CHFC 2017 Annual Report

Note 21: 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) 2017 2016 Assets Cash at subsidiary bank $ 5,761 $ 16,851 Investment in subsidiaries 2,673,858 2,654,458 Premises and equipment 3,931 4,051 Goodwill 1,092 1,092 Deferred tax asset 7,203 30,715 Other assets 31,459 32,869 Total assets $ 2,723,304 $ 2,740,036 Liabilities Other liabilities $ 18,877 $ 18,345 Non-revolving line-of-credit 19,963 124,625 Subordinated debentures 15,715 15,540 Total liabilities 54,555 158,510 Shareholders' equity 2,668,749 2,581,526 Total liabilities and shareholders' equity $ 2,723,304 $ 2,740,036 Condensed Statements of Income Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Income Cash dividends from subsidiaries $ 165,000 $ 110,450 $ 56,860 Other income 921 151 144 Total income 165,921 110,601 57,004 Expenses Interest expense 3,076 1,816 761 Operating expenses 23,298 30,589 7,794 Total expenses 26,374 32,405 8,555 Income before income taxes and equity in undistributed net income of subsidiaries 139,547 78,196 48,449 Income tax benefit 12,670 11,378 2,582 Equity in undistributed net (loss) income of subsidiaries (2,694) 18,458 35,799 Net income $ 149,523 $ 108,032 $ 86,830 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2017 156