CHFC 2017 Annual Report

Chemical Financial Corporation Consolidated Statements of Comprehensive Income Year Ended December 31, (Dollars in thousands) 2017 2016 2015 Net Income $ 149,523 $ 108,032 $ 86,830 Other Comprehensive Income (Loss), Net of Tax: Unrealized holding gains (losses) on securities available-for-sale arising during the period 1,269 (18,723) (1,952) Reclassification adjustment for gains and losses on realized income 7,388 (129) (630) Tax effect (3,029) 6,598 904 Net unrealized gains (losses) on securities available-for-sale, net of tax 5,628 (12,254) (1,678) Unrealized gains on interest rate swaps designated as cash flow hedges 4,263 — — Reclassification adjustment for losses included in net income 1,633 — — Tax effect (2,064) — — Net unrealized gains on interest rate swaps designated as cash flow hedges, net of tax 3,832 — — Plan remeasurement 13,011 (707) — Adjustment for pension and other postretirement benefits 1,752 2,630 7,845 Tax effect (5,167) (673) (2,746) Net adjustment for pension and other postretirement benefits 9,596 1,250 5,099 Other comprehensive income (loss), net of tax 19,056 (11,004) 3,421 Total comprehensive income, net of tax $ 168,579 $ 97,028 $ 90,251 See accompanying notes to Consolidated Financial Statements. 81