CHFC 2018 Annual Report

The difference between an impaired loan's recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management's assessment that full collection of the loan balance is not likely. Impaired loans included $45.6 million and $48.8 million at December 31, 2018 and December 31, 2017, respectively, of accruing TDRs. Loans Modified Under Troubled Debt Restructurings (TDRs) The following tables present the recorded investment of loans modified into TDRs during the years ended December 31, 2018, 2017 and 2016 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type (Dollars in thousands) Principal deferral Principal reduction Interest rate Forbearance agreement Total number of loans Pre- modification recorded investment Post- modification recorded investment For the year ended December 31, 2018 Commercial loan portfolio: Commercial $ 4,967 $ — $ 4,129 $ 1,438 67 $ 10,566 $ 10,534 Commercial real estate: Owner-occupied 981 — 2,945 953 19 5,018 4,879 Non-owner occupied 68 66 — — 2 143 134 Total commercial real estate 1,049 66 2,945 953 21 5,161 5,013 Subtotal 6,016 66 7,074 2,391 88 15,727 15,547 Consumer loan portfolio: Residential mortgage 269 151 147 — 9 577 567 Consumer installment 192 168 113 — 47 492 473 Home equity 469 73 453 — 25 1,076 995 Subtotal 930 392 713 — 81 2,145 2,035 Total loans $ 6,946 $ 458 $ 7,787 $ 2,391 169 $ 17,872 $ 17,582 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 127