CHFC 2018 Annual Report

Loan delinquency, excluding acquired loans accounted for under ASC 310-30, was as follows: Loans Past Due and Still Accruing (Dollars in thousands) 30-89 days past due 90 days or more past due Total past due Nonaccrual Loans Current Total loans December 31, 2018 Originated Portfolio: Commercial $ 16,835 $ — $ 16,835 $ 30,139 $ 3,240,113 $ 3,287,087 Commercial real estate: Owner-occupied 4,657 52 4,709 16,056 1,492,767 1,513,532 Non-owner occupied 1,793 887 2,680 23,021 1,940,629 1,966,330 Vacant land 160 — 160 3,337 36,798 40,295 Total commercial real estate 6,610 939 7,549 42,414 3,470,194 3,520,157 Real estate construction and land development 247 — 247 12 566,467 566,726 Residential mortgage 1,688 — 1,688 7,988 2,397,629 2,407,305 Consumer installment 4,731 — 4,731 1,276 1,445,345 1,451,352 Home equity 3,843 488 4,331 3,604 604,194 612,129 Total $ 33,954 $ 1,427 $ 35,381 $ 85,433 $11,723,942 $11,844,756 December 31, 2017 Originated Portfolio: Commercial $ 16,269 $ — $ 16,269 $ 19,691 $ 2,371,646 $ 2,407,606 Commercial real estate: — Owner-occupied 4,078 — 4,078 19,070 1,162,466 1,185,614 Non-owner occupied 1,595 13 1,608 5,270 1,511,909 1,518,787 Vacant land 83 — 83 5,205 41,736 47,024 Total commercial real estate 5,756 13 5,769 29,545 2,716,111 2,751,425 Real estate construction and land development — — — 77 498,078 498,155 Residential mortgage 2,325 — 2,325 8,635 1,956,897 1,967,857 Consumer installment 3,663 — 3,663 842 1,506,035 1,510,540 Home equity 2,891 1,364 4,255 4,305 603,286 611,846 Total $ 30,904 $ 1,377 $ 32,281 $ 63,095 $ 9,652,053 $ 9,747,429 Impaired Loans A loan is impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans include nonperforming loans and all TDRs. Impaired loans are accounted for at the lower of the present value of expected cash flows or the estimated fair value of the collateral. When the present value of expected cash flows or the fair value of the collateral of an impaired loan not accounted for under ASC 310-30 is less than the amount of unpaid principal outstanding on the loan, the recorded principal balance of the loan is reduced to its carrying value through either a specific allowance for loan loss or a partial charge-off of the loan balance. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 123