10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to ____________            

Commission File Number: 000-08185

CHEMICAL FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Michigan	38-2022454
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
235 E. Main Street Midland, Michigan	48640
(Address of Principal Executive Offices)	(Zip Code)

(989) 839-5350

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	þ	Accelerated filer	¨
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ

The number of shares outstanding of the registrant’s Common Stock, $1 par value, as of July 24, 2015, was 38,112,634 shares.

INDEX

Chemical Financial Corporation

Form 10-Q

Index to Form 10-Q

	Page
Forward-Looking Statements	3
Part I. Financial Information	4
Item 1. Financial Statements	4
Consolidated Statements of Financial Position as of June 30, 2015 (unaudited), December 31, 2014 and June 30, 2014 (unaudited)	4
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2015 and 2014 (unaudited)	5
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2015 and 2014 (unaudited)	6
Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2015 and 2014 (unaudited)	7
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014 (unaudited)	8
Notes to Consolidated Financial Statements (unaudited)	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	55
Item 3. Quantitative and Qualitative Disclosures About Market Risk	87
Item 4. Controls and Procedures	87
Part II. Other Information	88
Item 1A. Risk Factors	88
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	88
Item 6. Exhibits	89
Signatures	90
Exhibit Index	91

2

Forward-Looking Statements

This report contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and Chemical Financial Corporation (Corporation). Words and phrases such as "anticipates," "believes," "continue," "estimates," "expects," "forecasts," "intends," "is likely," "judgment," "look forward," "may," "opinion," "plans," "predicts," "probable," "projects," "should," "strategic," "trend," "will," and variations of such words and phrases or similar expressions are intended to identify such forward-looking statements. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All statements referencing future time periods are forward-looking.

Management's determination of the provision and allowance for loan losses; the carrying value of acquired loans, goodwill and mortgage servicing rights; the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment); and management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated. All of the information concerning interest rate sensitivity is forward-looking. The future effect of changes in the financial and credit markets and the national and regional economies on the banking industry, generally, and on the Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

This report may contain forward-looking statements regarding the Corporation's outlook or expectations with respect to its recently completed acquisition of Lake Michigan Financial Corporation (Lake Michigan), the expected costs to be incurred in connection with the acquisition, Lake Michigan's future performance and consequences of its integration into the Corporation and the impact of the transaction on the Corporation’s future performance.

Risk factors relating to this transaction and the integration of Lake Michigan into the Corporation after closing include, without limitation:

• The transaction may be more expensive to complete and the anticipated benefits, including anticipated cost savings and strategic gains, may be significantly harder or take longer to achieve than expected or may not be achieved in their entirety as a result of unexpected factors or events.

• The integration of Lake Michigan's business and operations into the Corporation, which will include conversion of operating systems and procedures, may take longer than anticipated or be more costly than anticipated or have unanticipated adverse results relating to Lake Michigan's or the Corporation's existing businesses.

• The Corporation's ability to achieve anticipated results from the transaction is dependent on the state of the economic and financial markets going forward. Specifically, the Corporation may incur more credit losses from Lake Michigan's loan portfolio than expected and deposit attrition may be greater than expected.

In addition, risk factors include, but are not limited to, the risk factors described in Item 1A of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

3

Part I. Financial Information

Item 1.    Financial Statements

Chemical Financial Corporation

Consolidated Statements of Financial Position

	June 30, 2015			December 31, 2014			June 30, 2014
	(Unaudited)						(Unaudited)
	(In thousands, except share data)
Assets
Cash and cash equivalents:
Cash and cash due from banks	$	167,054		$	144,892		$	139,023
Interest-bearing deposits with the Federal Reserve Bank and other banks	47,980			38,128			1,271
Total cash and cash equivalents	215,034			183,020			140,294
Investment securities:
Available-for-sale, at fair value	685,706			748,864			615,975
Held-to-maturity (fair value - $466,578 at June 30, 2015, $315,740 at December 31, 2014 and $303,961 at June 30, 2014)	469,837			316,413			308,130
Total investment securities	1,155,543			1,065,277			924,105
Loans held-for-sale, at fair value	7,798			9,128			6,329
Loans	7,034,743			5,688,230			4,898,804
Allowance for loan losses	(74,941		)	(75,683		)	(77,793		)
Net loans	6,959,802			5,612,547			4,821,011
Premises and equipment (net of accumulated depreciation of $112,530 at June 30, 2015, $108,826 at December 31, 2014 and $104,225 at June 30, 2014)	111,968			97,496			74,291
Goodwill	285,512			180,128			120,164
Other intangible assets	41,201			33,080			12,454
Interest receivable and other assets	243,867			141,467			133,327
Total Assets	$	9,020,725		$	7,322,143		$	6,231,975
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing	$	1,860,863		$	1,591,661		$	1,283,439
Interest-bearing	5,432,116			4,487,310			3,809,474
Total deposits	7,292,979			6,078,971			5,092,913
Interest payable and other liabilities	66,174			56,572			40,142
Short-term borrowings	532,291			389,467			305,422
Other borrowings	148,490			—			—
Total liabilities	8,039,934			6,525,010			5,438,477
Shareholders’ equity:
Preferred stock, no par value:
Authorized – 2,000,000 shares at June 30, 2015 and 200,000 shares at both December 31, 2014 and June 30, 2014, none issued	—			—			—
Common stock, $1 par value per share:
Authorized — 60,000,000 shares at June 30, 2015 and 45,000,000 shares at both December 31, 2014 and June 30, 2014
Issued and outstanding — 38,110,136 shares at June 30, 2015, 32,774,420 shares at December 31, 2014 and 32,760,088 shares at June 30, 2014	38,110			32,774			32,760
Additional paid-in capital	722,329			565,166			563,393
Retained earnings	251,456			231,646			215,333
Accumulated other comprehensive loss	(31,104		)	(32,453		)	(17,988		)
Total shareholders’ equity	980,791			797,133			793,498
Total Liabilities and Shareholders’ Equity	$	9,020,725		$	7,322,143		$	6,231,975

See accompanying notes to consolidated financial statements (unaudited).

4

Chemical Financial Corporation

Consolidated Statements of Income (Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Interest Income
Interest and fees on loans	$	64,613	$	50,751	$	122,710	$	99,946
Interest on investment securities:
Taxable	2,202		2,248		4,509		4,631
Tax-exempt	2,185		1,671		4,091		3,375
Dividends on nonmarketable equity securities	551		411		749		649
Interest on deposits with the Federal Reserve Bank and other banks	128		99		250		224
Total interest income	69,679		55,180		132,309		108,825
Interest Expense
Interest on deposits	3,630		3,626		6,982		7,371
Interest on short-term borrowings	101		94		199		215
Interest on other borrowings	213		—		213		—
Total interest expense	3,944		3,720		7,394		7,586
Net Interest Income	65,735		51,460		124,915		101,239
Provision for loan losses	1,500		1,500		3,000		3,100
Net interest income after provision for loan losses	64,235		49,960		121,915		98,139
Noninterest Income
Service charges and fees on deposit accounts	6,445		5,486		12,361		10,416
Wealth management revenue	5,605		3,958		10,676		7,589
Other charges and fees for customer services	6,516		4,682		12,506		8,876
Mortgage banking revenue	1,688		1,491		3,091		2,285
Gain on sale of investment securities	28		—		607		—
Other	392		184		708		351
Total noninterest income	20,674		15,801		39,949		29,517
Operating Expenses
Salaries, wages and employee benefits	31,711		24,860		60,964		49,044
Occupancy	4,386		3,638		8,812		8,012
Equipment and software	4,480		3,413		8,878		6,874
Acquisition-related expenses	3,457		647		4,819		970
Other	12,751		9,867		24,332		19,707
Total operating expenses	56,785		42,425		107,805		84,607
Income before income taxes	28,124		23,336		54,059		43,049
Federal income tax expense	9,100		7,100		17,200		13,000
Net Income	$	19,024	$	16,236	$	36,859	$	30,049
Net Income Per Common Share:
Basic	$	0.54	$	0.54	$	1.08	$	1.00
Diluted	0.54		0.54		1.08		1.00
Cash Dividends Declared Per Common Share	0.24		0.23		0.48		0.46

See accompanying notes to consolidated financial statements (unaudited).

5

Chemical Financial Corporation

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands)
Net income	$	19,024		$	16,236		$	36,859		$	30,049
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $(1,084) and $909 for the three months ended June 30, 2015 and 2014, respectively, and $177 and $1,766 for the six months ended June 30, 2015 and 2014, respectively	(2,014		)	1,687			331			3,280
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $10 for the three months ended June 30, 2015 and $212 for the six months ended June 30, 2015	(18		)	—			(395		)	—
Adjustment for pension and other postretirement benefits, net of tax expense (benefit) of $380 and $(202) for the three months ended June 30, 2015 and 2014, respectively, and $761 and $(403) for the six months ended June 30, 2015 and 2014, respectively	707			(374		)	1,413			(748		)
Total other comprehensive income (loss), net of tax	(1,325		)	1,313			1,349			2,532
Comprehensive income	$	17,699		$	17,549		$	38,208		$	32,581

See accompanying notes to consolidated financial statements (unaudited).

6

Chemical Financial Corporation

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total
	(In thousands, except per share data)
Balances at December 31, 2013	$	29,790	$	488,177		$	199,053		$	(20,520	)	$	696,500
Comprehensive income						30,049			2,532			32,581
Cash dividends declared and paid of $0.46 per share						(13,769		)				(13,769		)
Issuance of common stock, net of issuance costs	2,875		73,300									76,175
Shares issued – stock options	41		813									854
Shares issued – directors’ stock plans	18		450									468
Shares issued – restricted stock units	36		(520		)							(484		)
Share-based compensation			1,173									1,173
Balances at June 30, 2014	$	32,760	$	563,393		$	215,333		$	(17,988	)	$	793,498
Balances at December 31, 2014	$	32,774	$	565,166		$	231,646		$	(32,453	)	$	797,133
Comprehensive income						36,859			1,349			38,208
Cash dividends declared and paid of $0.48 per share						(17,049		)				(17,049		)
Issuance of common stock in business acquisitions	5,183		154,721									159,904
Shares issued – stock options	88		1,058									1,146
Shares issued – directors’ stock plans	11		305									316
Shares issued – restricted stock units	53		(381		)							(328		)
Share-based compensation	1		1,460									1,461
Balances at June 30, 2015	$	38,110	$	722,329		$	251,456		$	(31,104	)	$	980,791

See accompanying notes to consolidated financial statements (unaudited).

7

Chemical Financial Corporation

Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Operating Activities
Net income	$	36,859		$	30,049
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,000			3,100
Gains on sales of loans	(3,375		)	(1,680		)
Proceeds from sales of loans	119,683			59,490
Loans originated for sale	(111,903		)	(58,920		)
Net gains from sales/writedowns of other real estate and repossessed assets	(1,578		)	(856		)
Depreciation of premises and equipment	5,239			4,238
Amortization of intangible assets	3,787			1,391
Net gains on sale of investment securities	(607		)	—
Net amortization of premiums and discounts on investment securities	2,759			2,129
Share-based compensation expense	1,461			1,173
Net increase in interest receivable and other assets	(11,695		)	(1,503		)
Net increase (decrease) in interest payable and other liabilities	(15,727		)	754
Net cash provided by operating activities	27,903			39,365
Investing Activities
Investment securities – available-for-sale:
Proceeds from sales	13,173			—
Proceeds from maturities, calls and principal reductions	113,973			71,919
Investment securities – held-to-maturity:
Proceeds from maturities, calls and principal reductions	54,481			66,230
Purchases	(205,286		)	(100,862		)
Net increase in loans	(250,997		)	(260,201		)
Proceeds from sales of other real estate and repossessed assets	7,934			4,879
Purchases of premises and equipment, net of disposals	(3,333		)	(3,221		)
Cash acquired, net of cash paid, in business combinations	16,551			—
Net cash used in investing activities	(253,504		)	(221,256		)
Financing Activities
Net increase in interest- and noninterest-bearing demand deposits and savings accounts	217,719			23,559
Net decrease in time deposits	(72,795		)	(53,031		)
Net increase (decrease) in short-term borrowings	103,824			(22,006		)
Proceeds from issuance of other borrowings	25,000			—
Cash dividends paid	(17,049		)	(13,769		)
Proceeds from issuance of common stock, net of issuance costs	—			76,175
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld	1,462			1,163
Cash paid for payroll taxes upon conversion of share-based awards	(546		)	(694		)
Net cash provided by financing activities	257,615			11,397
Net increase (decrease) in cash and cash equivalents	32,014			(170,494		)
Cash and cash equivalents at beginning of period	183,020			310,788
Cash and cash equivalents at end of period	$	215,034		$	140,294
Supplemental Disclosure of Cash Flow Information:
Interest paid	$	6,592		$	7,719
Loans transferred to other real estate and repossessed assets	5,908			4,639
Closed branch offices transferred to other real estate	359			—
Federal income taxes paid	20,800			12,900
Business combinations:
Fair value of tangible assets acquired (non-cash)	1,284,552			—
Goodwill and identifiable intangible assets acquired	116,478			—
Liabilities assumed	1,257,917			—
Common stock issued	159,904			—

See accompanying notes to consolidated financial statements (unaudited).

8

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Note 1: Significant Accounting Policies

Nature of Operations

Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through three commercial banks, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan. The Bank of Holland and The Bank of Northern Michigan, which were acquired in the May 31, 2015 acquisition of Lake Michigan Financial Corporation (Lake Michigan), are expected to be consolidated with and into Chemical Bank during the fourth quarter of 2015 in conjunction with the conversion of their core data systems to Chemical Bank's. In addition, the Corporation acquired Monarch Community Bank as part of its April 1, 2015 acquisition of Monarch Community Bancorp, Inc. (Monarch). Monarch Community Bank was consolidated with and into Chemical Bank during the second quarter of 2015. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products.

The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Use of Estimates

Management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, fair value amounts related to business combinations, pension expense, income taxes, goodwill impairment and those assets that require fair value measurement. Actual results could differ from these estimates.

Business Combinations

Pursuant to the guidance of ASC Topic 805, Business Combinations (ASC 805), the Corporation recognizes assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and restructuring costs expensed in the period incurred.

On May 31, 2015, the Corporation acquired all the outstanding stock of Lake Michigan for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. The Corporation recorded $100 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

On April 1, 2015, the Corporation acquired all the outstanding stock of Monarch in an all-stock transaction valued at $27.2 million. The Corporation recorded $5.4 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

9

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

ASC 805 affords a measurement period beyond the acquisition date that allows the Corporation the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. The Corporation anticipates that measurement period adjustments may arise from adjustments to the fair values of assets and liabilities recognized at the acquisition date for Northwestern Bancorp, Inc. (Northwestern), which occurred on October 31, 2014, Lake Michigan, and Monarch, as additional information is obtained, such as appraisals of collateral securing loans and other borrower information. In the event that a measurement period adjustment is identified, the Corporation will recognize the adjustment as part of its acquisition accounting, which may result in an adjustment to goodwill being recorded.

See Note 2 for further information regarding the Corporation's acquisitions.

Originated Loans

Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period.

The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months) and collectibility is no longer in doubt.

Loans Acquired in a Business Combination

Loans acquired in a business combination (acquired loans) consist of loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern, and on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date.

The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 2 pools in the acquisition of Lake Michigan, 2 pools in the acquisition of Monarch, 4 pools in the acquisition of Northwestern and 14 pools in the acquisition of OAK based upon common risk characteristics, including types of loans, commercial type loans with similar risk grades and whether loans were performing or nonperforming. A pool is considered a single unit of accounting for the purposes of applying the guidance prescribed in ASC 310-30. A loan will be removed from a pool of acquired loans only if the loan is sold, foreclosed, paid off or written off, and will be removed from the pool at the carrying value. If an individual loan is removed from a pool of loans, the difference between its relative carrying amount and the cash, fair value of the collateral, or other assets received would not affect the effective yield used to recognize the accretable difference on the remaining pool. The Corporation estimated the cash flows expected to be collected over the life of the pools of loans at acquisition and estimates expected cash flows quarterly thereafter, based on a set of assumptions including expectations as to default rates, prepayment rates and loss severities. The Corporation must make numerous assumptions, interpretations and judgments using internal and third-party credit quality information to determine whether it is probable that the Corporation will be able to collect all contractually required payments. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved.

10

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The calculation of the fair value of the acquired loan pools entails estimating the amount and timing of cash flows attributable to both principal and interest expected to be collected on such loan pools and then discounting those cash flows at market interest rates. The excess of a loan pool's expected cash flows at the acquisition date over its estimated fair value is referred to as the "accretable yield," which is recognized into interest income over the estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool.

Loans Modified Under Troubled Debt Restructurings

Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. In accordance with ASC Topic 310-30, acquired loans are excluded from TDRs as these loans are accounted for in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been renewed by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR.

Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the loan.

Loans in the Corporation’s consumer loan portfolio (comprised of residential mortgage, consumer installment and home equity loans) that meet the definition of a performing or nonperforming TDR generally consist of residential mortgage loans that include a concession that reduces a borrower’s monthly payments by decreasing the interest rate charged on the loan for a specified period of time (generally 24 months) under a formal modification agreement. The Corporation recognizes an additional provision for loan losses related to impairment on these loans on an individual basis based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. These loans continue to accrue interest at their effective interest rate, which consists of contractual interest under the terms of the modification agreement in addition to an adjustment for the accretion of computed impairment. These loans are moved to nonaccrual status if they become 90 days past due as to principal or interest payments, or sooner if conditions warrant.

11

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Impaired Loans

A loan is defined to be impaired when it is probable that payment of principal and interest will not be paid in accordance with the original contractual terms of the loan agreement. Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with original contractual terms. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's original effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. When the present value of expected cash flows or the fair value of collateral of an impaired loan in the originated loan portfolio is less than the amount of unpaid principal outstanding on the loan, the principal balance of the loan is reduced to its carrying value through either an allocation of the allowance for loan losses or a partial charge-off of the loan balance.

Nonperforming Loans

Nonperforming loans are comprised of loans for which the accrual of interest has been discontinued (nonaccrual loans, including nonaccrual TDRs), accruing originated loans contractually past due 90 days or more as to interest or principal payments and nonperforming TDRs.

Acquired loans that were classified as nonperforming loans prior to being acquired and acquired loans that are not performing in accordance with contractual terms subsequent to acquisition are not classified as nonperforming loans subsequent to acquisition because the loans are recorded in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans.

Allowance for Loan Losses

The allowance for loan losses (allowance) is presented as a reserve against loans. The allowance represents management’s assessment of probable loan losses inherent in the Corporation’s loan portfolio.

Management’s evaluation of the adequacy of the allowance is based on a continuing review of the loan portfolio, actual loan loss experience, the underlying value of the collateral, risk characteristics of the loan portfolio, the level and composition of nonperforming loans, the financial condition of the borrowers, the balance of the loan portfolio, loan growth, economic conditions, employment levels in the Corporation’s local markets, and special factors affecting specific business sectors. The Corporation maintains formal policies and procedures to monitor and control credit risk. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio.

The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be incurred in the remainder of the originated loan portfolio, but that have not been specifically identified. The Corporation utilizes its own loss experience to estimate inherent losses on loans. Internal risk ratings are assigned to each loan in the commercial loan portfolio (commercial, commercial real estate, real estate construction and land development loans) at the time of origination and are subject to subsequent periodic reviews by senior management. The Corporation performs a detailed credit quality review quarterly on all loans greater than $0.25 million that have deteriorated below certain levels of credit risk, and may allocate a specific portion of the allowance to such loans based upon this review. A portion of the allowance is allocated to the remaining loans by applying projected loss ratios, based on numerous factors. Projected loss ratios incorporate factors such as charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty.

In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five-year historical loan loss experience, with higher weighting placed on the most recent years, loan loss trends giving consideration to estimated loss emergence periods and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment.

Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off.

Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On

12

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods.

Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations.

Fair Value Measurements

Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data.

The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2015, December 31, 2014 and June 30, 2014, the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities.

Share-Based Compensation

The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period.

Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows.

Bank-Owned Life Insurance

The Corporation has life insurance policies on certain key officers of its bank subsidiaries. The majority of the bank-owned life insurance policies of the Corporation were obtained through its acquisition of Lake Michigan. Bank-owned life insurance is recorded at the cash surrender value, net of surrender charges, and is included within other assets on the consolidated statements of financial position and changes in the cash surrender values are recorded as other noninterest income on the consolidated statements of income.

13

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Income and Other Taxes

The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and any other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law.

On a quarterly basis, management assesses the reasonableness of its effective federal tax rate based upon its estimate of taxable income and the applicable taxes expected for the full year. Deferred tax assets and liabilities are reassessed on a quarterly basis, including the need for a valuation allowance for deferred tax assets. In conjunction with the acquisition of Monarch, the Corporation has net operating loss carryforwards, which are limited under Internal Revenue Code (IRC) Section 382, included in deferred tax assets. See Note 2 for further information regarding the net operating loss carryforward.

Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2015, December 31, 2014 or June 30, 2014. Tax returns open to examination by the Internal Revenue Service (IRS) include those for the calendar years ended December 31, 2014, 2013, 2012 and 2011 for the Corporation, Lake Michigan, Monarch and Northwestern. Monarch's tax returns for the calendar years ended 2009-2013 are currently under an IRS examination.

Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits

The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment of these projects comes in the form of the tax credits and and tax losses that pass through to the Corporation. The carrying value of the investments are reflected in other assets on the consolidated statements of financial position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects.

Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.2 million and $0.3 million during the three and six months ended June 30, 2015, respectively, and $0.1 million and $0.2 million during the three and six months ended June 30, 2014, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $21.4 million at June 30, 2015, $4.9 million at December 31, 2014 and$3.1 million atJune 30, 2014. The increase in qualified affordable housing project investments at June 30, 2015, compared to December 31, 2014 and June 30, 2014, was attributable to investments acquired as part of the Lake Michigan transaction.

Under the equity method, the Corporation's share of the earnings or losses are included in other operating expenses on the consolidated statements of income. The Corporation's investment in new market projects accounted for under the equity method totaled $3.3 million at June 30, 2015. There were no investments in such projects accounted for under the equity method as of December 31, 2014 or June 30, 2014.

The Corporation's unfunded equity contributions relating to investments in qualified affordable housing projects, federal historic tax projects and new market projects is recorded in other liabilities on the consolidated statements of financial position. The Corporation's remaining unfunded equity contributions totaled $9.7 million at June 30, 2015.

Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. There were no impairment losses recognized as of June 30, 2015, December 31, 2014 or June 30, 2014.

The Corporation consolidates variable interest entities (VIEs) in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on

14

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. The Corporation is a significant limited partner in the qualified affordable housing, federal historic and new market projects it has invested in. These projects meet the definition of VIEs. However, the Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Corporation's consolidated financial statements.

Shareholders’ Equity

Common Stock Repurchase Programs

From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share.

In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2015, there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase program.

Underwritten Public Offerings of Common Stock

On June 24, 2014, the Corporation issued and sold 2,500,000 shares of common stock at a public offering price of $28.00 per share. An additional 375,000 shares were issued and sold on June 30, 2014 upon the exercise in full of the underwriters' over-allotment option. The net proceeds from the issuance and sale of the common stock of this $80.5 million offering, after deducting the underwriting discount and issuance-related expenses, totaled $76.2 million.

On September 18, 2013, the Corporation issued and sold 2,213,750 shares of common stock, including 288,750 shares of common stock that were issued and sold upon the exercise in full of the underwriters' over-allotment option, at a public offering price of $26.00 per share. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $53.9 million.

Shelf Registration

On June 12, 2014, the Corporation filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so.

Preferred Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation which eliminated and replaced the previous class of 200,000 shares of preferred stock, that had been approved by shareholders on April 20, 2009, with a new class of 2,000,000 shares of preferred stock. At June 30, 2015, no shares of preferred stock were issued and outstanding.

Common Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 45,000,000 to 60,000,000.

Legal Matters

The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation.

15

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Reclassifications

Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported.

Adopted Accounting Pronouncements

In-Substance Foreclosures

In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-04). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. The adoption of ASU 2014-04 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Share-Based Compensation

In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Corporation's early adoption of ASU 2014-12 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Government-Guaranteed Mortgage Loans

In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-14). ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. Upon foreclosure of a government-guaranteed mortgage loan, the loan should be derecognized and a separate other receivable should be recognized if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be

16

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

recovered from the guarantor at the time of foreclosure. ASU 2014-14 is effective for public companies for interim and annual periods beginning after December 15, 2014. An entity should adopt using either the modified retrospective method or the prospective transition method. An entity must apply the same method elected under ASU 2014-04. Early adoption is permitted if the entity has already adopted ASU 2014-04. The adoption of ASU 2014-14 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Pending Accounting Pronouncements

There are no recent accounting pronouncements that have been issued by the FASB that would have a material impact on the financial statements of the Corporation.

Note 2: Acquisitions

Acquisition of Lake Michigan Financial Corporation

On May 31, 2015, the Corporation acquired all the outstanding stock consideration of Lake Michigan Financial Corporation (Lake Michigan) for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. As a result of the acquisition, the Corporation issued approximately 4.3 million shares of its common stock, based on an exchange ratio of 1.326 shares of its common stock, and paid $16.64 in cash, for each share of Lake Michigan common stock outstanding. Lake Michigan, a bank holding company which owned The Bank of Holland and The Bank of Northern Michigan, provided traditional banking services and products with five banking offices in Holland, Grand Haven, Grand Rapids, Petoskey and Traverse City, Michigan. The Bank of Holland and The Bank of Northern Michigan will be operated as separate subsidiaries of the Corporation until their planned consolidation with and into Chemical Bank in the fourth quarter of 2015 in conjunction with conversion of their core data systems to Chemical Bank's.

At the acquisition date, Lake Michigan added total assets of $1.24 billion, including total loans of $986 million, and total deposits of $925 million to the Corporation's consolidated statement of financial position. The Corporation recorded $100 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Lake Michigan. In addition, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

The results of the merged Lake Michigan operations are presented within the Corporation's consolidated financial statements from the acquisition date. The Bank of Holland and The Bank of Northern Michigan collectively contributed $3.2 million of net interest income, $0.3 million of noninterest income and $1.1 million of net income to the Corporation's consolidated statements of income for the one month period from the acquisition date of May 31, 2015 to June 30, 2015. Nonrecurring transaction-related expenses associated with the Lake Michigan transaction totaled $2.0 million and $2.3 million during the three and six months ended June 30, 2015, respectively.

The summary computation of the purchase price, including adjustments to reflect Lake Michigan's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Lake Michigan is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provides the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time.

17

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share)	$	130,916
Fair value of Lake Michigan options converted to the Corporation's options	2,000
Cash paid to acquire outstanding stock	54,478
Total purchase price	$	187,394
Net assets acquired:
Lake Michigan shareholders' equity	$	89,280
Adjustments to reflect fair value of net assets acquired:
Loans	(22,600		)
Allowance for loan losses	15,888
Premises and equipment	(2,333		)
Core deposit intangibles	7,303
Deferred tax assets, net	2,269
Deposits and borrowings, net	(3,048		)
Other assets and other liabilities	633
Fair value of adjusted net assets acquired	87,392
Goodwill recognized as a result of the Lake Michigan transaction	$	100,002

Allocation of Purchase Price

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Lake Michigan were as follows (in thousands):

Assets
Cash and cash equivalents	$	39,301
Investment securities	66,699
Loans	985,542
Premises and equipment	13,673
Deferred tax asset, net	14,888
Goodwill	100,002
Core deposit intangible asset	7,303
Bank-owned life insurance	23,844
Other assets	38,449
Assets acquired, at fair value	1,289,701
Liabilities
Deposits	924,697
Short-term borrowings	30,000
Other borrowings	124,723
Other liabilities	22,887
Total liabilities acquired, at fair value	1,102,307
Total purchase price	$	187,394

Upon acquisition, the Lake Michigan loan portfolio had contractually required principal and interest payments receivable of $1.01 billion and $190.2 million, respectively, expected principal and interest cash flows of $986.1 million and $189.6 million, respectively, and a fair value of $985.5 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $22.6 million at the acquisition date, with $22.0 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $190.2 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Lake Michigan acquired loan portfolio were $990 million and $967 million, respectively, and there was no related allowance for loan losses at that date.

18

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Acquisition of Monarch Community Bancorp, Inc.

On April 1, 2015, the Corporation acquired all of the outstanding stock of Monarch Community Bancorp, Inc. (Monarch) in an all-stock transaction valued at $27.2 million. As a result of the acquisition, the Corporation issued 860,575 shares of its common stock based on an exchange ratio of 0.0982 shares of its common stock for each share of Monarch common stock outstanding. Monarch, a bank holding company, owned Monarch Community Bank, which operated five full service branch offices in Coldwater, Marshall, Hillsdale and Union City, Michigan. As of the April 1, 2015 acquisition date, Monarch added total assets of $183 million, including total loans of $122 million, and total deposits of $144 million to the Corporation's consolidated statement of financial position. Monarch Community Bank was consolidated with and into Chemical Bank on May 8, 2015. In connection with the acquisition of Monarch, the Corporation recorded $5.4 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Monarch. In addition, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

The results of the merged Monarch operations are presented within the Corporation's consolidated financial statements from the acquisition date. The disclosure of Monarch's post-acquisition revenue and net income is not practical due to the combining of Monarch's operations with and into Chemical Bank early in the second quarter of 2015. Nonrecurring transaction-related expenses associated with the Monarch acquisition totaled $1.5 million and $2.3 million during the three and six months ended June 30, 2015, respectively.

The summary computation of the purchase price, including adjustments to reflect Monarch's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Monarch is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provide the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time.

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share)	$	26,988
Cash paid	203
Total purchase price	$	27,191
Net assets acquired:
Monarch shareholders' equity	15,270
Adjustments to reflect fair value of net assets acquired:
Loans	(7,150		)
Allowance for loan losses	2,128
Deferred tax assets, net:
Net operating loss carryforward	7,900
Other	1,748
Premises and equipment	(370		)
Core deposit intangibles	1,930
Mortgage servicing rights	315
Other assets and other liabilities	37
Fair value of adjusted net assets acquired	21,808
Goodwill recognized as a result of the Monarch transaction	$	5,383

19

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Allocation of Purchase Price

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Monarch were as follows (in thousands):

Assets
Cash and cash equivalents	$	32,171
Loans	121,783
Premises and equipment	3,064
Deferred tax assets, net
Net operating loss carryforward	7,900
Other	2,314
Interest receivable and other assets	6,972
Goodwill	5,383
Core deposit intangibles	1,930
Mortgage servicing rights	1,284
Assets acquired, at fair value	182,801
Liabilities
Deposits	144,311
FHLB advances	8,000
Interest payable and other liabilities	3,299
Total liabilities acquired, at fair value	155,610
Total purchase price	$	27,191

Upon acquisition, the Monarch loan portfolio had contractually required principal and interest payments receivable of $128.9 million and $37.8 million, respectively, expected principal and interest cash flows of $122.6 million and $37.1 million, respectively, and a fair value of $121.8 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $7.1 million at the acquisition date, with $6.3 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $37.9 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Monarch acquired loan portfolio were $126 million and $119 million, respectively, and there was no related allowance for loan losses at that date.

Upon acquisition, Monarch incurred an ownership change within the meaning of IRC Section 382. At April 1, 2015, Monarch had $22.6 million in gross federal net operating loss carryforwards that expire between 2028-2034, which the Corporation expects to utilize. The Corporation expects to utilize these net operating losses, in part, as Monarch was in a net unrealized built-in gain position as of the acquisition date. Monarch also had $1.7 million of general business credits that expire between 2026-2032, which the Corporation does not expect to utilize.

20

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Unaudited Pro Forma Combined Results of Operations

The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Interest income	$	78,137	$	74,842	$	154,261	$	148,089
Interest expense	5,483		6,748		11,363		13,627
Net interest income	72,654		68,094		142,898		134,462
Provision for loan losses	1,500		1,860		3,000		4,035
Net interest income after provision for loan losses	71,154		66,234		139,898		130,427
Noninterest income	21,153		23,713		43,180		43,487
Operating expenses	62,394		59,915		123,042		121,241
Income before income taxes	29,913		30,032		60,036		52,673
Federal income tax expense	7,525		9,048		16,736		15,807
Net income	$	22,388	$	20,984	$	43,300	$	36,866
Net income per common share:
Basic	$	0.59	$	0.60	$	1.14	$	1.05
Diluted	0.58		0.59		1.13		1.04
Weighted average shares outstanding:
Basic	38,044		35,251		38,024		35,129
Diluted	38,279		35,462		38,259		35,398

Acquisition of Northwestern Bancorp, Inc.

On October 31, 2014, the Corporation acquired all of the outstanding stock of Northwestern Bancorp, Inc. (Northwestern) for total cash consideration of $121 million. Northwestern, a bank holding company which owned Northwestern Bank, provided traditional banking services and products through 25 banking offices serving communities in the northwestern lower peninsula of Michigan. At the acquisition date, Northwestern added total assets of $815 million, including total loans of $475 million, and total deposits of $794 million to the Corporation. Northwestern Bank was consolidated with and into Chemical Bank as of the acquisition date. In connection with the acquisition of Northwestern, the Corporation recorded $60.0 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Northwestern. In addition, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition.

Upon acquisition, the Northwestern loan portfolio had contractually required principal and interest payments receivable of $507 million and $112 million, respectively, expected principal and interest cash flows of $481 million and $104 million, respectively, and a fair value of $475 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $34 million at the acquisition date, with $26 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $110 million at the acquisition date. The outstanding contractual principal balance and the carrying amount of the Northwestern acquired loan portfolio were $415 million and $382 million, respectively, at June 30, 2015, compared to $485 million and $452 million, respectively, at December 31, 2014.

21

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Acquisition of 21 Branches

On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation, located in the Northeast and Battle Creek regions of Michigan, including $404 million in deposits and $44 million in loans (branch acquisition transaction). The purchase price of the branch offices, including equipment, was $8.1 million and the Corporation paid a premium on deposits of $11.5 million, or approximately 2.85% of total deposits. The loans were purchased at a discount of 1.75%. In connection with the branch acquisition transaction, the Corporation recorded goodwill of $6.8 million and other intangible assets attributable to customer core deposits of $5.6 million.

Acquisition of O.A.K. Financial Corporation (OAK)

On April 30, 2010, the Corporation acquired OAK in an all-stock transaction for total consideration of $83.7 million. OAK provided traditional banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At the acquisition date, OAK added total assets of $820 million, including total loans of $627 million, and total deposits of $693 million, including brokered deposits of $193 million. Upon acquisition, the OAK loan portfolio had contractually required principal payments receivable of $683 million and a fair value of $627 million. The outstanding contractual principal balance and the carrying amount of the OAK acquired loan portfolio were $236 million and $215 million, respectively, at June 30, 2015, compared to $268 million and $246 million, respectively, at December 31, 2014 and $298 million and $274 million, respectively, at June 30, 2014.

Accretable Yield

Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:

	Six Months Ended June 30,
	2015															2014
	Lake Michigan			Monarch			North-western			OAK			Total			OAK
	(In thousands)
Balance at beginning of period	$	—		$	—		$	104,675		$	33,286		137,961			$	32,610
Additions attributable to acquisitions	190,246			37,914			—			—			228,160			—
Additions (reductions)*	1,550			(1,141		)	(2,859		)	5,215			2,765			2,333
Accretion recognized in interest income	(3,486		)	(968		)	(10,058		)	(6,326		)	(20,838		)	(7,594		)
Reclassification from nonaccretable difference	—			—			—			—			—			10,000
Balance at end of period	$	188,310		$	35,805		$	91,758		$	32,175		$	348,048		$	37,349

*Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.

22

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Note 3: Investment Securities

The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2015, December 31, 2014 and June 30, 2014:

	Investment Securities Available-for-Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
U.S. Treasury securities	$	8,270	$	24	$	—	$	8,294
Government sponsored agencies	227,424		683		200		227,907
State and political subdivisions	26,476		503		14		26,965
Residential mortgage-backed securities	213,621		742		1,694		212,669
Collateralized mortgage obligations	167,768		245		981		167,032
Corporate bonds	39,680		76		78		39,678
Preferred stock and trust preferred securities	2,889		272		—		3,161
Total	$	686,128	$	2,545	$	2,967	$	685,706
December 31, 2014
U.S. Treasury securities	$	8,272	$	—	$	13	$	8,259
Government sponsored agencies	263,658		356		511		263,503
State and political subdivisions	45,157		1,087		17		46,227
Residential mortgage-backed securities	240,465		885		1,543		239,807
Collateralized mortgage obligations	145,316		261		1,194		144,383
Corporate bonds	44,930		213		48		45,095
Preferred stock	1,389		201		—		1,590
Total	$	749,187	$	3,003	$	3,326	$	748,864
June 30, 2014
Government sponsored agencies	$	88,503	$	346	$	141	$	88,708
State and political subdivisions	40,165		1,443		—		41,608
Residential mortgage-backed securities	265,673		1,117		1,422		265,368
Collateralized mortgage obligations	154,035		376		1,128		153,283
Corporate bonds	64,979		456		83		65,352
Preferred stock	1,389		267		—		1,656
Total	$	614,744	$	4,005	$	2,774	$	615,975

	Investment Securities Held-to-Maturity
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
State and political subdivisions	$	469,337	$	4,853	$	7,912	$	466,278
Trust preferred securities	500		—		200		300
Total	$	469,837	$	4,853	$	8,112	$	466,578
December 31, 2014
State and political subdivisions	$	305,913	$	7,294	$	4,557	$	308,650
Trust preferred securities	10,500		—		3,410		7,090
Total	$	316,413	$	7,294	$	7,967	$	315,740
June 30, 2014
State and political subdivisions	$	297,630	$	5,885	$	6,329	$	297,186
Trust preferred securities	10,500		—		3,725		6,775
Total	$	308,130	$	5,885	$	10,054	$	303,961

23

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The majority of the Corporation’s residential mortgage-backed securities and collateralized mortgage obligations are backed by a U.S. government agency (Government National Mortgage Association) or a government sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association).

As of December 31, 2014 and June 30, 2014, the Corporation held a $10.0 million trust preferred investment security of Lake Michigan. With the acquisition of Lake Michigan, this investment was settled as of the acquisition date at par.

The following is a summary of the amortized cost and fair value of investment securities at June 30, 2015, by maturity, for both available-for-sale and held-to-maturity investment securities. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity.

	June 30, 2015
	Amortized Cost		Fair Value
	(In thousands)
Investment Securities Available-for-Sale:
Due in one year or less	$	198,939	$	198,680
Due after one year through five years	411,399		411,247
Due after five years through ten years	68,583		68,295
Due after ten years	5,818		5,823
Preferred stock	1,389		1,661
Total	$	686,128	$	685,706
Investment Securities Held-to-Maturity:
Due in one year or less	$	55,922	$	56,043
Due after one year through five years	209,886		209,768
Due after five years through ten years	127,398		125,775
Due after ten years	76,631		74,992
Total	$	469,837	$	466,578

24

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In thousands)
June 30, 2015
Government sponsored agencies	$	24,789	$	163	$	14,715	$	37	$	39,504	$	200
State and political subdivisions	258,503		5,433		63,584		2,493		322,087		7,926
Residential mortgage-backed securities	187,858		1,592		3,643		102		191,501		1,694
Collateralized mortgage obligations	49,845		155		48,881		826		98,726		981
Corporate bonds	9,670		49		14,971		29		24,641		78
Trust preferred securities	—		—		300		200		300		200
Total	$	530,665	$	7,392	$	146,094	$	3,687	$	676,759	$	11,079
December 31, 2014
U.S. Treasury securities	$	8,259	$	13	$	—	$	—	$	8,259	$	13
Government sponsored agencies	166,963		406		31,927		105		198,890		511
State and political subdivisions	62,310		3,348		36,847		1,226		99,157		4,574
Residential mortgage-backed securities	17,276		52		180,194		1,491		197,470		1,543
Collateralized mortgage obligations	63,077		179		31,620		1,015		94,697		1,194
Corporate bonds	—		—		14,952		48		14,952		48
Trust preferred securities	—		—		7,090		3,410		7,090		3,410
Total	$	317,885	$	3,998	$	302,630	$	7,295	$	620,515	$	11,293
June 30, 2014
Government sponsored agencies	$	2,377	$	2	$	44,786	$	139	$	47,163	$	141
State and political subdivisions	92,279		4,047		71,421		2,282		163,700		6,329
Residential mortgage-backed securities	10,144		60		197,042		1,362		207,186		1,422
Collateralized mortgage obligations	47,142		68		35,722		1,060		82,864		1,128
Corporate bonds	4,996		5		14,922		78		19,918		83
Trust preferred securities	—		—		6,775		3,725		6,775		3,725
Total	$	156,938	$	4,182	$	370,668	$	8,646	$	527,606	$	12,828

An assessment is performed quarterly by the Corporation to determine whether unrealized losses in its investment securities portfolio are temporary or other-than-temporary by carefully considering all available information. The Corporation reviews factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. Management did not believe any individual unrealized loss on any investment security, as of June 30, 2015, represented an other-than-temporary impairment (OTTI). Management believed that the unrealized losses on investment securities at June 30, 2015 were temporary in nature and due primarily to changes in interest rates and reduced market liquidity and not as a result of credit-related issues.

At June 30, 2015, the Corporation did not have the intent to sell any of its impaired investment securities and believed that it was more-likely-than-not that the Corporation will not have to sell any such investment securities before a full recovery of amortized cost. Accordingly, at June 30, 2015, the Corporation believed the impairments in its investment securities portfolio were temporary in nature. However, there is no assurance that OTTI may not occur in the future.

25

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Note 4: Loans

Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity’s loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has seven classes of loans, which are set forth below.

Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate.

Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development.

Real estate construction — Secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period.

Land development — Secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at June 30, 2015, December 31, 2014 and June 30, 2014 were primarily comprised of loans to develop residential properties.

Residential mortgage — Loans secured by one- to four-family residential properties, generally with fixed interest rates for periods of fifteen years or less. The loan-to-value ratio at the time of origination is generally 80% or less. Residential mortgage loans with a loan-to-value ratio of more than 80% generally require private mortgage insurance.

Consumer installment — Loans to consumers primarily for the purpose of acquiring automobiles, recreational vehicles and personal watercraft and comprised primarily of indirect loans purchased from dealers. These loans consist of relatively small amounts that are spread across many individual borrowers.

Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan.

Commercial, commercial real estate, real estate construction and land development loans are referred to as the Corporation’s commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation’s consumer loan portfolio. A summary of loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,754,873	$	1,354,881	$	1,212,383
Commercial real estate	2,243,513		1,557,648		1,298,365
Real estate construction	101,717		152,745		101,168
Land development	10,595		18,750		10,956
Subtotal	4,110,698		3,084,024		2,622,872
Consumer loan portfolio:
Residential mortgage	1,310,167		1,110,390		970,397
Consumer installment	887,907		829,570		744,781
Home equity	725,971		664,246		560,754
Subtotal	2,924,045		2,604,206		2,275,932
Total loans	$	7,034,743	$	5,688,230	$	4,898,804

26

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Credit Quality Monitoring

The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation’s market areas. The Corporation’s lending markets generally consist of communities across the lower peninsula of Michigan, except for the southeastern portion of Michigan. The Corporation has no foreign loans.

The Corporation, through its subsidiary banks, has a commercial loan portfolio approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Corporation’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. The approval authority of relationship managers is established based on experience levels, with credit decisions greater than $1.0 million requiring group loan authority approval, except for six executive and senior officers who have varying limits exceeding $1.5 million and up to $3.5 million. During the first quarter of 2015, the Corporation increased the upper range for each level of group loan authority by $5.0 million, resulting in group loan authorities as follows. Chemical Bank has a loan committee, consisting of certain executive and senior officers, that meets weekly to consider loans ranging in amounts from $1.0 million to $10.0 million, depending on risk rating and credit action required. A directors’ loan committee of Chemical Bank, consisting of eight independent members of the board of directors of Chemical Bank, the chief executive officer of Chemical Bank and senior credit officer of Chemical Bank, meets bi-weekly to consider loans in amounts over $10.0 million, and certain loans under $10.0 million depending on a loan’s risk rating and credit action required. Loans over $15.0 million require majority approval of the board of directors of Chemical Bank. The approval authorities of relationship managers at The Bank of Holland and The Bank of Northern Michigan are similar to those at Chemical Bank, while approval authority for the loan committees at The Bank of Holland and The Bank of Northern Michigan are lower than those at Chemical Bank. Further, certain loan relationships of The Bank of Holland and The Bank of Northern Michigan, depending on a loan’s risk rating and credit action needed, require approval by the directors' loan committee of Chemical Bank, in addition to approval by the respective board of directors of The Bank of Holland or The Bank of Northern Michigan.

The majority of the Corporation’s consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation’s consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation’s collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred.

Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly.

The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio.

27

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Credit Quality Indicators

Commercial Loan Portfolio

The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower’s financial statements. The loan grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Corporation’s loan grades (or characteristics of the loans within each grade) follows:

Risk Grades 1-5 (Acceptable Credit Quality) — All loans in risk grades 1 through 5 are considered to be acceptable credit risks by the Corporation and are grouped for purposes of allowance for loan loss considerations and financial reporting. The five grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within risk grades 1 through 5 range from Risk Grade 1: Prime Quality (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan-to-value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 5: Acceptable Quality With Care (factors include: acceptable business credit, but with added risk due to specific industry or internal situations).

Risk Grade 6 (Watch) — A business credit that is not acceptable within the Corporation’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short-term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan requires constant monitoring and attention from the Corporation; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects.

Risk Grade 7 (Substandard — Accrual) — A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non-existent; quality financial information is not available; a high level of maintenance is required by the Corporation; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The Corporation still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Corporation will sustain some loss if deficiencies are not corrected.

Risk Grade 8 (Substandard — Nonaccrual) — A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as risk grade 7 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established.

Risk Grade 9 (Substandard — Doubtful) — A business credit that has all the weaknesses inherent in a loan classified as risk grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge-off is recorded when management deems an amount uncollectible; however, the Corporation will establish a valuation allowance for probable losses, if required.

The Corporation considers all loans graded 1 through 5 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans graded 6 and 7 are considered higher-risk credits than loans graded 1 through 5 and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans graded 8 and 9 are considered problematic and require special care. Further, loans graded 6 through 9 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Corporation, which include highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Corporation’s special assets group.

28

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2015, December 31, 2014 and June 30, 2014:

	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
June 30, 2015
Originated Portfolio:
Risk Grades 1-5	$	1,269,091	$	1,273,725	$	94,894	$	2,470	$	2,640,180
Risk Grade 6	32,189		34,677		—		433		67,299
Risk Grade 7	41,316		29,737		1,249		878		73,180
Risk Grade 8	17,260		25,283		247		255		43,045
Risk Grade 9	—		4		—		—		4
Subtotal	1,359,856		1,363,426		96,390		4,036		2,823,708
Acquired Portfolio:
Risk Grades 1-5	347,914		820,400		5,122		5,017		1,178,453
Risk Grade 6	29,412		22,796		—		71		52,279
Risk Grade 7	13,910		30,288		—		119		44,317
Risk Grade 8	3,781		6,603		205		1,352		11,941
Risk Grade 9	—		—		—		—		—
Subtotal	395,017		880,087		5,327		6,559		1,286,990
Total	$	1,754,873	$	2,243,513	$	101,717	$	10,595	$	4,110,698
December 31, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,171,817	$	1,114,529	$	134,668	$	2,952	$	2,423,966
Risk Grade 6	37,800		34,996		1,408		738		74,942
Risk Grade 7	29,863		29,935		2,502		613		62,913
Risk Grade 8	16,417		24,958		162		225		41,762
Risk Grade 9	1		8		—		—		9
Subtotal	1,255,898		1,204,426		138,740		4,528		2,603,592
Acquired Portfolio:
Risk Grades 1-5	76,780		321,018		14,005		11,789		423,592
Risk Grade 6	12,687		8,698		—		583		21,968
Risk Grade 7	4,089		12,478		—		197		16,764
Risk Grade 8	5,427		11,028		—		1,653		18,108
Risk Grade 9	—		—		—		—		—
Subtotal	98,983		353,222		14,005		14,222		480,432
Total	$	1,354,881	$	1,557,648	$	152,745	$	18,750	$	3,084,024
June 30, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,067,000	$	1,063,555	$	85,754	$	2,514	$	2,218,823
Risk Grade 6	15,459		30,053		666		965		47,143
Risk Grade 7	37,291		35,946		1,995		627		75,859
Risk Grade 8	18,560		25,347		160		2,184		46,251
Risk Grade 9	213		14		—		—		227
Subtotal	1,138,523		1,154,915		88,575		6,290		2,388,303
Acquired Portfolio:
Risk Grades 1-5	59,993		132,898		12,593		2,546		208,030
Risk Grade 6	6,769		3,822		—		—		10,591
Risk Grade 7	3,197		6,730		—		143		10,070
Risk Grade 8	3,901		—		—		1,977		5,878
Risk Grade 9	—		—		—		—		—
Subtotal	73,860		143,450		12,593		4,666		234,569
Total	$	1,212,383	$	1,298,365	$	101,168	$	10,956	$	2,622,872

29

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Consumer Loan Portfolio

The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments or classified as a nonperforming TDR are considered to be in a nonperforming status. Nonaccrual TDRs in the consumer loan portfolio are included with nonaccrual loans, while other TDRs in the consumer loan portfolio are considered in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered in a performing status.

The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2015, December 31, 2014 and June 30, 2014:

	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
	(In thousands)
June 30, 2015
Originated Loans:
Performing	$	1,058,696	$	871,543	$	584,520	$	2,514,759
Nonperforming	9,793		393		2,357		12,543
Subtotal	1,068,489		871,936		586,877		2,527,302
Acquired Loans:
Performing	238,698		15,966		138,086		392,750
Nonperforming	2,980		5		1,008		3,993
Subtotal	241,678		15,971		139,094		396,743
Total	$	1,310,167	$	887,907	$	725,971	$	2,924,045
December 31, 2014
Originated Loans:
Performing	$	987,542	$	818,878	$	566,083	$	2,372,503
Nonperforming	10,459		500		3,013		13,972
Subtotal	998,001		819,378		569,096		2,386,475
Acquired Loans:
Performing	111,101		10,174		94,696		215,971
Nonperforming	1,288		18		454		1,760
Subtotal	112,389		10,192		95,150		217,731
Total	$	1,110,390	$	829,570	$	664,246	$	2,604,206
June 30, 2014
Originated Loans:
Performing	$	947,768	$	743,121	$	529,093	$	2,219,982
Nonperforming	12,217		536		3,371		16,124
Subtotal	959,985		743,657		532,464		2,236,106
Acquired Loans:
Performing	10,343		1,124		28,227		39,694
Nonperforming	69		—		63		132
Subtotal	10,412		1,124		28,290		39,826
Total	$	970,397	$	744,781	$	560,754	$	2,275,932

30

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Nonperforming Loans

A summary of nonperforming loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Nonaccrual loans:
Commercial	$	17,260	$	16,418	$	18,773
Commercial real estate	25,287		24,966		25,361
Real estate construction	247		162		160
Land development	255		225		2,184
Residential mortgage	6,004		6,706		6,325
Consumer installment	393		500		536
Home equity	1,769		1,667		2,296
Total nonaccrual loans	51,215		50,644		55,635
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	711		170		15
Commercial real estate	56		—		69
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	424		557		376
Consumer installment	—		—		—
Home equity	588		1,346		1,075
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,779		2,073		1,535
Nonperforming TDRs:
Commercial loan portfolio	14,547		15,271		11,049
Consumer loan portfolio	3,365		3,196		5,516
Total nonperforming TDRs	17,912		18,467		16,565
Total nonperforming loans	$	70,906	$	71,184	$	73,735

The Corporation’s nonaccrual loans at June 30, 2015, December 31, 2014 and June 30, 2014 included $35.7 million, $37.2 million and $43.7 million, respectively, of nonaccrual TDRs.

The Corporation had $2.0 million of residential mortgage loans that were in the process of foreclosure at June 30, 2015, compared to $2.3 million and $3.6 million at  December 31, 2014 and June 30, 2014, respectively.

31

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Impaired Loans

The following schedule presents impaired loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2015
Impaired loans with a valuation allowance:
Commercial	$	4,044	$	4,137	$	718
Commercial real estate	2,789		2,948		603
Residential mortgage	20,970		20,970		260
Subtotal	27,803		28,055		1,581
Impaired loans with no related valuation allowance:
Commercial	32,461		38,160		—
Commercial real estate	56,052		78,490		—
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	8,984		8,984		—
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Subtotal	103,066		132,985		—
Total impaired loans:
Commercial	36,505		42,297		718
Commercial real estate	58,841		81,438		603
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	29,954		29,954		260
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Total	$	130,869	$	161,040	$	1,581
December 31, 2014
Impaired loans with a valuation allowance:
Commercial	$	966	$	1,040	$	293
Commercial real estate	2,587		2,927		710
Residential mortgage	19,681		19,681		335
Subtotal	23,234		23,648		1,338
Impaired loans with no related valuation allowance:
Commercial	38,094		44,557		—
Commercial real estate	60,616		82,693		—
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	7,994		7,994		—
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Subtotal	111,433		141,622		—
Total impaired loans:
Commercial	39,060		45,597		293
Commercial real estate	63,203		85,620		710
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	27,675		27,675		335
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Total	$	134,667	$	165,270	$	1,338

32

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2014
Impaired loans with a valuation allowance:
Commercial	$	2,905	$	3,258	$	563
Commercial real estate	4,369		5,605		777
Residential mortgage	20,353		20,353		379
Subtotal	27,627		29,216		1,719
Impaired loans with no related valuation allowance:
Commercial	39,420		43,463		—
Commercial real estate	46,205		58,997		—
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	6,325		6,325		—
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Subtotal	99,153		119,489		—
Total impaired loans:
Commercial	42,325		46,721		563
Commercial real estate	50,574		64,602		777
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	26,678		26,678		379
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Total	$	126,780	$	148,705	$	1,719

The difference between an impaired loan’s recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management’s assessment that full collection of the loan balance is not likely, and for acquired loans that meet the definition of an impaired loan represents fair value adjustments recognized at the acquisition date attributable to expected credit losses and the discounting of expected cash flows at market interest rates. The difference between the recorded investment and the unpaid principal balance of $30.2 million, $30.6 million and $21.9 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, includes confirmed losses (partial charge-offs) of $15.2 million, $15.4 million and $18.2 million, respectively, and fair value discount adjustments of $15.0 million, $15.2 million and $3.7 million, respectively.

Impaired loans included $15.9 million, $19.9 million and $10.4 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, of acquired loans that were not performing in accordance with original contractual terms. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. Impaired loans also included $45.8 million, $45.7 million and $44.1 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, of performing TDRs.

33

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following schedule presents information related to impaired loans for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	36,735	$	263	$	37,655	$	552
Commercial real estate	60,393		458		60,317		983
Real estate construction	390		2		515		2
Land development	1,900		34		1,888		61
Residential mortgage	29,432		380		28,392		711
Consumer installment	426		1		463		1
Home equity	2,529		14		2,440		22
Total	$	131,805	$	1,152	$	131,670	$	2,332

	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	42,629	$	347	$	42,118	$	680
Commercial real estate	51,260		366		52,290		727
Real estate construction	163		—		165		—
Land development	4,312		34		4,478		71
Residential mortgage	26,737		328		26,758		631
Consumer installment	634		—		704		—
Home equity	2,221		—		2,194		—
Total	$	127,956	$	1,075	$	128,707	$	2,109

The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
June 30, 2015
Originated Portfolio:
Commercial	$	4,055	$	2,317	$	711	$	17,260	$	24,343	$	1,335,513	$	1,359,856
Commercial real estate	2,754		1,117		56		25,287		29,214		1,334,212		1,363,426
Real estate construction	413		—		—		247		660		95,730		96,390
Land development	—		—		—		255		255		3,781		4,036
Residential mortgage	1,536		—		424		6,004		7,964		1,060,525		1,068,489
Consumer installment	2,526		302		—		393		3,221		868,715		871,936
Home equity	2,334		204		588		1,769		4,895		581,982		586,877
Total	$	13,618	$	3,940	$	1,779	$	51,215	$	70,552	$	5,280,458	$	5,351,010
Acquired Portfolio:
Commercial	$	690	$	—	$	3,781	$	—	$	4,471	$	390,546	$	395,017
Commercial real estate	969		291		6,603		—		7,863		872,224		880,087
Real estate construction	—		—		205		—		205		5,122		5,327
Land development	—		—		1,352		—		1,352		5,207		6,559
Residential mortgage	1,077		138		2,980		—		4,195		237,483		241,678
Consumer installment	—		56		5		—		61		15,910		15,971
Home equity	1,153		210		1,008		—		2,371		136,723		139,094
Total	$	3,889	$	695	$	15,934	$	—	$	20,518	$	1,663,215	$	1,683,733

34

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
December 31, 2014
Originated Portfolio:
Commercial	$	4,033	$	743	$	170	$	16,418	$	21,364	$	1,234,534	$	1,255,898
Commercial real estate	7,515		1,383		—		24,966		33,864		1,170,562		1,204,426
Real estate construction	262		—		—		162		424		138,316		138,740
Land development	—		—		—		225		225		4,303		4,528
Residential mortgage	2,126		54		557		6,706		9,443		988,558		998,001
Consumer installment	3,620		512		—		500		4,632		814,746		819,378
Home equity	3,039		660		1,346		1,667		6,712		562,384		569,096
Total	$	20,595	$	3,352	$	2,073	$	50,644	$	76,664	$	4,913,403	$	4,990,067
Acquired Portfolio:
Commercial	$	133	$	—	$	5,427	$	—	$	5,560	$	93,423	$	98,983
Commercial real estate	2,014		352		11,052		—		13,418		339,804		353,222
Real estate construction	—		—		—		—		—		14,005		14,005
Land development	—		—		1,653		—		1,653		12,569		14,222
Residential mortgage	156		—		18		—		174		112,215		112,389
Consumer installment	55		3		454		—		512		9,680		10,192
Home equity	636		106		1,288		—		2,030		93,120		95,150
Total	$	2,994	$	461	$	19,892	$	—	$	23,347	$	674,816	$	698,163
June 30, 2014
Originated Portfolio:
Commercial	$	4,149	$	1,901	$	15	$	18,773	$	24,838	$	1,113,685	$	1,138,523
Commercial real estate	5,933		233		69		25,361		31,596		1,123,319		1,154,915
Real estate construction	—		—		—		160		160		88,415		88,575
Land development	—		—		—		2,184		2,184		4,106		6,290
Residential mortgage	2,515		—		376		6,325		9,216		950,769		959,985
Consumer installment	2,513		313		—		536		3,362		740,295		743,657
Home equity	2,002		985		1,075		2,296		6,358		526,106		532,464
Total	$	17,112	$	3,432	$	1,535	$	55,635	$	77,714	$	4,546,695	$	4,624,409
Acquired Portfolio:
Commercial	$	—	$	—	$	6,744	$	—	$	6,744	$	67,116	$	73,860
Commercial real estate	—		—		1,594		—		1,594		141,856		143,450
Real estate construction	—		—		—		—		—		12,593		12,593
Land development	—		—		1,977		—		1,977		2,689		4,666
Residential mortgage	—		—		69		—		69		10,343		10,412
Consumer installment	20		—		—		—		20		1,104		1,124
Home equity	325		49		63		—		437		27,853		28,290
Total	$	345	$	49	$	10,447	$	—	$	10,841	$	263,554	$	274,395

35

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Loans Modified Under Troubled Debt Restructurings (TDRs)

The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2015, December 31, 2014 and June 30, 2014:

	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
	(In thousands)
June 30, 2015
Commercial loan portfolio	$	28,203	$	14,547	$	32,001	$	74,751
Consumer loan portfolio	17,605		3,365		3,707		24,677
Total	$	45,808	$	17,912	$	35,708	$	99,428
December 31, 2014
Commercial loan portfolio	$	29,179	$	15,271	$	32,597	$	77,047
Consumer loan portfolio	16,485		3,196		4,594		24,275
Total	$	45,664	$	18,467	$	37,191	$	101,322
June 30, 2014
Commercial loan portfolio	$	29,296	$	11,049	$	40,351	$	80,696
Consumer loan portfolio	14,837		5,516		3,334		23,687
Total	$	44,133	$	16,565	$	43,685	$	104,383

The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015					Six Months Ended June 30, 2015
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	13	$	2,332	$	2,332	18	$	4,264	$	4,264
Commercial real estate	4	527		527		9	3,061		3,061
Land development	1	305		305		1	305		305
Subtotal – commercial loan portfolio	18	3,164		3,164		28	7,630		7,630
Consumer loan portfolio	29	1,633		1,631		39	1,969		1,967
Total	47	$	4,797	$	4,795	67	$	9,599	$	9,597

	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	15	$	3,575	$	3,575	27	$	11,931	$	11,931
Commercial real estate	12	3,134		3,134		21	5,924		5,924
Land development	—	—		—		1	72		72
Subtotal – commercial loan portfolio	27	6,709		6,709		49	17,927		17,927
Consumer loan portfolio	63	1,649		1,648		93	2,636		2,626
Total	90	$	8,358	$	8,357	142	$	20,563	$	20,553

36

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate.

The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2015 and 2014, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	—	$	—	—	$	—
Commercial real estate	1	183		4	942
Subtotal – commercial loan portfolio	1	183		4	942
Consumer loan portfolio	—	—		1	33
Total	1	$	183	5	$	975
	Three Months Ended June 30, 2014			Six Months Ended June 30, 2014
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	5	$	771	6	$	875
Commercial real estate	3	603		5	2,273
Subtotal – commercial loan portfolio	8	1,374		11	3,148
Consumer loan portfolio	3	80		3	80
Total	11	$	1,454	14	$	3,228

37

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Allowance for Loan Losses

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2015 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2015 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2015:
Beginning balance	$	46,819		$	24,579		$	3,858	$	75,256
Provision for loan losses	(626		)	(109		)	2,235		1,500
Charge-offs	(915		)	(1,809		)	—		(2,724		)
Recoveries	249			660			—		909
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Changes in allowance for loan losses for the six months ended June 30, 2015:
Beginning balance	$	44,156		$	28,803		$	2,724	$	75,683
Provision for loan losses	2,967			(3,336		)	3,369		3,000
Charge-offs	(2,419		)	(3,448		)	—		(5,867		)
Recoveries	823			1,302			—		2,125
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Allowance for loan losses balance at June 30, 2015 attributable to:
Loans individually evaluated for impairment	$	1,321		$	260		$	—	$	1,581
Loans collectively evaluated for impairment	44,206			23,061			6,093		73,360
Loans acquired with deteriorated credit quality	—			—			—		—
Total	$	45,527		$	23,321		$	6,093	$	74,941
Recorded investment (loan balance) at June 30, 2015:
Loans individually evaluated for impairment	$	85,799		$	20,970		$	—	$	106,769
Loans collectively evaluated for impairment	2,737,909			2,506,332			—		5,244,241
Loans acquired with deteriorated credit quality	1,286,990			396,743			—		1,683,733
Total	$	4,110,698		$	2,924,045		$	—	$	7,034,743

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method.

	Commercial Loan Portfolio		Consumer Loan Portfolio		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment	$	1,003	$	335	$	—	$	1,338
Loans collectively evaluated for impairment	43,153		27,968		2,724		73,845
Loans acquired with deteriorated credit quality	—		500		—		500
Total	$	44,156	$	28,803	$	2,724	$	75,683
Recorded investment (loan balance) at December 31, 2014:
Loans individually evaluated for impairment	$	86,221	$	19,681	$	—	$	105,902
Loans collectively evaluated for impairment	2,517,371		2,366,794		—		4,884,165
Loans acquired with deteriorated credit quality	480,432		217,731		—		698,163
Total	$	3,084,024	$	2,604,206	$	—	$	5,688,230

38

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated			Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2014:
Beginning balance	$	45,010		$	29,233		$	4,230		$	78,473
Provision for loan losses	439			1,287			(226		)	1,500
Charge-offs	(1,814		)	(1,561		)	—			(3,375		)
Recoveries	589			606			—			1,195
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Changes in allowance for loan losses for the six months ended June 30, 2014:
Beginning balance	$	44,482		$	30,145		$	4,445		$	79,072
Provision for loan losses	1,399			2,142			(441		)	3,100
Charge-offs	(3,023		)	(3,824		)	—			(6,847		)
Recoveries	1,366			1,102			—			2,468
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans individually evaluated for impairment	$	1,340		$	379		$	—		$	1,719
Loans collectively evaluated for impairment	42,884			28,686			4,004			75,574
Loans acquired with deteriorated credit quality	—			500			—			500
Total	$	44,224		$	29,565		$	4,004		$	77,793
Recorded investment (loan balance) at June 30, 2014:
Loans individually evaluated for impairment	$	86,823		$	20,353		$	—		$	107,176
Loans collectively evaluated for impairment	2,301,480			2,215,753			—			4,517,233
Loans acquired with deteriorated credit quality	234,569			39,826			—			274,395
Total	$	2,622,872		$	2,275,932		$	—		$	4,898,804

The allowance attributable to acquired loans of $0.5 million at December 31, 2014 and June 30, 2014 was primarily attributable to two consumer loan pools in the acquired loan portfolio that had a decline in expected cash flows. There were no material changes in expected cash flows for the remaining acquired loan pools at June 30, 2015, December 31, 2014 or June 30, 2014.

Note 5: Intangible Assets

The Corporation has the following types of intangible assets: goodwill, core deposit intangible assets, non-compete intangible assets and mortgage servicing rights (MSRs). Goodwill, core deposit intangible assets, and non-compete intangible assets arose as a result of business combinations or other acquisitions. MSRs arose as a result of selling residential mortgage loans in the secondary market while retaining the right to service these loans and receive servicing income over the life of the loan and from acquisitions of other banks that had MSRs. The majority of the MSRs recorded at June 30, 2015 were acquired as a result of the Northwestern and Monarch acquisitions. Amortization is recorded on the core deposit intangible assets, non-compete intangible assets and MSRs. Goodwill recorded is primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and other acquisitions.

During the second quarter of 2015, the Corporation acquired Lake Michigan and Monarch, which resulted in the recognition of $100.0 million and $5.4 million in goodwill, respectively. No amount of goodwill recorded in conjunction with these acquisitions is deductible for tax purposes. Goodwill is not amortized but is evaluated at least annually for impairment. The Corporation’s most recent annual goodwill impairment test performed as of October 31, 2014 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through June 30, 2015 and that the Corporation's goodwill was not impaired at June 30, 2015.

39

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following table shows the net carrying value of the Corporation’s intangible assets:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Goodwill	$	285,512	$	180,128	$	120,164
Other intangible assets:
Core deposit intangible assets	$	28,353	$	20,863	$	9,110
Non-compete intangible assets	541		—		—
Mortgage servicing rights	12,307		12,217		3,344
Total other intangible assets	$	41,201	$	33,080	$	12,454

The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Gross original amount	$	39,355	$	31,550	$	18,659
Accumulated amortization	11,002		10,687		9,549
Carrying amount	$	28,353	$	20,863	$	9,110
Amortization expense for the three months ended June 30	$	952			$	446
Amortization expense for the six months ended June 30	$	1,743			$	891

In conjunction with the acquisition of Lake Michigan on May 31, 2015 and Monarch on April 1, 2015, the Corporation recorded $7.3 million and $1.9 million, respectively, in core deposit intangible assets. These core deposit intangible assets are being amortized over a period of 10 years on an accelerated basis. There were no additions of core deposit intangible assets during the three and six months ended June 30, 2014.

The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2015 is as follows: 2015 — $2.4 million; 2016 — $4.3 million; 2017 — $3.7 million; 2018 — $3.5 million; 2019 — $3.3 million; 2020 and thereafter — $11.2 million.

In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation recorded $0.6 million in non-compete intangible assets with an amortization period of one year. There were no additions of non-compete intangible assets during the three and six months ended June 30, 2014.

The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Net carrying value of MSRs	$	12,307	$	12,217	$	3,344
Fair value of MSRs	$	16,602	$	14,979	$	6,433
Loans serviced for others that have servicing rights capitalized	$	2,193,067	$	2,093,140	$	871,158

40

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following table shows the activity for capitalized MSRs:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Balance at beginning of period	$	11,583		$	3,316		$	12,217		$	3,423
Acquired in Monarch acquisition	1,284			—			1,284			—
Additions	415			278			815			421
Amortization	(1,175		)	(250		)	(2,209		)	(500		)
Change in valuation allowance	200			—			200			—
Balance at end of period	$	12,307		$	3,344		$	12,307		$	3,344

MSRs are stratified into servicing assets originated by the Corporation and those acquired in acquisitions of other institutions and further stratified into relatively homogeneous pools based on products with similar characteristics. There was a valuation allowance of $0.2 million as of December 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. There was no impairment valuation allowance recorded on the Corporation's MSRs at June 30, 2015 and June 30, 2014.

Note 6: Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows:

	June 30, 2015			December 31, 2014			June 30, 2014
	(In thousands)
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014	$	(274	)	$	(210	)	$	800
Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014	(30,830		)	(32,243		)	(18,788		)
Accumulated other comprehensive loss	$	(31,104	)	$	(32,453	)	$	(17,988	)

Note 7: Borrowings

Short-term Borrowings

A summary of the Corporation's short-term borrowings, which generally have an original term to maturity of 30 days or less, follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Short-term borrowings:
Securities sold under agreements to repurchase with customers	$	305,291	$	304,467	$	293,422
Short-term FHLB advances	205,000		60,000		—
Federal funds purchased	22,000		25,000		12,000
Total short-term borrowings	$	532,291	$	389,467	$	305,422

41

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Other Borrowings

The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch. A summary of the Corporation's other borrowings follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Other borrowings:
Long-term FHLB advances	$	81,469	$	—	$	—
Securities sold under agreements to repurchase	23,649		—		—
Line of credit	25,000		—		—
Subordinated debentures	18,372		—		—
Total other borrowings	$	148,490	$	—	$	—

In conjunction with the Lake Michigan and Monarch acquisitions, the Corporation acquired long-term FHLB advances totaling $81.5 million. These advances have a weighted average interest rate of 1.33% at June 30, 2015. The Corporation's FHLB advances, including both short-term and long-term, require monthly interest payments and are collateralized by eligible loans totaling $1.24 billion as of June 30, 2015. The scheduled reductions of long-term FHLB advances as of June 30, 2015 were as follows: 2015 - $0.1 million; 2016 - $7.1 million; 2017 - $47.1 million; 2018 - $17.1 million; 2019; - $0.1 million; and 2020 - $10.0 million.

In conjunction with the Lake Michigan acquisition, the Company acquired securities sold under agreements to repurchase with an unaffiliated financial institution of $23.7 million as of acquisition date. These agreements are secured by available for-sale-securities. The scheduled reductions of securities sold under agreements to repurchase as of June 30, 2015 were as follows: 2015 - $3.2 million; 2016 - $8.3 million; and 2017 - $12.1 million.

The Corporation entered into a $25 million secured non-revolving line-of-credit in May 2015 with an unaffiliated third-party financial institution. The Corporation drew on the entire amount of the line-of-credit in order to partially fund the cash portion of the purchase price consideration for the Lake Michigan transaction. This line-of-credit bears a variable rate of interest which is based on the one-, two- or three-month LIBOR, as periodically selected by the Corporation, plus a fixed stated rate (effective interest rate of 2.134% at June 30, 2015), and matures in May 2016. The line-of-credit agreement contains certain restrictive covenants. The Corporation was in compliance with all of the covenants at June 30, 2015.

In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation acquired Lake Michigan Financial Capital Trust I (LMFCTI), Lake Michigan Financial Capital Trust II (LMFCTII), and Lake Michigan Financial Capital Trust III (LMFCTIII). LMFCTIII, which held the $10.0 million trust preferred security due to the Corporation, was repaid and settled as of the Lake Michigan acquisition date, and the entity was subsequently dissolved. All of the common securities of the remaining two special purpose trusts are owned by the Corporation. The trusts exist solely to issue capital securities in the form of cumulative preferred securities (trust preferred securities) with a par value of $1,000 per security. The proceeds from the sale of the trust preferred securities were used by each trust to purchase an equivalent amount of subordinated debentures from Lake Michigan. Lake Michigan guaranteed the payment of distributions on the trust preferred securities issued by LMFCTI and LMFCTII. At the acquisition date, the Corporation assumed responsibility of the guarantees.

LMFCTI issued $10.3 million in preferred securities in October 2002. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 3.45% (effective interest rate of 3.73% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is October 2032. LMFCTII issued $8.2 million in preferred securities in May 2004. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 2.7% (effective interest rate of 2.98% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is May 2034. The Corporation may, at any time, redeem the LMFCTI or LMFCTII subordinated debentures at par.

42

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Note 8: Regulatory Capital

Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank, The Bank of Holland and The Bank of Northern Michigan to the Corporation. As of June 30, 2015, substantially all of the assets of Chemical Bank, The Bank of Holland and The Bank of Northern Michigan were restricted from transfer to the Corporation in the form of loans or advances. Dividends from Chemical Bank are the principal source of funds for the Corporation. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank, The Bank of Holland, and The Bank of Northern Michigan prior to making any cash dividend decisions.

The Corporation, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan must meet specific capital guidelines that involve quantitative measures of assets and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, capital amounts and classifications are subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require minimum ratios of Tier 1 capital to average assets (Leverage Ratio) and common equity Tier 1, Tier 1 and Total capital to risk-weighted assets. These capital guidelines assign risk weights to on- and off-balance sheet items in arriving at total risk-weighted assets. Minimum capital levels are based upon the perceived risk of various asset categories and certain off-balance sheet instruments. Risk weighted assets of the Corporation totaled $6.99 billion, $5.70 billion and $4.90 billion at June 30, 2015, December 31, 2014 and June 30, 2014, respectively.

In July 2013, the Federal Reserve Board and FDIC approved final rules implementing the Basel Committee on Banking Supervision's (BCBS) capital guidelines for U.S. banks. Beginning January 1, 2015,the final rules include a new minimum common equity Tier 1 capital to risk-weighted assets (CET) ratio of 4.5%, in addition to raising the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requiring a minimum leverage ratio of 4.0%. The final rules also establish a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four-year period beginning January 1, 2016.

At June 30, 2015, December 31, 2014 and June 30, 2014, Chemical Bank’s capital ratios exceeded the quantitative capital ratios required for an institution to be considered “well-capitalized.” At June 30, 2015, The Bank of Northern Michigan's capital ratios exceeded the quantitative capital ratios required for an institution to be considered "well-capitalized." At June 30, 2015, The Bank of Holland was considered "adequately-capitalized" due to the impact of push down accounting of the purchase accounting adjustments related to the Lake Michigan acquisition. Significant factors that may affect capital adequacy include, but are not limited to, a disproportionate growth in assets versus capital and a change in mix or credit quality of assets.

43

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy:

	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Well Capitalized Under Prompt Corrective Action Regulations
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(Dollars in thousands)
June 30, 2015
Total Capital to Risk-Weighted Assets:
Corporation	$	816,595	11.7	%	$	559,273	8.0	%	N/A		N/A
Chemical Bank	713,999		12.1		471,422		8.0		$	589,277	10.0	%
The Bank of Holland	72,506		9.5		61,028		8.0		76,285		10.0
The Bank of Northern Michigan	32,779		10.1		25,878		8.0		32,347		10.0
Tier 1 Capital to Risk-Weighted Assets:
Corporation	741,654		10.6		419,455		6.0		N/A		N/A
Chemical Bank	640,324		10.9		353,566		6.0		471,422		8.0
The Bank of Holland	72,506		9.5		45,771		6.0		61,028		8.0
The Bank of Northern Michigan	32,779		10.1		19,408		6.0		25,878		8.0
Common Equity Tier 1 Capital to Risk-Weighted Assets:
Corporation	723,654		10.4		314,591		4.5		N/A		N/A
Chemical Bank	640,324		10.9		265,175		4.5		383,030		6.5
The Bank of Holland	72,506		9.5		34,328		4.5		49,585		6.5
The Bank of Northern Michigan	32,779		10.1		14,556		4.5		21,025		6.5
Leverage Ratio:
Corporation	741,654		9.4		314,344		4.0		N/A		N/A
Chemical Bank	640,324		8.5		300,703		4.0		375,878		5.0
The Bank of Holland	72,506		9.4		30,710		4.0		38,388		5.0
The Bank of Northern Michigan	32,779		9.1		14,421		4.0		18,026		5.0
December 31, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	705,130	12.4	%	$	456,302	8.0	%	N/A		N/A
Chemical Bank	654,031		11.5		455,633		8.0		$	569,541	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	633,779		11.1		228,151		4.0		N/A		N/A
Chemical Bank	582,783		10.2		227,816		4.0		341,725		6.0
Leverage Ratio:
Corporation	633,779		9.3		273,226		4.0		N/A		N/A
Chemical Bank	582,783		8.5		273,048		4.0		341,310		5.0
June 30, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	748,332	15.3	%	$	391,911	8.0	%	N/A		N/A
Chemical Bank	601,561		12.3		391,305		8.0		$	489,131	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	686,892		14.0		195,955		4.0		N/A		N/A
Chemical Bank	540,214		11.0		195,653		4.0		293,479		6.0
Leverage Ratio:
Corporation	686,892		11.2		244,757		4.0		N/A		N/A
Chemical Bank	540,214		8.8		244,604		4.0		305,755		5.0

44

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Note 9: Fair Value Measurements

Fair value, as defined by GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for market activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Investment securities — available-for-sale and loans held-for-sale are recorded at fair value on a recurring basis. Additionally, the Corporation may be required to record other assets, such as impaired loans, goodwill, other intangible assets, other real estate and repossessed assets, at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets.

The Corporation determines the fair value of its financial instruments based on a three-level hierarchy established by GAAP. The classification and disclosure of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. The three levels of inputs that may be used to measure fair value within the GAAP hierarchy are as follows:

Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 valuations for the Corporation would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Valuations are obtained from a third-party pricing service for these investment securities.

Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government sponsored agency securities, including securities issued by the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds, preferred stock and certain trust preferred securities. Valuations are obtained from a third-party pricing service for these investment securities.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, yield curves and similar techniques. The determination of fair value requires management judgment or estimation and generally is corroborated by external data, which includes third-party pricing services. Level 3 valuations for the Corporation include securities issued by certain state and political subdivisions, trust preferred investment securities, impaired loans, goodwill, core deposit intangible assets, non-compete intangible assets, MSRs and other real estate and repossessed assets.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Corporation’s financial assets and financial liabilities carried at fair value and all financial instruments disclosed at fair value. In general, fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based upon third-party pricing services when available. Fair value may also be based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be required to record financial instruments at fair value. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the fair value amounts may change significantly after the date of the statement of financial position from the amounts reported in the consolidated financial statements and related notes.

45

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Investment securities — available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events.

The Corporation elected the fair value option for all residential mortgage loans held-for-sale originated on or after July 1, 2012. Accordingly, loans held-for-sale are recorded at fair value on a recurring basis. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations.

Disclosure of Recurring Basis Fair Value Measurements

For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,294	$	—	$	—	$	8,294
Government sponsored agencies	—		227,907		—		227,907
State and political subdivisions	—		26,965		—		26,965
Residential mortgage-backed securities	—		212,669		—		212,669
Collateralized mortgage obligations	—		167,032		—		167,032
Corporate bonds	—		39,678		—		39,678
Preferred stock and trust preferred securities	—		3,161		—		3,161
Total investment securities – available-for-sale	8,294		677,412		—		685,706
Loans held-for-sale	—		7,798		—		7,798
Total assets measured at fair value on a recurring basis	$	8,294	$	685,210	$	—	$	693,504
December 31, 2014
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,259	$	—	$	—	$	8,259
Government sponsored agencies	—		263,503		—		263,503
State and political subdivisions	—		46,227		—		46,227
Residential mortgage-backed securities	—		239,807		—		239,807
Collateralized mortgage obligations	—		144,383		—		144,383
Corporate bonds	—		45,095		—		45,095
Preferred stock	—		1,590		—		1,590
Total investment securities – available-for-sale	8,259		740,605		—		748,864
Loans held-for-sale	—		9,128		—		9,128
Total assets measured at fair value on a recurring basis	$	8,259	$	749,733	$	—	$	757,992
June 30, 2014
Investment securities – available-for-sale:
Government sponsored agencies	$	—	$	88,708	$	—	$	88,708
State and political subdivisions	—		41,608		—		41,608
Residential mortgage-backed securities	—		265,368		—		265,368
Collateralized mortgage obligations	—		153,283		—		153,283
Corporate bonds	—		65,352		—		65,352
Preferred stock	—		1,656		—		1,656
Total investment securities – available-for-sale	—		615,975		—		615,975
Loans held-for-sale	—		6,329		—		6,329
Total assets measured at fair value on a recurring basis	$	—	$	622,304	$	—	$	622,304

There were no liabilities recorded at fair value on a recurring basis at June 30, 2015, December 31, 2014 or June 30, 2014.

46

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The Corporation does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allocation of the allowance (valuation allowance) may be established or a portion of the loan is charged off. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including the loan’s observable market price, the fair value of the collateral or the present value of the expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring a valuation allowance represent loans for which the fair value of the expected repayments or collateral exceed the remaining carrying amount of such loans. Impaired loans where a valuation allowance is established or a portion of the loan is charged off based on the fair value of collateral are subject to nonrecurring fair value measurement and require classification in the fair value hierarchy. The Corporation records impaired loans as Level 3 valuations as there is generally no observable market price or independent appraised value, or management determines the fair value of the collateral is further impaired below the appraised value. When management determines the fair value of the collateral is further impaired below appraised value, discount factors ranging between 70% and 80% of the appraised value are used depending on the nature of the collateral and the age of the most recent appraisal.

Goodwill is subject to impairment testing on an annual basis. The assessment of goodwill for impairment requires a significant degree of judgment. In the event the assessment indicates that it is more-likely-than-not that the fair value is less than the carrying value, the asset is considered impaired and recorded at fair value. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. At June 30, 2015, December 31, 2014 and June 30, 2014, no goodwill was impaired, and therefore, goodwill was not recorded at fair value on a nonrecurring basis.

Other intangible assets consist of core deposit intangible assets, non-compete intangible assets, and MSRs. These items are recorded at fair value when initially recorded. Subsequently, core deposit intangible assets and non-compete intangible assets are amortized primarily on an accelerated basis over periods ranging from ten to fifteen years and are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount exceeds the fair value of the asset. If core deposit intangible asset or non-compete intangible asset impairment is identified, the Corporation classifies impaired core deposit intangible assets and impaired non-compete intangible assets subject to nonrecurring fair value measurements as Level 3 valuations. At June 30, 2015, December 31, 2014 and June 30, 2014, there was no impairment identified for core deposit intangible assets or non-compete intangible assets. The fair value of MSRs is initially estimated using a model that calculates the net present value of estimated future cash flows using various assumptions, including prepayment speeds, the discount rate and servicing costs. If the valuation model reflects a value less than the carrying value, MSRs are adjusted to fair value, as determined by the model, through a valuation allowance. The Corporation classifies MSRs subject to nonrecurring fair value measurements as Level 3 valuations. At December 31, 2014, the Corporation recognized a valuation allowance of $0.2 million related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. At June 30, 2015 and June 30, 2014, there was no impairment identified for MSRs and, therefore, no other intangible assets were recorded at fair value on a nonrecurring basis at those dates.

The carrying amounts for other real estate (ORE) and repossessed assets (RA) are reported in the consolidated statements of financial position under “Interest receivable and other assets.” ORE and RA include real estate and other types of assets repossessed by the Corporation. ORE and RA are recorded at the lower of cost or fair value upon the transfer of a loan to ORE or RA and, subsequently, ORE and RA continue to be measured and carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the property or management’s estimation of the value of the property. The Corporation records ORE and RA as Level 3 valuations as management generally determines that the fair value of the property is impaired below the appraised value. When management determines the fair value of the property is further impaired below appraised value, discount factors ranging between 70% and 75% of the appraised value are used depending on the nature of the property and the age of the most recent appraisal.

47

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Disclosure of Nonrecurring Basis Fair Value Measurements

For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Impaired originated loans	$	—	$	—	$	24,517	$	24,517
Other real estate/repossessed assets	—		—		14,197		14,197
Total	$	—	$	—	$	38,714	$	38,714
December 31, 2014
Impaired originated loans	$	—	$	—	$	21,323	$	21,323
Other real estate/repossessed assets	—		—		14,205		14,205
Mortgage servicing rights	—		—		8,691		8,691
Total	$	—	$	—	$	44,219	$	44,219
June 30, 2014
Impaired originated loans	$	—	$	—	$	29,789	$	29,789
Other real estate/repossessed assets	—		—		10,392		10,392
Total	$	—	$	—	$	40,181	$	40,181

There were no liabilities recorded at fair value on a nonrecurring basis at June 30, 2015, December 31, 2014 and June 30, 2014.

Disclosures about Fair Value of Financial Instruments

GAAP requires disclosures about the estimated fair value of the Corporation's financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. However, the method of estimating fair value for certain financial instruments, such as loans, that are not required to be measured on a recurring or nonrecurring basis, as prescribed by ASC 820, Fair Value Measurements and Disclosures, does not incorporate the exit-price concept of fair value. The Corporation utilized the fair value hierarchy in computing the fair values of its financial instruments. In cases where quoted market prices were not available, the Corporation employed present value methods using unobservable inputs requiring management's judgment to estimate the fair values of its financial instruments, which are considered Level 3 valuations. These Level 3 valuations are affected by the assumptions made and, accordingly, do not necessarily indicate amounts that could be realized in a current market exchange. It is also the Corporation's general practice and intent to hold the majority of its financial instruments until maturity and, therefore, the Corporation does not expect to realize the estimated amounts disclosed.

The methodologies for estimating the fair value of financial assets and financial liabilities on a recurring or nonrecurring basis are discussed above. At June 30, 2015, December 31, 2014 and June 30, 2014, the estimated fair values of cash and cash equivalents, interest receivable and interest payable approximated their carrying values at those dates. The methodologies for other financial assets and financial liabilities follow.

Fair value measurement for investment securities — held-to-maturity is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques that include market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Fair value measurements using Level 2 valuations of investment securities — held-to-maturity include the majority of the Corporation's investment securities issued by state and political subdivisions. Level 3 valuations include certain securities issued by state and political subdivisions and trust preferred investment securities.

48

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Fair value measurements of nonmarketable equity securities, which consisted of Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, are based on their redeemable value, which is cost. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. It is not practicable to determine the fair value of these securities within the fair value hierarchy due to the restrictions placed on their transferability.

Loans held-for-sale are carried at fair value, as the Corporation elected the fair value option on these loans. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations.

The fair value of variable interest rate loans that reprice regularly with changes in market interest rates are based on carrying values. The fair values for fixed interest rate loans are estimated using discounted cash flow analyses, using the Corporation’s interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting fair value amounts are adjusted to estimate the impact of changes in the credit quality of borrowers after the loans were originated. The fair value measurements for loans are Level 3 valuations.

The fair values of deposit accounts without defined maturities, such as interest- and noninterest-bearing checking, savings and money market accounts, are equal to the amounts payable on demand. Fair value measurements for fixed-interest rate time deposits with defined maturities are based on the discounted value of contractual cash flows, using the Corporation’s interest rates currently being offered for deposits of similar maturities, and are Level 3 valuations. The fair values for variable-interest rate time deposits with defined maturities approximate their carrying amounts.

Short-term borrowings consist of securities sold under agreements to repurchase with customers, short-term FHLB advances and federal funds purchased. Fair value measurements for short-term borrowings are based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms and are Level 2 valuations. Other borrowings consist of long-term FHLB advances, securities sold under agreements to repurchase with an unaffiliated financial institution, a non-revolving line-of-credit and subordinated debentures. Fair value measurements for other borrowings are based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms. Long-term FHLB advances and the non-revolving line-of-credit included in other borrowings are Level 2 valuations, while securities sold under agreements to repurchase with an unaffiliated financial institution and subordinated debentures are Level 3 valuations.

The Corporation’s unused commitments to extend credit, standby letters of credit and loan commitments have no carrying amount and have been estimated to have no realizable fair value. Historically, a majority of the unused commitments to extend credit have not been drawn upon and, generally, the Corporation does not receive fees in connection with these commitments other than standby letter of credit fees, which are not significant.

Fair value measurements have not been made for items that are not defined by GAAP as financial instruments, including such items as the value of the Corporation’s Wealth Management department and the value of the Corporation’s core deposit base. The Corporation believes it is impractical to estimate a representative fair value for these types of assets, even though management believes they add significant value to the Corporation.

49

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows:

	Level in Fair Value Measurement Hierarchy	June 30, 2015				December 31, 2014				June 30, 2014
		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(In thousands)
Assets:
Cash and cash equivalents	Level 1	$	215,034	$	215,034	$	183,020	$	183,020	$	140,294	$	140,294
Investment securities:
Available-for-sale	Level 1	8,294		8,294		8,259		8,259		—		—
Available-for-sale	Level 2	677,412		677,412		740,605		740,605		615,975		615,975
Held-to-maturity	Level 2	469,337		466,278		305,913		308,650		297,630		297,186
Held-to-maturity	Level 3	500		300		10,500		7,090		10,500		6,775
Nonmarketable equity securities	NA	36,142		36,142		27,369		27,369		25,572		25,572
Loans held-for-sale	Level 2	7,798		7,798		9,128		9,128		6,329		6,329
Net loans	Level 3	6,959,802		6,969,655		5,612,547		5,623,454		4,821,011		4,826,672
Interest receivable	Level 2	21,668		21,668		17,492		17,492		15,827		15,827
Liabilities:
Deposits without defined maturities	Level 2	$	5,547,764	$	5,547,764	$	4,741,024	$	4,741,024	$	3,814,013	$	3,814,013
Time deposits	Level 3	1,745,215		1,745,215		1,337,947		1,340,015		1,278,900		1,285,992
Interest payable	Level 2	1,557		1,557		755		755		735		735
Short-term borrowings	Level 2	532,291		532,291		389,467		389,467		305,422		305,422
Other borrowings	Level 2	106,469		106,469		—		—		—		—
Other borrowings	Level 3	42,021		42,021		—		—		—		—

Note 10: Earnings Per Common Share

Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents.

Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a net loss is recorded, the assumed exercise of stock options, restricted stock units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the net loss per common share and thus are excluded in the diluted earnings per common share calculation.

50

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Numerator for both basic and diluted earnings per common share, net income	$	19,024	$	16,236	$	36,859	$	30,049
Denominator for basic earnings per common share, weighted average common shares outstanding	35,162		30,068		33,992		29,947
Weighted average common stock equivalents	235		211		235		212
Denominator for diluted earnings per common share	35,397		30,279		34,227		30,159
Basic earnings per common share	$	0.54	$	0.54	$	1.08	$	1.00
Diluted earnings per common share	0.54		0.54		1.08		1.00

The average number of exercisable employee stock option awards outstanding that were “out-of-the-money,” whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled 80,700 and 249,150 for the three months ended June 30, 2015 and 2014, respectively, and 100,875 and 252,529 for six-month period ended June 30, 2015 and 2014, respectively.

Note 11: Share-Based Compensation

The Corporation maintains share-based compensation plans under which it periodically grants share-based awards for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three-month periods ended June 30, 2015 and 2014, share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $0.8 million and $0.6 million, respectively. During the six-month periods endedJune 30, 2015 and 2014, share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $1.5 million and $1.2 million, respectively.

During the six-month period ended June 30, 2015, the Corporation granted options to purchase 244,165 shares of common stock and 79,202 restricted stock units to certain officers. On April 20, 2015, the shareholders of the Corporation approved the Stock Incentive Plan of 2015, which provides for 1,300,000 shares of the Corporation's common stock to be made available for future equity-based awards and canceled the amount of shares available for future grant under prior share-based compensation plans. At June 30, 2015, there were 1,295,145 shares of common stock available for future grants under the Stock Incentive Plan of 2015.

Stock Options

The Corporation issues stock options to certain officers. Stock options are issued at the current market price of the Corporation's common stock on the date of grant and expire ten years from the date of grant. Stock options granted after 2012 vest ratably over a five-year period. Stock options granted prior to 2013 generally vest ratably over a three-year period.

In conjunction with the acquisition of Lake Michigan, the Corporation assumed the Lake Michigan Financial Corporation Stock Incentive Plan of 2012 and the Lake Michigan Financial Corporation Stock Incentive Plan of 2003 (collectively referred to as the Lake Michigan Stock Option Plans). On the date of acquisition, all outstanding Lake Michigan stock options became immediately vested, if not already vested, and were converted into 132,883 stock options for the Corporation. The converted options continue to have and are subject to the same terms of the Lake Michigan Stock Option Plans. No additional share-based awards may be granted under the Lake Michigan Stock Option Plans.

51

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2015 is presented below:

	Non-Vested Stock Options Outstanding						Stock Options Outstanding
	Number of Options		Weighted- Average Exercise Price Per Share		Weighted- Average Grant Date Fair Value Per Share		Number of Options		Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2014	432,199		$	26.75	$	8.30	1,037,311		$	25.90
Granted	244,165		30.18		8.40		244,165		30.18
Lake Michigan converted options	—		—		—		132,883		12.93
Exercised	—		—		—		(216,690	)	23.99
Vested	(150,224	)	25.57		7.80		—		—
Forfeited/expired	(9,175	)	28.21		8.52		(9,175	)	28.21
Outstanding at June 30, 2015	516,965		$	28.69	$	8.49	1,188,494		$	25.66
Exercisable/vested at June 30, 2015							671,529		$	23.32

The weighted-average remaining contractual terms were 6.6 years for all outstanding stock options and 4.8 years for exercisable stock options at June 30, 2015. The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $6.9 million and $4.7 million, respectively, at June 30, 2015. The aggregate intrinsic values of outstanding and exercisable options at June 30, 2015 were calculated based on the closing market price of the Corporation’s common stock on June 30, 2015 of $33.06 per share less the exercise price. Options with intrinsic values less than zero, or “out-of-the-money” options, were not included in the aggregate intrinsic value reported.

At June 30, 2015, unrecognized compensation expense related to stock options totaled $4.0 million and is expected to be recognized over a remaining weighted average period of 3.9 years.

The fair value of the stock options granted during the six months ended June 30, 2015 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions.

Expected dividend yield	3.50		%
Risk-free interest rate	1.78		%
Expected stock price volatility	39.1		%
Expected life of options – in years	7.0
Weighted average fair value of options granted	$	8.40

Restricted Stock Units

In addition to stock options, the Corporation grants restricted stock performance units and restricted stock service-based units (collectively referred to as restricted stock units) to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels and the grantee completing the requisite service period. The restricted stock performance units are eligible to vest from 0.25x to 1.5x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target levels are not achieved, no shares will become vested or be issued for that respective year’s restricted stock performance units. The restricted stock service-based units vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, if applicable, the restricted stock units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock units is recognized over the expected requisite performance or service period, as applicable.

52

Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

A summary of the activity for restricted stock units as of and for the six months ended June 30, 2015 is presented below:

	Number of Units		Weighted- Average Grant Date Fair Value  Per Unit
Outstanding at December 31, 2014	204,319		$	24.14
Granted	79,202		28.25
Converted into shares of common stock	(67,489	)	22.32
Forfeited/expired	(1,427	)	25.13
Outstanding at June 30, 2015	214,605		$	26.23

At June 30, 2015, unrecognized compensation expense related to restricted stock unit awards totaled $3.7 million and is expected to be recognized over a remaining weighted average period of 2.8 years.

Note 12: Pension and Other Postretirement Benefit Plans

The Corporation's retirement plans include a qualified pension plan, a nonqualified pension plan, a nonqualified postretirement benefit plan, a 401(k) savings plan, and a multi-employer defined benefit plan.

Qualified and Nonqualified Pension Plans and Nonqualified Postretirement Benefit Plans

The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Defined Benefit Pension Plans
Service cost	$	273		$	251		$	545		$	501
Interest cost	1,332			1,312			2,664			2,624
Expected return on plan assets	(2,161		)	(2,079		)	(4,322		)	(4,157		)
Amortization of prior service credit	(1		)	(1		)	(2		)	(1		)
Amortization of unrecognized net loss	1,056			569			2,112			1,138
Net periodic benefit cost	$	499		$	52		$	997		$	105
Postretirement Benefit Plan
Service cost	$	4		$	4		$	8		$	9
Interest cost	33			36			67			71
Amortization of prior service cost	32			33			65			65
Amortization of unrecognized net gain	—			(26		)	(1		)	(52		)
Net periodic benefit cost	$	69		$	47		$	139		$	93

The Corporation’s pension plan does not have a contribution requirement in 2015. The Corporation did not make a contribution to the pension plan during 2014. The discount rate used to compute the Corporation's pension plan expense for 2015 is 4.15%.

401(k) Savings Plan

401(k) Savings Plan expense for the Corporation’s match of participants’ base compensation contributions and a 4% of eligible pay contribution to certain employees who are not grandfathered under the pension plan was $1.3 million and $1.0 million for the three months ended June 30, 2015 and 2014, respectively, and $2.4 million and $1.7 million for the six-month period ended June 30, 2015 and 2014, respectively.

Multi-Employer Defined Benefit Plan

In conjunction with the April 1, 2015 acquisition of Monarch, the Corporation acquired a participation in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a qualified defined benefit pension plan. Employee benefits for Monarch employees under the Plan were frozen effective April 1, 2004. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal

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Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Revenue Code (IRC). The Pentegra Plan is a single plan under IRC Section 413(c) and, as a result, all the plan's assets stand behind all of the plan's liabilities. Accordingly, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. No contributions were made by the Corporation to the Pentegra DB Plan for the three months ended June 30, 2015.

Note 13: Financial Guarantees

In the normal course of business, the Corporation is a party to financial instruments containing credit risk that are not required to be reflected in the consolidated statements of financial position. For the Corporation, these financial instruments are financial and performance standby letters of credit. The Corporation has risk management policies to identify, monitor and limit exposure to credit risk. To mitigate credit risk for these financial guarantees, the Corporation generally determines the need for specific covenant, guarantee and collateral requirements on a case-by-case basis, depending on the nature of the financial instrument and the customer’s creditworthiness. At June 30, 2015, December 31, 2014 and June 30, 2014, the Corporation had $45 million, $41 million and $37 million, respectively, of outstanding financial and performance standby letters of credit that expire in five years or less. The majority of these standby letters of credit are collateralized. The Corporation determined that there were no potential losses from standby letters of credit at June 30, 2015, December 31, 2014 and June 30, 2014.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is management's discussion and analysis of certain significant factors that have affected the financial condition and results of operations of Chemical Financial Corporation (Corporation) during the periods included in the consolidated financial statements included in this report.

Critical Accounting Policies

The Corporation's consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (GAAP), Securities and Exchange Commission (SEC) rules and interpretive releases and general practices within the industry in which the Corporation operates. Application of these principles requires management to make estimates, assumptions and complex judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, the consolidated financial statements could reflect different estimates, assumptions and judgments. Actual results could differ significantly from those estimates. Certain policies inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management has identified the determination of the allowance for loan losses, accounting for business combinations (including acquired loans), pension plan accounting, income and other taxes, fair value measurements and the evaluation of goodwill impairment to be the accounting areas that require the most subjective or complex judgments and, as such, could be most subject to revision as new or additional information becomes available or circumstances change, including overall changes in the economic climate and/or market interest rates. Therefore, management considers them to be critical accounting policies and discusses them directly with the Audit Committee of the board of directors. The Corporation's significant accounting policies are more fully described in Note 1 to the audited consolidated financial statements contained in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014 and the more significant assumptions and estimates made by management are more fully described in “Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014. There were no material changes to the Corporation's significant accounting policies or the estimates made pursuant to those policies during the most recent quarter.

Non-GAAP Financial Measures

This report contains references to financial measures which are not defined in GAAP. Such non-GAAP financial measures include the Corporation's tangible equity to assets ratio, presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and information presented excluding nonrecurring transaction-related expenses, including net income, diluted earnings per share, return on average assets, return on average shareholders' equity and operating expenses. These non-GAAP financial measures have been included as the Corporation believes they are helpful for investors to analyze and evaluate the Corporation's financial condition.

Acquisitions

Acquisition of Lake Michigan Financial Corporation

On May 31, 2015, the Corporation acquired all of the outstanding stock of Lake Michigan Financial Corporation (Lake Michigan) for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. As a result of the acquisition, the Corporation issued approximately 4.3 million shares of its common stock, based on an exchange ratio of 1.326 shares of its common stock, and paid $16.64 in cash, for each share of Lake Michigan common stock outstanding. Lake Michigan, a bank holding company, owned The Bank of Holland and The Bank of Northern Michigan, which combined operate five banking offices in Holland, Grand Haven, Grand Rapids, Petoskey and Traverse City, Michigan. The Bank of Holland and The Bank of Northern Michigan will be operated as separate subsidiaries of the Corporation until their planned consolidation with and into Chemical Bank in the fourth quarter of 2015 in conjunction with conversion of their core data systems into Chemical Bank's. The acquisition of Lake Michigan resulted in increases in the Corporation's total assets of $1.24 billion, including total loans of $986 million, and total deposits of $925 million. In connection with the acquisition of Lake Michigan, the Corporation recorded $100 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Lake Michigan. In addition, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

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Acquisition of Monarch Community Bancorp, Inc.

On April 1, 2015, the Corporation acquired all of the outstanding stock of Monarch Community Bancorp, Inc. (Monarch) in an all-stock transaction valued at $27.2 million. As a result of the acquisition, the Corporation issued 860,575 shares of its common stock based on an exchange ratio of 0.0982 shares of its common stock for each share of Monarch common stock outstanding. Monarch, a bank holding company, owned Monarch Community Bank, which operated five full service branch offices in Coldwater, Marshall, Hillsdale and Union City, Michigan. Monarch Community Bank was consolidated with and into Chemical Bank on May 8, 2015. The acquisition of Monarch resulted in increases in the Corporation's total assets of $183 million, including total loans of $122 million, and total deposits of $144 million. In connection with the acquisition of Monarch, the Corporation recorded $5.4 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Monarch. In addition, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

In conjunction with the acquisition of Monarch, the Corporation closed two branches in communities where Monarch and Chemical Bank had overlapping branches. The Corporation did not recognize any expense as a result of closing these branch office locations. The majority of the employees of these two branch offices were transferred to other nearby Chemical Bank branch locations or other open positions within Chemical Bank.

Acquisition of Northwestern Bancorp, Inc.

On October 31, 2014, the Corporation acquired all of the outstanding stock of Northwestern Bancorp, Inc. (Northwestern) for total cash consideration of $121 million. Northwestern, a bank holding company which owned Northwestern Bank, provided traditional banking services and products through 25 banking offices serving communities in the northwestern lower peninsula of Michigan. As of the October 31, 2014 acquisition date, Northwestern added total assets of $815 million, including total loans of $475 million, and total deposits of $794 million to the Corporation. Northwestern Bank was consolidated with and into Chemical Bank as of the acquisition date and the Corporation consolidated four branches in communities where Chemical Bank and Northwestern had overlapping branches. In connection with the acquisition of Northwestern, the Corporation recorded $60 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Northwestern. In addition, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition.

Acquisition of 21 Branches

On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation, located in the Northeast and Battle Creek regions of Michigan, including $404 million in deposits and $44 million in loans (branch acquisition transaction). The Corporation paid a premium on deposits of $11.5 million, or approximately 2.85% of total deposits acquired and the loans were purchased at a discount of 1.75%. In connection with the branch acquisition transaction, the Corporation recorded goodwill of $6.8 million, which represented the excess of the purchase price over the fair value of identifiable net assets acquired, and other intangible assets attributable to customer core deposits of $5.6 million.

Acquisition of O.A.K. Financial Corporation

On April 30, 2010, the Corporation acquired O.A.K. Financial Corporation (OAK) and OAK's wholly-owned bank subsidiary, Byron Bank, in an all-stock transaction for total consideration of $83.7 million. Byron Bank, which was subsequently consolidated with and into Chemical Bank, provided traditional banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At April 30, 2010, OAK had total assets of $820 million, including total loans of $627 million, and total deposits of $693 million, including brokered deposits of $193 million. In connection with the acquisition of OAK, the Corporation recorded goodwill of $43.5 million, which represented the synergies and economies of scale expected from combining the operations of the Corporation and OAK. In addition, the Corporation recorded other intangible assets in conjunction with the acquisition of OAK of $9.8 million.

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Summary

The Corporation's net income was $19.0 million, or $0.54 per diluted share, in the second quarter of 2015, compared to net income of $16.2 million, or $0.54 per diluted share, in the second quarter of 2014 and net income of $17.8 million, or $0.54 per diluted share, in the first quarter of 2015. Nonrecurring transaction-related expenses totaled $3.5 million in the second quarter of 2015, $0.6 million in the second quarter of 2014 and $1.4 million in the first quarter of 2015. Excluding nonrecurring transaction-related expenses, net income was $21.7 million, or $0.61 per diluted share, in the second quarter of 2015, compared to $16.7 million, or $0.55 per diluted share, in the second quarter of 2014 and $18.7 million, or $0.57 per diluted share, in the first quarter of 2015. Net income, excluding nonrecurring transaction-related expenses, in the second quarter of 2015, was 30% higher than the second quarter of 2014 due to higher net interest income and higher noninterest income, which were partially offset by higher operating expenses. The increases in income and expenses were due, in part, to the Lake Michigan, Monarch, and Northwestern transactions. Net income, excluding nonrecurring transaction-related expenses, in the second quarter of 2015 was 16% higher than the first quarter of 2015 due largely to incremental income resulting from the Lake Michigan and Monarch transactions.

Return on average assets, on an annualized basis, was 0.94% in the second quarter of 2015, compared to 1.04% in the second quarter of 2014 and 0.98% in the first quarter of 2015. Return on average equity, on an annualized basis, was 8.6% in the second quarter of 2015, compared to 9.1% in the second quarter of 2014 and 9.0% in the first quarter of 2015.

The Corporation's net income was $36.9 million, or $1.08 per diluted share, for the six months endedJune 30, 2015, compared to net income of $30.0 million, or $1.00 per diluted share, for the six months endedJune 30, 2014. Excluding nonrecurring transaction-related expenses of $4.8 million and $1.0 million for the six months endedJune 30, 2015 and 2014, respectively, the Corporation's net income was $40.4 million, or $1.18 per diluted share, for the six months endedJune 30, 2015, compared to $30.7 million, or $1.02 per diluted share, for the six months endedJune 30, 2014. The increase in net income for the six months endedJune 30, 2015 over the same period for 2014 was due to a combination of the impact of the three acquisitions and organic loan growth.

Financial Condition

Total Assets

Total assets were $9.02 billion at June 30, 2015, an increase of $1.47 billion, or 19%, from total assets of $7.55 billion at March 31, 2015, an increase of $1.70 billion, or 23%, from total assets of $7.32 billion at December 31, 2014 and an increase of $2.79 billion, or 45%, from total assets of $6.23 billion at June 30, 2014.

Interest-earning assets were $8.28 billion at June 30, 2015, an increase of $1.20 billion, or 17%, from interest-earning assets of $7.08 billion at March 31, 2015, an increase of $1.45 billion, or 21%, from interest-earning assets of $6.83 billion at December 31, 2014, and an increase of $2.42 billion, or 41%, from interest-earning assets of $5.86 billion at June 30, 2014.

The increases in total assets and interest-earning assets during the three months ended June 30, 2015 were primarily due to the acquisitions of Lake Michigan and Monarch, along with organic loan growth. The increases in total assets and interest-earning assets during the twelve-month period ended June 30, 2015 were attributable to a combination of the acquisitions of Lake Michigan, Monarch and Northwestern and an increase in customer deposits that were used to partially fund loan growth. Lake Michigan, Monarch and Northwestern added total assets of $1.24 billion, $183 million and $815 million, respectively, and interest-earning assets of $1.08 billion, $143 million and $680 million, respectively, as of the respective acquisition dates.

Investment Securities

The carrying value of investment securities totaled $1.16 billion at June 30, 2015, an increase of $93 million, or 8.8%, from investment securities of $1.06 billion at March 31, 2015, an increase of $90 million, or 8.5%, from investment securities of $1.07 billion at December 31, 2014, and an increase of $231 million, or 25%, from investment securities of $924.1 million at June 30, 2014. The increase in investment securities during the three months ended June 30, 2015 was attributable to the Lake Michigan transaction, which was partially offset by the Corporation utilizing some of the liquidity from maturing investment securities to partially fund loan growth. The Corporation acquired $67 million of investment securities in the Lake Michigan acquisition, which were primarily comprised of collateralized mortgage obligations. The increase in investment securities during the twelve months ended June 30, 2015 was also attributable to the Northwestern transaction, which was partially offset by the Corporation utilizing some of the liquidity from maturing investment securities to partially fund loan growth.

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A summary of the composition of the carrying value of the Corporation's investments securities portfolio follows:

	June 30, 2015		March 31, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Available-for-sale:
U.S. Treasury securities	$	8,294	$	8,302	$	8,259	$	—
Government sponsored agencies	227,907		250,430		263,503		88,708
State and political subdivisions	26,965		32,322		46,227		41,608
Residential mortgage-backed securities	212,669		219,601		239,807		265,368
Collateralized mortgage obligations	167,032		133,300		144,383		153,283
Corporate bonds	39,678		34,997		45,095		65,352
Preferred stock and trust preferred securities	3,161		1,692		1,590		1,656
Total available-for-sale investment securities	685,706		680,644		748,864		615,975
Held-to-maturity:
State and political subdivisions	469,337		370,950		305,913		297,630
Trust preferred securities	500		10,500		10,500		10,500
Total held-to-maturity investment securities	469,837		381,450		316,413		308,130
Total investment securities	$	1,155,543	$	1,062,094	$	1,065,277	$	924,105

At June 30, 2015, the Corporation's investment securities portfolio consisted of: U.S. Treasury securities, comprised of fixed-rate government debt obligations issued by the U.S. Department of Treasury, totaling $8.3 million; government sponsored agency (GSA) debt obligations, comprised primarily of fixed-rate instruments backed by Federal Home Loan Banks, Federal Farm Credit Banks and Student Loan Marketing Corporation, totaling $227.9 million; state and political subdivisions debt obligations, comprised primarily of general debt obligations of issuers primarily located in the State of Michigan, totaling $496.3 million; residential mortgage-backed securities (MBSs), comprised primarily of fixed-rate instruments backed by a U.S. government agency (Government National Mortgage Association) or government sponsored enterprises (Federal Home Loan Mortgage Corporation and Federal National Mortgage Association), totaling $212.7 million; collaterized mortgage obligations (CMOs), comprised of approximately 55% fixed-rate and 45% variable-rate instruments backed by the same U.S. government agency and government sponsored enterprises as the residential MBSs with average maturities of less than three years, totaling $167.0 million; corporate bonds, comprised primarily of debt obligations of large U.S. global financial organizations, totaling $39.7 million; and preferred stock and trust preferred securities (TRUPs), comprised of preferred stock debt instruments of two large regional/national banks and variable-rate TRUPs from both a publicly-traded bank holding company and a small non-public bank holding company, totaling $3.7 million. Fixed-rate instruments comprised 87% of the Corporation's investment securities portfolio at June 30, 2015.

The Corporation utilizes third-party pricing services to obtain market value prices for its investment securities portfolio. On a quarterly basis, the Corporation validates the reasonableness of prices received from the third-party pricing services through independent price verification on a sample of investment securities in the portfolio, data integrity validation based upon comparison of current market prices to prior period market prices and analysis of overall expectations of movement in market prices based upon the changes in the related yield curves and other market factors. On a periodic basis, the Corporation reviews the pricing methodology of the third-party pricing vendors and the results of the vendors' internal control assessments to ensure the integrity of the process that the vendors use to develop market pricing for the Corporation's investment securities portfolio.

The Corporation's investment securities portfolio, with a carrying value of $1.16 billion at June 30, 2015, had gross impairment of $11.1 million at that date. Management believed that the unrealized losses on investment securities were temporary in nature and due primarily to changes in interest rates on the investment securities and market illiquidity and not as a result of credit-related issues. Accordingly, the Corporation believed the impairment in its investment securities portfolio at June 30, 2015 was temporary in nature and, therefore, no impairment loss was recognized in the Corporation's consolidated statement of income for the three months ended June 30, 2015. However, other-than-temporary impairment (OTTI) may occur in the future as a result of material declines in the fair value of investment securities resulting from market, credit, economic or other conditions. A further discussion of the assessment of potential impairment and the Corporation's process that resulted in the conclusion that the impairment was temporary in nature follows.

At June 30, 2015, the gross impairment in the Corporation's investment securities portfolio of $11.1 million was comprised as follows: GSA securities, residential MBSs and CMOs, combined, of $2.9 million; state and political subdivisions securities of $7.9 million; corporate bonds of less than $0.1 million; and TRUPs of $0.2 million. The amortized costs and fair values of investment securities are disclosed in Note 3 to the consolidated financial statements.

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GSA securities, residential MBSs and CMOs, included in the available-for-sale investment securities portfolio, had a combined amortized cost of $609 million and gross impairment of $2.9 million at June 30, 2015. Virtually all of the impaired investment securities in these categories are backed by the full faith and credit of the U.S. government or a guarantee of a U.S. government agency or government sponsored enterprise. The Corporation determined that the impairment on these investment securities was attributable to current market interest rates being higher than the yields being earned on these investment securities. The Corporation concluded that the impairment of its GSA securities, residential MBSs and CMOs was temporary in nature at June 30, 2015.

State and political subdivisions securities, included in the available-for-sale and the held-to-maturity investment securities portfolios, had an amortized cost of $496 million and gross impairment of $7.9 million at June 30, 2015. The Corporation's state and political subdivisions securities are almost entirely from issuers primarily located in the State of Michigan and are general obligations of the issuer, meaning that repayment of these obligations is funded by general tax collections of the issuer. The Corporation holds no debt obligations issued by the City of Detroit, Michigan. The gross impairment was attributable to impaired state and political subdivisions securities with an amortized cost of $329 million that generally mature beyond 2018. It was the Corporation's assessment that the impairment on these investment securities was attributable to current market interest rates being slightly higher than the yield on these investment securities, illiquidity in the market for a portion of these investment securities caused by the market's perception of the Michigan economy, and illiquidity in the market due to the nature of a portion of these investment securities. The Corporation concluded that the impairment of its state and political subdivisions securities was temporary in nature at June 30, 2015.

At June 30, 2015, the Corporation held one TRUP in the held-to-maturity investment securities portfolio, with an amortized cost of $0.5 million and gross impairment of $0.2 million. This TRUP represents a 10% interest in the TRUP of a non-public bank holding company in Michigan. At June 30, 2015, the issuer was categorized as well-capitalized under applicable regulatory requirements. The principal of $0.5 million of this TRUP matures in 2033, with interest payments due quarterly. All scheduled interest payments on this TRUP have been made on a timely basis. At June 30, 2015, the Corporation was not aware of any regulatory orders, memorandums of understanding or cease and desist orders that had been issued to the issuer of this TRUP or any subsidiary. In reviewing all reasonably available financial information regarding the TRUP, it was the Corporation's opinion that the carrying value at its original cost of $0.5 million was supported by the issuer's financial position at June 30, 2015. While the fair value of the TRUP was $0.2 million below the Corporation's amortized cost at June 30, 2015, the Corporation concluded that the impairment was temporary in nature at June 30, 2015.

As of March 31, 2015, December 31, 2014 and June 30, 2014, the Corporation also held a $10.0 million TRUP investment security which represented a 100% interest in a TRUP of Lake Michigan. In conjunction with the Lake Michigan transaction, this investment was settled as of the acquisition date at par.

At June 30, 2015, the Corporation expected to fully recover the entire amortized cost basis of each impaired investment security in its investment securities portfolio at that date. Furthermore, at June 30, 2015, the Corporation did not have the intent to sell any of its impaired investment securities and believed that it was more-likely-than-not that the Corporation would not have to sell any of its impaired investment securities before a full recovery of amortized cost. However, there can be no assurance that OTTI losses will not be recognized on the TRUPs or on any other investment security in the future.

Loans

The Corporation's loan portfolio is comprised of commercial, commercial real estate, real estate construction and land development loans, referred to as the Corporation's commercial loan portfolio, and residential mortgage, consumer installment and home equity loans, referred to as the Corporation's consumer loan portfolio. At June 30, 2015, the Corporation's loan portfolio was $7.03 billion and consisted of loans in the commercial loan portfolio totaling $4.11 billion, or 58% of total loans, and loans in the consumer loan portfolio totaling $2.92 billion, or 42% of total loans. Loans at fixed interest rates comprised 74% of the Corporation's total loan portfolio at June 30, 2015, compared to 76% at March 31, 2015, 77% at December 31, 2014 and 76% at June 30, 2014.

The Corporation's subsidiary banks are full-service commercial banks, and the acceptance and management of credit risk is an integral part of the Corporation's business. The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation's market areas. The Corporation's lending markets generally consist of communities across the lower peninsula of Michigan, except for the southeastern portion of Michigan. The Corporation has no foreign loans or any loans to finance highly leveraged transactions. The Corporation's lending philosophy is implemented through strong administrative and reporting controls. The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio.

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Total loans were $7.03 billion at June 30, 2015, an increase of $1.33 billion, or 23%, from total loans of $5.70 billion at March 31, 2015, an increase of $1.35 billion, or 24%, from total loans of $5.69 billion at December 31, 2014 and an increase of $2.14 billion, or 44%, from total loans of $4.90 billion at June 30, 2014. The increase in total loans during the twelve-month period ended June 30, 2015 was attributable to organic loan growth of $553 million, or 11%, and $1.58 billion of loans acquired through acquisitions, including $986 million, $122 million and $475 million of loans acquired in the Lake Michigan, Monarch and Northwestern transactions, respectively. The organic loan growth generally occurred across all major loan categories and across all of the Corporation's banking markets and were attributable to a combination of improving economic conditions and higher loan demand, as well as the Corporation increasing its market share in both its commercial and consumer loan portfolios.

A summary of acquisition-related loan growth during the second quarter of 2015 and over the past year follows:

	Lake Michigan (May 31, 2015)		Monarch (April 1, 2015)		Acquisition-Related Loan Growth - Three and Six Months Ended June 30, 2015		North-western (October 31, 2014)		Acquisition-Related Loan Growth - Twelve Months Ended June 30, 2015
	(In millions)
Commercial loan portfolio:
Commercial	$	301	$	19	$	320	$	46	$	366
Commercial real estate	532		45		577		223		800
Real estate construction	18		—		18		3		21
Land development	—		—		—		11		11
Subtotal	851		64		915		283		1,198
Consumer loan portfolio:
Residential mortgage	79		49		128		106		234
Consumer installment	8		—		8		6		14
Home equity	48		9		57		80		137
Subtotal	135		58		193		192		385
Total loans	$	986	$	122	$	1,108	$	475	$	1,583

A summary of the composition of the Corporation's loan portfolio, by major loan category, follows:

	June 30, 2015		March 31, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,754,873	$	1,356,169	$	1,354,881	$	1,212,383
Commercial real estate	2,243,513		1,616,923		1,557,648		1,298,365
Real estate construction	101,717		95,923		152,745		101,168
Land development	10,595		12,916		18,750		10,956
Subtotal	4,110,698		3,081,931		3,084,024		2,622,872
Consumer loan portfolio:
Residential mortgage	1,310,167		1,117,445		1,110,390		970,397
Consumer installment	887,907		844,066		829,570		744,781
Home equity	725,971		659,432		664,246		560,754
Subtotal	2,924,045		2,620,943		2,604,206		2,275,932
Total loans	$	7,034,743	$	5,702,874	$	5,688,230	$	4,898,804

A discussion of the Corporation’s loan portfolio by category follows.

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Commercial Loan Portfolio

The Corporation's commercial loan portfolio is comprised of commercial loans, commercial real estate loans, real estate construction loans and land development loans. The Corporation's commercial loan portfolio is well diversified across business lines and has no concentration in any one industry. The commercial loan portfolio of $4.11 billion at June 30, 2015 included 120 loan relationships of $5.0 million or greater. These 120 loan relationships totaled $1.17 billion, which represented 28% of the commercial loan portfolio at June 30, 2015, and included 37 loan relationships that had outstanding balances of $10 million or higher, totaling $582 million, or 14% of the commercial loan portfolio, at that date. The Corporation had 7 loan relationships that had outstanding balances of $20 million or higher, totaling $174 million, or 4.2% of the commercial loan portfolio, at June 30, 2015. The Corporation had 16 loan relationships at June 30, 2015 with loan balances greater than $5.0 million and less than $10 million, totaling $138 million, that had unfunded credit commitments totaling $80 million that, if advanced, could result in a loan relationship of $10 million or more.

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 customer. Commercial loans are generally secured with inventory, accounts receivable, equipment, personal guarantees of the owner or other sources of repayment, although the Corporation may also obtain real estate as collateral.

Commercial loans were $1.75 billion at June 30, 2015, compared to $1.36 billion at March 31, 2015, $1.35 billion at December 31, 2014 and $1.21 billion at June 30, 2014. Commercial loans grew organically by $78 million, or 5.8%, during the second quarter of 2015 and $176 million, or 14.5%, during the twelve months ended June 30, 2015, with the remainder of the growth attributable to the three acquisition transactions completed during the last three quarters. Commercial loans represented 24.9% of the Corporation's loan portfolio at June 30, 2015, compared to 23.8%, 23.8% and 24.8% at March 31, 2015, December 31, 2014, and June 30, 2014, respectively.

Commercial real estate loans include loans that are secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development. Commercial real estate loans were $2.24 billion at June 30, 2015, compared to $1.62 billion at March 31, 2015, $1.56 billion at December 31, 2014 and $1.30 billion at June 30, 2014. Commercial real estate loans grew organically by $50 million, or 3.1%, during the second quarter of 2015 and $146 million, or 11.3%, during the twelve months ended June 30, 2015, with the remainder of the growth attributable to the three acquisition transactions completed during the last three quarters. Loans secured by owner occupied properties, non-owner occupied properties and vacant land comprised 47%, 51% and 2%, respectively, of the Corporation's commercial real estate loans outstanding at June 30, 2015. Commercial real estate loans represented 31.9% of the Corporation's loan portfolio at June 30, 2015, compared to 28.4%, 27.4% and 26.5% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively.

Commercial and commercial real estate lending is generally considered to involve a higher degree of risk than residential mortgage, consumer installment and home equity lending as they typically involve larger loan balances concentrated in a single borrower. In addition, the payment experience on loans secured by income-producing properties and vacant land loans is typically dependent on the success of the operation of the related project and is typically affected by adverse conditions in the real estate market and in the economy. The Corporation generally attempts to mitigate the risks associated with commercial and commercial real estate lending by, among other things, lending primarily in its market areas, lending across industry lines, not developing a concentration in any one line of business and using prudent loan-to-value ratios in the underwriting process. It is management's belief that the Corporation's commercial and commercial real estate loan portfolios are generally well-secured.

Real estate construction loans are primarily originated for construction of commercial properties and often convert to a commercial real estate loan at the completion of the construction period. Real estate construction loans were $102 million at June 30, 2015, compared to $96 million at March 31, 2015, $153 million at December 31, 2014 and $101 million at June 30, 2014. Real estate construction loans represented 1.4% of the Corporation's loan portfolio at June 30, 2015, compared to 1.7%, 2.7% and 2.1% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively.

Land development loans include loans made to developers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. A majority of the Corporation's land development loans consist of loans to develop residential real estate. Land development loans are generally originated with the intention that the loans will be repaid through the sale of finished properties by the developers within twelve months of the completion date. Land development loans were $10.6 million at June 30, 2015, compared to $12.9 million at March 31, 2015, $18.8 million at December 31, 2014 and $11.0 million at June 30, 2014. Land development loans represented 0.2% of the Corporation's loan portfolio at June 30, 2015, compared to 0.2%, 0.3%, and 0.2% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively.

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Real estate construction and land development lending involves a higher degree of risk than commercial real estate lending and residential mortgage lending because of the uncertainties of construction, including the possibility of costs exceeding the initial estimates, the need to obtain a tenant or purchaser of the property if it will not be owner-occupied or the need to sell developed properties. The Corporation generally attempts to mitigate the risks associated with real estate construction and land development lending by, among other things, lending primarily in its market areas, using prudent underwriting guidelines and closely monitoring the construction process. At June 30, 2015, $1.9 million, or 18%, of the Corporation's $10.6 million of land development loans were impaired, whereby the Corporation determined it was probable that the full amount of principal and interest would not be collected on these loans in accordance with their original contractual terms.

Consumer Loan Portfolio

The Corporation's consumer loan portfolio is comprised of residential mortgage loans, consumer installment loans and home equity loans and lines of credit.

Residential mortgage loans consist primarily of one- to four-family residential loans with fixed interest rates of fifteen years or less with amortization periods generally from fifteen to thirty years. The loan-to-value ratio at the time of origination is generally 80% or less. Loans with more than an 80% loan-to-value ratio generally require private mortgage insurance. At June 30, 2015, approximately 70% of the Corporation's residential mortgage loans had an original loan-to-value ratio of 80% or less.

Residential mortgage loans were $1.31 billion at June 30, 2015, compared to $1.12 billion at March 31, 2015, $1.11 billion at December 31, 2014 and $970 million at June 30, 2014. Residential mortgage loans grew organically by $48 million, or 4.3%, during the second quarter of 2015 and $89 million, or 9.2%, during the twelve months ended June 30, 2015, with the remainder of the growth attributable to the three acquisition transactions completed during the last three quarters. Residential mortgage loans had historically involved the least amount of credit risk in the Corporation's loan portfolio, although the risk on these loans increased over the last several years when the unemployment rate increased and real estate property values declined in the State of Michigan. Residential mortgage loans also include loans to consumers for the construction of single family residences that are secured by these properties. Residential mortgage construction loans to consumers were $69.6 million at June 30, 2015, compared to $51.7 million at March 31, 2015, $42.5 million at December 31, 2014 and $37.0 million at June 30, 2014. Residential mortgage loans represented 18.6% of the Corporation's loan portfolio at June 30, 2015, compared to 19.6%, 19.5% and 19.8% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively. The Corporation had residential mortgage loans with maturities beyond five years and that were at fixed interest rates totaling $319 million at June 30, 2015, compared to $304 million, $306 million and $311 million at March 31, 2015, December 31, 2014 and June 30, 2014, respectively.

The Corporation's consumer installment loans consist of relatively small loan amounts to consumers to finance personal items (primarily automobiles, recreational vehicles and marine vehicles) and are comprised primarily of indirect loans purchased from dealerships. Consumer installment loans were $888 million at June 30, 2015, compared to $844 million at March 31, 2015, $830 million at December 31, 2014 and $745 million at June 30, 2014. Consumer installment loans grew organically by $36 million, or 4.3%, during the second quarter of 2015 and $129 million, or 17%, during the twelve months ended June 30, 2015, with the remainder of the growth attributable to the three acquisition transactions completed during the last three quarters. At June 30, 2015, collateral securing consumer installment loans was comprised approximately as follows: automobiles - 59%; recreational vehicles - 24%; marine vehicles - 12%; other collateral - 4%; and unsecured - 1%. Consumer installment loans represented 12.6% of the Corporation's loan portfolio at June 30, 2015, compared to 14.8%, 14.6% and 15.2% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively.

The Corporation's home equity loans, including home equity lines of credit, are comprised of loans to consumers who utilize equity in their personal residence, including junior lien mortgages, as collateral to secure the loan or line of credit. Home equity loans were $726 million at June 30, 2015, compared to $659 million at March 31, 2015, $664 million at December 31, 2014 and $561 million at June 30, 2014. Home equity loans grew organically by $10 million, or 1.5%, during the second quarter of 2015 and $28 million, or 5.0%, during the twelve months ended June 30, 2015, with the remainder of the growth attributable to the three acquisition transactions completed during the last three quarters. At June 30, 2015, approximately 56% of the Corporation's home equity loans were first lien mortgages and 44% were junior lien mortgages. Home equity loans represented 10.3% of the Corporation's loan portfolio at June 30, 2015, compared to 11.6%, 11.7% and 11.4% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively. Home equity lines of credit comprised 40% of the Corporation's home equity loans at June 30, 2015 compared to 35% at both March 31, 2015 and December 31, 2014 and 33% at June 30, 2014. The majority of the Corporation's home equity lines of credit are comprised of loans with payments of interest only and original maturities of up to ten years. These home equity lines of credit include junior lien mortgages whereby the first lien mortgage is held by a nonaffiliated financial institution.

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Consumer installment and home equity loans generally have shorter terms than residential mortgage loans, but generally involve more credit risk than residential mortgage lending because of the type and nature of the collateral. The Corporation experienced decreases in losses on consumer installment and home equity loans, with net loan losses totaling 14 basis points (annualized) of average consumer installment and home equity loans during the first six months of 2015, compared to 32 basis points and 43 basis points of average consumer installment and home equity loans in 2014 and 2013, respectively. Consumer installment and home equity loans are spread across many individual borrowers, which minimizes the risk per loan transaction. The Corporation originates consumer installment and home equity loans utilizing a computer-based credit scoring analysis to supplement the underwriting process. Consumer installment and home equity lending collections are dependent on the borrowers' continuing financial stability and are more likely to be affected by adverse personal situations. Collateral values on properties securing consumer installment and home equity loans are negatively impacted by many factors, including the physical condition of the collateral and property values, although losses on consumer installment and home equity loans are often more significantly impacted by the unemployment rate and other economic conditions. The unemployment rate in the State of Michigan was 5.5% at June 30, 2015 compared to 5.6%, 6.3%, and 7.5% at March 31, 2015, December 31, 2014 and June 30, 2014, respectively, although still higher than the national average of 5.3% at June 30, 2015.

Nonperforming Assets

Nonperforming assets include nonperforming loans, which consist of originated loans for which the accrual of interest has been discontinued (nonaccrual loans), originated loans that are past due as to principal or interest by 90 days or more and still accruing interest and nonperforming loans that have been modified under troubled debt restructurings (TDRs). Nonperforming assets also include assets obtained through foreclosures and repossessions. The Corporation transfers an originated loan that is 90 days or more past due to nonaccrual status (except for loans that are secured by residential real estate, which are transferred at 120 days past due), unless it believes the loan is both well-secured and in the process of collection. For loans classified as nonaccrual, including those with modifications, the Corporation does not expect to receive all principal and interest payments, and therefore, any payments are recognized as principal reductions when received. Conversely, the Corporation expects to receive all principal and interest payments on loans that meet the definition of nonperforming TDR status. TDRs continue to be reported as nonperforming loans until a six-month payment history of principal and interest payments is sustained in accordance with the terms of the loan modification, at which time the loan is no longer considered a nonperforming asset and the Corporation moves the loan to a performing TDR status.

Nonperforming assets were $85.1 million at June 30, 2015, a decrease of $2.4 million, or 2.7%, from $87.5 million at March 31, 2015and a decrease of $0.3 million, or 0.3%, from $85.4 million at December 31, 2014. Nonperforming assets represented 0.94%, 1.16% and1.17%of total assets at June 30, 2015, March 31, 2015 and December 31, 2014, respectively. The Corporation's nonperforming assets are notconcentrated in any one industry or any one geographical area within Michigan. At June 30, 2015, there were two commercial loanrelationships exceeding $5.0 million, totaling $10.8 million, which were in nonperforming status, of which one totaling $5.5 million has been in nonperforming status for over five years. While the economic climate in Michigan continues to improve, based on declines in both residential and commercial real estate appraised values due to the weakness in the Michigan economy over the past several years, management continues to evaluate and, when appropriate, obtain new appraisals or discount appraised values of existing appraisals to compute net realizable values of nonperforming real estate secured loans and other real estate properties.

Nonperforming assets at June 30, 2015, March 31, 2015 and December 31, 2014 did not include impaired acquired loans totaling $15.9 million, $11.2 million and $19.9 million, respectively, even though these loans were not performing in accordance with their original contractual terms. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loan pools. Acquired loans not performing in accordance with the loan's original contractual terms are included in the Corporation's impaired loan schedule in Note 4 to the consolidated financial statements.

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The following schedule provides a summary of nonperforming assets:

	June 30, 2015			March 31, 2015			December 31, 2014
	(Dollars in thousands)
Nonaccrual loans:
Commercial	$	17,260		$	18,904		$	16,418
Commercial real estate	25,287			24,766			24,966
Real estate construction	247			663			162
Land development	255			290			225
Residential mortgage	6,004			6,514			6,706
Consumer installment	393			433			500
Home equity	1,769			1,870			1,667
Total nonaccrual loans	51,215			53,440			50,644
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	711			52			170
Commercial real estate	56			148			—
Real estate construction	—			—			—
Land development	—			—			—
Residential mortgage	424			172			557
Consumer installment	—			—			—
Home equity	588			429			1,346
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,779			801			2,073
Nonperforming TDRs:
Commercial loan portfolio	14,547			15,810			15,271
Consumer loan portfolio	3,365			2,690			3,196
Total nonperforming TDRs	17,912			18,500			18,467
Total nonperforming loans	70,906			72,741			71,184
Other real estate and repossessed assets(1)	14,197			14,744			14,205
Total nonperforming assets	$	85,103		$	87,485		$	85,389
Nonperforming loans as a percent of total loans	1.01		%	1.28		%	1.25		%
Nonperforming assets as a percent of total assets	0.94		%	1.16		%	1.17		%

(1) Includes property acquired through foreclosure and by acceptance of a deed in lieu of foreclosure and other property held-for-sale.

The Corporation's nonaccrual loans that meet the definition of a TDR (nonaccrual TDR) totaled $35.7 million at June 30, 2015, compared to $37.3 million at March 31, 2015 and $37.2 million at December 31, 2014. These loans have been modified by providing the borrower a financial concession that is intended to improve the Corporation's probability of collection of the amounts due.

The following schedule summarizes changes in nonaccrual loans during the three and six months ended June 30, 2015 and 2014.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
	(In thousands)
Balance at beginning of period	$	53,440		$	57,687		$	50,644		$	61,897
Additions during period	8,456			7,634			19,037			14,301
Principal balances charged off	(2,369		)	(2,751		)	(4,771		)	(5,703		)
Transfers to other real estate/repossessed assets	(1,744		)	(1,354		)	(3,526		)	(3,376		)
Returned to accrual status	(871		)	(3,437		)	(1,497		)	(5,734		)
Payments received	(5,697		)	(2,144		)	(8,672		)	(5,750		)
Balance at end of period	$	51,215		$	55,635		$	51,215		$	55,635

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Nonperforming Loans

The following schedule provides the composition of nonperforming loans, by major loan category, as of June 30, 2015, March 31, 2015 and December 31, 2014.

	June 30, 2015				March 31, 2015				December 31, 2014
	Amount		Percent of Total		Amount		Percent of Total		Amount		Percent of Total
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	$	21,514	30.3	%	$	22,448	30.9	%	$	21,121	29.7	%
Commercial real estate	36,012		50.8		37,182		51.1		35,654		50.1
Real estate construction	247		0.4		663		0.9		162		0.2
Land development	590		0.8		340		0.5		275		0.4
Subtotal-commercial loan portfolio	58,363		82.3		60,633		83.4		57,212		80.4
Consumer loan portfolio:
Residential mortgage	9,793		13.8		9,376		12.9		10,459		14.7
Consumer installment	393		0.6		433		0.6		500		0.7
Home equity	2,357		3.3		2,299		3.1		3,013		4.2
Subtotal-consumer loan portfolio	12,543		17.7		12,108		16.6		13,972		19.6
Total nonperforming loans	$	70,906	100.0	%	$	72,741	100.0	%	$	71,184	100.0	%

Total nonperforming loans were $70.9 million at June 30, 2015, a decreaseof $1.8 million, or 2.5%, compared to $72.7 million at March 31, 2015 and a decrease of $0.3 million,or 0.4%,compared to $71.2 million at December 31, 2014. The Corporation's nonperforming loans in the commercial loan portfolio were $58.4 million at June 30, 2015, a decrease of $2.3 million, or 3.7%, from $60.6 million at March 31, 2015 and an increase of $1.2 million,or 2.0%, from $57.2 million at December 31, 2014. Nonperforming loans in the commercial loan portfolio comprised 82% of total nonperforming loans at June 30, 2015, compared to 83% at March 31, 2015 and 80% at December 31, 2014. The Corporation's nonperforming loans in the consumer loan portfolio were $12.5 million at June 30, 2015, an increase of $0.4 million, or 3.6%, from $12.1 million at March 31, 2015 and a decrease of $1.4 million, or 10.2%, from $14.0 million at December 31, 2014.

Nonperforming Loans — Commercial Loan Portfolio

Nonperforming commercial loans were $21.5 million at June 30, 2015, a decrease of $0.9 million, or 4.2%, from $22.4 million at March 31, 2015 and an increase of $0.4 million, or 1.9%, from $21.1 million at December 31, 2014. Nonperforming commercial loans comprised 1.2% of total commercial loans at June 30, 2015, compared to 1.7% at March 31, 2015 and 1.6% at December 31, 2014. At June 30, 2015, approximately 33% of the Corporation's nonperforming commercial loans were secured by income-producing farmland, with the largest concentration of these nonperforming commercial loans with one customerrelationship totaling $5.3 million that was secured by income-producing farmland and other assets and has been in nonperforming status for over one year.At June 30, 2015, the loans in this relationship were believed to be adequately secured and the Corporation did not require a specific impairment reserve on them at that date.

Nonperforming commercial real estate loans were $36.0 million at June 30, 2015, a decrease of $1.2 million, or 3.1%, from $37.2 million at March 31, 2015 and an increase of $0.4 million, or 1.0%, from $35.7 million at December 31, 2014.Nonperforming commercial real estate loans comprised 1.6% of total commercial real estate loans at June 30, 2015, compared to 2.3% at both March 31, 2015 and December 31, 2014, respectively. Nonperforming commercial real estate loans secured by owner occupied real estate, non-owner occupied real estate and vacant land totaled $19.7 million, $8.4 million and $7.9 million, respectively, at June 30, 2015, and comprised 2.5%, 1.6% and 21.6%, respectively, of total owner occupied real estate, non-owner occupied real estate and vacant land loans included in the Corporation's originated commercial real estate loans at June 30, 2015. At June 30, 2015, the Corporation's nonperforming commercial real estate loans were comprised of a diverse mix of commercial lines of business and were also geographically disbursed throughout the Corporation's market areas.The largest concentration of nonperforming commercial real estate loans at June 30, 2015 was one customerrelationship totaling $5.4 million that was primarily secured by vacant land and has been in nonperforming status for over five years.This same customer relationship had nonperforming land development loans of $0.1 million andnonperforming residential mortgage loans of $0.4 million. At June 30, 2015, the loans in this relationship were believed to be adequately secured and the Corporation did not require a specific impairment reserve on them at that date.

Nonperforming real estate construction loans were $0.2 million at June 30, 2015, compared to $0.7 million at March 31, 2015 and $0.2 million at December 31, 2014. Nonperforming real estate construction loans comprised 0.2% of total real estate construction loans at June 30, 2015, compared to 0.7% and 0.1% at March 31, 2015 and December 31, 2014, respectively.

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Nonperforming land development loans were $0.6 million at June 30, 2015, compared to $0.3 million at both March 31, 2015 and December 31, 2014. Nonperforming land development loans comprised 5.6% of total land development loans at June 30, 2015, compared to 2.6% and 1.5% at March 31, 2015 and December 31, 2014, respectively. At June 30, 2015, nonperforming land development loans were secured primarily by residential real estate improved lots and housing units.

At June 30, 2015, the Corporation had nonperforming loans in the commercial loan portfolio of $2.3 million that were secured by real estate and were in various stages of foreclosure, compared to $2.9 million at March 31, 2015 and $2.2 million at December 31, 2014.

The following schedule presents information related to stratification of nonperforming loans in the commercial loan portfolio by dollar amount at June 30, 2015, March 31, 2015 and December 31, 2014.

	June 30, 2015			March 31, 2015			December 31, 2014
	Number of Borrowers	Amount		Number of Borrowers	Amount		Number of Borrowers	Amount
	(Dollars in thousands)
$5,000,000 or more	2	$	10,750	2	$	11,030	2	$	11,418
$2,500,000 – $4,999,999	2	6,119		1	3,584		2	6,298
$1,000,000 – $2,499,999	6	8,897		9	13,853		5	7,157
$500,000 – $999,999	19	13,519		20	13,439		22	14,892
$250,000 – $499,999	19	7,309		16	6,048		17	5,466
Under $250,000	141	11,769		166	12,679		167	11,981
Total	189	$	58,363	214	$	60,633	215	$	57,212

Nonperforming Loans — Consumer Loan Portfolio

Nonperforming residential mortgage loans were $9.8 million at June 30, 2015,an increase of $0.4 million, or 4.4%, from $9.4 million at March 31, 2015 and a decrease of $0.7 million, or 6.4%,from $10.5 million at December 31, 2014. Nonperforming residential mortgage loans comprised 0.7% of total residential mortgage loans at June 30, 2015, compared to 0.8% and 0.9% of total residential mortgage loans at March 31, 2015 and December 31, 2014, respectively. At June 30, 2015, a total of $2.0 million of nonperforming residential mortgage loans were in various stages of foreclosure, compared to $2.2 million at March 31, 2015 and $2.3 million at December 31, 2014.

Nonperforming consumer installment loans were $0.4 million at both June 30, 2015 and March 31, 2015, compared to $0.5 million at December 31, 2014. Nonperforming consumer installment loans comprised 0.04% of total consumer installment loans at June 30, 2015, compared to 0.05% at March 31, 2015 and 0.06% at December 31, 2014.

Nonperforming home equity loans were $2.4 million at June 30, 2015, an increase of $0.1 million, or 2.5%, from $2.3 million at March 31, 2015 and a decrease of $0.7 million, or 21.8%, from $3.0 million at December 31, 2014. Nonperforming home equity loans comprised 0.3% of total home equity loans at both June 30, 2015 and March 31, 2015, compared to 0.5% at December 31, 2014.

Troubled Debt Restructurings (TDRs)

The generally unfavorable economic climate that had existed in Michigan in recent years resulted in a large number of both business and consumer customers experiencing cash flow issues making it difficult to maintain their loan balances in a performing status. The Corporation determined that it was probable that certain customers who were past due on their loans, if provided a modification of their loans by reducing their monthly payments, would be able to bring their loan relationships to a performing status. The Corporation believes loan modifications will potentially result in a lower level of loan losses and loan collection costs than if the Corporation proceeded immediately through the foreclosure process with these borrowers. The loan modifications involve granting concessions to borrowers who are experiencing financial difficulty and, therefore, these loans meet the criteria to be considered TDRs.

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The Corporation's performing and nonperforming TDRs continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal balance on the loan. A TDR is reported as a nonperforming loan (nonperforming TDR) until a six-month payment history of principal and interest payments is sustained in accordance with the loan modification, at which time the Corporation moves the loan to a performing status (performing TDR). If a performing TDR becomes contractually past due more than 30 days, it is transferred to a nonperforming status. Accordingly, all of the Corporation's performing TDRs at June 30, 2015 were current or less than 30 days past due. The Corporation's nonaccrual loans that meet the definition of a TDR do not accrue interest as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans.

The following summarizes the Corporation's TDRs at June 30, 2015, March 31, 2015 and December 31, 2014:

	Performing TDRs		Nonperforming TDRs						Nonaccrual TDRs		Total
			Current		Past Due 31-90 Days		Subtotal
	(In thousands)
June 30, 2015
Commercial loan portfolio	$	28,203	$	14,050	$	497	$	14,547	$	32,001	$	74,751
Consumer loan portfolio	17,605		2,967		398		3,365		3,707		24,677
Total TDRs	$	45,808	$	17,017	$	895	$	17,912	$	35,708	$	99,428
March 31, 2015
Commercial loan portfolio	$	28,784	$	13,898	$	1,912	$	15,810	$	32,917	$	77,511
Consumer loan portfolio	17,197		2,356		334		2,690		4,426		24,313
Total TDRs	$	45,981	$	16,254	$	2,246	$	18,500	$	37,343	$	101,824
December 31, 2014
Commercial loan portfolio	$	29,179	$	14,608	$	663	$	15,271	$	32,597	$	77,047
Consumer loan portfolio	16,485		2,652		544		3,196		4,594		24,275
Total TDRs	$	45,664	$	17,260	$	1,207	$	18,467	$	37,191	$	101,322

The Corporation's performing and nonperforming TDRs in the commercial loan portfolio generally consist of loans where the Corporation has allowed borrowers to either (i) temporarily defer scheduled principal payments and make interest-only payments for a short period of time (generally six months to one year) at the stated interest rate of the original loan agreement, (ii) lower payments due to a modification of the loan's original contractual terms, or (iii) enter into moderate extensions of the loan's original contractual maturity date. These TDRs are individually evaluated for impairment. Based on this evaluation, the Corporation does not expect to incur a loss on these TDRs based on its assessment of the borrowers' expected cash flows, as the pre- and post-modification effective yields are approximately the same for these loans. Accordingly, no additional provision for loan losses has been recognized related to these TDRs. Nonperforming TDRs that have made at least six consecutive months of principal and interest payments under a formal modification agreement are classified by the Corporation as performing TDRs. If a TDR in the commercial loan portfolio becomes 90 days past due as to principal or interest, or if it becomes probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified contractual terms, the loan is transferred to nonaccrual TDR status.

Due to the borrowers' sustained repayment histories, the Corporation had performing TDRs in the commercial loan portfolio of $28.2 million, $28.8 million and $29.2 million at June 30, 2015, March 31, 2015 and December 31, 2014, respectively. The Corporation also had nonperforming TDRs in the commercial loan portfolio of $14.5 million, $15.8 million and $15.3 million at June 30, 2015, March 31, 2015 and December 31, 2014, respectively. The Corporation's nonperforming TDRs in the commercial loan portfolio are categorized as a risk grade 7 (substandard - accrual) under the Corporation's risk rating system, which is further described in Note 4 to the consolidated financial statements. The weighted average contractual interest rate of the Corporation's performing and nonperforming TDRs in the commercial loan portfolio was 5.40% at both June 30, 2015 and March 31, 2015 and 5.46% at December 31, 2014. At June 30, 2015, the Corporation had $32.0 million of nonaccrual TDRs in the commercial loan portfolio, compared to $32.9 million and $32.6 million, at March 31, 2015 and December 31, 2014, respectively.

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A summary of changes in the Corporation's performing and nonperforming TDRs in the commercial loan portfolio for the three and six months ended June 30, 2015 follows:

	Three Months Ended June 30, 2015									Six Months Ended June 30, 2015
	Performing			Nonperforming			Total			Performing			Nonperforming			Total
	(In thousands)
Balance at beginning of period	$	28,784		$	15,810		$	44,594		$	29,179		$	15,271		$	44,450
Additions for modifications	—			449			449			—			2,693			2,693
Transfers to performing TDR status	1,059			(1,059		)	—			2,599			(2,599		)	—
Transfers to nonperforming TDR status	(281		)	281			—			(1,641		)	1,641			—
Transfers from nonaccrual status	—			—			—			—			243			243
Transfers to nonaccrual status	—			(678		)	(678		)	—			(1,546		)	(1,546		)
Principal payments and pay-offs	(1,359		)	(256		)	(1,615		)	(1,934		)	(1,156		)	(3,090		)
Balance at end of period	$	28,203		$	14,547		$	42,750		$	28,203		$	14,547		$	42,750

The Corporation's TDRs in the consumer loan portfolio generally consist of loans where the Corporation has reduced a borrower's monthly payments by decreasing the interest rate charged on the loan (generally to a range of 3% to 5%) for a specified period of time (generally 24 months). Once the borrowers have made at least six consecutive months of principal and interest payments under a formal modification agreement, they are classified as performing TDRs. These loans are moved to nonaccrual TDR status if the loan becomes 90 days past due as to principal or interest, or sooner if conditions warrant.

The Corporation had performing TDRs in the consumer loan portfolio of $17.6 million, $17.2 million and $16.5 million at June 30, 2015, March 31, 2015 and December 31, 2014, respectively. The Corporation also had nonperforming TDRs in the consumer loan portfolio of $3.4 million, $2.7 million and $3.2 million at June 30, 2015, March 31, 2015 and December 31, 2014, respectively. The weighted average contractual interest rate on the Corporation's performing and nonperforming TDRs in the consumer loan portfolio was 4.70% at June 30, 2015, compared to 4.77% at March 31, 2015 and 4.66% at December 31, 2014. At June 30, 2015, the Corporation had $3.7 million of nonaccrual TDRs in the consumer loan portfolio, compared to $4.4 million and $4.6 million, at March 31, 2015 and December 31, 2014, respectively.

The Corporation's cumulative redefault rate as of June 30, 2015 on its performing and nonperforming TDRs, which represents the percentage of these TDRs that transferred to nonaccrual status since the Corporation began such modifications in 2009, was 19% for performing and nonperforming TDRs in the commercial loan portfolio and 19% for performing and nonperforming TDRs in the consumer loan portfolio. The Corporation's cumulative redefault rate does not include loans that have been modified while in nonaccrual status that remain in nonaccrual status as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans.

Other Real Estate and Repossessed Assets

Other real estate and repossessed assets are components of nonperforming assets. These include other real estate (ORE), comprised of residential and commercial real estate and land development properties acquired through foreclosure or by acceptance of a deed in lieu of foreclosure, and repossessed assets, comprised of other personal and commercial assets.ORE totaled $14.0 million at June 30, 2015, a decreaseof $0.4 million, or 3.0%, from $14.5 million at March 31, 2015 and an increase of $0.1 million, or 0.6%,from $14.0 million atDecember 31, 2014. The increase in other real estate and repossessed assets during the twelve-month period ended June 30, 2015 was primarily attributable to $3.7 million of other real estate acquired in the Northwestern transaction. Repossessed assets totaled $0.2 million at June 30, 2015, $0.3 million at March 31, 2015 and $0.3 million at December 31, 2014.

The following schedule provides the composition of ORE at June 30, 2015, March 31, 2015 and December 31, 2014:

	June 30, 2015		March 31, 2015		December 31, 2014
	(In thousands)
Composition of ORE:
Vacant land	$	4,306	$	4,859	$	5,285
Commercial real estate properties	7,132		6,921		6,419
Residential real estate properties	2,553		2,702		2,219
Residential land development properties	50		—		30
Total ORE	$	14,041	$	14,482	$	13,953

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The following schedule summarizes ORE activity during the three and six months ended June 30, 2015 and 2014.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Balance at beginning of period	$	14,482		$	9,714		$	13,953		$	9,518
Additions attributable to acquisitions	440			—			440			—
Other additions	1,606			1,935			4,686			3,396
Write-downs to fair value	(298		)	(139		)	(564		)	(255		)
Dispositions	(2,189		)	(1,384		)	(4,474		)	(2,533		)
Balance at end of period	$	14,041		$	10,126		$	14,041		$	10,126

The Corporation's ORE is carried at the lower of cost or fair value less estimated cost to sell.The historically large inventory of real estate properties for sale across the State of Michigan has resulted in an increase in the Corporation's carrying time and cost of holding ORE.Consequently, the Corporation had $5.0 million in ORE at June 30, 2015 that had been held in excess of one year, of which$3.1 million had been held in excess of three years.Because the redemption period on foreclosures is relatively long in Michigan (six months to one year) and the Corporation had $4.3 million of nonperforming loans that were in the process of foreclosure at June 30, 2015, it is anticipated that the level of the Corporation's ORE will remain at historically elevated levels.

All of the Corporation's ORE properties have been written down to fair value through a charge-off against the allowance for loan losses at the time the loan was transferred to ORE or through a subsequent write-down, recorded as an operating expense, to recognize a further market value decline of the property after the initial transfer date. Accordingly, at June 30, 2015, the carrying value of ORE of $14.0 million was reflective of $19.4 million in charge-offs, write-downs and acquisition-related fair value adjustments and represented 42% of the contractual loan balance remaining at the time these loans were classified as nonperforming.

During the six months endedJune 30, 2015, the Corporation sold 170 ORE properties for net proceeds of $6.6 million. On an average basis, the net proceeds from these sales represented 148% of the carrying value of the property at the time of sale, with the net proceeds representing 66% of the remaining contractual loan balance at the time these loans were classified as nonperforming.

Impaired Loans

A loan is considered impaired when management determines it is probable that all of the principal and interest due will not be paid according to the original contractual terms of the loan agreement. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. A portion of the allowance for loan losses is specifically allocated to impaired loans. The process of measuring impaired loans and the allocation of the allowance for loan losses requires judgment and estimation. The eventual outcome may differ from amounts estimated.

Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with their original contractual terms. Impaired loans totaled $130.9 million at June 30, 2015, an increase of $1.7 million compared to $129.2 million at March 31, 2015 and a decrease of $3.8 million compared to $134.7 million at December 31, 2014.

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A summary of impaired loans at June 30, 2015, March 31, 2015 and December 31, 2014 follows:

	June 30, 2015		March 31, 2015		December 31, 2014
	(In thousands)
Impaired loans - commercial loan portfolio:
Originated commercial loan portfolio:
Nonaccrual loans	$	43,049	$	44,623	$	41,771
Nonperforming TDRs	14,547		15,810		15,271
Performing TDRs	28,203		28,784		29,179
Subtotal	85,799		89,217		86,221
Acquired commercial loan portfolio	15,934		11,231		19,892
Total impaired loans - commercial loan portfolio	101,733		100,448		106,113
Impaired loans - consumer loan portfolio:
Nonaccrual loans	8,166		8,817		8,873
Nonperforming TDRs	3,365		2,690		3,196
Performing TDRs	17,605		17,197		16,485
Total impaired loans - consumer loan portfolio	29,136		28,704		28,554
Total impaired loans	$	130,869	$	129,152	$	134,667

The following schedule summarizes impaired loans to commercial borrowers and the related valuation allowance at June 30, 2015, March 31, 2015 and December 31, 2014 and partial loan charge-offs (confirmed losses) taken on these impaired loans:

	Amount		Valuation Allowance		Confirmed Losses		Cumulative Inherent Loss Percentage
	(Dollars in thousands)
June 30, 2015
Impaired loans – originated commercial loan portfolio:
With valuation allowance and no charge-offs	$	6,658	$	1,261	$	—	19	%
With valuation allowance and charge-offs	175		60		252		73
With charge-offs and no valuation allowance	17,684		—		14,928		46
Without valuation allowance or charge-offs	61,282		—		—		—
Total	85,799		$	1,321	$	15,180	16	%
Impaired acquired loans	15,934
Total impaired loans to commercial borrowers	$	101,733
March 31, 2015
Impaired loans – originated commercial loan portfolio:
With valuation allowance and no charge-offs	$	4,948	$	1,541	$	—	31	%
With valuation allowance and charge-offs	265		74		275		65
With charge-offs and no valuation allowance	18,517		—		14,560		44
Without valuation allowance or charge-offs	65,487		—		—		—
Total	89,217		$	1,615	$	14,835	16	%
Impaired acquired loans	11,231
Total impaired loans to commercial borrowers	$	100,448
December 31, 2014
Impaired loans – originated commercial loan portfolio:
With valuation allowance and no charge-offs	$	2,700	$	860	$	—	32	%
With valuation allowance and charge-offs	853		143		414		44
With charge-offs and no valuation allowance	17,770		—		14,974		46
Without valuation allowance or charge-offs	64,898		—		—		—
Total	86,221		$	1,003	$	15,388	16	%
Impaired acquired loans	19,892
Total impaired loans to commercial borrowers	$	106,113

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After analyzing the various components of the customer relationships and evaluating the underlying collateral of impaired loans, the Corporation determined that impaired loans of the commercial loan portfoliototaling $6.8 million at June 30, 2015 required a specific allocation of the allowance for loan losses (valuation allowance) of $1.3 million, compared to $5.2 million of impaired loans in the commercial loan portfolio with a valuation allowance of $1.6 million at March 31, 2015 and $3.6 million of impaired loans in the commercial loan portfolio with a valuation allowance of $1.0 million at December 31, 2014. Confirmed losses represent partial loan charge-offs on impaired loans due primarily to the receipt of a recent third-party property appraisal indicating the value of the collateral securing the loan was below the loan balance and management determined that full collection of the loan balance is not likely. The Corporation's performing and nonperforming TDRs in the commercial loan portfolio did not require a valuation allowance as the Corporation expected to collect the full principal and interest owed on each of these loans in accordance with their modified terms.

The Corporation generally does not recognize a valuation allowance for impaired loans in the consumer loan portfolio as these loans are comprised of smaller-balance homogeneous loans that are collectively evaluated for impairment. However, the Corporation had avaluation allowance attributable to TDRs in the consumer loan portfolio of $0.3 million at June 30, 2015, March 31, 2015 and December 31, 2014, related to the reduction in the present value of expected future cash flows for these loans discounted at their original effective interest rates.

Impaired loans included acquired loans totaling $15.9 million, $11.2 million and $19.9 million at June 30, 2015, March 31, 2015 and December 31, 2014, respectively, that were not performing in accordance with the original contractual terms of the loans. These loans did not require a valuation allowance as they are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loan pools. These loans are not included in the Corporation's nonperforming loans.

Allowance for Loan Losses

The allowance for loan losses (allowance) provides for probable losses in the originated loan portfolio that have been identified with specific customer relationships and for probable losses believed to be inherent in the remainder of the originated loan portfolio but that have not been specifically identified. The allowance is comprised of specific valuation allowances (assessed for originated loans that have known credit weaknesses), pooled allowances based on assigned risk ratings and historical loan loss experience for each loan type, and an unallocated allowance for imprecision due to the subjective nature of the specific and pooled allowance methodology. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is adequate to absorb probable losses inherent in the loan portfolio. This evaluation process is inherently subjective as it requires estimates that may be susceptible to significant change and has the potential to affect net income materially. The Corporation's methodology for measuring the adequacy of the allowance is comprised of several key elements, which include a review of the loan portfolio, both individually and by category, and consideration of changes in the mix and volume of the loan portfolio, actual loan loss experience, review of collateral values, the financial condition of the borrowers, industry and geographical exposures within the portfolio, economic conditions and employment levels of the Corporation's local markets and other factors affecting business sectors. Management believes that the allowance is currently maintained at an appropriate level, considering the inherent risk in the loan portfolio. Future significant adjustments to the allowance may be necessary due to changes in economic conditions, delinquencies or the level of loan losses incurred.

The following schedule summarizes information related to the Corporation's allowance for loan losses:

	June 30, 2015			March 31, 2015			December 31, 2014
	(Dollars in thousands)
Allowance for loan losses:
Originated loans	$	74,941		$	75,256		$	75,183
Acquired loans	—			—			500
Total	$	74,941		$	75,256		$	75,683
Nonperforming loans	$	70,906		$	72,741		$	71,184
Allowance for originated loans as a percent of:
Total originated loans	1.40		%	1.49		%	1.51		%
Nonperforming loans	106		%	103		%	106		%
Nonperforming loans, less impaired originated loans for which the expected loss has been charged-off	141		%	139		%	141		%

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The following schedule summarizes activity related to the Corporation's allowance for loan losses:

	Three Months Ended									Six Months Ended
	June 30, 2015			March 31, 2015			December 31, 2014			June 30, 2015			June 30, 2014
	(Dollars in thousands)
Allowance for loan losses - beginning of period	$	75,256		$	75,683		$	77,006		$	75,683		$	79,072
Provision for loan losses	1,500			1,500			1,500			3,000			3,100
Loan charge-offs:
Commercial	(188		)	(631		)	(947		)	(819		)	(1,325		)
Commercial real estate	(678		)	(782		)	(687		)	(1,460		)	(1,530		)
Real estate construction	(49		)	(80		)	—			(129		)	(100		)
Land development	—			(11		)	(9		)	(11		)	(68		)
Residential mortgage	(790		)	(539		)	(405		)	(1,329		)	(1,359		)
Consumer installment	(971		)	(1,003		)	(1,154		)	(1,974		)	(2,050		)
Home equity	(48		)	(97		)	(558		)	(145		)	(415		)
Total loan charge-offs	(2,724		)	(3,143		)	(3,760		)	(5,867		)	(6,847		)
Recoveries of loans previously charged off:
Commercial	152			207			15			359			523
Commercial real estate	97			367			67			464			506
Real estate construction	—			—			—			—			—
Land development	—			—			372			—			337
Residential mortgage	129			47			128			176			314
Consumer installment	381			354			341			735			637
Home equity	150			241			14			391			151
Total loan recoveries	909			1,216			937			2,125			2,468
Net loan charge-offs	(1,815		)	(1,927		)	(2,823		)	(3,742		)	(4,379		)
Allowance for loan losses - end of period	$	74,941		$	75,256		$	75,683		$	74,941		$	77,793
Net loan charge-offs as a percent of average loans (annualized)	0.12		%	0.14		%	0.21		%	0.13		%	0.18		%

The allowance of the acquired loan portfolio was not carried over on the date of acquisition. The acquired loans were recorded at their estimated fair values at the date of acquisition, with the estimated fair values including a component for expected credit losses. Acquired loans are subsequently evaluated for further credit deterioration in loan pools, which consist of loans with similar credit risk characteristics. If an acquired loan pool experiences a decrease in expected cash flows, as compared to those expected at the acquisition date, a portion of the allowance is allocated to acquired loans. There was no allowance needed for the acquired loan portfolio at June 30, 2015 and March 31, 2015. The allowance for loan losses on the acquired loan portfolio was $0.5 million at December 31, 2014 and June 30, 2014.

Deposits

Total deposits were $7.29 billion at June 30, 2015, an increase of $973 million, or 15%, from total deposits of $6.32 billion at March 31, 2015, an increase of $1.21 billion, or 20%, from total deposits of $6.08 billion at December 31, 2014 and an increase of $2.20 billion, or 43%, from total deposits of $5.09 billion at June 30, 2014. The increase in total deposits during the second quarter of 2015 was attributable to the Lake Michigan and Monarch transactions. The increase in total deposits for the twelve-month period ended June 30, 2015 was attributable to a combination of the Lake Michigan, Monarch and Northwestern transactions and organic deposit growth. The organic deposit growth included increases in interest- and noninterest-bearing demand deposit and savings accounts that were partially offset by a decline in certificate of deposit accounts. Interest- and noninterest-bearing demand deposit and savings accounts were $5.55 billion at June 30, 2015, compared to $3.81 billion at June 30, 2014. In comparison, certificate of deposit accounts were $1.75 billion at June 30, 2015, compared to $1.28 billion at June 30, 2014.

It is the Corporation's strategy to develop customer relationships that will drive core deposit growth and stability. The Corporation's competitive position within many of its market areas has historically limited its 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 the Corporation's markets during the twelve months ended June 30, 2015, the Corporation's efforts to expand its deposit

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relationships with existing customers, the Corporation's financial strength and a general trend in customers holding more liquid assets have resulted in the Corporation continuing to experience increases in customer deposits.

At June 30, 2015, the Corporation's time deposits, which consist of certificates of deposit, totaled $1.75 billion, of which $651 million have stated maturities during the remainder of 2015. The Corporation expects the majority of these maturing time deposits to be renewed by customers. The following schedule summarizes the scheduled maturities of the Corporation's time deposits as of June 30, 2015:

Maturity Schedule	Amount		Weighted Average Interest Rate
	(Dollars in thousands)
2015 maturities:
Third quarter	$	415,061	0.57	%
Fourth quarter	236,040		0.68
2015 remaining maturities	651,101		0.61
2016 maturities	497,819		0.73
2017 maturities	323,161		1.08
2018 maturities	110,685		1.21
2019 maturities	85,351		1.46
2020 maturities and beyond	77,098		1.72
Total time deposits	$	1,745,215	0.86	%

Included in the above maturity schedule are broker deposits that were acquired as part of the Lake Michigan transaction totaling $269 million at June 30, 2015 that mature as follows: $64 million in 2015; $61 million in 2016; $68 million in 2017; $40 million in 2018; $24 million in 2019; and $12 million in 2020 and beyond.

Borrowed Funds

Borrowed funds consist of short-term borrowings and other borrowings. Short-term borrowings, which generally have an original term to maturity of 30 days or less, consist of securities sold under agreements to repurchase with customers, short-term Federal Home Loan Bank (FHLB) advances, and federal funds purchased. Other borrowings consist of securities sold under agreements to repurchase with an unaffiliated third-party financial institution, long-term FHLB advances, a non-revolving line-of-credit, and subordinated debentures.

Short-term Borrowings

Short-term borrowings were $532.3 million, $372.2 million, $389.5 million, and $305.4 million at June 30, 2015, March 31, 2015, December 31, 2014 and June 30, 2014, respectively. The increase in short-term borrowings at June 30, 2015 was primarily attributable to the Corporation utilizing short-term FHLB advances to fund short-term liquidity needs primarily resulting from loan growth in the second quarter of 2015.

A summary of the composition of the Corporation's short-term borrowings follows:

	June 30, 2015		March 31, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Short-term borrowings:
Securities sold under agreements to repurchase with customers	$	305,291	$	372,236	$	304,467	$	293,422
Short-term FHLB advances	205,000		—		60,000		—
Federal funds purchased	22,000		—		25,000		12,000
Total short-term borrowings	$	532,291	$	372,236	$	389,467	$	305,422

Securities sold under agreements to repurchase with customers represent funds deposited by customers that are collateralized by investment securities owned by Chemical Bank, as these deposits are not covered by Federal Deposit Insurance Corporation (FDIC) insurance. These funds have been a stable source of liquidity for Chemical Bank, much like its core deposit base, and are generally only provided to customers that have an established banking relationship with Chemical Bank. The Corporation's securities sold under agreements to repurchase do not qualify as sales for accounting purposes. The decrease in securities sold

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under agreements to repurchase with customers during the second quarter of 2015 was largely due to $50 million of temporary funds received from one customer of Chemical Bank at the end of the first quarter of 2015 that were withdrawn during the second quarter.

FHLB advances are borrowings from the Federal Home Loan Bank of Indianapolis that are generally used to fund loans and are secured by both a blanket security agreement of residential mortgage first lien loans with an aggregate book value equal to at least 140% of the advances and FHLB capital stock owned by Chemical Bank. The carrying value of residential mortgage first lien loans eligible as collateral under the blanket security agreement was $1.24 billion at June 30, 2015. The Corporation relies on short-term FHLB advances to cover short-term liquidity needs. The increase in short-term FHLB advances during the second quarter of 2015 primarily resulted from loan growth during the quarter.

Federal funds purchased represent unsecured borrowings from nonaffiliated third-party financial institutions, generally on an overnight basis, to cover short-term liquidity needs.

Other Borrowings

Other borrowings were $148.5 million at June 30, 2015. The Corporation had no other borrowings at March 31, 2015, December 31, 2014 and June 30, 2014. The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch.

A summary of the composition of the Corporation's other borrowings at June 30, 2015 follows (in thousands):

Other borrowings:
Long-term FHLB advances	$	81,469
Securities sold under agreements to repurchase	23,649
Non-revolving line-of-credit	25,000
Subordinated debentures	18,372
Total other borrowings	$	148,490

The Corporation acquired long-term FHLB advances as a result of the Lake Michigan and Monarch transactions totaling $81.5 million as of the respective acquisition dates. These long-term FHLB advances had a weighted-average interest rate of 1.33% and an average maturity date of 2.5 years as of June 30, 2015.

Securities sold under agreements to repurchase with an unaffiliated third-party financial institution represent financing arrangements that are secured by available-for-sale investment securities. These borrowings were obtained as part of the Lake Michigan acquisition. The Corporation intends to pay off these borrowings as they mature, with remaining contractual maturities totaling $3.2 million in 2015, $8.3 million in 2016, and $12.1 million in 2017.

The Corporation entered into a $25 million secured non-revolving line-of-credit in May 2015 with an unaffiliated third-party financial institution. The Corporation drew on the entire amount of the line-of-credit in order to partially fund the cash portion of the purchase price consideration for the Lake Michigan transaction. This line-of-credit bears a variable rate of interest which is based on the one-, two- or three-month LIBOR, as periodically selected by the Corporation, plus a fixed stated rate, and matures in May 2016.

Lake Michigan had three entities, Lake Michigan Financial Capital Trust I (LMFCTI), Lake Michigan Financial Capital Trust II (LMFCTII) and Lake Michigan Financial Capital Trust III (LMFCTIII) which existed solely to issue capital securities in the form of cumulative preferred securities. The cumulative preferred securities issued by these trust entities were guaranteed by Lake Michigan and therefore considered subordinated debt of Lake Michigan. As a result of the Lake Michigan transaction, the subordinated debt resulting from LMFCTI and LMFCTII became debt obligations (subordinated debentures) of the Corporation in the amount of $18.6 million. LMFCTIII, which held a $10.3 million trust preferred security that was 100% due to the Corporation, was settled at par and the entity dissolved in conjunction with the acquisition of Lake Michigan on May 31, 2015. The subordinated debentures pay interest based on a floating rate tied to the three-month LIBOR plus an index. LMFCTI has a stated maturity date of October 1, 2032 and LMFCTII has a stated maturity date of May 1, 2034, although the Corporation has the ability to pay these debt obligations earlier upon notification to the respective trust's trustee of its intent to do so. These subordinated debentures qualify for regulatory capital for purposes of computing the tier 1 and total risk-based capital ratios. The Corporation intends to pay off these debt obligations earlier than their stated maturity.

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Credit-Related Commitments

The Corporation has credit-related commitments that may impact its liquidity. The following schedule summarizes the Corporation's credit-related commitments and expected expiration dates by period as of June 30, 2015. Because many of these commitments historically have expired without being drawn upon, the total amount of these commitments does not necessarily represent future liquidity requirements of the Corporation.

	Less than 1 year		1-3 years		3-5 years		More than 5 years		Total
	(In thousands)
Unused commitments to extend credit:
Loans to commercial borrowers	$	847,215	$	166,930	$	56,137	$	97,763	$	1,168,045
Loans to consumer borrowers	153,651		59,029		126,109		15,949		354,738
Total unused commitments to extend credit	1,000,866		225,959		182,246		113,712		1,522,783
Undisbursed loan commitments	521,021		—		—		—		521,021
Standby letters of credit	43,377		1,866		230		1,000		46,473
Total credit-related commitments	$	1,565,264	$	227,825	$	182,476	$	114,712	$	2,090,277

Undisbursed loan commitments at June 30, 2015 included $33 million of residential mortgage loans that were expected to be sold in the secondary market.

Capital

Total shareholders' equity was $980.8 million at June 30, 2015, compared to $810.5 million at March 31, 2015, $797.1 million at December 31, 2014 and $793.5 million at June 30, 2014. The increase in shareholders' equity at June 30, 2015 was primarily attributable to the Corporation issuing common stock valued at $133 million and $27 million for the acquisitions of Lake Michigan and Monarch, respectively. Total shareholders' equity as a percentage of total assets was 10.9% at June 30, 2015, compared to 10.7% at March 31, 2015, 10.9% at December 31, 2014 and 12.7% at June 30, 2014. The Corporation's tangible equity, which is defined as total shareholders' equity less goodwill and other acquired intangible assets, totaled $681.0 million, $615.5 million, $601.3 million and $668.9 million at June 30, 2015, March 31, 2015, December 31, 2014 and June 30, 2014, respectively. The Corporation's tangible equity to assets ratio was 7.8% at June 30, 2015, compared to 8.4% at both March 31, 2015 and December 31, 2014 and 11.0% at June 30, 2014.

Shelf Registration

On June 12, 2014, the Corporation filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so.

Basel III

In July 2013, the Reserve Board and FDIC approved final rules implementing the Basel Committee on Banking Supervision's (BCBS) capital guidelines for U.S. banks. Beginning January 1, 2015,the final rules include a new minimum common equity Tier 1 capital to risk-weighted assets (CET) ratio of 4.5%, in addition to raising the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requiring a minimum leverage ratio of 4.0%. The final rules also establish a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four-year period beginning January 1, 2016.

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The Corporation and its subsidiary banks continue to maintain strong capital positions, which significantly exceeded the minimum capital adequacy levels prescribed by the Board of Governors of the Federal Reserve System (Reserve Board) at June 30, 2015, as shown in the following schedule:

	Leverage		CET Risk-Based Capital		Tier 1 Risk-Based Capital		Total Risk-Based Capital
Actual Capital Ratios:
Chemical Financial Corporation	9.4	%	10.4	%	10.6	%	11.7	%
Chemical Bank	8.5		10.9		10.9		12.1
The Bank of Holland	9.4		9.5		9.5		9.5
The Bank of Northern Michigan	9.1		10.1		10.1		10.1
Minimum required for capital adequacy purposes	4.0		4.5		6.0		8.0
Minimum required for “well-capitalized” capital adequacy purposes	5.0		6.5		8.0		10.0

The Corporation, Chemical Bank and The Bank of Northern Michigan all exceeded the minimum levels prescribed by the Reserve Board to be categorized as well-capitalized at June 30, 2015. The Bank of Holland also exceeded the minimum levels prescribed by the Reserve Board to be categorized as well-capitalized at June 30, 2015 for all regulatory ratios with the exception of the total risk-based capital ratio, in which it was categorized as adequately capitalized at that date. This ratio was slightly below the well-capitalized category for The Bank of Holland due to push-down accounting of purchase accounting adjustments resulting from the acquisition by the Corporation. As a result, The Bank of Holland was categorized as adequately capitalized at June 30, 2015. Following the planned consolidation of The Bank of Holland and The Bank of Northern Michigan with and into Chemical Bank during the fourth quarter of 2015, Chemical Bank's capital ratios are expected to exceed the minimum levels prescribed by the Reserve Board to be well-capitalized.

Results of Operations

Net Interest Income

Net interest income is the difference between interest income on earning assets, such as loans, investment and non-marketable equity securities and interest-bearing deposits with the Federal Reserve Bank (FRB) and other banks, and interest expense on liabilities, such as deposits and borrowings. Net interest income, on a fully taxable equivalent (FTE) basis, is the difference between interest income and interest expense adjusted for the tax benefit received on tax-exempt commercial loans and investment securities. Net interest margin is calculated by dividing net interest income (FTE) by average interest-earning assets, annualized as applicable. Net interest spread is the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. Because noninterest-bearing sources of funds, or free funds (principally demand deposits and shareholders' equity), also support earning assets, the net interest margin exceeds the net interest spread.

Net interest income (FTE) was $67.5 million in the second quarter of 2015, compared to $52.9 million in the second quarter of 2014 and $60.8 million in the first quarter of 2015. The presentation of net interest income on an FTE basis is not in accordance with GAAP but is customary in the banking industry. This non-GAAP measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities. The adjustments to determine net interest income (FTE) were $1.8 million, $1.4 million and $1.6 million for each of the three-month periods ended June 30, 2015, June 30, 2014 and March 31, 2015, respectively. These adjustments were computed using a 35% federal income tax rate.

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Average Balances, Fully Tax Equivalent (FTE) Interest and Effective Yields and Rates*

The following schedule presents the average daily balances of the Corporation's major categories of assets and liabilities, interest income and expense on an FTE basis, average interest rates earned and paid on the assets and liabilities, net interest income (FTE), net interest spread and net interest margin for the three months ended June 30, 2015, June 30, 2014, and March 31, 2015.

	Three Months Ended
	June 30, 2015						June 30, 2014						March 31, 2015
	Average Balance		Interest (FTE)		Effective Yield/ Rate*		Average Balance		Interest (FTE)		Effective Yield/ Rate*		Average Balance		Interest (FTE)		Effective Yield/ Rate*
ASSETS	(Dollars in Thousands)
Interest-Earning Assets:
Loans**	$	6,272,814	$	65,227	4.17	%	$	4,830,341	$	51,284	4.26	%	$	5,706,053	$	58,660	4.16	%
Taxable investment securities	698,521		2,202		1.26		651,685		2,248		1.38		734,890		2,307		1.26
Tax-exempt investment securities	396,295		3,361		3.39		253,468		2,576		4.07		331,878		2,932		3.53
Other interest-earning assets	34,269		551		6.45		25,572		411		6.45		29,438		198		2.73
Interest-bearing deposits with the FRB and other banks	132,834		128		0.39		146,483		99		0.27		118,475		122		0.42
Total interest-earning assets	7,534,733		71,469		3.80		5,907,549		56,618		3.84		6,920,734		64,219		3.75
Less: Allowance for loan losses	75,079						78,626						75,880
Other Assets:
Cash and cash due from banks	148,950						116,390						138,308
Premises and equipment	103,907						74,353						97,105
Interest receivable and other assets	404,627						233,908						320,991
Total Assets	$	8,117,138					$	6,253,574					$	7,401,258
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,539,348	$	291	0.08	%	$	1,149,063	$	273	0.10	%	$	1,506,953	$	324	0.09	%
Savings deposits	1,951,477		360		0.07		1,416,961		315		0.09		1,777,344		370		0.08
Time deposits	1,490,753		2,979		0.80		1,336,551		3,038		0.91		1,332,698		2,658		0.81
Short-term borrowings	398,197		101		0.10		347,583		94		0.11		342,128		98		0.12
Other borrowings	62,901		213		1.36		—		—		—		—		—		—
Total interest-bearing liabilities	5,442,676		3,944		0.29		4,250,158		3,720		0.35		4,959,123		3,450		0.28
Noninterest-bearing deposits	1,727,850		—		—		1,249,006		—		—		1,587,100		—		—
Total deposits and borrowed funds	7,170,526		3,944		0.22		5,499,164		3,720		0.27		6,546,223		3,450		0.21
Interest payable and other liabilities	61,749						40,055						53,597
Shareholders’ equity	884,863						714,355						801,438
Total Liabilities and Shareholders’ Equity	$	8,117,138					$	6,253,574					$	7,401,258
Net Interest Spread (average yield earned minus average rate paid)					3.51	%					3.49	%					3.47	%
Net Interest Income (FTE)			$	67,525					$	52,898					$	60,769
Net Interest Margin (Net Interest Income (FTE) divided by total average interest-earning assets)					3.59	%					3.59	%					3.55	%
* Fully taxable equivalent (FTE) basis using a federal income tax rate of 35%.
** Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. Also, tax equivalent interest includes net loan fees.

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The following schedule presents the average daily balances of the Corporation's major categories of assets and liabilities, interest income and expense on an FTE basis, average interest rates earned and paid on the assets and liabilities, net interest income (FTE), net interest spread and net interest margin for the six months endedJune 30, 2015 and June 30, 2014.

	Six Months Ended
	June 30, 2015						June 30, 2014
	Average Balance		Interest (FTE)		Effective Yield/ Rate*		Average Balance		Interest (FTE)		Effective Yield/ Rate*
ASSETS	(Dollars in Thousands)
Interest-Earning Assets:
Loans**	$	5,990,999	$	123,887	4.16	%	$	4,763,748	$	101,028	4.27	%
Taxable investment securities	716,606		4,509		1.26		671,662		4,631		1.38
Tax-exempt investment securities	364,264		6,293		3.46		255,310		5,191		4.07
Other interest-earning assets	31,867		749		4.74		25,572		649		5.12
Interest-bearing deposits with the FRB and other banks	125,694		250		0.40		167,827		224		0.27
Total interest-earning assets	7,229,430		135,688		3.78		5,884,119		111,723		3.82
Less: Allowance for loan losses	75,477						78,972
Other Assets:
Cash and cash due from banks	143,658						118,269
Premises and equipment	100,525						74,557
Interest receivable and other assets	363,040						234,217
Total Assets	$	7,761,176					$	6,232,190
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,523,240	$	615	0.08	%	$	1,180,623	$	560	0.10	%
Savings deposits	1,864,891		730		0.08		1,416,045		630		0.09
Time deposits	1,412,162		5,637		0.80		1,328,878		6,181		0.94
Short-term borrowings	370,317		199		0.11		337,798		215		0.13
Other borrowings	31,624		213		1.36		—		—		—
Total interest-bearing liabilities	5,202,234		7,394		0.29		4,263,344		7,586		0.36
Noninterest-bearing deposits	1,657,864		—		—		1,221,408		—		—
Total deposits and borrowed funds	6,860,098		7,394		0.22		5,484,752		7,586		0.28
Interest payable and other liabilities	57,697						39,287
Shareholders’ equity	843,381						708,151
Total Liabilities and Shareholders’ Equity	$	7,761,176					$	6,232,190
Net Interest Spread (average yield earned minus average rate paid)					3.49	%					3.46	%
Net Interest Income (FTE)			$	128,294					$	104,137
Net Interest Margin (Net Interest Income (FTE) divided by total average interest-earning assets)					3.57	%					3.56	%
* Fully taxable equivalent (FTE) basis using a federal income tax rate of 35%.
** Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. Also, tax equivalent interest includes net loan fees.

Net interest income (FTE) of $67.5 million in the second quarter of 2015 was $14.6 million, or 28%, higher than net interest income (FTE) of $52.9 million in the second quarter of 2014, with the increase primarily attributable to an increase of $1.44 billion in the average volume of loans outstanding, including the impact of the $1.58 billion of loans acquired in the Corporation's three acquisitions over the last nine months, and the favorable impact of time deposits repricing lower during the twelve months ended June 30, 2015, both of which were partially offset by the unfavorable impact of loans and investment securities repricing during the twelve months ended June 30, 2015. The net interest margin was 3.59% in the second quarter of 2015, the same as the second quarter of 2014. The average yield on interest-earning assets decreased slightly to 3.80% in the second quarter of 2015, from 3.84% in the second quarter of 2014, with the decrease primarily attributable to the repricing of loans at lower interest rates. The average yield on loans decreased 9 basis points to 4.17% in the second quarter of 2015 from 4.26% in the second quarter of 2014. The average cost of interest-bearing liabilities decreased to 0.29% in the second quarter of 2015, from 0.35% in the second quarter of 2014, with the decrease primarily attributable to the repricing of time deposits at lower interest rates as they matured and were renewed in the continued low interest rate environment.

78

Net interest income (FTE) of $67.5 million in the second quarter of 2015 was $6.8 million, or 11%, higher than net interest income (FTE) of $60.8 million in the first quarter of 2015, with the increase primarily attributable to an increase of $567 million in the average volume of loans outstanding. The net interest margin was 3.59% in the second quarter of 2015, compared to 3.55% in the first quarter of 2015. The average yield on interest-earning assets increased 5 basis points to 3.80% in the second quarter of 2015, from 3.75% in the first quarter of 2015. The average cost of interest-bearing liabilities increased slightly to 0.29% in the second quarter of 2015 from 0.28% in the first quarter of 2015. The increases in the yield on interest-earning assets and the cost of interest-bearing liabilities was largely attributable to the Lake Michigan transaction. The yield on Lake Michigan's loan portfolio was higher than the Corporation's due to a higher concentration of commercial real estate loans. However, a large percentage of Lake Michigan's interest-bearing liabilities came from wholesale funding sources, which generally are at higher rates than core deposits.

Net interest income (FTE) of $128.3 million in the six months ended June 30, 2015 was $24.2 million, or 23%, higher than net interest income (FTE) of $104.1 million in the six months ended June 30, 2014, with the increase primarily attributable to an increase of $1.23 billion in the average volume of loans outstanding, including the impact of the $1.58 billion of loans acquired in the Corporation's three acquisitions, and the favorable impact of time deposits repricing lower during the twelve months ended June 30, 2015, both of which were partially offset by the unfavorable impact of loans and investment securities repricing during the twelve months ended June 30, 2015. The net interest margin was 3.57% in the six months ended June 30, 2015, compared to 3.56% in the six months ended June 30, 2014.

Changes in the Corporation's net interest income are influenced by a variety of factors, including changes in the level and mix of interest-earning assets and interest-bearing liabilities, current and prior years' interest rate changes, the level and direction of interest rates, the difference between short-term and long-term interest rates (the steepness of the yield curve) and the general strength of the economies in the Corporation's markets. Risk management plays an important role in the Corporation's level of net interest income. The ineffective management of credit risk, and more significantly interest rate risk, can adversely impact the Corporation's net interest income. Management monitors the Corporation's consolidated statement of financial position to reduce the potential adverse impact on net interest income caused by significant changes in interest rates. The Corporation's policies in this regard are further discussed under the subheading “Market Risk.”

The Reserve Board influences the general market rates of interest, including the deposit and loan rates offered by many financial institutions. The prime interest rate, which is the rate offered on loans to borrowers with strong credit, was 3.25% at the end of 2008 and has remained at this historically low rate through June 30, 2015. The prime interest rate has historically been 300 basis points higher than the federal funds rate. The majority of the Corporation's variable interest rate loans in the commercial loan portfolio are tied to the prime rate.

The Corporation is primarily funded by core deposits, which is a lower-cost funding base than wholesale funding and historically has had a positive impact on the Corporation's net interest income and net interest margin. The Corporation anticipates that the loan portfolio will grow at a higher rate than its core deposits, and therefore, expects wholesale funding to provide a portion of its funding base on an ongoing basis in the future. Based on the current historically low level of market interest rates and the Corporation's current low levels of interest rates on its core deposit transaction accounts, further market interest rate reductions would likely not result in a significant decrease in interest expense.

79

Volume and Rate Variance Analysis

The following schedule allocates the dollar change in net interest income (FTE) between the portion attributable to changes in the average volume of interest-earning assets and interest-bearing liabilities, including changes in the mix of assets and liabilities, and changes in average interest rates earned and paid, for the three months ended June 30, 2015, compared to the three months ended June 30, 2014 and March 31, 2015.

	Three Months Ended June 30, 2015
	Compared to Three Months Ended June 30, 2014									Compared to Three Months Ended March 31, 2015
	Increase (Decrease) Due to Changes in									Increase (Decrease) Due to Changes in
	Average Volume**			Average Yield/Rate**			Combined Increase/ (Decrease)			Average Volume**			Average Yield/Rate**			Combined Increase/ (Decrease)
	(In Thousands)
Changes in Interest Income on Interest-Earning Assets:
Loans	$	15,481		$	(1,538	)	$	13,943		$	6,728		$	(161	)	$	6,567
Taxable investment securities/other assets	283			(189		)	94			(84		)	332			248
Tax-exempt investment securities	1,278			(493		)	785			551			(122		)	429
Interest-bearing deposits with the FRB and other banks	(10		)	39			29			15			(9		)	6
Total change in interest income on interest-earning assets	17,032			(2,181		)	14,851			7,210			40			7,250
Changes in Interest Expense on Interest-Bearing Liabilities:
Interest-bearing demand deposits	69			(51		)	18			3			(36		)	(33		)
Savings deposits	123			(78		)	45			50			(60		)	(10		)
Time deposits	307			(366		)	(59		)	291			30			321
Short-term borrowings	44			(26		)	18			33			(19		)	14
Other borrowings	202			—			202			202			—			202
Total change in interest expense on interest-bearing liabilities	745			(521		)	224			579			(85		)	494
Total Change in Net Interest Income (FTE)*	$	16,287		$	(1,660	)	$	14,627		$	6,631		$	125		$	6,756
* Taxable equivalent basis using a federal income tax rate of 35%.
** The change in interest income and interest expense due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

The following schedule allocates the dollar change in net interest income (FTE) between the portion attributable to changes in the average volume of interest-earning assets and interest-bearing liabilities, including changes in the mix of assets and liabilities, and changes in average interest rates earned and paid, for the six months endedJune 30, 2015, compared to the six months endedJune 30, 2014.

	Six Months Ended June 30, 2015
	Compared to Six Months Ended June 30, 2014
	Increase (Decrease) Due to Changes in						Combined Increase/ (Decrease)
	Average Volume**			Average Yield/Rate**
	(In Thousands)
Changes in Interest Income on Interest-Earning Assets:
Loans	$	26,071		$	(3,212	)	$	22,859
Taxable investment securities/other assets	434			(456		)	(22		)
Tax-exempt investment securities	1,975			(873		)	1,102
Interest-bearing deposits with the FRB	(65		)	91			26
Total change in interest income on interest-earning assets	28,415			(4,450		)	23,965
Changes in Interest Expense on Interest-Bearing Liabilities:
Interest-bearing demand deposits	148			(93		)	55
Savings deposits	202			(103		)	99
Time deposits	343			(886		)	(543		)
Short-term borrowings	59			(64		)	(5		)
Other borrowings	202			—			202
Total change in interest expense on interest-bearing liabilities	954			(1,146		)	(192		)
Total Change in Net Interest Income (FTE)*	$	27,461		$	(3,304	)	$	24,157
* Taxable equivalent basis using a federal income tax rate of 35%.
** The change in interest income and interest expense due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.

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Provision for Loan Losses

The provision for loan losses (provision) is an increase to the allowance, as determined by management, to provide for probable losses inherent in the originated loan portfolio and for impairment of pools of acquired loans that results from the Corporation experiencing a decrease, if any, in expected cash flows of acquired loans during each reporting period. The provision was $1.5 million in the second quarter of 2015, unchanged compared to both the second quarter of 2014 and the first quarter of 2015.

The Corporation experienced net loan charge-offs of $1.8 million in the second quarter of 2015, compared to $2.2 million in the second quarter of 2014 and $1.9 million in the first quarter of 2015. Net loan charge-offs as a percentage of average loans (annualized) were 0.12% in the second quarter of 2015, compared to 0.18% in the second quarter of 2014 and 0.14% in the first quarter of 2015. Net loan charge-offs in the commercial loan portfolio totaled $0.7 million in the second quarter of 2015, compared to $1.2 million in the second quarter of 2014 and $0.9 million in the first quarter of 2015. The Corporation's commercial loan portfolio's net loan charge-offs were not concentrated in any one industry or borrower. Net loan charge-offs in the consumer loan portfolio totaled $1.1 million in the second quarter of 2015, compared to $1.0 million in both the second quarter of 2014 and the first quarter of 2015.

The Corporation's provision of $1.5 million in the second quarter of 2015 was $0.3 millionlower than net loan charge-offs for the quarter. The Corporation's quarterly provision for loan losses remained consistent throughout 2014 and the first six months of 2015, despite significant growth in its loan portfolio, due to the continued improvement in the overall credit quality of the loan portfolio including decreases in both net loan charge-offs and nonperforming loans and no significant changes in risk grade categories of the commercial loan portfolio.

The Corporation's provision and net loan charge-offs were $3.0 million and $3.7 million, respectively, for the six months ended June 30, 2015, compared to $3.1 million and $4.4 million, respectively, for the six months ended June 30, 2014.

Noninterest Income

The following summarizes the major components of noninterest income:

	Three Months Ended						Six Months Ended
	June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30, 2014
	(In thousands)
Service charges and fees on deposit accounts	$	6,445	$	5,486	$	5,916	$	12,361	$	10,416
Wealth management revenue	5,605		3,958		5,071		10,676		7,589
Electronic banking fees	4,775		3,234		4,572		9,347		6,346
Mortgage banking revenue	1,688		1,491		1,403		3,091		2,285
Other fees for customer services	1,132		930		901		2,033		1,721
Title insurance commissions	609		518		517		1,126		809
Gain on sale of investment securities	28		—		579		607		—
Other	392		184		316		708		351
Total noninterest income	$	20,674	$	15,801	$	19,275	$	39,949	$	29,517

Noninterest income was $20.7 million in the second quarter of 2015, compared to $15.8 million in the second quarter of 2014 and $19.3 million in the first quarter of 2015. Noninterest income in the second quarter of 2015 was $4.9 million, or 31%, higher than the second quarter of 2014, with the increase attributable to all major categories of noninterest income that was largely attributable to incremental revenue resulting from the Lake Michigan, Monarch and Northwestern transactions. Noninterest income in the second quarter of 2015 was $1.4 million, or 7.3%, higher than the first quarter of 2015. Excluding the $0.6 million of gains related to the sale of available-for-sale investment securities recognized in the first quarter of 2015, noninterest income in the second quarter of 2015 was $2.0 million higher than the first quarter of 2015, with the increase largely attributable to higher wealth management revenue, overdraft fee income and foreign ATM fee income from the legacy operations of Chemical Bank, as well as partially due to incremental revenue attributable to the Lake Michigan and Monarch transactions.

Service charges and fees on deposit accounts, which include overdraft/non-sufficient funds fees, checking account service fees and other deposit account charges, were $6.4 million in the second quarter of 2015, an increase of $1.0 million, or 17%, over the second quarter of 2014 and an increase of $0.5 million, or 8.9%, over the first quarter of 2015. The increase in service charges and fees on deposit accounts in the second quarter of 2015, compared to the second quarter of 2014, was due primarily to additional fees earned as a result of the three acquisitions, while the increase in the second quarter of 2015, compared to the first quarter of 2015, was primarily attributable to higher overdraft fee income from the legacy operations of Chemical Bank. Overdraft/non-

81

sufficient funds fees included in service charges and fees on deposit accounts were $4.7 million in the second quarter of 2015, compared to $4.4 million in the second quarter of 2014 and $4.3 million in the first quarter of 2015.

Wealth management revenue is comprised of investment fees that are generally based on the market value of assets within a trust account, custodial account fees and fees from the sale of investment products. Volatility in the equity and bond markets impacts the market value of trust assets and related investment fees. Wealth management revenue was $5.6 million in the second quarter of 2015, an increase of $1.6 million, or 42%, over the second quarter of 2014 and an increase of $0.5 million, or 11%, over the first quarter of 2015. The increase in wealth management revenue in the second quarter of 2015, compared to the second quarter of 2014, was due largely to additional fees earned as a result of the Northwestern transaction, while the increase in the second quarter of 2015, compared to the first quarter of 2015, was primarily attributable to seasonal fees earned during the second quarter of the year related to customer tax services. Fees from the sales of investment products totaled $1.0 million in the second quarter of 2015, compared to $0.9 million in both the second quarter of 2014 and the first quarter of 2015.

Electronic banking fees, which represent income earned by the Corporation from ATM transactions, debit card activity and internet banking fees, were $4.8 million in the second quarter of 2015, an increase of $1.5 million, or 48%, over the second quarter of 2014 and an increase of $0.2 million, or 4.4%, over the first quarter of 2015. The increase in electronic banking fees in the second quarter of 2015, compared to the second quarter of 2014, was due primarily to additional fees earned as a result of the Lake Michigan, Monarch and Northwestern transactions.

Mortgage banking revenue (MBR) includes revenue from originating, selling and servicing residential mortgage loans for the secondary market. MBR was $1.7 million in the second quarter of 2015, an increase of $0.2 million, or 13%, from the second quarter of 2014 and an increase of $0.3 million, or 20%, from the first quarter of 2015. The increase in MBR in the second quarter of 2015, compared to the second quarter of 2014, was due primarily to an increase in the volume of loans sold in the secondary market, due in part to the Northwestern transaction, that was partially offset by an increase in the amortization of the Corporation's mortgage servicing rights asset that was acquired in the Northwestern transaction. The increase in MBR in the second quarter of 2015, compared to the first quarter of 2015, was largely due to the reversal of the $0.2 million impairment valuation allowance that existed at March 31, 2015 on the Corporation's mortgage servicing rights asset as long-term residential mortgage market interest rates increased during the second quarter of 2015. The Corporation sold $64 million of residential mortgage loans in the secondary market in the second quarter of 2015, compared to $36 million in the second quarter of 2014 and $53 million in the first quarter of 2015.

The Corporation sells residential mortgage loans in the secondary market on both a servicing retained and servicing released basis. These sales include the Corporation entering into residential mortgage loan sale agreements with buyers in the normal course of business. The agreements contain provisions that include various representations and warranties regarding the origination, characteristics and underwriting of the mortgage loans. The recourse of the buyer may result in either indemnification of any loss incurred by the buyer or a requirement for the Corporation to repurchase a loan that the buyer believes does not comply with the representations included in the loan sale agreement. Repurchase demands and loss indemnifications received by the Corporation are reviewed by a senior officer on a loan-by-loan basis to validate the claim made by the buyer. The Corporation maintains a reserve for probable losses expected to be incurred from loans previously sold in the secondary market. This contingent liability is based on trends in repurchase and indemnification requests, actual loss experience, information requests, known and inherent risks in the sale of loans in the secondary market and current economic conditions. The Corporation records losses resulting from the repurchase of loans previously sold in the secondary market, as well as adjustments to estimates of future probable losses, as part of its MBR in the period incurred. The Corporation's reserve for probable losses was $4.5 million at June 30, 2015, compared to $2.8 million at March 31, 2015, $3.0 million at December 31, 2014 and $1.1 million at June 30, 2014. The increase in the reserve for probable losses from March 31, 2015 was attributable to the reserve recorded for probable losses associated with the servicing portfolio acquired in the Monarch transaction and the reserve recorded for probable losses associated with Lake Michigan's loans sold with servicing released. In addition to the Lake Michigan and Monarch transactions, the increase in the reserve for probable losses from June 30, 2014 was also attributable to the reserve for probable losses associated with the servicing portfolio acquired in the Northwestern transaction.

Noninterest income was $39.9 million for the six months ended June 30, 2015, compared to $29.5 million for the six months ended June 30, 2014. The increase in noninterest income for the first six months of 2015, compared to the same period in 2014, was primarily attributable to incremental revenue resulting from the Lake Michigan, Monarch and Northwestern transactions.

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Operating Expenses

The following summarizes the major categories of operating expenses:

	Three Months Ended							Six Months Ended
	June 30, 2015			June 30, 2014		March 31, 2015		June 30, 2015			June 30, 2014
	(In thousands)
Salaries and wages	$	25,535		$	20,138	$	23,741	$	49,276		$	39,671
Employee benefits	6,176			4,722		5,512		11,688			9,373
Occupancy	4,386			3,638		4,426		8,812			8,012
Equipment and software	4,480			3,413		4,398		8,878			6,874
Outside processing and service fees	3,926			2,876		3,558		7,484			5,544
Professional fees	1,258			830		1,237		2,495			1,813
FDIC insurance premiums	1,337			1,063		1,225		2,562			2,124
Intangible asset amortization	987			446		791		1,778			891
Postage and express mail	876			722		856		1,732			1,601
Advertising and marketing	856			851		663		1,519			1,527
Training, travel and other employee expenses	760			608		728		1,488			1,223
Telephone	606			476		540		1,146			943
Supplies	525			415		519		1,044			860
Donations	568			417		308		876			783
Credit-related expenses	(192		)	202		133		(59		)	568
Acquisition-related expenses	3,457			647		1,362		4,819			970
Other	1,244			961		1,023		2,267			1,830
Total operating expenses	$	56,785		$	42,425	$	51,020	$	107,805		$	84,607

Operating expenses were $56.8 million in the second quarter of 2015, compared to $42.4 million in the second quarter of 2014 and $51.0 million in the first quarter of 2015. Operating expenses included nonrecurring transaction-related expenses of $3.5 million in the second quarter of 2015, $0.6 million in the second quarter of 2014 and $1.4 million in the first quarter of 2015. Excluding these nonrecurring transaction-related expenses, operating expenses in the second quarter of 2015 were $53.3 million, an increase of $11.6 million, or 28%, over $41.8 million in the second quarter of 2014 and an increase of $3.7 million, or 7.4%, over $49.7 million in the first quarter of 2015. The increase in operating expenses in the second quarter of 2015, compared to the second quarter of 2014, was primarily attributable to incremental operating costs associated with the Lake Michigan, Monarch and Northwestern transactions, while the increase in the second quarter of 2015, compared to the first quarter of 2015, was attributable to incremental operating costs associated with the Lake Michigan and Monarch transactions. The Corporation expects to incur approximately $3.0 million of additional nonrecurring transaction-related expenses in the second half of 2015 primarily related to the conversion of Lake Michigan's core data systems into Chemical Bank's.

Lake Michigan, Monarch and Northwestern contributed incremental operating expenses totaling approximately $10.4 million in the second quarter of 2015. Accordingly, the operating expenses for the legacy operations of Chemical Bank totaled approximately $42.9 million in the second quarter of 2015, an increase of $1.1 million, or 2.7%, over the second quarter of 2014, with higher employee compensation costs being partially offset by lower credit-related expenses. Total operating expenses for the legacy operations of Chemical Bank in the second quarter of 2015 were flat when compared to the first quarter of 2015, with slightly higher employee compensation costs and higher donations expense being offset by lower occupancy and credit-related expenses. The decreases in credit-related expenses in the second quarter of 2015, compared to both the second quarter of 2014 and the first quarter of 2015, were primarily attributable to higher net gains on the sales of ORE properties.

Salaries and wages of $25.5 million in the second quarter of 2015increased$5.4 million, or 27%, over the second quarter of 2014 due primarily to incremental costs associated with the Lake Michigan, Monarch and Northwestern transactions, in addition to merit and inflationary salary adjustments that took effect at the beginning of 2015. Salaries and wages in the second quarter of 2015increased$1.8 million, or 7.6%, over the first quarter of 2015 due primarily to incremental costs associated with the Lake Michigan and Monarch transactions. Performance-based compensation expense was $2.5 million in the second quarter of 2015, compared to $2.1 million in the second quarter of 2014 and $2.4 million in the first quarter of 2015.

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Employee benefit costs of $6.2 million in the second quarter of 2015increased$1.5 million, or 31%, over the second quarter of 2014, compared to an increase of $0.7 million, or 12%, over the first quarter of 2015. The increase in employee benefit costs in the second quarter of 2015, compared to the second quarter of 2014, was primarily attributable to a combination of incremental costs associated with the Lake Michigan, Monarch and Northwestern transactions and higher pension expense. The increase in employee benefit costs in the second quarter of 2015, compared to the first quarter of 2015, was primarily attributable to higher group health costs for legacy employees of Chemical Bank, which was partially offset by lower payroll tax expenses, which are highest in the first quarter of each year.

Occupancy expenses of $4.4 million in the second quarter of 2015increased$0.7 million, or 21%, over the second quarter of 2014, although were unchanged compared to the first quarter of 2015. The increase in occupancy expenses in the second quarter of 2015, compared to the second quarter of 2014, was primarily attributable to a combination of incremental costs associated with the Lake Michigan, Monarch and Northwestern transactions. Increases in occupancy expenses in the second quarter of 2015, compared to the first quarter of 2015, resulting from the Lake Michigan and Monarch transactions were offset by reductions in occupancy expenses for the legacy operations of Chemical Bank.

Equipment and software expenses of $4.5 million in the second quarter of 2015 were $1.1 million, or 31%, higher than the second quarter of 2014 and $0.1 million, or 1.9%, higher than the first quarter of 2015. The increase in the second quarter of 2015, compared to the second quarter of 2014, was primarily attributable to incremental costs associated with the Lake Michigan, Monarch and Northwestern transactions. Increases in equipment and software expenses in the second quarter of 2015, compared to the first quarter of 2015, resulting from the Lake Michigan and Monarch transactions were mostly offset by reductions in occupancy expenses for the legacy operations of Chemical Bank.

Outside processing and service fees of $3.9 million in the second quarter of 2015 were $1.1 million, or 37%, higher than the second quarter of 2014 and $0.4 million, or 10.3%, higher than the first quarter of 2015, with the increases primarily attributable to incremental costs associated with the three acquisition transactions.

Intangible asset amortization of $1.0 million in the second quarter of 2015 was $0.5 million higher than the second quarter of 2014 and $0.2 million higher than the first quarter of 2015, with the increases related to the amortization of core deposit intangible assets resulting from the three acquisition transactions.

Credit-related expenses are comprised of other real estate (ORE) net costs and loan collection costs. ORE net costs are comprised of costs to carry ORE, such as property taxes, insurance and maintenance costs, fair value write-downs after a property is transferred to ORE and net gains/losses from the disposition of ORE. Loan collection costs include legal fees, appraisal fees and other costs recognized in the collection of loans with deteriorated credit quality and in the process of foreclosure. Credit-related expenses were a negative expense of $0.2 million in the second quarter of 2015, $0.4 million and $0.3 millionlower than the second quarter of 2014 and the first quarter of 2015, respectively. The decreases in credit-related expenses in the second quarter of 2015, compared to both the second quarter of 2014 and first quarter of 2015, were primarily attributable to higher gains on the sales of ORE properties. The Corporation recognized gains on the sale of ORE properties of $1.3 million in the second quarter of 2015, compared to $0.6 million in the second quarter of 2014 and $0.9 million in the first quarter of 2015. ORE operating costs and loan collection costs, combined, were $0.8 million in the second quarter of 2015, compared to $0.7 million in both the second quarter of 2014 and the first quarter of 2015.

Operating expenses were $107.8 million for the six months ended June 30, 2015, compared to $84.6 million for the six months ended June 30, 2014. Operating expenses included nonrecurring transaction-related expenses of $4.8 million and $1.0 million for the six months ended June 30, 2015 and 2014, respectively. Excluding these nonrecurring transaction-related expenses, operating expenses were $103.0 million for the six months ended June 30, 2015, compared to $83.6 million for the six months ended June 30, 2014, with the increase primarily attributable to incremental costs resulting from the Lake Michigan, Monarch and Northwestern transactions. Total operating expenses from the legacy operations of Chemical Bank increased by approximately 2.7% for the first six months of 2015, compared to the same period in 2014, with increases in employee compensation costs partially offset by reductions in credit-related expenses. The decrease in credit-related expenses in the first half of 2015, compared to the first half of 2014, was primarily attributable to higher gains on the sales of ORE properties. The Corporation recognized gains on the sale of ORE properties of $2.2 million in the first half of 2015, compared to $1.1 million in the first half of 2014.

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Chemical Financial Corporation

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2015

Income Tax Expense

The Corporation's effective federal income tax rate was 32.4% for the second quarter of 2015, compared to 30.4% and 31.2% for the second quarter of 2014 and the first quarter of 2015, respectively. The fluctuations in the Corporation's effective federal income tax rate reflect changes each year in the proportion of interest income exempt from federal taxation, nondeductible interest expense and other nondeductible expenses relative to pretax income and tax credits. The increase in the effective federal income tax rate for the second quarter of 2015, compared to the first quarter of 2015, was largely attributable to nondeductible expenses associated with the closing of the Lake Michigan and Monarch transactions. Excluding the impact of the nondeductible expenses, the Corporation's effective federal income tax rate was 30.9% for the second quarter of 2015. The Corporation recorded income tax expense for the three- and six-month periods ended June 30, 2015 and 2014 using its estimate of the effective income tax rate expected for the full year and applied that rate on a year-to-date basis.

Liquidity

Liquidity measures the ability of the Corporation to meet current and future cash flow needs in a timely manner. Liquidity risk is the adverse impact on net interest income if the Corporation was unable to meet its cash flow needs at a reasonable cost.

Liquidity is managed to ensure stable, reliable and cost-effective sources of funds are available to satisfy deposit withdrawals and lending and investment opportunities. The ability of a financial institution to meet its current financial obligations is a function of its balance sheet structure, its ability to liquidate assets and its access to alternative sources of funds. The Corporation manages its funding needs by maintaining a level of liquid funds through its asset/liability management process. The Corporation's largest sources of liquidity on a consolidated basis are the deposit base that comes from consumer, business and municipal customers within the Corporation's local markets, principal payments on loans, maturing investment securities, cash held at the FRB and unpledged investment securities available-for-sale. Total deposits increased$973 million during the three months ended June 30, 2015 and $2.20 billion during the twelve months ended June 30, 2015. The increase in deposits during the three months ended June 30, 2015 was primarily attributable to $925 million of deposits acquired in the Lake Michigan transaction. The increase in deposits during the twelve months ended June 30, 2015 was primarily attributable to $1.86 billion of deposits acquired in the Lake Michigan, Monarch and Northwestern transactions. The Corporation's loan-to-deposit ratio was 96.5% at June 30, 2015, 90.2% at March 31, 2015, 93.6% at December 31, 2014 and 96.2% at June 30, 2014. The Corporation had $16 million of cash deposits held at the FRB at June 30, 2015, compared to $239 million at March 31, 2015, $8 million at December 31, 2014 and $1 million at June 30, 2014. The decrease in interest-bearing balances at the FRB during the second quarter of 2015 was largely attributable to a seasonal decrease in municipal customer deposits. At June 30, 2015, the Corporation had unpledged investment securities available-for-sale with an amortized cost of $107 million and available unused wholesale sources of liquidity, including FHLB advances and borrowings from the discount window of the FRB.

The Corporation's subsidiary banks are members of the FHLB and as such have access to short-term and long-term advances from the FHLB that are generally secured by residential mortgage first lien loans. The Corporation's borrowing availability from the FHLB, based on its FHLB capital stock and subject to certain requirements, was $245 million at June 30, 2015. The Corporation can also borrow from the FRB's discount window to meet short-term liquidity requirements. These borrowings are required to be secured by investment securities and/or certain loan types, with each category of assets carrying various borrowing capacity percentages. At June 30, 2015, the Corporation maintained an unused borrowing capacity of $146 million with the FRB's discount window based upon pledged collateral as of that date. The Corporation also had the ability to borrow an additional $75 million of federal funds from a third-party financial institution at June 30, 2015. It is management's opinion that the Corporation's borrowing capacity could be expanded, if deemed necessary, as it has additional borrowing capacity available at the FHLB that could be used if it increased its investment in FHLB capital stock, and the Corporation has a significant amount of additional assets that could be used as collateral at the FRB's discount window.

The Corporation manages its liquidity position to provide the cash necessary to pay dividends to shareholders, invest in new subsidiaries, enter new banking markets, pursue investment opportunities and satisfy other operating requirements. The Corporation's primary source of liquidity is dividends from Chemical Bank.

Federal and state banking laws place certain restrictions on the amount of dividends that a bank may pay to its parent company. During the six months ended June 30, 2015, Chemical Bank paid $17.0 million in cash dividends to the Corporation, and the Corporation paid cash dividends to shareholders of $17.0 million. During 2014, Chemical Bank paid $64.5 million in dividends to the Corporation and the Corporation paid cash dividends to shareholders of $29.5 million. The earnings of Chemical Bank have been the principal source of funds to pay cash dividends to the Corporation's shareholders. Chemical Bank had net income of $39.1 million during the six months ended June 30, 2015, compared to net income of $67.0 million during all of 2014. Over the long term, cash dividends to shareholders are dependent upon earnings, capital requirements, regulatory restraints and other factors affecting Chemical Bank.

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Market Risk

Market risk is the risk of loss arising from adverse changes in the fair value of financial instruments due primarily to changes in interest rates. Interest rate risk is the Corporation's primary market risk and results from timing differences in the repricing of interest rate sensitive assets and liabilities and changes in relationships between rate indices due to changes in interest rates. The Corporation's net interest income is largely dependent upon the effective management of interest rate risk. The Corporation's goal is to avoid a significant decrease in net interest income, and thus an adverse impact on the profitability of the Corporation, in periods of changing interest rates. Sensitivity of earnings to interest rate changes arises when yields on assets change differently from the interest costs on liabilities. Interest rate sensitivity is determined by the amount of interest-earning assets and interest-bearing liabilities repricing within a specific time period and the magnitude by which interest rates change on the various types of interest-earning assets and interest-bearing liabilities. The management of interest rate sensitivity includes monitoring the maturities and repricing opportunities of interest-earning assets and interest-bearing liabilities. The Corporation's interest rate risk is managed through policies and risk limits approved by the boards of directors of the Corporation and its subsidiary banks and an Asset and Liability Committee (ALCO). The ALCO, which is comprised of executive and senior management from various areas of the Corporation and Chemical Bank, including finance, lending, investments and deposit gathering, meets regularly to execute asset and liability management strategies. The ALCO establishes guidelines and monitors the sensitivity of earnings to changes in interest rates. The goal of the ALCO process is to manage the impact on net interest income and the net present value of future cash flows of probable changes in interest rates within authorized risk limits.

The primary technique utilized by the Corporation to measure its interest rate risk is simulation analysis. Simulation analysis forecasts the effects on the balance sheet structure and net interest income under a variety of scenarios that incorporate changes in interest rates, the shape of the Treasury yield curve, interest rate relationships and the mix of assets and liabilities and loan prepayments. These forecasts are compared against net interest income projected in a stable interest rate environment. While many assets and liabilities reprice either at maturity or in accordance with their contractual terms, several balance sheet components demonstrate characteristics that require an evaluation to more accurately reflect their repricing behavior. Key assumptions in the simulation analysis include prepayments on loans, probable calls of investment securities, changes in market conditions, loan volumes and loan pricing, deposit sensitivity and customer preferences. These assumptions are inherently uncertain as they are subject to fluctuation and revision in a dynamic environment. As a result, the simulation analysis cannot precisely forecast the impact of rising and falling interest rates on net interest income. Actual results will differ from simulated results due to many other factors, including changes in balance sheet components, interest rate changes, changes in market conditions and management strategies.

The Corporation's interest rate sensitivity is estimated by first forecasting the next twelve months of net interest income under an assumed environment of constant market interest rates. The Corporation then compares the results of various simulation analyses to the constant interest rate forecast (base case). At June 30, 2015, the Corporation projected the change in net interest income during the next twelve months assuming short-term market interest rates were to uniformly and gradually increase or decrease by up to 200 basis points in a parallel fashion over the entire yield curve during the same time period. Additionally, at June 30, 2015, the Corporation projected the change in net interest income of an immediate 400 basis point increase in market interest rates. The Corporation did not project a 400 basis point decrease in interest rates at June 30, 2015 as the likelihood of a decrease of this size was considered unlikely given prevailing interest rate levels. These projections were based on the Corporation's assets and liabilities remaining static over the next twelve months, while factoring in probable calls and prepayments of certain investment securities and residential mortgage and consumer loans. The ALCO regularly monitors the Corporation's forecasted net interest income sensitivity to ensure that it remains within established limits.

A summary of the Corporation's interest rate sensitivity at June 30, 2015 follows:

	Gradual Change									Immediate Change
Twelve month interest rate change projection (in basis points)	-200		-100		0	+100		+200		+400
Percent change in net interest income vs. constant rates	(5.2	)%	(2.6	)%	—	(0.2	)%	(1.1	)%	(6.8	)%

At June 30, 2015, the Corporation's model simulations projected that a 100, 200 and 400 basis point increases in interest rates would result in negative variances in net interest income of 0.2%1.1% and 6.8%, respectively, relative to the base case over the next twelve-month period. At June 30, 2015, the Corporation's model simulations also projected that decreases in interest rates of 100 and 200 basis points would result in negative variances in net interest income of 2.6% and 5.2%, respectively, relative to the base case over the next twelve-month period. The likelihood of a decrease in interest rates beyond 100 basis points at June 30, 2015 was considered to be unlikely given prevailing interest rate levels.

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The Corporation's model simulations for a 200 basis point increase resulted in a negative variance in net interest income, relative to the base case, primarily due to the Corporation deploying excess cash and maturing variable-rate investment securities into fixed-rate loans during 2014 and the first half of 2015. While the model simulations projected a negative variance for a 200 basis point increase, the Corporation's net interest income is still projected to be higher if interest rates were to rise 200 basis points due to the higher yield being earned on the funds deployed into loans compared to maintaining these funds at the FRB earning 25 basis points or investing in lower yielding investment securities.

Future increases in market interest rates are not expected to have a significant immediate favorable impact on the Corporation's net interest income at the time of such increases because of the low percentage of variable interest rate loans in the Corporation's loan portfolio and a large percentage of variable interest rate loans at interest rate floors at June 30, 2015. The percentage of variable interest rate loans, which comprised approximately 26% of the Corporation's loan portfolio at June 30, 2015, has remained relatively consistent during the twelve-month period ended June 30, 2015. Approximately two-thirds of the Corporation's variable interest rate loans were at an interest rate floor with a majority expected to remain at their floor until they mature or market interest rates rise more than 75 basis points.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information concerning quantitative and qualitative disclosures about market risk is contained in the discussion regarding interest rate risk and sensitivity under the captions “Liquidity” and “Market Risk” herein and in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014 and is here incorporated by reference.

Since December 31, 2014, the Corporation does not believe that there has been a material change in the nature or categories of the Corporation's primary market risk exposure, or the particular markets that present the primary risk of loss to the Corporation. As of the date of this report, the Corporation does not know of or expect there to be any material change in the general nature of its primary market risk exposure in the near term. The methods by which the Corporation manages its primary market risk exposure, as described in its Annual Report on Form 10-K for the year ended December 31, 2014, have not changed materially during the current year. As of the date of this report, the Corporation does not expect to make material changes in those methods in the near term. The Corporation may change those methods in the future to adapt to changes in circumstances or to implement new techniques.

The Corporation's market risk exposure is mainly comprised of its vulnerability to interest rate risk. Prevailing interest rates and interest rate relationships are largely determined by market factors that are beyond the Corporation's control. All information provided in response to this item consists of forward-looking statements. Reference is made to the section captioned “Forward-Looking Statements” in this report for a discussion of the limitations on the Corporation's responsibility for such statements. In this discussion, “near term” means a period of one year following the date of the most recent consolidated statement of financial position contained in this report.

Item 4. Controls and Procedures

An evaluation was performed under the supervision and with the participation of the Corporation's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Corporation's disclosure controls and procedures as of the end of the period covered by this report. Based on and as of the time of that evaluation, the Corporation's management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Corporation's disclosure controls and procedures were effective to ensure that information required to be disclosed by the Corporation in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms. There was no change in the Corporation's internal control over financial reporting that occurred during the three months ended June 30, 2015 that has materially affected, or that is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

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Part II. Other Information

Item 1A. Risk Factors

Information concerning risk factors is contained in the discussion in Item 1A, “Risk Factors,” in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014. As of the date of this report, the Corporation does not believe that there has been a material change in the nature or categories of the Corporation's risk factors, as compared to the information disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following schedule summarizes the Corporation's total monthly share repurchase activity for the three months ended June 30, 2015:

	Issuer Purchases of Equity Securities
Period Beginning on First Day of Month Ended	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced  Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under Plans or Programs
April 30, 2015	9,739	$	31.93	—	500,000
May 31, 2015	732	30.29		—	500,000
June 30, 2015	94,666	33.73		—	500,000
Total	105,137	$	33.54	—

(1) Represents shares delivered or attested in satisfaction of the exercise price and/or tax withholding obligations by employees who received shares of the Corporation's common stock under the Corporation's share-based compensation plans, as these plans permit employees to use the Corporation's stock to satisfy such obligations based on the market value of the stock on the date of exercise or date of vesting, as applicable.

In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation's common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation's dividend reinvestment plan, employee benefit plans and other general corporate purposes. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. No shares have been repurchased under the Corporation's Common Stock Repurchase Program since the authorization.

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Item 6. Exhibits

Exhibits. The following exhibits are filed as part of this report on Form 10-Q:

Exhibit Number	Document
2.1	Agreement and Plan of Merger, dated March 10, 2014. Previously filed as Exhibit 2.1 to the registrant's Current Report on Form 8-K dated March 10, 2014, filed with the SEC on March 11, 2014. Here incorporated by reference.
2.2	Agreement and Plan of Merger, dated January 5, 2015. Previously filed as Exhibit 2.1 to the registrant's Current Report on Form 8-K dated January 5, 2015, filed with the SEC on January 6, 2015. Here incorporated by reference.
3.1	Restated Articles of Incorporation. Previously filed as Exhibit 3.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed with the SEC on April 30, 2015. Here incorporated by reference.
3.2	Bylaws. Previously filed as Exhibit 3.2 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 26, 2014. Here incorporated by reference.
4.1	Restated Articles of Incorporation. Exhibit 3.1 is here incorporated by reference.
4.2	Bylaws. Exhibit 3.2 is here incorporated by reference.
31.1	Certification of Chief Executive Officer.
31.2	Certification of Chief Financial Officer.
32.1	Certification pursuant to 18 U.S.C. §1350.
101.1	Interactive Data File.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CHEMICAL FINANCIAL CORPORATION
Date:	August 5, 2015	By:	/s/ David B. Ramaker
			David B. Ramaker
			Chairman of the Board, Chief Executive Officer and President
			(Principal Executive Officer)
Date:	August 5, 2015	By:	/s/ Lori A. Gwizdala
			Lori A. Gwizdala
			Executive Vice President, Chief Financial Officer and Treasurer
			(Principal Financial and Accounting Officer)

90

Exhibit Index

Exhibits. The following exhibits are filed as part of this report on Form 10-Q:

Exhibit Number	Document
2.1	Agreement and Plan of Merger, dated March 10, 2014. Previously filed as Exhibit 2.1 to the registrant's Current Report on Form 8-K dated March 10, 2014, filed with the SEC on March 11, 2014. Here incorporated by reference.
2.2	Agreement and Plan of Merger, dated January 5, 2015. Previously filed as Exhibit 2.1 to the registrant's Current Report on Form 8-K dated January 5, 2015, filed with the SEC on January 6, 2015. Here incorporated by reference.
3.1	Restated Articles of Incorporation. Previously filed as Exhibit 3.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed with the SEC on April 30, 2015. Here incorporated by reference.
3.2	Bylaws. Previously filed as Exhibit 3.2 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 26, 2014. Here incorporated by reference.
4.1	Restated Articles of Incorporation. Exhibit 3.1 is here incorporated by reference.
4.2	Bylaws. Exhibit 3.2 is here incorporated by reference.
31.1	Certification of Chief Executive Officer.
31.2	Certification of Chief Financial Officer.
32.1	Certification pursuant to 18 U.S.C. §1350.
101.1	Interactive Data File.

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EX-31.1

Exhibit 31.1

Certifications

I, David B. Ramaker, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 of Chemical Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 5, 2015
		/s/ David B. Ramaker
		David B. Ramaker Chairman of the Board, Chief Executive Officer and President Chemical Financial Corporation

EX-31.2

Exhibit 31.2

Certifications

I, Lori A. Gwizdala, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 of Chemical Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 5, 2015
		/s/ Lori A. Gwizdala
		Lori A. Gwizdala Executive Vice President, Chief Financial Officer and Treasurer Chemical Financial Corporation

EX-32.1

Exhibit 32.1

Certification

Pursuant to 18 U.S.C. § 1350, each of the undersigned hereby certifies in his or her capacity as an officer of Chemical Financial Corporation (the “Company”) that the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition of the Company at the end of such period and the results of operations of the Company for such period.

Dated:	August 5, 2015	/s/ David B. Ramaker
		David B. Ramaker Chairman of the Board, Chief Executive Officer and President
Dated:	August 5, 2015	/s/ Lori A. Gwizdala
		Lori A. Gwizdala Executive Vice President, Chief Financial Officer and Treasurer

A signed original of this written statement required by Section 906 has been provided to Chemical Financial Corporation and will be retained by Chemical Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Acquisitions (Activity for Acquired Loans) (Details) - USD ($) $ in Thousands					6 Months Ended
		May. 31, 2015	Apr. 01, 2015	Oct. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
Activity for accretable yield includes contractually due interest of acquired loans
Balance at beginning of period					$ 137,961
Additions attributable to acquisitions					228,160
Accretable Yield Additions, Net of Reductions	[1]				2,765
Accretion recognized in interest income					(20,838)
Reclassification from nonaccretable difference					0
Balance at end of period					348,048
Northwestern Bancorp [Member]
Activity for accretable yield includes contractually due interest of acquired loans
Balance at beginning of period					104,675
Additions attributable to acquisitions				$ 110,000	0
Accretable Yield Additions, Net of Reductions	[1]				(2,859)
Accretion recognized in interest income					(10,058)
Reclassification from nonaccretable difference					0
Balance at end of period					91,758
OAK [Member]
Activity for accretable yield includes contractually due interest of acquired loans
Balance at beginning of period					33,286	$ 32,610
Additions attributable to acquisitions					0	0
Accretable Yield Additions, Net of Reductions	[1]				5,215	2,333
Accretion recognized in interest income					(6,326)	(7,594)
Reclassification from nonaccretable difference					0	10,000
Balance at end of period					32,175	$ 37,349
Lake Michigan Financial Corp [Member]
Activity for accretable yield includes contractually due interest of acquired loans
Balance at beginning of period					0
Additions attributable to acquisitions		$ 190,246			190,246
Accretable Yield Additions, Net of Reductions	[1]				1,550
Accretion recognized in interest income					(3,486)
Reclassification from nonaccretable difference					0
Balance at end of period					188,310
Monarch Community Bancorp [Member]
Activity for accretable yield includes contractually due interest of acquired loans
Balance at beginning of period					0
Additions attributable to acquisitions			$ 37,914		37,914
Accretable Yield Additions, Net of Reductions	[1]				(1,141)
Accretion recognized in interest income					(968)
Reclassification from nonaccretable difference					0
Balance at end of period					$ 35,805

[1] Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.

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Loans (Summary of TDRs Modified During the Period) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Loans	Jun. 30, 2014 USD ($) Loans	Jun. 30, 2015 USD ($) Loans	Jun. 30, 2014 USD ($) Loans
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	47	90	67	142
Modified TDRs, Pre-modification recorded investment	$ 4,797	$ 8,358	$ 9,599	$ 20,563
Modified TDRs, Post-modification recorded investment	$ 4,795	$ 8,357	$ 9,597	$ 20,553
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member]
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	18	27	28	49
Modified TDRs, Pre-modification recorded investment	$ 3,164	$ 6,709	$ 7,630	$ 17,927
Modified TDRs, Post-modification recorded investment	$ 3,164	$ 6,709	$ 7,630	$ 17,927
Consumer loan portfolio [Member] | Consumer Portfolio Segment [Member]
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	29	63	39	93
Modified TDRs, Pre-modification recorded investment	$ 1,633	$ 1,649	$ 1,969	$ 2,636
Modified TDRs, Post-modification recorded investment	$ 1,631	$ 1,648	$ 1,967	$ 2,626
Commercial [Member] | Commercial Loan Portfolio [Member]
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	13	15	18	27
Modified TDRs, Pre-modification recorded investment	$ 2,332	$ 3,575	$ 4,264	$ 11,931
Modified TDRs, Post-modification recorded investment	$ 2,332	$ 3,575	$ 4,264	$ 11,931
Real estate commercial [Member] | Commercial Loan Portfolio [Member]
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	4	12	9	21
Modified TDRs, Pre-modification recorded investment	$ 527	$ 3,134	$ 3,061	$ 5,924
Modified TDRs, Post-modification recorded investment	$ 527	$ 3,134	$ 3,061	$ 5,924
Land development [Member] | Commercial Loan Portfolio [Member]
Schedule providing information on TDRs
Modified TDRs, Number of loans | Loans	1	0	1	1
Modified TDRs, Pre-modification recorded investment	$ 305	$ 0	$ 305	$ 72
Modified TDRs, Post-modification recorded investment	$ 305	$ 0	$ 305	$ 72

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Loans (Summary of Recorded Investment of Consumer Loans by Risk Rating Categories) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	$ 2,924,045	$ 2,604,206	$ 2,275,932
Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	1,310,167	1,110,390	970,397
Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	887,907	829,570	744,781
Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	725,971	664,246	560,754
Originated Loans [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	2,527,302	2,386,475	2,236,106
Originated Loans [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	1,068,489	998,001	959,985
Originated Loans [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	871,936	819,378	743,657
Originated Loans [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	586,877	569,096	532,464
Originated Loans [Member] | Performing [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	2,514,759	2,372,503	2,219,982
Originated Loans [Member] | Performing [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	1,058,696	987,542	947,768
Originated Loans [Member] | Performing [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	871,543	818,878	743,121
Originated Loans [Member] | Performing [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	584,520	566,083	529,093
Originated Loans [Member] | Nonperforming [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	12,543	13,972	16,124
Originated Loans [Member] | Nonperforming [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	9,793	10,459	12,217
Originated Loans [Member] | Nonperforming [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	393	500	536
Originated Loans [Member] | Nonperforming [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	2,357	3,013	3,371
Acquired Loans [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	396,743	217,731	39,826
Acquired Loans [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	241,678	112,389	10,412
Acquired Loans [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	15,971	10,192	1,124
Acquired Loans [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	139,094	95,150	28,290
Acquired Loans [Member] | Performing [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	392,750	215,971	39,694
Acquired Loans [Member] | Performing [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	238,698	111,101	10,343
Acquired Loans [Member] | Performing [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	15,966	10,174	1,124
Acquired Loans [Member] | Performing [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	138,086	94,696	28,227
Acquired Loans [Member] | Nonperforming [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	3,993	1,760	132
Acquired Loans [Member] | Nonperforming [Member] | Real estate residential [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	2,980	1,288	69
Acquired Loans [Member] | Nonperforming [Member] | Consumer installment [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	5	18	0
Acquired Loans [Member] | Nonperforming [Member] | Home equity [Member]
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status
Recorded investment (loan balance), Consumer, Total	$ 1,008	$ 454	$ 63

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Fair Value Measurements (Fair Value of Assets on a Nonrecurring Basis) (Details) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	$ 38,714	$ 44,219	$ 40,181
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Significant Other Observable Inputs (Level 2) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Significant Unobservable Inputs (Level 3) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	38,714	44,219	40,181
Impaired originated loans [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	24,517	21,323	29,789
Impaired originated loans [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Impaired originated loans [Member] | Significant Other Observable Inputs (Level 2) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Impaired originated loans [Member] | Significant Unobservable Inputs (Level 3) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	24,517	21,323	29,789
Other real estate/repossessed assets [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	14,197	14,205	10,392
Other real estate/repossessed assets [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Other real estate/repossessed assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	0	0	0
Other real estate/repossessed assets [Member] | Significant Unobservable Inputs (Level 3) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis	$ 14,197	14,205	$ 10,392
Mortgage Servicing Rights [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis		8,691
Mortgage Servicing Rights [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis		0
Mortgage Servicing Rights [Member] | Significant Other Observable Inputs (Level 2) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis		0
Mortgage Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member]
Summary of assets measured at fair value on a nonrecurring basis
Total assets measured at fair value on a nonrecurring basis		$ 8,691

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Loans (Summary of TDRs with a Payment Default During the Period) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Loans	Jun. 30, 2014 USD ($) Loans	Jun. 30, 2015 USD ($) Loans	Jun. 30, 2014 USD ($) Loans
Troubled debt restructurings on financing receivables with defaults payment
Financing receivable modifications subsequent default number of contract	1	11	5	14
Financing receivable modification subsequent default recorded investment | $	$ 183	$ 1,454	$ 975	$ 3,228
Consumer Portfolio Segment [Member]
Troubled debt restructurings on financing receivables with defaults payment
Financing receivable modifications subsequent default number of contract	0	3	1	3
Financing receivable modification subsequent default recorded investment | $	$ 0	$ 80	$ 33	$ 80
Commercial [Member] | Commercial Loan Portfolio [Member]
Troubled debt restructurings on financing receivables with defaults payment
Financing receivable modifications subsequent default number of contract	0	5	0	6
Financing receivable modification subsequent default recorded investment | $	$ 0	$ 771	$ 0	$ 875
Real estate commercial [Member] | Commercial Loan Portfolio [Member]
Troubled debt restructurings on financing receivables with defaults payment
Financing receivable modifications subsequent default number of contract	1	3	4	5
Financing receivable modification subsequent default recorded investment | $	$ 183	$ 603	$ 942	$ 2,273
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member]
Troubled debt restructurings on financing receivables with defaults payment
Financing receivable modifications subsequent default number of contract	1	8	4	11
Financing receivable modification subsequent default recorded investment | $	$ 183	$ 1,374	$ 942	$ 3,148

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Pension and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Pension Plans [Member]
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan
Service cost	$ 273	$ 251	$ 545	$ 501
Interest cost	1,332	1,312	2,664	2,624
Expected return on plan assets	(2,161)	(2,079)	(4,322)	(4,157)
Amortization of prior service cost	(1)	(1)	(2)	(1)
Amortization of unrecognized net loss (gain)	1,056	569	2,112	1,138
Net periodic benefit cost	499	52	997	105
Postretirement Benefit Plan [Member]
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan
Service cost	4	4	8	9
Interest cost	33	36	67	71
Amortization of prior service cost	32	33	65	65
Amortization of unrecognized net loss (gain)	0	(26)	(1)	(52)
Net periodic benefit cost	$ 69	$ 47	$ 139	$ 93

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Loans (Summary of Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of loans under portfolio
Commercial loan	$ 4,110,698	$ 3,084,024	$ 2,622,872
Consumer loan	2,924,045	2,604,206	2,275,932
Total loans	7,034,743	5,688,230	4,898,804
Commercial [Member]
Summary of loans under portfolio
Commercial loan	1,754,873	1,354,881	1,212,383
Real estate commercial [Member]
Summary of loans under portfolio
Commercial loan	2,243,513	1,557,648	1,298,365
Real estate construction [Member]
Summary of loans under portfolio
Commercial loan	101,717	152,745	101,168
Land development [Member]
Summary of loans under portfolio
Commercial loan	10,595	18,750	10,956
Real estate residential [Member]
Summary of loans under portfolio
Consumer loan	1,310,167	1,110,390	970,397
Consumer installment [Member]
Summary of loans under portfolio
Consumer loan	887,907	829,570	744,781
Home equity [Member]
Summary of loans under portfolio
Consumer loan	$ 725,971	$ 664,246	$ 560,754

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of activity for Corporation's stock options

A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2015 is presented below:

	Non-Vested Stock Options Outstanding						Stock Options Outstanding
	Number of Options		Weighted- Average Exercise Price Per Share		Weighted- Average Grant Date Fair Value Per Share		Number of Options		Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2014	432,199		$	26.75	$	8.30	1,037,311		$	25.90
Granted	244,165		30.18		8.40		244,165		30.18
Lake Michigan converted options	—		—		—		132,883		12.93
Exercised	—		—		—		(216,690	)	23.99
Vested	(150,224	)	25.57		7.80		—		—
Forfeited/expired	(9,175	)	28.21		8.52		(9,175	)	28.21
Outstanding at June 30, 2015	516,965		$	28.69	$	8.49	1,188,494		$	25.66
Exercisable/vested at June 30, 2015							671,529		$	23.32

Assumptions of Black-Scholes option pricing model

The fair value of the stock options granted during the six months ended June 30, 2015 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions.

Expected dividend yield	3.50		%
Risk-free interest rate	1.78		%
Expected stock price volatility	39.1		%
Expected life of options – in years	7.0
Weighted average fair value of options granted	$	8.40

Summary of activity for restricted stock performance units

A summary of the activity for restricted stock units as of and for the six months ended June 30, 2015 is presented below:

	Number of Units		Weighted- Average Grant Date Fair Value  Per Unit
Outstanding at December 31, 2014	204,319		$	24.14
Granted	79,202		28.25
Converted into shares of common stock	(67,489	)	22.32
Forfeited/expired	(1,427	)	25.13
Outstanding at June 30, 2015	214,605		$	26.23

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Pension and Other Postretirement Benefit Plans (Textual) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Contribution to corporation's pension plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contribution to defined benefit pension plan			$ 0.0	$ 0.0
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate			4.15%
Multi-Employer Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contribution to defined benefit pension plan			$ 0.0
Chemical Financial Corporation [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of eligible pay contribution to certain employees			4.00%
Defined Contribution Plan, Employer Total Contribution Amount	$ 1.3	$ 1.0	$ 2.4	$ 1.7

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator and denominator of the basic and diluted earnings per common share computations
Numerator for both basic and diluted earnings per common share, net income	$ 19,024	$ 16,236	$ 36,859	$ 30,049
Denominator for basic earnings per common share, weighted average common shares outstanding	35,162,000	30,068,000	33,992,000	29,947,000
Weighted average common stock equivalents	235,000	211,000	235,000	212,000
Denominator for diluted earnings per common share	35,397,000	30,279,000	34,227,000	30,159,000
Basic earnings per common share (dollars per share)	$ 0.54	$ 0.54	$ 1.08	$ 1.00
Diluted earnings per common share (dollars per share)	$ 0.54	$ 0.54	$ 1.08	$ 1.00
Stock Option [Member]
Earnings Per Common Share (Textual) [Abstract]
Average number of exercisable employee stock option awards that were not included in the computation of diluted earnings per common share	80,700	249,150	100,875	252,529

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Loans (Textual) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2015 USD ($) Segment Loans BaordOfDirectors Tenants	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality	$ 0	$ 0	$ 500	$ 500
Loans (Textual) [Abstract]
Number of portfolio segment | Segment		2
Number of classes of loans | Loans		7
Number of minimum tenants under lease of non-owner occupied commercial real estate | Tenants		1
Number of members of the board of directors in loan committee | BaordOfDirectors		8
Minimum due period of loans consider in a nonperforming status		90 days
Total nonaccrual TDR loans	35,700	$ 35,700	37,200	43,700
Difference between recorded investment and unpaid principal balance of loan	30,200	30,200	30,600	21,900
Confirmed losses (partial charge-offs)	15,200	15,200	15,400	18,200
Fair value of discount adjustment	15,000	15,000	15,200	3,700
Acquired impaired loans	15,900	15,900	19,900	10,400
Performing trouble debt restructuring under impaired loans	45,800	45,800	45,700	44,100
Financing receivable allowance for acquired loans			500	500
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference		0
Residential Mortgage Loans in Process of Foreclosure	2,000	2,000	2,300	3,600
Commercial Loan Portfolio [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality	0	0	0	0
Loans (Textual) [Abstract]
Minimum value of loan requires executive and senior officer approval	1,500	1,500
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality	0	$ 0	$ 500	$ 500
Loans (Textual) [Abstract]
Maximum due period of loans consider in performing status		90 days
Minimum due period of loans consider in a nonperforming status		90 days
Commercial [Member]
Loans (Textual) [Abstract]
Minimum value of loan requires group loan authority approval	1,000	$ 1,000
Maximum value of loan requires executive and senior officer approval	3,500	$ 3,500
Increase in Minimum Value of Loans Requiring Group Loan Authority Approval	5,000
Real Estate Residential Loans [Member]
Loans (Textual) [Abstract]
Period for loan secured under real estate residential security		15 years
Loan-to-value ratio at the time of origination		80.00%
Land Development Loans [Member]
Loans (Textual) [Abstract]
Maximum period for payment of loan		12 months
Maximum [Member] | Commercial Loan Portfolio [Member]
Loans (Textual) [Abstract]
Maximum value of loan requires group loan authority approval	10,000	$ 10,000
Other loans requiring director loan committee approval depending on risk rating and credit action required	10,000	$ 10,000
Maximum [Member] | Real Estate Residential Loans [Member]
Loans (Textual) [Abstract]
Upper limit of number of family residential properties | Tenants		4
Minimum [Member] | Commercial Loan Portfolio [Member]
Loans (Textual) [Abstract]
Minimum value of loan requires group loan authority approval	1,000	$ 1,000
Minimum value of loans depending on risk rating and requires credit action from board of directors	15,000	15,000
Minimum [Member] | Commercial [Member]
Loans (Textual) [Abstract]
Minimum value of loans requiring only director loan committee approval	$ 10,000	$ 10,000
Minimum [Member] | Real Estate Residential Loans [Member]
Loans (Textual) [Abstract]
Lower limit of number of family residential properties | Tenants		1

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Share-Based Compensation (Restricted Stock Unit Activity) (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Number of Shares [Roll Forward]
Beginning balance, Number of shares	204,319
Granted, Number of shares	79,202
Converted into shares of common stock, Number of shares	(67,489)
Forfeited/expired, Number of shares	(1,427)
Ending balance, Number of shares	214,605
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Abstract]
Beginning balance, Weighted average grant date fair value	$ 24.14
Granted, Weighted Average grant date fair value	28.25
Converted into shares of common stock, Weighted average grant date fair value	22.32
Forfeited/expired, Weighted average grant date fair value	25.13
Ending balance, Weighted average grant date fair value	$ 26.23

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(Textual) (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 USD ($)	Apr. 20, 2015 shares
Share-Based Compensation Plans (Textual) [Abstract]
Share-based compensation expense | $	$ 0.8	$ 0.6	$ 1.5	$ 1.2
Common stock available for future grants under share-based compensation plans					1,300,000
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Plans (Textual) [Abstract]
Corporation granted options to purchase restricted stock performance units			79,202
Unrecognized compensation expense | $	$ 3.7		$ 3.7
Unrecognized compensation expense, period for recognition			2 years 9 months 18 days
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-Based Compensation Plans (Textual) [Abstract]
Restricted stock performance units eligible to vest as a multiple of number of units granted			1.5
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-Based Compensation Plans (Textual) [Abstract]
Restricted stock performance units eligible to vest as a multiple of number of units granted			0.25
Equity Option [Member]
Share-Based Compensation Plans (Textual) [Abstract]
Common stock available for future grants under share-based compensation plans	1,295,145		1,295,145
Weighted-average remaining contractual terms for outstanding stock options			6 years 7 months 6 days
Weighted-average remaining contractual terms for exercisable stock options			4 years 9 months 18 days
Outstanding in-the-money stock options, intrinsic value | $	$ 6.9		$ 6.9
Exercisable in-the-money stock options, intrinsic value | $	$ 4.7		$ 4.7
Closing price of common stock | $ / shares	$ 33.06		$ 33.06
Unrecognized compensation expense | $	$ 4.0		$ 4.0
Unrecognized compensation expense, period for recognition			3 years 10 months 24 days
Vested & Nonvested [Member] | Employee Stock Option [Member]
Share-Based Compensation Plans (Textual) [Abstract]
Corporation granted options to purchase common stock			244,165
Converted, Number of Options from Lake Michigan Acquisition			132,883

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Fair Value Measurements (Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Investment securities:
Available-for-sale	$ 685,706	$ 748,864	$ 615,975
Held-to-maturity	466,578	315,740	303,961
Carrying Amount [Member]
Investment securities:
Nonmarketable equity securities	36,142	27,369	25,572
Carrying Amount [Member] | Level 1[Member]
Assets:
Cash and cash equivalents	215,034	183,020	140,294
Investment securities:
Available-for-sale	8,294	8,259	0
Carrying Amount [Member] | Level 2 [Member]
Investment securities:
Available-for-sale	677,412	740,605	615,975
Held-to-maturity	469,337	305,913	297,630
Loans Held-for-sale	7,798	9,128	6,329
Interest receivable	21,668	17,492	15,827
Liabilities:
Deposits without defined maturities	5,547,764	4,741,024	3,814,013
Interest payable	1,557	755	735
Short-term borrowings, fair value disclosure	532,291	389,467	305,422
Other Liabilities, Fair Value Disclosure	106,469	0	0
Carrying Amount [Member] | Level 3 [Member]
Investment securities:
Held-to-maturity	500	10,500	10,500
Net loans	6,959,802	5,612,547	4,821,011
Liabilities:
Time deposits	1,745,215	1,337,947	1,278,900
Other Liabilities, Fair Value Disclosure	42,021	0	0
Fair Value [Member]
Investment securities:
Nonmarketable equity securities	36,142	27,369	25,572
Fair Value [Member] | Level 1[Member]
Assets:
Cash and cash equivalents	215,034	183,020	140,294
Investment securities:
Available-for-sale	8,294	8,259	0
Fair Value [Member] | Level 2 [Member]
Investment securities:
Available-for-sale	677,412	740,605	615,975
Held-to-maturity	466,278	308,650	297,186
Loans Held-for-sale	7,798	9,128	6,329
Interest receivable	21,668	17,492	15,827
Liabilities:
Deposits without defined maturities	5,547,764	4,741,024	3,814,013
Interest payable	1,557	755	735
Short-term borrowings, fair value disclosure	532,291	389,467	305,422
Other Liabilities, Fair Value Disclosure	106,469	0	0
Fair Value [Member] | Level 3 [Member]
Investment securities:
Held-to-maturity	300	7,090	6,775
Net loans	6,969,655	5,623,454	4,826,672
Liabilities:
Time deposits	1,745,215	1,340,015	1,285,992
Other Liabilities, Fair Value Disclosure	$ 42,021	$ 0	$ 0

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2015, December 31, 2014 and June 30, 2014:

	Investment Securities Available-for-Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
U.S. Treasury securities	$	8,270	$	24	$	—	$	8,294
Government sponsored agencies	227,424		683		200		227,907
State and political subdivisions	26,476		503		14		26,965
Residential mortgage-backed securities	213,621		742		1,694		212,669
Collateralized mortgage obligations	167,768		245		981		167,032
Corporate bonds	39,680		76		78		39,678
Preferred stock and trust preferred securities	2,889		272		—		3,161
Total	$	686,128	$	2,545	$	2,967	$	685,706
December 31, 2014
U.S. Treasury securities	$	8,272	$	—	$	13	$	8,259
Government sponsored agencies	263,658		356		511		263,503
State and political subdivisions	45,157		1,087		17		46,227
Residential mortgage-backed securities	240,465		885		1,543		239,807
Collateralized mortgage obligations	145,316		261		1,194		144,383
Corporate bonds	44,930		213		48		45,095
Preferred stock	1,389		201		—		1,590
Total	$	749,187	$	3,003	$	3,326	$	748,864
June 30, 2014
Government sponsored agencies	$	88,503	$	346	$	141	$	88,708
State and political subdivisions	40,165		1,443		—		41,608
Residential mortgage-backed securities	265,673		1,117		1,422		265,368
Collateralized mortgage obligations	154,035		376		1,128		153,283
Corporate bonds	64,979		456		83		65,352
Preferred stock	1,389		267		—		1,656
Total	$	614,744	$	4,005	$	2,774	$	615,975

Held-to-maturity Securities

	Investment Securities Held-to-Maturity
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
State and political subdivisions	$	469,337	$	4,853	$	7,912	$	466,278
Trust preferred securities	500		—		200		300
Total	$	469,837	$	4,853	$	8,112	$	466,578
December 31, 2014
State and political subdivisions	$	305,913	$	7,294	$	4,557	$	308,650
Trust preferred securities	10,500		—		3,410		7,090
Total	$	316,413	$	7,294	$	7,967	$	315,740
June 30, 2014
State and political subdivisions	$	297,630	$	5,885	$	6,329	$	297,186
Trust preferred securities	10,500		—		3,725		6,775
Total	$	308,130	$	5,885	$	10,054	$	303,961

Amortized cost and fair value of debt securities by contractual maturity

The following is a summary of the amortized cost and fair value of investment securities at June 30, 2015, by maturity, for both available-for-sale and held-to-maturity investment securities. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity.

	June 30, 2015
	Amortized Cost		Fair Value
	(In thousands)
Investment Securities Available-for-Sale:
Due in one year or less	$	198,939	$	198,680
Due after one year through five years	411,399		411,247
Due after five years through ten years	68,583		68,295
Due after ten years	5,818		5,823
Preferred stock	1,389		1,661
Total	$	686,128	$	685,706
Investment Securities Held-to-Maturity:
Due in one year or less	$	55,922	$	56,043
Due after one year through five years	209,886		209,768
Due after five years through ten years	127,398		125,775
Due after ten years	76,631		74,992
Total	$	469,837	$	466,578

Summary of continuous unrealized loss position of securities

The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In thousands)
June 30, 2015
Government sponsored agencies	$	24,789	$	163	$	14,715	$	37	$	39,504	$	200
State and political subdivisions	258,503		5,433		63,584		2,493		322,087		7,926
Residential mortgage-backed securities	187,858		1,592		3,643		102		191,501		1,694
Collateralized mortgage obligations	49,845		155		48,881		826		98,726		981
Corporate bonds	9,670		49		14,971		29		24,641		78
Trust preferred securities	—		—		300		200		300		200
Total	$	530,665	$	7,392	$	146,094	$	3,687	$	676,759	$	11,079
December 31, 2014
U.S. Treasury securities	$	8,259	$	13	$	—	$	—	$	8,259	$	13
Government sponsored agencies	166,963		406		31,927		105		198,890		511
State and political subdivisions	62,310		3,348		36,847		1,226		99,157		4,574
Residential mortgage-backed securities	17,276		52		180,194		1,491		197,470		1,543
Collateralized mortgage obligations	63,077		179		31,620		1,015		94,697		1,194
Corporate bonds	—		—		14,952		48		14,952		48
Trust preferred securities	—		—		7,090		3,410		7,090		3,410
Total	$	317,885	$	3,998	$	302,630	$	7,295	$	620,515	$	11,293
June 30, 2014
Government sponsored agencies	$	2,377	$	2	$	44,786	$	139	$	47,163	$	141
State and political subdivisions	92,279		4,047		71,421		2,282		163,700		6,329
Residential mortgage-backed securities	10,144		60		197,042		1,362		207,186		1,422
Collateralized mortgage obligations	47,142		68		35,722		1,060		82,864		1,128
Corporate bonds	4,996		5		14,922		78		19,918		83
Trust preferred securities	—		—		6,775		3,725		6,775		3,725
Total	$	156,938	$	4,182	$	370,668	$	8,646	$	527,606	$	12,828

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Loans (Summary of Impaired Loans by Classes of Loans) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Impaired loans with a valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	$ 27,803	$ 23,234	$ 27,627
Unpaid Principal Balance	28,055	23,648	29,216
Related Valuation Allowance	1,581	1,338	1,719
Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	103,066	111,433	99,153
Unpaid Principal Balance	132,985	141,622	119,489
Related Valuation Allowance	0	0	0
Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	130,869	134,667	126,780
Unpaid Principal Balance	161,040	165,270	148,705
Related Valuation Allowance	1,581	1,338	1,719
Commercial [Member] | Impaired loans with a valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	4,044	966	2,905
Unpaid Principal Balance	4,137	1,040	3,258
Related Valuation Allowance	718	293	563
Commercial [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	32,461	38,094	39,420
Unpaid Principal Balance	38,160	44,557	43,463
Related Valuation Allowance	0	0	0
Commercial [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	36,505	39,060	42,325
Unpaid Principal Balance	42,297	45,597	46,721
Related Valuation Allowance	718	293	563
Real estate commercial [Member] | Impaired loans with a valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	2,789	2,587	4,369
Unpaid Principal Balance	2,948	2,927	5,605
Related Valuation Allowance	603	710	777
Real estate commercial [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	56,052	60,616	46,205
Unpaid Principal Balance	78,490	82,693	58,997
Related Valuation Allowance	0	0	0
Real estate commercial [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	58,841	63,203	50,574
Unpaid Principal Balance	81,438	85,620	64,602
Related Valuation Allowance	603	710	777
Real estate construction [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	451	162	160
Unpaid Principal Balance	531	255	366
Related Valuation Allowance	0	0	0
Real estate construction [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	451	162	160
Unpaid Principal Balance	531	255	366
Related Valuation Allowance	0	0	0
Land development [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	1,942	1,928	4,211
Unpaid Principal Balance	3,644	3,484	7,506
Related Valuation Allowance	0	0	0
Land development [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	1,942	1,928	4,211
Unpaid Principal Balance	3,644	3,484	7,506
Related Valuation Allowance	0	0	0
Real estate residential [Member] | Impaired loans with a valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	20,970	19,681	20,353
Unpaid Principal Balance	20,970	19,681	20,353
Related Valuation Allowance	260	335	379
Real estate residential [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	8,984	7,994	6,325
Unpaid Principal Balance	8,984	7,994	6,325
Related Valuation Allowance	0	0	0
Real estate residential [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	29,954	27,675	26,678
Unpaid Principal Balance	29,954	27,675	26,678
Related Valuation Allowance	260	335	379
Consumer installment [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	398	518	536
Unpaid Principal Balance	398	518	536
Related Valuation Allowance	0	0	0
Consumer installment [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	398	518	536
Unpaid Principal Balance	398	518	536
Related Valuation Allowance	0	0	0
Home equity [Member] | Impaired loans with no valuation allowance [Member]
Schedule of Impaired loans by classes
Recorded Investment	2,778	2,121	2,296
Unpaid Principal Balance	2,778	2,121	2,296
Related Valuation Allowance	0	0	0
Home equity [Member] | Total Impaired Loans [Member]
Schedule of Impaired loans by classes
Recorded Investment	2,778	2,121	2,296
Unpaid Principal Balance	2,778	2,121	2,296
Related Valuation Allowance	$ 0	$ 0	$ 0

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Investment Securities (Summary of Amortized Cost and Fair Value of Held-To-Maturity Investment Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Held-to-maturity Securities
Investment securities held-to-maturity, Amortized Cost	$ 469,837	$ 316,413	$ 308,130
Investment securities held-to-maturity, Unrealized Gains	4,853	7,294	5,885
Investment securities held-to-maturity, Unrealized Losses	8,112	7,967	10,054
Total Held-to-maturity securities, Debt maturities, Fair Value	466,578	315,740	303,961
State and political subdivisions [Member]
Held-to-maturity Securities
Investment securities held-to-maturity, Amortized Cost	469,337	305,913	297,630
Investment securities held-to-maturity, Unrealized Gains	4,853	7,294	5,885
Investment securities held-to-maturity, Unrealized Losses	7,912	4,557	6,329
Total Held-to-maturity securities, Debt maturities, Fair Value	466,278	308,650	297,186
Trust Preferred Securities [Member]
Held-to-maturity Securities
Investment securities held-to-maturity, Amortized Cost	500	10,500	10,500
Investment securities held-to-maturity, Unrealized Gains	0	0	0
Investment securities held-to-maturity, Unrealized Losses	200	3,410	3,725
Total Held-to-maturity securities, Debt maturities, Fair Value	$ 300	$ 7,090	$ 6,775

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Share-Based Compensation (Black-Scholes Pricing Model Assumptions) (Details) - 6 months ended Jun. 30, 2015 - $ / shares	Total
Assumptions of Black-Scholes option pricing model
Expected dividend yield	3.50%
Risk-free interest rate	1.78%
Expected stock price volatility	39.10%
Expected life of options - in years	7 years
Weighted average fair value of options granted	$ 8.40

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Acquisitions Allocation of Purchase Price (Details) - USD ($) $ in Thousands	May. 31, 2015	Apr. 01, 2015	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of Purchase Price Allocation [Line Items]
Goodwill			$ 285,512	$ 180,128	$ 120,164
Short-term borrowings			532,291	389,467	305,422
Other Borrowings			$ 148,490	$ 0	$ 0
Monarch Community Bancorp [Member]
Schedule of Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		$ 32,171
Business Combination, Acquired Receivables, Fair Value		121,783
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		3,064
Business Combination, Deferred Tax Asset, Net Operating Loss		7,900
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent		2,314
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		6,972
Goodwill		5,383
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Mortgage Servicing Rights Asset		1,284
Core deposit intangible assets acquired, business combination		1,930
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets		182,801
Business Combination Deposits Assumed		144,311
Other Borrowings		8,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other		3,299
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities		155,610
Business Combination, Consideration Transferred		$ 27,191
Lake Michigan Financial Corp [Member]
Schedule of Purchase Price Allocation [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$ 39,301
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities	66,699
Business Combination, Acquired Receivables, Fair Value	985,542
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	13,673
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent	14,888
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	38,449
Goodwill	100,002
Core deposit intangible assets acquired, business combination	7,303
Bank Owned Life Insurance	23,844
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	1,289,701
Business Combination Deposits Assumed	924,697
Short-term borrowings	30,000
Other Borrowings	124,723
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	22,887
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	1,102,307
Business Combination, Consideration Transferred	$ 187,394

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Loans (Summary of the Aging Status of the Recorded Investment in Loans by Portfolio Segment/Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Originated Portfolio [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	$ 13,618	$ 20,595	$ 17,112
Financing receivable, recorded investment 61 to 89 days past due	3,940	3,352	3,432
Financing receivable, recorded investment accruing loans past due 90 days or more	1,779	2,073	1,535
Financing receivable, recorded investment, Nonaccrual loans	51,215	50,644	55,635
Financing receivable recorded investment, Total past due	70,552	76,664	77,714
Financing receivable, recorded investment, current	5,280,458	4,913,403	4,546,695
Financing receivable, recorded investment, Total loans	5,351,010	4,990,067	4,624,409
Originated Portfolio [Member] | Commercial [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	4,055	4,033	4,149
Financing receivable, recorded investment 61 to 89 days past due	2,317	743	1,901
Financing receivable, recorded investment accruing loans past due 90 days or more	711	170	15
Financing receivable, recorded investment, Nonaccrual loans	17,260	16,418	18,773
Financing receivable recorded investment, Total past due	24,343	21,364	24,838
Financing receivable, recorded investment, current	1,335,513	1,234,534	1,113,685
Financing receivable, recorded investment, Total loans	1,359,856	1,255,898	1,138,523
Originated Portfolio [Member] | Real estate commercial [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	2,754	7,515	5,933
Financing receivable, recorded investment 61 to 89 days past due	1,117	1,383	233
Financing receivable, recorded investment accruing loans past due 90 days or more	56	0	69
Financing receivable, recorded investment, Nonaccrual loans	25,287	24,966	25,361
Financing receivable recorded investment, Total past due	29,214	33,864	31,596
Financing receivable, recorded investment, current	1,334,212	1,170,562	1,123,319
Financing receivable, recorded investment, Total loans	1,363,426	1,204,426	1,154,915
Originated Portfolio [Member] | Real estate construction [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	413	262	0
Financing receivable, recorded investment 61 to 89 days past due	0	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	0	0	0
Financing receivable, recorded investment, Nonaccrual loans	247	162	160
Financing receivable recorded investment, Total past due	660	424	160
Financing receivable, recorded investment, current	95,730	138,316	88,415
Financing receivable, recorded investment, Total loans	96,390	138,740	88,575
Originated Portfolio [Member] | Land development [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	0	0	0
Financing receivable, recorded investment 61 to 89 days past due	0	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	0	0	0
Financing receivable, recorded investment, Nonaccrual loans	255	225	2,184
Financing receivable recorded investment, Total past due	255	225	2,184
Financing receivable, recorded investment, current	3,781	4,303	4,106
Financing receivable, recorded investment, Total loans	4,036	4,528	6,290
Originated Portfolio [Member] | Real estate residential [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	1,536	2,126	2,515
Financing receivable, recorded investment 61 to 89 days past due	0	54	0
Financing receivable, recorded investment accruing loans past due 90 days or more	424	557	376
Financing receivable, recorded investment, Nonaccrual loans	6,004	6,706	6,325
Financing receivable recorded investment, Total past due	7,964	9,443	9,216
Financing receivable, recorded investment, current	1,060,525	988,558	950,769
Financing receivable, recorded investment, Total loans	1,068,489	998,001	959,985
Originated Portfolio [Member] | Consumer installment [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	2,526	3,620	2,513
Financing receivable, recorded investment 61 to 89 days past due	302	512	313
Financing receivable, recorded investment accruing loans past due 90 days or more	0	0	0
Financing receivable, recorded investment, Nonaccrual loans	393	500	536
Financing receivable recorded investment, Total past due	3,221	4,632	3,362
Financing receivable, recorded investment, current	868,715	814,746	740,295
Financing receivable, recorded investment, Total loans	871,936	819,378	743,657
Originated Portfolio [Member] | Home equity [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	2,334	3,039	2,002
Financing receivable, recorded investment 61 to 89 days past due	204	660	985
Financing receivable, recorded investment accruing loans past due 90 days or more	588	1,346	1,075
Financing receivable, recorded investment, Nonaccrual loans	1,769	1,667	2,296
Financing receivable recorded investment, Total past due	4,895	6,712	6,358
Financing receivable, recorded investment, current	581,982	562,384	526,106
Financing receivable, recorded investment, Total loans	586,877	569,096	532,464
Acquired Portfolio [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	3,889	2,994	345
Financing receivable, recorded investment 61 to 89 days past due	695	461	49
Financing receivable, recorded investment accruing loans past due 90 days or more	15,934	19,892	10,447
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	20,518	23,347	10,841
Financing receivable, recorded investment, current	1,663,215	674,816	263,554
Financing receivable, recorded investment, Total loans	1,683,733	698,163	274,395
Acquired Portfolio [Member] | Commercial [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	690	133	0
Financing receivable, recorded investment 61 to 89 days past due	0	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	3,781	5,427	6,744
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	4,471	5,560	6,744
Financing receivable, recorded investment, current	390,546	93,423	67,116
Financing receivable, recorded investment, Total loans	395,017	98,983	73,860
Acquired Portfolio [Member] | Real estate commercial [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	969	2,014	0
Financing receivable, recorded investment 61 to 89 days past due	291	352	0
Financing receivable, recorded investment accruing loans past due 90 days or more	6,603	11,052	1,594
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	7,863	13,418	1,594
Financing receivable, recorded investment, current	872,224	339,804	141,856
Financing receivable, recorded investment, Total loans	880,087	353,222	143,450
Acquired Portfolio [Member] | Real estate construction [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	0	0	0
Financing receivable, recorded investment 61 to 89 days past due	0	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	205	0	0
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	205	0	0
Financing receivable, recorded investment, current	5,122	14,005	12,593
Financing receivable, recorded investment, Total loans	5,327	14,005	12,593
Acquired Portfolio [Member] | Land development [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	0	0	0
Financing receivable, recorded investment 61 to 89 days past due	0	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	1,352	1,653	1,977
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	1,352	1,653	1,977
Financing receivable, recorded investment, current	5,207	12,569	2,689
Financing receivable, recorded investment, Total loans	6,559	14,222	4,666
Acquired Portfolio [Member] | Real estate residential [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	1,077	156	0
Financing receivable, recorded investment 61 to 89 days past due	138	0	0
Financing receivable, recorded investment accruing loans past due 90 days or more	2,980	18	69
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	4,195	174	69
Financing receivable, recorded investment, current	237,483	112,215	10,343
Financing receivable, recorded investment, Total loans	241,678	112,389	10,412
Acquired Portfolio [Member] | Consumer installment [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	0	55	20
Financing receivable, recorded investment 61 to 89 days past due	56	3	0
Financing receivable, recorded investment accruing loans past due 90 days or more	5	454	0
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	61	512	20
Financing receivable, recorded investment, current	15,910	9,680	1,104
Financing receivable, recorded investment, Total loans	15,971	10,192	1,124
Acquired Portfolio [Member] | Home equity [Member]
Schedule representing the aging status of the recorded investment in loans by classes
Financing receivable, recorded investment 31 to 60 days past due	1,153	636	325
Financing receivable, recorded investment 61 to 89 days past due	210	106	49
Financing receivable, recorded investment accruing loans past due 90 days or more	1,008	1,288	63
Financing receivable, recorded investment, Nonaccrual loans	0	0	0
Financing receivable recorded investment, Total past due	2,371	2,030	437
Financing receivable, recorded investment, current	136,723	93,120	27,853
Financing receivable, recorded investment, Total loans	$ 139,094	$ 95,150	$ 28,290

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Borrowings Textuals (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	May. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Borrowings [Line Items]
Maximum original maturity term of short-term borrowings	30 days
Long-term Federal Home Loan Bank Advances	$ 81,469,000		$ 0	$ 0
Federal Home Loan Bank, Advances, Weighted Average Interest Rate	1.33%
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	$ 1,240,000,000
Federal Home Loan Bank, Advances, Maturities Summary, Due Remainder of Current Year	100,000
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two	7,100,000
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Three	47,100,000
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Four	17,100,000
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Five	100,000
Federal Home Loan Bank, Advances, Maturities Summary, Floating Rate, after Five Years	10,000,000
Securities Sold under Agreements to Repurchase	23,649,000		0	0
Securities Sold Under Agreements to Repurchase, Maturities Summary, Due Remainder of Current Year	3,200,000
Securities Sold Under Agreements to Repurchase, Maturities, Due in Year Two	8,300,000
Securities Sold Under Agreements to Repurchase, Maturities, Due in Year Three	12,100,000
nonrevolving line of credit	$ 25,000,000		0	0
Line of Credit Facility, Interest Rate at Period End	2.134%
Trust Preferred Investment Security of Non Public Bank Company		$ 10,000,000	10,000,000	10,000,000
subordinated debt par value	$ 1,000
Subordinated Debt	18,372,000		$ 0	$ 0
Lake Michigan Financial Corp [Member]
Borrowings [Line Items]
Long-term Federal Home Loan Bank Advances		81,500,000
Securities Sold under Agreements to Repurchase		$ 23,700,000
LMFCTI [Member]
Borrowings [Line Items]
Subordinated Debt	$ 10,300,000
Subordinated Borrowing, Minimum Interest Rate plus LIBOR	3.45%
Subordinated Borrowing, Interest Rate, Effective Percentage	3.73%
LMFCTII [Member]
Borrowings [Line Items]
Subordinated Debt	$ 8,200,000
Subordinated Borrowing, Minimum Interest Rate plus LIBOR	2.70%
Subordinated Borrowing, Interest Rate, Effective Percentage	2.98%

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Intangible Assets (Activity for Capitalized MSRs) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Capitalized MSRs [Roll Forward]
Balance at beginning of period			$ 33,080
Amortization			(3,787)	$ (1,391)
Balance at end of period	$ 41,201	$ 12,454	41,201	12,454
Mortgage servicing rights [Member]
Capitalized MSRs [Roll Forward]
Balance at beginning of period	11,583	3,316	12,217	3,423
Acquired in Monarch acquisition	1,284	0	1,284	0
Additions	415	278	815	421
Amortization	(1,175)	(250)	(2,209)	(500)
Change in Valuation Allowance for Impairment of MSRs	(200)	0	(200)	0
Balance at end of period	$ 12,307	$ 3,344	$ 12,307	$ 3,344

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Loans (Summary of Recorded Investment of Commercial Loans by Risk Rating Categories) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	$ 4,110,698	$ 3,084,024	$ 2,622,872
Commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,754,873	1,354,881	1,212,383
Real estate commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	2,243,513	1,557,648	1,298,365
Real estate construction [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	101,717	152,745	101,168
Land development [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	10,595	18,750	10,956
Originated Portfolio [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	2,823,708	2,603,592	2,388,303
Originated Portfolio [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	2,640,180	2,423,966	2,218,823
Originated Portfolio [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	67,299	74,942	47,143
Originated Portfolio [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	73,180	62,913	75,859
Originated Portfolio [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	43,045	41,762	46,251
Originated Portfolio [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	4	9	227
Originated Portfolio [Member] | Commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,359,856	1,255,898	1,138,523
Originated Portfolio [Member] | Commercial [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,269,091	1,171,817	1,067,000
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	32,189	37,800	15,459
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	41,316	29,863	37,291
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	17,260	16,417	18,560
Originated Portfolio [Member] | Commercial [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	1	213
Originated Portfolio [Member] | Real estate commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,363,426	1,204,426	1,154,915
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,273,725	1,114,529	1,063,555
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	34,677	34,996	30,053
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	29,737	29,935	35,946
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	25,283	24,958	25,347
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	4	8	14
Originated Portfolio [Member] | Real estate construction [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	96,390	138,740	88,575
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	94,894	134,668	85,754
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	1,408	666
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,249	2,502	1,995
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	247	162	160
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Originated Portfolio [Member] | Land development [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	4,036	4,528	6,290
Originated Portfolio [Member] | Land development [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	2,470	2,952	2,514
Originated Portfolio [Member] | Land development [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	433	738	965
Originated Portfolio [Member] | Land development [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	878	613	627
Originated Portfolio [Member] | Land development [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	255	225	2,184
Originated Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,286,990	480,432	234,569
Acquired Portfolio [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,178,453	423,592	208,030
Acquired Portfolio [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	52,279	21,968	10,591
Acquired Portfolio [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	44,317	16,764	10,070
Acquired Portfolio [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	11,941	18,108	5,878
Acquired Portfolio [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	395,017	98,983	73,860
Acquired Portfolio [Member] | Commercial [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	347,914	76,780	59,993
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	29,412	12,687	6,769
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	13,910	4,089	3,197
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	3,781	5,427	3,901
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Real estate commercial [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	880,087	353,222	143,450
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	820,400	321,018	132,898
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	22,796	8,698	3,822
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	30,288	12,478	6,730
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	6,603	11,028	0
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Real estate construction [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	5,327	14,005	12,593
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	5,122	14,005	12,593
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	205	0	0
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	0	0	0
Acquired Portfolio [Member] | Land development [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	6,559	14,222	4,666
Acquired Portfolio [Member] | Land development [Member] | Risk Grades 1-5 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	5,017	11,789	2,546
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 6 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	71	583	0
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 7 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	119	197	143
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 8 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	1,352	1,653	1,977
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member]
Recorded investment of loans in commercial loan portfolio by risk rating categories
Recorded investment (loan balance), Commercial, Total	$ 0	$ 0	$ 0

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net income	$ 36,859	$ 30,049
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	3,000	3,100
Gains on sales of loans	(3,375)	(1,680)
Proceeds from sales of loans	119,683	59,490
Loans originated for sale	(111,903)	(58,920)
Net gains from sales/writedowns of other real estate and repossessed assets	(1,578)	(856)
Depreciation of premises and equipment	5,239	4,238
Amortization of intangible assets	3,787	1,391
Net gains on sale of investment securities	(607)	0
Net amortization of premiums and discounts on investment securities	2,759	2,129
Share-based compensation expense	1,461	1,173
Net increase in interest receivable and other assets	(11,695)	(1,503)
Net increase (decrease) in interest payable and other liabilities	(15,727)	754
Net cash provided by operating activities	27,903	39,365
Investment securities – available-for-sale:
Proceeds from sales	13,173	0
Proceeds from maturities, calls and principal reductions	113,973	71,919
Investment securities – held-to-maturity:
Proceeds from maturities, calls and principal reductions	54,481	66,230
Purchases	(205,286)	(100,862)
Net increase in loans	(250,997)	(260,201)
Proceeds from sales of other real estate and repossessed assets	7,934	4,879
Purchases of premises and equipment, net of disposals	(3,333)	(3,221)
Cash Acquired in Excess of Payments to Acquire Business	16,551	0
Net cash used in investing activities	(253,504)	(221,256)
Financing Activities
Net increase in interest- and noninterest-bearing demand deposits and savings accounts	217,719	23,559
Net decrease in time deposits	(72,795)	(53,031)
Net increase (decrease) in short-term borrowings	103,824	(22,006)
Proceeds from (Repayments of) Other Debt	25,000	0
Cash dividends paid	(17,049)	(13,769)
Proceeds from Issuance of Common Stock	0	76,175
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld	1,462	1,163
Cash paid for payroll taxes upon conversion of share-based awards	(546)	(694)
Net cash provided by financing activities	257,615	11,397
Net increase (decrease) in cash and cash equivalents	32,014	(170,494)
Cash and cash equivalents at beginning of period	183,020	310,788
Cash and cash equivalents at end of period	215,034	140,294
Supplemental Disclosure of Cash Flow Information:
Interest paid	6,592	7,719
Loans transferred to other real estate and repossessed assets	5,908	4,639
Transfer Of Other Real Estate, Closed Branch Offices	359	0
Income Taxes Paid	20,800	12,900
Fair Value of Tangible Assets Acquired	1,284,552	0
Goodwill and Identifiable Intangible Assets Acquired	116,478	0
Liabilities Assumed	1,257,917	0
Stock Issued	$ 159,904	$ 0

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Intangible Assets (Textual) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	May. 31, 2015	Apr. 01, 2015	Dec. 31, 2014	Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 285,512			$ 180,128	$ 120,164
Finite-Lived Intangible Assets, Remaining Amortization Period	10 years
Intangible Assets (Textual) [Abstract]
Impairment valuation allowance	$ 0			200	0
Core deposit intangible assets [Member]
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract]
2015	2,400
2016	4,300
2017	3,700
2018	3,500
2019	3,300
2020 and thereafter	11,200
Mortgage servicing rights [Member]
Intangible Assets (Textual) [Abstract]
Impairment valuation allowance	$ 0			$ 200	$ 0
Lake Michigan Financial Corp [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 100,002
Core deposit intangible assets acquired, business combination		$ 7,303
Monarch Community Bancorp [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 5,383
Core deposit intangible assets acquired, business combination			$ 1,930

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Investment Securities (Maturities of Debt Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Investment Securities Available-for-Sale:
Due in one year or less, Amortized Cost	$ 198,939
Due after one year through five years, Amortized Cost	411,399
Due after five years through ten years, Amortized Cost	68,583
Due after ten years, Amortized Cost	5,818
Preferred stock, Amortized Cost	1,389
Total Available-for-sale Securities, Debt Maturities, Amortized Cost	686,128
Due in one year or less , Fair Value	198,680
Due after one year through five years, Fair Value	411,247
Due after five years through ten years, Fair Value	68,295
Due after ten years, Fair Value	5,823
Preferred stock, Fair Value	1,661
Total Available-for-sale securities, Debt maturities, Fair Value	685,706
Investment Securities Held-to-Maturity:
Due in one year or less, Amortized Cost	55,922
Due after one year through five years, Amortized Cost	209,886
Due after five years through ten years, Amortized Cost	127,398
Due after ten years, Amortized Cost	76,631
Total Held-to-maturity securities, Debt maturities, Amortized Cost	469,837	$ 316,413	$ 308,130
Due in one year or less , Fair Value	56,043
Due after one year through five years, Fair Value	209,768
Due after five years through ten years, Fair Value	125,775
Due after ten years, Fair Value	74,992
Total Held-to-maturity securities, Debt maturities, Fair Value	$ 466,578	$ 315,740	$ 303,961

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Borrowings Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Borrowings [Abstract]

Schedule of Short-term Debt [Table Text Block]

A summary of the Corporation's short-term borrowings, which generally have an original term to maturity of 30 days or less, follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Short-term borrowings:
Securities sold under agreements to repurchase with customers	$	305,291	$	304,467	$	293,422
Short-term FHLB advances	205,000		60,000		—
Federal funds purchased	22,000		25,000		12,000
Total short-term borrowings	$	532,291	$	389,467	$	305,422

Schedule of Other Borrowings [Table Text Block]

The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch. A summary of the Corporation's other borrowings follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Other borrowings:
Long-term FHLB advances	$	81,469	$	—	$	—
Securities sold under agreements to repurchase	23,649		—		—
Line of credit	25,000		—		—
Subordinated debentures	18,372		—		—
Total other borrowings	$	148,490	$	—	$	—

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Components of accumulated other comprehensive loss, net of related tax benefit/expense

The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows:

	June 30, 2015			December 31, 2014			June 30, 2014
	(In thousands)
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014	$	(274	)	$	(210	)	$	800
Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014	(30,830		)	(32,243		)	(18,788		)
Accumulated other comprehensive loss	$	(31,104	)	$	(32,453	)	$	(17,988	)

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Loans (Schedule of the Allowance for Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment
Beginning balance	$ 75,256	$ 78,473	$ 75,683	$ 79,072
Provision for loan losses	1,500	1,500	3,000	3,100
Charge-offs	(2,724)	(3,375)	(5,867)	(6,847)
Recoveries	909	1,195	2,125	2,468
Ending balance	74,941	77,793	74,941	77,793
Allowance for loan losses
Loans individually evaluated for impairment related to allowance for loan losses					$ 1,581	$ 1,338	$ 1,719
Loans collectively evaluated for impairment related to allowance for loan losses					73,360	73,845	75,574
Loans acquired with deteriorated credit quality related to allowance for loan losses					0	500	500
Total	75,256	78,473	75,683	79,072	74,941	75,683	77,793
Loans individually evaluated for impairment related to recorded investment (loan balance)					106,769	105,902	107,176
Loans collectively evaluated for impairment related to recorded investment (loan balance)					5,244,241	4,884,165	4,517,233
Loans acquired with deteriorated credit quality related to recorded investment (loan balance)					1,683,733	698,163	274,395
Total loans					7,034,743	5,688,230	4,898,804
Commercial Loan Portfolio [Member]
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment
Beginning balance	46,819	45,010	44,156	44,482
Provision for loan losses	(626)	439	2,967	1,399
Charge-offs	(915)	(1,814)	(2,419)	(3,023)
Recoveries	249	589	823	1,366
Ending balance	45,527	44,224	45,527	44,224
Allowance for loan losses
Loans individually evaluated for impairment related to allowance for loan losses					1,321	1,003	1,340
Loans collectively evaluated for impairment related to allowance for loan losses					44,206	43,153	42,884
Loans acquired with deteriorated credit quality related to allowance for loan losses					0	0	0
Total	46,819	45,010	44,156	44,482	45,527	44,156	44,224
Loans individually evaluated for impairment related to recorded investment (loan balance)					85,799	86,221	86,823
Loans collectively evaluated for impairment related to recorded investment (loan balance)					2,737,909	2,517,371	2,301,480
Loans acquired with deteriorated credit quality related to recorded investment (loan balance)					1,286,990	480,432	234,569
Total loans					4,110,698	3,084,024	2,622,872
Consumer Loan Portfolio [Member]
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment
Beginning balance	24,579	29,233	28,803	30,145
Provision for loan losses	(109)	1,287	(3,336)	2,142
Charge-offs	(1,809)	(1,561)	(3,448)	(3,824)
Recoveries	660	606	1,302	1,102
Ending balance	23,321	29,565	23,321	29,565
Allowance for loan losses
Loans individually evaluated for impairment related to allowance for loan losses					260	335	379
Loans collectively evaluated for impairment related to allowance for loan losses					23,061	27,968	28,686
Loans acquired with deteriorated credit quality related to allowance for loan losses					0	500	500
Total	24,579	29,233	28,803	30,145	23,321	28,803	29,565
Loans individually evaluated for impairment related to recorded investment (loan balance)					20,970	19,681	20,353
Loans collectively evaluated for impairment related to recorded investment (loan balance)					2,506,332	2,366,794	2,215,753
Loans acquired with deteriorated credit quality related to recorded investment (loan balance)					396,743	217,731	39,826
Total loans					2,924,045	2,604,206	2,275,932
Unallocated [Member]
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment
Beginning balance	3,858	4,230	2,724	4,445
Provision for loan losses	2,235	(226)	3,369	(441)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	6,093	4,004	6,093	4,004
Allowance for loan losses
Loans individually evaluated for impairment related to allowance for loan losses					0	0	0
Loans collectively evaluated for impairment related to allowance for loan losses					6,093	2,724	4,004
Loans acquired with deteriorated credit quality related to allowance for loan losses					0	0	0
Total	$ 3,858	$ 4,230	$ 2,724	$ 4,445	6,093	2,724	4,004
Loans individually evaluated for impairment related to recorded investment (loan balance)					0	0	0
Loans collectively evaluated for impairment related to recorded investment (loan balance)					0	0	0
Loans acquired with deteriorated credit quality related to recorded investment (loan balance)					0	0	0
Total loans					$ 0	$ 0	$ 0

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Investment Securities (Summary of Investment Securities with Gross Unrealized Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	$ 530,665	$ 317,885	$ 156,938
Less Than 12 Months, Gross Unrealized Losses	7,392	3,998	4,182
12 Months or More, Fair Value	146,094	302,630	370,668
12 Months or More, Gross Unrealized Losses	3,687	7,295	8,646
Total, Fair Value	676,759	620,515	527,606
Total, Gross Unrealized Losses	11,079	11,293	12,828
Government sponsored agencies [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	24,789	166,963	2,377
Less Than 12 Months, Gross Unrealized Losses	163	406	2
12 Months or More, Fair Value	14,715	31,927	44,786
12 Months or More, Gross Unrealized Losses	37	105	139
Total, Fair Value	39,504	198,890	47,163
Total, Gross Unrealized Losses	200	511	141
State and political subdivisions [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	258,503	62,310	92,279
Less Than 12 Months, Gross Unrealized Losses	5,433	3,348	4,047
12 Months or More, Fair Value	63,584	36,847	71,421
12 Months or More, Gross Unrealized Losses	2,493	1,226	2,282
Total, Fair Value	322,087	99,157	163,700
Total, Gross Unrealized Losses	7,926	4,574	6,329
Residential mortgage-backed securities [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	187,858	17,276	10,144
Less Than 12 Months, Gross Unrealized Losses	1,592	52	60
12 Months or More, Fair Value	3,643	180,194	197,042
12 Months or More, Gross Unrealized Losses	102	1,491	1,362
Total, Fair Value	191,501	197,470	207,186
Total, Gross Unrealized Losses	1,694	1,543	1,422
Collateralized Mortgage Obligations [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	49,845	63,077	47,142
Less Than 12 Months, Gross Unrealized Losses	155	179	68
12 Months or More, Fair Value	48,881	31,620	35,722
12 Months or More, Gross Unrealized Losses	826	1,015	1,060
Total, Fair Value	98,726	94,697	82,864
Total, Gross Unrealized Losses	981	1,194	1,128
Corporate bonds [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	9,670	0	4,996
Less Than 12 Months, Gross Unrealized Losses	49	0	5
12 Months or More, Fair Value	14,971	14,952	14,922
12 Months or More, Gross Unrealized Losses	29	48	78
Total, Fair Value	24,641	14,952	19,918
Total, Gross Unrealized Losses	78	48	83
Trust Preferred Securities [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value	0	0	0
Less Than 12 Months, Gross Unrealized Losses	0	0	0
12 Months or More, Fair Value	300	7,090	6,775
12 Months or More, Gross Unrealized Losses	200	3,410	3,725
Total, Fair Value	300	7,090	6,775
Total, Gross Unrealized Losses	$ 200	3,410	$ 3,725
US Treasury Securities [Member]
Summary of continuous unrealized loss position of securities
Less Than 12 Months, Fair Value		8,259
Less Than 12 Months, Gross Unrealized Losses		13
12 Months or More, Fair Value		0
12 Months or More, Gross Unrealized Losses		0
Total, Fair Value		8,259
Total, Gross Unrealized Losses		$ 13

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Regulatory Capital (Tables)

6 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

Corporation's and Chemical Bank's actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy

The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy:

	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Well Capitalized Under Prompt Corrective Action Regulations
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(Dollars in thousands)
June 30, 2015
Total Capital to Risk-Weighted Assets:
Corporation	$	816,595	11.7	%	$	559,273	8.0	%	N/A		N/A
Chemical Bank	713,999		12.1		471,422		8.0		$	589,277	10.0	%
The Bank of Holland	72,506		9.5		61,028		8.0		76,285		10.0
The Bank of Northern Michigan	32,779		10.1		25,878		8.0		32,347		10.0
Tier 1 Capital to Risk-Weighted Assets:
Corporation	741,654		10.6		419,455		6.0		N/A		N/A
Chemical Bank	640,324		10.9		353,566		6.0		471,422		8.0
The Bank of Holland	72,506		9.5		45,771		6.0		61,028		8.0
The Bank of Northern Michigan	32,779		10.1		19,408		6.0		25,878		8.0
Common Equity Tier 1 Capital to Risk-Weighted Assets:
Corporation	723,654		10.4		314,591		4.5		N/A		N/A
Chemical Bank	640,324		10.9		265,175		4.5		383,030		6.5
The Bank of Holland	72,506		9.5		34,328		4.5		49,585		6.5
The Bank of Northern Michigan	32,779		10.1		14,556		4.5		21,025		6.5
Leverage Ratio:
Corporation	741,654		9.4		314,344		4.0		N/A		N/A
Chemical Bank	640,324		8.5		300,703		4.0		375,878		5.0
The Bank of Holland	72,506		9.4		30,710		4.0		38,388		5.0
The Bank of Northern Michigan	32,779		9.1		14,421		4.0		18,026		5.0
December 31, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	705,130	12.4	%	$	456,302	8.0	%	N/A		N/A
Chemical Bank	654,031		11.5		455,633		8.0		$	569,541	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	633,779		11.1		228,151		4.0		N/A		N/A
Chemical Bank	582,783		10.2		227,816		4.0		341,725		6.0
Leverage Ratio:
Corporation	633,779		9.3		273,226		4.0		N/A		N/A
Chemical Bank	582,783		8.5		273,048		4.0		341,310		5.0
June 30, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	748,332	15.3	%	$	391,911	8.0	%	N/A		N/A
Chemical Bank	601,561		12.3		391,305		8.0		$	489,131	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	686,892		14.0		195,955		4.0		N/A		N/A
Chemical Bank	540,214		11.0		195,653		4.0		293,479		6.0
Leverage Ratio:
Corporation	686,892		11.2		244,757		4.0		N/A		N/A
Chemical Bank	540,214		8.8		244,604		4.0		305,755		5.0

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Summary of assets measured at fair value on a recurring basis

For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,294	$	—	$	—	$	8,294
Government sponsored agencies	—		227,907		—		227,907
State and political subdivisions	—		26,965		—		26,965
Residential mortgage-backed securities	—		212,669		—		212,669
Collateralized mortgage obligations	—		167,032		—		167,032
Corporate bonds	—		39,678		—		39,678
Preferred stock and trust preferred securities	—		3,161		—		3,161
Total investment securities – available-for-sale	8,294		677,412		—		685,706
Loans held-for-sale	—		7,798		—		7,798
Total assets measured at fair value on a recurring basis	$	8,294	$	685,210	$	—	$	693,504
December 31, 2014
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,259	$	—	$	—	$	8,259
Government sponsored agencies	—		263,503		—		263,503
State and political subdivisions	—		46,227		—		46,227
Residential mortgage-backed securities	—		239,807		—		239,807
Collateralized mortgage obligations	—		144,383		—		144,383
Corporate bonds	—		45,095		—		45,095
Preferred stock	—		1,590		—		1,590
Total investment securities – available-for-sale	8,259		740,605		—		748,864
Loans held-for-sale	—		9,128		—		9,128
Total assets measured at fair value on a recurring basis	$	8,259	$	749,733	$	—	$	757,992
June 30, 2014
Investment securities – available-for-sale:
Government sponsored agencies	$	—	$	88,708	$	—	$	88,708
State and political subdivisions	—		41,608		—		41,608
Residential mortgage-backed securities	—		265,368		—		265,368
Collateralized mortgage obligations	—		153,283		—		153,283
Corporate bonds	—		65,352		—		65,352
Preferred stock	—		1,656		—		1,656
Total investment securities – available-for-sale	—		615,975		—		615,975
Loans held-for-sale	—		6,329		—		6,329
Total assets measured at fair value on a recurring basis	$	—	$	622,304	$	—	$	622,304

Summary of assets measured at fair value on a nonrecurring basis

For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Impaired originated loans	$	—	$	—	$	24,517	$	24,517
Other real estate/repossessed assets	—		—		14,197		14,197
Total	$	—	$	—	$	38,714	$	38,714
December 31, 2014
Impaired originated loans	$	—	$	—	$	21,323	$	21,323
Other real estate/repossessed assets	—		—		14,205		14,205
Mortgage servicing rights	—		—		8,691		8,691
Total	$	—	$	—	$	44,219	$	44,219
June 30, 2014
Impaired originated loans	$	—	$	—	$	29,789	$	29,789
Other real estate/repossessed assets	—		—		10,392		10,392
Total	$	—	$	—	$	40,181	$	40,181

Summary of carrying amounts and estimated fair values of the financial instruments

A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows:

	Level in Fair Value Measurement Hierarchy	June 30, 2015				December 31, 2014				June 30, 2014
		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(In thousands)
Assets:
Cash and cash equivalents	Level 1	$	215,034	$	215,034	$	183,020	$	183,020	$	140,294	$	140,294
Investment securities:
Available-for-sale	Level 1	8,294		8,294		8,259		8,259		—		—
Available-for-sale	Level 2	677,412		677,412		740,605		740,605		615,975		615,975
Held-to-maturity	Level 2	469,337		466,278		305,913		308,650		297,630		297,186
Held-to-maturity	Level 3	500		300		10,500		7,090		10,500		6,775
Nonmarketable equity securities	NA	36,142		36,142		27,369		27,369		25,572		25,572
Loans held-for-sale	Level 2	7,798		7,798		9,128		9,128		6,329		6,329
Net loans	Level 3	6,959,802		6,969,655		5,612,547		5,623,454		4,821,011		4,826,672
Interest receivable	Level 2	21,668		21,668		17,492		17,492		15,827		15,827
Liabilities:
Deposits without defined maturities	Level 2	$	5,547,764	$	5,547,764	$	4,741,024	$	4,741,024	$	3,814,013	$	3,814,013
Time deposits	Level 3	1,745,215		1,745,215		1,337,947		1,340,015		1,278,900		1,285,992
Interest payable	Level 2	1,557		1,557		755		755		735		735
Short-term borrowings	Level 2	532,291		532,291		389,467		389,467		305,422		305,422
Other borrowings	Level 2	106,469		106,469		—		—		—		—
Other borrowings	Level 3	42,021		42,021		—		—		—		—

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Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Cash dividends declared per share	$ 0.24	$ 0.23	$ 0.48	$ 0.46

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Numerator and denominator of the basic and diluted earnings per common share computations

The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Numerator for both basic and diluted earnings per common share, net income	$	19,024	$	16,236	$	36,859	$	30,049
Denominator for basic earnings per common share, weighted average common shares outstanding	35,162		30,068		33,992		29,947
Weighted average common stock equivalents	235		211		235		212
Denominator for diluted earnings per common share	35,397		30,279		34,227		30,159
Basic earnings per common share	$	0.54	$	0.54	$	1.08	$	1.00
Diluted earnings per common share	0.54		0.54		1.08		1.00

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Acquisitions (Textual) (Details) $ / shares in Units, $ in Thousands						3 Months Ended	6 Months Ended
	May. 31, 2015 USD ($) Offices $ / shares shares	Apr. 01, 2015 USD ($) Offices shares	Oct. 31, 2014 USD ($) Offices	Dec. 07, 2012 USD ($) Branches	Apr. 30, 2010 USD ($) Offices	Jun. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)
Business Acquisition [Line Items]
Goodwill						$ 285,512	$ 285,512	$ 180,128	$ 120,164
Lake Michigan Financial Corp [Member]
Business Acquisition [Line Items]
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio	$ 986,100
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio	$ 189,600
Business Acquisition, Share Price | $ / shares	$ 16.64
Exchange Ratio of Common Stock Issued, Business Combinations	1.326
Business Combination, Acquired Receivables, Fair Value	$ 985,542
Certain Loans Acquired in Transfer, Nonaccretable Difference	22,600
Acquisition purchase price	$ 187,394
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares	4,322,101
Goodwill	$ 100,002
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset	(7,303)
Intangibles acquired	$ 7,303
Service provided by acquiree bank through number of branches | Offices	5
Assets of acquiree company	$ 1,240,000
Deposits of acquiree company	924,697
Core deposit and other intangible assets acquired in business combination	7,900
Business Combination, Pro Forma Information, Net Interest Income of Acquiree since Acquisition Date						3,200
Business Combination, Pro Forma Information, Noninterest Income of Acquiree since Acquisition Date						300
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual						1,100
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed						2,000	2,300
Outstanding contractual principal balance of acquired loan portfolio						990,000	990,000
Carrying amount of acquired loan portfolio						967,000	967,000
Business Combination, Acquired Receivables, Gross Contractual Amount	1,010,000
Interest Payments Receivable of Acquired Loan Portfolio	190,200
Business Combination, Acquired Receivables, Estimated Uncollectible	22,000
Business Combination, Consideration Transferred, Value of Stock and Options Issued	132,900
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock	$ 54,478
Monarch Community Bancorp [Member]
Business Acquisition [Line Items]
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio		$ 122,600
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio		$ 37,100
Exchange Ratio of Common Stock Issued, Business Combinations		0.0982
Business Combination, Acquired Receivables, Fair Value		$ 121,783
Certain Loans Acquired in Transfer, Nonaccretable Difference		7,100
Acquisition purchase price		$ 27,191
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares		860,575
Goodwill		$ 5,383
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset		(1,930)
Intangibles acquired		$ 1,930
Service provided by acquiree bank through number of branches | Offices		5
Assets of acquiree company		$ 183,000
Deposits of acquiree company		144,311
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed						1,500	2,300
Outstanding contractual principal balance of acquired loan portfolio						126,000	126,000
Carrying amount of acquired loan portfolio						119,000	119,000
Business Combination, Acquired Receivables, Gross Contractual Amount		128,900
Interest Payments Receivable of Acquired Loan Portfolio		37,800
Business Combination, Acquired Receivables, Estimated Uncollectible		6,300
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock		203
Operating Loss Carryforwards		22,600
Tax Credit Carryforwards Not Expected to Be Utilized		$ 1,700
Northwestern Bancorp [Member]
Business Acquisition [Line Items]
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio			$ 481,000
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio			104,000
Business Combination, Acquired Receivables, Fair Value			475,000
Certain Loans Acquired in Transfer, Nonaccretable Difference			34,000
Acquisition purchase price			121,000
Goodwill			60,000
Intangibles acquired			$ 12,900
Service provided by acquiree bank through number of branches | Offices			25
Assets of acquiree company			$ 815,000
Deposits of acquiree company			794,000
Outstanding contractual principal balance of acquired loan portfolio						415,000	415,000	485,000
Carrying amount of acquired loan portfolio						382,000	382,000	452,000
Business Combination, Acquired Receivables, Gross Contractual Amount			507,000
Interest Payments Receivable of Acquired Loan Portfolio			112,000
Business Combination, Acquired Receivables, Estimated Uncollectible			$ 26,000
Independent Bank [Member]
Business Acquisition [Line Items]
Number of branches acquired (branches) | Branches				21
Deposits acquired				$ 404,000
Loans acquired				44,000
Acquisition purchase price				8,100
Premium paid on deposits purchased				$ 11,500
Premium paid as a percentage of deposits purchased (percent)				2.85%
Discount on loans purchased (percent)				1.75%
Goodwill				$ 6,800
Independent Bank [Member] | Core Deposits [Member]
Business Acquisition [Line Items]
Intangibles acquired				$ 5,600
OAK [Member]
Business Acquisition [Line Items]
Loans acquired					$ 627,000
Acquisition purchase price					$ 83,700
Service provided by acquiree bank through number of branches | Offices					14
Assets of acquiree company					$ 820,000
Deposits of acquiree company					693,000
Brokered deposits of acquiree company					193,000
Contractually required principal payments of loan portfolio, acquisition date					683,000
Acquired loan portfolio acquisition date fair value					$ 627,000
Outstanding contractual principal balance of acquired loan portfolio						236,000	236,000	268,000	298,000
Carrying amount of acquired loan portfolio						$ 215,000	$ 215,000	$ 246,000	$ 274,000

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Loans (Summary of TDRs) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of corporation's TDRs
Total TDRs	$ 99,428	$ 101,322	$ 104,383
Commercial Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	74,751	77,047	80,696
Consumer Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	24,677	24,275	23,687
Performing [Member]
Schedule of corporation's TDRs
Total TDRs	45,808	45,664	44,133
Performing [Member] | Commercial Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	28,203	29,179	29,296
Performing [Member] | Consumer Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	17,605	16,485	14,837
Nonperforming [Member]
Schedule of corporation's TDRs
Total TDRs	17,912	18,467	16,565
Nonperforming [Member] | Commercial Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	14,547	15,271	11,049
Nonperforming [Member] | Consumer Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	3,365	3,196	5,516
Substandard Nonaccrual [Member]
Schedule of corporation's TDRs
Total TDRs	35,708	37,191	43,685
Substandard Nonaccrual [Member] | Commercial Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	32,001	32,597	40,351
Substandard Nonaccrual [Member] | Consumer Loan Portfolio [Member]
Schedule of corporation's TDRs
Total TDRs	$ 3,707	$ 4,594	$ 3,334

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Fair Value Measurements (Textual) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Fair Value Measurements (Textual) [Abstract]
Impairment of goodwill	$ 0	$ 0	$ 0
Valuation Allowance on Mortgage Servicing Rights	0	200	0
Impairment identified for intangible assets	0		0
Core deposit intangible assets [Member]
Fair Value Measurements (Textual) [Abstract]
Impairment identified for intangible assets	$ 0	0	0
Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Expected life of intangible assets	15 years
Minimum [Member]
Fair Value Measurements (Textual) [Abstract]
Expected life of intangible assets	10 years
Total Impaired Loans [Member] | Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Percentage of discount factors used to determine fair value	80.00%
Total Impaired Loans [Member] | Minimum [Member]
Fair Value Measurements (Textual) [Abstract]
Percentage of discount factors used to determine fair value	70.00%
Other Real Estate and Repossessed Assets [Member] | Maximum [Member]
Fair Value Measurements (Textual) [Abstract]
Percentage of discount factors used to determine fair value	75.00%
Other Real Estate and Repossessed Assets [Member] | Minimum [Member]
Fair Value Measurements (Textual) [Abstract]
Percentage of discount factors used to determine fair value	70.00%
Fair Value Measurements Recurring [Member]
Fair Value Measurements (Textual) [Abstract]
Liabilities recorded at fair value	$ 0	0	0
Fair Value Measurements Nonrecurring [Member]
Fair Value Measurements (Textual) [Abstract]
Liabilities recorded at fair value	$ 0	$ 0	$ 0

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Consolidated Statements of Financial Position - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Cash and cash equivalents:
Cash and cash due from banks	$ 167,054	$ 144,892	$ 139,023
Interest-bearing deposits with the Federal Reserve Bank and other banks	47,980	38,128	1,271
Total cash and cash equivalents	215,034	183,020	140,294
Investment securities:
Available-for-sale, at fair value	685,706	748,864	615,975
Held-to-maturity (fair value - $466,578 at June 30, 2015, $315,740 at December 31, 2014 and $303,961 at June 30, 2014)	469,837	316,413	308,130
Total investment securities	1,155,543	1,065,277	924,105
Loans held-for-sale, at fair value	7,798	9,128	6,329
Loans	7,034,743	5,688,230	4,898,804
Allowance for loan losses	(74,941)	(75,683)	(77,793)
Net loans	6,959,802	5,612,547	4,821,011
Premises and equipment (net of accumulated depreciation of $112,530 at June 30, 2015, $108,826 at December 31, 2014 and $104,225 at June 30, 2014)	111,968	97,496	74,291
Goodwill	285,512	180,128	120,164
Other intangible assets	41,201	33,080	12,454
Interest receivable and other assets	243,867	141,467	133,327
Total Assets	9,020,725	7,322,143	6,231,975
Deposits:
Noninterest-bearing	1,860,863	1,591,661	1,283,439
Interest-bearing	5,432,116	4,487,310	3,809,474
Total deposits	7,292,979	6,078,971	5,092,913
Interest payable and other liabilities	66,174	56,572	40,142
Short-term borrowings	532,291	389,467	305,422
Other Borrowings	148,490	0	0
Total liabilities	8,039,934	6,525,010	5,438,477
Shareholders’ equity:
Preferred Stock, No Par Value: Authorized – 2,000,000 shares at June 30, 2015 and 200,000 shares at both December 31, 2014 and June 30, 2014, none issued	0	0	0
Common Stock, $1 par value: Issued and outstanding — 38,110,136 shares at June 30, 2015, 32,774,420 shares at December 31, 2014 and 32,760,088 shares at June 30, 2014	38,110	32,774	32,760
Additional paid-in capital	722,329	565,166	563,393
Retained earnings	251,456	231,646	215,333
Accumulated other comprehensive loss	(31,104)	(32,453)	(17,988)
Total shareholders’ equity	980,791	797,133	793,498
Total Liabilities and Shareholders’ Equity	$ 9,020,725	$ 7,322,143	$ 6,231,975

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Investment Securities (Textual) (Details) - USD ($) $ in Millions	May. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of Investments [Line Items]
Trust preferred investment security of Non Public bank company	$ 10.0	$ 10.0	$ 10.0

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Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Tax expense (benefit) on net unrealized gains (losses) on investment securities available-for-sale	$ (1,084)	$ 909	$ 177	$ 1,766
Tax expense (benefit) on reclassification adjustment for realized gains on sale of investment securities available-for-sale	(10)	0	(212)	0
Tax expense (benefit) on adjustment for pension and other postretirement benefits	$ 380	$ (202)	$ 761	$ (403)

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Intangible Assets (Amortization Expense of Core Deposit Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets
Carrying amount	$ 41,201	$ 12,454	$ 41,201	$ 12,454	$ 33,080
Amortization of intangible assets			3,787	1,391
Core deposit intangible assets [Member]
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets
Gross original amount	39,355	18,659	39,355	18,659	31,550
Accumulated amortization	11,002	9,549	11,002	9,549	10,687
Carrying amount	28,353	9,110	28,353	9,110	$ 20,863
Amortization of intangible assets	$ 952	$ 446	$ 1,743	$ 891

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Significant Accounting Policies (Details)			3 Months Ended		6 Months Ended
	May. 31, 2015 USD ($)	Apr. 01, 2015 USD ($)	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($) shares	Jun. 30, 2015 USD ($) Bank Pools shares	Jun. 30, 2014 USD ($) shares	Apr. 20, 2015 shares	Mar. 31, 2015 shares	Dec. 31, 2014 USD ($) shares	Jun. 24, 2014 USD ($) $ / shares shares	Sep. 18, 2013 USD ($) $ / shares shares	Apr. 20, 2009 shares	Jan. 31, 2008 shares
Business Acquisition [Line Items]
Goodwill			$ 285,512,000	$ 120,164,000	$ 285,512,000	$ 120,164,000			$ 180,128,000
Number of banks through which company operates | Bank					3
Number of regional banking units Chemical Bank operates through | Bank					4
Number of minimum days when principal or interest is past due is placed in nonaccrual category					90 days
Number of minimum days in real estate residential loan when principal or interest is past due is placed in nonaccrual category					120 days
Time period in which payments receive consistently and loans are returned to accrual status					6 months
Time period sustained for payment history of principal and interest payments to move them to performing status					6 months
Time period of real estate residential troubled debt restructurings reducing borrower's monthly payments by decreasing the interest rate charged on the loan					24 months
Minimum number of days past due as to interest or principal payments in accruing loans moves to nonperforming loans					90 days
Minimum amount of loan reviewed for detailed credit quality					$ 250,000
Time period for historical loan loss experience					5 years
Minimum percentage of tax benefit is recognized for the amount likely to be realized					50.00%
Reserve for contingent income tax liabilities recorded			0	0	$ 0	0			0
Expense related to qualified affordable housing projects			200,000	100,000	300,000	200,000
Remaining investment in qualified affordable housing projects, proportional amortization method			21,400,000	3,100,000	21,400,000	3,100,000			4,900,000
Investment in tax credit projects, equity method			3,300,000	$ 0	3,300,000	$ 0			$ 0
Variable Interest Entity, Reporting Entity Involvement, Unfunded Obligation, Amount			$ 9,700,000		$ 9,700,000
Number of shares authorized to be repurchased | shares													500,000
Stock repurchased (shares) | shares					0
Number of remaining shares authorized to be repurchased (shares) | shares			500,000		500,000
Common Stock, Shares, Issued | shares			38,110,136	32,760,088	38,110,136	32,760,088			32,774,420	2,500,000	2,213,750
CommonStockIssuedOverAllotment | shares										375,000	288,750
Gross Value of Common Stock sold in public stock offering										$ 80,500,000
Shares Issued, Price Per Share | $ / shares										$ 28.00	$ 26.00
Issuance of common stock, net of issuance costs										$ 76,200,000	$ 53,900,000
Preferred stock, shares authorized | shares			2,000,000	200,000	2,000,000	200,000			200,000			200,000
Preferred stock, shares issued | shares			0	0	0	0			0
Preferred stock, shares outstanding | shares			0		0
Common Stock, Shares Authorized | shares			60,000,000	45,000,000	60,000,000	45,000,000		45,000,000	45,000,000
Impairment on tax credit projects			$ 0	$ 0	$ 0	$ 0			$ 0
Lake Michigan Financial Corp [Member]
Business Acquisition [Line Items]
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools					2
Monarch Community Bancorp [Member]
Business Acquisition [Line Items]
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools					2
Northwestern Bancorp [Member]
Business Acquisition [Line Items]
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools					4
OAK [Member]
Business Acquisition [Line Items]
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools					14
Shareholder Approved Proposal [Member]
Business Acquisition [Line Items]
Preferred stock, shares authorized | shares							2,000,000
Common Stock, Shares Authorized | shares							60,000,000
Monarch Community Bancorp [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 27,191,000
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock		203,000
Goodwill		5,383,000
Core deposit intangible assets acquired, business combination		$ 1,930,000
Lake Michigan Financial Corp [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 187,394,000
Business Combination, Consideration Transferred, Value of Stock and Options Issued	132,900,000
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock	54,478,000
Goodwill	100,002,000
Core deposit and other intangible assets acquired in business combination	7,900,000
Core deposit intangible assets acquired, business combination	$ 7,303,000

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Borrowings Schedule of Short-term Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of Short-Term Borrowings [Abstract]
Securities sold under repurchase agreements with customers	$ 305,291	$ 304,467	$ 293,422
Federal Home Loan Bank Advances, Short Term	205,000	60,000	0
Federal Funds Purchased	22,000	25,000	12,000
Short-term borrowings	$ 532,291	$ 389,467	$ 305,422

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Financial Guarantees

6 Months Ended

Jun. 30, 2015

Guarantees [Abstract]

Financial Guarantees

Financial Guarantees

In the normal course of business, the Corporation is a party to financial instruments containing credit risk that are not required to be reflected in the consolidated statements of financial position. For the Corporation, these financial instruments are financial and performance standby letters of credit. The Corporation has risk management policies to identify, monitor and limit exposure to credit risk. To mitigate credit risk for these financial guarantees, the Corporation generally determines the need for specific covenant, guarantee and collateral requirements on a case-by-case basis, depending on the nature of the financial instrument and the customer’s creditworthiness. At June 30, 2015, December 31, 2014 and June 30, 2014, the Corporation had $45 million, $41 million and $37 million, respectively, of outstanding financial and performance standby letters of credit that expire in five years or less. The majority of these standby letters of credit are collateralized. The Corporation determined that there were no potential losses from standby letters of credit at June 30, 2015, December 31, 2014 and June 30, 2014.

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Acquisitions Purchase Accounting Fair Value Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands	May. 31, 2015	Apr. 01, 2015	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Purchase Accounting Fair Value Adjustments [Line Items]
Goodwill			$ 285,512	$ 180,128	$ 120,164
Monarch Community Bancorp [Member]
Purchase Accounting Fair Value Adjustments [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		860,575
Business Combination, Consideration Transferred, Value of Stock Issued		$ 26,988
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock		203
Business Combination, Consideration Transferred		27,191
Net Assets Acquired, Acquiree Shareholders Equity		15,270
Purchase Accounting Fair Value Adjustment, Loans		(7,150)
Purchase Accounting Fair Value Adjustment, Allowance for Loan Losses		2,128
Business Combination, Fair Value Adjustment, Deferred Tax Asset NOL		7,900
Purchase Accounting Fair Value Adjustment, Premises and Equipment		(370)
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset		1,930
Purchase Accounting Fair Value Adjustment, Mortgage Servicing Rights Asset		315
Purchase Accounting Fair Value Adjustment, Deferred Tax Asset, Net		1,748
Purchase Accounting Fair Value Adjustment, Other Assets and Liabilities, Net		37
Net Assets Acquired After Purchase Accounting Fair Value Adjustments		21,808
Goodwill		$ 5,383
Business Acquisition, Price Per Share of Common Stock Issued		$ 31.36
Lake Michigan Financial Corp [Member]
Purchase Accounting Fair Value Adjustments [Line Items]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	4,322,101
Business Combination, Consideration Transferred, Value of Stock Issued	$ 130,916
Business Combination, Consideration Transferred, Value of Stock Options	2,000
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock	54,478
Business Combination, Consideration Transferred	187,394
Net Assets Acquired, Acquiree Shareholders Equity	89,280
Purchase Accounting Fair Value Adjustment, Loans	(22,600)
Purchase Accounting Fair Value Adjustment, Allowance for Loan Losses	15,888
Purchase Accounting Fair Value Adjustment, Premises and Equipment	(2,333)
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset	7,303
Purchase Accounting Fair Value Adjustment, Deferred Tax Asset, Net	2,269
Purchase Accounting Fair Value Adjustment, Deposits and Other Borrowings	(3,048)
Purchase Accounting Fair Value Adjustment, Other Assets and Liabilities, Net	(633)
Net Assets Acquired After Purchase Accounting Fair Value Adjustments	87,392
Goodwill	$ 100,002
Business Acquisition, Price Per Share of Common Stock Issued	$ 30.29

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

Business Acquisition [Line Items]

Business Acquisition, Pro Forma Information [Table Text Block]

Unaudited Pro Forma Combined Results of Operations

The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Interest income	$	78,137	$	74,842	$	154,261	$	148,089
Interest expense	5,483		6,748		11,363		13,627
Net interest income	72,654		68,094		142,898		134,462
Provision for loan losses	1,500		1,860		3,000		4,035
Net interest income after provision for loan losses	71,154		66,234		139,898		130,427
Noninterest income	21,153		23,713		43,180		43,487
Operating expenses	62,394		59,915		123,042		121,241
Income before income taxes	29,913		30,032		60,036		52,673
Federal income tax expense	7,525		9,048		16,736		15,807
Net income	$	22,388	$	20,984	$	43,300	$	36,866
Net income per common share:
Basic	$	0.59	$	0.60	$	1.14	$	1.05
Diluted	0.58		0.59		1.13		1.04
Weighted average shares outstanding:
Basic	38,044		35,251		38,024		35,129
Diluted	38,279		35,462		38,259		35,398

Activity for accretable yield includes contractually due interest of acquired loans

Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:

	Six Months Ended June 30,
	2015															2014
	Lake Michigan			Monarch			North-western			OAK			Total			OAK
	(In thousands)
Balance at beginning of period	$	—		$	—		$	104,675		$	33,286		137,961			$	32,610
Additions attributable to acquisitions	190,246			37,914			—			—			228,160			—
Additions (reductions)*	1,550			(1,141		)	(2,859		)	5,215			2,765			2,333
Accretion recognized in interest income	(3,486		)	(968		)	(10,058		)	(6,326		)	(20,838		)	(7,594		)
Reclassification from nonaccretable difference	—			—			—			—			—			10,000
Balance at end of period	$	188,310		$	35,805		$	91,758		$	32,175		$	348,048		$	37,349

*Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.

Lake Michigan Financial Corp [Member]

Business Acquisition [Line Items]

Purchase Accounting Fair Value Adjustments [Table Text Block]

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share)	$	130,916
Fair value of Lake Michigan options converted to the Corporation's options	2,000
Cash paid to acquire outstanding stock	54,478
Total purchase price	$	187,394
Net assets acquired:
Lake Michigan shareholders' equity	$	89,280
Adjustments to reflect fair value of net assets acquired:
Loans	(22,600		)
Allowance for loan losses	15,888
Premises and equipment	(2,333		)
Core deposit intangibles	7,303
Deferred tax assets, net	2,269
Deposits and borrowings, net	(3,048		)
Other assets and other liabilities	633
Fair value of adjusted net assets acquired	87,392
Goodwill recognized as a result of the Lake Michigan transaction	$	100,002

Schedule of Purchase Price Allocation [Table Text Block]

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Lake Michigan were as follows (in thousands):

Assets
Cash and cash equivalents	$	39,301
Investment securities	66,699
Loans	985,542
Premises and equipment	13,673
Deferred tax asset, net	14,888
Goodwill	100,002
Core deposit intangible asset	7,303
Bank-owned life insurance	23,844
Other assets	38,449
Assets acquired, at fair value	1,289,701
Liabilities
Deposits	924,697
Short-term borrowings	30,000
Other borrowings	124,723
Other liabilities	22,887
Total liabilities acquired, at fair value	1,102,307
Total purchase price	$	187,394

Monarch Community Bancorp [Member]

Business Acquisition [Line Items]

Purchase Accounting Fair Value Adjustments [Table Text Block]

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share)	$	26,988
Cash paid	203
Total purchase price	$	27,191
Net assets acquired:
Monarch shareholders' equity	15,270
Adjustments to reflect fair value of net assets acquired:
Loans	(7,150		)
Allowance for loan losses	2,128
Deferred tax assets, net:
Net operating loss carryforward	7,900
Other	1,748
Premises and equipment	(370		)
Core deposit intangibles	1,930
Mortgage servicing rights	315
Other assets and other liabilities	37
Fair value of adjusted net assets acquired	21,808
Goodwill recognized as a result of the Monarch transaction	$	5,383

Schedule of Purchase Price Allocation [Table Text Block]

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Monarch were as follows (in thousands):

Assets
Cash and cash equivalents	$	32,171
Loans	121,783
Premises and equipment	3,064
Deferred tax assets, net
Net operating loss carryforward	7,900
Other	2,314
Interest receivable and other assets	6,972
Goodwill	5,383
Core deposit intangibles	1,930
Mortgage servicing rights	1,284
Assets acquired, at fair value	182,801
Liabilities
Deposits	144,311
FHLB advances	8,000
Interest payable and other liabilities	3,299
Total liabilities acquired, at fair value	155,610
Total purchase price	$	27,191

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Regulatory Capital (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Risk weighted assets	$ 6,990,000	$ 5,700,000	$ 4,900,000
Chemical Financial Corporation [Member]
Total Capital to Risk-Weighted Assets:
Actual, Capital Amount	816,595	705,130	748,332
Minimum Required for Capital Adequacy Purposes, Capital Amount	$ 559,273	$ 456,302	$ 391,911
Actual, Ratio	11.70%	12.40%	15.30%
Minimum Required for Capital Adequacy Purposes, Ratio	8.00%	8.00%	8.00%
Tier 1 Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 741,654	$ 633,779	$ 686,892
Minimum Required for Capital Adequacy Purposes, Capital Amount	$ 419,455	$ 228,151	$ 195,955
Actual, Ratio	10.60%	11.10%	14.00%
Minimum Required for Capital Adequacy Purposes, Ratio	6.00%	4.00%	4.00%
Common Equity Tier One Risk Based Capital	$ 723,654
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	10.40%
Common Equity Tier One Risk Based Capital for Capital Adequacy	$ 314,591
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%
Leverage Ratio:
Actual, Capital Amount	$ 741,654	$ 633,779	$ 686,892
Minimum Required for Capital Adequacy Purposes, Capital Amount	$ 314,344	$ 273,226	$ 244,757
Actual, Ratio	9.40%	9.30%	11.20%
Minimum Required for Capital Adequacy Purposes, Ratio	4.00%	4.00%	4.00%
Chemical Bank [Member]
Total Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 713,999	$ 654,031	$ 601,561
Minimum Required for Capital Adequacy Purposes, Capital Amount	471,422	455,633	391,305
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 589,277	$ 569,541	$ 489,131
Actual, Ratio	12.10%	11.50%	12.30%
Minimum Required for Capital Adequacy Purposes, Ratio	8.00%	8.00%	8.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	10.00%	10.00%	10.00%
Tier 1 Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 640,324	$ 582,783	$ 540,214
Minimum Required for Capital Adequacy Purposes, Capital Amount	353,566	227,816	195,653
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 471,422	$ 341,725	$ 293,479
Actual, Ratio	10.90%	10.20%	11.00%
Minimum Required for Capital Adequacy Purposes, Ratio	6.00%	4.00%	4.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	8.00%	6.00%	6.00%
Common Equity Tier One Risk Based Capital	$ 640,324
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	10.90%
Common Equity Tier One Risk Based Capital for Capital Adequacy	$ 265,175
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%
Common Equity Tier One Risk Based Capital to be Well Capitalized	$ 383,030
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets	6.50%
Leverage Ratio:
Actual, Capital Amount	$ 640,324	$ 582,783	$ 540,214
Minimum Required for Capital Adequacy Purposes, Capital Amount	300,703	273,048	244,604
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 375,878	$ 341,310	$ 305,755
Actual, Ratio	8.50%	8.50%	8.80%
Minimum Required for Capital Adequacy Purposes, Ratio	4.00%	4.00%	4.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	5.00%	5.00%	5.00%
The Bank of Holland [Member]
Total Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 72,506
Minimum Required for Capital Adequacy Purposes, Capital Amount	61,028
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 76,285
Actual, Ratio	9.50%
Minimum Required for Capital Adequacy Purposes, Ratio	8.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	10.00%
Tier 1 Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 72,506
Minimum Required for Capital Adequacy Purposes, Capital Amount	45,771
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 61,028
Actual, Ratio	9.50%
Minimum Required for Capital Adequacy Purposes, Ratio	6.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	8.00%
Common Equity Tier One Risk Based Capital	$ 72,506
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	9.50%
Common Equity Tier One Risk Based Capital for Capital Adequacy	$ 34,328
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%
Common Equity Tier One Risk Based Capital to be Well Capitalized	$ 49,585
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets	6.50%
Leverage Ratio:
Actual, Capital Amount	$ 72,506
Minimum Required for Capital Adequacy Purposes, Capital Amount	30,710
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 38,388
Actual, Ratio	9.40%
Minimum Required for Capital Adequacy Purposes, Ratio	4.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	5.00%
The Bank of Northern Michigan [Member]
Total Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 32,779
Minimum Required for Capital Adequacy Purposes, Capital Amount	25,878
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 32,347
Actual, Ratio	10.10%
Minimum Required for Capital Adequacy Purposes, Ratio	8.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	10.00%
Tier 1 Capital to Risk-Weighted Assets:
Actual, Capital Amount	$ 32,779
Minimum Required for Capital Adequacy Purposes, Capital Amount	19,408
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 25,878
Actual, Ratio	10.10%
Minimum Required for Capital Adequacy Purposes, Ratio	6.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	8.00%
Common Equity Tier One Risk Based Capital	$ 32,779
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	10.10%
Common Equity Tier One Risk Based Capital for Capital Adequacy	$ 14,556
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%
Common Equity Tier One Risk Based Capital to be Well Capitalized	$ 21,025
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets	6.50%
Leverage Ratio:
Actual, Capital Amount	$ 32,779
Minimum Required for Capital Adequacy Purposes, Capital Amount	14,421
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount	$ 18,026
Actual, Ratio	9.10%
Minimum Required for Capital Adequacy Purposes, Ratio	4.00%
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio	5.00%

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Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2013	$ 696,500	$ 29,790	$ 488,177	$ 199,053	$ (20,520)
Changes in Stockholders' Equity [Roll Forward]
Comprehensive income	32,581			30,049	2,532
Cash dividends declared per share: $0.48 and $0.46 per share for the six months ended June 30, 2015 and June 30, 2014, respectively	(13,769)			(13,769)
Stock Issued During Period, Value, New Issues	76,175	2,875	73,300
Stock issued - stock options	854	41	813
Shares issued – directors’ stock plans	468	18	450
Shares issued – restricted stock units	(484)	$ 36	(520)
Share-based compensation	1,173		1,173
Ending Balance at Jun. 30, 2014	793,498	$ 32,760	563,393	215,333	(17,988)
Beginning Balance at Dec. 31, 2014	797,133	32,774	565,166	231,646	(32,453)
Changes in Stockholders' Equity [Roll Forward]
Comprehensive income	38,208			36,859	1,349
Cash dividends declared per share: $0.48 and $0.46 per share for the six months ended June 30, 2015 and June 30, 2014, respectively	(17,049)			(17,049)
Stock Issued During Period, Value, Acquisitions	159,904	5,183	154,721
Stock issued - stock options	1,146	88	1,058
Shares issued – directors’ stock plans	316	11	305
Shares issued – restricted stock units	(328)	53	(381)
Share-based compensation	1,461	1	1,460
Ending Balance at Jun. 30, 2015	$ 980,791	$ 38,110	$ 722,329	$ 251,456	$ (31,104)

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Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Held-to-maturity, fair value	$ 466,578	$ 315,740	$ 303,961
Accumulated depreciation of premises and equipment	$ 112,530	$ 108,826	$ 104,225
Preferred stock, no par value
Preferred stock, shares authorized	2,000,000	200,000	200,000
Preferred stock, shares issued	0	0	0
Common stock, par value	$ 1	$ 1	$ 1
Common stock, shares authorized	60,000,000	45,000,000	45,000,000
Common stock, shares issued	38,110,136	32,774,420	32,760,088
Common stock, shares outstanding	38,110,136	32,774,420	32,760,088

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Regulatory Capital

6 Months Ended

Jun. 30, 2015

Banking and Thrift [Abstract]

Regulatory Capital

Regulatory Capital

Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank, The Bank of Holland and The Bank of Northern Michigan to the Corporation. As of June 30, 2015, substantially all of the assets of Chemical Bank, The Bank of Holland and The Bank of Northern Michigan were restricted from transfer to the Corporation in the form of loans or advances. Dividends from Chemical Bank are the principal source of funds for the Corporation. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank, The Bank of Holland, and The Bank of Northern Michigan prior to making any cash dividend decisions.

The Corporation, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan must meet specific capital guidelines that involve quantitative measures of assets and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, capital amounts and classifications are subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require minimum ratios of Tier 1 capital to average assets (Leverage Ratio) and common equity Tier 1, Tier 1 and Total capital to risk-weighted assets. These capital guidelines assign risk weights to on- and off-balance sheet items in arriving at total risk-weighted assets. Minimum capital levels are based upon the perceived risk of various asset categories and certain off-balance sheet instruments. Risk weighted assets of the Corporation totaled $6.99 billion, $5.70 billion and $4.90 billion at June 30, 2015, December 31, 2014 and June 30, 2014, respectively.

In July 2013, the Federal Reserve Board and FDIC approved final rules implementing the Basel Committee on Banking Supervision's (BCBS) capital guidelines for U.S. banks. Beginning January 1, 2015,the final rules include a new minimum common equity Tier 1 capital to risk-weighted assets (CET) ratio of 4.5%, in addition to raising the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requiring a minimum leverage ratio of 4.0%. The final rules also establish a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four-year period beginning January 1, 2016.

At June 30, 2015, December 31, 2014 and June 30, 2014, Chemical Bank’s capital ratios exceeded the quantitative capital ratios required for an institution to be considered “well-capitalized.” At June 30, 2015, The Bank of Northern Michigan's capital ratios exceeded the quantitative capital ratios required for an institution to be considered "well-capitalized." At June 30, 2015, The Bank of Holland was considered "adequately-capitalized" due to the impact of push down accounting of the purchase accounting adjustments related to the Lake Michigan acquisition. Significant factors that may affect capital adequacy include, but are not limited to, a disproportionate growth in assets versus capital and a change in mix or credit quality of assets.

The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy:

	Actual				Minimum Required for Capital Adequacy Purposes				Required to be Well Capitalized Under Prompt Corrective Action Regulations
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
	(Dollars in thousands)
June 30, 2015
Total Capital to Risk-Weighted Assets:
Corporation	$	816,595	11.7	%	$	559,273	8.0	%	N/A		N/A
Chemical Bank	713,999		12.1		471,422		8.0		$	589,277	10.0	%
The Bank of Holland	72,506		9.5		61,028		8.0		76,285		10.0
The Bank of Northern Michigan	32,779		10.1		25,878		8.0		32,347		10.0
Tier 1 Capital to Risk-Weighted Assets:
Corporation	741,654		10.6		419,455		6.0		N/A		N/A
Chemical Bank	640,324		10.9		353,566		6.0		471,422		8.0
The Bank of Holland	72,506		9.5		45,771		6.0		61,028		8.0
The Bank of Northern Michigan	32,779		10.1		19,408		6.0		25,878		8.0
Common Equity Tier 1 Capital to Risk-Weighted Assets:
Corporation	723,654		10.4		314,591		4.5		N/A		N/A
Chemical Bank	640,324		10.9		265,175		4.5		383,030		6.5
The Bank of Holland	72,506		9.5		34,328		4.5		49,585		6.5
The Bank of Northern Michigan	32,779		10.1		14,556		4.5		21,025		6.5
Leverage Ratio:
Corporation	741,654		9.4		314,344		4.0		N/A		N/A
Chemical Bank	640,324		8.5		300,703		4.0		375,878		5.0
The Bank of Holland	72,506		9.4		30,710		4.0		38,388		5.0
The Bank of Northern Michigan	32,779		9.1		14,421		4.0		18,026		5.0
December 31, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	705,130	12.4	%	$	456,302	8.0	%	N/A		N/A
Chemical Bank	654,031		11.5		455,633		8.0		$	569,541	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	633,779		11.1		228,151		4.0		N/A		N/A
Chemical Bank	582,783		10.2		227,816		4.0		341,725		6.0
Leverage Ratio:
Corporation	633,779		9.3		273,226		4.0		N/A		N/A
Chemical Bank	582,783		8.5		273,048		4.0		341,310		5.0
June 30, 2014
Total Capital to Risk-Weighted Assets:
Corporation	$	748,332	15.3	%	$	391,911	8.0	%	N/A		N/A
Chemical Bank	601,561		12.3		391,305		8.0		$	489,131	10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation	686,892		14.0		195,955		4.0		N/A		N/A
Chemical Bank	540,214		11.0		195,653		4.0		293,479		6.0
Leverage Ratio:
Corporation	686,892		11.2		244,757		4.0		N/A		N/A
Chemical Bank	540,214		8.8		244,604		4.0		305,755		5.0

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Entity Information [Line Items]
Entity Registrant Name	CHEMICAL FINANCIAL CORP
Entity Central Index Key	0000019612
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		38,112,634

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Fair Value Measurements

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value, as defined by GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for market activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Investment securities — available-for-sale and loans held-for-sale are recorded at fair value on a recurring basis. Additionally, the Corporation may be required to record other assets, such as impaired loans, goodwill, other intangible assets, other real estate and repossessed assets, at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets.

The Corporation determines the fair value of its financial instruments based on a three-level hierarchy established by GAAP. The classification and disclosure of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. The three levels of inputs that may be used to measure fair value within the GAAP hierarchy are as follows:

Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 valuations for the Corporation would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Valuations are obtained from a third-party pricing service for these investment securities.

Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government sponsored agency securities, including securities issued by the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds, preferred stock and certain trust preferred securities. Valuations are obtained from a third-party pricing service for these investment securities.

Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, yield curves and similar techniques. The determination of fair value requires management judgment or estimation and generally is corroborated by external data, which includes third-party pricing services. Level 3 valuations for the Corporation include securities issued by certain state and political subdivisions, trust preferred investment securities, impaired loans, goodwill, core deposit intangible assets, non-compete intangible assets, MSRs and other real estate and repossessed assets.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Corporation’s financial assets and financial liabilities carried at fair value and all financial instruments disclosed at fair value. In general, fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based upon third-party pricing services when available. Fair value may also be based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be required to record financial instruments at fair value. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the fair value amounts may change significantly after the date of the statement of financial position from the amounts reported in the consolidated financial statements and related notes.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Investment securities — available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events.

The Corporation elected the fair value option for all residential mortgage loans held-for-sale originated on or after July 1, 2012. Accordingly, loans held-for-sale are recorded at fair value on a recurring basis. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations.

Disclosure of Recurring Basis Fair Value Measurements

For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,294	$	—	$	—	$	8,294
Government sponsored agencies	—		227,907		—		227,907
State and political subdivisions	—		26,965		—		26,965
Residential mortgage-backed securities	—		212,669		—		212,669
Collateralized mortgage obligations	—		167,032		—		167,032
Corporate bonds	—		39,678		—		39,678
Preferred stock and trust preferred securities	—		3,161		—		3,161
Total investment securities – available-for-sale	8,294		677,412		—		685,706
Loans held-for-sale	—		7,798		—		7,798
Total assets measured at fair value on a recurring basis	$	8,294	$	685,210	$	—	$	693,504
December 31, 2014
Investment securities – available-for-sale:
U.S. Treasury securities	$	8,259	$	—	$	—	$	8,259
Government sponsored agencies	—		263,503		—		263,503
State and political subdivisions	—		46,227		—		46,227
Residential mortgage-backed securities	—		239,807		—		239,807
Collateralized mortgage obligations	—		144,383		—		144,383
Corporate bonds	—		45,095		—		45,095
Preferred stock	—		1,590		—		1,590
Total investment securities – available-for-sale	8,259		740,605		—		748,864
Loans held-for-sale	—		9,128		—		9,128
Total assets measured at fair value on a recurring basis	$	8,259	$	749,733	$	—	$	757,992
June 30, 2014
Investment securities – available-for-sale:
Government sponsored agencies	$	—	$	88,708	$	—	$	88,708
State and political subdivisions	—		41,608		—		41,608
Residential mortgage-backed securities	—		265,368		—		265,368
Collateralized mortgage obligations	—		153,283		—		153,283
Corporate bonds	—		65,352		—		65,352
Preferred stock	—		1,656		—		1,656
Total investment securities – available-for-sale	—		615,975		—		615,975
Loans held-for-sale	—		6,329		—		6,329
Total assets measured at fair value on a recurring basis	$	—	$	622,304	$	—	$	622,304

There were no liabilities recorded at fair value on a recurring basis at June 30, 2015, December 31, 2014 or June 30, 2014.

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The Corporation does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allocation of the allowance (valuation allowance) may be established or a portion of the loan is charged off. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including the loan’s observable market price, the fair value of the collateral or the present value of the expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring a valuation allowance represent loans for which the fair value of the expected repayments or collateral exceed the remaining carrying amount of such loans. Impaired loans where a valuation allowance is established or a portion of the loan is charged off based on the fair value of collateral are subject to nonrecurring fair value measurement and require classification in the fair value hierarchy. The Corporation records impaired loans as Level 3 valuations as there is generally no observable market price or independent appraised value, or management determines the fair value of the collateral is further impaired below the appraised value. When management determines the fair value of the collateral is further impaired below appraised value, discount factors ranging between 70% and 80% of the appraised value are used depending on the nature of the collateral and the age of the most recent appraisal.

Goodwill is subject to impairment testing on an annual basis. The assessment of goodwill for impairment requires a significant degree of judgment. In the event the assessment indicates that it is more-likely-than-not that the fair value is less than the carrying value, the asset is considered impaired and recorded at fair value. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. At June 30, 2015, December 31, 2014 and June 30, 2014, no goodwill was impaired, and therefore, goodwill was not recorded at fair value on a nonrecurring basis.

Other intangible assets consist of core deposit intangible assets, non-compete intangible assets, and MSRs. These items are recorded at fair value when initially recorded. Subsequently, core deposit intangible assets and non-compete intangible assets are amortized primarily on an accelerated basis over periods ranging from ten to fifteen years and are subject to impairment testing whenever events or changes in circumstances indicate that the carrying amount exceeds the fair value of the asset. If core deposit intangible asset or non-compete intangible asset impairment is identified, the Corporation classifies impaired core deposit intangible assets and impaired non-compete intangible assets subject to nonrecurring fair value measurements as Level 3 valuations. At June 30, 2015, December 31, 2014 and June 30, 2014, there was no impairment identified for core deposit intangible assets or non-compete intangible assets. The fair value of MSRs is initially estimated using a model that calculates the net present value of estimated future cash flows using various assumptions, including prepayment speeds, the discount rate and servicing costs. If the valuation model reflects a value less than the carrying value, MSRs are adjusted to fair value, as determined by the model, through a valuation allowance. The Corporation classifies MSRs subject to nonrecurring fair value measurements as Level 3 valuations. At December 31, 2014, the Corporation recognized a valuation allowance of $0.2 million related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. At June 30, 2015 and June 30, 2014, there was no impairment identified for MSRs and, therefore, no other intangible assets were recorded at fair value on a nonrecurring basis at those dates.

The carrying amounts for other real estate (ORE) and repossessed assets (RA) are reported in the consolidated statements of financial position under “Interest receivable and other assets.” ORE and RA include real estate and other types of assets repossessed by the Corporation. ORE and RA are recorded at the lower of cost or fair value upon the transfer of a loan to ORE or RA and, subsequently, ORE and RA continue to be measured and carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the property or management’s estimation of the value of the property. The Corporation records ORE and RA as Level 3 valuations as management generally determines that the fair value of the property is impaired below the appraised value. When management determines the fair value of the property is further impaired below appraised value, discount factors ranging between 70% and 75% of the appraised value are used depending on the nature of the property and the age of the most recent appraisal.

Disclosure of Nonrecurring Basis Fair Value Measurements

For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows:

	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
June 30, 2015
Impaired originated loans	$	—	$	—	$	24,517	$	24,517
Other real estate/repossessed assets	—		—		14,197		14,197
Total	$	—	$	—	$	38,714	$	38,714
December 31, 2014
Impaired originated loans	$	—	$	—	$	21,323	$	21,323
Other real estate/repossessed assets	—		—		14,205		14,205
Mortgage servicing rights	—		—		8,691		8,691
Total	$	—	$	—	$	44,219	$	44,219
June 30, 2014
Impaired originated loans	$	—	$	—	$	29,789	$	29,789
Other real estate/repossessed assets	—		—		10,392		10,392
Total	$	—	$	—	$	40,181	$	40,181

There were no liabilities recorded at fair value on a nonrecurring basis at June 30, 2015, December 31, 2014 and June 30, 2014.

Disclosures about Fair Value of Financial Instruments

GAAP requires disclosures about the estimated fair value of the Corporation's financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. However, the method of estimating fair value for certain financial instruments, such as loans, that are not required to be measured on a recurring or nonrecurring basis, as prescribed by ASC 820, Fair Value Measurements and Disclosures, does not incorporate the exit-price concept of fair value. The Corporation utilized the fair value hierarchy in computing the fair values of its financial instruments. In cases where quoted market prices were not available, the Corporation employed present value methods using unobservable inputs requiring management's judgment to estimate the fair values of its financial instruments, which are considered Level 3 valuations. These Level 3 valuations are affected by the assumptions made and, accordingly, do not necessarily indicate amounts that could be realized in a current market exchange. It is also the Corporation's general practice and intent to hold the majority of its financial instruments until maturity and, therefore, the Corporation does not expect to realize the estimated amounts disclosed.

The methodologies for estimating the fair value of financial assets and financial liabilities on a recurring or nonrecurring basis are discussed above. At June 30, 2015, December 31, 2014 and June 30, 2014, the estimated fair values of cash and cash equivalents, interest receivable and interest payable approximated their carrying values at those dates. The methodologies for other financial assets and financial liabilities follow.

Fair value measurement for investment securities — held-to-maturity is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques that include market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Fair value measurements using Level 2 valuations of investment securities — held-to-maturity include the majority of the Corporation's investment securities issued by state and political subdivisions. Level 3 valuations include certain securities issued by state and political subdivisions and trust preferred investment securities.

Fair value measurements of nonmarketable equity securities, which consisted of Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, are based on their redeemable value, which is cost. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. It is not practicable to determine the fair value of these securities within the fair value hierarchy due to the restrictions placed on their transferability.

Loans held-for-sale are carried at fair value, as the Corporation elected the fair value option on these loans. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations.

The fair value of variable interest rate loans that reprice regularly with changes in market interest rates are based on carrying values. The fair values for fixed interest rate loans are estimated using discounted cash flow analyses, using the Corporation’s interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting fair value amounts are adjusted to estimate the impact of changes in the credit quality of borrowers after the loans were originated. The fair value measurements for loans are Level 3 valuations.

The fair values of deposit accounts without defined maturities, such as interest- and noninterest-bearing checking, savings and money market accounts, are equal to the amounts payable on demand. Fair value measurements for fixed-interest rate time deposits with defined maturities are based on the discounted value of contractual cash flows, using the Corporation’s interest rates currently being offered for deposits of similar maturities, and are Level 3 valuations. The fair values for variable-interest rate time deposits with defined maturities approximate their carrying amounts.

Short-term borrowings consist of securities sold under agreements to repurchase with customers, short-term FHLB advances and federal funds purchased. Fair value measurements for short-term borrowings are based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms and are Level 2 valuations. Other borrowings consist of long-term FHLB advances, securities sold under agreements to repurchase with an unaffiliated financial institution, a non-revolving line-of-credit and subordinated debentures. Fair value measurements for other borrowings are based on the present value of future estimated cash flows using current interest rates offered to the Corporation for debt with similar terms. Long-term FHLB advances and the non-revolving line-of-credit included in other borrowings are Level 2 valuations, while securities sold under agreements to repurchase with an unaffiliated financial institution and subordinated debentures are Level 3 valuations.

The Corporation’s unused commitments to extend credit, standby letters of credit and loan commitments have no carrying amount and have been estimated to have no realizable fair value. Historically, a majority of the unused commitments to extend credit have not been drawn upon and, generally, the Corporation does not receive fees in connection with these commitments other than standby letter of credit fees, which are not significant.

Fair value measurements have not been made for items that are not defined by GAAP as financial instruments, including such items as the value of the Corporation’s Wealth Management department and the value of the Corporation’s core deposit base. The Corporation believes it is impractical to estimate a representative fair value for these types of assets, even though management believes they add significant value to the Corporation.

A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows:

	Level in Fair Value Measurement Hierarchy	June 30, 2015				December 31, 2014				June 30, 2014
		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(In thousands)
Assets:
Cash and cash equivalents	Level 1	$	215,034	$	215,034	$	183,020	$	183,020	$	140,294	$	140,294
Investment securities:
Available-for-sale	Level 1	8,294		8,294		8,259		8,259		—		—
Available-for-sale	Level 2	677,412		677,412		740,605		740,605		615,975		615,975
Held-to-maturity	Level 2	469,337		466,278		305,913		308,650		297,630		297,186
Held-to-maturity	Level 3	500		300		10,500		7,090		10,500		6,775
Nonmarketable equity securities	NA	36,142		36,142		27,369		27,369		25,572		25,572
Loans held-for-sale	Level 2	7,798		7,798		9,128		9,128		6,329		6,329
Net loans	Level 3	6,959,802		6,969,655		5,612,547		5,623,454		4,821,011		4,826,672
Interest receivable	Level 2	21,668		21,668		17,492		17,492		15,827		15,827
Liabilities:
Deposits without defined maturities	Level 2	$	5,547,764	$	5,547,764	$	4,741,024	$	4,741,024	$	3,814,013	$	3,814,013
Time deposits	Level 3	1,745,215		1,745,215		1,337,947		1,340,015		1,278,900		1,285,992
Interest payable	Level 2	1,557		1,557		755		755		735		735
Short-term borrowings	Level 2	532,291		532,291		389,467		389,467		305,422		305,422
Other borrowings	Level 2	106,469		106,469		—		—		—		—
Other borrowings	Level 3	42,021		42,021		—		—		—		—

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Financial Guarantees (Textual) (Details) - Financial Standby Letter of Credit [Member] - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Financial Guarantees (Textual) [Abstract]
Letters of credit outstanding	$ 45	$ 41	$ 37
Expiration period for letters of credit, maximum	5 years

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest Income
Interest and fees on loans	$ 64,613	$ 50,751	$ 122,710	$ 99,946
Interest on investment securities:
Taxable	2,202	2,248	4,509	4,631
Tax-exempt	2,185	1,671	4,091	3,375
Dividends on nonmarketable equity securities	551	411	749	649
Interest on deposits with the Federal Reserve Bank and other banks	128	99	250	224
Total interest income	69,679	55,180	132,309	108,825
Interest Expense
Interest on deposits	3,630	3,626	6,982	7,371
Interest on short-term borrowings	101	94	199	215
Interest on other borrowings	213	0	213	0
Total interest expense	3,944	3,720	7,394	7,586
Net Interest Income	65,735	51,460	124,915	101,239
Provision for loan losses	1,500	1,500	3,000	3,100
Net interest income after provision for loan losses	64,235	49,960	121,915	98,139
Noninterest Income
Service charges and fees on deposit accounts	6,445	5,486	12,361	10,416
Wealth management revenue	5,605	3,958	10,676	7,589
Other charges and fees for customer services	6,516	4,682	12,506	8,876
Mortgage banking revenue	1,688	1,491	3,091	2,285
Gain on sale of investment securities	28	0	607	0
Other	392	184	708	351
Total noninterest income	20,674	15,801	39,949	29,517
Operating Expenses
Salaries, wages and employee benefits	31,711	24,860	60,964	49,044
Occupancy	4,386	3,638	8,812	8,012
Equipment and software	4,480	3,413	8,878	6,874
Business Combination, Acquisition Related Costs	3,457	647	4,819	970
Other	12,751	9,867	24,332	19,707
Total operating expenses	56,785	42,425	107,805	84,607
Income before income taxes	28,124	23,336	54,059	43,049
Federal income tax expense	9,100	7,100	17,200	13,000
Net Income	$ 19,024	$ 16,236	$ 36,859	$ 30,049
Net Income Per Common Share:
Basic (in dollars per share)	$ 0.54	$ 0.54	$ 1.08	$ 1.00
Diluted (in dollars per share)	0.54	0.54	1.08	1.00
Cash Dividends Declared Per Common Share (dollars per share)	$ 0.24	$ 0.23	$ 0.48	$ 0.46

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Investment Securities

6 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2015, December 31, 2014 and June 30, 2014:

	Investment Securities Available-for-Sale
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
U.S. Treasury securities	$	8,270	$	24	$	—	$	8,294
Government sponsored agencies	227,424		683		200		227,907
State and political subdivisions	26,476		503		14		26,965
Residential mortgage-backed securities	213,621		742		1,694		212,669
Collateralized mortgage obligations	167,768		245		981		167,032
Corporate bonds	39,680		76		78		39,678
Preferred stock and trust preferred securities	2,889		272		—		3,161
Total	$	686,128	$	2,545	$	2,967	$	685,706
December 31, 2014
U.S. Treasury securities	$	8,272	$	—	$	13	$	8,259
Government sponsored agencies	263,658		356		511		263,503
State and political subdivisions	45,157		1,087		17		46,227
Residential mortgage-backed securities	240,465		885		1,543		239,807
Collateralized mortgage obligations	145,316		261		1,194		144,383
Corporate bonds	44,930		213		48		45,095
Preferred stock	1,389		201		—		1,590
Total	$	749,187	$	3,003	$	3,326	$	748,864
June 30, 2014
Government sponsored agencies	$	88,503	$	346	$	141	$	88,708
State and political subdivisions	40,165		1,443		—		41,608
Residential mortgage-backed securities	265,673		1,117		1,422		265,368
Collateralized mortgage obligations	154,035		376		1,128		153,283
Corporate bonds	64,979		456		83		65,352
Preferred stock	1,389		267		—		1,656
Total	$	614,744	$	4,005	$	2,774	$	615,975

	Investment Securities Held-to-Maturity
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
	(In thousands)
June 30, 2015
State and political subdivisions	$	469,337	$	4,853	$	7,912	$	466,278
Trust preferred securities	500		—		200		300
Total	$	469,837	$	4,853	$	8,112	$	466,578
December 31, 2014
State and political subdivisions	$	305,913	$	7,294	$	4,557	$	308,650
Trust preferred securities	10,500		—		3,410		7,090
Total	$	316,413	$	7,294	$	7,967	$	315,740
June 30, 2014
State and political subdivisions	$	297,630	$	5,885	$	6,329	$	297,186
Trust preferred securities	10,500		—		3,725		6,775
Total	$	308,130	$	5,885	$	10,054	$	303,961

The majority of the Corporation’s residential mortgage-backed securities and collateralized mortgage obligations are backed by a U.S. government agency (Government National Mortgage Association) or a government sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association).

As of December 31, 2014 and June 30, 2014, the Corporation held a $10.0 million trust preferred investment security of Lake Michigan. With the acquisition of Lake Michigan, this investment was settled as of the acquisition date at par.

The following is a summary of the amortized cost and fair value of investment securities at June 30, 2015, by maturity, for both available-for-sale and held-to-maturity investment securities. The maturities of residential mortgage-backed securities and collateralized mortgage obligations are based on scheduled principal payments. The maturities of all other debt securities are based on final contractual maturity.

	June 30, 2015
	Amortized Cost		Fair Value
	(In thousands)
Investment Securities Available-for-Sale:
Due in one year or less	$	198,939	$	198,680
Due after one year through five years	411,399		411,247
Due after five years through ten years	68,583		68,295
Due after ten years	5,818		5,823
Preferred stock	1,389		1,661
Total	$	686,128	$	685,706
Investment Securities Held-to-Maturity:
Due in one year or less	$	55,922	$	56,043
Due after one year through five years	209,886		209,768
Due after five years through ten years	127,398		125,775
Due after ten years	76,631		74,992
Total	$	469,837	$	466,578

The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In thousands)
June 30, 2015
Government sponsored agencies	$	24,789	$	163	$	14,715	$	37	$	39,504	$	200
State and political subdivisions	258,503		5,433		63,584		2,493		322,087		7,926
Residential mortgage-backed securities	187,858		1,592		3,643		102		191,501		1,694
Collateralized mortgage obligations	49,845		155		48,881		826		98,726		981
Corporate bonds	9,670		49		14,971		29		24,641		78
Trust preferred securities	—		—		300		200		300		200
Total	$	530,665	$	7,392	$	146,094	$	3,687	$	676,759	$	11,079
December 31, 2014
U.S. Treasury securities	$	8,259	$	13	$	—	$	—	$	8,259	$	13
Government sponsored agencies	166,963		406		31,927		105		198,890		511
State and political subdivisions	62,310		3,348		36,847		1,226		99,157		4,574
Residential mortgage-backed securities	17,276		52		180,194		1,491		197,470		1,543
Collateralized mortgage obligations	63,077		179		31,620		1,015		94,697		1,194
Corporate bonds	—		—		14,952		48		14,952		48
Trust preferred securities	—		—		7,090		3,410		7,090		3,410
Total	$	317,885	$	3,998	$	302,630	$	7,295	$	620,515	$	11,293
June 30, 2014
Government sponsored agencies	$	2,377	$	2	$	44,786	$	139	$	47,163	$	141
State and political subdivisions	92,279		4,047		71,421		2,282		163,700		6,329
Residential mortgage-backed securities	10,144		60		197,042		1,362		207,186		1,422
Collateralized mortgage obligations	47,142		68		35,722		1,060		82,864		1,128
Corporate bonds	4,996		5		14,922		78		19,918		83
Trust preferred securities	—		—		6,775		3,725		6,775		3,725
Total	$	156,938	$	4,182	$	370,668	$	8,646	$	527,606	$	12,828

An assessment is performed quarterly by the Corporation to determine whether unrealized losses in its investment securities portfolio are temporary or other-than-temporary by carefully considering all available information. The Corporation reviews factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. Management did not believe any individual unrealized loss on any investment security, as of June 30, 2015, represented an other-than-temporary impairment (OTTI). Management believed that the unrealized losses on investment securities at June 30, 2015 were temporary in nature and due primarily to changes in interest rates and reduced market liquidity and not as a result of credit-related issues.

At June 30, 2015, the Corporation did not have the intent to sell any of its impaired investment securities and believed that it was more-likely-than-not that the Corporation will not have to sell any such investment securities before a full recovery of amortized cost. Accordingly, at June 30, 2015, the Corporation believed the impairments in its investment securities portfolio were temporary in nature. However, there is no assurance that OTTI may not occur in the future.

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Acquisitions

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisitions

Acquisitions

Acquisition of Lake Michigan Financial Corporation

On May 31, 2015, the Corporation acquired all the outstanding stock consideration of Lake Michigan Financial Corporation (Lake Michigan) for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. As a result of the acquisition, the Corporation issued approximately 4.3 million shares of its common stock, based on an exchange ratio of 1.326 shares of its common stock, and paid $16.64 in cash, for each share of Lake Michigan common stock outstanding. Lake Michigan, a bank holding company which owned The Bank of Holland and The Bank of Northern Michigan, provided traditional banking services and products with five banking offices in Holland, Grand Haven, Grand Rapids, Petoskey and Traverse City, Michigan. The Bank of Holland and The Bank of Northern Michigan will be operated as separate subsidiaries of the Corporation until their planned consolidation with and into Chemical Bank in the fourth quarter of 2015 in conjunction with conversion of their core data systems to Chemical Bank's.

At the acquisition date, Lake Michigan added total assets of $1.24 billion, including total loans of $986 million, and total deposits of $925 million to the Corporation's consolidated statement of financial position. The Corporation recorded $100 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Lake Michigan. In addition, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

The results of the merged Lake Michigan operations are presented within the Corporation's consolidated financial statements from the acquisition date. The Bank of Holland and The Bank of Northern Michigan collectively contributed $3.2 million of net interest income, $0.3 million of noninterest income and $1.1 million of net income to the Corporation's consolidated statements of income for the one month period from the acquisition date of May 31, 2015 to June 30, 2015. Nonrecurring transaction-related expenses associated with the Lake Michigan transaction totaled $2.0 million and $2.3 million during the three and six months ended June 30, 2015, respectively.

The summary computation of the purchase price, including adjustments to reflect Lake Michigan's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Lake Michigan is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provides the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time.

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share)	$	130,916
Fair value of Lake Michigan options converted to the Corporation's options	2,000
Cash paid to acquire outstanding stock	54,478
Total purchase price	$	187,394
Net assets acquired:
Lake Michigan shareholders' equity	$	89,280
Adjustments to reflect fair value of net assets acquired:
Loans	(22,600		)
Allowance for loan losses	15,888
Premises and equipment	(2,333		)
Core deposit intangibles	7,303
Deferred tax assets, net	2,269
Deposits and borrowings, net	(3,048		)
Other assets and other liabilities	633
Fair value of adjusted net assets acquired	87,392
Goodwill recognized as a result of the Lake Michigan transaction	$	100,002

Allocation of Purchase Price

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Lake Michigan were as follows (in thousands):

Assets
Cash and cash equivalents	$	39,301
Investment securities	66,699
Loans	985,542
Premises and equipment	13,673
Deferred tax asset, net	14,888
Goodwill	100,002
Core deposit intangible asset	7,303
Bank-owned life insurance	23,844
Other assets	38,449
Assets acquired, at fair value	1,289,701
Liabilities
Deposits	924,697
Short-term borrowings	30,000
Other borrowings	124,723
Other liabilities	22,887
Total liabilities acquired, at fair value	1,102,307
Total purchase price	$	187,394

Upon acquisition, the Lake Michigan loan portfolio had contractually required principal and interest payments receivable of $1.01 billion and $190.2 million, respectively, expected principal and interest cash flows of $986.1 million and $189.6 million, respectively, and a fair value of $985.5 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $22.6 million at the acquisition date, with $22.0 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $190.2 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Lake Michigan acquired loan portfolio were $990 million and $967 million, respectively, and there was no related allowance for loan losses at that date.

Acquisition of Monarch Community Bancorp, Inc.

On April 1, 2015, the Corporation acquired all of the outstanding stock of Monarch Community Bancorp, Inc. (Monarch) in an all-stock transaction valued at $27.2 million. As a result of the acquisition, the Corporation issued 860,575 shares of its common stock based on an exchange ratio of 0.0982 shares of its common stock for each share of Monarch common stock outstanding. Monarch, a bank holding company, owned Monarch Community Bank, which operated five full service branch offices in Coldwater, Marshall, Hillsdale and Union City, Michigan. As of the April 1, 2015 acquisition date, Monarch added total assets of $183 million, including total loans of $122 million, and total deposits of $144 million to the Corporation's consolidated statement of financial position. Monarch Community Bank was consolidated with and into Chemical Bank on May 8, 2015. In connection with the acquisition of Monarch, the Corporation recorded $5.4 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Monarch. In addition, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

The results of the merged Monarch operations are presented within the Corporation's consolidated financial statements from the acquisition date. The disclosure of Monarch's post-acquisition revenue and net income is not practical due to the combining of Monarch's operations with and into Chemical Bank early in the second quarter of 2015. Nonrecurring transaction-related expenses associated with the Monarch acquisition totaled $1.5 million and $2.3 million during the three and six months ended June 30, 2015, respectively.

The summary computation of the purchase price, including adjustments to reflect Monarch's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Monarch is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provide the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time.

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):

Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share)	$	26,988
Cash paid	203
Total purchase price	$	27,191
Net assets acquired:
Monarch shareholders' equity	15,270
Adjustments to reflect fair value of net assets acquired:
Loans	(7,150		)
Allowance for loan losses	2,128
Deferred tax assets, net:
Net operating loss carryforward	7,900
Other	1,748
Premises and equipment	(370		)
Core deposit intangibles	1,930
Mortgage servicing rights	315
Other assets and other liabilities	37
Fair value of adjusted net assets acquired	21,808
Goodwill recognized as a result of the Monarch transaction	$	5,383

Allocation of Purchase Price

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Monarch were as follows (in thousands):

Assets
Cash and cash equivalents	$	32,171
Loans	121,783
Premises and equipment	3,064
Deferred tax assets, net
Net operating loss carryforward	7,900
Other	2,314
Interest receivable and other assets	6,972
Goodwill	5,383
Core deposit intangibles	1,930
Mortgage servicing rights	1,284
Assets acquired, at fair value	182,801
Liabilities
Deposits	144,311
FHLB advances	8,000
Interest payable and other liabilities	3,299
Total liabilities acquired, at fair value	155,610
Total purchase price	$	27,191

Upon acquisition, the Monarch loan portfolio had contractually required principal and interest payments receivable of $128.9 million and $37.8 million, respectively, expected principal and interest cash flows of $122.6 million and $37.1 million, respectively, and a fair value of $121.8 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $7.1 million at the acquisition date, with $6.3 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $37.9 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Monarch acquired loan portfolio were $126 million and $119 million, respectively, and there was no related allowance for loan losses at that date.

Upon acquisition, Monarch incurred an ownership change within the meaning of IRC Section 382. At April 1, 2015, Monarch had $22.6 million in gross federal net operating loss carryforwards that expire between 2028-2034, which the Corporation expects to utilize. The Corporation expects to utilize these net operating losses, in part, as Monarch was in a net unrealized built-in gain position as of the acquisition date. Monarch also had $1.7 million of general business credits that expire between 2026-2032, which the Corporation does not expect to utilize.

Unaudited Pro Forma Combined Results of Operations

The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Interest income	$	78,137	$	74,842	$	154,261	$	148,089
Interest expense	5,483		6,748		11,363		13,627
Net interest income	72,654		68,094		142,898		134,462
Provision for loan losses	1,500		1,860		3,000		4,035
Net interest income after provision for loan losses	71,154		66,234		139,898		130,427
Noninterest income	21,153		23,713		43,180		43,487
Operating expenses	62,394		59,915		123,042		121,241
Income before income taxes	29,913		30,032		60,036		52,673
Federal income tax expense	7,525		9,048		16,736		15,807
Net income	$	22,388	$	20,984	$	43,300	$	36,866
Net income per common share:
Basic	$	0.59	$	0.60	$	1.14	$	1.05
Diluted	0.58		0.59		1.13		1.04
Weighted average shares outstanding:
Basic	38,044		35,251		38,024		35,129
Diluted	38,279		35,462		38,259		35,398

Acquisition of Northwestern Bancorp, Inc.

On October 31, 2014, the Corporation acquired all of the outstanding stock of Northwestern Bancorp, Inc. (Northwestern) for total cash consideration of $121 million. Northwestern, a bank holding company which owned Northwestern Bank, provided traditional banking services and products through 25 banking offices serving communities in the northwestern lower peninsula of Michigan. At the acquisition date, Northwestern added total assets of $815 million, including total loans of $475 million, and total deposits of $794 million to the Corporation. Northwestern Bank was consolidated with and into Chemical Bank as of the acquisition date. In connection with the acquisition of Northwestern, the Corporation recorded $60.0 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Northwestern. In addition, the Corporation recorded $12.9 million of core deposit intangible assets in conjunction with the acquisition.

Upon acquisition, the Northwestern loan portfolio had contractually required principal and interest payments receivable of $507 million and $112 million, respectively, expected principal and interest cash flows of $481 million and $104 million, respectively, and a fair value of $475 million. The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $34 million at the acquisition date, with $26 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $110 million at the acquisition date. The outstanding contractual principal balance and the carrying amount of the Northwestern acquired loan portfolio were $415 million and $382 million, respectively, at June 30, 2015, compared to $485 million and $452 million, respectively, at December 31, 2014.

Acquisition of 21 Branches

On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation, located in the Northeast and Battle Creek regions of Michigan, including $404 million in deposits and $44 million in loans (branch acquisition transaction). The purchase price of the branch offices, including equipment, was $8.1 million and the Corporation paid a premium on deposits of $11.5 million, or approximately 2.85% of total deposits. The loans were purchased at a discount of 1.75%. In connection with the branch acquisition transaction, the Corporation recorded goodwill of $6.8 million and other intangible assets attributable to customer core deposits of $5.6 million.

Acquisition of O.A.K. Financial Corporation (OAK)

On April 30, 2010, the Corporation acquired OAK in an all-stock transaction for total consideration of $83.7 million. OAK provided traditional banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At the acquisition date, OAK added total assets of $820 million, including total loans of $627 million, and total deposits of $693 million, including brokered deposits of $193 million. Upon acquisition, the OAK loan portfolio had contractually required principal payments receivable of $683 million and a fair value of $627 million. The outstanding contractual principal balance and the carrying amount of the OAK acquired loan portfolio were $236 million and $215 million, respectively, at June 30, 2015, compared to $268 million and $246 million, respectively, at December 31, 2014 and $298 million and $274 million, respectively, at June 30, 2014.

Accretable Yield

Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:

	Six Months Ended June 30,
	2015															2014
	Lake Michigan			Monarch			North-western			OAK			Total			OAK
	(In thousands)
Balance at beginning of period	$	—		$	—		$	104,675		$	33,286		137,961			$	32,610
Additions attributable to acquisitions	190,246			37,914			—			—			228,160			—
Additions (reductions)*	1,550			(1,141		)	(2,859		)	5,215			2,765			2,333
Accretion recognized in interest income	(3,486		)	(968		)	(10,058		)	(6,326		)	(20,838		)	(7,594		)
Reclassification from nonaccretable difference	—			—			—			—			—			10,000
Balance at end of period	$	188,310		$	35,805		$	91,758		$	32,175		$	348,048		$	37,349

*Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through three commercial banks, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan. The Bank of Holland and The Bank of Northern Michigan, which were acquired in the May 31, 2015 acquisition of Lake Michigan Financial Corporation (Lake Michigan), are expected to be consolidated with and into Chemical Bank during the fourth quarter of 2015 in conjunction with the conversion of their core data systems to Chemical Bank's. In addition, the Corporation acquired Monarch Community Bank as part of its April 1, 2015 acquisition of Monarch Community Bancorp, Inc. (Monarch). Monarch Community Bank was consolidated with and into Chemical Bank during the second quarter of 2015. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products.

The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue.

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Use of Estimates

Use of Estimates

Management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, fair value amounts related to business combinations, pension expense, income taxes, goodwill impairment and those assets that require fair value measurement. Actual results could differ from these estimates.

Business Combinations Policy [Policy Text Block]

Business Combinations

Pursuant to the guidance of ASC Topic 805, Business Combinations (ASC 805), the Corporation recognizes assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and restructuring costs expensed in the period incurred.

On May 31, 2015, the Corporation acquired all the outstanding stock of Lake Michigan for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. The Corporation recorded $100 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

On April 1, 2015, the Corporation acquired all the outstanding stock of Monarch in an all-stock transaction valued at $27.2 million. The Corporation recorded $5.4 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

ASC 805 affords a measurement period beyond the acquisition date that allows the Corporation the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. The Corporation anticipates that measurement period adjustments may arise from adjustments to the fair values of assets and liabilities recognized at the acquisition date for Northwestern Bancorp, Inc. (Northwestern), which occurred on October 31, 2014, Lake Michigan, and Monarch, as additional information is obtained, such as appraisals of collateral securing loans and other borrower information. In the event that a measurement period adjustment is identified, the Corporation will recognize the adjustment as part of its acquisition accounting, which may result in an adjustment to goodwill being recorded.

See Note 2 for further information regarding the Corporation's acquisitions.

Originated Loans

Originated Loans

Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period.

The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months) and collectibility is no longer in doubt.

Loans Acquired in a Business Combination

Loans Acquired in a Business Combination

Loans acquired in a business combination (acquired loans) consist of loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern, and on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date.

The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 2 pools in the acquisition of Lake Michigan, 2 pools in the acquisition of Monarch, 4 pools in the acquisition of Northwestern and 14 pools in the acquisition of OAK based upon common risk characteristics, including types of loans, commercial type loans with similar risk grades and whether loans were performing or nonperforming. A pool is considered a single unit of accounting for the purposes of applying the guidance prescribed in ASC 310-30. A loan will be removed from a pool of acquired loans only if the loan is sold, foreclosed, paid off or written off, and will be removed from the pool at the carrying value. If an individual loan is removed from a pool of loans, the difference between its relative carrying amount and the cash, fair value of the collateral, or other assets received would not affect the effective yield used to recognize the accretable difference on the remaining pool. The Corporation estimated the cash flows expected to be collected over the life of the pools of loans at acquisition and estimates expected cash flows quarterly thereafter, based on a set of assumptions including expectations as to default rates, prepayment rates and loss severities. The Corporation must make numerous assumptions, interpretations and judgments using internal and third-party credit quality information to determine whether it is probable that the Corporation will be able to collect all contractually required payments. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved.

The calculation of the fair value of the acquired loan pools entails estimating the amount and timing of cash flows attributable to both principal and interest expected to be collected on such loan pools and then discounting those cash flows at market interest rates. The excess of a loan pool's expected cash flows at the acquisition date over its estimated fair value is referred to as the "accretable yield," which is recognized into interest income over the estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool.

Loans Modified Under Troubled Debt Restructurings

Loans Modified Under Troubled Debt Restructurings

Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. In accordance with ASC Topic 310-30, acquired loans are excluded from TDRs as these loans are accounted for in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been renewed by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR.

Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the loan.

Loans in the Corporation’s consumer loan portfolio (comprised of residential mortgage, consumer installment and home equity loans) that meet the definition of a performing or nonperforming TDR generally consist of residential mortgage loans that include a concession that reduces a borrower’s monthly payments by decreasing the interest rate charged on the loan for a specified period of time (generally 24 months) under a formal modification agreement. The Corporation recognizes an additional provision for loan losses related to impairment on these loans on an individual basis based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. These loans continue to accrue interest at their effective interest rate, which consists of contractual interest under the terms of the modification agreement in addition to an adjustment for the accretion of computed impairment. These loans are moved to nonaccrual status if they become 90 days past due as to principal or interest payments, or sooner if conditions warrant.

Impaired Loans

Impaired Loans

A loan is defined to be impaired when it is probable that payment of principal and interest will not be paid in accordance with the original contractual terms of the loan agreement. Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with original contractual terms. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's original effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. When the present value of expected cash flows or the fair value of collateral of an impaired loan in the originated loan portfolio is less than the amount of unpaid principal outstanding on the loan, the principal balance of the loan is reduced to its carrying value through either an allocation of the allowance for loan losses or a partial charge-off of the loan balance.

Nonperforming Loans

Nonperforming Loans

Nonperforming loans are comprised of loans for which the accrual of interest has been discontinued (nonaccrual loans, including nonaccrual TDRs), accruing originated loans contractually past due 90 days or more as to interest or principal payments and nonperforming TDRs.

Acquired loans that were classified as nonperforming loans prior to being acquired and acquired loans that are not performing in accordance with contractual terms subsequent to acquisition are not classified as nonperforming loans subsequent to acquisition because the loans are recorded in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses (allowance) is presented as a reserve against loans. The allowance represents management’s assessment of probable loan losses inherent in the Corporation’s loan portfolio.

Management’s evaluation of the adequacy of the allowance is based on a continuing review of the loan portfolio, actual loan loss experience, the underlying value of the collateral, risk characteristics of the loan portfolio, the level and composition of nonperforming loans, the financial condition of the borrowers, the balance of the loan portfolio, loan growth, economic conditions, employment levels in the Corporation’s local markets, and special factors affecting specific business sectors. The Corporation maintains formal policies and procedures to monitor and control credit risk. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio.

The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be incurred in the remainder of the originated loan portfolio, but that have not been specifically identified. The Corporation utilizes its own loss experience to estimate inherent losses on loans. Internal risk ratings are assigned to each loan in the commercial loan portfolio (commercial, commercial real estate, real estate construction and land development loans) at the time of origination and are subject to subsequent periodic reviews by senior management. The Corporation performs a detailed credit quality review quarterly on all loans greater than $0.25 million that have deteriorated below certain levels of credit risk, and may allocate a specific portion of the allowance to such loans based upon this review. A portion of the allowance is allocated to the remaining loans by applying projected loss ratios, based on numerous factors. Projected loss ratios incorporate factors such as charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty.

In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five-year historical loan loss experience, with higher weighting placed on the most recent years, loan loss trends giving consideration to estimated loss emergence periods and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment.

Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off.

Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods.

Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations.

Fair Value Measurements

Fair Value Measurements

Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data.

The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2015, December 31, 2014 and June 30, 2014, the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities.

Share-Based Compensation

Share-Based Compensation

The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period.

Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows.

Life Insurance, Corporate or Bank Owned [Text Block]

Bank-Owned Life Insurance

The Corporation has life insurance policies on certain key officers of its bank subsidiaries. The majority of the bank-owned life insurance policies of the Corporation were obtained through its acquisition of Lake Michigan. Bank-owned life insurance is recorded at the cash surrender value, net of surrender charges, and is included within other assets on the consolidated statements of financial position and changes in the cash surrender values are recorded as other noninterest income on the consolidated statements of income.

Income and Other Taxes

Income and Other Taxes

The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and any other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law.

On a quarterly basis, management assesses the reasonableness of its effective federal tax rate based upon its estimate of taxable income and the applicable taxes expected for the full year. Deferred tax assets and liabilities are reassessed on a quarterly basis, including the need for a valuation allowance for deferred tax assets. In conjunction with the acquisition of Monarch, the Corporation has net operating loss carryforwards, which are limited under Internal Revenue Code (IRC) Section 382, included in deferred tax assets. See Note 2 for further information regarding the net operating loss carryforward.

Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2015, December 31, 2014 or June 30, 2014. Tax returns open to examination by the Internal Revenue Service (IRS) include those for the calendar years ended December 31, 2014, 2013, 2012 and 2011 for the Corporation, Lake Michigan, Monarch and Northwestern. Monarch's tax returns for the calendar years ended 2009-2013 are currently under an IRS examination.

Investments in Tax Credit Projects [Policy Text Block]

Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits

The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment of these projects comes in the form of the tax credits and and tax losses that pass through to the Corporation. The carrying value of the investments are reflected in other assets on the consolidated statements of financial position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects.

Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.2 million and $0.3 million during the three and six months ended June 30, 2015, respectively, and $0.1 million and $0.2 million during the three and six months ended June 30, 2014, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $21.4 million at June 30, 2015, $4.9 million at December 31, 2014 and$3.1 million atJune 30, 2014. The increase in qualified affordable housing project investments at June 30, 2015, compared to December 31, 2014 and June 30, 2014, was attributable to investments acquired as part of the Lake Michigan transaction.

Under the equity method, the Corporation's share of the earnings or losses are included in other operating expenses on the consolidated statements of income. The Corporation's investment in new market projects accounted for under the equity method totaled $3.3 million at June 30, 2015. There were no investments in such projects accounted for under the equity method as of December 31, 2014 or June 30, 2014.

The Corporation's unfunded equity contributions relating to investments in qualified affordable housing projects, federal historic tax projects and new market projects is recorded in other liabilities on the consolidated statements of financial position. The Corporation's remaining unfunded equity contributions totaled $9.7 million at June 30, 2015.

Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. There were no impairment losses recognized as of June 30, 2015, December 31, 2014 or June 30, 2014.

The Corporation consolidates variable interest entities (VIEs) in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. The Corporation is a significant limited partner in the qualified affordable housing, federal historic and new market projects it has invested in. These projects meet the definition of VIEs. However, the Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Corporation's consolidated financial statements.

Shareholders' Equity

Shareholders’ Equity

Common Stock Repurchase Programs

From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share.

In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2015, there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase program.

Underwritten Public Offerings of Common Stock

On June 24, 2014, the Corporation issued and sold 2,500,000 shares of common stock at a public offering price of $28.00 per share. An additional 375,000 shares were issued and sold on June 30, 2014 upon the exercise in full of the underwriters' over-allotment option. The net proceeds from the issuance and sale of the common stock of this $80.5 million offering, after deducting the underwriting discount and issuance-related expenses, totaled $76.2 million.

On September 18, 2013, the Corporation issued and sold 2,213,750 shares of common stock, including 288,750 shares of common stock that were issued and sold upon the exercise in full of the underwriters' over-allotment option, at a public offering price of $26.00 per share. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $53.9 million.

Shelf Registration

On June 12, 2014, the Corporation filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so.

Preferred Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation which eliminated and replaced the previous class of 200,000 shares of preferred stock, that had been approved by shareholders on April 20, 2009, with a new class of 2,000,000 shares of preferred stock. At June 30, 2015, no shares of preferred stock were issued and outstanding.

Common Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 45,000,000 to 60,000,000.

Legal Matters

Legal Matters

The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation.

Reclassifications [Text Block]

Reclassifications

Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported.

Adopted Accounting Pronouncements

Adopted Accounting Pronouncements

In-Substance Foreclosures

In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-04). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. The adoption of ASU 2014-04 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Share-Based Compensation

In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Corporation's early adoption of ASU 2014-12 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Government-Guaranteed Mortgage Loans

In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-14). ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. Upon foreclosure of a government-guaranteed mortgage loan, the loan should be derecognized and a separate other receivable should be recognized if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor at the time of foreclosure. ASU 2014-14 is effective for public companies for interim and annual periods beginning after December 15, 2014. An entity should adopt using either the modified retrospective method or the prospective transition method. An entity must apply the same method elected under ASU 2014-04. Early adoption is permitted if the entity has already adopted ASU 2014-04. The adoption of ASU 2014-14 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Pending Accounting Pronouncements

Pending Accounting Pronouncements

There are no recent accounting pronouncements that have been issued by the FASB that would have a material impact on the financial statements of the Corporation.

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents.

Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a net loss is recorded, the assumed exercise of stock options, restricted stock units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the net loss per common share and thus are excluded in the diluted earnings per common share calculation.

The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Numerator for both basic and diluted earnings per common share, net income	$	19,024	$	16,236	$	36,859	$	30,049
Denominator for basic earnings per common share, weighted average common shares outstanding	35,162		30,068		33,992		29,947
Weighted average common stock equivalents	235		211		235		212
Denominator for diluted earnings per common share	35,397		30,279		34,227		30,159
Basic earnings per common share	$	0.54	$	0.54	$	1.08	$	1.00
Diluted earnings per common share	0.54		0.54		1.08		1.00

The average number of exercisable employee stock option awards outstanding that were “out-of-the-money,” whereby the option exercise price per share exceeded the market price per share and, therefore, were not included in the computation of diluted earnings per common share because they would have been anti-dilutive totaled 80,700 and 249,150 for the three months ended June 30, 2015 and 2014, respectively, and 100,875 and 252,529 for six-month period ended June 30, 2015 and 2014, respectively.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows:

	June 30, 2015			December 31, 2014			June 30, 2014
	(In thousands)
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014	$	(274	)	$	(210	)	$	800
Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014	(30,830		)	(32,243		)	(18,788		)
Accumulated other comprehensive loss	$	(31,104	)	$	(32,453	)	$	(17,988	)

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Intangible Assets (Carrying and Fair Value of MSRs) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Net carrying value, fair value of MSRs and loans Corporation servicing for others
Loans serviced for others that have servicing rights capitalized	$ 2,193,067	$ 2,093,140	$ 871,158
Mortgage servicing rights [Member]
Net carrying value, fair value of MSRs and loans Corporation servicing for others
Net carrying value of MSRs	12,307	12,217	3,344
Fair value of MSRs	$ 16,602	$ 14,979	$ 6,433

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Loans

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans

Loans

Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity’s loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has seven classes of loans, which are set forth below.

Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate.

Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development.

Real estate construction — Secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period.

Land development — Secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at June 30, 2015, December 31, 2014 and June 30, 2014 were primarily comprised of loans to develop residential properties.

Residential mortgage — Loans secured by one- to four-family residential properties, generally with fixed interest rates for periods of fifteen years or less. The loan-to-value ratio at the time of origination is generally 80% or less. Residential mortgage loans with a loan-to-value ratio of more than 80% generally require private mortgage insurance.

Consumer installment — Loans to consumers primarily for the purpose of acquiring automobiles, recreational vehicles and personal watercraft and comprised primarily of indirect loans purchased from dealers. These loans consist of relatively small amounts that are spread across many individual borrowers.

Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan.

Commercial, commercial real estate, real estate construction and land development loans are referred to as the Corporation’s commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation’s consumer loan portfolio. A summary of loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,754,873	$	1,354,881	$	1,212,383
Commercial real estate	2,243,513		1,557,648		1,298,365
Real estate construction	101,717		152,745		101,168
Land development	10,595		18,750		10,956
Subtotal	4,110,698		3,084,024		2,622,872
Consumer loan portfolio:
Residential mortgage	1,310,167		1,110,390		970,397
Consumer installment	887,907		829,570		744,781
Home equity	725,971		664,246		560,754
Subtotal	2,924,045		2,604,206		2,275,932
Total loans	$	7,034,743	$	5,688,230	$	4,898,804

Credit Quality Monitoring

The Corporation maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally only within the Corporation’s market areas. The Corporation’s lending markets generally consist of communities across the lower peninsula of Michigan, except for the southeastern portion of Michigan. The Corporation has no foreign loans.

The Corporation, through its subsidiary banks, has a commercial loan portfolio approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Corporation’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. The approval authority of relationship managers is established based on experience levels, with credit decisions greater than $1.0 million requiring group loan authority approval, except for six executive and senior officers who have varying limits exceeding $1.5 million and up to $3.5 million. During the first quarter of 2015, the Corporation increased the upper range for each level of group loan authority by $5.0 million, resulting in group loan authorities as follows. Chemical Bank has a loan committee, consisting of certain executive and senior officers, that meets weekly to consider loans ranging in amounts from $1.0 million to $10.0 million, depending on risk rating and credit action required. A directors’ loan committee of Chemical Bank, consisting of eight independent members of the board of directors of Chemical Bank, the chief executive officer of Chemical Bank and senior credit officer of Chemical Bank, meets bi-weekly to consider loans in amounts over $10.0 million, and certain loans under $10.0 million depending on a loan’s risk rating and credit action required. Loans over $15.0 million require majority approval of the board of directors of Chemical Bank. The approval authorities of relationship managers at The Bank of Holland and The Bank of Northern Michigan are similar to those at Chemical Bank, while approval authority for the loan committees at The Bank of Holland and The Bank of Northern Michigan are lower than those at Chemical Bank. Further, certain loan relationships of The Bank of Holland and The Bank of Northern Michigan, depending on a loan’s risk rating and credit action needed, require approval by the directors' loan committee of Chemical Bank, in addition to approval by the respective board of directors of The Bank of Holland or The Bank of Northern Michigan.

The majority of the Corporation’s consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation’s consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation’s collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred.

Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly.

The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio.

Credit Quality Indicators

Commercial Loan Portfolio

The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower’s financial statements. The loan grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Corporation’s loan grades (or characteristics of the loans within each grade) follows:

Risk Grades 1-5 (Acceptable Credit Quality) — All loans in risk grades 1 through 5 are considered to be acceptable credit risks by the Corporation and are grouped for purposes of allowance for loan loss considerations and financial reporting. The five grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within risk grades 1 through 5 range from Risk Grade 1: Prime Quality (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan-to-value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 5: Acceptable Quality With Care (factors include: acceptable business credit, but with added risk due to specific industry or internal situations).

Risk Grade 6 (Watch) — A business credit that is not acceptable within the Corporation’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short-term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan requires constant monitoring and attention from the Corporation; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects.

Risk Grade 7 (Substandard — Accrual) — A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non-existent; quality financial information is not available; a high level of maintenance is required by the Corporation; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The Corporation still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Corporation will sustain some loss if deficiencies are not corrected.

Risk Grade 8 (Substandard — Nonaccrual) — A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as risk grade 7 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established.

Risk Grade 9 (Substandard — Doubtful) — A business credit that has all the weaknesses inherent in a loan classified as risk grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge-off is recorded when management deems an amount uncollectible; however, the Corporation will establish a valuation allowance for probable losses, if required.

The Corporation considers all loans graded 1 through 5 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans graded 6 and 7 are considered higher-risk credits than loans graded 1 through 5 and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans graded 8 and 9 are considered problematic and require special care. Further, loans graded 6 through 9 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Corporation, which include highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Corporation’s special assets group.

The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2015, December 31, 2014 and June 30, 2014:

	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
June 30, 2015
Originated Portfolio:
Risk Grades 1-5	$	1,269,091	$	1,273,725	$	94,894	$	2,470	$	2,640,180
Risk Grade 6	32,189		34,677		—		433		67,299
Risk Grade 7	41,316		29,737		1,249		878		73,180
Risk Grade 8	17,260		25,283		247		255		43,045
Risk Grade 9	—		4		—		—		4
Subtotal	1,359,856		1,363,426		96,390		4,036		2,823,708
Acquired Portfolio:
Risk Grades 1-5	347,914		820,400		5,122		5,017		1,178,453
Risk Grade 6	29,412		22,796		—		71		52,279
Risk Grade 7	13,910		30,288		—		119		44,317
Risk Grade 8	3,781		6,603		205		1,352		11,941
Risk Grade 9	—		—		—		—		—
Subtotal	395,017		880,087		5,327		6,559		1,286,990
Total	$	1,754,873	$	2,243,513	$	101,717	$	10,595	$	4,110,698
December 31, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,171,817	$	1,114,529	$	134,668	$	2,952	$	2,423,966
Risk Grade 6	37,800		34,996		1,408		738		74,942
Risk Grade 7	29,863		29,935		2,502		613		62,913
Risk Grade 8	16,417		24,958		162		225		41,762
Risk Grade 9	1		8		—		—		9
Subtotal	1,255,898		1,204,426		138,740		4,528		2,603,592
Acquired Portfolio:
Risk Grades 1-5	76,780		321,018		14,005		11,789		423,592
Risk Grade 6	12,687		8,698		—		583		21,968
Risk Grade 7	4,089		12,478		—		197		16,764
Risk Grade 8	5,427		11,028		—		1,653		18,108
Risk Grade 9	—		—		—		—		—
Subtotal	98,983		353,222		14,005		14,222		480,432
Total	$	1,354,881	$	1,557,648	$	152,745	$	18,750	$	3,084,024
June 30, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,067,000	$	1,063,555	$	85,754	$	2,514	$	2,218,823
Risk Grade 6	15,459		30,053		666		965		47,143
Risk Grade 7	37,291		35,946		1,995		627		75,859
Risk Grade 8	18,560		25,347		160		2,184		46,251
Risk Grade 9	213		14		—		—		227
Subtotal	1,138,523		1,154,915		88,575		6,290		2,388,303
Acquired Portfolio:
Risk Grades 1-5	59,993		132,898		12,593		2,546		208,030
Risk Grade 6	6,769		3,822		—		—		10,591
Risk Grade 7	3,197		6,730		—		143		10,070
Risk Grade 8	3,901		—		—		1,977		5,878
Risk Grade 9	—		—		—		—		—
Subtotal	73,860		143,450		12,593		4,666		234,569
Total	$	1,212,383	$	1,298,365	$	101,168	$	10,956	$	2,622,872

Consumer Loan Portfolio

The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments or classified as a nonperforming TDR are considered to be in a nonperforming status. Nonaccrual TDRs in the consumer loan portfolio are included with nonaccrual loans, while other TDRs in the consumer loan portfolio are considered in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered in a performing status.

The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2015, December 31, 2014 and June 30, 2014:

	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
	(In thousands)
June 30, 2015
Originated Loans:
Performing	$	1,058,696	$	871,543	$	584,520	$	2,514,759
Nonperforming	9,793		393		2,357		12,543
Subtotal	1,068,489		871,936		586,877		2,527,302
Acquired Loans:
Performing	238,698		15,966		138,086		392,750
Nonperforming	2,980		5		1,008		3,993
Subtotal	241,678		15,971		139,094		396,743
Total	$	1,310,167	$	887,907	$	725,971	$	2,924,045
December 31, 2014
Originated Loans:
Performing	$	987,542	$	818,878	$	566,083	$	2,372,503
Nonperforming	10,459		500		3,013		13,972
Subtotal	998,001		819,378		569,096		2,386,475
Acquired Loans:
Performing	111,101		10,174		94,696		215,971
Nonperforming	1,288		18		454		1,760
Subtotal	112,389		10,192		95,150		217,731
Total	$	1,110,390	$	829,570	$	664,246	$	2,604,206
June 30, 2014
Originated Loans:
Performing	$	947,768	$	743,121	$	529,093	$	2,219,982
Nonperforming	12,217		536		3,371		16,124
Subtotal	959,985		743,657		532,464		2,236,106
Acquired Loans:
Performing	10,343		1,124		28,227		39,694
Nonperforming	69		—		63		132
Subtotal	10,412		1,124		28,290		39,826
Total	$	970,397	$	744,781	$	560,754	$	2,275,932

Nonperforming Loans

A summary of nonperforming loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Nonaccrual loans:
Commercial	$	17,260	$	16,418	$	18,773
Commercial real estate	25,287		24,966		25,361
Real estate construction	247		162		160
Land development	255		225		2,184
Residential mortgage	6,004		6,706		6,325
Consumer installment	393		500		536
Home equity	1,769		1,667		2,296
Total nonaccrual loans	51,215		50,644		55,635
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	711		170		15
Commercial real estate	56		—		69
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	424		557		376
Consumer installment	—		—		—
Home equity	588		1,346		1,075
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,779		2,073		1,535
Nonperforming TDRs:
Commercial loan portfolio	14,547		15,271		11,049
Consumer loan portfolio	3,365		3,196		5,516
Total nonperforming TDRs	17,912		18,467		16,565
Total nonperforming loans	$	70,906	$	71,184	$	73,735

The Corporation’s nonaccrual loans at June 30, 2015, December 31, 2014 and June 30, 2014 included $35.7 million, $37.2 million and $43.7 million, respectively, of nonaccrual TDRs.

The Corporation had $2.0 million of residential mortgage loans that were in the process of foreclosure at June 30, 2015, compared to $2.3 million and $3.6 million at  December 31, 2014 and June 30, 2014, respectively.

Impaired Loans

The following schedule presents impaired loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2015
Impaired loans with a valuation allowance:
Commercial	$	4,044	$	4,137	$	718
Commercial real estate	2,789		2,948		603
Residential mortgage	20,970		20,970		260
Subtotal	27,803		28,055		1,581
Impaired loans with no related valuation allowance:
Commercial	32,461		38,160		—
Commercial real estate	56,052		78,490		—
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	8,984		8,984		—
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Subtotal	103,066		132,985		—
Total impaired loans:
Commercial	36,505		42,297		718
Commercial real estate	58,841		81,438		603
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	29,954		29,954		260
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Total	$	130,869	$	161,040	$	1,581
December 31, 2014
Impaired loans with a valuation allowance:
Commercial	$	966	$	1,040	$	293
Commercial real estate	2,587		2,927		710
Residential mortgage	19,681		19,681		335
Subtotal	23,234		23,648		1,338
Impaired loans with no related valuation allowance:
Commercial	38,094		44,557		—
Commercial real estate	60,616		82,693		—
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	7,994		7,994		—
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Subtotal	111,433		141,622		—
Total impaired loans:
Commercial	39,060		45,597		293
Commercial real estate	63,203		85,620		710
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	27,675		27,675		335
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Total	$	134,667	$	165,270	$	1,338

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2014
Impaired loans with a valuation allowance:
Commercial	$	2,905	$	3,258	$	563
Commercial real estate	4,369		5,605		777
Residential mortgage	20,353		20,353		379
Subtotal	27,627		29,216		1,719
Impaired loans with no related valuation allowance:
Commercial	39,420		43,463		—
Commercial real estate	46,205		58,997		—
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	6,325		6,325		—
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Subtotal	99,153		119,489		—
Total impaired loans:
Commercial	42,325		46,721		563
Commercial real estate	50,574		64,602		777
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	26,678		26,678		379
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Total	$	126,780	$	148,705	$	1,719

The difference between an impaired loan’s recorded investment and the unpaid principal balance for originated loans represents a partial charge-off resulting from a confirmed loss due to the value of the collateral securing the loan being below the loan balance and management’s assessment that full collection of the loan balance is not likely, and for acquired loans that meet the definition of an impaired loan represents fair value adjustments recognized at the acquisition date attributable to expected credit losses and the discounting of expected cash flows at market interest rates. The difference between the recorded investment and the unpaid principal balance of $30.2 million, $30.6 million and $21.9 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, includes confirmed losses (partial charge-offs) of $15.2 million, $15.4 million and $18.2 million, respectively, and fair value discount adjustments of $15.0 million, $15.2 million and $3.7 million, respectively.

Impaired loans included $15.9 million, $19.9 million and $10.4 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, of acquired loans that were not performing in accordance with original contractual terms. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans. Impaired loans also included $45.8 million, $45.7 million and $44.1 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, of performing TDRs.

The following schedule presents information related to impaired loans for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	36,735	$	263	$	37,655	$	552
Commercial real estate	60,393		458		60,317		983
Real estate construction	390		2		515		2
Land development	1,900		34		1,888		61
Residential mortgage	29,432		380		28,392		711
Consumer installment	426		1		463		1
Home equity	2,529		14		2,440		22
Total	$	131,805	$	1,152	$	131,670	$	2,332

	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	42,629	$	347	$	42,118	$	680
Commercial real estate	51,260		366		52,290		727
Real estate construction	163		—		165		—
Land development	4,312		34		4,478		71
Residential mortgage	26,737		328		26,758		631
Consumer installment	634		—		704		—
Home equity	2,221		—		2,194		—
Total	$	127,956	$	1,075	$	128,707	$	2,109

The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
June 30, 2015
Originated Portfolio:
Commercial	$	4,055	$	2,317	$	711	$	17,260	$	24,343	$	1,335,513	$	1,359,856
Commercial real estate	2,754		1,117		56		25,287		29,214		1,334,212		1,363,426
Real estate construction	413		—		—		247		660		95,730		96,390
Land development	—		—		—		255		255		3,781		4,036
Residential mortgage	1,536		—		424		6,004		7,964		1,060,525		1,068,489
Consumer installment	2,526		302		—		393		3,221		868,715		871,936
Home equity	2,334		204		588		1,769		4,895		581,982		586,877
Total	$	13,618	$	3,940	$	1,779	$	51,215	$	70,552	$	5,280,458	$	5,351,010
Acquired Portfolio:
Commercial	$	690	$	—	$	3,781	$	—	$	4,471	$	390,546	$	395,017
Commercial real estate	969		291		6,603		—		7,863		872,224		880,087
Real estate construction	—		—		205		—		205		5,122		5,327
Land development	—		—		1,352		—		1,352		5,207		6,559
Residential mortgage	1,077		138		2,980		—		4,195		237,483		241,678
Consumer installment	—		56		5		—		61		15,910		15,971
Home equity	1,153		210		1,008		—		2,371		136,723		139,094
Total	$	3,889	$	695	$	15,934	$	—	$	20,518	$	1,663,215	$	1,683,733

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
December 31, 2014
Originated Portfolio:
Commercial	$	4,033	$	743	$	170	$	16,418	$	21,364	$	1,234,534	$	1,255,898
Commercial real estate	7,515		1,383		—		24,966		33,864		1,170,562		1,204,426
Real estate construction	262		—		—		162		424		138,316		138,740
Land development	—		—		—		225		225		4,303		4,528
Residential mortgage	2,126		54		557		6,706		9,443		988,558		998,001
Consumer installment	3,620		512		—		500		4,632		814,746		819,378
Home equity	3,039		660		1,346		1,667		6,712		562,384		569,096
Total	$	20,595	$	3,352	$	2,073	$	50,644	$	76,664	$	4,913,403	$	4,990,067
Acquired Portfolio:
Commercial	$	133	$	—	$	5,427	$	—	$	5,560	$	93,423	$	98,983
Commercial real estate	2,014		352		11,052		—		13,418		339,804		353,222
Real estate construction	—		—		—		—		—		14,005		14,005
Land development	—		—		1,653		—		1,653		12,569		14,222
Residential mortgage	156		—		18		—		174		112,215		112,389
Consumer installment	55		3		454		—		512		9,680		10,192
Home equity	636		106		1,288		—		2,030		93,120		95,150
Total	$	2,994	$	461	$	19,892	$	—	$	23,347	$	674,816	$	698,163
June 30, 2014
Originated Portfolio:
Commercial	$	4,149	$	1,901	$	15	$	18,773	$	24,838	$	1,113,685	$	1,138,523
Commercial real estate	5,933		233		69		25,361		31,596		1,123,319		1,154,915
Real estate construction	—		—		—		160		160		88,415		88,575
Land development	—		—		—		2,184		2,184		4,106		6,290
Residential mortgage	2,515		—		376		6,325		9,216		950,769		959,985
Consumer installment	2,513		313		—		536		3,362		740,295		743,657
Home equity	2,002		985		1,075		2,296		6,358		526,106		532,464
Total	$	17,112	$	3,432	$	1,535	$	55,635	$	77,714	$	4,546,695	$	4,624,409
Acquired Portfolio:
Commercial	$	—	$	—	$	6,744	$	—	$	6,744	$	67,116	$	73,860
Commercial real estate	—		—		1,594		—		1,594		141,856		143,450
Real estate construction	—		—		—		—		—		12,593		12,593
Land development	—		—		1,977		—		1,977		2,689		4,666
Residential mortgage	—		—		69		—		69		10,343		10,412
Consumer installment	20		—		—		—		20		1,104		1,124
Home equity	325		49		63		—		437		27,853		28,290
Total	$	345	$	49	$	10,447	$	—	$	10,841	$	263,554	$	274,395

Loans Modified Under Troubled Debt Restructurings (TDRs)

The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2015, December 31, 2014 and June 30, 2014:

	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
	(In thousands)
June 30, 2015
Commercial loan portfolio	$	28,203	$	14,547	$	32,001	$	74,751
Consumer loan portfolio	17,605		3,365		3,707		24,677
Total	$	45,808	$	17,912	$	35,708	$	99,428
December 31, 2014
Commercial loan portfolio	$	29,179	$	15,271	$	32,597	$	77,047
Consumer loan portfolio	16,485		3,196		4,594		24,275
Total	$	45,664	$	18,467	$	37,191	$	101,322
June 30, 2014
Commercial loan portfolio	$	29,296	$	11,049	$	40,351	$	80,696
Consumer loan portfolio	14,837		5,516		3,334		23,687
Total	$	44,133	$	16,565	$	43,685	$	104,383

The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015					Six Months Ended June 30, 2015
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	13	$	2,332	$	2,332	18	$	4,264	$	4,264
Commercial real estate	4	527		527		9	3,061		3,061
Land development	1	305		305		1	305		305
Subtotal – commercial loan portfolio	18	3,164		3,164		28	7,630		7,630
Consumer loan portfolio	29	1,633		1,631		39	1,969		1,967
Total	47	$	4,797	$	4,795	67	$	9,599	$	9,597

	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	15	$	3,575	$	3,575	27	$	11,931	$	11,931
Commercial real estate	12	3,134		3,134		21	5,924		5,924
Land development	—	—		—		1	72		72
Subtotal – commercial loan portfolio	27	6,709		6,709		49	17,927		17,927
Consumer loan portfolio	63	1,649		1,648		93	2,636		2,626
Total	90	$	8,358	$	8,357	142	$	20,563	$	20,553

The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate.

The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2015 and 2014, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	—	$	—	—	$	—
Commercial real estate	1	183		4	942
Subtotal – commercial loan portfolio	1	183		4	942
Consumer loan portfolio	—	—		1	33
Total	1	$	183	5	$	975
	Three Months Ended June 30, 2014			Six Months Ended June 30, 2014
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	5	$	771	6	$	875
Commercial real estate	3	603		5	2,273
Subtotal – commercial loan portfolio	8	1,374		11	3,148
Consumer loan portfolio	3	80		3	80
Total	11	$	1,454	14	$	3,228

Allowance for Loan Losses

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2015 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2015 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2015:
Beginning balance	$	46,819		$	24,579		$	3,858	$	75,256
Provision for loan losses	(626		)	(109		)	2,235		1,500
Charge-offs	(915		)	(1,809		)	—		(2,724		)
Recoveries	249			660			—		909
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Changes in allowance for loan losses for the six months ended June 30, 2015:
Beginning balance	$	44,156		$	28,803		$	2,724	$	75,683
Provision for loan losses	2,967			(3,336		)	3,369		3,000
Charge-offs	(2,419		)	(3,448		)	—		(5,867		)
Recoveries	823			1,302			—		2,125
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Allowance for loan losses balance at June 30, 2015 attributable to:
Loans individually evaluated for impairment	$	1,321		$	260		$	—	$	1,581
Loans collectively evaluated for impairment	44,206			23,061			6,093		73,360
Loans acquired with deteriorated credit quality	—			—			—		—
Total	$	45,527		$	23,321		$	6,093	$	74,941
Recorded investment (loan balance) at June 30, 2015:
Loans individually evaluated for impairment	$	85,799		$	20,970		$	—	$	106,769
Loans collectively evaluated for impairment	2,737,909			2,506,332			—		5,244,241
Loans acquired with deteriorated credit quality	1,286,990			396,743			—		1,683,733
Total	$	4,110,698		$	2,924,045		$	—	$	7,034,743

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method.

	Commercial Loan Portfolio		Consumer Loan Portfolio		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment	$	1,003	$	335	$	—	$	1,338
Loans collectively evaluated for impairment	43,153		27,968		2,724		73,845
Loans acquired with deteriorated credit quality	—		500		—		500
Total	$	44,156	$	28,803	$	2,724	$	75,683
Recorded investment (loan balance) at December 31, 2014:
Loans individually evaluated for impairment	$	86,221	$	19,681	$	—	$	105,902
Loans collectively evaluated for impairment	2,517,371		2,366,794		—		4,884,165
Loans acquired with deteriorated credit quality	480,432		217,731		—		698,163
Total	$	3,084,024	$	2,604,206	$	—	$	5,688,230

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated			Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2014:
Beginning balance	$	45,010		$	29,233		$	4,230		$	78,473
Provision for loan losses	439			1,287			(226		)	1,500
Charge-offs	(1,814		)	(1,561		)	—			(3,375		)
Recoveries	589			606			—			1,195
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Changes in allowance for loan losses for the six months ended June 30, 2014:
Beginning balance	$	44,482		$	30,145		$	4,445		$	79,072
Provision for loan losses	1,399			2,142			(441		)	3,100
Charge-offs	(3,023		)	(3,824		)	—			(6,847		)
Recoveries	1,366			1,102			—			2,468
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans individually evaluated for impairment	$	1,340		$	379		$	—		$	1,719
Loans collectively evaluated for impairment	42,884			28,686			4,004			75,574
Loans acquired with deteriorated credit quality	—			500			—			500
Total	$	44,224		$	29,565		$	4,004		$	77,793
Recorded investment (loan balance) at June 30, 2014:
Loans individually evaluated for impairment	$	86,823		$	20,353		$	—		$	107,176
Loans collectively evaluated for impairment	2,301,480			2,215,753			—			4,517,233
Loans acquired with deteriorated credit quality	234,569			39,826			—			274,395
Total	$	2,622,872		$	2,275,932		$	—		$	4,898,804

The allowance attributable to acquired loans of $0.5 million at December 31, 2014 and June 30, 2014 was primarily attributable to two consumer loan pools in the acquired loan portfolio that had a decline in expected cash flows. There were no material changes in expected cash flows for the remaining acquired loan pools at June 30, 2015, December 31, 2014 or June 30, 2014.

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Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The Corporation has the following types of intangible assets: goodwill, core deposit intangible assets, non-compete intangible assets and mortgage servicing rights (MSRs). Goodwill, core deposit intangible assets, and non-compete intangible assets arose as a result of business combinations or other acquisitions. MSRs arose as a result of selling residential mortgage loans in the secondary market while retaining the right to service these loans and receive servicing income over the life of the loan and from acquisitions of other banks that had MSRs. The majority of the MSRs recorded at June 30, 2015 were acquired as a result of the Northwestern and Monarch acquisitions. Amortization is recorded on the core deposit intangible assets, non-compete intangible assets and MSRs. Goodwill recorded is primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and other acquisitions.

During the second quarter of 2015, the Corporation acquired Lake Michigan and Monarch, which resulted in the recognition of $100.0 million and $5.4 million in goodwill, respectively. No amount of goodwill recorded in conjunction with these acquisitions is deductible for tax purposes. Goodwill is not amortized but is evaluated at least annually for impairment. The Corporation’s most recent annual goodwill impairment test performed as of October 31, 2014 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through June 30, 2015 and that the Corporation's goodwill was not impaired at June 30, 2015.

The following table shows the net carrying value of the Corporation’s intangible assets:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Goodwill	$	285,512	$	180,128	$	120,164
Other intangible assets:
Core deposit intangible assets	$	28,353	$	20,863	$	9,110
Non-compete intangible assets	541		—		—
Mortgage servicing rights	12,307		12,217		3,344
Total other intangible assets	$	41,201	$	33,080	$	12,454

The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Gross original amount	$	39,355	$	31,550	$	18,659
Accumulated amortization	11,002		10,687		9,549
Carrying amount	$	28,353	$	20,863	$	9,110
Amortization expense for the three months ended June 30	$	952			$	446
Amortization expense for the six months ended June 30	$	1,743			$	891

In conjunction with the acquisition of Lake Michigan on May 31, 2015 and Monarch on April 1, 2015, the Corporation recorded $7.3 million and $1.9 million, respectively, in core deposit intangible assets. These core deposit intangible assets are being amortized over a period of 10 years on an accelerated basis. There were no additions of core deposit intangible assets during the three and six months ended June 30, 2014.

The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2015 is as follows: 2015 — $2.4 million; 2016 — $4.3 million; 2017 — $3.7 million; 2018 — $3.5 million; 2019 — $3.3 million; 2020 and thereafter — $11.2 million.

In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation recorded $0.6 million in non-compete intangible assets with an amortization period of one year. There were no additions of non-compete intangible assets during the three and six months ended June 30, 2014.

The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Net carrying value of MSRs	$	12,307	$	12,217	$	3,344
Fair value of MSRs	$	16,602	$	14,979	$	6,433
Loans serviced for others that have servicing rights capitalized	$	2,193,067	$	2,093,140	$	871,158

The following table shows the activity for capitalized MSRs:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Balance at beginning of period	$	11,583		$	3,316		$	12,217		$	3,423
Acquired in Monarch acquisition	1,284			—			1,284			—
Additions	415			278			815			421
Amortization	(1,175		)	(250		)	(2,209		)	(500		)
Change in valuation allowance	200			—			200			—
Balance at end of period	$	12,307		$	3,344		$	12,307		$	3,344

MSRs are stratified into servicing assets originated by the Corporation and those acquired in acquisitions of other institutions and further stratified into relatively homogeneous pools based on products with similar characteristics. There was a valuation allowance of $0.2 million as of December 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. There was no impairment valuation allowance recorded on the Corporation's MSRs at June 30, 2015 and June 30, 2014.

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Borrowings Borrowings (Notes)

6 Months Ended

Jun. 30, 2015

Borrowings [Abstract]

Borrowings [Text Block]

Borrowings

Short-term Borrowings

A summary of the Corporation's short-term borrowings, which generally have an original term to maturity of 30 days or less, follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Short-term borrowings:
Securities sold under agreements to repurchase with customers	$	305,291	$	304,467	$	293,422
Short-term FHLB advances	205,000		60,000		—
Federal funds purchased	22,000		25,000		12,000
Total short-term borrowings	$	532,291	$	389,467	$	305,422

Other Borrowings

The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch. A summary of the Corporation's other borrowings follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Other borrowings:
Long-term FHLB advances	$	81,469	$	—	$	—
Securities sold under agreements to repurchase	23,649		—		—
Line of credit	25,000		—		—
Subordinated debentures	18,372		—		—
Total other borrowings	$	148,490	$	—	$	—

In conjunction with the Lake Michigan and Monarch acquisitions, the Corporation acquired long-term FHLB advances totaling $81.5 million. These advances have a weighted average interest rate of 1.33% at June 30, 2015. The Corporation's FHLB advances, including both short-term and long-term, require monthly interest payments and are collateralized by eligible loans totaling $1.24 billion as of June 30, 2015. The scheduled reductions of long-term FHLB advances as of June 30, 2015 were as follows: 2015 - $0.1 million; 2016 - $7.1 million; 2017 - $47.1 million; 2018 - $17.1 million; 2019; - $0.1 million; and 2020 - $10.0 million.

In conjunction with the Lake Michigan acquisition, the Company acquired securities sold under agreements to repurchase with an unaffiliated financial institution of $23.7 million as of acquisition date. These agreements are secured by available for-sale-securities. The scheduled reductions of securities sold under agreements to repurchase as of June 30, 2015 were as follows: 2015 - $3.2 million; 2016 - $8.3 million; and 2017 - $12.1 million.

The Corporation entered into a $25 million secured non-revolving line-of-credit in May 2015 with an unaffiliated third-party financial institution. The Corporation drew on the entire amount of the line-of-credit in order to partially fund the cash portion of the purchase price consideration for the Lake Michigan transaction. This line-of-credit bears a variable rate of interest which is based on the one-, two- or three-month LIBOR, as periodically selected by the Corporation, plus a fixed stated rate (effective interest rate of 2.134% at June 30, 2015), and matures in May 2016. The line-of-credit agreement contains certain restrictive covenants. The Corporation was in compliance with all of the covenants at June 30, 2015.

In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation acquired Lake Michigan Financial Capital Trust I (LMFCTI), Lake Michigan Financial Capital Trust II (LMFCTII), and Lake Michigan Financial Capital Trust III (LMFCTIII). LMFCTIII, which held the $10.0 million trust preferred security due to the Corporation, was repaid and settled as of the Lake Michigan acquisition date, and the entity was subsequently dissolved. All of the common securities of the remaining two special purpose trusts are owned by the Corporation. The trusts exist solely to issue capital securities in the form of cumulative preferred securities (trust preferred securities) with a par value of $1,000 per security. The proceeds from the sale of the trust preferred securities were used by each trust to purchase an equivalent amount of subordinated debentures from Lake Michigan. Lake Michigan guaranteed the payment of distributions on the trust preferred securities issued by LMFCTI and LMFCTII. At the acquisition date, the Corporation assumed responsibility of the guarantees.

LMFCTI issued $10.3 million in preferred securities in October 2002. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 3.45% (effective interest rate of 3.73% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is October 2032. LMFCTII issued $8.2 million in preferred securities in May 2004. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 2.7% (effective interest rate of 2.98% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is May 2034. The Corporation may, at any time, redeem the LMFCTI or LMFCTII subordinated debentures at par.

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Accumulated Other Comprehensive Loss (Textual) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Accumulated Other Comprehensive Loss (Textual) [Abstract]
Net unrealized gains (losses) on investment securities-available-for-sale, tax expense (benefit)	$ (148)	$ (113)	$ 431
Pension and other postretirement benefits adjustment, tax benefit	$ 16,601	$ 17,362	$ 10,117

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Borrowings Schedule of Other Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of Other Borrowings [Abstract]
Long-term Federal Home Loan Bank Advances	$ 81,469	$ 0	$ 0
Securities Sold under Agreements to Repurchase	23,649	0	0
nonrevolving line of credit	25,000	0	0
Subordinated Debt	18,372	0	0
Other Borrowings	$ 148,490	$ 0	$ 0

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Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Components of accumulated other comprehensive loss, net of related tax benefit/expense
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014	$ (274)	$ (210)	$ 800
Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014	(30,830)	(32,243)	(18,788)
Accumulated other comprehensive loss	$ (31,104)	$ (32,453)	$ (17,988)

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Pension and Other Postretirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan

The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Defined Benefit Pension Plans
Service cost	$	273		$	251		$	545		$	501
Interest cost	1,332			1,312			2,664			2,624
Expected return on plan assets	(2,161		)	(2,079		)	(4,322		)	(4,157		)
Amortization of prior service credit	(1		)	(1		)	(2		)	(1		)
Amortization of unrecognized net loss	1,056			569			2,112			1,138
Net periodic benefit cost	$	499		$	52		$	997		$	105
Postretirement Benefit Plan
Service cost	$	4		$	4		$	8		$	9
Interest cost	33			36			67			71
Amortization of prior service cost	32			33			65			65
Amortization of unrecognized net gain	—			(26		)	(1		)	(52		)
Net periodic benefit cost	$	69		$	47		$	139		$	93

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Loans (Summary of Information Related to Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	$ 131,805	$ 127,956	$ 131,670	$ 128,707
Interest income recognized related to loans with impaired status	1,152	1,075	2,332	2,109
Commercial [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	36,735	42,629	37,655	42,118
Interest income recognized related to loans with impaired status	263	347	552	680
Real estate commercial [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	60,393	51,260	60,317	52,290
Interest income recognized related to loans with impaired status	458	366	983	727
Real estate construction [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	390	163	515	165
Interest income recognized related to loans with impaired status	2	0	2	0
Land development [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	1,900	4,312	1,888	4,478
Interest income recognized related to loans with impaired status	34	34	61	71
Real estate residential [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	29,432	26,737	28,392	26,758
Interest income recognized related to loans with impaired status	380	328	711	631
Consumer installment [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	426	634	463	704
Interest income recognized related to loans with impaired status	1	0	1	0
Home equity [Member]
Schedule representing information related to impaired loans
Average recorded investment related to impaired loans	2,529	2,221	2,440	2,194
Interest income recognized related to loans with impaired status	$ 14	$ 0	$ 22	$ 0

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Pension and Other Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans

The Corporation's retirement plans include a qualified pension plan, a nonqualified pension plan, a nonqualified postretirement benefit plan, a 401(k) savings plan, and a multi-employer defined benefit plan.

Qualified and Nonqualified Pension Plans and Nonqualified Postretirement Benefit Plans

The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Defined Benefit Pension Plans
Service cost	$	273		$	251		$	545		$	501
Interest cost	1,332			1,312			2,664			2,624
Expected return on plan assets	(2,161		)	(2,079		)	(4,322		)	(4,157		)
Amortization of prior service credit	(1		)	(1		)	(2		)	(1		)
Amortization of unrecognized net loss	1,056			569			2,112			1,138
Net periodic benefit cost	$	499		$	52		$	997		$	105
Postretirement Benefit Plan
Service cost	$	4		$	4		$	8		$	9
Interest cost	33			36			67			71
Amortization of prior service cost	32			33			65			65
Amortization of unrecognized net gain	—			(26		)	(1		)	(52		)
Net periodic benefit cost	$	69		$	47		$	139		$	93

The Corporation’s pension plan does not have a contribution requirement in 2015. The Corporation did not make a contribution to the pension plan during 2014. The discount rate used to compute the Corporation's pension plan expense for 2015 is 4.15%.

401(k) Savings Plan

401(k) Savings Plan expense for the Corporation’s match of participants’ base compensation contributions and a 4% of eligible pay contribution to certain employees who are not grandfathered under the pension plan was $1.3 million and $1.0 million for the three months ended June 30, 2015 and 2014, respectively, and $2.4 million and $1.7 million for the six-month period ended June 30, 2015 and 2014, respectively.

Multi-Employer Defined Benefit Plan

In conjunction with the April 1, 2015 acquisition of Monarch, the Corporation acquired a participation in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a qualified defined benefit pension plan. Employee benefits for Monarch employees under the Plan were frozen effective April 1, 2004. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (IRC). The Pentegra Plan is a single plan under IRC Section 413(c) and, as a result, all the plan's assets stand behind all of the plan's liabilities. Accordingly, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. No contributions were made by the Corporation to the Pentegra DB Plan for the three months ended June 30, 2015.

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Loans (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Summary of loans under portfolio

A summary of loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,754,873	$	1,354,881	$	1,212,383
Commercial real estate	2,243,513		1,557,648		1,298,365
Real estate construction	101,717		152,745		101,168
Land development	10,595		18,750		10,956
Subtotal	4,110,698		3,084,024		2,622,872
Consumer loan portfolio:
Residential mortgage	1,310,167		1,110,390		970,397
Consumer installment	887,907		829,570		744,781
Home equity	725,971		664,246		560,754
Subtotal	2,924,045		2,604,206		2,275,932
Total loans	$	7,034,743	$	5,688,230	$	4,898,804

Recorded investment of loans in the commercial loan portfolio by risk rating categories

The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2015, December 31, 2014 and June 30, 2014:

	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
June 30, 2015
Originated Portfolio:
Risk Grades 1-5	$	1,269,091	$	1,273,725	$	94,894	$	2,470	$	2,640,180
Risk Grade 6	32,189		34,677		—		433		67,299
Risk Grade 7	41,316		29,737		1,249		878		73,180
Risk Grade 8	17,260		25,283		247		255		43,045
Risk Grade 9	—		4		—		—		4
Subtotal	1,359,856		1,363,426		96,390		4,036		2,823,708
Acquired Portfolio:
Risk Grades 1-5	347,914		820,400		5,122		5,017		1,178,453
Risk Grade 6	29,412		22,796		—		71		52,279
Risk Grade 7	13,910		30,288		—		119		44,317
Risk Grade 8	3,781		6,603		205		1,352		11,941
Risk Grade 9	—		—		—		—		—
Subtotal	395,017		880,087		5,327		6,559		1,286,990
Total	$	1,754,873	$	2,243,513	$	101,717	$	10,595	$	4,110,698
December 31, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,171,817	$	1,114,529	$	134,668	$	2,952	$	2,423,966
Risk Grade 6	37,800		34,996		1,408		738		74,942
Risk Grade 7	29,863		29,935		2,502		613		62,913
Risk Grade 8	16,417		24,958		162		225		41,762
Risk Grade 9	1		8		—		—		9
Subtotal	1,255,898		1,204,426		138,740		4,528		2,603,592
Acquired Portfolio:
Risk Grades 1-5	76,780		321,018		14,005		11,789		423,592
Risk Grade 6	12,687		8,698		—		583		21,968
Risk Grade 7	4,089		12,478		—		197		16,764
Risk Grade 8	5,427		11,028		—		1,653		18,108
Risk Grade 9	—		—		—		—		—
Subtotal	98,983		353,222		14,005		14,222		480,432
Total	$	1,354,881	$	1,557,648	$	152,745	$	18,750	$	3,084,024
June 30, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,067,000	$	1,063,555	$	85,754	$	2,514	$	2,218,823
Risk Grade 6	15,459		30,053		666		965		47,143
Risk Grade 7	37,291		35,946		1,995		627		75,859
Risk Grade 8	18,560		25,347		160		2,184		46,251
Risk Grade 9	213		14		—		—		227
Subtotal	1,138,523		1,154,915		88,575		6,290		2,388,303
Acquired Portfolio:
Risk Grades 1-5	59,993		132,898		12,593		2,546		208,030
Risk Grade 6	6,769		3,822		—		—		10,591
Risk Grade 7	3,197		6,730		—		143		10,070
Risk Grade 8	3,901		—		—		1,977		5,878
Risk Grade 9	—		—		—		—		—
Subtotal	73,860		143,450		12,593		4,666		234,569
Total	$	1,212,383	$	1,298,365	$	101,168	$	10,956	$	2,622,872

Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status

The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2015, December 31, 2014 and June 30, 2014:

	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
	(In thousands)
June 30, 2015
Originated Loans:
Performing	$	1,058,696	$	871,543	$	584,520	$	2,514,759
Nonperforming	9,793		393		2,357		12,543
Subtotal	1,068,489		871,936		586,877		2,527,302
Acquired Loans:
Performing	238,698		15,966		138,086		392,750
Nonperforming	2,980		5		1,008		3,993
Subtotal	241,678		15,971		139,094		396,743
Total	$	1,310,167	$	887,907	$	725,971	$	2,924,045
December 31, 2014
Originated Loans:
Performing	$	987,542	$	818,878	$	566,083	$	2,372,503
Nonperforming	10,459		500		3,013		13,972
Subtotal	998,001		819,378		569,096		2,386,475
Acquired Loans:
Performing	111,101		10,174		94,696		215,971
Nonperforming	1,288		18		454		1,760
Subtotal	112,389		10,192		95,150		217,731
Total	$	1,110,390	$	829,570	$	664,246	$	2,604,206
June 30, 2014
Originated Loans:
Performing	$	947,768	$	743,121	$	529,093	$	2,219,982
Nonperforming	12,217		536		3,371		16,124
Subtotal	959,985		743,657		532,464		2,236,106
Acquired Loans:
Performing	10,343		1,124		28,227		39,694
Nonperforming	69		—		63		132
Subtotal	10,412		1,124		28,290		39,826
Total	$	970,397	$	744,781	$	560,754	$	2,275,932

Summary of nonperforming loans

A summary of nonperforming loans follows:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Nonaccrual loans:
Commercial	$	17,260	$	16,418	$	18,773
Commercial real estate	25,287		24,966		25,361
Real estate construction	247		162		160
Land development	255		225		2,184
Residential mortgage	6,004		6,706		6,325
Consumer installment	393		500		536
Home equity	1,769		1,667		2,296
Total nonaccrual loans	51,215		50,644		55,635
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	711		170		15
Commercial real estate	56		—		69
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	424		557		376
Consumer installment	—		—		—
Home equity	588		1,346		1,075
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,779		2,073		1,535
Nonperforming TDRs:
Commercial loan portfolio	14,547		15,271		11,049
Consumer loan portfolio	3,365		3,196		5,516
Total nonperforming TDRs	17,912		18,467		16,565
Total nonperforming loans	$	70,906	$	71,184	$	73,735

Schedule of Impaired loans by classes

The following schedule presents impaired loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2015
Impaired loans with a valuation allowance:
Commercial	$	4,044	$	4,137	$	718
Commercial real estate	2,789		2,948		603
Residential mortgage	20,970		20,970		260
Subtotal	27,803		28,055		1,581
Impaired loans with no related valuation allowance:
Commercial	32,461		38,160		—
Commercial real estate	56,052		78,490		—
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	8,984		8,984		—
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Subtotal	103,066		132,985		—
Total impaired loans:
Commercial	36,505		42,297		718
Commercial real estate	58,841		81,438		603
Real estate construction	451		531		—
Land development	1,942		3,644		—
Residential mortgage	29,954		29,954		260
Consumer installment	398		398		—
Home equity	2,778		2,778		—
Total	$	130,869	$	161,040	$	1,581
December 31, 2014
Impaired loans with a valuation allowance:
Commercial	$	966	$	1,040	$	293
Commercial real estate	2,587		2,927		710
Residential mortgage	19,681		19,681		335
Subtotal	23,234		23,648		1,338
Impaired loans with no related valuation allowance:
Commercial	38,094		44,557		—
Commercial real estate	60,616		82,693		—
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	7,994		7,994		—
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Subtotal	111,433		141,622		—
Total impaired loans:
Commercial	39,060		45,597		293
Commercial real estate	63,203		85,620		710
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	27,675		27,675		335
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Total	$	134,667	$	165,270	$	1,338

	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2014
Impaired loans with a valuation allowance:
Commercial	$	2,905	$	3,258	$	563
Commercial real estate	4,369		5,605		777
Residential mortgage	20,353		20,353		379
Subtotal	27,627		29,216		1,719
Impaired loans with no related valuation allowance:
Commercial	39,420		43,463		—
Commercial real estate	46,205		58,997		—
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	6,325		6,325		—
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Subtotal	99,153		119,489		—
Total impaired loans:
Commercial	42,325		46,721		563
Commercial real estate	50,574		64,602		777
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	26,678		26,678		379
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Total	$	126,780	$	148,705	$	1,719

Schedule presents information related to impaired loans

The following schedule presents information related to impaired loans for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	36,735	$	263	$	37,655	$	552
Commercial real estate	60,393		458		60,317		983
Real estate construction	390		2		515		2
Land development	1,900		34		1,888		61
Residential mortgage	29,432		380		28,392		711
Consumer installment	426		1		463		1
Home equity	2,529		14		2,440		22
Total	$	131,805	$	1,152	$	131,670	$	2,332

	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	42,629	$	347	$	42,118	$	680
Commercial real estate	51,260		366		52,290		727
Real estate construction	163		—		165		—
Land development	4,312		34		4,478		71
Residential mortgage	26,737		328		26,758		631
Consumer installment	634		—		704		—
Home equity	2,221		—		2,194		—
Total	$	127,956	$	1,075	$	128,707	$	2,109

Schedule representing the aging status of the recorded investment in loans by classes

The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2015, December 31, 2014 and June 30, 2014:

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
June 30, 2015
Originated Portfolio:
Commercial	$	4,055	$	2,317	$	711	$	17,260	$	24,343	$	1,335,513	$	1,359,856
Commercial real estate	2,754		1,117		56		25,287		29,214		1,334,212		1,363,426
Real estate construction	413		—		—		247		660		95,730		96,390
Land development	—		—		—		255		255		3,781		4,036
Residential mortgage	1,536		—		424		6,004		7,964		1,060,525		1,068,489
Consumer installment	2,526		302		—		393		3,221		868,715		871,936
Home equity	2,334		204		588		1,769		4,895		581,982		586,877
Total	$	13,618	$	3,940	$	1,779	$	51,215	$	70,552	$	5,280,458	$	5,351,010
Acquired Portfolio:
Commercial	$	690	$	—	$	3,781	$	—	$	4,471	$	390,546	$	395,017
Commercial real estate	969		291		6,603		—		7,863		872,224		880,087
Real estate construction	—		—		205		—		205		5,122		5,327
Land development	—		—		1,352		—		1,352		5,207		6,559
Residential mortgage	1,077		138		2,980		—		4,195		237,483		241,678
Consumer installment	—		56		5		—		61		15,910		15,971
Home equity	1,153		210		1,008		—		2,371		136,723		139,094
Total	$	3,889	$	695	$	15,934	$	—	$	20,518	$	1,663,215	$	1,683,733

	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
December 31, 2014
Originated Portfolio:
Commercial	$	4,033	$	743	$	170	$	16,418	$	21,364	$	1,234,534	$	1,255,898
Commercial real estate	7,515		1,383		—		24,966		33,864		1,170,562		1,204,426
Real estate construction	262		—		—		162		424		138,316		138,740
Land development	—		—		—		225		225		4,303		4,528
Residential mortgage	2,126		54		557		6,706		9,443		988,558		998,001
Consumer installment	3,620		512		—		500		4,632		814,746		819,378
Home equity	3,039		660		1,346		1,667		6,712		562,384		569,096
Total	$	20,595	$	3,352	$	2,073	$	50,644	$	76,664	$	4,913,403	$	4,990,067
Acquired Portfolio:
Commercial	$	133	$	—	$	5,427	$	—	$	5,560	$	93,423	$	98,983
Commercial real estate	2,014		352		11,052		—		13,418		339,804		353,222
Real estate construction	—		—		—		—		—		14,005		14,005
Land development	—		—		1,653		—		1,653		12,569		14,222
Residential mortgage	156		—		18		—		174		112,215		112,389
Consumer installment	55		3		454		—		512		9,680		10,192
Home equity	636		106		1,288		—		2,030		93,120		95,150
Total	$	2,994	$	461	$	19,892	$	—	$	23,347	$	674,816	$	698,163
June 30, 2014
Originated Portfolio:
Commercial	$	4,149	$	1,901	$	15	$	18,773	$	24,838	$	1,113,685	$	1,138,523
Commercial real estate	5,933		233		69		25,361		31,596		1,123,319		1,154,915
Real estate construction	—		—		—		160		160		88,415		88,575
Land development	—		—		—		2,184		2,184		4,106		6,290
Residential mortgage	2,515		—		376		6,325		9,216		950,769		959,985
Consumer installment	2,513		313		—		536		3,362		740,295		743,657
Home equity	2,002		985		1,075		2,296		6,358		526,106		532,464
Total	$	17,112	$	3,432	$	1,535	$	55,635	$	77,714	$	4,546,695	$	4,624,409
Acquired Portfolio:
Commercial	$	—	$	—	$	6,744	$	—	$	6,744	$	67,116	$	73,860
Commercial real estate	—		—		1,594		—		1,594		141,856		143,450
Real estate construction	—		—		—		—		—		12,593		12,593
Land development	—		—		1,977		—		1,977		2,689		4,666
Residential mortgage	—		—		69		—		69		10,343		10,412
Consumer installment	20		—		—		—		20		1,104		1,124
Home equity	325		49		63		—		437		27,853		28,290
Total	$	345	$	49	$	10,447	$	—	$	10,841	$	263,554	$	274,395

Schedule of Corporation's TDRs

The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2015, December 31, 2014 and June 30, 2014:

	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
	(In thousands)
June 30, 2015
Commercial loan portfolio	$	28,203	$	14,547	$	32,001	$	74,751
Consumer loan portfolio	17,605		3,365		3,707		24,677
Total	$	45,808	$	17,912	$	35,708	$	99,428
December 31, 2014
Commercial loan portfolio	$	29,179	$	15,271	$	32,597	$	77,047
Consumer loan portfolio	16,485		3,196		4,594		24,275
Total	$	45,664	$	18,467	$	37,191	$	101,322
June 30, 2014
Commercial loan portfolio	$	29,296	$	11,049	$	40,351	$	80,696
Consumer loan portfolio	14,837		5,516		3,334		23,687
Total	$	44,133	$	16,565	$	43,685	$	104,383

Schedule providing information on TDRs

The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2015 and 2014:

	Three Months Ended June 30, 2015					Six Months Ended June 30, 2015
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	13	$	2,332	$	2,332	18	$	4,264	$	4,264
Commercial real estate	4	527		527		9	3,061		3,061
Land development	1	305		305		1	305		305
Subtotal – commercial loan portfolio	18	3,164		3,164		28	7,630		7,630
Consumer loan portfolio	29	1,633		1,631		39	1,969		1,967
Total	47	$	4,797	$	4,795	67	$	9,599	$	9,597

	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	15	$	3,575	$	3,575	27	$	11,931	$	11,931
Commercial real estate	12	3,134		3,134		21	5,924		5,924
Land development	—	—		—		1	72		72
Subtotal – commercial loan portfolio	27	6,709		6,709		49	17,927		17,927
Consumer loan portfolio	63	1,649		1,648		93	2,636		2,626
Total	90	$	8,358	$	8,357	142	$	20,563	$	20,553

Troubled debt restructurings on financing receivables with defaults payment

The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2015 and 2014, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:

	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	—	$	—	—	$	—
Commercial real estate	1	183		4	942
Subtotal – commercial loan portfolio	1	183		4	942
Consumer loan portfolio	—	—		1	33
Total	1	$	183	5	$	975
	Three Months Ended June 30, 2014			Six Months Ended June 30, 2014
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	5	$	771	6	$	875
Commercial real estate	3	603		5	2,273
Subtotal – commercial loan portfolio	8	1,374		11	3,148
Consumer loan portfolio	3	80		3	80
Total	11	$	1,454	14	$	3,228

Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2015 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2015 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2015:
Beginning balance	$	46,819		$	24,579		$	3,858	$	75,256
Provision for loan losses	(626		)	(109		)	2,235		1,500
Charge-offs	(915		)	(1,809		)	—		(2,724		)
Recoveries	249			660			—		909
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Changes in allowance for loan losses for the six months ended June 30, 2015:
Beginning balance	$	44,156		$	28,803		$	2,724	$	75,683
Provision for loan losses	2,967			(3,336		)	3,369		3,000
Charge-offs	(2,419		)	(3,448		)	—		(5,867		)
Recoveries	823			1,302			—		2,125
Ending balance	$	45,527		$	23,321		$	6,093	$	74,941
Allowance for loan losses balance at June 30, 2015 attributable to:
Loans individually evaluated for impairment	$	1,321		$	260		$	—	$	1,581
Loans collectively evaluated for impairment	44,206			23,061			6,093		73,360
Loans acquired with deteriorated credit quality	—			—			—		—
Total	$	45,527		$	23,321		$	6,093	$	74,941
Recorded investment (loan balance) at June 30, 2015:
Loans individually evaluated for impairment	$	85,799		$	20,970		$	—	$	106,769
Loans collectively evaluated for impairment	2,737,909			2,506,332			—		5,244,241
Loans acquired with deteriorated credit quality	1,286,990			396,743			—		1,683,733
Total	$	4,110,698		$	2,924,045		$	—	$	7,034,743

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method.

	Commercial Loan Portfolio		Consumer Loan Portfolio		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment	$	1,003	$	335	$	—	$	1,338
Loans collectively evaluated for impairment	43,153		27,968		2,724		73,845
Loans acquired with deteriorated credit quality	—		500		—		500
Total	$	44,156	$	28,803	$	2,724	$	75,683
Recorded investment (loan balance) at December 31, 2014:
Loans individually evaluated for impairment	$	86,221	$	19,681	$	—	$	105,902
Loans collectively evaluated for impairment	2,517,371		2,366,794		—		4,884,165
Loans acquired with deteriorated credit quality	480,432		217,731		—		698,163
Total	$	3,084,024	$	2,604,206	$	—	$	5,688,230

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method.

	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated			Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2014:
Beginning balance	$	45,010		$	29,233		$	4,230		$	78,473
Provision for loan losses	439			1,287			(226		)	1,500
Charge-offs	(1,814		)	(1,561		)	—			(3,375		)
Recoveries	589			606			—			1,195
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Changes in allowance for loan losses for the six months ended June 30, 2014:
Beginning balance	$	44,482		$	30,145		$	4,445		$	79,072
Provision for loan losses	1,399			2,142			(441		)	3,100
Charge-offs	(3,023		)	(3,824		)	—			(6,847		)
Recoveries	1,366			1,102			—			2,468
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans individually evaluated for impairment	$	1,340		$	379		$	—		$	1,719
Loans collectively evaluated for impairment	42,884			28,686			4,004			75,574
Loans acquired with deteriorated credit quality	—			500			—			500
Total	$	44,224		$	29,565		$	4,004		$	77,793
Recorded investment (loan balance) at June 30, 2014:
Loans individually evaluated for impairment	$	86,823		$	20,353		$	—		$	107,176
Loans collectively evaluated for impairment	2,301,480			2,215,753			—			4,517,233
Loans acquired with deteriorated credit quality	234,569			39,826			—			274,395
Total	$	2,622,872		$	2,275,932		$	—		$	4,898,804

XML

Loans (Summary of Nonperforming Loans) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of nonperforming loans
Total TDRs	$ 99,428	$ 101,322	$ 104,383
Total loans	$ 7,034,743	5,688,230	4,898,804
Minimum number of days accruing loans past due move to nonaccrual status	90 days
Commercial Loan Portfolio [Member]
Summary of nonperforming loans
Total TDRs	$ 74,751	77,047	80,696
Total loans	4,110,698	3,084,024	2,622,872
Consumer Loan Portfolio [Member]
Summary of nonperforming loans
Total TDRs	24,677	24,275	23,687
Total loans	2,924,045	2,604,206	2,275,932
Nonperforming [Member]
Summary of nonperforming loans
Total nonaccrual loans	51,215	50,644	55,635
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,779	2,073	1,535
Total TDRs	17,912	18,467	16,565
Total loans	70,906	71,184	73,735
Nonperforming [Member] | Commercial Loan Portfolio [Member]
Summary of nonperforming loans
Total TDRs	14,547	15,271	11,049
Nonperforming [Member] | Consumer Loan Portfolio [Member]
Summary of nonperforming loans
Total TDRs	3,365	3,196	5,516
Nonperforming [Member] | Commercial [Member]
Summary of nonperforming loans
Total nonaccrual loans	17,260	16,418	18,773
Total accruing loans contractually past due 90 days or more as to interest or principal payments	711	170	15
Nonperforming [Member] | Real estate commercial [Member]
Summary of nonperforming loans
Total nonaccrual loans	25,287	24,966	25,361
Total accruing loans contractually past due 90 days or more as to interest or principal payments	56	0	69
Nonperforming [Member] | Real Estate Construction Loans [Member]
Summary of nonperforming loans
Total nonaccrual loans	247	162	160
Total accruing loans contractually past due 90 days or more as to interest or principal payments	0	0	0
Nonperforming [Member] | Land Development Loans [Member]
Summary of nonperforming loans
Total nonaccrual loans	255	225	2,184
Total accruing loans contractually past due 90 days or more as to interest or principal payments	0	0	0
Nonperforming [Member] | Real estate residential [Member]
Summary of nonperforming loans
Total nonaccrual loans	6,004	6,706	6,325
Total accruing loans contractually past due 90 days or more as to interest or principal payments	424	557	376
Nonperforming [Member] | Consumer Installment Loans [Member]
Summary of nonperforming loans
Total nonaccrual loans	393	500	536
Total accruing loans contractually past due 90 days or more as to interest or principal payments	0	0	0
Nonperforming [Member] | Home Equity Loans [Member]
Summary of nonperforming loans
Total nonaccrual loans	1,769	1,667	2,296
Total accruing loans contractually past due 90 days or more as to interest or principal payments	$ 588	$ 1,346	$ 1,075

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Investment Securities (Summary of Amortized Cost and Fair Value of Available-For-Sale Investment Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	$ 686,128	$ 749,187	$ 614,744
Investment securities available-for-sale, Unrealized Gains	2,545	3,003	4,005
Investment securities available-for-sale, Unrealized Losses	2,967	3,326	2,774
Available-for-sale Securities, Total	685,706	748,864	615,975
US Treasury Securities [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	8,270	8,272
Investment securities available-for-sale, Unrealized Gains	24	0
Investment securities available-for-sale, Unrealized Losses	0	13
Available-for-sale Securities, Total	8,294	8,259
Government sponsored agencies [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	227,424	263,658	88,503
Investment securities available-for-sale, Unrealized Gains	683	356	346
Investment securities available-for-sale, Unrealized Losses	200	511	141
Available-for-sale Securities, Total	227,907	263,503	88,708
State and political subdivisions [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	26,476	45,157	40,165
Investment securities available-for-sale, Unrealized Gains	503	1,087	1,443
Investment securities available-for-sale, Unrealized Losses	14	17	0
Available-for-sale Securities, Total	26,965	46,227	41,608
Residential mortgage-backed securities [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	213,621	240,465	265,673
Investment securities available-for-sale, Unrealized Gains	742	885	1,117
Investment securities available-for-sale, Unrealized Losses	1,694	1,543	1,422
Available-for-sale Securities, Total	212,669	239,807	265,368
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	167,768	145,316	154,035
Investment securities available-for-sale, Unrealized Gains	245	261	376
Investment securities available-for-sale, Unrealized Losses	981	1,194	1,128
Available-for-sale Securities, Total	167,032	144,383	153,283
Corporate bonds [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	39,680	44,930	64,979
Investment securities available-for-sale, Unrealized Gains	76	213	456
Investment securities available-for-sale, Unrealized Losses	78	48	83
Available-for-sale Securities, Total	39,678	45,095	65,352
Preferred stock [Member]
Available-for-sale Securities
Investment securities available-for-sale, Amortized Cost	2,889	1,389	1,389
Investment securities available-for-sale, Unrealized Gains	272	201	267
Investment securities available-for-sale, Unrealized Losses	0	0	0
Available-for-sale Securities, Total	$ 3,161	$ 1,590	$ 1,656

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 19,024	$ 16,236	$ 36,859	$ 30,049
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $(1,084) and $909 for the three months ended June 30, 2015 and 2014, respectively, and $177 and $1,766 for the six months ended June 30, 2015 and 2014, respectively	(2,014)	1,687	331	3,280
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $10 for the three months ended June 30, 2015 and $212 for the six months ended June 30, 2015	(18)	0	(395)	0
Adjustment for pension and other postretirement benefits, net of tax expense (benefit) of $380 and $(202) for the three months ended June 30, 2015 and 2014, respectively, and $761 and $(403) for the six months ended June 30, 2015 and 2014, respectively	707	(374)	1,413	(748)
Total other comprehensive income (loss), net of tax	(1,325)	1,313	1,349	2,532
Comprehensive income	$ 17,699	$ 17,549	$ 38,208	$ 32,581

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Nature of Operations

Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through three commercial banks, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan. The Bank of Holland and The Bank of Northern Michigan, which were acquired in the May 31, 2015 acquisition of Lake Michigan Financial Corporation (Lake Michigan), are expected to be consolidated with and into Chemical Bank during the fourth quarter of 2015 in conjunction with the conversion of their core data systems to Chemical Bank's. In addition, the Corporation acquired Monarch Community Bank as part of its April 1, 2015 acquisition of Monarch Community Bancorp, Inc. (Monarch). Monarch Community Bank was consolidated with and into Chemical Bank during the second quarter of 2015. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products.

The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Use of Estimates

Management makes estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, expected cash flows from acquired loans, fair value amounts related to business combinations, pension expense, income taxes, goodwill impairment and those assets that require fair value measurement. Actual results could differ from these estimates.

Business Combinations

Pursuant to the guidance of ASC Topic 805, Business Combinations (ASC 805), the Corporation recognizes assets acquired, including identified intangible assets, and the liabilities assumed in acquisitions at their fair values as of the acquisition date, with the acquisition-related transaction and restructuring costs expensed in the period incurred.

On May 31, 2015, the Corporation acquired all the outstanding stock of Lake Michigan for total consideration of $187.4 million, which included stock consideration of $132.9 million and cash consideration of $54.5 million. The Corporation recorded $100 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition.

On April 1, 2015, the Corporation acquired all the outstanding stock of Monarch in an all-stock transaction valued at $27.2 million. The Corporation recorded $5.4 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition.

ASC 805 affords a measurement period beyond the acquisition date that allows the Corporation the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time. The Corporation anticipates that measurement period adjustments may arise from adjustments to the fair values of assets and liabilities recognized at the acquisition date for Northwestern Bancorp, Inc. (Northwestern), which occurred on October 31, 2014, Lake Michigan, and Monarch, as additional information is obtained, such as appraisals of collateral securing loans and other borrower information. In the event that a measurement period adjustment is identified, the Corporation will recognize the adjustment as part of its acquisition accounting, which may result in an adjustment to goodwill being recorded.

See Note 2 for further information regarding the Corporation's acquisitions.

Originated Loans

Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period.

The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months) and collectibility is no longer in doubt.

Loans Acquired in a Business Combination

Loans acquired in a business combination (acquired loans) consist of loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern, and on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date.

The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 2 pools in the acquisition of Lake Michigan, 2 pools in the acquisition of Monarch, 4 pools in the acquisition of Northwestern and 14 pools in the acquisition of OAK based upon common risk characteristics, including types of loans, commercial type loans with similar risk grades and whether loans were performing or nonperforming. A pool is considered a single unit of accounting for the purposes of applying the guidance prescribed in ASC 310-30. A loan will be removed from a pool of acquired loans only if the loan is sold, foreclosed, paid off or written off, and will be removed from the pool at the carrying value. If an individual loan is removed from a pool of loans, the difference between its relative carrying amount and the cash, fair value of the collateral, or other assets received would not affect the effective yield used to recognize the accretable difference on the remaining pool. The Corporation estimated the cash flows expected to be collected over the life of the pools of loans at acquisition and estimates expected cash flows quarterly thereafter, based on a set of assumptions including expectations as to default rates, prepayment rates and loss severities. The Corporation must make numerous assumptions, interpretations and judgments using internal and third-party credit quality information to determine whether it is probable that the Corporation will be able to collect all contractually required payments. This is a point in time assessment and inherently subjective due to the nature of the available information and judgment involved.

The calculation of the fair value of the acquired loan pools entails estimating the amount and timing of cash flows attributable to both principal and interest expected to be collected on such loan pools and then discounting those cash flows at market interest rates. The excess of a loan pool's expected cash flows at the acquisition date over its estimated fair value is referred to as the "accretable yield," which is recognized into interest income over the estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool.

Loans Modified Under Troubled Debt Restructurings

Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. In accordance with ASC Topic 310-30, acquired loans are excluded from TDRs as these loans are accounted for in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six-month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been renewed by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR.

Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the loan.

Loans in the Corporation’s consumer loan portfolio (comprised of residential mortgage, consumer installment and home equity loans) that meet the definition of a performing or nonperforming TDR generally consist of residential mortgage loans that include a concession that reduces a borrower’s monthly payments by decreasing the interest rate charged on the loan for a specified period of time (generally 24 months) under a formal modification agreement. The Corporation recognizes an additional provision for loan losses related to impairment on these loans on an individual basis based on the present value of expected future cash flows discounted at the loan’s original effective interest rate. These loans continue to accrue interest at their effective interest rate, which consists of contractual interest under the terms of the modification agreement in addition to an adjustment for the accretion of computed impairment. These loans are moved to nonaccrual status if they become 90 days past due as to principal or interest payments, or sooner if conditions warrant.

Impaired Loans

A loan is defined to be impaired when it is probable that payment of principal and interest will not be paid in accordance with the original contractual terms of the loan agreement. Impaired loans include nonaccrual loans (including nonaccrual TDRs), performing and nonperforming TDRs and acquired loans that were not performing in accordance with original contractual terms. Impaired loans are accounted for at the lower of the present value of expected cash flows discounted at the loan's original effective interest rate or the estimated fair value of the collateral, if the loan is collateral dependent. When the present value of expected cash flows or the fair value of collateral of an impaired loan in the originated loan portfolio is less than the amount of unpaid principal outstanding on the loan, the principal balance of the loan is reduced to its carrying value through either an allocation of the allowance for loan losses or a partial charge-off of the loan balance.

Nonperforming Loans

Nonperforming loans are comprised of loans for which the accrual of interest has been discontinued (nonaccrual loans, including nonaccrual TDRs), accruing originated loans contractually past due 90 days or more as to interest or principal payments and nonperforming TDRs.

Acquired loans that were classified as nonperforming loans prior to being acquired and acquired loans that are not performing in accordance with contractual terms subsequent to acquisition are not classified as nonperforming loans subsequent to acquisition because the loans are recorded in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans.

Allowance for Loan Losses

The allowance for loan losses (allowance) is presented as a reserve against loans. The allowance represents management’s assessment of probable loan losses inherent in the Corporation’s loan portfolio.

Management’s evaluation of the adequacy of the allowance is based on a continuing review of the loan portfolio, actual loan loss experience, the underlying value of the collateral, risk characteristics of the loan portfolio, the level and composition of nonperforming loans, the financial condition of the borrowers, the balance of the loan portfolio, loan growth, economic conditions, employment levels in the Corporation’s local markets, and special factors affecting specific business sectors. The Corporation maintains formal policies and procedures to monitor and control credit risk. Management evaluates the allowance on a quarterly basis in an effort to ensure the level is appropriate to absorb probable losses inherent in the loan portfolio.

The allowance provides for probable losses that have been identified with specific customer relationships and for probable losses believed to be incurred in the remainder of the originated loan portfolio, but that have not been specifically identified. The Corporation utilizes its own loss experience to estimate inherent losses on loans. Internal risk ratings are assigned to each loan in the commercial loan portfolio (commercial, commercial real estate, real estate construction and land development loans) at the time of origination and are subject to subsequent periodic reviews by senior management. The Corporation performs a detailed credit quality review quarterly on all loans greater than $0.25 million that have deteriorated below certain levels of credit risk, and may allocate a specific portion of the allowance to such loans based upon this review. A portion of the allowance is allocated to the remaining loans by applying projected loss ratios, based on numerous factors. Projected loss ratios incorporate factors such as charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty.

In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five-year historical loan loss experience, with higher weighting placed on the most recent years, loan loss trends giving consideration to estimated loss emergence periods and (iv) an unallocated allowance based on the imprecision in the overall allowance methodology for loans collectively evaluated for impairment.

Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off.

Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods.

Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations.

Fair Value Measurements

Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data.

The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2015, December 31, 2014 and June 30, 2014, the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities.

Share-Based Compensation

The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period.

Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows.

Bank-Owned Life Insurance

The Corporation has life insurance policies on certain key officers of its bank subsidiaries. The majority of the bank-owned life insurance policies of the Corporation were obtained through its acquisition of Lake Michigan. Bank-owned life insurance is recorded at the cash surrender value, net of surrender charges, and is included within other assets on the consolidated statements of financial position and changes in the cash surrender values are recorded as other noninterest income on the consolidated statements of income.

Income and Other Taxes

The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and any other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law.

On a quarterly basis, management assesses the reasonableness of its effective federal tax rate based upon its estimate of taxable income and the applicable taxes expected for the full year. Deferred tax assets and liabilities are reassessed on a quarterly basis, including the need for a valuation allowance for deferred tax assets. In conjunction with the acquisition of Monarch, the Corporation has net operating loss carryforwards, which are limited under Internal Revenue Code (IRC) Section 382, included in deferred tax assets. See Note 2 for further information regarding the net operating loss carryforward.

Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2015, December 31, 2014 or June 30, 2014. Tax returns open to examination by the Internal Revenue Service (IRS) include those for the calendar years ended December 31, 2014, 2013, 2012 and 2011 for the Corporation, Lake Michigan, Monarch and Northwestern. Monarch's tax returns for the calendar years ended 2009-2013 are currently under an IRS examination.

Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits

The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment of these projects comes in the form of the tax credits and and tax losses that pass through to the Corporation. The carrying value of the investments are reflected in other assets on the consolidated statements of financial position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects.

Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.2 million and $0.3 million during the three and six months ended June 30, 2015, respectively, and $0.1 million and $0.2 million during the three and six months ended June 30, 2014, respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $21.4 million at June 30, 2015, $4.9 million at December 31, 2014 and$3.1 million atJune 30, 2014. The increase in qualified affordable housing project investments at June 30, 2015, compared to December 31, 2014 and June 30, 2014, was attributable to investments acquired as part of the Lake Michigan transaction.

Under the equity method, the Corporation's share of the earnings or losses are included in other operating expenses on the consolidated statements of income. The Corporation's investment in new market projects accounted for under the equity method totaled $3.3 million at June 30, 2015. There were no investments in such projects accounted for under the equity method as of December 31, 2014 or June 30, 2014.

The Corporation's unfunded equity contributions relating to investments in qualified affordable housing projects, federal historic tax projects and new market projects is recorded in other liabilities on the consolidated statements of financial position. The Corporation's remaining unfunded equity contributions totaled $9.7 million at June 30, 2015.

Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. There were no impairment losses recognized as of June 30, 2015, December 31, 2014 or June 30, 2014.

The Corporation consolidates variable interest entities (VIEs) in which it is the primary beneficiary. In general, a VIE is an entity that either (i) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (ii) has a group of equity owners that are unable to make significant decisions about its activities or (iii) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns as generated by its operations. If any of these characteristics are present, the entity is subject to a variable interests consolidation model, and consolidation is based on variable interests, not on ownership of the entity's outstanding voting stock. Variable interests are defined as contractual, ownership, or other monetary interests in an entity that change with fluctuations in the entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has the power to direct the activities and absorb losses or the right to receive benefits. The Corporation is a significant limited partner in the qualified affordable housing, federal historic and new market projects it has invested in. These projects meet the definition of VIEs. However, the Corporation is not the primary beneficiary of any of the VIEs in which it holds a limited partnership interest; therefore, the VIEs are not consolidated in the Corporation's consolidated financial statements.

Shareholders’ Equity

Common Stock Repurchase Programs

From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share.

In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2015, there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase program.

Underwritten Public Offerings of Common Stock

On June 24, 2014, the Corporation issued and sold 2,500,000 shares of common stock at a public offering price of $28.00 per share. An additional 375,000 shares were issued and sold on June 30, 2014 upon the exercise in full of the underwriters' over-allotment option. The net proceeds from the issuance and sale of the common stock of this $80.5 million offering, after deducting the underwriting discount and issuance-related expenses, totaled $76.2 million.

On September 18, 2013, the Corporation issued and sold 2,213,750 shares of common stock, including 288,750 shares of common stock that were issued and sold upon the exercise in full of the underwriters' over-allotment option, at a public offering price of $26.00 per share. The net proceeds from the issuance and sale of the common stock, after deducting the underwriting discount and issuance-related expenses, totaled $53.9 million.

Shelf Registration

On June 12, 2014, the Corporation filed an automatic shelf registration statement on Form S-3 with the Securities and Exchange Commission (SEC) for an indeterminate amount of securities, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so.

Preferred Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation which eliminated and replaced the previous class of 200,000 shares of preferred stock, that had been approved by shareholders on April 20, 2009, with a new class of 2,000,000 shares of preferred stock. At June 30, 2015, no shares of preferred stock were issued and outstanding.

Common Stock

On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 45,000,000 to 60,000,000.

Legal Matters

The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation.

Reclassifications

Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported.

Adopted Accounting Pronouncements

In-Substance Foreclosures

In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-04). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for public companies for interim and annual periods beginning after December 15, 2014, with early adoption permitted. Once adopted, an entity can elect either (i) a modified retrospective transition method or (ii) a prospective transition method. The modified retrospective transition method is applied by means of a cumulative-effect adjustment to residential mortgage loans and foreclosed residential real estate properties existing as of the beginning of the period for which the amendments of ASU 2014-04 are effective, with real estate reclassified to loans measured at the carrying value of the real estate at the date of adoption and loans reclassified to real estate measured at the lower of net carrying value of the loan or the fair value of the real estate less costs to sell at the date of adoption. The prospective transition method is applied by means of applying the amendments of ASU 2014-04 to all instances of receiving physical possession of residential real estate properties that occur after the date of adoption. The adoption of ASU 2014-04 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Share-Based Compensation

In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (ASU 2014-12). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Corporation's early adoption of ASU 2014-12 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Government-Guaranteed Mortgage Loans

In August 2014, the FASB issued ASU 2014-14, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (ASU 2014-14). ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. Upon foreclosure of a government-guaranteed mortgage loan, the loan should be derecognized and a separate other receivable should be recognized if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor at the time of foreclosure. ASU 2014-14 is effective for public companies for interim and annual periods beginning after December 15, 2014. An entity should adopt using either the modified retrospective method or the prospective transition method. An entity must apply the same method elected under ASU 2014-04. Early adoption is permitted if the entity has already adopted ASU 2014-04. The adoption of ASU 2014-14 on January 1, 2015 did not have a material impact on the Corporation's consolidated financial condition or results of operations.

Pending Accounting Pronouncements

There are no recent accounting pronouncements that have been issued by the FASB that would have a material impact on the financial statements of the Corporation.

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Intangible Assets (Net Carrying Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	May. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Net carrying value of intangible assets
Goodwill	$ 285,512			$ 180,128	$ 120,164
Other intangible assets:
Total other intangible assets	41,201			33,080	12,454
Core deposit intangible assets [Member]
Other intangible assets:
Finite-Lived Core Deposits, Gross	28,353			20,863	9,110
Total other intangible assets	28,353			20,863	9,110
Noncompete Agreements [Member]
Other intangible assets:
Finite-Lived Noncompete Agreements, Gross					0			$ 0
Mortgage servicing rights [Member]
Other intangible assets:
Servicing Asset at Amortized Cost	12,307			12,217	3,344
Total other intangible assets	12,307		$ 11,583	$ 12,217	$ 3,344	$ 3,316	$ 3,423
Lake Michigan Financial Corp [Member]
Net carrying value of intangible assets
Goodwill		$ 100,002
Other intangible assets:
Finite-Lived Noncompete Agreements, Gross	$ 541	$ 600

XML

Fair Value Measurements (Fair Value of Assets on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	$ 685,706	$ 748,864	$ 615,975
Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	685,706	748,864	615,975
Loans Held-for-sale	7,798	9,128	6,329
Total assets measured at fair value on a recurring basis	693,504	757,992	622,304
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	8,294	8,259	0
Loans Held-for-sale	0	0	0
Total assets measured at fair value on a recurring basis	8,294	8,259	0
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	677,412	740,605	615,975
Loans Held-for-sale	7,798	9,128	6,329
Total assets measured at fair value on a recurring basis	685,210	749,733	622,304
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Loans Held-for-sale	0	0	0
Total assets measured at fair value on a recurring basis	0	0	0
US Treasury Securities [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	8,294	8,259
US Treasury Securities [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	8,294	8,259
US Treasury Securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	8,294	8,259
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0
Government sponsored agencies [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	227,907	263,503	88,708
Government sponsored agencies [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	227,907	263,503	88,708
Government sponsored agencies [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Government sponsored agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	227,907	263,503	88,708
Government sponsored agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
State and political subdivisions [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	26,965	46,227	41,608
State and political subdivisions [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	26,965	46,227	41,608
State and political subdivisions [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	26,965	46,227	41,608
State and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Residential mortgage-backed securities [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	212,669	239,807	265,368
Residential mortgage-backed securities [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	212,669	239,807	265,368
Residential mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Residential mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	212,669	239,807	265,368
Residential mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Collateralized mortgage obligations [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	167,032	144,383	153,283
Collateralized mortgage obligations [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	167,032	144,383	153,283
Collateralized mortgage obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Collateralized mortgage obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	167,032	144,383	153,283
Collateralized mortgage obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Corporate bonds [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	39,678	45,095	65,352
Corporate bonds [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	39,678	45,095	65,352
Corporate bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	39,678	45,095	65,352
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Preferred stock [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	3,161	1,590	1,656
Preferred stock [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	3,161	1,590	1,656
Preferred stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	0	0	0
Preferred stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	3,161	1,590	1,656
Preferred stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member]
Summary of assets measured at fair value on a recurring basis
Available-for-sale, at fair value	$ 0	$ 0	$ 0

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Net carrying value of intangible assets

The following table shows the net carrying value of the Corporation’s intangible assets:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Goodwill	$	285,512	$	180,128	$	120,164
Other intangible assets:
Core deposit intangible assets	$	28,353	$	20,863	$	9,110
Non-compete intangible assets	541		—		—
Mortgage servicing rights	12,307		12,217		3,344
Total other intangible assets	$	41,201	$	33,080	$	12,454

Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets

The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Gross original amount	$	39,355	$	31,550	$	18,659
Accumulated amortization	11,002		10,687		9,549
Carrying amount	$	28,353	$	20,863	$	9,110
Amortization expense for the three months ended June 30	$	952			$	446
Amortization expense for the six months ended June 30	$	1,743			$	891

Net carrying value, fair value of MSRs and loans Corporation servicing for others

The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others:

	June 30, 2015		December 31, 2014		June 30, 2014
	(In thousands)
Net carrying value of MSRs	$	12,307	$	12,217	$	3,344
Fair value of MSRs	$	16,602	$	14,979	$	6,433
Loans serviced for others that have servicing rights capitalized	$	2,193,067	$	2,093,140	$	871,158

Activity for capitalized MSRs

The following table shows the activity for capitalized MSRs:

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Balance at beginning of period	$	11,583		$	3,316		$	12,217		$	3,423
Acquired in Monarch acquisition	1,284			—			1,284			—
Additions	415			278			815			421
Amortization	(1,175		)	(250		)	(2,209		)	(500		)
Change in valuation allowance	200			—			200			—
Balance at end of period	$	12,307		$	3,344		$	12,307		$	3,344

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Share-Based Compensation (Stock Option Activity) (Details) - Jun. 30, 2015 - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average fair value of options granted	$ 8.40
Stock Options [Member] | Non Vested [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, Number of Options	432,199
Granted, Number of Options	244,165
Converted, Number of Options from Lake Michigan Acquisition	0.00
Exercised, Number of Options	0
Vested, Number of Options	(150,224)
Forfeited/expired, Number of Options	(9,175)
Ending balance, Number of Options	516,965
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Beginning balance, Weighted Average Exercise Price	$ 26.75
Granted, Weighted Average Exercise Price	30.18
Converted options from Lake Michigan acquisition, Weighted Average Exercise Price	0.00
Exercised, Weighted Average Exercise Price	0.00
Vested, Weighted Average Exercise Price	25.57
Forfeited/expired, Weighted Average Exercise Price	28.21
Ending balance, Weighted Average Exercise Price	28.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward]
Beginning balance, Weighted average grant date fair value	8.30
Weighted average fair value of options granted	8.40
Converted options from acquisitions, Wtd Avg Grant Date Fair Value	0.00
Exercised, Weighted Average Grant Date Fair Value	0.00
Vested, Weighted Average Grant Date Fair Value	7.80
Forfeited/expired, Weighted Average Grant Date Fair Value	8.52
Ending balance, Weighted average grant date fair value	$ 8.49
Stock Options [Member] | Vested & Nonvested [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance, Number of Options	1,037,311
Granted, Number of Options	244,165
Converted, Number of Options from Lake Michigan Acquisition	132,883
Exercised, Number of Options	(216,690)
Vested, Number of Options	0
Forfeited/expired, Number of Options	(9,175)
Ending balance, Number of Options	1,188,494
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Beginning balance, Weighted Average Exercise Price	$ 25.90
Granted, Weighted Average Exercise Price	30.18
Converted options from Lake Michigan acquisition, Weighted Average Exercise Price	12.93
Exercised, Weighted Average Exercise Price	23.99
Vested, Weighted Average Exercise Price	0.00
Forfeited/expired, Weighted Average Exercise Price	28.21
Ending balance, Weighted Average Exercise Price	$ 25.66
Stock Options [Member] | Vested [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward]
Exercisable/vested, Number of Options	671,529
Exercisable/vested, Weighted Average Exercise Price	$ 23.32

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Acquisitions Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Business Acquisition [Line Items]
Business Acquisition, Pro Forma interest and dividend income	$ 78,137	$ 74,842	$ 154,261	$ 148,089
Business Acquisition, Pro Forma interest expense	5,483	6,748	11,363	13,627
Business Acquisition, Pro Forma net interest income	72,654	68,094	142,898	134,462
Business Acquisition, Pro Forma provision for loan losses	1,500	1,860	3,000	4,035
Business Acquisition, Pro Forma net interest income after provision for loan losses	71,154	66,234	139,898	130,427
Business Acquisition, Pro Forma noninterest income	21,153	23,713	43,180	43,487
Business Acquisition, Pro Forma noninterest expense	62,394	59,915	123,042	121,241
Business Acquisition, Pro Forma pre-tax net income	29,913	30,032	60,036	52,673
Business Acquisition, Pro Forma federal income tax expense	7,525	9,048	16,736	15,807
Business Acquisition, Pro Forma Net Income (Loss)	$ 22,388	$ 20,984	$ 43,300	$ 36,866
Business Acquisition, Pro Forma Earnings Per Share, Basic	$ 0.59	$ 0.60	$ 1.14	$ 1.05
Business Acquisition, Pro Forma Earnings Per Share, Diluted	$ 0.58	$ 0.59	$ 1.13	$ 1.04
Weighted Average Number of Shares Outstanding, Basic	35,162	30,068	33,992	29,947
Weighted Average Number of Shares Outstanding, Diluted	35,397	30,279	34,227	30,159
Lake Michigan, Monarch and Northwestern [Member]
Business Acquisition [Line Items]
Weighted Average Number of Shares Outstanding, Basic	38,044	35,251	38,024	35,129
Weighted Average Number of Shares Outstanding, Diluted	38,279	35,462	38,259	35,398

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Share-Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

The Corporation maintains share-based compensation plans under which it periodically grants share-based awards for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three-month periods ended June 30, 2015 and 2014, share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $0.8 million and $0.6 million, respectively. During the six-month periods endedJune 30, 2015 and 2014, share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $1.5 million and $1.2 million, respectively.

During the six-month period ended June 30, 2015, the Corporation granted options to purchase 244,165 shares of common stock and 79,202 restricted stock units to certain officers. On April 20, 2015, the shareholders of the Corporation approved the Stock Incentive Plan of 2015, which provides for 1,300,000 shares of the Corporation's common stock to be made available for future equity-based awards and canceled the amount of shares available for future grant under prior share-based compensation plans. At June 30, 2015, there were 1,295,145 shares of common stock available for future grants under the Stock Incentive Plan of 2015.

Stock Options

The Corporation issues stock options to certain officers. Stock options are issued at the current market price of the Corporation's common stock on the date of grant and expire ten years from the date of grant. Stock options granted after 2012 vest ratably over a five-year period. Stock options granted prior to 2013 generally vest ratably over a three-year period.

In conjunction with the acquisition of Lake Michigan, the Corporation assumed the Lake Michigan Financial Corporation Stock Incentive Plan of 2012 and the Lake Michigan Financial Corporation Stock Incentive Plan of 2003 (collectively referred to as the Lake Michigan Stock Option Plans). On the date of acquisition, all outstanding Lake Michigan stock options became immediately vested, if not already vested, and were converted into 132,883 stock options for the Corporation. The converted options continue to have and are subject to the same terms of the Lake Michigan Stock Option Plans. No additional share-based awards may be granted under the Lake Michigan Stock Option Plans.

A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2015 is presented below:

	Non-Vested Stock Options Outstanding						Stock Options Outstanding
	Number of Options		Weighted- Average Exercise Price Per Share		Weighted- Average Grant Date Fair Value Per Share		Number of Options		Weighted- Average Exercise Price Per Share
Outstanding at December 31, 2014	432,199		$	26.75	$	8.30	1,037,311		$	25.90
Granted	244,165		30.18		8.40		244,165		30.18
Lake Michigan converted options	—		—		—		132,883		12.93
Exercised	—		—		—		(216,690	)	23.99
Vested	(150,224	)	25.57		7.80		—		—
Forfeited/expired	(9,175	)	28.21		8.52		(9,175	)	28.21
Outstanding at June 30, 2015	516,965		$	28.69	$	8.49	1,188,494		$	25.66
Exercisable/vested at June 30, 2015							671,529		$	23.32

The weighted-average remaining contractual terms were 6.6 years for all outstanding stock options and 4.8 years for exercisable stock options at June 30, 2015. The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $6.9 million and $4.7 million, respectively, at June 30, 2015. The aggregate intrinsic values of outstanding and exercisable options at June 30, 2015 were calculated based on the closing market price of the Corporation’s common stock on June 30, 2015 of $33.06 per share less the exercise price. Options with intrinsic values less than zero, or “out-of-the-money” options, were not included in the aggregate intrinsic value reported.

At June 30, 2015, unrecognized compensation expense related to stock options totaled $4.0 million and is expected to be recognized over a remaining weighted average period of 3.9 years.

The fair value of the stock options granted during the six months ended June 30, 2015 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions.

Expected dividend yield	3.50		%
Risk-free interest rate	1.78		%
Expected stock price volatility	39.1		%
Expected life of options – in years	7.0
Weighted average fair value of options granted	$	8.40

Restricted Stock Units

In addition to stock options, the Corporation grants restricted stock performance units and restricted stock service-based units (collectively referred to as restricted stock units) to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels and the grantee completing the requisite service period. The restricted stock performance units are eligible to vest from 0.25x to 1.5x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target levels are not achieved, no shares will become vested or be issued for that respective year’s restricted stock performance units. The restricted stock service-based units vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, if applicable, the restricted stock units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock units is recognized over the expected requisite performance or service period, as applicable.

A summary of the activity for restricted stock units as of and for the six months ended June 30, 2015 is presented below:

	Number of Units		Weighted- Average Grant Date Fair Value  Per Unit
Outstanding at December 31, 2014	204,319		$	24.14
Granted	79,202		28.25
Converted into shares of common stock	(67,489	)	22.32
Forfeited/expired	(1,427	)	25.13
Outstanding at June 30, 2015	214,605		$	26.23

At June 30, 2015, unrecognized compensation expense related to restricted stock unit awards totaled $3.7 million and is expected to be recognized over a remaining weighted average period of 2.8 years.