CHFC 2018 Annual Report

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, 2017 Commercial loan portfolio: Commercial $ 2,308 $ — $ 1,827 $ 2,176 36 $ 6,416 $ 6,311 Commercial real estate: Owner-occupied 512 — 311 582 13 1,468 1,405 Non-owner occupied 194 — 27 371 3 629 592 Total commercial real estate 706 — 338 953 16 2,097 1,997 Real estate construction and land development 35 — — — 1 36 35 Subtotal 3,049 — 2,165 3,129 53 8,549 8,343 Consumer loan portfolio: Residential mortgage 297 — 383 — 11 763 680 Consumer installment 118 37 37 — 34 208 192 Home equity 389 — 52 — 14 537 441 Subtotal 804 37 472 — 59 1,508 1,313 Total loans $ 3,853 $ 37 $ 2,637 $ 3,129 112 $ 10,057 $ 9,656 Concession type (Dollars in thousands) Principal deferral Principal reduction A/B Note Restructure (1) Interest rate Forbearance agreement Total number of loans Pre- modification recorded investment Post- modification recorded investment For the year ended December 31, 2016 Commercial loan portfolio: Commercial $ 11,533 $ 1,527 $ 43 $ — $ 1,750 54 $ 14,853 $ 14,853 Commercial real estate: Owner-occupied 2,508 1,866 — — — 13 4,374 4,374 Non-owner occupied 485 — — — — 3 485 485 Total commercial real estate 2,993 1,866 — — — 16 4,859 4,859 Subtotal 14,526 3,393 43 — 1,750 70 19,712 19,712 Consumer loan portfolio: Residential mortgage 477 — — — — 4 477 477 Consumer installment 87 — — — — 14 87 87 Home equity 179 — — 364 — 10 543 543 Subtotal 743 — — 364 — 28 1,107 1,107 Total loans $ 15,269 $ 3,393 $ 43 $ 364 $ 1,750 98 $ 20,819 $ 20,819 (1) Loan restructurings whereby the original loan is restructured into two notes: an "A" note, which generally reflects the portion of the modified loans which is expected to be collected: and a "B" note, which is fully charged off. The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 128