stock options                         0 0 266
Issuance of common stock due to restricted stock                         1 0 2
Repurchases of common stock                         (168,235) (99,878) (118,738)
Net cash provided by financing activities                         117,818 422,933 40,019
Net change in cash and cash equivalents                         74,019 (113,348) 300,822
Cash and cash equivalents at beginning of fiscal year       314,019       427,367       126,545 314,019 427,367 126,545
Cash and cash equivalents at end of fiscal period 388,038       314,019       427,367       388,038 314,019 427,367
Meta Financial                              
Cash flows from operating activities:                              
Net income attributable to parent                         156,386 141,708 104,720
Adjustments to reconcile net income to net cash provided by (used in) operating activities:                              
Depreciation, amortization and accretion, net                         1,020 173 163
Equity in undistributed net income of subsidiaries                         (159,652) (147,895) (107,476)
Net change in accrued interest receivable                         (15) 0 0
Net change in other assets                         (636) 3,030 (3,149)
Net change in accrued expenses and other liabilities                         3,163 (2,698) (2,660)
Cash dividend received                         229,200 104,000 118,000
Stock compensation                         10,004 6,852 10,221
Net cash provided by operating activities                         239,470 105,170 119,819
Cash flows from investing activities:                              
Alternative investments                         (3,380) (3,415) (797)
Net cash (used in) investing activities                         (3,380) (3,415) (797)
Cash flows from financing activities:                              
Redemption of long-term borrowings                         (75,000) 0 0
Proceeds from long-term borrowings                         20,000 0 0
Dividends paid on common stock                         (5,921) (6,400) (7,100)
Issuance of common stock due to exercise of stock options                         0 0 266
Issuance of common stock due to restricted stock                         1 0 2
Issuance of common stock due to ESOP                         2,886 3,036 3,220
Repurchases of common stock                         (168,235) (99,878) (118,738)
Net cash provided by financing activities                         (226,269) (103,242) (122,350)
Net change in cash and cash equivalents                         9,821 (1,487) (3,328)
Cash and cash equivalents at beginning of fiscal year       $ 3,296       $ 4,783       $ 8,111 3,296 4,783 8,111
Cash and cash equivalents at end of fiscal period $ 13,117       $ 3,296       $ 4,783       $ 13,117 $ 3,296 $ 4,783
v3.22.2.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Quarterly Financial Information Disclosure [Abstract]                              
Interest and dividend income $ 80,222 $ 73,906 $ 85,177 $ 72,891 $ 72,056 $ 69,983 $ 75,669 $ 68,146 $ 68,407 $ 67,406 $ 79,403 $ 77,625 $ 312,196 $ 285,854 $ 292,841
Interest expense 462 1,755 1,377 1,278 1,389 1,508 1,819 2,147 3,894 5,269 11,666 12,974 4,872 6,863 33,803
Net interest income (expense) 79,760 72,151 83,800 71,613 70,667 68,475 73,850 65,999 64,513 62,137 67,737 64,651 307,324 278,991 259,038
Provision for credit losses (2,648) (1,302) 32,302 186 8,775 4,612 30,290 6,089 8,980 15,093 37,296 3,407 28,538 49,766 64,776
Noninterest income 43,456 53,994 109,766 86,591 49,542 62,453 113,453 45,455 40,750 41,048 120,513 37,483 293,807 270,904 239,794
Net income attributable to Pathward Financial, Inc. $ 23,420 $ 22,391 $ 49,251 $ 61,324 $ 15,903 $ 38,701 $ 59,066 $ 28,037 $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 156,386 $ 141,708 $ 104,720
Earnings per common share                              
Basic (in dollars per share) $ 0.81 $ 0.76 $ 1.66 $ 2.00 $ 0.50 $ 1.21 $ 1.84 $ 0.84 $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 5.26 $ 4.38 $ 2.94
Diluted (in dollars per share) 0.81 0.76 1.66 2.00 0.50 1.21 1.84 0.84 0.38 0.53 1.45 0.56 $ 5.26 $ 4.38 $ 2.94
Dividend declared per share (in dollars per share) $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05      
v3.22.2.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
Sep. 30, 2022
Sep. 30, 2021
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Level 1    
Available For Sale    
Total debt securities AFS 0 0
Common equities and mutual funds 2,874,000 12,668,000
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Level 2    
Available For Sale    
Total debt securities AFS 1,882,869,000 1,864,899,000
Common equities and mutual funds 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Level 3    
Available For Sale    
Total debt securities AFS 0 0
Common equities and mutual funds 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 3,525,803,000 3,616,646,000
Recurring    
Available For Sale    
Corporate securities 97,768,000 25,000,000
SBA securities 2,344,000 157,209,000
Obligations of states and political subdivisions 263,783,000 2,507,000
Non-bank qualified obligations of states and political subdivisions 147,790,000 268,295,000
Asset-backed securities 1,348,997,000 394,859,000
Mortgage-Backed Securities Available-for-Sale, Fair Value Disclosure 22,187,000 1,017,029,000
Total debt securities AFS 1,882,869,000 1,864,899,000
Common equities and mutual funds 2,874,000 12,668,000
Investment securities available for sale, at fair value 7,212,000 4,560,000
Recurring | Level 1    
Available For Sale    
Corporate securities 0 0
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-Backed Securities Available-for-Sale, Fair Value Disclosure 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 2,874,000 12,668,000
Investment securities available for sale, at fair value 0 0
Recurring | Level 2    
Available For Sale    
Corporate securities 97,768,000 25,000,000
SBA securities 2,344,000 157,209,000
Obligations of states and political subdivisions 263,783,000 2,507,000
Non-bank qualified obligations of states and political subdivisions 147,790,000 268,295,000
Asset-backed securities 1,348,997,000 394,859,000
Mortgage-Backed Securities Available-for-Sale, Fair Value Disclosure 22,187,000 1,017,029,000
Total debt securities AFS 1,882,869,000 1,864,899,000
Common equities and mutual funds 0 0
Investment securities available for sale, at fair value 0 0
Recurring | Level 3    
Available For Sale    
Corporate securities 0 0
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-Backed Securities Available-for-Sale, Fair Value Disclosure 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 0 0
Investment securities available for sale, at fair value 0 0
Nonrecurring    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,576,000 14,852,000
Nonrecurring | National Lending    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,575,000 3,404,000
Nonrecurring | Community Banking    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases   9,371,000
Nonrecurring | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,575,000 12,775,000
Nonrecurring | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed assets, net 1,000 2,077,000
Nonrecurring | Level 1    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 1 | National Lending    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 1 | Community Banking    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases   0
Nonrecurring | Level 1 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 1 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed assets, net 0 0
Nonrecurring | Level 2    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 2 | National Lending    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 2 | Community Banking    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases   0
Nonrecurring | Level 2 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 0 0
Nonrecurring | Level 2 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed assets, net 0 0
Nonrecurring | Level 3    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,576,000 14,852,000
Nonrecurring | Level 3 | National Lending    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,575,000 3,404,000
Nonrecurring | Level 3 | Community Banking    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases   9,371,000
Nonrecurring | Level 3 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Loans and leases 1,575,000 12,775,000
Nonrecurring | Level 3 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed assets, net $ 1,000 $ 2,077,000
v3.22.2.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
Valuation, Market Approach | Minimum | Measurement Input, Discount Rate    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.04  
Valuation, Market Approach | Maximum | Measurement Input, Discount Rate    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.35  
Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 3,525,803 $ 3,616,646
Impaired Loans | Level 3 | Valuation, Market Approach    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 1,575 12,775
Impaired Loans | Level 3 | Valuation, Market Approach | Minimum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 15.00%  
Impaired Loans | Level 3 | Valuation, Market Approach | Maximum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 59.00%  
Foreclosed Assets | Level 3 | Valuation, Market Approach    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 1 $ 2,077
Foreclosed Assets | Level 3 | Valuation, Market Approach | Minimum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 9.00%  
Foreclosed Assets | Level 3 | Valuation, Market Approach | Maximum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 20.00%  
v3.22.2.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Sep. 30, 2021
Financial assets    
Debt securities held to maturity $ 38,171 $ 56,391
Level 1    
Financial assets    
Cash and cash equivalents 388,038 314,019
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Common equities and mutual funds 2,874 12,668
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 17,979 16,254
Financial liabilities    
Deposits 5,858,283 5,482,471
Other short- and long-term borrowings 0 0
Accrued interest payable 192 579
Level 2    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 1,882,869 1,864,899
Debt securities held to maturity 38,171 56,391
Common equities and mutual funds 0 0
Non-marketable equity securities 15,314 12,949
Loans held for sale 21,071 56,194
Loans and leases 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 28,812 28,400
Accrued interest receivable 0 0
Financial liabilities    
Deposits 7,571 32,564
Other short- and long-term borrowings 35,986 93,938
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 3,525,803 3,616,646
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 388,038 314,019
Debt securities available for sale 1,882,869 1,864,899
Debt securities held to maturity 41,682 56,669
Common equities and mutual funds 2,874 12,668
Non-marketable equity securities 22,526 17,509
Loans held for sale 21,071 56,194
Loans and leases 3,529,280 3,607,815
Federal Reserve Bank and Federal Home Loan Bank stocks 28,812 28,400
Accrued interest receivable 17,979 16,254
Financial liabilities    
Deposits 5,866,037 5,514,971
Other short- and long-term borrowings 36,028 92,834
Accrued interest payable 192 579
Estimated Fair Value    
Financial assets    
Cash and cash equivalents 388,038 314,019
Debt securities available for sale 1,882,869 1,864,899
Debt securities held to maturity 38,171 56,391
Common equities and mutual funds 2,874 12,668
Non-marketable equity securities 22,526 17,509
Loans held for sale 21,071 56,194
Loans and leases 3,525,803 3,616,646
Federal Reserve Bank and Federal Home Loan Bank stocks 28,812 28,400
Accrued interest receivable 17,979 16,254
Financial liabilities    
Deposits 5,865,854 5,515,035
Other short- and long-term borrowings 35,986 93,938
Accrued interest payable $ 192 $ 579