CHFC 2018 Annual Report

loans in the commercial loan portfolio were $72.6 million at December 31, 2018, an increase of $23.3 million, or 47.2%, from $49.3 million at December 31, 2017. Nonperforming loans in the commercial loan portfolio comprised 84.9% of total nonperforming loans at December 31, 2018, compared to 78.2% at December 31, 2017. Nonperforming loans in the consumer loan portfolio were $12.9 million at December 31, 2018, a decrease of $0.9 million, or 6.6%, from $13.8 million at December 31, 2017. The following schedule summarizes changes in nonaccrual loans (including nonaccrual TDRs) during 2018 and 2017: ars Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of period $ 63,095 $ 44,334 Additions during period 105,032 57,936 Principal balances charged off (15,033) (13,392) Transfers to other real estate/repossessed assets (5,210) (5,891) Return to accrual status (10,276) (4,606) Payments received (52,175) (15,286) Balance at end of period $ 85,433 $ 63,095 Nonperforming Loans — Commercial Loan Portfolio The following schedule presents information related to stratification of nonperforming loans in the commercial loan portfolio by dollar amount at December 31, 2018 and 2017. December 31, 2018 2017 (Dollars in thousands) Number of Borrowers Amount Number of Borrowers Amount $5,000,000 or more 1 $ 14,121 2 $ 10,426 $2,500,000 - $4,999,999 5 16,085 — — $1,000,000 - $2,499,999 4 6,059 7 10,063 $500,000 - $999,999 13 9,232 12 8,593 $250,000 - $499,999 29 10,390 27 9,473 Under $250,000 225 16,678 150 10,758 Total 277 $ 72,565 198 $ 49,313 Nonperforming commercial loans within the commercial loan portfolio were $30.1 million at December 31, 2018, an increase of $10.4 million, or 53.1%, from $19.7 million at December 31, 2017. Nonperforming commercial loans comprised 0.8% of total commercial loans at December 31, 2018, compared to 0.6%at December 31, 2017. There were no individual nonperforming commercial loans greater than $2.0 million at December 31, 2018. Nonperforming commercial real estate loans within the commercial loan portfolio were $42.4 million at December 31, 2018, an increase of $12.9 million, or 43.6%, from $29.5 million at December 31, 2017. Nonperforming commercial real estate loans comprised 0.9% of total commercial real estate loans at December 31, 2018, compared to 0.7% at December 31, 2017. Nonperforming commercial real estate loans secured by owner occupied real estate, non-owner occupied real estate and vacant land totaled $16.1 million, $23.0 million and $3.3 million, respectively, at December 31, 2018. Nonperforming commercial real estate loans secured by owner occupied real estate, non-owner occupied real estate and vacant land totaled $19.1 million, $5.3 million and $5.2 million, respectively, at December 31, 2017. At December 31, 2018, our nonperforming commercial real estate loans were comprised of a diverse mix of commercial lines of business and were also geographically disbursed throughout our market areas. The largest concentrations of the $42.4 million in nonperforming commercial real estate loans at December 31, 2018 was one customer relationship totaling $14.1 million secured by non-owner occupied commercial real estate property that was transferred to nonaccrual status in the third quarter of 2018. Nonperforming real estate construction and land development loans were $12 thousand at December 31, 2018, a decrease of $65 thousand compared to $77 thousand at December 31, 2017. Nonperforming real estate construction and land development loans comprised less than 0.01% of total real estate construction and land development loans at both December 31, 2018 and 2017. At December 31, 2018, we had nonperforming loans in the commercial loan portfolio of $1.1 million that were secured by real estate and were in various stages of foreclosure, compared to $1.2 million at December 31, 2017. 60