Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Business Acquisition, Pro Forma Information [Table Text Block]

Unaudited Pro Forma Combined Results of Operations

The following unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch and Northwestern presents 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 these transactions been completed as of the dates and for the periods presented, nor are they necessarily 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 accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisitions have been excluded.



	Year ended December 31,
	2015		2014
	(In thousands, except per share data)
Interest income	$	313,851	$	301,838
Interest expense	21,750		26,386
Net interest income	292,101		275,452
Provision for loan losses	6,500		7,484
Net interest income after provision for loan losses	285,601		267,968
Noninterest income	83,447		86,243
Operating expenses	237,146		243,618
Income before income taxes	131,902		110,593
Federal income tax expense	30,680		31,138
Net income	$	101,222	$	79,455
Net income per common share:
Basic	$	2.66	$	2.17
Diluted	2.64		2.16
Weighted average shares outstanding:
Basic	38,097		36,550
Diluted	38,369		36,770

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:



	Lake Michigan			Monarch			North-western			OAK			Total
Year Ended December 31, 2015
Balance at beginning of period	$	—		$	—		$	104,675		$	33,286		$	137,961
Addition attributable to acquisitions	190,246			37,914			—			—			228,160
Additions, net of reductions*	(12,991		)	1,336			(3,396		)	6,601			(8,450		)
Accretion recognized in interest income	(24,256		)	(4,692		)	(18,656		)	(11,810		)	(59,414		)
Reclassification from nonaccretable difference	—			—			—			—			—
Balance at end of period	$	152,999		$	34,558		$	82,623		$	28,077		$	298,257

Year Ended December 31, 2014
Balance at beginning of period							$	—		$	32,610		$	32,610
Addition attributable to acquisitions							110,003			—			110,003
Additions, net of reductions*							(1,605		)	5,411			3,806
Accretion recognized in interest income							(3,723		)	(14,735		)	(18,458		)
Reclassification from nonaccretable difference							—			10,000			10,000
Balance at end of period							$	104,675		$	33,286		$	137,961


*	Represents additions in 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 ⁽¹⁾:
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	(5,031		)	⁽²⁾
Core deposit intangibles	8,003
Deferred tax assets, net	3,572			⁽²⁾
Deposits and borrowings, net	(3,182		)	⁽²⁾
Other assets and other liabilities	(157		)
Fair value of adjusted net assets acquired	85,773
Goodwill recognized as a result of the Lake Michigan transaction	$	101,621

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following schedule summarizes the revised acquisition date estimated fair values, including the adjustments to the fair values identified and recorded from the acquisition date through December 31, 2015, of assets acquired and liabilities assumed from Lake Michigan (in thousands):



Assets
Cash and cash equivalents	$	39,301
Investment securities	66,699
Loans	985,542
Premises and equipment	10,975
Deferred tax asset, net	16,191
Goodwill	101,621
Core deposit intangible asset	8,003
Bank-owned life insurance	23,844
Other assets	37,659
Assets acquired, at fair value	1,289,835
Liabilities
Deposits	924,697
Short-term borrowings	30,000
Other borrowings	124,857
Other liabilities	22,887
Total liabilities acquired, at fair value	1,102,441
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 ⁽¹⁾:
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	1,826			⁽²⁾
Premises and equipment	(395		)	⁽²⁾
Core deposit intangibles	1,930
Mortgage servicing rights	315
Other assets and other liabilities	37
Fair value of adjusted net assets acquired	21,861
Goodwill recognized as a result of the Monarch transaction	$	5,330

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following schedule summarizes the the revised acquisition date estimated fair values, including the adjustments to the fair values identified and recorded from the acquisition date through December 31, 2015, of assets acquired and liabilities assumed from Monarch.



Assets
Cash and cash equivalents	$	32,171
Loans	121,783
Premises and equipment	3,039
Deferred tax assets, net
Net operating loss carryforward	7,900
Other	2,392
Interest receivable and other assets	6,972
Goodwill	5,330
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

Northwestern Bancorp [Member]

Business Acquisition [Line Items]

Purchase Accounting Fair Value Adjustments [Table Text Block]