CASH 2018 Annual Report

162 Fair Value at September 30, 2018 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Commercial finance $ 4,825 $ — $ — $ 4,825 Total National Lending 4,825 — — 4,825 Total impaired loans and leases 4,825 — — 4,825 Foreclosed Assets, net 31,638 — — 31,638 Total $ 36,463 $ — $ — $ 36,463 Fair Value At September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans and Leases, net Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2018 Fair Value at September 30, 2017 Valuation Technique Unobservable Input Impaired Loans and Leases, net $ 4,825 $ — Market approach Appraised values (1) Foreclosed Assets, net 31,638 292 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. T he following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates provided. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2018 and 2017, as more fully described below. The operations of the Company are managed from a going concern basis and not a liquidation basis. As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations. Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value. Neither of these components have been given consideration in the presentation of fair values below. The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2018 and 2017.