CHFC 2018 Annual Report

The following schedule presents by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2018 and 2017 by impairment evaluation method. (Dollars in thousands) Commercial Loan Portfolio Consumer Loan Portfolio Total Allowance for loan losses balance at December 31, 2018 attributable to: Loans individually evaluated for impairment $ 5,474 $ 1,330 $ 6,804 Loans collectively evaluated for impairment 77,285 25,475 102,760 Loans accounted for under ASC 310-30 420 — 420 Total $ 83,179 $ 26,805 $ 109,984 Recorded investment (loan balance) at December 31, 2018: Loans individually evaluated for impairment $ 105,038 $ 25,835 $ 130,873 Loans collectively evaluated for impairment 7,268,932 4,444,951 11,713,883 Loans accounted for under ASC 310-30 2,137,897 1,287,126 3,425,023 Total $ 9,511,867 $ 5,757,912 $ 15,269,779 Allowance for loan losses balance at December 31, 2017 attributable to: Loans individually evaluated for impairment $ 5,537 $ 2,465 $ 8,002 Loans collectively evaluated for impairment 60,596 23,289 83,885 Loans accounted for under ASC 310-30 — — — Total $ 66,133 $ 25,754 $ 91,887 Recorded investment (loan balance) at December 31, 2017: Loans individually evaluated for impairment $ 83,797 $ 28,080 $ 111,877 Loans collectively evaluated for impairment 5,573,389 4,062,163 9,635,552 Loans accounted for under ASC 310-30 2,803,341 1,604,497 4,407,838 Total $ 8,460,527 $ 5,694,740 $ 14,155,267 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 131 Note 6: Premises and Equipment The following table summarizes premises and equipment: December 31, (Dollars in thousands) 2018 2017 Land and land improvements $ 31,357 $ 31,427 Buildings 133,720 130,028 Furniture and equipment 107,660 100,932 Total 272,737 262,387 Less accumulated depreciation (149,295) (135,491) Premises and equipment, net $ 123,442 $ 126,896 The Corporation leases certain branch properties and equipment under operating leases. Net rent expense was $7.7 million, $6.4 million and $3.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. During the years ended December 31, 2018 and 2017, the Corporation had no transfers and $13.2 million transferred from premises and equipment to other assets, respectively, due to branch or building operation closings/consolidations.