CHFC 2017 Annual Report

The following schedule summarizes changes in nonaccrual loans (including nonaccrual TDRs) during 2017 and 2016: ars Ended December 31, (Dollars in thousands) 2017 2016 Balance at beginning of period $ 44,334 $ 62,225 Additions during period 57,936 28,263 Principal balances charged off (13,392) (12,974) Transfers to other real estate/repossessed assets (5,891) (7,046) Return to accrual status (4,606) (6,410) Payments received (15,286) (19,724) Balance at end of period $ 63,095 $ 44,334 Nonperforming Loans — Commercial Loan Portfolio The following schedule presents information related to stratification of nonperforming loans in the commercial loan portfolio by dollar amount at December 31, 2017 and 2016. December 31, 2017 2016 (Dollars in thousands) Number of Borrowers Amount Number of Borrowers Amount $5,000,000 or more 2 $ 10,426 — $ — $2,500,000 - $4,999,999 — — 1 4,793 $1,000,000 - $2,499,999 7 10,063 7 10,526 $500,000 - $999,999 12 8,593 8 5,652 $250,000 - $499,999 27 9,473 10 3,809 Under $250,000 150 10,758 105 8,355 Total 198 $ 49,313 131 $ 33,135 Nonperforming commercial loans were $19.7 million at December 31, 2017, an increase of $6.5 million, or 49.4%, from $13.2 million at December 31, 2016. Nonperforming commercial loans comprised 0.6% of total commercial loans at December 31, 2017, compared to 0.4% at December 31, 2016. Nonperforming commercial real estate loans were $29.5 million at December 31, 2017, an increase of $9.7 million, or 48.6%, from$19.9million at December 31, 2016. Nonperforming commercial real estate loans comprised 0.7%of total commercial real estate loans at December 31, 2017, compared to 0.5% at December 31, 2016. Nonperforming commercial real estate loans secured by owner occupied real estate, non-owner occupied real estate and vacant land totaled $19.0 million, $5.3 million and $5.2 million, respectively, at December 31, 2017. At December 31, 2017, nonperforming commercial real estate loans were comprised of a diverse mix of commercial lines of business and were also geographically disbursed throughout our market areas. The largest concentrations of the $29.5 million in nonperforming commercial real estate loans at December 31, 2017 were two customer relationships totaling $10.3 million. One customer relationship totaling $5.2 million that was primarily secured by vacant land has been in nonperforming status for over five years. This same customer relationship had nonperforming land development loans of $0.1 million and nonperforming residential mortgage loans of $0.4 million. The other commercial customer relationship totaling $5.1 million was secured by owner occupied real estate. Nonperforming real estate construction and land development loans were $0.1 million at both December 31, 2017 and December 31, 2016, respectively. Nonperforming real estate construction and land development loans comprised less than 0.1% of total real estate construction and land development loans at both December 31, 2017 and 2016. At December 31, 2017, nonperforming loans in the commercial loan portfolio of $1.2 million that were secured by real estate and were in various stages of foreclosure, compared to $1.7 million at December 31, 2016. 56