CHFC 2017 Annual Report

Allowance for loan losses balance at December 31, 2016 attributable to: Loans individually evaluated for impairment $ 5,234 $ 4,158 $ 9,392 Loans collectively evaluated for impairment 45,967 22,909 68,876 Loans accounted for under ASC 310-30 — — — Total $ 51,201 $ 27,067 $ 78,268 Recorded investment (loan balance) at December 31, 2016: Loans individually evaluated for impairment $ 78,523 $ 28,346 $ 106,869 Loans collectively evaluated for impairment 4,026,526 3,325,006 7,351,532 Loans accounted for under ASC 310-30 3,489,163 2,043,215 5,532,378 Total $ 7,594,212 $ 5,396,567 $ 12,990,779 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 126 Note 6: Premises and Equipment The following table summarizes premises and equipment: December 31, (Dollars in thousands) 2017 2016 Land and land improvements $ 31,427 $ 36,185 Buildings 130,028 144,155 Furniture and equipment 100,932 91,963 Total 262,387 272,303 Less accumulated depreciation (135,491) (127,291) Premises and equipment, net $ 126,896 $ 145,012 The Corporation leases certain branch properties and equipment under operating leases. Net rent expense was $6.4 million, $3.3 million and $1.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. During the years ended December 31, 2017 and 2016 the Corporation transferred $13.2 million and $4.8 million from premises and equipment to other assets, respectively, due to branch or building operation closings/consolidations.