CASH 2018 Annual Report

132 Special Mention- Special mention assets are 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 charged off when collection of principal becomes doubtful. Generally, 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 ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired. Past due loans and leases at September 30, 2018 and 2017 were as follows : Accruing and Non-accruing Loans and Leases Non-performing Loans and Leases Past Due Loans and Leases 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 Non- accrual balance Total Year Ended September 30, 2018 (Dollars in Thousands) National Lending Commercial finance 20,708 3,702 5,996 30,406 1,479,443 1,509,849 3,801 2,864 6,665 Consumer finance 3,209 1,595 2,384 7,188 328,173 335,361 2,384 — 2,384 Tax services — — 1,073 1,073 — 1,073 1,073 — 1,073 Total National Lending 23,917 5,297 9,453 38,667 1,807,616 1,846,283 7,258 2,864 10,122 Community Banking Commercial and multi-family real estate — — — — 748,579 748,579 — — — 1-4 family real estate 105 — 79 184 223,298 223,482 79 — 79 Agricultural — — — — 60,498 60,498 — — — Commercial operating — — — — 42,311 42,311 — — — Consumer — — — — 23,836 23,836 — — — Total Community Banking 105 — 79 184 1,098,522 1,098,706 79 — 79 Total Loans and Leases 24,022 5,297 9,532 38,851 2,906,138 2,944,989 7,337 2,864 10,201