CASH 2017 Annual Report

118 Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2016 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 84 $ 84 $ — Commercial and Multi-Family Real Estate 433 433 — Total $ 517 $ 517 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 78 $ 78 $ 10 Total $ 78 $ 78 $ 10 Cash interest collected on impaired loans was not material during the years ended September 30, 2017 and 2016. The following table provides the average recorded investment in impaired loans for the years ended September 30, 2017 and 2016. Year Ended September 30, 2017 2016 Average Recorded Investment Average Recorded Investment 1-4 Family Real Estate $ 176 $ 144 Commercial and Multi-Family Real Estate 883 1,117 Agricultural Real Estate 146 — Commercial Operating 202 6 Agricultural Operating 268 2,919 Total $ 1,675 $ 4,186 For fiscal 2017 and 2016, the Company’s TDRs (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table above. No TDRs were recorded during fiscal 2017 or 2016. Also, no TDRs which had been modified during the 12-month period prior to default had a payment default during fiscal 2017 or 2016. In December 2016, MetaBank purchased, net of purchase discount, a $134.0 million seasoned, floating rate, private student loan portfolio. All loans are indexed to three-month LIBOR plus various margins. The portfolio is serviced by ReliaMax Lending Services, LLC and insured by ReliaMax Surety Company. The majority of the Company’s retail bank originated loans are to Iowa- and South Dakota-based individuals and organizations. Excluding the purchased student loan balance of $123.7 million at September 30, 2017, the Company’s purchased loans portfolio totaled $10.7 million at September 30, 2017, which were secured by properties located in Iowa, North Dakota, and South Dakota. The Company originates and purchases commercial real estate loans. These loans are considered by management to be of somewhat greater risk of not being collected due to the dependency on income production. The Company’s commercial real estate loans included $110.2 million of loans secured by hotel properties and $156.4 million of multi-family properties at September 30, 2017. The Company’s commercial real estate loans included $65.4 million of loans secured by hotel properties and $112.6 million of multi-family properties at September 30, 2016. The remainder of the commercial real estate portfolio is diversified by industry. The Company’s policy for requiring collateral and guarantees varies with the creditworthiness of each borrower.