CASH 2018 Annual Report

129 Allowance for loan and lease losses and recorded investment in loans and leases at September 30, 2018 and 2017 were as follows: Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance $ 800 $ 1,976 $ (2,643) $ 1,169 $ 1,302 Consumer finance — 5,113 (1,443) — 3,670 Tax services 5 21,344 (21,802) 453 — Total National Lending 805 28,433 (25,888) 1,622 4,972 Community Banking Commercial and multi-family real estate 2,670 3,377 — — 6,047 1-4 family real estate 803 (168) (45) — 590 Agricultural 2,574 (1,769) — 411 1,216 Commercial operating 150 23 — — 173 Consumer 6 64 (31) 3 42 Total Community Banking 6,203 1,527 (76) 414 8,068 Unallocated 527 (527) — — — Total 7,534 29,433 (25,964) 2,037 13,040 Allowance for loan and lease losses: Beginning balance Provision (recovery) for loan and lease losses Charge offs Recoveries Ending balance Year Ended September 30, 2017 (Dollars in Thousands) National Lending Commercial finance $ 589 $ 776 $ (626) $ 61 $ 800 Consumer finance — — — — — Tax services 6 7,612 (7,842) 229 5 Total National Lending 595 8,388 (8,468) 290 805 Community Banking Commercial and multi-family real estate 2,198 610 (138) — 2,670 1-4 family real estate 654 149 — — 803 Agricultural 1,474 1,088 — 12 2,574 Commercial operating 110 425 (390) 5 150 Consumer 51 (44) (1) — 6 Total Community Banking 4,487 2,228 (529) 17 6,203 Unallocated 553 (26) — — 527 Total 5,635 10,589 (8,997) 307 7,534