Regulatory Capital

3 Months Ended

Mar. 31, 2012

Regulatory Capital [Abstract]

Regulatory Capital

Note 7: Regulatory Capital

The Corporation and Chemical Bank are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank 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 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 totaled $3.87 billion, $3.88 billion and $3.69 billion at March 31, 2012, December 31, 2011 and March 31, 2011, respectively.

At March 31, 2012, December 31, 2011 and March 31, 2011, Chemical Bank’s capital ratios exceeded the quantitative capital ratios required for an institution to be considered “well-capitalized.” 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 Corporation’s and Chemical Bank’s 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
	(In thousands)
March 31, 2012
Total Capital to Risk-Weighted Assets:
Corporation	$	528,910		13.7	%	$	309,209		8.0	%		N/A		N/A
Chemical Bank		522,775		13.5			309,024		8.0		$	386,280		10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation		480,109		12.4			154,605		4.0			N/A		N/A
Chemical Bank		474,002		12.3			154,512		4.0			231,768		6.0
Leverage Ratio:
Corporation		481,109		9.1			210,126		4.0			N/A		N/A
Chemical Bank		474,002		9.0			210,055		4.0			262,569		5.0
December 31, 2011
Total Capital to Risk-Weighted Assets:
Corporation	$	517,547		13.3	%	$	310,316		8.0	%		N/A		N/A
Chemical Bank		510,290		13.2			310,119		8.0		$	387,649		10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation		468,565		12.1			155,158		4.0			N/A		N/A
Chemical Bank		461,338		11.9			155,060		4.0			232,589		6.0
Leverage Ratio:
Corporation		468,565		9.0			208,013		4.0			N/A		N/A
Chemical Bank		461,338		8.9			208,033		4.0			260,042		5.0
March 31, 2011
Total Capital to Risk-Weighted Assets:
Corporation	$	477,938		13.0	%	$	294,891		8.0	%		N/A		N/A
Chemical Bank		470,284		12.8			294,633		8.0		$	368,291		10.0	%
Tier 1 Capital to Risk-Weighted Assets:
Corporation		431,320		11.7			147,445		4.0			N/A		N/A
Chemical Bank		423,705		11.5			147,316		4.0			220,975		6.0
Leverage Ratio:
Corporation		431,320		8.4			205,712		4.0			N/A		N/A
Chemical Bank		423,705		8.2			205,563		4.0			256,954		5.0