EXHIBIT 99.1
For further information: |
For Immediate Release
Chemical Financial Corporation Reports Third Quarter 2007 Earnings
MIDLAND, Mich., October 22, 2007 -- Chemical Financial Corporation's (Nasdaq:CHFC) Board of Directors today announced 2007 third quarter net income of $10.6 million, or $0.44 per diluted share, versus net income of $11.5 million, or $0.46 per diluted share, in the third quarter of 2006.
Net income was $29.2 million, or $1.19 per diluted share, for the nine months ended September 30, 2007, compared to net income of $35.6 million, or $1.42 per diluted share, for the nine months ended September 30, 2006.
"We continue to be negatively impacted by Michigan's stagnant economy, with real estate related credit quality a growing concern given depressed real estate values in key Michigan markets. While net interest income was only slightly below that of the prior year's quarter, and approximately the same as the second quarter of 2007, a deterioration in credit quality resulted in an increase in our provision for loan losses," said David B. Ramaker, Chairman, President and Chief Executive Officer.
"We will continue to be aggressive in addressing nonperforming assets and remain committed to improving credit quality. While we anticipate little improvement in the state's economy in the short term, we are cautiously optimistic about Michigan's longer term prospects. Over the past few years, to adapt to the no-growth environment in which we are operating, we have worked to control operating costs and limit the rate of projected operating expense growth. At the same time, we continue to pursue specific growth strategies aimed at enhancing long-term shareholder value. We are encouraged by the continued progress of our retail banking reorganization and our efforts to drive
revenue growth by doing more business with existing customer households," said Ramaker.
The Company's previously announced retail banking reorganization, which involves realigning its 15 community bank structure into four regions while consolidating numerous back office and support functions, is nearing completion. During the third quarter of 2007, the Company did not incur any reorganization costs, although the Company anticipates that it will incur approximately $0.5 million in expenses related to the reorganization in the fourth quarter of 2007, which would result in a total of $2.1 million of reorganization expenses in 2007. The Company projects that annual expense savings from the reorganization upon its completion will total $2.0 million.
Total assets were $3.82 billion at September 30, 2007, up slightly from $3.79 billion at December 31, 2006, and down slightly from $3.84 billion at September 30, 2006. At September 30, 2007, total loans were $2.81 billion, up slightly from December 31, 2006 and down slightly from $2.82 billion at September 30, 2006. Over the past twelve months, increases in real estate commercial and real estate residential loans have offset declines in commercial, real estate construction and consumer loans. Investment securities were $632 million at September 30, 2007, up slightly from $615 million at December 31, 2006, but down from $638 million at September 30, 2006.
Total deposits were $2.97 billion at September 30, 2007, up from $2.90 billion at December 31, 2006 and up from $2.96 billion at September 30, 2006. Wholesale borrowings, solely Federal Home Loan Bank advances, totaled $125.0 million at September 30, 2007, down $50.1 million or 28.6%, from $175.1 million at December 31, 2006 and down $55.1 million or 30.6%, from $180.1 million at September 30, 2006. The Company utilized the liquidity provided through the increase in deposits to pay off its short-term Federal Home Loan Bank advances during the past twelve months.
Net interest income was $32.47 million in the third quarter of 2007, a slight decrease from third quarter 2006 net interest income of $32.74 million, although
approximately the same as net interest income of $32.42 million in the second quarter of 2007. The decrease in net interest income was attributable primarily to a decrease in net interest margin. The net interest margin (on a tax-equivalent basis) in the third quarter of 2007 was 3.68%, down from 3.74% in the third quarter of 2006, and down from 3.70% in the second quarter of 2007. The decline in net interest margin from the prior year was primarily attributable to increases in rates paid on interest-bearing liabilities exceeding increases in rates earned on interest-earning assets, as deposits repriced more than loans in the past twelve months. The decline in net interest margin from the second quarter of 2007 was primarily due to a higher level of nonperforming loans in the current quarter.
The provision for loan losses was $2.9 million in the third quarter of 2007, compared to $2.5 million in the second quarter of 2007 and $1.8 million in the third quarter of 2006. Net loan charge-offs were $0.8 million in the third quarter of 2007, down from $1.3 million in the second quarter of 2007, although up from $0.4 million in the third quarter of 2006. The increase in the provision for loan losses in the third quarter of 2007, as compared to the previous year's quarter and the second quarter of 2007, was reflective of the overall deterioration in credit quality. The increase in the provision for loan losses was primarily driven by increased specific impairment reserves of $1.3 million during the quarter and an increase in nonaccrual loans. The allowance for loan losses at September 30, 2007 was $38.4 million or 1.36% of total loans, up from 1.30% of total loans at June 30, 2007 and 1.25% at September 30, 2006.
At September 30, 2007, nonperforming assets totaled $62.8 million, up from $57.0 million at June 30, 2007, and $42.7 million at September 30, 2006. During the third quarter of 2007, the Company saw a significant increase in the level of nonperforming real estate residential loans which accounted for approximately two-thirds of the increase in nonperforming assets from June 30, 2007. At September 30, 2007, nonperforming loans were $53.6 million and represented 1.90% of total loans, up from $47.8 million or 1.71% of total loans at June 30, 2007 and $32.6 million or 1.16% of total loans at September 30, 2006. Nonperforming loans at September 30, 2007, when compared to September 30, 2006, were higher in all loan segments.
The allowance for loan losses as a percent of nonperforming loans has decreased slightly from 76% at June 30, 2007 to 72% at September 30, 2007. A portion of the Company's nonperforming loans involve specific real estate commercial loans which have been analyzed and deemed to have sufficient collateral values so as not to require allocation of the allowance for loan losses to these loans.
Noninterest income in the third quarter of 2007 was $11.1 million, up $1.2 million or 12%, from $9.9 million in the third quarter of 2006 and a decrease of $0.3 million or 2.6% from the second quarter of 2007. The increase in noninterest income over the prior year was primarily due to an increase in other income attributable to $1 million in insurance proceeds recognized in the third quarter of 2007 from fire damage of a branch building. The insurance proceeds will be utilized for capital expenditures in 2008 to remediate the fire damage.
Operating expenses in the third quarter of 2007 were $25.2 million, up from $24.2 million in the third quarter of 2006, although down from $27.2 million in the second quarter of 2007. The increase in the third quarter of this year over the prior year quarter was due primarily to a $0.4 million increase in salaries expense and a $0.4 million increase in information technology costs associated with the Company's migration from its current core processing mainframe technology to a system that has both greater capacity and flexibility. The reduction in operating expenses in the third quarter of 2007, compared to the second quarter of 2007, was attributable to $1.6 million in reorganization expenses incurred in the second quarter. The Company's efficiency ratio was 57.1% in the third quarter of 2007, down from 61.4% in the second quarter of 2007 and up slightly from 56.1% in the third quarter of 2006. Excluding reorganization expenses of $1.6 million incurred to date in 2007 , operating expenses were $3.1 million, or 4.2%, higher during the first nine months of 2007 compared to the prior year.
The Company's return on average assets during the third quarter of 2007 was 1.10%, up from 1.00% in the second quarter of 2007 but down from 1.20% in the third
quarter of 2006. At September 30, 2007, the Company's book value stood at $21.04 per share versus $20.70 per share at September 30, 2006. The decline in return on assets resulted in a slight decline in return on average equity to 8.4% in the third quarter of 2007 from 9.0% in the third quarter of 2006.
During the third quarter of 2007, the Company repurchased 412,500 shares of its common stock at an average price of $23.04 per share; bringing total share repurchases for the year 2007 to 885,300 shares. The Company can purchase up to 137,700 additional shares prior to seeking additional authorizations for repurchases from its Board of Directors.
Chemical Financial Corporation is the second-largest bank holding company headquartered in Michigan. The Company operates through a single subsidiary bank, Chemical Bank, with 129 banking offices spread over 31 counties in the lower peninsula of Michigan. At September 30, 2007, the Company had total assets of $3.82 billion. Chemical Financial Corporation common stock trades on The Nasdaq Stock Market under the symbol CHFC and is one of the issues comprising the Nasdaq Global Select Market.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy, and Chemical Financial Corporation itself. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "judgment," "plans," "predicts," "projects," "should," "will," variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Chemical Financial Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a resu lt of new information, future events or otherwise.
Risk factors include, but are not limited to, the risk factors described in Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, 2006; the
timing and level of asset growth; changes in banking laws and regulations; changes in tax laws; changes in prices, levies and assessments; the impact of technological advances and issues; governmental and regulatory policy changes; opportunities for acquisitions and the effective completion of acquisitions and integration of acquired entities; the possibility that anticipated cost savings and revenue enhancements from acquisitions, restructurings, reorganizations and bank consolidations may not be realized at amounts projected, at all or within expected time frames; and the local and global effects of the ongoing war on terrorism and other military actions, including actions in Iraq. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
Chemical Financial Corporation Announces Third Quarter Operating Results |
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation
| September 30 |
| December 31 |
| September 30 |
| |||
Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash due from banks | $ | 99,465 |
| $ | 135,544 |
| $ | 87,430 |
|
Federal funds sold |
| 88,300 |
|
| 49,500 |
|
| 86,500 |
|
Interest-bearing deposits with unaffiliated banks |
| 15,226 |
|
| 5,712 |
|
| 5,230 |
|
|
|
|
|
|
|
|
|
|
|
Investment securities - available for sale |
| 533,611 |
|
| 520,867 |
|
| 537,449 |
|
Investment securities - held to maturity |
| 98,342 |
|
| 94,564 |
|
| 100,980 |
|
Other securities |
| 22,135 |
|
| 22,131 |
|
| 23,368 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
| 7,708 |
|
| 5,667 |
|
| 29,578 |
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
Commercial loans |
| 534,503 |
|
| 545,591 |
|
| 539,349 |
|
Real estate commercial loans |
| 736,443 |
|
| 726,554 |
|
| 725,988 |
|
Real estate construction loans |
| 138,199 |
|
| 145,933 |
|
| 162,762 |
|
Real estate residential loans |
| 840,694 |
|
| 835,263 |
|
| 820,798 |
|
Consumer loans |
| 565,140 |
|
| 554,319 |
|
| 568,935 |
|
Total Loans |
| 2,814,979 |
|
| 2,807,660 |
|
| 2,817,832 |
|
Less: Allowance for loan losses |
| 38,386 |
|
| 34,098 |
|
| 35,348 |
|
Net Loans |
| 2,776,593 |
|
| 2,773,562 |
|
| 2,782,484 |
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment |
| 48,293 |
|
| 49,475 |
|
| 47,559 |
|
Goodwill |
| 69,908 |
|
| 70,129 |
|
| 71,369 |
|
Other intangible assets |
| 7,324 |
|
| 8,777 |
|
| 9,193 |
|
Interest receivable and other assets |
| 55,857 |
|
| 53,319 |
|
| 58,901 |
|
Total Assets | $ | 3,822,762 |
| $ | 3,789,247 |
| $ | 3,840,041 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits | $ | 524,522 |
| $ | 551,177 |
| $ | 524,373 |
|
Interest-bearing deposits |
| 2,442,692 |
|
| 2,346,908 |
|
| 2,432,561 |
|
Total Deposits |
| 2,967,214 |
|
| 2,898,085 |
|
| 2,956,934 |
|
Interest payable and other liabilities |
| 23,285 |
|
| 29,235 |
|
| 23,288 |
|
Short-term borrowings |
| 203,322 |
|
| 208,969 |
|
| 196,451 |
|
Federal Home Loan Bank advances - long-term |
| 125,049 |
|
| 145,072 |
|
| 150,072 |
|
Total Liabilities |
| 3,318,870 |
|
| 3,281,361 |
|
| 3,326,745 |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
Common stock, $1 par value per share |
| 23,952 |
|
| 24,828 |
|
| 24,799 |
|
Surplus |
| 347,569 |
|
| 368,554 |
|
| 367,991 |
|
Retained earnings |
| 138,817 |
|
| 123,454 |
|
| 126,128 |
|
Accumulated other comprehensive loss |
| (6,446 | ) |
| (8,950 | ) |
| (5,622 | ) |
Total Shareholders' Equity |
| 503,892 |
|
| 507,886 |
|
| 513,296 |
|
Total Liabilities and Shareholders' Equity | $ | 3,822,762 |
| $ | 3,789,247 |
| $ | 3,840,041 |
|
Chemical Financial Corporation Announces Third Quarter Operating Results |
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation
| Three Months Ended |
| Nine Months Ended | ||||||||
(In thousands, except per share data) | 2007 |
| 2006 |
| 2007 |
| 2006 | ||||
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans | $ | 48,346 |
| $ | 47,843 |
| $ | 143,850 |
| $ | 137,027 |
Interest on investment securities: |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
| 6,299 |
|
| 6,006 |
|
| 18,667 |
|
| 18,524 |
Tax-exempt |
| 688 |
|
| 661 |
|
| 2,018 |
|
| 1,892 |
Dividends on other securities |
| 182 |
|
| 178 |
|
| 755 |
|
| 867 |
Interest on federal funds sold |
| 1,433 |
|
| 785 |
|
| 4,495 |
|
| 2,357 |
Interest on deposits with unaffiliated banks |
| 209 |
|
| 83 |
|
| 383 |
|
| 557 |
Total Interest Income |
| 57,157 |
|
| 55,556 |
|
| 170,168 |
|
| 161,224 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
| 21,037 |
|
| 18,016 |
|
| 62,290 |
|
| 49,586 |
Interest on short-term borrowings |
| 1,957 |
|
| 2,947 |
|
| 5,731 |
|
| 6,384 |
Interest on Federal Home Loan Bank advances - long-term |
| 1,690 |
|
| 1,854 |
|
| 5,480 |
|
| 5,707 |
Total Interest Expense |
| 24,684 |
|
| 22,817 |
|
| 73,501 |
|
| 61,677 |
Net Interest Income |
| 32,473 |
|
| 32,739 |
|
| 96,667 |
|
| 99,547 |
Provision for loan losses |
| 2,900 |
|
| 1,750 |
|
| 7,025 |
|
| 2,610 |
Net Interest Income after |
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses |
| 29,573 |
|
| 30,989 |
|
| 89,642 |
|
| 96,937 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
| 5,039 |
|
| 5,308 |
|
| 15,243 |
|
| 15,761 |
Trust and investment services revenue |
| 2,034 |
|
| 1,745 |
|
| 6,221 |
|
| 5,844 |
Other charges and fees for customer services |
| 2,393 |
|
| 2,308 |
|
| 7,211 |
|
| 6,695 |
Mortgage banking revenue |
| 577 |
|
| 476 |
|
| 1,647 |
|
| 1,389 |
Investment securities gains |
| - |
|
| - |
|
| 4 |
|
| - |
Other |
| 1,014 |
|
| 59 |
|
| 2,130 |
|
| 557 |
Total Noninterest Income |
| 11,057 |
|
| 9,896 |
|
| 32,456 |
|
| 30,246 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
| 14,463 |
|
| 13,984 |
|
| 44,975 |
|
| 42,586 |
Occupancy |
| 2,361 |
|
| 2,270 |
|
| 7,721 |
|
| 7,289 |
Equipment |
| 2,228 |
|
| 2,169 |
|
| 6,913 |
|
| 6,702 |
Other |
| 6,118 |
|
| 5,773 |
|
| 19,540 |
|
| 17,816 |
Total Operating Expenses |
| 25,170 |
|
| 24,196 |
|
| 79,149 |
|
| 74,393 |
Income Before Income Taxes |
| 15,460 |
|
| 16,689 |
|
| 42,949 |
|
| 52,790 |
Provision for federal income taxes |
| 4,850 |
|
| 5,199 |
|
| 13,786 |
|
| 17,174 |
Net Income | $ | 10,610 |
| $ | 11,490 |
| $ | 29,163 |
| $ | 35,616 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic | $ | 0.44 |
| $ | 0.46 |
| $ | 1.19 |
| $ | 1.42 |
Diluted |
| 0.44 |
|
| 0.46 |
|
| 1.19 |
|
| 1.42 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per share | $ | 0.285 |
| $ | 0.275 |
| $ | 0.855 |
| $ | 0.825 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
| 24,091 |
|
| 24,800 |
|
| 24,520 |
|
| 24,957 |
Diluted |
| 24,098 |
|
| 24,829 |
|
| 24,532 |
|
| 24,992 |
Chemical Financial Corporation Announces Third Quarter Operating Results |
Financial Summary (Unaudited)
Chemical Financial Corporation
| Three Months Ended |
| Nine Months Ended | ||||||||
(Dollars in thousands) | 2007 |
| 2006 |
| 2007 |
| 2006 | ||||
Average Balances |
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ | 3,812,654 |
| $ | 3,785,971 |
| $ | 3,799,670 |
| $ | 3,757,921 |
Total interest-earning assets |
| 3,576,667 |
|
| 3,537,591 |
|
| 3,565,767 |
|
| 3,518,028 |
Total loans |
| 2,813,746 |
|
| 2,807,848 |
|
| 2,803,141 |
|
| 2,745,405 |
Total deposits |
| 2,957,407 |
|
| 2,846,603 |
|
| 2,936,466 |
|
| 2,853,044 |
Total interest-bearing liabilities |
| 2,740,812 |
|
| 2,717,902 |
|
| 2,732,713 |
|
| 2,690,711 |
Total shareholders' equity |
| 499,353 |
|
| 508,068 |
|
| 507,146 |
|
| 508,173 |
| Three Months Ended |
| Nine Months Ended | ||||||||
| 2007 |
| 2006 |
| 2007 |
| 2006 | ||||
Key Ratios (annualized where applicable) |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable equivalent basis) |
| 3.68% |
|
| 3.74% |
|
| 3.68% |
|
| 3.81% |
Efficiency ratio |
| 57.1% |
|
| 56.1% |
|
| 60.5% |
|
| 56.7% |
Return on average assets |
| 1.10% |
|
| 1.20% |
|
| 1.03% |
|
| 1.27% |
Return on average shareholders' equity |
| 8.4% |
|
| 9.0% |
|
| 7.7% |
|
| 9.4% |
Average shareholders' equity as a |
|
|
|
|
|
|
|
|
|
|
|
percent of average assets |
| 13.1% |
|
| 13.4% |
|
| 13.3% |
|
| 13.5% |
Tangible shareholders' equity as a |
|
|
|
|
|
|
|
|
|
|
|
percent of total assets |
|
|
|
|
|
|
| 11.4% |
|
| 11.5% |
Total risk-based capital ratio |
|
|
|
|
|
|
| 17.1% |
|
| 17.3% |
| September 30 |
| June 30 |
| March 31 |
| December 31 |
| September 30 | |||||
Credit Quality Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans | $ | 40,341 |
| $ | 36,119 |
| $ | 28,748 |
| $ | 20,239 |
| $ | 23,113 |
Loans 90 or more days past due |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and still accruing |
| 13,282 |
|
| 11,704 |
|
| 6,441 |
|
| 6,671 |
|
| 9,505 |
Total nonperforming loans |
| 53,623 |
|
| 47,823 |
|
| 35,189 |
|
| 26,910 |
|
| 32,618 |
Repossessed assets (RA) |
| 9,164 |
|
| 9,177 |
|
| 9,250 |
|
| 8,852 |
|
| 10,062 |
Total nonperforming assets |
| 62,787 |
|
| 57,000 |
|
| 44,439 |
|
| 35,762 |
|
| 42,680 |
Net loan charge-offs (year-to-date) |
| 2,737 |
|
| 1,969 |
|
| 707 |
|
| 5,650 |
|
| 1,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percent of total loans |
| 1.36% |
|
| 1.30% |
|
| 1.25% |
|
| 1.21% |
|
| 1.25% |
Allowance for loan losses as a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percent of nonperforming loans |
| 72% |
|
| 76% |
|
| 100% |
|
| 127% |
|
| 108% |
Nonperforming loans as a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percent of total loans |
| 1.90% |
|
| 1.71% |
|
| 1.26% |
|
| 0.96% |
|
| 1.16% |
Nonperforming assets as a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percent of total loans plus RA |
| 2.22% |
|
| 2.03% |
|
| 1.58% |
|
| 1.27% |
|
| 1.51% |
Nonperforming assets as a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
percent of total assets |
| 1.64% |
|
| 1.51% |
|
| 1.16% |
|
| 0.94% |
|
| 1.11% |
Net loan charge-offs as a percent of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average loans (year-to-date, annualized) |
| 0.13% |
|
| 0.14% |
|
| 0.10% |
|
| 0.20% |
|
| 0.09% |
| September 30 |
| June 30 |
| March 31 |
| December 31 |
| September 30 | |||||
Additional Data - Intangibles |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill | $ | 69,908 |
| $ | 69,908 |
| $ | 69,908 |
| $ | 70,129 |
| $ | 71,369 |
Core deposits and other intangibles |
| 5,024 |
|
| 5,455 |
|
| 5,886 |
|
| 6,379 |
|
| 6,660 |
Mortgage servicing rights (MSR) |
| 2,300 |
|
| 2,302 |
|
| 2,299 |
|
| 2,398 |
|
| 2,533 |
Amortization of intangibles (quarter only) |
| 651 |
|
| 665 |
|
| 734 |
|
| 857 |
|
| 618 |
Chemical Financial Corporation Announces Third Quarter Operating Results |
Nonperforming Assets (Unaudited)
Chemical Financial Corporation
| September 30 |
| June 30 |
| March 31 |
| December 31 |
| September 30 | |||||
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial | $ | 6,735 |
| $ | 5,810 |
| $ | 4,891 |
| $ | 4,203 |
| $ | 4,124 |
Real estate commercial |
| 19,664 |
|
| 19,163 |
|
| 14,621 |
|
| 9,612 |
|
| 11,329 |
Real estate construction-commercial |
| 4,573 |
|
| 4,483 |
|
| 3,283 |
|
| 2,552 |
|
| 2,017 |
Real estate residential |
| 7,244 |
|
| 4,967 |
|
| 4,660 |
|
| 2,887 |
|
| 4,455 |
Consumer |
| 2,125 |
|
| 1,696 |
|
| 1,293 |
|
| 985 |
|
| 1,188 |
Total nonaccrual loans |
| 40,341 |
|
| 36,119 |
|
| 28,748 |
|
| 20,239 |
|
| 23,113 |
Accruing loans contractually past due |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| 1,867 |
|
| 1,564 |
|
| 2,030 |
|
| 1,693 |
|
| 3,151 |
Real estate commercial |
| 5,367 |
|
| 5,561 |
|
| 2,342 |
|
| 2,232 |
|
| 3,081 |
Real estate construction-commercial |
| 1,076 |
|
| 884 |
|
| - |
|
| 174 |
|
| - |
Real estate residential |
| 3,918 |
|
| 2,352 |
|
| 1,350 |
|
| 1,158 |
|
| 1,857 |
Consumer |
| 1,054 |
|
| 1,343 |
|
| 719 |
|
| 1,414 |
|
| 1,416 |
Total accruing loans contractually |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
| 53,623 |
|
| 47,823 |
|
| 35,189 |
|
| 26,910 |
|
| 32,618 |
Other real estate and repossessed assets |
| 9,164 |
|
| 9,177 |
|
| 9,250 |
|
| 8,852 |
|
| 10,062 |
Total nonperforming assets | $ | 62,787 |
| $ | 57,000 |
| $ | 44,439 |
| $ | 35,762 |
| $ | 42,680 |
Chemical Financial Corporation Announces Third Quarter Operating Results |
Summary of Loan Loss Experience (Unaudited)
Chemical Financial Corporation
| Three Months Ended |
| |||||||||||||
| September 30 |
| June 30 |
| March 31 |
| December 31 |
| September 30 |
| |||||
Allowance for loan losses at beginning |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans charged off: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| (208 | ) |
| (435 | ) |
| (429 | ) |
| (1,056 | ) |
| (52 | ) |
Real estate commercial |
| - |
|
| (186 | ) |
| (74 | ) |
| (964 | ) |
| - |
|
Real estate construction |
| (134 | ) |
| (221 | ) |
| (67 | ) |
| (1,201 | ) |
| - |
|
Real estate residential |
| (64 | ) |
| (96 | ) |
| (18 | ) |
| (108 | ) |
| (101 | ) |
Consumer |
| (501 | ) |
| (488 | ) |
| (350 | ) |
| (677 | ) |
| (475 | ) |
Total loan charge-offs |
| (907 | ) |
| (1,426 | ) |
| (938 | ) |
| (4,006 | ) |
| (628 | ) |
Recoveries of loans previously charged off: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
| 18 |
|
| 42 |
|
| 99 |
|
| 52 |
|
| 58 |
|
Real estate commercial |
| 19 |
|
| - |
|
| 1 |
|
| 1 |
|
| 2 |
|
Real estate residential |
| 4 |
|
| 1 |
|
| 1 |
|
| - |
|
| 1 |
|
Consumer |
| 98 |
|
| 121 |
|
| 130 |
|
| 113 |
|
| 127 |
|
Total loan recoveries |
| 139 |
|
| 164 |
|
| 231 |
|
| 166 |
|
| 188 |
|
Net loan charge-offs |
| (768 | ) |
| (1,262 | ) |
| (707 | ) |
| (3,840 | ) |
| (440 | ) |
Provision for loan losses |
| 2,900 |
|
| 2,500 |
|
| 1,625 |
|
| 2,590 |
|
| 1,750 |
|
Allowance of branches acquired |
| - |
|
| - |
|
| - |
|
| - |
|
| 400 |
|
Allowance for loan losses at end of period | $ | 38,386 |
| $ | 36,254 |
| $ | 35,016 |
| $ | 34,098 |
| $ | 35,348 |
|
Chemical Financial Corporation Announces Third Quarter Operating Results |
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation
| 3rd Qtr. |
| 2nd Qtr. |
| 1st Qtr. |
| 4th Qtr. |
| 3rd Qtr. |
Summary of Operations |
|
|
|
|
|
|
|
|
|
Interest income | $57,157 |
| $57,086 |
| $55,925 |
| $56,199 |
| $55,556 |
Interest expense | 24,684 |
| 24,666 |
| 24,151 |
| 23,510 |
| 22,817 |
Net interest income | 32,473 |
| 32,420 |
| 31,774 |
| 32,689 |
| 32,739 |
Provision for loan losses | 2,900 |
| 2,500 |
| 1,625 |
| 2,590 |
| 1,750 |
Net interest income after provision |
|
|
|
|
|
|
|
|
|
for loan losses | 29,573 |
| 29,920 |
| 30,149 |
| 30,099 |
| 30,989 |
Noninterest income | 11,057 |
| 11,356 |
| 10,043 |
| 9,901 |
| 9,896 |
Noninterest expense | 25,170 |
| 27,221 |
| 26,758 |
| 23,481 |
| 24,196 |
Income taxes | 4,850 |
| 4,543 |
| 4,393 |
| 5,291 |
| 5,199 |
Net income | $10,610 |
| $9,512 |
| $9,041 |
| $11,228 |
| $11,490 |
|
|
|
|
|
|
|
|
|
|
Per Common Share Data |
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
Basic | $0.44 |
| $0.39 |
| $0.36 |
| $0.45 |
| $0.46 |
Diluted | 0.44 |
| 0.39 |
| 0.36 |
| 0.45 |
| 0.46 |
Cash dividends | 0.285 |
| 0.285 |
| 0.285 |
| 0.275 |
| 0.275 |
Book value | 21.04 |
| 20.79 |
| 20.86 |
| 20.46 |
| 20.70 |