Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Parent Company Only Financial Statements

Parent Company Only Financial Statements

Condensed financial statements of Chemical Financial Corporation (parent company) only follow:

Condensed Statements of Financial Position

	December 31,
(Dollars in thousands)	2016		2015
Assets
Cash at subsidiary bank	$	16,851	$	28,884
Investment in subsidiaries	2,654,458		1,023,285
Premises and equipment	4,051		3,632
Goodwill	1,092		1,092
Other assets	63,584		13,051
Total assets	$	2,740,036	$	1,069,944
Liabilities
Other liabilities	$	18,345	$	10,426
Non-revolving line-of-credit	124,625		25,000
Subordinated debentures	15,540		18,544
Total liabilities	158,510		53,970
Shareholders' equity	2,581,526		1,015,974
Total liabilities and shareholders' equity	$	2,740,036	$	1,069,944

Condensed Statements of Income

	Years Ended December 31,
(Dollars in thousands)	2016		2015		2014
Income
Cash dividends from subsidiaries	$	110,450	$	56,860	$	64,468
Other income	151		144		95
Total income	110,601		57,004		64,563
Expenses
Interest expense	1,816		761		42
Operating expenses	30,589		7,794		7,200
Total expenses	32,405		8,555		7,242
Income before income taxes and equity in undistributed net income of subsidiaries	78,196		48,449		57,321
Income tax benefit	11,378		2,582		2,302
Equity in undistributed net income of subsidiaries	18,458		35,799		2,498
Net income	$	108,032	$	86,830	$	62,121

Condensed Statements of Cash Flows

	Years Ended December 31,
(Dollars in thousands)	2016			2015			2014
Cash Flows From Operating Activities
Net income	$	108,032		$	86,830		$	62,121
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	13,452			3,478			2,931
Depreciation of premises and equipment	355			318			327
Equity in undistributed net income of subsidiaries	(18,458		)	(35,799		)	(2,498		)
Net decrease in other assets	9,752			2,873			1,101
Net decrease in other liabilities	(11,830		)	(19,033		)	(2,519		)
Net cash provided by operating activities	101,303			38,667			61,463
Cash Flows From Investing Activities
Cash paid, net of cash assumed, in business combinations	(107,622		)	(45,267		)	(117,853		)
Purchases of premises and equipment, net	(774		)	(320		)	(26		)
Net cash used in investing activities	(108,396		)	(45,587		)	(117,879		)
Cash Flows From Financing Activities
Cash dividends paid	(49,389		)	(36,918		)	(29,528		)
Proceeds from issuance of common stock, net of issuance costs	—			—			76,175
Repayment of subordinated debt obligations	(18,558		)	—			(10,310		)
Repayments of other borrowings	(62,500		)	—			—
Proceeds from issuance of other borrowings	125,000			25,000			—
Proceeds from directors' stock purchase plan and exercise of stock options	1,572			2,473			1,242
Cash paid for payroll taxes upon conversion of restricted stock units	(1,065		)	(571		)	(701		)
Net cash provided by (used in) financing activities	(4,940		)	(10,016		)	36,878
Net decrease in cash and cash equivalents	(12,033		)	(16,936		)	(19,538		)
Cash and cash equivalents at beginning of year	28,884			45,820			65,358
Cash and cash equivalents at end of year	$	16,851		$	28,884		$	45,820
Business combinations:
Fair value of assets acquired (noncash)	$	46,898		$	10,304		$	1,537
Liabilities assumed	58,309			42,019			13,010
Common stock and stock options issued	1,504,811			159,904			—