CHFC 2018 Annual Report

Contractual Obligations The following schedule summarizes the aggregate contractual obligations and commitments at December 31, 2018. December 31, 2018 Minimum Payments Due by Period (Dollars in thousands) Less than 1 year 1-3 years 3-5 years More than 5 years Total Contractual Obligations: Deposits with no stated maturity (1) $ 11,519,034 $ — $ — $ — $ 11,519,034 Time deposits with a stated maturity (1) 2,776,097 1,181,309 115,976 866 4,074,248 Short-term borrowings (1) 2,035,000 — — — 2,035,000 Long-term borrowings (1) 100,058 110,044 — 215,900 426,002 Operating leases (2) 7,251 11,374 9,150 12,107 39,882 Other noncancelable contracts 46,225 68,896 57,973 46,771 219,865 Other contractual obligations (3) 40,821 31,640 143 321 72,925 Total contractual obligations $ 16,524,486 $ 1,403,263 $ 183,242 $ 275,965 $ 18,386,956 (1) Deposits, short-term borrowings and long-term borrowings exclude accrued interest. (2) Future minimum lease payments are reduced by $632 thousand related to sublease income to be received in the following periods: $211 thousand (less than 1 year); $421 thousand (1 to 3 years). (3) Includes commitments to fund qualified low income housing and other tax investment projects, private equity capital investments and other similar types of investments. Credit-Related Commitments We also have credit-related commitments that may impact liquidity. The following schedule summarizes credit-related commitments and expected expiration dates by period as of December 31, 2018. Because many of these commitments historically have expired without being drawn upon, the total amount of these commitments does not necessarily represent future liquidity requirements. Refer to Note 13 to our Consolidated Financial Statements for a further discussion of these obligations. (Dollars in thousands) Less than 1 year 1-3 years 3-5 years More than 5 years Total Unused commitments to extend credit: Loans to commercial borrowers $ 1,502,175 $ 886,211 $ 330,077 $ 212,992 $ 2,931,455 Loans to consumer borrowers 113,566 131,422 163,525 210,627 619,140 Total unused commitments to extend credit 1,615,741 1,017,633 493,602 423,619 3,550,595 Undisbursed loan commitments (1) 493,286 — — — 493,286 Standby letters of credit 61,777 18,313 21,810 17,081 118,981 Total credit-related commitments $ 2,170,804 $ 1,035,946 $ 515,412 $ 440,700 $ 4,162,862 (1) Excludes $67.9 million of residential mortgage loan originations that were expected to be sold in the secondary market. 68 Cash Dividends Annual cash dividends paid per common share over the past five years were as follows: Years Ended December 31, 2018 2017 2016 2015 2014 Annual Cash Dividend (per common share) $ 1.24 $ 1.10 $ 1.06 $ 1.00 $ 0.94 We have paid regular cash dividends every quarter since we began operating as a bank holding company in 1973. The earnings of Chemical Bank have been the principal source of funds to pay cash dividends to shareholders. Over the long term, cash dividends to shareholders are dependent upon earnings, capital requirements, legal and regulatory restraints and other factors affecting Chemical and Chemical Bank. On January 22, 2019, we declared a cash dividend on our common stock of $0.34 per share. The dividend will be paid on March 15, 2019 to shareholders of record as of March 1, 2019. Refer to Note 21 to our Consolidated Financial Statements for a further discussion of factors affecting cash dividends.