CHFC 2017 Annual Report

loan relationships at December 31, 2017 with loan balances greater than $5.0 million and less than $10.0 million, totaling $259.9 million, that had unfunded credit commitments totaling $158.9 million that, if advanced, could result in a loan relationship of $10.0 million or more. The following table presents the contractual maturities of our $8.46 billion commercial loan portfolio at December 31, 2017. The percentage of these loans maturing within one year was 22.3% at December 31, 2017, while the percentage of these loans maturing beyond five years remained low at 23.6% at December 31, 2017. At December 31, 2017, loans in the commercial loan portfolio with maturities beyond one year totaled $6.58 billion, with 62.2% of these loans at fixed interest rates. December 31, 2017 Due In (Dollars in thousands) 1 Year or Less 1 to 5 Years Over 5 Years Total Loan maturities: Commercial $ 1,175,608 $ 1,766,561 $ 443,472 $ 3,385,641 Commercial real estate 580,839 2,583,781 1,336,051 4,500,671 Real estate construction and land development 128,706 231,557 213,952 574,215 Total $ 1,885,153 $ 4,581,899 $ 1,993,475 $ 8,460,527 Percent of total 22.3% 54.1% 23.6% 100.0% Interest sensitivity of above loans: Fixed interest rates $ 717,547 $ 3,074,906 $ 1,013,538 $ 4,805,991 Variable interest rates 1,167,606 1,506,993 979,937 3,654,536 Total $ 1,885,153 $ 4,581,899 $ 1,993,475 $ 8,460,527 The following table presents the contractual maturities of our $7.59 billion commercial loan portfolio at December 31, 2016. December 31, 2016 Due In (Dollars in thousands) 1 Year or Less 1 to 5 Years Over 5 Years Total Loan maturities: Commercial $ 1,064,276 $ 1,739,072 $ 413,952 $ 3,217,300 Commercial real estate 517,175 2,333,992 1,121,973 3,973,140 Real estate construction and land development 91,514 223,846 88,412 403,772 Total $ 1,672,965 $ 4,296,910 $ 1,624,337 $ 7,594,212 Percent of total 22.03% 56.58% 21.39% 100.00 % Interest sensitivity of above loans: Fixed interest rates $ 572,841 $ 2,972,849 $ 1,080,768 $ 4,626,458 Variable interest rates 1,100,124 1,324,061 543,569 2,967,754 Total $ 1,672,965 $ 4,296,910 $ 1,624,337 $ 7,594,212 Commercial loans consist of loans and lines of credit to varying types of businesses, including for profit businesses, municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital and operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the borrower. Commercial loans are generally secured with inventory, accounts receivable, equipment, personal guarantees of the owner or other sources of repayment, although we may also obtain real estate as collateral. Commercial loans were $3.39 billion at December 31, 2017, an increase of $168.3 million, or 5.2%, from commercial loans of $3.22 billion at December 31, 2016. Originated commercial loans grew by $506.1 million, or 26.6%, during 2017, partially offset by run-off in the acquired portfolio of $337.7 million. Commercial loans increased $1.31 billion, or 68.8%, during 2016 from commercial loans of $1.91 billion at December 31, 2015. Originated commercial loans grew by $380.0 million, or 25.0%, during 2016, with the remainder of the growth attributable to the merger with Talmer completed during the year. Commercial loans represented 23.9% of our loan portfolio at December 31, 2017, compared to 24.8% and 26.2% at December 31, 2016 and 2015, respectively. 51