CHFC 2017 Annual Report

Loans Modified Under Troubled Debt Restructurings (TDRs) The following tables present the recorded investment of loans modified into TDRs during the years ended December 31, 2017, 2016 and 2015 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type (Dollars in thousands) Principal deferral Principal reduction A/B Note Restructure (1) Interest rate Forbearance agreement Total number of loans Pre- modification recorded investment Post- modification recorded investment For the year ended December 31, 2017 Commercial loan portfolio: Commercial $ 2,308 $ — $ — $ 1,827 $ 2,176 36 $ 6,416 $ 6,311 Commercial real estate 706 — — 338 953 16 2,097 1,997 Real estate construction and land development 35 — — — — 1 36 35 Subtotal 3,049 — — 2,165 3,129 53 8,549 8,343 Consumer loan portfolio: Residential mortgage 297 — — 383 — 11 763 680 Consumer installment 118 37 — 37 — 34 208 192 Home equity 389 — — 52 — 14 537 441 Subtotal 804 37 — 472 — 59 1,508 1,313 Total loans $ 3,853 $ 37 $ — $ 2,637 $ 3,129 112 $ 10,057 $ 9,656 For the year ended December 31, 2016 Commercial loan portfolio: Commercial $ 11,533 $ 1,527 $ 43 $ — $ 1,750 54 $ 14,853 $ 14,853 Commercial real estate 2,993 1,866 — — — 16 4,859 4,859 Subtotal 14,526 3,393 43 — 1,750 70 19,712 19,712 Consumer loan portfolio: Residential mortgage 477 — — — — 4 477 477 Consumer installment 87 — — — — 14 87 87 Home equity 179 — — 364 — 10 543 543 Subtotal 743 — — 364 — 28 1,107 1,107 Total loans $ 15,269 $ 3,393 $ 43 $ 364 $ 1,750 98 $ 20,819 $ 20,819 For the year ended December 31, 2015 Commercial loan portfolio: Commercial $ 6,031 $ — $ — $ 117 $ 5,298 53 $ 11,446 $ 11,446 Commercial real estate 5,904 450 — 102 740 21 7,196 7,196 Real estate construction and land development 705 — — — — 3 705 705 Subtotal 12,640 450 — 219 6,038 77 19,347 19,347 Consumer loan portfolio: Residential mortgage 1,246 — — 635 — 20 1,881 1,881 Consumer installment 210 — — — — 19 210 210 Home equity 1,110 — — 46 — 26 1,158 1,156 Subtotal 2,566 — — 681 — 65 3,249 3,247 Total loans $ 15,206 $ 450 $ — $ 900 $ 6,038 142 $ 22,596 $ 22,594 (1) Loan restructurings whereby the original loan is restructured into two notes: an "A" note, which generally reflects the portion of the modified loans which is expected to be collected: and a "B" note, which is fully charged off. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 123