CHFC 2018 Annual Report

A summary of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position are disclosed in the table below: December 31, Level in Fair Value Measurement Hierarchy 2018 2017 (Dollars in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Investment securities: Held-to-maturity Level 2 $ 623,599 $ 618,232 $ 676,593 $ 662,516 Held-to-maturity Level 3 500 440 500 390 Net loans (1) Level 3 15,159,795 14,907,789 14,063,380 14,114,545 Financial liabilities: Time deposits Level 2 $ 4,074,248 $ 4,041,212 $ 3,217,207 $ 3,225,847 Collateralized customer deposits Level 2 382,687 382,370 415,236 415,236 Short-term borrowings Level 2 2,035,000 2,034,719 2,000,000 1,999,137 Long-term borrowings Level 2 426,002 423,258 372,882 367,984 (1) Included $63.2 million and $70.6 million of impaired loans recorded at fair value on a nonrecurring basis at December 31, 2018 and 2017, respectively. The short-term nature of certain assets and liabilities result in their carrying value approximating fair value. These include cash and cash equivalents, nonmarketable equity securities, interest receivable, bank owned life insurance, deposits without defined maturities and interest payable. Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 112