CHFC 2017 Annual Report

The results of the merged Monarch operations are presented in the Consolidated Financial Statements from the date of acquisition. 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 during the second quarter of 2015. Acquisition-related expenses associated with the Monarch transaction totaled $2.3 million during 2015. 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. (Dollars in thousands) Stock $ 26,988 Cash 203 Total consideration $ 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 1,826 Premises and equipment (415) Core deposit intangibles 1,930 Mortgage servicing rights 315 Other assets and other liabilities 48 Fair value of adjusted net assets acquired 21,852 Goodwill recognized as a result of the Monarch transaction $ 5,339 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 99