Exhibit 99.1
For further information:
Lori A. Gwizdala, CFO
Chemical Financial Corporation
989 839 5358
For Immediate Release
Chemical Financial Corporation Reports Second Quarter 2008 Earnings
Earnings Per Share Increase 3 Percent
MIDLAND, Mich., July 28, 2008 -- Chemical Financial Corporation (Nasdaq:CHFC) today announced 2008 second quarter net income of $9.6 million, or $0.40 per diluted share, versus net income of $9.5 million, or $0.39 per diluted share, in the second quarter of 2007.
Net income was $19.3 million, or $0.81 per diluted share, for the six months ended June 30, 2008, compared to net income of $18.6 million, or $0.75 per diluted share, for the six months ended June 30, 2007.
"We are pleased with our quarterly earnings performance especially in light of the challenges posed by the economy. An increase in net interest income resulting from a higher net interest margin was augmented by a one time gain in the amount of $1.7 million from the sale of MasterCard stock during the second quarter. These increases were partially offset by continued weaknesses in credit quality which resulted in a substantial increase in the provision for loan losses and other credit related costs," said David B. Ramaker, Chairman, President and Chief Executive Officer of Chemical Financial Corporation. "We have not yet seen sustained evidence of a recovery in the Michigan economy, and in view of the struggling housing industry, the low level of consumer confidence and the U.S. automotive industry facing unprecedented challenges, it is difficult to foresee any economic turnaround in the short term. However, we are confident that our increased net interest income, strong balance sheet, healthy capital position and conservative credit culture will allow us to not only weather the storm, but capitalize on any opportunities," added Ramaker.
Net interest income was $35.6 million in the second quarter of 2008, an increase of $3.2 million, or 9.9 percent, from second quarter 2007 net interest income of $32.4 million, and an increase of $1.2 million, or 3.6 percent, from first quarter 2008 net interest income of $34.4 million. The increases in net interest income were attributable primarily to the increases in net interest margin. The net interest margin (on a tax-equivalent basis) in the second quarter of 2008 was 4.11 percent, up substantially from 3.70 percent in the second quarter of 2007, and up from 3.94 percent in the first quarter of 2008. The increases in net interest margin were primarily attributable to decreases in rates paid on interest-bearing liabilities exceeding decreases in rates earned on interest-earning assets, as deposits repriced more rapidly than loans in the falling interest rate environment experienced in the past 12 months.
Total assets were $3.74 billion at June 30, 2008, down slightly from $3.75 billion at December 31, 2007 and down from $3.78 billion at June 30, 2007. At June 30, 2008, total loans were $2.85 billion, versus $2.80 billion at December 31, 2007 and June 30, 2007. Federal funds sold were $8 million at June 30, 2008, down from $58 million at December 31, 2007 and $86 million at June 30, 2007. During the first six months of 2008, the Company utilized excess liquidity to fund approximately $51 million in loan growth. Investment securities were $589 million at June 30, 2008, down from $595 million at December 31, 2007 and down from $621 million at June 30, 2007.
Total deposits were $2.89 billion at June 30, 2008, up slightly from $2.88 billion at December 31, 2007, although down from $2.94 billion at June 30, 2007. Long-term wholesale borrowings, comprised of Federal Home Loan Bank advances, totaled $130 million at June 30, 2008, down $20 million, or 13.3 percent, from $150 million at December 31, 2007 and down $5 million, or 3.7 percent, from $135 million at June 30, 2007.
The provision for loan losses was $6.5 million in the second quarter of 2008, compared to $2.7 million in the first quarter of 2008 and $2.5 million in the second quarter of 2007. Net loan charge-offs were $6.5 million in the second quarter of 2008, up substantially from $2.5 million in the first quarter of 2008 and $1.3 million in the second quarter of 2007. The increases in the provision for loan losses in the second quarter of 2008, as compared to the first quarter of 2008
- -2-
and the previous year, were due primarily to increases in commercial, real estate commercial and real estate construction loan charge-offs.
At June 30, 2008, nonperforming assets totaled $87.8 million, up from $84.6 million at March 31, 2008 and up from $57.0 million at June 30, 2007. Nonperforming loans were $71.9 million at June 30, 2008 and March 31, 2008, with the increase in nonperforming assets in the second quarter of 2008 occurring in the other real estate component of nonperforming assets. At June 30, 2008, nonperforming loans as a percentage of total loans were 2.52 percent, down from 2.58 percent at March 31, 2008 and up from 1.71 percent at June 30, 2007.
The allowance for loan losses of $39.7 million at June 30, 2008 was 1.39 percent of total loans, down from 1.42 percent of total loans at March 31, 2008 and up from 1.30 percent of total loans at June 30, 2007. The allowance for loan losses as a percent of nonperforming loans was 55 percent at both June 30, 2008 and March 31, 2008, compared to 76 percent at June 30, 2007. The Company's nonperforming loans at June 30, 2008 included commercial, real estate commercial and residential development construction loans, totaling $28 million, 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.
Total noninterest income was $12.0 million in the second quarter of 2008, up $0.6 million, or 5.3 percent, from $11.4 million in the second quarter of 2007. The increase over the prior year was attributable to the realization of a $1.7 million gain on the sale of MasterCard stock. In comparison, in the second quarter of 2007, the Company recognized $0.9 million in gains on the sales of a previously consolidated branch office location and a parcel of excess land contiguous to an existing branch office.
Operating expenses in the second quarter of 2008 were $26.9 million, down $0.3 million, or 1.2 percent, from $27.2 million in the second quarter of 2007. Operating expenses in the second quarter of 2007 included $1.6 million of reorganization (compensation-related) expenses. Excluding these reorganization expenses, operating expenses in the second quarter of 2008 were up $1.3 million, or 5 percent, as compared to the second quarter of 2007. This increase in
- -3-
operating expenses was largely attributable to a customer merchant credit card loss of $0.6 million. The Company's efficiency ratio was 55.8 percent in the second quarter of 2008, down from 60.3 percent in the first quarter of 2008 and down from 61.4 percent in the second quarter of 2007. The decreases in the efficiency ratio were primarily attributable to the increase in net interest income.
The Company's return on average assets during the second quarter of 2008 was 1.03 percent, the same as in the first quarter of 2008 and up slightly from 1.00 percent in the second quarter of 2007. At June 30, 2008, the Company's book value stood at $21.58 per share versus $20.79 per share at June 30, 2007. The increase in return on assets resulted in a slight increase in return on average equity to 7.6 percent in the second quarter of 2008 from 7.5 percent in the second quarter of 2007.
Chemical Financial Corporation is the third-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 June 30, 2008, the Company had total assets of $3.74 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.
Safe Harbor Statement
This report 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. Management's determination of the provision and allowance for loan losses involves judgments that are inherently forward-looking. 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. Che mical Financial Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
- -4-
Risk factors include, but are not limited to, the risk factors described in Item 1A in Chemical Financial Corporation's Annual Report on Form 10-K for the year ended December 31, 2007, 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 fully or at all or within expected time frames; the local and global effects of the ongoing war on terrorism and other military actions, including actions in Iraq; and current uncertainties and fluctuations in the financial markets and stocks of financial services providers due to concerns about cred it availability and concerns about the Michigan economy in particular. 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.
- -5-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| June 30
2008
|
| December 31
2007
|
| June 30
2007
| |
Assets: | | | | | | | | | |
Cash and cash equivalents: | | | | | | | | | |
Cash and cash due from banks | $ | 110,050 | | $ | 125,285 | | $ | 103,910 | |
Federal funds sold | | 8,000 | | | 58,000 | | | 86,200 | |
Interest-bearing deposits with unaffiliated banks |
| 4,827
| |
| 6,228
| |
| 5,487
| |
Total cash and cash equivalents | | 122,877 | | | 189,513 | | | 195,597 | |
Investment securities: | | | | | | | | | |
Available for sale | | 477,910 | | | 503,271 | | | 513,954 | |
Held to maturity |
| 111,579
| |
| 91,243
| |
| 106,792
| |
Total investment securities | | 589,489 | | | 594,514 | | | 620,746 | |
Other securities | | 22,142 | | | 22,135 | | | 22,135 | |
Loans held for sale | | 7,571 | | | 7,883 | | | 6,560 | |
| | | | | | | | | |
Loans: | | | | | | | | | |
Commercial | | 539,086 | | | 515,319 | | | 522,535 | |
Real estate commercial | | 776,505 | | | 760,399 | | | 735,510 | |
Real estate construction | | 130,079 | | | 134,828 | | | 132,900 | |
Real estate residential | | 824,588 | | | 838,545 | | | 845,432 | |
Consumer |
| 580,203
| |
| 550,343
| |
| 559,955
| |
Total Loans | | 2,850,461 | | | 2,799,434 | | | 2,796,332 | |
Allowance for loan losses |
| (39,664
| )
|
| (39,422
| )
|
| (36,254
| )
|
Net Loans | | 2,810,797 | | | 2,760,012 | | | 2,760,078 | |
| | | | | | | | | |
Premises and equipment | | 49,164 | | | 49,930 | | | 48,313 | |
Goodwill | | 69,908 | | | 69,908 | | | 69,908 | |
Other intangible assets | | 5,963 | | | 6,876 | | | 7,757 | |
Interest receivable and other assets |
| 59,943
| |
| 53,542
| |
| 53,820
| |
Total Assets | $
| 3,737,854
| | $
| 3,754,313
| | $
| 3,784,914
| |
| | | | | | | | | |
Liabilities: | | | | | | | | | |
Deposits: | | | | | | | | | |
Noninterest-bearing | $ | 552,550 | | $ | 535,705 | | $ | 544,555 | |
Interest-bearing |
| 2,334,409
| |
| 2,339,884
| |
| 2,391,323
| |
Total Deposits | | 2,886,959 | | | 2,875,589 | | | 2,935,878 | |
Interest payable and other liabilities | | 21,207 | | | 22,848 | | | 22,156 | |
Short-term borrowings | | 185,472 | | | 197,363 | | | 185,357 | |
Federal Home Loan Bank advances - long-term |
| 130,025
| |
| 150,049
| |
| 135,049
| |
Total Liabilities | | 3,223,663 | | | 3,245,849 | | | 3,278,440 | |
| | | | | | | | | |
Shareholders' Equity: | | | | | | | | | |
Common stock, $1 par value per share | | 23,823 | | | 23,815 | | | 24,365 | |
Surplus | | 345,117 | | | 344,579 | | | 356,532 | |
Retained earnings | | 147,092 | | | 141,867 | | | 135,054 | |
Accumulated other comprehensive loss |
| (1,841
| )
|
| (1,797
| )
|
| (9,477
| )
|
Total Shareholders' Equity |
| 514,191
| |
| 508,464
| |
| 506,474
| |
Total Liabilities and Shareholders' Equity | $
| 3,737,854
| | $
| 3,754,313
| | $
| 3,784,914
| |
- -6-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation
| Three Months Ended
June 30 | | Six Months Ended
June 30 |
(In thousands, except per share data)
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Interest Income: | | | | | | | | | | | |
Interest and fees on loans | $ | 44,491 | | $ | 48,138 | | $ | 90,061 | | $ | 95,504 |
Interest on investment securities: | | | | | | | | | | | |
Taxable | | 5,473 | | | 6,233 | | | 11,312 | | | 12,368 |
Tax-exempt | | 687 | | | 666 | | | 1,382 | | | 1,330 |
Dividends on other securities | | 390 | | | 357 | | | 584 | | | 573 |
Interest on federal funds sold | | 412 | | | 1,617 | | | 1,430 | | | 3,062 |
Interest on deposits with unaffiliated banks |
| 55
| |
| 75
| |
| 176
| |
| 174
|
Total Interest Income | | 51,508 | | | 57,086 | | | 104,945 | | | 113,011 |
| | | | | | | | | | | |
Interest Expense: | | | | | | | | | | | |
Interest on deposits | | 13,734 | | | 20,917 | | | 30,061 | | | 41,253 |
Interest on short-term borrowings | | 501 | | | 1,866 | | | 1,460 | | | 3,774 |
Interest on Federal Home Loan Bank advances - long-term |
| 1,637
| |
| 1,883
| |
| 3,402
| |
| 3,790
|
Total Interest Expense |
| 15,872
| |
| 24,666
| |
| 34,923
| |
| 48,817
|
Net Interest Income | | 35,636 | | | 32,420 | | | 70,022 | | | 64,194 |
Provision for loan losses |
| 6,500
| |
| 2,500
| |
| 9,200
| |
| 4,125
|
Net Interest Income after | | | | | | | | | | | |
Provision for Loan Losses | | 29,136 | | | 29,920 | | | 60,822 | | | 60,069 |
| | | | | | | | | | | |
Noninterest Income: | | | | | | | | | | | |
Service charges on deposit accounts | | 5,007 | | | 5,236 | | | 9,781 | | | 10,204 |
Trust and investment services revenue | | 2,090 | | | 2,087 | | | 4,117 | | | 4,187 |
Other charges and fees for customer services | | 2,461 | | | 2,376 | | | 4,684 | | | 4,818 |
Mortgage banking revenue | | 524 | | | 628 | | | 1,060 | | | 1,070 |
Investment securities gains | | 1,716 | | | - | | | 1,716 | | | 4 |
Other |
| 161
| |
| 1,029
| |
| 181
| |
| 1,116
|
Total Noninterest Income | | 11,959 | | | 11,356 | | | 21,539 | | | 21,399 |
| | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | |
Salaries, wages and employee benefits | | 14,810 | | | 15,773 | | | 29,289 | | | 30,512 |
Occupancy | | 2,360 | | | 2,771 | | | 5,130 | | | 5,360 |
Equipment | | 2,133 | | | 2,207 | | | 4,320 | | | 4,356 |
Other |
| 7,582
| |
| 6,470
| |
| 14,990
| |
| 13,751
|
Total Operating Expenses |
| 26,885
| |
| 27,221
| |
| 53,729
| |
| 53,979
|
Income Before Income Taxes | | 14,210 | | | 14,055 | | | 28,632 | | | 27,489 |
Provision for federal income taxes |
| 4,600
| |
| 4,543
| |
| 9,351
| |
| 8,936
|
Net Income | $
| 9,610
| | $
| 9,512
| | $
| 19,281
| | $
| 18,553
|
| | | | | | | | | | | |
Net income per share: | | | | | | | | | | | |
Basic | $ | 0.40 | | $ | 0.39 | | $ | 0.81 | | $ | 0.75 |
Diluted | | 0.40 | | | 0.39 | | | 0.81 | | | 0.75 |
| | | | | | | | | | | |
Cash dividends per share | | 0.295 | | | 0.285 | | | 0.590 | | | 0.570 |
| | | | | | | | | | | |
Average shares outstanding: | | | | | | | | | | | |
Basic | | 23,823 | | | 24,644 | | | 23,823 | | | 24,738 |
Diluted | | 23,831 | | | 24,655 | | | 23,829 | | | 24,752 |
- -7-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Financial Summary (Unaudited)
Chemical Financial Corporation
| Three Months Ended
June 30 | | Six Months Ended
June 30 |
(Dollars in thousands)
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Average Balances | | | | | | | | | | | |
Total assets | $ | 3,757,238 | | $ | 3,797,749 | | $ | 3,774,361 | | $ | 3,793,283 |
Total interest-earning assets | | 3,530,750 | | | 3,566,517 | | | 3,546,177 | | | 3,560,228 |
Total loans | | 2,827,260 | | | 2,796,902 | | | 2,813,105 | | | 2,797,752 |
Total deposits | | 2,910,357 | | | 2,931,977 | | | 2,921,693 | | | 2,925,820 |
Total interest-bearing liabilities | | 2,680,550 | | | 2,729,085 | | | 2,708,823 | | | 2,728,594 |
Total shareholders' equity | | 511,926 | | | 510,902 | | | 510,079 | | | 511,108 |
| Three Months Ended
June 30 | | Six Months Ended
June 30 |
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Key Ratios (annualized where applicable) | | | | | | | | | | | |
Net interest margin (taxable equivalent basis) | | 4.11% | | | 3.70% | | | 4.02% | | | 3.68% |
Efficiency ratio | | 55.8% | | | 61.4% | | | 58.0% | | | 62.3% |
Return on average assets | | 1.03% | | | 1.00% | | | 1.03% | | | 0.99% |
Return on average shareholders' equity | | 7.6% | | | 7.5% | | | 7.6% | | | 7.3% |
Average shareholders' equity as a | | | | | | | | | | | |
percent of average assets | | 13.6% | | | 13.5% | | | 13.5% | | | 13.5% |
Tangible shareholders' equity as a | | | | | | | | | | | |
percent of total assets | | | | | | | | 12.0% | | | 11.6% |
Total risk-based capital ratio | | | | | | | | 17.3% | | | 17.5% |
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
| June 30
2007
|
Credit Quality Statistics | | | | | | | | | | | | | | |
Nonaccrual loans | $ | 61,635 | | $ | 61,360 | | $ | 55,596 | | $ | 40,341 | | $ | 36,119 |
Loans 90 or more days past due | | | | | | | | | | | | | | |
and still accruing | | 10,288 | | | 10,570 | | | 7,764 | | | 13,282 | | | 11,704 |
Total nonperforming loans | | 71,923 | | | 71,930 | | | 63,360 | | | 53,623 | | | 47,823 |
Repossessed assets (RA) | | 15,897 | | | 12,664 | | | 11,132 | | | 9,164 | | | 9,177 |
Total nonperforming assets | | 87,820 | | | 84,594 | | | 74,492 | | | 62,787 | | | 57,000 |
Net loan charge-offs (year-to-date) | | 8,958 | | | 2,460 | | | 6,176 | | | 2,737 | | | 1,969 |
| | | | | | | | | | | | | | |
Allowance for loan losses as a | | | | | | | | | | | | | | |
percent of total loans | | 1.39% | | | 1.42% | | | 1.41% | | | 1.36% | | | 1.30% |
Allowance for loan losses as a | | | | | | | | | | | | | | |
percent of nonperforming loans | | 55% | | | 55% | | | 62% | | | 72% | | | 76% |
Nonperforming loans as a | | | | | | | | | | | | | | |
percent of total loans | | 2.52% | | | 2.58% | | | 2.26% | | | 1.90% | | | 1.71% |
Nonperforming assets as a | | | | | | | | | | | | | | |
percent of total loans plus RA | | 3.06% | | | 3.02% | | | 2.65% | | | 2.22% | | | 2.03% |
Nonperforming assets as a | | | | | | | | | | | | | | |
percent of total assets | | 2.35% | | | 2.23% | | | 1.98% | | | 1.64% | | | 1.51% |
Net loan charge-offs as a percent of | | | | | | | | | | | | | | |
average loans (year-to-date, annualized) | | 0.64% | | | 0.35% | | | 0.22% | | | 0.13% | | | 0.14% |
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
| June 30
2007
|
Additional Data - Intangibles | | | | | | | | | | | | | | |
Goodwill | $ | 69,908 | | $ | 69,908 | | $ | 69,908 | | $ | 69,908 | | $ | 69,908 |
Core deposit intangibles | | 3,609 | | | 4,062 | | | 4,593 | | | 5,024 | | | 5,455 |
Mortgage servicing rights (MSR) | | 2,354 | | | 2,280 | | | 2,283 | | | 2,300 | | | 2,302 |
Amortization of core deposit intangibles
(quarter only) | |
453
| | |
531
| | |
431
| | |
431
| | |
430
|
- -8-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Nonperforming Assets (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
| June 30
2007
|
Nonaccrual loans: | | | | | | | | | | | | | | |
Commercial | $ | 10,918 | | $ | 11,595 | | $ | 10,961 | | $ | 6,735 | | $ | 5,810 |
Real estate commercial | | 17,915 | | | 19,235 | | | 19,672 | | | 19,664 | | | 19,163 |
Real estate construction | | 15,157 | | | 17,206 | | | 12,979 | | | 4,573 | | | 4,483 |
Real estate residential | | 11,955 | | | 9,267 | | | 8,516 | | | 7,244 | | | 4,967 |
Consumer
|
| 5,690
|
|
| 4,057
|
|
| 3,468
|
|
| 2,125
|
|
| 1,696
|
Total nonaccrual loans | | 61,635 | | | 61,360 | | | 55,596 | | | 40,341 | | | 36,119 |
Accruing loans contractually past due
90 days or more as to interest or
principal payments: | | | | | | | | | | | | | | |
Commercial | | 3,130 | | | 1,631 | | | 1,958 | | | 1,867 | | | 1,564 |
Real estate commercial | | 2,948 | | | 2,865 | | | 4,170 | | | 5,367 | | | 5,561 |
Real estate construction | | 676 | | | 392 | | | - | | | 1,076 | | | 884 |
Real estate residential | | 2,746 | | | 4,742 | | | 1,470 | | | 3,918 | | | 2,352 |
Consumer
|
| 788
|
|
| 940
|
|
| 166
|
|
| 1,054
|
|
| 1,343
|
Total accruing loans contractually past
due 90 days or more as to interest
or principal payments
|
|
10,288
|
|
|
10,570
|
|
|
7,764
|
|
|
13,282
|
|
|
11,704
|
Total nonperforming loans | | 71,923 | | | 71,930 | | | 63,360 | | | 53,623 | | | 47,823 |
Other real estate and repossessed assets
|
| 15,897
|
|
| 12,664
|
|
| 11,132
|
|
| 9,164
|
|
| 9,177
|
Total nonperforming assets
| $
| 87,820
|
| $
| 84,594
|
| $
| 74,492
|
| $
| 62,787
|
| $
| 57,000
|
- -9-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Summary of Loan Loss Experience (Unaudited)
Chemical Financial Corporation
| Three Months Ended
| |
(Dollars in thousands)
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
| June 30
2007
|
| March 31
2007
| |
Allowance for loan losses at beginning
of period |
$
|
39,662
| |
$
|
39,422
| |
$
|
38,386
| |
$
|
36,254
| |
$
|
35,016
| |
$
|
34,098
| |
Provision for loan losses | | 6,500 | | | 2,700 | | | 4,475 | | | 2,900 | | | 2,500 | | | 1,625 | |
| | | | | | | | | | | | | | | | | | |
Loans charged off: | | | | | | | | | | | | | | | | | | |
Commercial | | (1,474 | ) | | (591 | ) | | (550 | ) | | (208 | ) | | (435 | ) | | (429 | ) |
Real estate commercial | | (3,373 | ) | | (1,304 | ) | | (1,415 | ) | | - | | | (186 | ) | | (74 | ) |
Real estate construction | | (1,070 | ) | | (16 | ) | | (850 | ) | | (134 | ) | | (221 | ) | | (67 | ) |
Real estate residential | | (358 | ) | | (245 | ) | | (306 | ) | | (64 | ) | | (96 | ) | | (18 | ) |
Consumer
|
| (612
| )
|
| (540
| )
|
| (596
| )
|
| (501
| )
|
| (488
| )
|
| (350
| )
|
Total loan charge-offs | | (6,887 | ) | | (2,696 | ) | | (3,717 | ) | | (907 | ) | | (1,426 | ) | | (938 | ) |
Recoveries of loans previously
charged off: | | | | | | | | | | | | | | | | | | |
Commercial | | 228 | | | 77 | | | 90 | | | 18 | | | 42 | | | 99 | |
Real estate commercial | | 32 | | | 20 | | | 1 | | | 19 | | | - | | | 1 | |
Real estate construction | | - | | | 29 | | | 30 | | | - | | | - | | | - | |
Real estate residential | | 5 | | | 22 | | | 12 | | | 4 | | | 1 | | | 1 | |
Consumer
|
| 124
|
|
| 88
|
|
| 145
|
|
| 98
|
|
| 121
|
|
| 130
| |
Total loan recoveries
|
| 389
|
|
| 236
|
|
| 278
|
|
| 139
|
|
| 164
|
|
| 231
| |
Net loan charge-offs
|
| (6,498
| )
|
| (2,460
| )
|
| (3,439
| )
|
| (768
| )
|
| (1,262
| )
|
| (707
| )
|
Allowance for loan losses at end of
period
|
$
|
39,664
|
|
$
|
39,662
|
|
$
|
39,422
|
|
$
|
38,386
|
|
$
|
36,254
|
|
$
|
35,016
| |
- -10-
Chemical Financial Corporation Announces Second Quarter Operating Results
|
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| 2nd Qtr.
2008
|
| 1st Qtr.
2008
|
| 4th Qtr.
2007
|
| 3rd Qtr.
2007
|
| 2nd Qtr.
2007
|
Summary of Operations | | | | | | | | | |
Interest income | $51,508 | | $53,437 | | $55,726 | | $57,157 | | $57,086 |
Interest expense | 15,872 | | 19,051 | | 22,304 | | 24,684 | | 24,666 |
Net interest income | 35,636 | | 34,386 | | 33,422 | | 32,473 | | 32,420 |
Provision for loan losses | 6,500 | | 2,700 | | 4,475 | | 2,900 | | 2,500 |
Net interest income after provision | | | | | | | | | |
for loan losses | 29,136 | | 31,686 | | 28,947 | | 29,573 | | 29,920 |
Noninterest income | 11,959 | | 9,580 | | 10,832 | | 11,057 | | 11,356 |
Operating expenses | 26,885 | | 26,844 | | 25,522 | | 25,170 | | 27,221 |
Income taxes | 4,600 | | 4,751 | | 4,411 | | 4,850 | | 4,543 |
Net income | $9,610 | | $9,671 | | $9,846 | | $10,610 | | $9,512 |
|
|
|
|
|
|
|
|
|
|
Per Common Share Data | | | | | | | | | |
Net income: | | | | | | | | | |
Basic | $ 0.40 | | $ 0.41 | | $ 0.41 | | $ 0.44 | | $ 0.39 |
Diluted | 0.40 | | 0.41 | | 0.41 | | 0.44 | | 0.39 |
Cash dividends | 0.295 | | 0.295 | | 0.285 | | 0.285 | | 0.285 |
Book value - period-end | 21.58 | | 21.60 | | 21.35 | | 21.04 | | 20.79 |
Market value - period-end | 20.40 | | 23.84 | | 23.79 | | 24.25 | | 25.87 |
- -11-
