CHFC 2018 Annual Report

Disclosure of Recurring Basis Fair Value Measurements For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets and liabilities follow: (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, 2018 Investment securities — carried at fair value: Government and government-sponsored enterprises $ — $ 351,700 $ — $ 351,700 State and political subdivisions — 516,286 — 516,286 Residential mortgage-backed securities — 213,428 — 213,428 Collateralized mortgage obligations — 1,601,298 — 1,601,298 Corporate bonds — 293,063 — 293,063 Trust preferred securities — 46,057 — 46,057 Total investment securities — carried at fair value — 3,021,832 — 3,021,832 Loans held-for-sale — 85,030 — 85,030 Loan servicing rights — — 71,013 71,013 Derivative assets: Customer-initiated derivatives — 26,680 — 26,680 Interest rate lock commitments — 1,049 — 1,049 Power Equity CD — 718 — 718 Risk management derivatives — 10,148 — 10,148 Total derivatives — 38,595 — 38,595 Total assets at fair value $ — $ 3,145,457 $ 71,013 $ 3,216,470 Derivative liabilities: Customer-initiated derivatives $ — $ 27,664 $ — $ 27,664 Forward contracts related to mortgage loans to be delivered for sale — 719 — 719 Power Equity CD — 718 — 718 Risk management derivatives — 3,278 — 3,278 Total derivatives — 32,379 — 32,379 Total liabilities at fair value $ — $ 32,379 $ — $ 32,379 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 107