EXHIBIT 99.1
Chemical Financial Corporation Reports Third Quarter 2008 Results
MIDLAND, Mich., October 27, 2008 (GLOBE NEWSWIRE) -- Chemical Financial Corporation (Nasdaq:CHFC) today announced a third quarter 2008 net loss of $1.0 million, or $0.04 per diluted share, versus net income of $10.6 million, or $0.44 per diluted share, in the third quarter of 2007.
Net income was $18.3 million, or $0.77 per diluted share, for the nine months ended September 30, 2008, compared to net income of $29.2 million, or $1.19 per diluted share, for the nine months ended September 30, 2007.
"Although third quarter net interest income was up significantly due primarily to our net interest margin increasing 52 basis points from the prior year's quarter, the increase was insufficient to overcome the previously disclosed $22 million loan loss provision we incurred during the quarter. The significantly higher provision resulted from the combination of deteriorating credit quality and a $10.1 million loss attributable to a single borrower engaged in a fraudulent loan transaction. The fraud loss, by itself, had a negative impact of $0.29 per share, after-tax, on our reported earnings," said David B. Ramaker, Chairman, Chief Executive Officer and President of Chemical Financial Corporation.
"The rapid deterioration in the national economy over the past quarter has had a significant impact on Michigan's struggling economy, which has translated into increases in loan losses, loan delinquencies and nonperforming assets. As a result, we increased our loan loss reserves. We felt that this action was necessary in the current environment, but are not satisfied with our reported earnings this quarter," noted Ramaker.
"At the same time, our strong balance sheet, healthy capital position and sufficient liquidity have left Chemical Financial well positioned even in this difficult economic environment. Earlier this month, the Board declared a quarterly dividend of $0.295 per share for the fourth quarter of 2008, a reflection of the Company's belief that our earnings potential is high and our capital position strong. In fact, at quarter's end, our Leverage and Tier One Risk-Based capital ratios remained more than double the regulatory benchmarks for well-capitalized institutions. Despite the struggles faced by the national and Michigan economies, we are poised to not only weather
the current economic crisis, but to capitalize on opportunities which present themselves," added Ramaker.
Net interest income was $36.72 million in the third quarter of 2008, an increase of $4.25 million, or 13.1 percent, from third quarter 2007 net interest income of $32.47 million and an increase of $1.08 million, or 3.0 percent, from second quarter 2008 net interest income of $35.64 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 third quarter of 2008 was 4.20 percent, up substantially from 3.68 percent in the third quarter of 2007 and up from 4.11 percent in the second 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 $3.79 billion at September 30, 2008, up slightly from $3.75 billion at December 31, 2007 and down from $3.82 billion at September 30, 2007. At September 30, 2008, total loans were $2.93 billion, versus $2.80 billion at December 31, 2007 and $2.81 billion at September 30, 2007. Federal funds sold were $2 million at September 30, 2008, down from $58 million at December 31, 2007 and $88 million at September 30, 2007. Investment securities were $566 million at September 30, 2008, down from $595 million at December 31, 2007 and down from $632 million at September 30, 2007. During the first nine months of 2008, the Company utilized excess liquidity to fund approximately $129 million in loan growth and reduce wholesale borrowings.
Total deposits were $2.94 billion at September 30, 2008, up slightly from $2.88 billion at December 31, 2007, although down from $2.97 billion at September 30, 2007. Long-term wholesale borrowings, comprised of Federal Home Loan Bank advances, totaled $90 million at September 30, 2008, down $60 million, or 40 percent, from $150 million at December 31, 2007 and down $35 million, or 28 percent, from $125 million at September 30, 2007.
The provision for loan losses was $22.0 million in the third quarter of 2008, compared to $6.5 million in the second quarter of 2008 and $2.9 million in the third quarter of 2007. Included in the provision for the third quarter of 2008 was $10.1 million attributable to the previously
- -2-
disclosed fraudulent loan transaction. Absent this event, the provision for the third quarter of 2008 would have been $11.9 million. Net loan charge-offs were $15.3 million in the third quarter of 2008, up substantially from $6.5 million in the second quarter of 2008 and $0.8 million in the third quarter of 2007. The increase in charge-offs in the third quarter of 2008, as compared to the second quarter of 2008, was due primarily to the fraudulent loan transaction. Absent this transaction, net charge-offs in the third quarter of 2008 would have been $5.2 million.
At September 30, 2008, nonperforming assets totaled $98.4 million, up from $87.8 million at June 30, 2008 and up from $62.8 million at September 30, 2007. Nonperforming loans were $82.7 million at September 30, 2008, compared to $71.9 million at June 30, 2008 and $53.6 million at September 30, 2007. At September 30, 2008, nonperforming loans as a percentage of total loans were 2.83 percent, up from 2.52 percent at June 30, 2008 and up from 1.90 percent at September 30, 2007.
The allowance for loan losses of $46.4 million at September 30, 2008 was up 16.9 percent from $39.7 million at June 30, 2008. The allowance at September 30, 2008 was 1.58 percent of total loans, up from 1.39 percent of total loans at June 30, 2008 and up from 1.36 percent of total loans at September 30, 2007. The allowance for loan losses as a percent of nonperforming loans was 56 percent at September 30, 2008, up from 55 percent at June 30, 2008, but down from 72 percent at September 30, 2007. As part of Chemical Financial Corporation's ongoing credit portfolio monitoring program, the Company makes periodic assessments of the quality of each nonperforming credit, the financial condition of the borrower and the value of any underlying collateral to identify potential loss exposure on nonperforming loans. The Company's nonperforming loans at September 30, 2008 included commercial, real estate commercial and residential development construction loans totaling $27.3 million, which have been analyzed and deem ed to have sufficient collateral values so as not to require a specific impairment reserve on these loans at September 30, 2008.
Total noninterest income was $10.1 million in the third quarter of 2008, down $1.0 million, or 9.0 percent, from $11.1 million in the third quarter of 2007. The decrease from the prior year's quarter was attributable to the recognition of a $0.4 million other-than-temporary impairment loss on the value of a single issue debt security in the Company's available-for-sale securities
- -3-
portfolio and noninterest income in the third quarter of 2007 including $1.0 million of nonrecurring income from the recognition of insurance proceeds from fire damage to a branch building.
Operating expenses in the third quarter of 2008 were $26.8 million, up $1.6 million, or 6.3 percent, from $25.2 million in the third quarter of 2007. The increase was attributable to higher operating costs incurred across the Company's expense base, particularly in the areas of compensation expense, loan collection costs, other real estate write-downs and operating costs and marketing expenses related to our "Save Michigan" advertising campaign. The Company's efficiency ratio was 56.5 percent in the third quarter of 2008, up from 55.8 percent in the second quarter of 2008 and down from 57.1 percent in the third quarter of 2007. The decrease in the efficiency ratio from the prior year's quarter was primarily attributable to the increase in net interest income.
The Company's effective federal income tax rate was 48.1% in the third quarter of 2008, compared to 31.4% in the third quarter of 2007. For the nine months ended September 30, 2008 and 2007, the Company's effective federal income tax rates were 31.5% and 32.1%, respectively. The differences between the federal statutory income tax rates and the Company's effective federal income tax rates are primarily a function of the proportion of the Company's interest income exempt from federal taxation, nondeductible interest expense and other nondeductible expenses relative to pretax income and tax credits.
The Company's return on average assets during the third quarter of 2008 was (0.11) percent, down from 1.03 percent in the second quarter of 2008 and 1.10 percent in the third quarter of 2007. At September 30, 2008, the Company's book value stood at $21.19 per share versus $21.04 per share at September 30, 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 September 30, 2008, the Company had total assets of $3.79 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.
- -4-
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. Chemic al Financial Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
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 credit availability an d 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.
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Chemical Financial Corporation Announces Third Quarter Operating Results
|
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| September 30
2008
|
| December 31
2007
|
| September 30
2007
| |
Assets: | | | | | | | | | |
Cash and cash equivalents: | | | | | | | | | |
Cash and cash due from banks | $ | 107,311 | | $ | 125,285 | | $ | 99,465 | |
Federal funds sold | | 2,000 | | | 58,000 | | | 88,300 | |
Interest-bearing deposits with unaffiliated banks |
| 4,579
| |
| 6,228
| |
| 15,226
| |
Total Cash and Cash Equivalents | | 113,890 | | | 189,513 | | | 202,991 | |
Investment securities: | | | | | | | | | |
Available for sale | | 455,158 | | | 503,271 | | | 533,611 | |
Held to maturity |
| 111,261
| |
| 91,243
| |
| 98,342
| |
Total Investment Securities | | 566,419 | | | 594,514 | | | 631,953 | |
Other securities | | 22,142 | | | 22,135 | | | 22,135 | |
Loans held for sale | | 10,861 | | | 7,883 | | | 7,708 | |
| | | | | | | | | |
Loans: | | | | | | | | | |
Commercial | | 574,006 | | | 515,319 | | | 534,503 | |
Real estate commercial | | 776,617 | | | 760,399 | | | 736,443 | |
Real estate construction | | 133,615 | | | 134,828 | | | 138,199 | |
Real estate residential | | 831,700 | | | 838,545 | | | 840,694 | |
Consumer |
| 612,433
| |
| 550,343
| |
| 565,140
| |
Total Loans | | 2,928,371 | | | 2,799,434 | | | 2,814,979 | |
Allowance for loan losses |
| (46,412
| )
|
| (39,422
| )
|
| (38,386
| )
|
Net Loans | | 2,881,959 | | | 2,760,012 | | | 2,776,593 | |
| | | | | | | | | |
Premises and equipment | | 51,471 | | | 49,930 | | | 48,293 | |
Goodwill | | 69,908 | | | 69,908 | | | 69,908 | |
Other intangible assets | | 5,594 | | | 6,876 | | | 7,324 | |
Interest receivable and other assets |
| 65,842
| |
| 53,542
| |
| 55,857
| |
Total Assets | $
| 3,788,086
| | $
| 3,754,313
| | $
| 3,822,762
| |
| | | | | | | | | |
Liabilities: | | | | | | | | | |
Deposits: | | | | | | | | | |
Noninterest-bearing | $ | 531,355 | | $ | 535,705 | | $ | 524,522 | |
Interest-bearing |
| 2,412,521
| |
| 2,339,884
| |
| 2,442,692
| |
Total Deposits | | 2,943,876 | | | 2,875,589 | | | 2,967,214 | |
Interest payable and other liabilities | | 23,606 | | | 22,848 | | | 23,285 | |
Short-term borrowings | | 224,684 | | | 197,363 | | | 203,322 | |
Federal Home Loan Bank advances - long-term |
| 90,025
| |
| 150,049
| |
| 125,049
| |
Total Liabilities | | 3,282,191 | | | 3,245,849 | | | 3,318,870 | |
| | | | | | | | | |
Shareholders' Equity: | | | | | | | | | |
Common stock, $1 par value per share | | 23,877 | | | 23,815 | | | 23,952 | |
Surplus | | 346,652 | | | 344,579 | | | 347,569 | |
Retained earnings | | 139,037 | | | 141,867 | | | 138,817 | |
Accumulated other comprehensive loss |
| (3,671
| )
|
| (1,797
| )
|
| (6,446
| )
|
Total Shareholders' Equity |
| 505,895
| |
| 508,464
| |
| 503,892
| |
Total Liabilities and Shareholders' Equity | $
| 3,788,086
| | $
| 3,754,313
| | $
| 3,822,762
| |
- -6-
Chemical Financial Corporation Announces Third Quarter Operating Results
|
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation
| Three Months Ended
September 30 | | Nine Months Ended
September 30 |
(In thousands, except per share data)
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Interest Income: | | | | | | | | | | | |
Interest and fees on loans | $ | 45,211 | | $ | 48,346 | | $ | 135,272 | | $ | 143,850 |
Interest on investment securities: | | | | | | | | | | | |
Taxable | | 5,333 | | | 6,299 | | | 16,645 | | | 18,667 |
Tax-exempt | | 738 | | | 688 | | | 2,120 | | | 2,018 |
Dividends on other securities | | 211 | | | 182 | | | 795 | | | 755 |
Interest on federal funds sold | | 180 | | | 1,433 | | | 1,610 | | | 4,495 |
Interest on deposits with unaffiliated banks |
| 15
| |
| 209
| |
| 191
| |
| 383
|
Total Interest Income | | 51,688 | | | 57,157 | | | 156,633 | | | 170,168 |
| | | | | | | | | | | |
Interest Expense: | | | | | | | | | | | |
Interest on deposits | | 12,986 | | | 21,037 | | | 43,047 | | | 62,290 |
Interest on short-term borrowings | | 482 | | | 1,957 | | | 1,942 | | | 5,731 |
Interest on Federal Home Loan Bank advances - long-term |
| 1,500
| |
| 1,690
| |
| 4,902
| |
| 5,480
|
Total Interest Expense |
| 14,968
| |
| 24,684
| |
| 49,891
| |
| 73,501
|
Net Interest Income | | 36,720 | | | 32,473 | | | 106,742 | | | 96,667 |
Provision for loan losses |
| 22,000
| |
| 2,900
| |
| 31,200
| |
| 7,025
|
Net Interest Income after | | | | | | | | | | | |
Provision for Loan Losses | | 14,720 | | | 29,573 | | | 75,542 | | | 89,642 |
| | | | | | | | | | | |
Noninterest Income: | | | | | | | | | | | |
Service charges on deposit accounts | | 5,316 | | | 5,039 | | | 15,097 | | | 15,243 |
Trust and investment services revenue | | 1,925 | | | 2,034 | | | 6,042 | | | 6,221 |
Other charges and fees for customer services | | 2,618 | | | 2,393 | | | 7,302 | | | 7,211 |
Mortgage banking revenue | | 348 | | | 577 | | | 1,408 | | | 1,647 |
Investment securities (losses) gains | | (438 | ) | | - | | | 1,278 | | | 4 |
Other |
| 285
| |
| 1,014
| |
| 466
| |
| 2,130
|
Total Noninterest Income | | 10,054 | | | 11,057 | | | 31,593 | | | 32,456 |
| | | | | | | | | | | |
Operating Expenses: | | | | | | | | | | | |
Salaries, wages and employee benefits | | 15,075 | | | 14,463 | | | 44,364 | | | 44,975 |
Occupancy | | 2,472 | | | 2,361 | | | 7,602 | | | 7,721 |
Equipment | | 2,346 | | | 2,065 | | | 6,666 | | | 6,421 |
Other |
| 6,857
| |
| 6,281
| |
| 21,847
| |
| 20,032
|
Total Operating Expenses |
| 26,750
| |
| 25,170
| |
| 80,479
| |
| 79,149
|
Income (Loss) Before Income Taxes | | (1,976 | ) | | 15,460 | | | 26,656 | | | 42,949 |
Federal Income Tax Expense (Benefit) |
| (951
| )
|
| 4,850
| |
| 8,400
| |
| 13,786
|
Net Income (Loss) | $
| (1,025
| )
| $
| 10,610
| | $
| 18,256
| | $
| 29,163
|
| | | | | | | | | | | |
Net income (loss) per share: | | | | | | | | | | | |
Basic | $ | (0.04 | ) | $ | 0.44 | | $ | 0.77 | | $ | 1.19 |
Diluted | | (0.04 | ) | | 0.44 | | | 0.77 | | | 1.19 |
| | | | | | | | | | | |
Cash dividends per share | | 0.295 | | | 0.285 | | | 0.885 | | | 0.855 |
| | | | | | | | | | | |
Average shares outstanding: | | | | | | | | | | | |
Basic | | 23,836 | | | 24,091 | | | 23,827 | | | 24,520 |
Diluted | | 23,858 | | | 24,098 | | | 23,839 | | | 24,532 |
- -7-
Chemical Financial Corporation Announces Third Quarter Operating Results
|
Financial Summary (Unaudited)
Chemical Financial Corporation
| Three Months Ended
September 30 | | Nine Months Ended
September 30 |
(Dollars in thousands)
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Average Balances | | | | | | | | | | | |
Total assets | $ | 3,782,391 | | $ | 3,812,654 | | $ | 3,777,057 | | $ | 3,799,670 |
Total interest-earning assets | | 3,542,031 | | | 3,576,667 | | | 3,544,785 | | | 3,565,767 |
Total loans | | 2,898,784 | | | 2,813,746 | | | 2,841,873 | | | 2,803,141 |
Total deposits | | 2,923,912 | | | 2,957,407 | | | 2,922,438 | | | 2,936,466 |
Total interest-bearing liabilities | | 2,689,248 | | | 2,740,812 | | | 2,702,251 | | | 2,732,713 |
Total shareholders' equity | | 512,504 | | | 499,353 | | | 510,893 | | | 507,146 |
| Three Months Ended
September 30 | | Nine Months Ended
September 30 |
| 2008
|
| 2007
|
| 2008
|
| 2007
|
Key Ratios (annualized where applicable) | | | | | | | | | | | |
Net interest margin (taxable equivalent basis) | | 4.20% | | | 3.68% | | | 4.08% | | | 3.68% |
Efficiency ratio | | 56.5% | | | 57.1% | | | 57.5% | | | 60.5% |
Return on average assets | | (0.11)% | | | 1.10% | | | 0.65% | | | 1.03% |
Return on average shareholders' equity | | (0.8)% | | | 8.4% | | | 4.8% | | | 7.7% |
Average shareholders' equity as a | | | | | | | | | | | |
percent of average assets | | 13.5% | | | 13.1% | | | 13.5% | | | 13.3% |
Tangible shareholders' equity as a | | | | | | | | | | | |
percent of total assets | | | | | | | | 11.6% | | | 11.4% |
Total risk-based capital ratio | | | | | | | | 16.7% | | | 17.1% |
| Sept 30
2008
|
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
Credit Quality Statistics | | | | | | | | | | | | | | |
Nonaccrual loans | $ | 69,719 | | $ | 61,635 | | $ | 61,360 | | $ | 55,596 | | $ | 40,341 |
Loans 90 or more days past due | | | | | | | | | | | | | | |
and still accruing | | 13,012 | | | 10,288 | | | 10,570 | | | 7,764 | | | 13,282 |
Total nonperforming loans | | 82,731 | | | 71,923 | | | 71,930 | | | 63,360 | | | 53,623 |
Repossessed assets (RA) | | 15,699 | | | 15,897 | | | 12,664 | | | 11,132 | | | 9,164 |
Total nonperforming assets | | 98,430 | | | 87,820 | | | 84,594 | | | 74,492 | | | 62,787 |
Net loan charge-offs (year-to-date) | | 24,210 | | | 8,958 | | | 2,460 | | | 6,176 | | | 2,737 |
| | | | | | | | | | | | | | |
Allowance for loan losses as a | | | | | | | | | | | | | | |
percent of total loans | | 1.58% | | | 1.39% | | | 1.42% | | | 1.41% | | | 1.36% |
Allowance for loan losses as a | | | | | | | | | | | | | | |
percent of nonperforming loans | | 56% | | | 55% | | | 55% | | | 62% | | | 72% |
Nonperforming loans as a | | | | | | | | | | | | | | |
percent of total loans | | 2.83% | | | 2.52% | | | 2.58% | | | 2.26% | | | 1.90% |
Nonperforming assets as a | | | | | | | | | | | | | | |
percent of total loans plus RA | | 3.34% | | | 3.06% | | | 3.02% | | | 2.65% | | | 2.22% |
Nonperforming assets as a | | | | | | | | | | | | | | |
percent of total assets | | 2.60% | | | 2.35% | | | 2.23% | | | 1.98% | | | 1.64% |
Net loan charge-offs as a percent of | | | | | | | | | | | | | | |
average loans (year-to-date, annualized) | | 1.14% | | | 0.64% | | | 0.35% | | | 0.22% | | | 0.13% |
| Sept 30
2008
|
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
Additional Data - Intangibles | | | | | | | | | | | | | | |
Goodwill | $ | 69,908 | | $ | 69,908 | | $ | 69,908 | | $ | 69,908 | | $ | 69,908 |
Core deposit intangibles | | 3,266 | | | 3,609 | | | 4,062 | | | 4,593 | | | 5,024 |
Mortgage servicing rights (MSR) | | 2,328 | | | 2,354 | | | 2,280 | | | 2,283 | | | 2,300 |
Amortization of core deposit intangibles
(quarter only) | |
343
| | |
453
| | |
531
| | |
431
| | |
431
|
- -8-
Chemical Financial Corporation Announces Third Quarter Operating Results
|
Nonperforming Assets (Unaudited)
Chemical Financial Corporation
(Dollars in thousands)
| Sept 30
2008
|
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
|
Nonaccrual loans: | | | | | | | | | | | | | | |
Commercial | $ | 13,320 | | $ | 10,918 | | $ | 11,595 | | $ | 10,961 | | $ | 6,735 |
Real estate commercial | | 24,230 | | | 17,915 | | | 19,235 | | | 19,672 | | | 19,664 |
Real estate construction | | 14,513 | | | 15,157 | | | 17,206 | | | 12,979 | | | 4,573 |
Real estate residential | | 12,869 | | | 11,955 | | | 9,267 | | | 8,516 | | | 7,244 |
Consumer
|
| 4,787
|
|
| 5,690
|
|
| 4,057
|
|
| 3,468
|
|
| 2,125
|
Total nonaccrual loans | | 69,719 | | | 61,635 | | | 61,360 | | | 55,596 | | | 40,341 |
Accruing loans contractually past due
90 days or more as to interest or
principal payments: | | | | | | | | | | | | | | |
Commercial | | 1,735 | | | 3,130 | | | 1,631 | | | 1,958 | | | 1,867 |
Real estate commercial | | 6,586 | | | 2,948 | | | 2,865 | | | 4,170 | | | 5,367 |
Real estate construction | | 1,096 | | | 676 | | | 392 | | | - | | | 1,076 |
Real estate residential | | 2,910 | | | 2,746 | | | 4,742 | | | 1,470 | | | 3,918 |
Consumer
|
| 685
|
|
| 788
|
|
| 940
|
|
| 166
|
|
| 1,054
|
Total accruing loans contractually past
due 90 days or more as to interest
or principal payments
|
|
13,012
|
|
|
10,288
|
|
|
10,570
|
|
|
7,764
|
|
|
13,282
|
Total nonperforming loans | | 82,731 | | | 71,923 | | | 71,930 | | | 63,360 | | | 53,623 |
Other real estate and repossessed assets
|
| 15,699
|
|
| 15,897
|
|
| 12,664
|
|
| 11,132
|
|
| 9,164
|
Total nonperforming assets
| $
| 98,430
|
| $
| 87,820
|
| $
| 84,594
|
| $
| 74,492
|
| $
| 62,787
|
- -9-
Chemical Financial Corporation Announces Third Quarter Operating Results
|
Summary of Loan Loss Experience (Unaudited)
Chemical Financial Corporation
| Three Months Ended
| |
(Dollars in thousands)
| Sept 30
2008
|
| June 30
2008
|
| March 31
2008
|
| Dec 31
2007
|
| Sept 30
2007
| |
Allowance for loan losses at beginning
of period |
$
|
39,664
| |
$
|
39,662
| |
$
|
39,422
| |
$
|
38,386
| |
$
|
36,254
| |
Provision for loan losses | | 22,000 | | | 6,500 | | | 2,700 | | | 4,475 | | | 2,900 | |
| | | | | | | | | | | | | | | |
Loans charged off: | | | | | | | | | | | | | | | |
Commercial | | (11,468 | ) | | (1,474 | ) | | (591 | ) | | (550 | ) | | (208 | ) |
Real estate commercial | | (673 | ) | | (3,373 | ) | | (1,304 | ) | | (1,415 | ) | | - | |
Real estate construction | | (923 | ) | | (1,070 | ) | | (16 | ) | | (850 | ) | | (134 | ) |
Real estate residential | | (749 | ) | | (358 | ) | | (245 | ) | | (306 | ) | | (64 | ) |
Consumer
|
| (1,776
| )
|
| (612
| )
|
| (540
| )
|
| (596
| )
|
| (501
| )
|
Total loan charge-offs | | (15,589 | ) | | (6,887 | ) | | (2,696 | ) | | (3,717 | ) | | (907 | ) |
Recoveries of loans previously
charged off: | | | | | | | | | | | | | | | |
Commercial | | 74 | | | 228 | | | 77 | | | 90 | | | 18 | |
Real estate commercial | | 68 | | | 32 | | | 20 | | | 1 | | | 19 | |
Real estate construction | | - | | | - | | | 29 | | | 30 | | | - | |
Real estate residential | | 50 | | | 5 | | | 22 | | | 12 | | | 4 | |
Consumer
|
| 145
|
|
| 124
|
|
| 88
|
|
| 145
|
|
| 98
| |
Total loan recoveries
|
| 337
|
|
| 389
|
|
| 236
|
|
| 278
|
|
| 139
| |
Net loan charge-offs
|
| (15,252
| )
|
| (6,498
| )
|
| (2,460
| )
|
| (3,439
| )
|
| (768
| )
|
Allowance for loan losses at end of
period
|
$
|
46,412
|
|
$
|
39,664
|
|
$
|
39,662
|
|
$
|
39,422
|
|
$
|
38,386
| |
- -10-
Chemical Financial Corporation Announces Third Quarter Operating Results
|
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation
(In thousands, except per share data)
| 3rd Qtr.
2008
|
| 2nd Qtr.
2008
|
| 1st Qtr.
2008
|
| 4th Qtr.
2007
|
| 3rd Qtr.
2007
|
Summary of Operations | | | | | | | | | |
Interest income | $51,688 | | $51,508 | | $53,437 | | $55,726 | | $57,157 |
Interest expense | 14,968 | | 15,872 | | 19,051 | | 22,304 | | 24,684 |
Net interest income | 36,720 | | 35,636 | | 34,386 | | 33,422 | | 32,473 |
Provision for loan losses | 22,000 | | 6,500 | | 2,700 | | 4,475 | | 2,900 |
Net interest income after provision | | | | | | | | | |
for loan losses | 14,720 | | 29,136 | | 31,686 | | 28,947 | | 29,573 |
Noninterest income | 10,054 | | 11,959 | | 9,580 | | 10,832 | | 11,057 |
Operating expenses | 26,750 | | 26,885 | | 26,844 | | 25,522 | | 25,170 |
Income (Loss) Before Income Taxes | (1,976 | ) | 14,210 | | 14,422 | | 14,257 | | 15,460 |
Federal Income Tax Expense (Benefit) | (951 | ) | 4,600 | | 4,751 | | 4,411 | | 4,850 |
Net Income (Loss) | $(1,025 | ) | $9,610 | | $9,671 | | $9,846 | | $10,610 |
|
|
|
|
|
|
|
|
|
|
Per Common Share Data | | | | | | | | | |
Net income (loss): | | | | | | | | | |
Basic | $ (0.04 | ) | $ 0.40 | | $ 0.41 | | $ 0.41 | | $ 0.44 |
Diluted | (0.04 | ) | 0.40 | | 0.41 | | 0.41 | | 0.44 |
Cash dividends | 0.295 | | 0.295 | | 0.295 | | 0.285 | | 0.285 |
Book value - period-end | 21.19 | | 21.58 | | 21.60 | | 21.35 | | 21.04 |
Market value - period-end | 31.14 | | 20.40 | | 23.84 | | 23.79 | | 24.25 |
- -11-
