Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

Business Acquisition, Pro Forma Information [Table Text Block]

Unaudited Pro Forma Combined Results of Operations

The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions 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 indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or 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 addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded.



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands, except per share data)
Interest income	$	78,137	$	74,842	$	154,261	$	148,089
Interest expense	5,483		6,748		11,363		13,627
Net interest income	72,654		68,094		142,898		134,462
Provision for loan losses	1,500		1,860		3,000		4,035
Net interest income after provision for loan losses	71,154		66,234		139,898		130,427
Noninterest income	21,153		23,713		43,180		43,487
Operating expenses	62,394		59,915		123,042		121,241
Income before income taxes	29,913		30,032		60,036		52,673
Federal income tax expense	7,525		9,048		16,736		15,807
Net income	$	22,388	$	20,984	$	43,300	$	36,866
Net income per common share:
Basic	$	0.59	$	0.60	$	1.14	$	1.05
Diluted	0.58		0.59		1.13		1.04
Weighted average shares outstanding:
Basic	38,044		35,251		38,024		35,129
Diluted	38,279		35,462		38,259		35,398

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:



	Six Months Ended June 30,
	2015															2014
	Lake Michigan			Monarch			North-western			OAK			Total			OAK
	(In thousands)
Balance at beginning of period	$	—		$	—		$	104,675		$	33,286		137,961			$	32,610
Additions attributable to acquisitions	190,246			37,914			—			—			228,160			—
Additions (reductions)*	1,550			(1,141		)	(2,859		)	5,215			2,765			2,333
Accretion recognized in interest income	(3,486		)	(968		)	(10,058		)	(6,326		)	(20,838		)	(7,594		)
Reclassification from nonaccretable difference	—			—			—			—			—			10,000
Balance at end of period	$	188,310		$	35,805		$	91,758		$	32,175		$	348,048		$	37,349

*Represents additions of 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.

Lake Michigan Financial Corp [Member]

Business Acquisition [Line Items]

Purchase Accounting Fair Value Adjustments [Table Text Block]

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):



Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share)	$	130,916
Fair value of Lake Michigan options converted to the Corporation's options	2,000
Cash paid to acquire outstanding stock	54,478
Total purchase price	$	187,394

Net assets acquired:
Lake Michigan shareholders' equity	$	89,280
Adjustments to reflect fair value of net assets acquired:
Loans	(22,600		)
Allowance for loan losses	15,888
Premises and equipment	(2,333		)
Core deposit intangibles	7,303
Deferred tax assets, net	2,269
Deposits and borrowings, net	(3,048		)
Other assets and other liabilities	633
Fair value of adjusted net assets acquired	87,392
Goodwill recognized as a result of the Lake Michigan transaction	$	100,002

Schedule of Purchase Price Allocation [Table Text Block]

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



Assets
Cash and cash equivalents	$	39,301
Investment securities	66,699
Loans	985,542
Premises and equipment	13,673
Deferred tax asset, net	14,888
Goodwill	100,002
Core deposit intangible asset	7,303
Bank-owned life insurance	23,844
Other assets	38,449
Assets acquired, at fair value	1,289,701
Liabilities
Deposits	924,697
Short-term borrowings	30,000
Other borrowings	124,723
Other liabilities	22,887
Total liabilities acquired, at fair value	1,102,307
Total purchase price	$	187,394

Monarch Community Bancorp [Member]

Business Acquisition [Line Items]

Purchase Accounting Fair Value Adjustments [Table Text Block]

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):



Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share)	$	26,988
Cash paid	203
Total purchase price	$	27,191

Net assets acquired:
Monarch shareholders' equity	15,270
Adjustments to reflect fair value of net assets acquired:
Loans	(7,150		)
Allowance for loan losses	2,128
Deferred tax assets, net:
Net operating loss carryforward	7,900
Other	1,748
Premises and equipment	(370		)
Core deposit intangibles	1,930
Mortgage servicing rights	315
Other assets and other liabilities	37
Fair value of adjusted net assets acquired	21,808
Goodwill recognized as a result of the Monarch transaction	$	5,383

Schedule of Purchase Price Allocation [Table Text Block]

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



Assets
Cash and cash equivalents	$	32,171
Loans	121,783
Premises and equipment	3,064
Deferred tax assets, net
Net operating loss carryforward	7,900
Other	2,314
Interest receivable and other assets	6,972
Goodwill	5,383
Core deposit intangibles	1,930
Mortgage servicing rights	1,284
Assets acquired, at fair value	182,801
Liabilities
Deposits	144,311
FHLB advances	8,000
Interest payable and other liabilities	3,299
Total liabilities acquired, at fair value	155,610
Total purchase price	$	27,191