Acquisitions (Tables)

12 Months Ended

Dec. 31, 2014

Activity for accretable yield includes contractually due interest of acquired loans

Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:



	Years Ended December 31,
	2014									2013
	Northwestern			OAK			Total			Total
	(In thousands)
Balance at beginning of period	$	—		$	32,610		$	32,610		$	49,390
Addition attributable to Northwestern transaction	110,003			—			110,003			—
Additions, net of reductions*	(1,605		)	5,411			3,806			(29		)
Accretion recognized in interest income	(3,723		)	(14,735		)	(18,458		)	(16,876		)
Reclassification from nonaccretable difference	—			10,000			10,000			125
Balance at end of period	$	104,675		$	33,286		$	137,961		$	32,610


*	Represents additions in estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans.

Northwestern Bancorp [Member]

Business Acquisition [Line Items]

Business Acquisition, Pro Forma Information [Table Text Block]

Unaudited Pro Forma Combined Results of Operations

The following unaudited pro forma combined results of operations of Chemical and Northwestern presents results as if the acquisition had been completed as of the beginning of each period indicated. The unaudited pro forma combined results of operations are presented solely for information purposes and are not intended to represent or be indicative of the consolidated results of operations that Chemical would have reported had this transaction been completed as of the dates and for the periods presented, nor are they necessarily indicative of future results. In particular, no adjustments have been made to eliminate the amount of Northwestern's provision for loan losses incurred prior to the acquisition date that would not have been necessary had the acquired loans been recorded at fair value as of the beginning of each period indicated. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded.



	Year ended December 31,
	2014		2013
	(In thousands, except per share data)
Interest income	$	247,748	$	241,499
Interest expense	16,221		20,014
Net interest income	231,527		221,485
Provision for loan losses	6,825		18,329
Net interest income after provision for loan losses	224,702		203,156
Noninterest income	79,229		82,492
Operating expenses	201,289		206,025
Income before income taxes	102,642		79,623
Federal income tax expense	32,209		23,777
Net income	$	70,433	$	55,846
Net income per common share:
Basic	$	2.25	$	1.98
Diluted	2.23		1.97
Weighted average shares outstanding:
Basic	31,367		28,183
Diluted	31,588		28,352

Purchase Accounting Fair Value Adjustments [Table Text Block]

The summary computation of the purchase price, including adjustments to reflect Northwestern’s assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Northwestern is presented below. The acquisition accounting presented below may be further adjusted during a measurement period of up to one year beyond the acquisition date that provides the Corporation with the opportunity to finalize the acquisition accounting in the event that new information is identified that existed as of the acquisition date but was not known by the Corporation at that time.

A summary of the purchase price and the excess of the purchase price over the fair value of adjusted net assets acquired (goodwill) follows (in thousands):



Cash paid to acquire outstanding stock	$	119,428
Cash paid for stock option cancellation agreements	1,580
Cash paid in acquisition	$	121,008

Net assets acquired:
Northwestern shareholders' equity	$	70,081
Adjustments to reflect fair value of net assets acquired:
Loans	(32,500		)
Allowance for loan losses	16,453
Deferred tax assets, net	5,787
Premises and equipment	(8,961		)
Core deposit intangibles	12,891
Mortgage servicing rights	1,568
Goodwill	(2,050		)
Other real estate	(800		)
Estimated losses on sold loans	(1,650		)
Other assets and other liabilities	225
Fair value or adjusted net assets acquired	61,044
Goodwill recognized as a result of the Northwestern transaction	$	59,964

Schedule of Purchase Price Allocation [Table Text Block]

Allocation of Purchase Price

The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Northwestern were as follows (in thousands):



Assets
Cash and cash equivalents	$	106,748
Investment securities	230,358
Loans	475,285
Premises and equipment	18,770
Deferred tax asset, net	8,557
Interest receivable and other assets	14,211
Goodwill	59,964
Core deposit intangible asset	12,891
Mortgage servicing rights asset	9,235
Assets acquired, at fair value	936,019
Liabilities
Deposits	794,447
Subordinated debt obligation	10,310
Interest payable and other liabilities	10,254
Total liabilities acquired, at fair value	815,011
Total cash purchase price	$	121,008