XBRL Cloud: Business Report

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Component: (Network and Table)
Network	2303301 - Disclosure - Fair Value Measurements (Tables) (http://www.chemicalbankmi.com/role/FairValueMeasurementsTables)
Table	(Implied)

Slicers (applies to each fact value in each table cell)

Reporting Entity [Axis]

0000019612 (http://www.sec.gov/CIK)

Fair Value Disclosures [Abstract]

Period [Axis]

2016-01-01 - 2016-12-31

Fair Value Disclosures [Abstract]

Summary of assets measured at fair value on a recurring basis

For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets follow:



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2016
Investment securities — available-for-sale:
U.S. Treasury securities	$	5,793	$	—	$	—	$	5,793
Government sponsored agencies	—		215,011		—		215,011
State and political subdivisions	—		300,088		—		300,088
Residential mortgage-backed securities	—		272,282		—		272,282
Collateralized mortgage obligations	—		320,025		—		320,025
Corporate bonds	—		89,474		—		89,474
Preferred stock and trust preferred securities	—		32,291		—		32,291
Total investment securities — available-for-sale	5,793		1,229,171		—		1,234,964
Loans held-for-sale	—		81,830		—		81,830
Loan servicing rights	—		—		48,085		48,085
Derivative assets:
Customer-initiated derivatives	—		4,406		—		4,406
Forward contracts related to mortgage loans to be delivered for sale	—		635		—		635
Interest rate lock commitments	—		956		—		956
Power Equity CD	—		2,218		—		2,218
Total derivatives	—		8,215		—		8,215
Total assets at fair value	$	5,793	$	1,319,216	$	48,085	$	1,373,094
Derivative liabilities:
Customer-initiated derivatives	—		4,141		—		4,141
Power Equity CD	—		2,218		—		2,218
Total derivatives	—		6,359		—		6,359
Total liabilities at fair value	$	—	$	6,359	$	—	$	6,359



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2015
Investment securities — available-for-sale:
U.S. Treasury securities	$	5,765	$	—	$	—	$	5,765
Government sponsored agencies	—		194,989		—		194,989
State and political subdivisions	—		15,120		—		15,120
Residential mortgage-backed securities	—		187,768		—		187,768
Collateralized mortgage obligations	—		132,230		—		132,230
Corporate bonds	—		14,627		—		14,627
Preferred stock and trust preferred securities	—		3,232		—		3,232
Total investment securities — available-for-sale	5,765		547,966		—		553,731
Loans held-for-sale	—		10,327		—		10,327
Derivative assets:
Forward contracts related to mortgage loans to be delivered for sale	—		144		—		144
Interest rate lock commitments	—		42		—		42
Power Equity CD	—		1,832		—		1,832
Total derivatives	—		2,018		—		2,018
Total assets at fair value	$	5,765	$	560,311	$	—	$	566,076
Derivative liabilities:
Forward contracts related to mortgage loans to be delivered for sale	—		57		—		57
Interest rate lock commitments	—		90		—		90
Power Equity CD	—		1,832		—		1,832
Total derivatives	—		1,979		—		1,979
Total liabilities at fair value	$	—	$	1,979	$	—	$	1,979

Summary of changes in Level 3 assets measured at fair value on a recurring basis

The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis.



	Year ended December 31, 2016
(Dollars in thousands)	Loan servicing rights
Balance, beginning of period	$	—
Additions due to acquisition	42,462
Gains (losses):
Recorded in earnings (realized):
Recorded in “Mortgage banking revenue”	4,593
New originations	1,030
Balance, end of period	$	48,085

Schedule of aggregate fair value contractual balance and gain (loss) for loans held-for-sale

The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held-for-sale carried at fair value was as follows:



	December 31,
(Dollars in thousands)	2016		2015
Aggregate fair value	$	81,830	$	10,327
Contractual balance	81,009		10,366
Unrealized gain (loss)	821		(39		)

Amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income

The total amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income were as follows:



	For the years ended December 31,
(Dollars in thousands)	2016		2015			2014
Interest income⁽¹⁾	$	1,606	$	83		$	66
Change in fair value⁽²⁾	39		(61		)	110
Total included in earnings	$	1,645	$	22		$	176

(1) Included in "Interest and fees on loans" in the Consolidated Statements of Income.

(2) Included in "Mortgage banking revenue" in the Consolidated Statements of Income.

Summary of assets measured at fair value on a nonrecurring basis

For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets follow:



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2016
Impaired originated loans	$	—	$	—	$	62,184	$	62,184
Other real estate/repossessed assets	—		—		1,386		1,386
Loan servicing rights	—		—		2		2
Total	$	—	$	—	$	63,572	$	63,572
December 31, 2015
Impaired originated loans	$	—	$	—	$	42,065	$	42,065
Other real estate/repossessed assets	—		—		3,068		3,068
Total	$	—	$	—	$	45,133	$	45,133

Additional information about significant unobservable inputs used in the fair value measurement of financial assets

The following table presents additional information about the significant unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy:



(Dollars in thousands)	Fair Value at December 31, 2016		Valuation Technique	Significant Unobservable Inputs	Range
Impaired originated loans	$	62,184	Appraisal of collateral	Discount for type of collateral and age of appraisal	10%-25%
Other real estate/repossessed assets	1,386		Appraisal of property	Discount for type of property and age of appraisal	10%-25%
Loan servicing rights	2		Discounted cash flow	Constant prepayment rate	9%-18%
				Discount rate	10%-11%

Summary of carrying amounts and estimated fair values of the financial instruments

A summary of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position was as follows:



		December 31,
	Level in Fair Value Measurement Hierarchy	2016				2015
(Dollars in thousands)	Level in Fair Value Measurement Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	474,402	$	474,402	$	238,789	$	238,789
Investment securities:
Held-to-maturity	Level 2	622,927		608,221		509,471		512,405
Held-to-maturity	Level 3	500		310		500		7,090
Nonmarketable equity securities	NA	97,350		97,350		36,907		36,907
Net loans⁽¹⁾	Level 3	12,912,511		13,069,315		7,197,819		7,201,994
Interest receivable	Level 2	42,235		42,235		21,953		21,953
Financial liabilities:
Deposits:
Deposits without defined maturities	Level 2	$	9,862,755	$	9,862,755	$	5,809,355	$	5,809,355
Time deposits	Level 2	3,010,367		3,010,048		1,647,412		1,647,412
Total deposits		12,873,122		12,872,803		7,456,767		7,456,767
Interest payable	Level 2	5,415		5,415		1,578		1,578
Securities sold under agreements to repurchase with customers	Level 2	343,047		343,047		297,199		297,199
Short-term borrowings	Level 2	825,000		825,000		100,000		100,000
Long-term borrowings	Level 2	597,847		591,227		242,391		242,391


(1)	Included $62.2 million and $42.1 million of impaired loans recorded at fair value on a nonrecurring basis at December 31, 2016 and 2015, respectively.