CHFC 2017 Annual Report

Note 4: 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 December 31, 2017 and 2016: Investment Securities Available-for-Sale (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017 Government sponsored agencies $ 203,099 $ 765 $ 948 $ 202,916 State and political subdivisions 350,088 310 4,428 345,970 Residential mortgage-backed securities 151,752 5 1,626 150,131 Collateralized mortgage obligations 1,042,240 89 8,484 1,033,845 Corporate bonds 193,230 1,156 1,592 192,794 Preferred stock and trust preferred securities 36,237 1,715 62 37,890 Total $ 1,976,646 $ 4,040 $ 17,140 $ 1,963,546 December 31, 2016 U.S. Treasury securities $ 5,788 $ 5 $ — $ 5,793 Government sponsored agencies 216,890 189 2,068 215,011 State and political subdivisions 311,704 163 11,779 300,088 Residential mortgage-backed securities 276,162 112 3,992 272,282 Collateralized mortgage obligations 323,965 63 4,003 320,025 Corporate bonds 90,859 16 1,401 89,474 Preferred stock and trust preferred securities 31,353 1,018 80 32,291 Total $ 1,256,721 $ 1,566 $ 23,323 $ 1,234,964 Investment Securities Held-to-Maturity (Dollars in thousands) Amortized Cost Unrecognized Gains Unrecognized Losses Fair Value December 31, 2017 State and political subdivisions $ 676,593 $ 3,856 $ 17,933 $ 662,516 Trust preferred securities 500 — 110 390 Total $ 677,093 $ 3,856 $ 18,043 $ 662,906 December 31, 2016 State and political subdivisions $ 622,927 $ 2,648 $ 17,354 $ 608,221 Trust preferred securities 500 — 190 310 Total $ 623,427 $ 2,648 $ 17,544 $ 608,531 The majority of the Corporation's residential mortgage-backed securities and collateralized mortgage obligations are backed by a U.S. government agency (Government National MortgageAssociation) or a government sponsored enterprise (Federal Home Loan Mortgage Corporation or Federal National Mortgage Association). Proceeds from sales of securities and the associated gains and losses recorded in earnings are listed below: For the years ended December 31, (Dollars in thousands) 2017 2016 2015 Proceeds $ 409,220 $ 41,446 $ 40,301 Gross gains 178 325 631 Gross losses (7,566) (196) (1) Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 109