CHFC 2018 Proxy Statement

The independent registered public accounting firm is responsible for expressing an opinion as to whether the consolidated financial statements of the Corporation are presented fairly, in all material respects, in conformity with U.S. generally accepted accounting principles. The Audit Committee has also discussed with KPMG LLP the firm's assessment of the Corporation's internal controls and the matters required to be disclosed by Public Company Accounting Oversight Board’s Auditing Standard No. 1301, " Communications with Audit Committees ." The Audit Committee has also received and discussed the written disclosures and the letter from KPMG LLP required by Public Company Accounting Oversight Board Rule 3526, "Communication with Audit Committees Concerning Independence" , and has conducted a discussion with KPMG LLP regarding its independence. In addition, the Audit Committee has received written materials addressing KPMG LLP’s internal quality control procedures. Based on the reviews and discussions referred to above, the Audit Committee recommended to the board of directors (and the board approved) that the audited consolidated financial statements and management’s assessment of the effectiveness of our internal control over financial reporting be included in our Annual Report on Form 10-K for the year ended December 31, 2017 to be filed with the SEC. A copy of our Annual Report on Form 10-K is part of the Annual Report to Shareholders included with these proxy materials. Respectfully Submitted, Larry D. Stauffer, Chair Jeffrey L. Tate James R. Fitterling Franklin C. Wheatlake Barbara J. Mahone 17