CHFC 2018 Annual Report

The following schedule presents additional information regarding impaired loans by classes of loans segregated by those requiring a valuation allowance and those not requiring a valuation allowance at December 31, 2018, 2017 and 2016 and the respective interest income amounts recognized: For the years ended December 31, 2018 2017 2016 (Dollars in thousands) Average annual recorded investment Interest income recognized while on impaired status Average annual recorded investment Interest income recognized while on impaired status Average annual recorded investment Interest income recognized while on impaired status Impaired loans with a valuation allowance: Commercial $ 17,683 $ 457 $ 25,099 $ 939 $ 7,829 $ — Commercial real estate: Owner-occupied 13,103 352 14,143 531 3,694 583 Non-owner occupied 6,440 48 3,274 89 1,711 139 Vacant land 1,881 47 2,566 57 253 113 Total commercial real estate 21,424 447 19,983 677 5,658 835 Real estate construction and land development 4,619 8 175 10 19 — Residential mortgage 12,179 457 16,390 538 23,958 1,285 Consumer installment 989 8 744 4 359 — Home equity 3,262 80 4,201 82 1,759 — Subtotal 60,156 1,457 66,592 2,250 39,582 2,120 Impaired loans with no related valuation allowance: Commercial 21,954 577 10,196 28 29,559 1,343 Commercial real estate: Owner-occupied 13,807 296 11,999 — 20,306 17 Non-owner occupied 10,681 263 9,143 241 14,306 339 Vacant land 2,730 — 3,516 4 7,034 45 Total commercial real estate 27,218 559 24,658 245 41,646 401 Real estate construction and land development 1,520 7 78 — 585 22 Residential mortgage 7,594 110 4,622 38 1,519 — Consumer installment 304 — 205 — — — Home equity 2,217 25 1,392 14 555 — Subtotal 60,807 1,278 41,151 325 73,864 1,766 Total impaired loans: Commercial 39,637 1,034 35,295 967 37,388 1,343 Commercial real estate: Owner-occupied 26,910 648 26,142 531 24,000 600 Non-owner occupied 17,121 311 12,417 330 16,017 478 Vacant land 4,611 47 6,082 61 7,287 158 Total commercial real estate 48,642 1,006 44,641 922 47,304 1,236 Real estate construction and land development 6,139 15 253 10 604 22 Residential mortgage 19,773 567 21,012 576 25,477 1,285 Consumer installment 1,293 8 949 4 359 — Home equity 5,479 105 5,593 96 2,314 — Total $ 120,963 $ 2,735 $ 107,743 $ 2,575 $ 113,446 $ 3,886 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 126