CHFC 2017 Annual Report

The Pension Plan's asset allocation by asset category was as follows: December 31, Asset Category 2017 2016 Equity securities 68% 69% Debt securities 28 29 Other 4 2 Total 100% 100% The following schedule sets forth the fair value of the Pension Plan's assets and the level of the valuation inputs used to value those assets at December 31, 2017 and 2016: (Dollars in thousands) Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total December 31, 2017 Cash $ 5,238 $ — $ — $ 5,238 Equity securities: U.S. large- and mid-cap stocks (1) 68,909 — — 68,909 U.S. small-cap mutual funds 5,377 — — 5,377 International large-cap mutual funds 18,341 — — 18,341 Emerging markets mutual funds 7,363 — — 7,363 Debt securities: U.S. Treasury and government sponsored agency bonds and notes — 548 — 548 Mutual funds (3) 40,046 — — 40,046 Other 79 — — 79 Total $ 145,353 $ 548 $ — $ 145,901 December 31, 2016 Cash $ 2,825 $ — $ — $ 2,825 Equity securities: U.S. large- and mid-cap stocks (1) 55,389 — — 55,389 U.S. small-cap mutual funds 5,687 — — 5,687 International large-cap mutual funds 13,701 — — 13,701 Emerging markets mutual funds 5,147 — — 5,147 Chemical Financial Corporation common stock 11,412 — — 11,412 Debt securities: U.S. Treasury and government sponsored agency bonds and notes — 806 — 806 Corporate bonds (2) — 1,503 — 1,503 Mutual funds (3) 36,220 — — 36,220 Other 61 — — 61 Total $ 130,442 $ 2,309 $ — $ 132,751 (1) Comprised of common stocks and mutual funds traded on U.S. Exchanges whose issuers had market capitalizations exceeding $3 billion. (2) Comprised of investment grade bonds of U.S. issuers from diverse industries. (3) Comprised primarily of fixed-income bonds issued by the U.S. Treasury and government sponsored agencies and bonds of U.S. and foreign issuers from diverse industries. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 151