CHFC 2018 Annual Report

The following table summarizes the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2018, 2017 and 2016: (Dollars in thousands) Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Income Statement December 31, 2018 December 31, 2017 December 31, 2016 Gains and losses on available- for-sale securities $ 224 $ (7,388) $ 129 Net gain (loss) on sale of investment securities (noninterest income) (47) 2,586 (45) Income tax (expense)/benefit $ 177 $ (4,802) $ 84 Net income (loss) Amortization of defined benefit pension plan items $ 11,339 $ (1,752) $ (2,276) Salaries, wages and employee benefits (operating expenses) (2,381) 613 797 Income tax expense/(benefit) $ 8,958 $ (1,139) $ (1,479) Net (income) loss Gains and losses on cash flow hedges (1,871) 1,633 — Interest on short-term borrowings (interest expense) 393 (572) — Income tax expense/(benefit) $ (1,478) $ 1,061 $ — Net (income) loss Chemical Financial Corporation Notes to Consolidated Financial Statements December 31, 2018 166 Note 25: Summary of Quarterly Statements of Income (Unaudited) The following is a summary of the unaudited quarterly results of operation for the years ended December 31, 2018, 2017 and 2016. In the opinion of management, the information reflects all adjustments that are necessary for the fair presentation of the results of operations for the periods presented. 2018 (Dollars in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total Interest income $ 177,934 $ 189,582 $ 198,377 $ 210,103 $ 775,996 Interest expense 26,071 32,045 38,896 46,651 143,663 Net interest income 151,863 157,537 159,481 163,452 632,333 Provision for loan losses 6,256 9,572 6,028 8,894 30,750 Noninterest income 40,554 38,018 37,917 32,047 148,536 Operating expenses 101,610 104,561 109,661 108,366 424,198 Income before income taxes 84,551 81,422 81,709 78,239 325,921 Income tax expense 12,955 12,434 11,312 5,200 41,901 Net income $ 71,596 $ 68,988 $ 70,397 $ 73,039 $ 284,020 Net income per common share: Basic $ 1.01 $ 0.97 $ 0.99 $ 1.02 $ 3.98 Diluted 0.99 0.96 0.98 1.01 3.94 Cash dividends declared per common share 0.28 0.28 0.34 0.34 1.24