CHFC 2017 Annual Report

31, 2017 2016 2015 2014 2013 (Dollars in thousands) Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Originated loans: Commercial $ 25,329 17% $ 22,388 14% $ 21,909 20% $ 17,951 22% $ 18,251 24% Commercial real estate 35,118 19 25,396 15 22,810 20 23,547 21 23,753 23 Real estate construction and land development 5,686 4 3,417 2 2,515 3 2,658 3 2,478 2 Residential mortgage 13,375 14 13,760 11 14,308 17 11,286 18 12,850 20 Consumer Installment 8,577 11 8,907 10 5,677 12 9,411 14 8,728 14 Home equity 3,802 4 4,400 5 6,109 8 7,606 10 8,067 11 Unallocated — — — — — — 2,724 — 4,445 — Subtotal — originated loans 91,887 69% 78,268 57% 73,328 80% 75,183 88% 78,572 94% Acquired loans — 31% — 43% — 20% 500 12% 500 6% Total $ 91,887 100% $ 78,268 100% $ 73,328 100% $ 75,683 100% $ 79,072 100% 61 Deposits Total deposits were $13.64 billion at December 31, 2017, an increase of $0.77 billion, or 6.0%, from total deposits at December 31, 2016 of $12.87 billion. The increase in total deposits during 2017 was attributable to growth in customer deposits, which included increases in noninterest-bearing demand deposits, savings deposits and time deposits of $644.27 million and brokered deposits of $226.8 million, partially offset by a decrease in interest-bearing demand deposits of $101.4 million. Interest and noninterest-bearing demand deposit and savings accounts were $10.11 billion at December 31, 2017, compared to $9.86 billion at December 31, 2016. Time and brokered deposits were $3.54 billion at December 31, 2017, compared to $3.01 billion at December 31, 2016. It is our strategy to develop customer relationships that will drive core deposit growth and stability. Our competitive position within many of our market areas has historically limited our ability to materially increase core deposits without adversely impacting the weighted average cost of the deposit portfolio. While competition for core deposits remained strong throughout our markets during 2017 and 2016, our efforts to expand deposit relationships with existing customers, our financial strength and a general trend in customers holding more liquid assets have resulted in continuing increases in customer deposits.