CHFC 2018 Annual Report

December 31, 2018 Due In (Dollars in thousands) 1 Year or Less 1 to 5 Years Over 5 Years Total Loan maturities: Commercial $ 1,180,581 $ 2,296,822 $ 525,165 $ 4,002,568 Commercial real estate: Owner-occupied 219,398 1,231,037 609,122 2,059,557 Non-owner occupied 440,343 1,424,344 920,333 2,785,020 Vacant land 19,128 32,041 16,341 67,510 Total commercial real estate 678,869 2,687,422 1,545,796 4,912,087 Real estate construction and land development 175,076 326,131 96,005 597,212 Total $ 2,034,526 $ 5,310,375 $ 2,166,966 $ 9,511,867 Percent of total 21.4% 55.8% 22.8% 100.0% Interest sensitivity of above loans: Fixed interest rates $ 628,744 $ 3,362,009 $ 873,128 $ 4,863,881 Variable interest rates 1,405,782 1,948,366 1,293,838 4,647,986 Total $ 2,034,526 $ 5,310,375 $ 2,166,966 $ 9,511,867 The following table presents the contractual maturities of our $8.46 billion commercial loan portfolio at December 31, 2017. December 31, 2017 Due In (Dollars in thousands) 1 Year or Less 1 to 5 Years Over 5 Years Total Loan maturities: Commercial $ 1,175,608 $ 1,766,562 $ 443,472 $ 3,385,642 Commercial real estate: Owner-occupied 254,935 1,048,786 509,841 1,813,562 Non-owner occupied 304,692 1,493,661 808,408 2,606,761 Vacant land 21,211 41,334 17,802 80,347 Total commercial real estate 580,838 2,583,781 1,336,051 4,500,670 Real estate construction and land development 128,706 231,557 213,952 574,215 Total $ 1,885,152 $ 4,581,900 $ 1,993,475 $ 8,460,527 Percent of total 22.3% 54.1% 23.6% 100.00 % Interest sensitivity of above loans: Fixed interest rates $ 717,547 $ 3,074,906 $ 1,013,538 $ 4,805,991 Variable interest rates 1,167,605 1,506,994 979,937 3,654,536 Total $ 1,885,152 $ 4,581,900 $ 1,993,475 $ 8,460,527 Commercial loans consist of loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital and operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the borrower. Commercial loans are generally secured with inventory, accounts receivable, equipment, personal guarantees of the owner or other sources of repayment, although we may also obtain real estate as collateral. Commercial loans were $4.00 billion at December 31, 2018, an increase of $616.9 million, or 18.2%, compared to $3.39 billion at December 31, 2017. Originated commercial loans grew by $879.5 million, or 36.5%, during 2018, partially offset by run-off in the acquired loan portfolio of $262.6 million. Commercial loans increased $168.3 million, or 5.2%, during 2017, compared to $3.22 billion at December 31, 2016. Originated commercial loans grew by $506.1 million, or 26.6%, during 2017, partially offset by run-off in the acquired portfolio of $337.7 million. Commercial loans represented 26.2% of our loan portfolio at December 31, 2018, compared to 23.9% and 24.8% at December 31, 2017 and 2016, respectively. Commercial real estate loans include loans that are secured by real estate occupied by the borrower for ongoing operations (owner occupied), non-owner occupied real estate leased to one or more tenants (non-owner occupied) and vacant land that has 55