CASH 2017 Annual Report

18 For more information on the Provision for Loan Losses, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is included in Item 7 of this Annual Report on Form 10-K. The distribution of the Company’s allowance for losses on loans at the dates indicated is summarized as follows: At September 30, 2017 2016 2015 2014 2013 Amount Percent of Loans in Each Category of Total Loans Amount Percent of Loans in Each Category of Total Loans Amount Percent of Loans in Each Category of Total Loans Amount Percent of Loans in Each Category of Total Loans Amount Percent of Loans in Each Category of Total Loans (Dollars in Thousands) 1-4 Family Real Estate $ 803 14.8% $ 654 17.5% $ 278 17.5% $ 552 23.3% $ 333 21.4% Commercial & Multi- Family Real Estate 2,670 44.1 2,198 45.7 1,187 43.5 1,575 44.9 1,937 50.1 Agricultural Real Estate 1,390 4.7 142 6.9 163 9.0 263 11.2 112 7.6 Consumer 6 12.3 51 4.0 20 4.7 78 5.9 74 7.9 Commercial Operating 158 2.7 117 3.4 28 4.2 93 6.2 49 4.2 Agricultural Operating 1,184 2.5 1,332 4.0 3,537 6.1 719 8.5 267 8.8 Premium Finance 796 18.9 588 18.5 293 15.0 — — — — Unallocated 527 — 553 — 749 — 2,117 — 1,158 — Total $ 7,534 100.0% $ 5,635 100.0% $ 6,255 100.0% $ 5,397 100.0% $ 3,930 100.0% Investment Activities General . The investment policy of the Company generally is to invest funds among various categories of investments and maturities based upon the Company’s need for liquidity, to achieve the proper balance between its desire to minimize risk and maximize yield, to provide collateral for borrowings and to fulfill the Company’s asset/liability management policies. The Company’s investment and mortgage-backed securities portfolios are managed in accordance with a written investment policy adopted by the Board of Directors, which is implemented by members of the Company’s Investment Committee. The Company closely monitors balances in these accounts, and maintains a portfolio of highly liquid assets to fund potential deposit outflows or other liquidity needs. To date, the Company has not experienced any significant outflows related to the MPS division deposits, though no assurance can be given that this will continue to be the case. As of September 30, 2017, investment and mortgage-backed securities with fair values of approximately $1.07 billion, $325.4 million, and $9.5 million were pledged as collateral for the Bank’s Federal Home Loan Bank of Des Moines (“FHLB”) advances, Federal Reserve Bank (“FRB”) advances and collateral for securities sold under agreements to repurchase, respectively. For additional information regarding the Company’s collateralization of borrowings, seeNotes 8 and 9 to the “Notes toConsolidated Financial Statements,” which is included in Part II, Item 8 “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. Investment Securities . It is the Company’s general policy to purchase investment securities which are U.S. Government- related securities, U.S. Government-related agency and instrumentality securities, U.S. Government-related agency or instrumentality collateralized securities, state and local government obligations, commercial paper, corporate debt securities and overnight federal funds.