CHFC 2018 Annual Report

Accumulated Other Comprehensive Loss The following sets forth the changes in accumulated other comprehensive income (loss), net of tax, related to the Corporation's Pension Plan, Postretirement Plan and SERP during 2018: (Dollars in thousands) Pension Plan Postretirement Plan SERP Total Accumulated other comprehensive income (loss) at beginning of year $ (20,483) $ 744 $ (69) $ (19,808) Comprehensive income (loss) adjustment: Net actuarial income (loss) (9,032) 51 23 (8,958) Comprehensive income (loss) adjustment (9,032) 51 23 (8,958) Accumulated other comprehensive income (loss) at end of year $ (29,515) $ 795 $ (46) $ (28,766) The estimated income (loss) that will be amortized from accumulated other comprehensive income (loss) into net periodic cost, net of tax, in 2019 is as follows: (Dollars in thousands) Pension Plan Postretirement Plan SERP Total Net gain (loss) $ (444) $ 143 $ (1) $ (302) Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 159 Note 20: Equity Shelf Registration On May 10, 2017, the Corporation filed an automatic shelf registration statement on Form S-3ASR with the SEC for an indeterminate amount of securities, which became immediately effective. The shelf registration statement provides the Corporation with the ability to raise capital, subject to SEC rules and limitations, if the board of directors of the Corporation decides to do so. Preferred Stock On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation which eliminated and replaced the previous class of 200,000 shares of preferred stock, approved by shareholders on April 20, 2009, with a new class of 2,000,000 shares of preferred stock. As of December 31, 2018, no shares of preferred stock were issued and outstanding. Common Stock On July 19, 2016, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 60,000,000 to 100,000,000 in anticipation of the merger with Talmer. On April 26, 2017, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 100,000,000 to 135,000,000. Note 21: Regulatory Capital and Reserve Requirements Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank to the Corporation. As of December 31, 2018, substantially all of the assets of Chemical Bank were restricted from transfer to the Corporation in the form of loans or advances. Dividends from Chemical Bank are the principal source of funds for the Corporation. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank prior to making any cash dividend decisions. Banking regulations require that banks maintain cash reserve balances in vault cash, with the Federal Reserve Bank, or with certain other qualifying banks. The aggregate average amount of the regulatory balances required to bemaintained byChemical