Cover Page
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 | ||
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 |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Crowe LLP |
Auditor Firm ID | 173 |
Auditor Location | South Bend, Indiana |
CONSOLIDATED STATEMENTS OF FINA
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 |
CONSOLIDATED STATEMENTS OF FI_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 |
CONSOLIDATED STATEMENTS OF OPER
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 |
CONSOLIDATED STATEMENTS OF COMP
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 |
CONSOLIDATED STATEMENTS OF CHAN
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) |
CONSOLIDATED STATEMENTS OF CH_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 |
CONSOLIDATED STATEMENTS OF CASH
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 |
SUMMARY OF SIGNIFICANT ACCOUNTI
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 Pathward TM , 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 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 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 credi |
SIGNIFICANT EVENTS
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. |
SECURITIES
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 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair At September 30, 2022 Corporate securities $ 25,000 $ — $ (2,813) $ 22,187 SBA securities 105,238 — (7,470) 97,768 Obligations of states and political subdivisions 2,469 — (125) 2,344 Non-bank qualified obligations of states and political subdivisions 290,754 — (26,971) 263,783 Asset-backed securities 160,806 — (13,016) 147,790 Mortgage-backed securities 1,581,452 — (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 securities 151,958 5,251 — 157,209 Obligations of states and political subdivisions 2,497 10 — 2,507 Non-bank qualified obligations of states and political subdivisions 266,048 3,347 (1,100) 268,295 Asset-backed securities 393,103 3,003 (1,247) 394,859 Mortgage-backed securities 1,016,478 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 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair At September 30, 2022 Non-bank qualified obligations of states and political subdivisions $ 39,093 $ — $ (3,190) $ 35,903 Mortgage-backed securities 2,589 — (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 securities 3,725 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 MONTHS OVER 12 MONTHS TOTAL (Dollars in thousands) Fair Gross Unrealized (Losses) Fair Gross Unrealized (Losses) Fair Gross Unrealized (Losses) Debt Securities AFS At September 30, 2022 Corporate securities $ — $ — $ 22,187 $ (2,813) $ 22,187 $ (2,813) SBA securities 97,767 (7,470) — — 97,767 (7,470) Obligations of state and political subdivisions 2,345 (125) — — 2,345 (125) Non-bank qualified obligations of states and political subdivisions 195,816 (19,743) 67,967 (7,228) 263,783 (26,971) Asset-backed securities 64,886 (1,838) 82,904 (11,178) 147,790 (13,016) Mortgage-backed securities 816,657 (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 securities 127,110 (283) 91,553 (964) 218,663 (1,247) Mortgage-backed securities 759,035 (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 securities 2,268 (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) 2022 2021 Securities AFS at Fair Value Amortized Cost Fair Amortized Cost Fair Due in one year or less $ 718 $ 715 $ 810 $ 822 Due after one year through five years 9,921 9,395 13,026 13,378 Due after five years through ten years 89,921 81,819 50,785 52,357 Due after ten years 483,707 441,943 773,985 781,313 584,267 533,872 838,606 847,870 Mortgage-backed securities 1,581,452 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) 2022 2021 Securities HTM at Fair Value Amortized Cost Fair Amortized Cost Fair Due after ten years $ 39,093 $ 35,903 $ 52,944 $ 52,576 39,093 35,903 52,944 52,576 Mortgage-backed securities 2,589 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) 2022 2021 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 — 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. ` 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. |
LOANS AND LEASES, NET
LOANS AND LEASES, NET | 12 Months Ended |
Sep. 30, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND LEASES, NET | 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 21,071 $ 21,071 $ — $ — $ — Term lending 14,066 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 financing 8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 Insurance premium finance 2,550 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 finance 24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 Consumer credit products 3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 Other consumer finance 113 51 124 288 25,018 25,306 124 — 124 Consumer finance 3,322 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 investment 28,203 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 Leases Nonperforming Loans and Leases (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 56,194 $ 56,194 $ — $ — $ — Term lending 11,879 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 financing 4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 Insurance premium finance 1,415 375 599 2,389 426,478 428,867 599 — 599 SBA/USDA 66 974 987 2,027 245,729 247,756 987 — 987 Other commercial finance — — — — 157,908 157,908 — — — Commercial finance 18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 Consumer credit products 713 527 511 1,751 127,500 129,251 511 — 511 Other consumer finance 963 285 725 1,973 121,633 123,606 725 — 725 Consumer finance 1,676 812 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 investment 19,945 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2022 2021 2020 2019 2018 Prior 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 financing 977 310 2,442 13 8 — — 3,750 — SBA/USDA — — 1,199 — — 252 — 1,451 1,199 Commercial finance 1,228 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2021 2020 2019 2018 2017 Prior 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 finance 131 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 Year Revolving Loans and Leases Total (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Term lending $ 207 $ 720 $ 716 $ 130 $ 70 $ 192 $ — $ 2,035 Asset based lending — — — — — — 39 39 Lease financing 8 158 98 131 45 — — 440 Insurance premium finance 1,513 110 5 — — — — 1,628 Commercial finance 1,728 988 819 261 115 192 39 4,142 Consumer credit products 2,123 481 42 23 — — — 2,669 Other consumer finance — 124 — — — — — 124 Consumer finance 2,123 605 42 23 — — — 2,793 Tax services 8,873 — — — — — — 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 Year Revolving Loans and Leases Total (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Term lending $ 2,546 $ — $ 12 $ — $ — $ — $ — $ 2,558 Lease financing 429 7,558 224 99 31 4 — 8,345 Insurance premium finance 468 131 — — — — — 599 SBA/USDA — 987 — — — — — 987 Commercial finance 3,443 8,676 236 99 31 4 — 12,489 Consumer credit products 206 77 224 3 — — — 510 Other consumer finance — — — — — 725 — 725 Consumer finance 206 77 224 3 — 725 — 1,235 Tax services 7,962 — — — — — — 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) 2022 2021 Term lending $ 11,320 $ 14,623 Asset based lending 3,754 444 Factoring 6,344 757 Lease financing 3,278 3,029 SBA/USDA 1,244 550 Commercial finance 25,940 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." id="sjs-B4">LOANS AND LEASES, NET Loans and leases consist of the following: At September 30, (Dollars in thousands) 2022 2021 Term lending $ 1,090,289 $ 961,019 Asset based lending 351,696 300,225 Factoring 372,595 363,670 Lease financing 210,692 266,050 Insurance premium finance 479,754 428,867 SBA/USDA 359,238 247,756 Other commercial finance 159,409 157,908 Commercial finance 3,023,673 2,725,495 Consumer credit products 144,353 129,251 Other consumer finance 25,306 123,606 Consumer finance 169,659 252,857 Tax services 9,098 10,405 Warehouse finance 326,850 419,926 Community banking — 199,132 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) 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) 2022 2021 Loans Purchased Commercial finance $ 3,098 $ — Warehouse finance 112,255 308,014 Community banking — 3,318 Total purchases $ 115,353 $ 311,332 Loans Sold Loans held for sale: Commercial finance $ 50,848 $ 89,276 Consumer finance 855,291 494,585 Community banking 153,222 308,082 Loans held for investment: Commercial finance 15,549 — Consumer finance 77,456 — Community banking 30,235 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) 2022 2021 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 The components of total lease income were as follows: Fiscal Year Ended September 30, (Dollars in thousands) 2022 2021 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 payments 46,017 39,553 Profit recorded on commencement date on sales-type leases — 337 Other (1) 5,982 4,986 Total leasing and equipment finance noninterest income 51,999 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 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 — 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) 2022 2021 Beginning balance $ 68,281 $ 56,188 Impact of CECL adoption — 12,773 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 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 Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for credit losses: Term lending $ 29,351 $ 4,850 $ (12,629) $ 3,049 $ 24,621 Asset based lending 1,726 (1,092) (16) 432 1,050 Factoring 3,997 11,699 (11,057) 1,917 6,556 Lease financing 7,629 (2,062) (301) 636 5,902 Insurance premium finance 1,394 597 (767) 226 1,450 SBA/USDA 2,978 863 (652) 74 3,263 Other commercial finance 1,168 142 — — 1,310 Commercial finance 48,243 14,997 (25,422) 6,334 44,152 Consumer credit products 1,242 158 — — 1,400 Other consumer finance 6,112 (1,607) (4,787) 345 63 Consumer finance 7,354 (1,449) (4,787) 345 1,463 Tax services 2 28,093 (30,852) 2,762 5 Warehouse finance 420 (93) — — 327 Community banking 12,262 (12,686) — 424 — Total loans and leases 68,281 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 Balance Impact of CECL Adoption Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for loan and lease losses: Term lending $ 15,211 $ 9,999 $ 16,944 $ (14,090) $ 1,287 $ 29,351 Asset based lending 1,406 164 933 (1,200) 423 1,726 Factoring 3,027 987 (1,192) — 1,175 3,997 Lease financing 7,023 (556) 3,758 (2,969) 373 7,629 Insurance premium finance 2,129 (965) (555) (1,192) 1,977 1,394 SBA/USDA 940 2,720 (703) — 21 2,978 Other commercial finance 182 364 622 — — 1,168 Commercial finance 29,918 12,713 19,807 (19,451) 5,256 48,243 Consumer credit products 845 — 397 — — 1,242 Other consumer finance 2,821 5,998 297 (3,324) 320 6,112 Consumer finance 3,666 5,998 694 (3,324) 320 7,354 Tax services 2 — 33,276 (34,354) 1,078 2 Warehouse finance 294 (1) 127 — — 420 Community banking 22,308 (5,937) (3,965) (144) — 12,262 Total loans and leases 56,188 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, 2022 At September 30, 2021 Term lending $ 2,885 $ 20,965 Factoring 550 1,268 Lease financing 2,787 3,882 SBA/USDA 1,199 — 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 Year Revolving Loans and Leases Total At September 30, 2022 2022 2021 2020 2019 2018 Prior Term lending Pass $ 246,627 $ 240,018 $ 105,170 $ 60,417 $ 89,072 $ 61,229 $ — $ 802,533 Watch 45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 Special Mention 9,500 24,885 14,300 2,861 619 242 — 52,407 Substandard 10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 Doubtful 175 407 469 872 204 192 — 2,319 Total 312,468 306,322 177,239 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 Pass 7,407 38,818 31,408 26,552 12,361 823 — 117,369 Watch 8,799 17,098 10,284 6,655 2,899 151 — 45,886 Special Mention 151 6,151 2,644 481 2,876 2,811 — 15,114 Substandard 825 9,486 11,819 7,273 1,245 — — 30,648 Doubtful 144 163 1,280 88 — — — 1,675 Total 17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 Insurance premium finance Pass 478,504 307 8 — — — — 478,819 Watch 539 7 — — — — — 546 Special Mention 169 40 — — — — — 209 Substandard 106 46 — — — — — 152 Doubtful 14 14 — — — — — 28 Total 479,332 414 8 — — — — 479,754 SBA/USDA Pass 54,512 111,907 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 Substandard 4,149 10,968 4,278 — 1,094 4,545 — 25,034 Total 58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 Other commercial finance Pass 5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 Substandard — 9,538 — — — 20,000 — 29,538 Total 5,886 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 Pass 792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 Watch 54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 Special Mention 9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 Substandard 15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 Doubtful 333 584 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 Year Revolving Loans and Leases Total At September 30, 2021 2021 2020 2019 2018 2017 Prior Term lending Pass $ 362,443 $ 192,305 $ 63,708 $ 34,381 $ 3,195 $ 1,236 $ — $ 657,268 Watch 63,046 71,701 32,941 21,419 76 3,628 — 192,811 Special Mention 6,422 26,673 4,821 932 70 633 — 39,551 Substandard 18,569 16,810 26,920 3,529 928 641 — 67,397 Doubtful 252 1,673 1,756 311 — — — 3,992 Total 450,732 309,162 130,146 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 Pass 54,434 73,629 17,153 7,511 1,857 203 — 154,787 Watch 22,061 20,455 9,274 2,739 1,454 — — 55,983 Special Mention 15,402 20,595 4,148 1,546 61 — — 41,752 Substandard 479 4,765 4,981 831 25 — — 11,081 Doubtful — 6 2,402 38 1 — — 2,447 Total 92,376 119,450 37,958 12,665 3,398 203 — 266,050 Insurance premium finance Pass 428,131 144 9 — — — — 428,284 Watch 262 5 — — — — — 267 Special Mention 58 5 — — — — — 63 Substandard 68 107 — — — — — 175 Doubtful 58 20 — — — — — 78 Total 428,577 281 9 — — — — 428,867 SBA/USDA Pass 110,122 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 Total 110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 Other commercial finance Pass 56,957 642 5,786 6,075 3,345 60,965 — 133,770 Watch — 17,404 3,409 451 — — — 21,264 Substandard 466 — — 273 837 1,299 — 2,875 Total 57,423 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 Pass 1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 Watch 85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 Special Mention 21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 Substandard 19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 Doubtful 310 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 Leases Nonperforming Loans and Leases (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 21,071 $ 21,071 $ — $ — $ — Term lending 14,066 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 financing 8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 Insurance premium finance 2,550 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 finance 24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 Consumer credit products 3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 Other consumer finance 113 51 124 288 25,018 25,306 124 — 124 Consumer finance 3,322 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 investment 28,203 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 Leases Nonperforming Loans and Leases (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 56,194 $ 56,194 $ — $ — $ — Term lending 11,879 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 financing 4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 Insurance premium finance 1,415 375 599 2,389 426,478 428,867 599 — 599 SBA/USDA 66 974 987 2,027 245,729 247,756 987 — 987 Other commercial finance — — — — 157,908 157,908 — — — Commercial finance 18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 Consumer credit products 713 527 511 1,751 127,500 129,251 511 — 511 Other consumer finance 963 285 725 1,973 121,633 123,606 725 — 725 Consumer finance 1,676 812 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 investment 19,945 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2022 2021 2020 2019 2018 Prior 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 financing 977 310 2,442 13 8 — — 3,750 — SBA/USDA — — 1,199 — — 252 — 1,451 1,199 Commercial finance 1,228 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2021 2020 2019 2018 2017 Prior 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 finance 131 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 Year Revolving Loans and Leases Total (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Term lending $ 207 $ 720 $ 716 $ 130 $ 70 $ 192 $ — $ 2,035 Asset based lending — — — — — — 39 39 Lease financing 8 158 98 131 45 — — 440 Insurance premium finance 1,513 110 5 — — — — 1,628 Commercial finance 1,728 988 819 261 115 192 39 4,142 Consumer credit products 2,123 481 42 23 — — — 2,669 Other consumer finance — 124 — — — — — 124 Consumer finance 2,123 605 42 23 — — — 2,793 Tax services 8,873 — — — — — — 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 Year Revolving Loans and Leases Total (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Term lending $ 2,546 $ — $ 12 $ — $ — $ — $ — $ 2,558 Lease financing 429 7,558 224 99 31 4 — 8,345 Insurance premium finance 468 131 — — — — — 599 SBA/USDA — 987 — — — — — 987 Commercial finance 3,443 8,676 236 99 31 4 — 12,489 Consumer credit products 206 77 224 3 — — — 510 Other consumer finance — — — — — 725 — 725 Consumer finance 206 77 224 3 — 725 — 1,235 Tax services 7,962 — — — — — — 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) 2022 2021 Term lending $ 11,320 $ 14,623 Asset based lending 3,754 444 Factoring 6,344 757 Lease financing 3,278 3,029 SBA/USDA 1,244 550 Commercial finance 25,940 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. |
EARNINGS PER COMMON SHARE ("EPS
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) 2022 2021 2020 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 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 Total weighted-average basic common shares outstanding 29,227,071 31,729,596 34,829,971 Effect of dilutive securities (1) Stock options — — — Performance share units 5,176 21,926 — Total effect of dilutive securities 5,176 21,926 — Total weighted-average diluted common shares outstanding 29,232,247 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. |
PREMISES, FURNITURE, AND EQUIPM
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) 2022 2021 Land $ 1,354 $ 1,354 Buildings 21,300 21,196 Furniture, fixtures, and equipment 56,631 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 consists of the following: At September 30, (Dollars in thousands) 2022 2021 Computers and IT networking equipment $ 21,669 $ 17,683 Motor vehicles and other 107,648 87,396 Other furniture and equipment 34,254 48,828 Solar panels and equipment 133,765 125,457 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 Future minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows: (Dollars in thousands) 2023 $ 39,286 2024 30,807 2025 23,158 2026 14,651 2027 8,454 Thereafter 9,704 Total $ 126,060 |
RENTAL EQUIPMENT, NET
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) 2022 2021 Land $ 1,354 $ 1,354 Buildings 21,300 21,196 Furniture, fixtures, and equipment 56,631 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 consists of the following: At September 30, (Dollars in thousands) 2022 2021 Computers and IT networking equipment $ 21,669 $ 17,683 Motor vehicles and other 107,648 87,396 Other furniture and equipment 34,254 48,828 Solar panels and equipment 133,765 125,457 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 Future minimum lease payments expected to be received for operating leases at September 30, 2022 were as follows: (Dollars in thousands) 2023 $ 39,286 2024 30,807 2025 23,158 2026 14,651 2027 8,454 Thereafter 9,704 Total $ 126,060 |
GOODWILL AND INTANGIBLE ASSETS
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 2024 4,123 2025 3,561 2026 3,215 2027 2,569 Thereafter 7,286 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 |
OPERATING LEASE RIGHT-OF-USE AS
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 Operating lease liabilities, included in accrued expenses and other liabilities 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 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 The weighted-average discount rate and remaining lease term for operating leases at September 30, 2022 were as follows: Weighted-average discount rate 2.35 % 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) 2022 2021 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 |
TIME CERTIFICATES OF DEPOSIT
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 2024 1,807 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. |
SHORT-TERM AND LONG-TERM BORROW
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) 2022 2021 Trust preferred securities 13,661 13,661 Subordinated debentures, net of issuance costs 20,000 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 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 securities Subordinated debentures Other long-term borrowings Total 2023 $ — $ — $ 603 $ 603 2024 — — 1,764 1,764 2025 — — — — 2026 — — — — 2027 — — — — Thereafter 13,661 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. |
STOCKHOLDERS' EQUITY
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. |
STOCK COMPENSATION
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 Shares Weighted Average Fair Value at Grant Nonvested shares outstanding, September 30, 2021 547,063 $ 30.22 Granted 178,631 55.56 Vested (230,323) 35.70 Forfeited or expired (21,023) 43.45 Nonvested shares outstanding, September 30, 2022 474,348 $ 36.52 Nonvested shares outstanding, September 30, 2020 790,083 $ 30.03 Granted 190,187 30.88 Vested (329,409) 30.32 Forfeited or expired (103,798) 29.66 Nonvested shares outstanding, September 30, 2021 547,063 $ 30.22 (Dollars in thousands, except per share data) Number of Units Weighted Average Fair Value at Grant Performance share units outstanding, September 30, 2021 60,984 $ 34.03 Granted (1) 35,705 57.20 Vested — — Forfeited or expired — — Performance share units outstanding, September 30, 2022 96,689 $ 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) 2022 2021 2020 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. |
INCOME TAXES
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) 2022 2021 2020 Federal: Current $ 5,657 $ 6,402 $ 3,148 Deferred 12,900 (3,909) (4,505) 18,557 2,493 (1,357) State: Current 4,720 5,938 4,860 Deferred 4,687 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) 2022 2021 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 (1) 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 — Other assets 2,662 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, 2022 2021 2020 (Dollars in thousands) Amount Rate Amount Rate Amount Rate 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 benefits 7,413 4.0 % 6,452 4.1 % 5,444 4.7 % 162(m) disallowance 1,125 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) 2022 2021 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. |
CAPITAL REQUIREMENTS AND RESTRI
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. Company Bank Minimum Minimum to be Well Capitalized Under Prompt Corrective Action Provisions At September 30, 2022 Tier 1 leverage capital ratio 8.10 % 8.19 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 12.07 12.55 4.50 6.50 Tier 1 capital ratio 12.39 12.55 6.00 8.00 Total capital ratio 13.88 13.57 8.00 10.00 At September 30, 2021 Tier 1 leverage capital ratio 7.67 % 8.69 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 12.12 14.11 4.50 6.50 Tier 1 capital ratio 12.46 14.13 6.00 8.00 Total capital ratio 15.45 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 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) ADD: Adoption of Accounting Standards Update 2016-13 2,689 Common Equity Tier 1 (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 (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: Goodwill 309,505 LESS: Intangible assets 25,691 Tangible common equity 309,944 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. |
REVENUE FROM CONTRACTS WITH CUS
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) Consumer Commercial Corporate Services/Other Consolidated Company Fiscal Year Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 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 fees 39,809 37,967 — — — — 39,809 37,967 Refund advance fee income (1) 40,557 47,639 — — — — 40,557 47,639 Payment card and deposit fees 104,684 107,182 — — — — 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 income 189,252 195,708 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 |
SEGMENT REPORTING
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) Consumer Commercial Corporate Services/Other Total Net interest income $ 98,366 $ 187,209 $ 21,749 $ 307,324 Provision (reversal of) for credit losses 30,680 14,674 (16,816) 28,538 Noninterest income 189,252 68,412 36,143 293,807 Noninterest expense 99,589 128,904 156,782 385,275 Income (loss) before income tax expense 157,349 112,043 (82,074) 187,318 Total assets 356,994 3,487,461 2,902,955 6,747,410 Total goodwill 87,145 222,360 — 309,505 Total deposits 5,695,776 8,965 161,296 5,866,037 Fiscal Year Ended September 30, 2021 (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Net interest income $ 91,489 $ 173,969 $ 13,533 $ 278,991 Provision (reversal of) for credit losses 35,765 19,791 (5,790) 49,766 Noninterest income 195,708 61,813 13,383 270,904 Noninterest expense 90,792 114,925 137,966 343,683 Income (loss) before income tax expense 160,640 101,066 (105,260) 156,446 Total assets 354,441 3,208,889 3,127,320 6,690,650 Total goodwill 87,145 222,360 — 309,505 Total deposits 5,342,192 6,625 166,154 5,514,971 Fiscal Year Ended September 30, 2020 (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Net interest income $ 92,362 $ 151,649 $ 15,027 $ 259,038 Provision for loan and lease losses 21,807 29,296 13,673 64,776 Noninterest income 158,284 60,151 21,359 239,794 Noninterest expense 76,533 107,790 134,728 319,051 Income (loss) before income tax expense 152,306 74,714 (112,015) 115,005 Total assets 276,998 2,854,088 2,960,988 6,092,074 Total goodwill 87,145 222,360 — 309,505 Total deposits 4,555,999 6,226 416,975 4,979,200 |
PARENT COMPANY FINANCIAL STATEM
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, 2022 September 30, 2021 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 AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated debentures $ 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 Non-controlling interest (30) 1,155 Total stockholders' equity 645,140 871,884 Total liabilities and stockholders' equity $ 687,220 $ 964,781 Condensed Statements of Operations Fiscal Years Ended September 30, (Dollars in thousands) 2022 2021 2020 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 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 Total Income 160,401 148,305 107,506 Net income attributable to parent $ 156,386 $ 141,708 $ 104,720 Condensed Statements of Cash Flows Fiscal Year Ended September 30, (Dollars in thousands) 2022 2021 2020 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 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) — — Proceeds from long-term borrowings 20,000 — — 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 stock 1 — 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 (used in) 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 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. |
SELECTED QUARTERLY FINANCIAL DA
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 31 March 31 June 30 September 30 Fiscal Year 2022 Interest and dividend income $ 72,891 $ 85,177 $ 73,906 $ 80,222 Interest expense 1,278 1,377 1,755 462 Net interest income 71,613 83,800 72,151 79,760 Provision (reversal of) for credit losses 186 32,302 (1,302) (2,648) Noninterest income 86,591 109,766 53,994 43,456 Net income attributable to parent 61,324 49,251 22,391 23,420 Earnings per common share Basic $ 2.00 $ 1.66 $ 0.76 $ 0.81 Diluted 2.00 1.66 0.76 0.81 Dividend declared per share 0.05 0.05 0.05 0.05 Fiscal Year 2021 Interest and dividend income $ 68,146 $ 75,669 $ 69,983 $ 72,056 Interest expense 2,147 1,819 1,508 1,389 Net interest income 65,999 73,850 68,475 70,667 Provision for loan and lease losses 6,089 30,290 4,612 8,775 Noninterest income 45,455 113,453 62,453 49,542 Net income attributable to parent 28,037 59,066 38,701 15,903 Earnings per common share Basic $ 0.84 $ 1.84 $ 1.21 $ 0.50 Diluted 0.84 1.84 1.21 0.50 Dividend declared per share 0.05 0.05 0.05 0.05 Fiscal Year 2020 Interest and dividend income $ 77,625 $ 79,403 $ 67,406 $ 68,407 Interest expense 12,974 11,666 5,269 3,894 Net interest income 64,651 67,737 62,137 64,513 Provision for loan and lease losses 3,407 37,296 15,093 8,980 Noninterest income 37,483 120,513 41,048 40,750 Net income attributable to parent 21,068 52,304 18,190 13,158 Earnings per common share Basic $ 0.56 $ 1.45 $ 0.53 $ 0.38 Diluted 0.56 1.45 0.53 0.38 Dividend declared per share 0.05 0.05 0.05 0.05 |
FAIR VALUES OF FINANCIAL INSTRU
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) Total Level 1 Level 2 Level 3 Debt securities AFS Corporate securities $ 97,768 $ — $ 97,768 — SBA securities 2,344 — 2,344 — Obligations of states and political subdivisions 263,783 — 263,783 — Non-bank qualified obligations of states and political subdivisions 147,790 — 147,790 — Asset-backed securities 1,348,997 — 1,348,997 — Mortgage-backed securities 22,187 — 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) Total Level 1 Level 2 Level 3 Debt securities AFS Corporate securities $ 25,000 $ — $ 25,000 $ — SBA securities 157,209 — 157,209 — Obligations of states and political subdivisions 2,507 — 2,507 — Non-bank qualified obligations of states and political subdivisions 268,295 — 268,295 — Asset-backed securities 394,859 — 394,859 — Mortgage-backed securities 1,017,029 — 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) Total Level 1 Level 2 Level 3 Loans and leases, net individually evaluated for credit loss Commercial finance $ 1,575 $ — $ — $ 1,575 Total loans and leases, net individually evaluated 1,575 — — 1,575 Foreclosed assets, net 1 — — 1 Total $ 1,576 $ — $ — $ 1,576 Fair Value At September 30, 2021 (Dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans and leases, net Commercial finance $ 3,404 $ — $ — $ 3,404 Community banking 9,371 — — 9,371 Total impaired loans and leases, net 12,775 — — 12,775 Foreclosed assets, net 2,077 — — 2,077 Total $ 14,852 $ — $ — $ 14,852 Quantitative Information About Level 3 Fair Value Measurements (Dollars in thousands) Fair Value at September 30, 2022 Fair Value at September 30, 2021 Valuation Unobservable Input Range 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 Estimated Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 388,038 $ 388,038 $ 388,038 $ — $ — Debt securities available for sale 1,882,869 1,882,869 — 1,882,869 — Debt securities held to maturity 41,682 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 sale 21,071 21,071 — 21,071 — Loans and leases 3,529,280 3,525,803 — — 3,525,803 Federal Reserve Bank and Federal Home Loan Bank stocks 28,812 28,812 — 28,812 — Accrued interest receivable 17,979 17,979 17,979 — — Financial liabilities Deposits 5,866,037 5,865,854 5,858,283 7,571 — Other short- and long-term borrowings 36,028 35,986 — 35,986 — Accrued interest payable 192 192 192 — — (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 Estimated Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 314,019 $ 314,019 $ 314,019 $ — $ — Debt securities available for sale 1,864,899 1,864,899 — 1,864,899 — Debt securities held to maturity 56,669 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 sale 56,194 56,194 — 56,194 — Loans and leases 3,607,815 3,616,646 — — 3,616,646 Federal Reserve Bank and Federal Home Loan Bank stocks 28,400 28,400 — 28,400 — Accrued interest receivable 16,254 16,254 16,254 — — Financial liabilities Deposits 5,514,971 5,515,035 5,482,471 32,564 — Other short- and long-term borrowings 92,834 93,938 — 93,938 — Accrued interest payable 579 579 579 — — (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. |
SUBSEQUENT EVENTS
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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The Consolidated Financial Statements include the accounts of Pathward Financial, Inc. ® ("Pathward Financial" or the “Company” or "us"), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include Pathward TM |
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. |
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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
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 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 |
SECURITIES (Tables)
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 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair At September 30, 2022 Corporate securities $ 25,000 $ — $ (2,813) $ 22,187 SBA securities 105,238 — (7,470) 97,768 Obligations of states and political subdivisions 2,469 — (125) 2,344 Non-bank qualified obligations of states and political subdivisions 290,754 — (26,971) 263,783 Asset-backed securities 160,806 — (13,016) 147,790 Mortgage-backed securities 1,581,452 — (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 securities 151,958 5,251 — 157,209 Obligations of states and political subdivisions 2,497 10 — 2,507 Non-bank qualified obligations of states and political subdivisions 266,048 3,347 (1,100) 268,295 Asset-backed securities 393,103 3,003 (1,247) 394,859 Mortgage-backed securities 1,016,478 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 Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair At September 30, 2022 Non-bank qualified obligations of states and political subdivisions $ 39,093 $ — $ (3,190) $ 35,903 Mortgage-backed securities 2,589 — (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 securities 3,725 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 MONTHS OVER 12 MONTHS TOTAL (Dollars in thousands) Fair Gross Unrealized (Losses) Fair Gross Unrealized (Losses) Fair Gross Unrealized (Losses) Debt Securities AFS At September 30, 2022 Corporate securities $ — $ — $ 22,187 $ (2,813) $ 22,187 $ (2,813) SBA securities 97,767 (7,470) — — 97,767 (7,470) Obligations of state and political subdivisions 2,345 (125) — — 2,345 (125) Non-bank qualified obligations of states and political subdivisions 195,816 (19,743) 67,967 (7,228) 263,783 (26,971) Asset-backed securities 64,886 (1,838) 82,904 (11,178) 147,790 (13,016) Mortgage-backed securities 816,657 (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 securities 127,110 (283) 91,553 (964) 218,663 (1,247) Mortgage-backed securities 759,035 (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 securities 2,268 (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) 2022 2021 Securities AFS at Fair Value Amortized Cost Fair Amortized Cost Fair Due in one year or less $ 718 $ 715 $ 810 $ 822 Due after one year through five years 9,921 9,395 13,026 13,378 Due after five years through ten years 89,921 81,819 50,785 52,357 Due after ten years 483,707 441,943 773,985 781,313 584,267 533,872 838,606 847,870 Mortgage-backed securities 1,581,452 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) 2022 2021 Securities HTM at Fair Value Amortized Cost Fair Amortized Cost Fair Due after ten years $ 39,093 $ 35,903 $ 52,944 $ 52,576 39,093 35,903 52,944 52,576 Mortgage-backed securities 2,589 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) 2022 2021 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 — Net gain (loss) on securities AFS $ 154 $ 6 $ 51 |
LOANS AND LEASES, NET (Tables)
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) 2022 2021 Term lending $ 1,090,289 $ 961,019 Asset based lending 351,696 300,225 Factoring 372,595 363,670 Lease financing 210,692 266,050 Insurance premium finance 479,754 428,867 SBA/USDA 359,238 247,756 Other commercial finance 159,409 157,908 Commercial finance 3,023,673 2,725,495 Consumer credit products 144,353 129,251 Other consumer finance 25,306 123,606 Consumer finance 169,659 252,857 Tax services 9,098 10,405 Warehouse finance 326,850 419,926 Community banking — 199,132 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) 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) 2022 2021 Loans Purchased Commercial finance $ 3,098 $ — Warehouse finance 112,255 308,014 Community banking — 3,318 Total purchases $ 115,353 $ 311,332 Loans Sold Loans held for sale: Commercial finance $ 50,848 $ 89,276 Consumer finance 855,291 494,585 Community banking 153,222 308,082 Loans held for investment: Commercial finance 15,549 — Consumer finance 77,456 — Community banking 30,235 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) 2022 2021 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 |
Operating Lease, Lease Income | The components of total lease income were as follows: Fiscal Year Ended September 30, (Dollars in thousands) 2022 2021 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 payments 46,017 39,553 Profit recorded on commencement date on sales-type leases — 337 Other (1) 5,982 4,986 Total leasing and equipment finance noninterest income 51,999 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 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 — 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) 2022 2021 Beginning balance $ 68,281 $ 56,188 Impact of CECL adoption — 12,773 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 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 Balance Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for credit losses: Term lending $ 29,351 $ 4,850 $ (12,629) $ 3,049 $ 24,621 Asset based lending 1,726 (1,092) (16) 432 1,050 Factoring 3,997 11,699 (11,057) 1,917 6,556 Lease financing 7,629 (2,062) (301) 636 5,902 Insurance premium finance 1,394 597 (767) 226 1,450 SBA/USDA 2,978 863 (652) 74 3,263 Other commercial finance 1,168 142 — — 1,310 Commercial finance 48,243 14,997 (25,422) 6,334 44,152 Consumer credit products 1,242 158 — — 1,400 Other consumer finance 6,112 (1,607) (4,787) 345 63 Consumer finance 7,354 (1,449) (4,787) 345 1,463 Tax services 2 28,093 (30,852) 2,762 5 Warehouse finance 420 (93) — — 327 Community banking 12,262 (12,686) — 424 — Total loans and leases 68,281 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 Balance Impact of CECL Adoption Provision (Reversal) Charge-offs Recoveries Ending Balance Allowance for loan and lease losses: Term lending $ 15,211 $ 9,999 $ 16,944 $ (14,090) $ 1,287 $ 29,351 Asset based lending 1,406 164 933 (1,200) 423 1,726 Factoring 3,027 987 (1,192) — 1,175 3,997 Lease financing 7,023 (556) 3,758 (2,969) 373 7,629 Insurance premium finance 2,129 (965) (555) (1,192) 1,977 1,394 SBA/USDA 940 2,720 (703) — 21 2,978 Other commercial finance 182 364 622 — — 1,168 Commercial finance 29,918 12,713 19,807 (19,451) 5,256 48,243 Consumer credit products 845 — 397 — — 1,242 Other consumer finance 2,821 5,998 297 (3,324) 320 6,112 Consumer finance 3,666 5,998 694 (3,324) 320 7,354 Tax services 2 — 33,276 (34,354) 1,078 2 Warehouse finance 294 (1) 127 — — 420 Community banking 22,308 (5,937) (3,965) (144) — 12,262 Total loans and leases 56,188 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, 2022 At September 30, 2021 Term lending $ 2,885 $ 20,965 Factoring 550 1,268 Lease financing 2,787 3,882 SBA/USDA 1,199 — 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) 2022 2021 Term lending $ 11,320 $ 14,623 Asset based lending 3,754 444 Factoring 6,344 757 Lease financing 3,278 3,029 SBA/USDA 1,244 550 Commercial finance 25,940 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 Year Revolving Loans and Leases Total At September 30, 2022 2022 2021 2020 2019 2018 Prior Term lending Pass $ 246,627 $ 240,018 $ 105,170 $ 60,417 $ 89,072 $ 61,229 $ — $ 802,533 Watch 45,539 24,318 45,052 11,698 21,077 9,799 — 157,483 Special Mention 9,500 24,885 14,300 2,861 619 242 — 52,407 Substandard 10,627 16,694 12,248 23,266 10,457 2,255 — 75,547 Doubtful 175 407 469 872 204 192 — 2,319 Total 312,468 306,322 177,239 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 Pass 7,407 38,818 31,408 26,552 12,361 823 — 117,369 Watch 8,799 17,098 10,284 6,655 2,899 151 — 45,886 Special Mention 151 6,151 2,644 481 2,876 2,811 — 15,114 Substandard 825 9,486 11,819 7,273 1,245 — — 30,648 Doubtful 144 163 1,280 88 — — — 1,675 Total 17,326 71,716 57,435 41,049 19,381 3,785 — 210,692 Insurance premium finance Pass 478,504 307 8 — — — — 478,819 Watch 539 7 — — — — — 546 Special Mention 169 40 — — — — — 209 Substandard 106 46 — — — — — 152 Doubtful 14 14 — — — — — 28 Total 479,332 414 8 — — — — 479,754 SBA/USDA Pass 54,512 111,907 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 Substandard 4,149 10,968 4,278 — 1,094 4,545 — 25,034 Total 58,661 136,922 46,018 58,109 29,968 29,560 — 359,238 Other commercial finance Pass 5,886 13,607 26,040 20,458 23,098 40,782 — 129,871 Substandard — 9,538 — — — 20,000 — 29,538 Total 5,886 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 Pass 792,936 404,657 203,100 163,965 153,405 127,139 703,727 2,548,929 Watch 54,877 55,259 56,602 19,055 23,976 10,660 249,209 469,638 Special Mention 9,820 31,287 16,944 4,211 3,495 3,053 55,444 124,254 Substandard 15,707 46,732 28,345 30,539 12,796 26,800 42,761 203,680 Doubtful 333 584 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 Year Revolving Loans and Leases Total At September 30, 2021 2021 2020 2019 2018 2017 Prior Term lending Pass $ 362,443 $ 192,305 $ 63,708 $ 34,381 $ 3,195 $ 1,236 $ — $ 657,268 Watch 63,046 71,701 32,941 21,419 76 3,628 — 192,811 Special Mention 6,422 26,673 4,821 932 70 633 — 39,551 Substandard 18,569 16,810 26,920 3,529 928 641 — 67,397 Doubtful 252 1,673 1,756 311 — — — 3,992 Total 450,732 309,162 130,146 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 Pass 54,434 73,629 17,153 7,511 1,857 203 — 154,787 Watch 22,061 20,455 9,274 2,739 1,454 — — 55,983 Special Mention 15,402 20,595 4,148 1,546 61 — — 41,752 Substandard 479 4,765 4,981 831 25 — — 11,081 Doubtful — 6 2,402 38 1 — — 2,447 Total 92,376 119,450 37,958 12,665 3,398 203 — 266,050 Insurance premium finance Pass 428,131 144 9 — — — — 428,284 Watch 262 5 — — — — — 267 Special Mention 58 5 — — — — — 63 Substandard 68 107 — — — — — 175 Doubtful 58 20 — — — — — 78 Total 428,577 281 9 — — — — 428,867 SBA/USDA Pass 110,122 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 Total 110,122 69,582 26,221 25,857 10,265 5,709 — 247,756 Other commercial finance Pass 56,957 642 5,786 6,075 3,345 60,965 — 133,770 Watch — 17,404 3,409 451 — — — 21,264 Substandard 466 — — 273 837 1,299 — 2,875 Total 57,423 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 Pass 1,012,088 303,727 105,274 60,727 20,605 66,655 899,481 2,468,557 Watch 85,369 140,131 47,620 37,132 9,057 3,926 70,056 393,291 Special Mention 21,882 55,606 45,099 5,826 307 1,552 76,171 206,443 Substandard 19,584 25,613 90,900 63,338 17,891 8,762 38,113 264,201 Doubtful 310 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 Leases Nonperforming Loans and Leases (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 21,071 $ 21,071 $ — $ — $ — Term lending 14,066 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 financing 8,265 2,253 1,714 12,232 198,460 210,692 440 3,750 4,190 Insurance premium finance 2,550 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 finance 24,881 6,208 7,868 38,957 2,984,716 3,023,673 4,142 13,375 17,517 Consumer credit products 3,209 2,558 2,669 8,436 135,917 144,353 2,669 — 2,669 Other consumer finance 113 51 124 288 25,018 25,306 124 — 124 Consumer finance 3,322 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 investment 28,203 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 Leases Nonperforming Loans and Leases (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due > 89 Days Past Due Total Past Due Current Total Loans and Leases Receivable > 89 Days Past Due and Accruing Nonaccrual Balance Total Loans held for sale $ — $ — $ — $ — $ 56,194 $ 56,194 $ — $ — $ — Term lending 11,879 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 financing 4,909 3,336 8,401 16,646 249,404 266,050 8,345 3,158 11,503 Insurance premium finance 1,415 375 599 2,389 426,478 428,867 599 — 599 SBA/USDA 66 974 987 2,027 245,729 247,756 987 — 987 Other commercial finance — — — — 157,908 157,908 — — — Commercial finance 18,269 7,388 15,439 41,096 2,684,399 2,725,495 12,489 19,330 31,819 Consumer credit products 713 527 511 1,751 127,500 129,251 511 — 511 Other consumer finance 963 285 725 1,973 121,633 123,606 725 — 725 Consumer finance 1,676 812 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 investment 19,945 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2022 2021 2020 2019 2018 Prior 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 financing 977 310 2,442 13 8 — — 3,750 — SBA/USDA — — 1,199 — — 252 — 1,451 1,199 Commercial finance 1,228 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 Year Revolving Loans and Leases Total Nonaccrual with No ACL (Dollars in thousands) 2021 2020 2019 2018 2017 Prior 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 finance 131 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 Year Revolving Loans and Leases Total (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Term lending $ 207 $ 720 $ 716 $ 130 $ 70 $ 192 $ — $ 2,035 Asset based lending — — — — — — 39 39 Lease financing 8 158 98 131 45 — — 440 Insurance premium finance 1,513 110 5 — — — — 1,628 Commercial finance 1,728 988 819 261 115 192 39 4,142 Consumer credit products 2,123 481 42 23 — — — 2,669 Other consumer finance — 124 — — — — — 124 Consumer finance 2,123 605 42 23 — — — 2,793 Tax services 8,873 — — — — — — 8,873 Total 90 days or more delinquent and accruing $ 12,724 $ 1,593 $ 861 $ 284 $ 115 $ 192 $ 39 $ 15,808 |
EARNINGS PER COMMON SHARE ("E_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) 2022 2021 2020 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 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 Total weighted-average basic common shares outstanding 29,227,071 31,729,596 34,829,971 Effect of dilutive securities (1) Stock options — — — Performance share units 5,176 21,926 — Total effect of dilutive securities 5,176 21,926 — Total weighted-average diluted common shares outstanding 29,232,247 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. |
PREMISES, FURNITURE, AND EQUI_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) 2022 2021 Land $ 1,354 $ 1,354 Buildings 21,300 21,196 Furniture, fixtures, and equipment 56,631 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) 2022 2021 Computers and IT networking equipment $ 21,669 $ 17,683 Motor vehicles and other 107,648 87,396 Other furniture and equipment 34,254 48,828 Solar panels and equipment 133,765 125,457 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 |
RENTAL EQUIPMENT, NET (Tables)
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) 2022 2021 Land $ 1,354 $ 1,354 Buildings 21,300 21,196 Furniture, fixtures, and equipment 56,631 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) 2022 2021 Computers and IT networking equipment $ 21,669 $ 17,683 Motor vehicles and other 107,648 87,396 Other furniture and equipment 34,254 48,828 Solar panels and equipment 133,765 125,457 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 |
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 2024 30,807 2025 23,158 2026 14,651 2027 8,454 Thereafter 9,704 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 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 |
GOODWILL AND INTANGIBLE ASSETS
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 2024 4,123 2025 3,561 2026 3,215 2027 2,569 Thereafter 7,286 Total anticipated intangible amortization $ 25,691 |
OPERATING LEASE RIGHT-OF-USE _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 2024 30,807 2025 23,158 2026 14,651 2027 8,454 Thereafter 9,704 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 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 |
Lease Costs | The weighted-average discount rate and remaining lease term for operating leases at September 30, 2022 were as follows: Weighted-average discount rate 2.35 % 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) 2022 2021 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 |
TIME CERTIFICATES OF DEPOSIT (T
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 2024 1,807 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. |
SHORT-TERM AND LONG-TERM BORR_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) 2022 2021 Trust preferred securities 13,661 13,661 Subordinated debentures, net of issuance costs 20,000 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 |
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 securities Subordinated debentures Other long-term borrowings Total 2023 $ — $ — $ 603 $ 603 2024 — — 1,764 1,764 2025 — — — — 2026 — — — — 2027 — — — — Thereafter 13,661 20,000 — 33,661 Total long-term borrowings $ 13,661 $ 20,000 $ 2,367 $ 36,028 |
STOCK COMPENSATION (Tables)
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 Shares Weighted Average Fair Value at Grant Nonvested shares outstanding, September 30, 2021 547,063 $ 30.22 Granted 178,631 55.56 Vested (230,323) 35.70 Forfeited or expired (21,023) 43.45 Nonvested shares outstanding, September 30, 2022 474,348 $ 36.52 Nonvested shares outstanding, September 30, 2020 790,083 $ 30.03 Granted 190,187 30.88 Vested (329,409) 30.32 Forfeited or expired (103,798) 29.66 Nonvested shares outstanding, September 30, 2021 547,063 $ 30.22 |
Activity of Performance Shares | (Dollars in thousands, except per share data) Number of Units Weighted Average Fair Value at Grant Performance share units outstanding, September 30, 2021 60,984 $ 34.03 Granted (1) 35,705 57.20 Vested — — Forfeited or expired — — Performance share units outstanding, September 30, 2022 96,689 $ 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) 2022 2021 2020 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 |
INCOME TAXES (Tables)
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) 2022 2021 2020 Federal: Current $ 5,657 $ 6,402 $ 3,148 Deferred 12,900 (3,909) (4,505) 18,557 2,493 (1,357) State: Current 4,720 5,938 4,860 Deferred 4,687 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) 2022 2021 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 (1) 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 — Other assets 2,662 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, 2022 2021 2020 (Dollars in thousands) Amount Rate Amount Rate Amount Rate 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 benefits 7,413 4.0 % 6,452 4.1 % 5,444 4.7 % 162(m) disallowance 1,125 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) 2022 2021 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 |
CAPITAL REQUIREMENTS AND REST_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. Company Bank Minimum Minimum to be Well Capitalized Under Prompt Corrective Action Provisions At September 30, 2022 Tier 1 leverage capital ratio 8.10 % 8.19 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 12.07 12.55 4.50 6.50 Tier 1 capital ratio 12.39 12.55 6.00 8.00 Total capital ratio 13.88 13.57 8.00 10.00 At September 30, 2021 Tier 1 leverage capital ratio 7.67 % 8.69 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 12.12 14.11 4.50 6.50 Tier 1 capital ratio 12.46 14.13 6.00 8.00 Total capital ratio 15.45 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 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) ADD: Adoption of Accounting Standards Update 2016-13 2,689 Common Equity Tier 1 (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 (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: Goodwill 309,505 LESS: Intangible assets 25,691 Tangible common equity 309,944 LESS: AOCI (213,080) Tangible common equity excluding AOCI $ 523,024 |
REVENUE FROM CONTRACTS WITH C_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) Consumer Commercial Corporate Services/Other Consolidated Company Fiscal Year Ended September 30, 2022 2021 2022 2021 2022 2021 2022 2021 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 fees 39,809 37,967 — — — — 39,809 37,967 Refund advance fee income (1) 40,557 47,639 — — — — 40,557 47,639 Payment card and deposit fees 104,684 107,182 — — — — 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 income 189,252 195,708 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. |
SEGMENT REPORTING (Tables)
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) Consumer Commercial Corporate Services/Other Total Net interest income $ 98,366 $ 187,209 $ 21,749 $ 307,324 Provision (reversal of) for credit losses 30,680 14,674 (16,816) 28,538 Noninterest income 189,252 68,412 36,143 293,807 Noninterest expense 99,589 128,904 156,782 385,275 Income (loss) before income tax expense 157,349 112,043 (82,074) 187,318 Total assets 356,994 3,487,461 2,902,955 6,747,410 Total goodwill 87,145 222,360 — 309,505 Total deposits 5,695,776 8,965 161,296 5,866,037 Fiscal Year Ended September 30, 2021 (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Net interest income $ 91,489 $ 173,969 $ 13,533 $ 278,991 Provision (reversal of) for credit losses 35,765 19,791 (5,790) 49,766 Noninterest income 195,708 61,813 13,383 270,904 Noninterest expense 90,792 114,925 137,966 343,683 Income (loss) before income tax expense 160,640 101,066 (105,260) 156,446 Total assets 354,441 3,208,889 3,127,320 6,690,650 Total goodwill 87,145 222,360 — 309,505 Total deposits 5,342,192 6,625 166,154 5,514,971 Fiscal Year Ended September 30, 2020 (Dollars in thousands) Consumer Commercial Corporate Services/Other Total Net interest income $ 92,362 $ 151,649 $ 15,027 $ 259,038 Provision for loan and lease losses 21,807 29,296 13,673 64,776 Noninterest income 158,284 60,151 21,359 239,794 Noninterest expense 76,533 107,790 134,728 319,051 Income (loss) before income tax expense 152,306 74,714 (112,015) 115,005 Total assets 276,998 2,854,088 2,960,988 6,092,074 Total goodwill 87,145 222,360 — 309,505 Total deposits 4,555,999 6,226 416,975 4,979,200 |
PARENT COMPANY FINANCIAL STAT_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, 2022 September 30, 2021 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 AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated debentures $ 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 Non-controlling interest (30) 1,155 Total stockholders' equity 645,140 871,884 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) 2022 2021 2020 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 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 Total Income 160,401 148,305 107,506 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) 2022 2021 2020 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 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) — — Proceeds from long-term borrowings 20,000 — — 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 stock 1 — 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 (used in) 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 Cash and cash equivalents at end of fiscal year $ 13,117 $ 3,296 $ 4,783 |
SELECTED QUARTERLY FINANCIAL _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 31 March 31 June 30 September 30 Fiscal Year 2022 Interest and dividend income $ 72,891 $ 85,177 $ 73,906 $ 80,222 Interest expense 1,278 1,377 1,755 462 Net interest income 71,613 83,800 72,151 79,760 Provision (reversal of) for credit losses 186 32,302 (1,302) (2,648) Noninterest income 86,591 109,766 53,994 43,456 Net income attributable to parent 61,324 49,251 22,391 23,420 Earnings per common share Basic $ 2.00 $ 1.66 $ 0.76 $ 0.81 Diluted 2.00 1.66 0.76 0.81 Dividend declared per share 0.05 0.05 0.05 0.05 Fiscal Year 2021 Interest and dividend income $ 68,146 $ 75,669 $ 69,983 $ 72,056 Interest expense 2,147 1,819 1,508 1,389 Net interest income 65,999 73,850 68,475 70,667 Provision for loan and lease losses 6,089 30,290 4,612 8,775 Noninterest income 45,455 113,453 62,453 49,542 Net income attributable to parent 28,037 59,066 38,701 15,903 Earnings per common share Basic $ 0.84 $ 1.84 $ 1.21 $ 0.50 Diluted 0.84 1.84 1.21 0.50 Dividend declared per share 0.05 0.05 0.05 0.05 Fiscal Year 2020 Interest and dividend income $ 77,625 $ 79,403 $ 67,406 $ 68,407 Interest expense 12,974 11,666 5,269 3,894 Net interest income 64,651 67,737 62,137 64,513 Provision for loan and lease losses 3,407 37,296 15,093 8,980 Noninterest income 37,483 120,513 41,048 40,750 Net income attributable to parent 21,068 52,304 18,190 13,158 Earnings per common share Basic $ 0.56 $ 1.45 $ 0.53 $ 0.38 Diluted 0.56 1.45 0.53 0.38 Dividend declared per share 0.05 0.05 0.05 0.05 |
FAIR VALUES OF FINANCIAL INST_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) Total Level 1 Level 2 Level 3 Debt securities AFS Corporate securities $ 97,768 $ — $ 97,768 — SBA securities 2,344 — 2,344 — Obligations of states and political subdivisions 263,783 — 263,783 — Non-bank qualified obligations of states and political subdivisions 147,790 — 147,790 — Asset-backed securities 1,348,997 — 1,348,997 — Mortgage-backed securities 22,187 — 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) Total Level 1 Level 2 Level 3 Debt securities AFS Corporate securities $ 25,000 $ — $ 25,000 $ — SBA securities 157,209 — 157,209 — Obligations of states and political subdivisions 2,507 — 2,507 — Non-bank qualified obligations of states and political subdivisions 268,295 — 268,295 — Asset-backed securities 394,859 — 394,859 — Mortgage-backed securities 1,017,029 — 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) Total Level 1 Level 2 Level 3 Loans and leases, net individually evaluated for credit loss Commercial finance $ 1,575 $ — $ — $ 1,575 Total loans and leases, net individually evaluated 1,575 — — 1,575 Foreclosed assets, net 1 — — 1 Total $ 1,576 $ — $ — $ 1,576 Fair Value At September 30, 2021 (Dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans and leases, net Commercial finance $ 3,404 $ — $ — $ 3,404 Community banking 9,371 — — 9,371 Total impaired loans and leases, net 12,775 — — 12,775 Foreclosed assets, net 2,077 — — 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, 2022 Fair Value at September 30, 2021 Valuation Unobservable Input Range 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 Estimated Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 388,038 $ 388,038 $ 388,038 $ — $ — Debt securities available for sale 1,882,869 1,882,869 — 1,882,869 — Debt securities held to maturity 41,682 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 sale 21,071 21,071 — 21,071 — Loans and leases 3,529,280 3,525,803 — — 3,525,803 Federal Reserve Bank and Federal Home Loan Bank stocks 28,812 28,812 — 28,812 — Accrued interest receivable 17,979 17,979 17,979 — — Financial liabilities Deposits 5,866,037 5,865,854 5,858,283 7,571 — Other short- and long-term borrowings 36,028 35,986 — 35,986 — Accrued interest payable 192 192 192 — — (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 Estimated Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 314,019 $ 314,019 $ 314,019 $ — $ — Debt securities available for sale 1,864,899 1,864,899 — 1,864,899 — Debt securities held to maturity 56,669 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 sale 56,194 56,194 — 56,194 — Loans and leases 3,607,815 3,616,646 — — 3,616,646 Federal Reserve Bank and Federal Home Loan Bank stocks 28,400 28,400 — 28,400 — Accrued interest receivable 16,254 16,254 16,254 — — Financial liabilities Deposits 5,514,971 5,515,035 5,482,471 32,564 — Other short- and long-term borrowings 92,834 93,938 — 93,938 — Accrued interest payable 579 579 579 — — (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. |
SUMMARY OF SIGNIFICANT ACCOUN_4
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% | |||
Percent of eligible compensation contributed | 6% | |||
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% | |||
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% | |||
Maximum | Other Assets Investments | ||||
Equity Investments | ||||
Equity method investment, ownership percentage | 25% | |||
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% | |||
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 |
SUMMARY OF SIGNIFICANT ACCOUN_5
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 |
SIGNIFICANT EVENTS (Details)
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 |
SECURITIES - Narrative (Details
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 |
SECURITIES - Schedule of Securi
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 |
SECURITIES - Activities Related
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 |
LOANS AND LEASES, NET - Summary
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) |
LOANS AND LEASES, NET - Additio
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 | 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 |
LOANS AND LEASES, NET - Schedul
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 |
LOANS AND LEASES, NET - Direct
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 |
LOANS AND LEASES, NET - Allowan
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) |
LOANS AND LEASES, NET - Asset C
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 |
LOANS AND LEASES, NET - Past Du
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 |
LOANS AND LEASES, NET - Nonaccr
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 |
LOANS AND LEASES, NET - Impaire
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 |
EARNINGS PER COMMON SHARE ("E_3
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 | $ 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 | $ 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 |
PREMISES, FURNITURE, AND EQUI_3
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 |
RENTAL EQUIPMENT, NET - Schedul
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 |
RENTAL EQUIPMENT, NET - Sched_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 |
GOODWILL AND INTANGIBLE ASSET_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 |
GOODWILL AND INTANGIBLE ASSET_3
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 |
OPERATING LEASE RIGHT-OF-USE _3
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 |
OPERATING LEASE RIGHT-OF-USE _4
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 |
OPERATING LEASE RIGHT-OF-USE _5
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 |
TIME CERTIFICATES OF DEPOSIT (D
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 |
SHORT-TERM AND LONG-TERM BORR_3
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 |
SHORT-TERM AND LONG-TERM BORR_4
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% | |||
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% |
SHORT-TERM AND LONG-TERM BORR_5
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 |
STOCKHOLDERS' EQUITY (Details)
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 | $ 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 |
STOCK COMPENSATION - Additional
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% | ||
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 |
STOCK COMPENSATION - Nonvested
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 |
STOCK COMPENSATION - Performanc
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 |
STOCK COMPENSATION - Effects to
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 |
INCOME TAXES (Details)
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% | 21% | 21% |
State income taxes net of federal benefits (percent) | 4% | 4.10% | 4.70% |
162 (m) disallowance (percent) | 0.40% | 0.40% | 1% |
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 |
CAPITAL REQUIREMENTS AND REST_3
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% | 4% |
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 5% | 5% |
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% | 8% |
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10% | 10% |
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% |
CAPITAL REQUIREMENTS AND REST_4
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 |
CAPITAL REQUIREMENTS AND REST_5
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 |
REVENUE FROM CONTRACTS WITH C_3
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 |
SEGMENT REPORTING (Details)
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 |
PARENT COMPANY FINANCIAL STAT_3
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 |
PARENT COMPANY FINANCIAL STAT_4
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 |
PARENT COMPANY FINANCIAL STAT_5
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 |
SELECTED QUARTERLY FINANCIAL _3
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 | $ 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 | 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 |
FAIR VALUES OF FINANCIAL INST_3
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 |
FAIR VALUES OF FINANCIAL INST_4
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% | |
Impaired Loans | Level 3 | Valuation, Market Approach | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of estimated selling cost | 59% | |
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% | |
Foreclosed Assets | Level 3 | Valuation, Market Approach | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of estimated selling cost | 20% |
FAIR VALUES OF FINANCIAL INST_5
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 |