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Changes in the allowance for loan losses were as follows:(in thousands)for the fiscal years ended September 30, 2009 2008Balance, beginning of year ................................................ $ 6,291 $ 2,772Provision for loan losses .................................................. 5,789 13,407Charge-offs ............................................................ (7,875) (13,039)Recoveries ............................................................. 2,821 3,151Balance, End of Year ................................................ $ 7,026 $ 6,291Total net loan charge-offs as a percentage of simple monthly average loansreceivable ............................................................ 1.49% 3.13%Allowance for loan losses as a percentage of loans receivable ..................... 2.21% 1.66%The following is a summary of loan delinquency information:(in thousands)as of September 30, 2009 2008 2007Installment loans, 90 days or more delinquent .............................. $642 $1,054 $1,145Other loans, 90 days or more delinquent .................................. — 36 9Non-accrual loans .................................................... 965 507 271The Company originates automobile loans to individuals for sale in securitization transactions asdescribed in Note 9 – Securitization of Loans Held for Sale. As of September 30, 2009 and 2008, loans heldfor sale were $15.7 million and $32.6 million.Note 9 – Securitization of Loans Held for SaleFrom time to time, the Company enters into automobile loan securitization transactions withsecuritization trusts structured as qualified special purpose entities (the “securitization trusts”), which thenissue asset-backed securities to private investors. The Company records these transactions as sales. Thesecuritization transactions are comprised of prime, non-prime and sub-prime contracts for retail installmentsales that are secured by new and used automobiles purchased from motor vehicle dealers. The Companypurchases the sale contracts in the ordinary course of business.When the Company sells automobile loans in a securitization transaction, it retains certain interests.Residual interests, which include interest-only strips receivable and cash on deposit, represent theCompany’s contractual right to receive excess interest and cash from the pool of securitized loans after thepayment of required amounts to holders of the asset-backed securities and certain other costs associatedwith the securitization. The residual interests are generally fully realizable and subject to limited recourseprovisions. Credit enhancements for the securitization trusts require the Company to maintain a certainamount of cash on deposit, which provides protection for the holders of the asset-backed securities againstdelays in payment and certain losses on the securitized loans. At September 30, 2009 and 2008, the amountsof cash on deposit were $46.9 million and $23.2 million. Discounted values of the cash on deposit wererecognized as part of the residual interests. The Company may also retain subordinated securities fromsecuritization transactions, which are senior to the residual interests. The retained interests in securitizedassets, including the residual interests and the retained subordinated securities, were recognized as banking/finance trading securities in the consolidated balance sheets. Changes in the fair value of the retainedinterests were recognized in earnings.90