CHFC 2018 Annual Report

Chemical Financial Corporation Consolidated Statements of Comprehensive Income Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Net income $ 284,020 $ 149,523 $ 108,032 Other comprehensive income (loss), net of tax: Unrealized holding gains (losses) on securities carried at fair value arising during the period (34,054) 1,269 (18,723) Reclassification adjustment for (gains) losses on realized income (224) 7,388 (129) Tax effect 7,198 (3,029) 6,598 Net unrealized gains (losses) on securities carried at fair value, net of tax (27,080) 5,628 (12,254) Unrealized gains on interest rate swaps designated as cash flow hedges 2,841 4,263 — Reclassification adjustment for (gains) losses included in net income (1,871) 1,633 — Tax effect (203) (2,064) — Net unrealized gains on interest rate swaps designated as cash flow hedges, net of tax 767 3,832 — Plan remeasurement — 13,011 (707) Adjustment for pension and other postretirement benefits (11,339) 1,752 2,630 Tax effect 2,381 (5,167) (673) Net adjustment for pension and other postretirement benefits (8,958) 9,596 1,250 Other comprehensive income (loss), net of tax (35,271) 19,056 (11,004) Total comprehensive income, net of tax $ 248,749 $ 168,579 $ 97,028 See accompanying notes to Consolidated Financial Statements. 85