CHFC 2017 Annual Report

The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. The following schedule presents the Corporation's TDRs at December 31, 2017 and 2016: (Dollars in thousands) Accruing TDRs Nonaccrual TDRs Total December 31, 2017 Commercial loan portfolio $ 34,484 $ 24,358 $ 58,842 Consumer loan portfolio 14,298 4,748 19,046 Total $ 48,782 $ 29,106 $ 77,888 December 31, 2016 Commercial loan portfolio $ 45,388 $ 25,397 $ 70,785 Consumer loan portfolio 17,147 5,134 22,281 Total $ 62,535 $ 30,531 $ 93,066 The following schedule includes TDRs for which there was a payment default during the years ended December 31, 2017, 2016 and 2015, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: For the years ended December 31, 2017 2016 2015 Number of loans Principal balance at year end Number of loans Principal balance at year end Number of loans Principal balance at year end (Dollars in thousands) Commercial loan portfolio: Commercial 5 $ 1,617 — $ — 1 $ 1,206 Commercial real estate — — 2 1,721 5 1,016 Subtotal - commercial loan portfolio 5 1,617 2 1,721 6 2,222 Consumer loan portfolio (residential mortgage) 17 434 14 259 3 65 Total 22 $ 2,051 16 $ 1,980 9 $ 2,287 At December 31, 2017, commitments to lend additional funds to borrowers whose terms have been modified in TDRs totaled $2.0 million. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 124