CHFC 2018 Annual Report

Note 22: 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) 2018 2017 Assets Cash at subsidiary bank $ 11,477 $ 5,761 Investment in subsidiaries 2,820,866 2,673,858 Premises and equipment 3,595 3,931 Goodwill 1,092 1,092 Deferred tax asset 5,865 7,203 Other assets 27,157 31,459 Total assets $ 2,870,052 $ 2,723,304 Liabilities Other liabilities $ 17,892 $ 18,877 Non-revolving line-of-credit — 19,963 Subordinated debentures 15,900 15,715 Total liabilities 33,792 54,555 Shareholders' equity 2,836,260 2,668,749 Total liabilities and shareholders' equity $ 2,870,052 $ 2,723,304 Condensed Statements of Income Years Ended December 31, (Dollars in thousands) 2018 2017 2016 Income Cash dividends from subsidiaries $ 114,300 $ 165,000 $ 110,450 Other (loss) income (269) 921 151 Total income 114,031 165,921 110,601 Expenses Interest expense 1,601 3,076 1,816 Operating expenses 13,784 23,298 30,589 Total expenses 15,385 26,374 32,405 Income before income taxes and equity in undistributed net income of subsidiaries 98,646 139,547 78,196 Income tax benefit 4,472 12,670 11,378 Equity in undistributed net income (loss) of subsidiaries 180,902 (2,694) 18,458 Net income $ 284,020 $ 149,523 $ 108,032 Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 162