CHFC 2018 Annual Report

December 31, 2018 2017 2016 2015 2014 (Dollars in thousands) Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Allowance Amount Percent of Loans in Each Category to Total Loans Originated loans: Commercial $ 36,931 21% $ 25,329 17% $ 22,388 14% $ 21,909 20% $ 17,951 22% Commercial real estate: Owner-occupied 19,586 10 15,664 8 12,275 7 12,941 11 13,883 12 Non-owner occupied 21,789 13 18,309 11 12,569 7 9,207 8 8,955 8 Vacant land 532 — 1,145 — 552 1 662 1 709 1 Total commercial real estate 41,907 23 35,118 19 25,396 15 22,810 20 23,547 21 Real estate construction and land development 3,921 4 5,686 4 3,417 2 2,515 3 2,658 3 Residential mortgage 14,815 16 13,375 14 13,760 11 14,308 17 11,286 18 Consumer Installment 8,542 10 8,577 11 8,907 10 5,677 12 9,411 14 Home equity 3,448 4 3,802 4 4,400 5 6,109 8 7,606 10 Unallocated — — — — — — — — 2,724 — Subtotal — originated loans 109,564 78% 91,887 69% 78,268 57% 73,328 80% 75,183 88% Acquired loans 420 22% — 31% — 43% — 20% 500 12% Total $ 109,984 100% $ 91,887 100% $ 78,268 100% $ 73,328 100% $ 75,683 100% 65 Deposits Total deposits were $15.59 billion at December 31, 2018, an increase of $1.95 billion, or 14.3%, from total deposits at December 31, 2017 of $13.64 billion. The increase in total deposits during 2018 was spread across all deposit types. Interest and noninterest-bearing demand deposit, and savings and money market accounts totaled $11.22 billion at December 31, 2018, compared to $10.10 billion at December 31, 2017. Time and brokered deposits were $4.37 billion at December 31, 2018, compared to $3.54 billion at December 31, 2017. It is our strategy to develop customer relationships that will drive core deposit growth and stability. Our competitive position within many of our market areas has historically limited our ability to materially increase core deposits without adversely impacting the weighted average cost of the deposit portfolio. While competition for core deposits remained strong throughout our markets during 2018 and 2017, our efforts to expand deposit relationships with existing and new customers, our financial strength and a general trend in customers holding more liquid assets have resulted in continuing increases in customer deposits.