CHFC 2018 Annual Report

(Dollars in thousands) Recorded investment Unpaid principal balance Related valuation allowance December 31, 2017 Impaired loans with a valuation allowance: Commercial $ 28,897 $ 31,655 $ 2,296 Commercial real estate: Owner-occupied 17,774 21,588 2,317 Non-owner occupied 5,307 7,870 316 Vacant land 4,922 5,122 594 Total commercial real estate 28,003 34,580 3,227 Real estate construction and land development 313 313 14 Residential mortgage 15,872 15,872 1,487 Consumer installment 966 966 120 Home equity 4,570 4,570 858 Subtotal 78,621 87,956 8,002 Impaired loans with no related valuation allowance: Commercial 8,504 9,291 — Commercial real estate: Owner-occupied 11,351 12,631 — Non-owner occupied 5,977 6,438 — Vacant land 752 792 — Total commercial real estate 18,080 19,861 — Residential mortgage 4,902 4,902 — Home equity 1,770 1,770 — Subtotal 33,256 35,824 — Total impaired loans: Commercial 37,401 40,946 2,296 Commercial real estate: Owner-occupied 29,125 34,219 2,317 Non-owner occupied 11,284 14,308 316 Vacant land 5,674 5,914 594 Total commercial real estate 46,083 54,441 3,227 Real estate construction and land development 313 313 14 Residential mortgage 20,774 20,774 1,487 Consumer installment 966 966 120 Home equity 6,340 6,340 858 Total $ 111,877 $ 123,780 $ 8,002 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 125