TCF Financial 8-K Chemical Financial Corporation Reports Second Quarter 2009 Earnings

EXHIBIT 99.1

For further information:
David B. Ramaker, CEO
Lori A. Gwizdala, CFO
989-839-5350

Chemical Financial Corporation Reports Second Quarter 2009 Earnings

          MIDLAND, Mich., July 27, 2009 -- Chemical Financial Corporation (Nasdaq:CHFC) today announced 2009 second quarter net income of $2.3 million, or $0.10 per diluted share, versus net income of $9.6 million, or $0.40 per diluted share, in the second quarter of 2008.

          Net income was $5.0 million, or $0.21 per diluted share, for the six months ended June 30, 2009, compared to net income of $19.3 million, or $0.81 per diluted share, for the six months ended June 30, 2008.

          "Although we remain profitable, loan loss provisioning, credit related costs and increased FDIC premiums depressed second quarter earnings, as Michigan's ongoing recession continued to negatively impact virtually all segments of our customer base. In the quarter, we recorded a $15.2 million provision for loan losses, as we incurred net loan charge-offs of $7.8 million in the quarter and increased our allowance for loan losses an additional $7.4 million," said David B. Ramaker, Chairman, Chief Executive Officer & President. "This increase in our allowance for loan losses was precipitated primarily by an increase in nonperforming loans during the quarter."

          "Our capital levels and liquidity bear witness to our financial strength and stability, which have enabled us to pursue quality opportunities for growth in consumer loans, real estate residential loan originations and deposits despite the challenging economic environment. Since the year began, our consumer lending portfolio has grown by $100 million, which is approximately a 30 percent annualized rate of growth. Extensive opportunities in indirect consumer lending due to a combination of an increased sales effort, new technology to support indirect loan application processing and a reduction in the number of competing lenders has facilitated this growth. Similarly, deposit growth has been strong, with total deposits up 8.4 percent in the past twelve months. As credit concerns ease and the economy recovers, the

Company intends to increasingly deploy these deposits into loans, which we believe will translate into improved earnings performance."

          "Due in part to our strong capital levels, which we are committed to maintaining, we remain well positioned to capitalize on other growth opportunities that may present themselves, and we will continue to take a strong leadership position in meeting the needs of the communities we serve," added Ramaker.

          Net interest income was $37.0 million in the second quarter of 2009, an increase of $1.4 million, or 3.8 percent, from second quarter 2008 net interest income of $35.6 million and an increase of $0.4 million, or 1.1 percent, from first quarter 2009 net interest income of $36.6 million. These increases resulted primarily from improved income from growth in earning assets outpacing declines in net interest margin. The net interest margin (on a tax-equivalent basis) in the second quarter of 2009 was 4.00 percent, down slightly from 4.11 percent in the second quarter of 2008 and from 4.06 percent in the first quarter of 2009. The decrease in the net interest margin was largely attributable to a higher proportion of earning assets being invested in lower rate-yielding assets. In general, this shift in earning asset mix was attributable to a lack of quality business lending opportunities under current economic conditions and a reduction in the residential loan portfolio, w hich resulted in the Company investing funds received as the result of relationship-based deposit growth into lower earning asset classes, such as securities and overnight investments.

          Total assets were $4.00 billion at June 30, 2009, up from $3.87 billion at December 31, 2008 and from $3.74 billion at June 30, 2008. At June 30, 2009, total loans were $2.98 billion, versus $2.98 billion at December 31, 2008 and $2.85 billion at June 30, 2008. As previously mentioned, in the current economic environment, the Company is challenged in finding adequate high quality commercial and retail loan opportunities to maintain and grow certain segments of its loan portfolio. The Company experienced a $66.4 million, or 7.9 percent, decline in the residential loan portfolio during the six months ended June 30, 2009. This decline was primarily attributable to the historically low fixed mortgage interest rates that have been prevalent throughout 2009. As adjustable rate portfolio loans refinanced into fixed rate products, the Company sold the majority of fixed rate loans it originated during the six months ended June 30, 2009 into the secondary market, while retaining servicing rights on the majority of the loans

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sold; resulting in an increase in mortgage banking revenue. Investment securities were $637 million at June 30, 2009, up substantially from $547 million at December 31, 2008 and up from $589 million at June 30, 2008.

          Total deposits were $3.13 billion at June 30, 2009, up from $2.98 billion at December 31, 2008 and from $2.89 billion at June 30, 2008. The strong deposit growth over the past year was attributable, in part, to the Company's ongoing efforts to enhance and build customer relationships. Long-term wholesale borrowings, comprised of Federal Home Loan Bank advances, totaled $115 million at June 30, 2009, down $20 million, or 15 percent, from $135 million at December 31, 2008 and down $15 million, or 12 percent, from $130 million at June 30, 2008.

          The provision for loan losses was $15.2 million in the second quarter of 2009, compared to $14.0 million in the first quarter of 2009 and $6.5 million in the second quarter of 2008. Net loan charge-offs were $7.8 million in the second quarter of 2009, down from $8.5 million in the first quarter of 2009, although up from $6.5 million in the second quarter of 2008.

          At June 30, 2009, nonperforming assets totaled $142.8 million, up from $125.7 million at March 31, 2009 and $87.8 million at June 30, 2008. Nonperforming loans were $124.4 million at June 30, 2009, up from $105.0 million at March 31, 2009, with the increase attributable primarily to increases in the commercial, real estate commercial and real estate residential categories. At June 30, 2009, nonperforming loans as a percentage of total loans were 4.18 percent, up from 3.56 percent at March 31, 2009 and up from 2.52 percent at June 30, 2008.

          The allowance for loan losses of $70.0 million at June 30, 2009 was 2.35 percent of total loans, up from 2.12 percent of total loans at March 31, 2009 and up from 1.39 percent of total loans at June 30, 2008. The allowance for loan losses as a percent of nonperforming loans was 56 percent at June 30, 2009, compared to 60 percent at March 31, 2009, and 55 percent at June 30, 2008. The Company's nonperforming loans at June 30, 2009 included commercial, real estate commercial and residential development construction loans, totaling $48.6 million, which have been analyzed and deemed to be adequately collateralized so as not to require a valuation allowance.

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          Total noninterest income was $11.0 million in the second quarter of 2009, up $1.1 million, or 11.2 percent, from the first quarter of 2009, although down $1.0 million, or 8.4 percent, from the second quarter of 2008. The increase in noninterest income in the second quarter of 2009, compared to the first quarter of 2009, was primarily attributable to increases in both service charges on deposit accounts and mortgage banking revenue. The decrease from the prior year was primarily attributable to the realization of a $1.7 million gain on the sale of MasterCard stock in the second quarter of 2008. As compared to the second quarter of 2008, in the second quarter of 2009 the Company saw strong increases in mortgage banking revenue, which were partially offset by declines in trust and investment services revenue due primarily to declines in the value of trust assets.

          Operating expenses of $30.0 million in the second quarter of 2009 were up $0.8 million, or 2.8 percent, from the first quarter of 2009 and up $3.1 million, or 11.6 percent, from the second quarter of 2008. FDIC insurance premiums were $3.1 million in the second quarter of 2009, up from $1.2 million in the first quarter of 2009, and up substantially from $0.2 million in the second quarter of 2008. The premium in the second quarter of 2009 included a FDIC industry-wide special assessment of $1.8 million for the Company. The FDIC has notified banks that it is probable another special assessment may be assessed in the fourth quarter of 2009. Loan collection expenses and costs related to the Company's nonperforming assets totaled $2.3 million in the second quarter of 2009, compared to $2.2 million in the first quarter of 2009 and $1.1 million in the second quarter of 2008. Employee benefit costs were $0.8 million lower in the second quarter of 2009 than in the first quar ter of 2009 due largely to an experience rated reduction in group health costs during the quarter.

          The Company's return on average assets during the second quarter of 2009 was 0.23 percent, down from 0.28 percent in the first quarter of 2009 and down from 1.03 percent in the second quarter of 2008. The decrease in return on assets resulted in a decrease in return on average equity to 1.9 percent in the second quarter of 2009 from 7.6 percent in the second quarter of 2008. At June 30, 2009, the Company's book value stood at $20.23 per share versus $21.58 per share at June 30, 2008.

          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

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banking offices spread over 31 counties in the lower peninsula of Michigan. At June 30, 2009, the Company had total assets of $4.0 billion. Chemical Financial Corporation's 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. Chemica l 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, 2008; 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 availabili ty 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

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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 2009			December 31 2008			June 30 2008
Assets:
Cash and cash equivalents:
Cash and cash due from banks	$	88,210		$	168,650		$	110,050
Federal funds sold		-			-			8,000
Interest-bearing deposits with unaffiliated banks and others		119,413			4,572			4,827
Total Cash and Cash Equivalents		207,623			173,222			122,877
Investment securities:
Available-for-sale		492,096			449,947			477,910
Held-to-maturity		144,556			97,511			111,579
Total Investment Securities		636,652			547,458			589,489
Other securities		22,128			22,128			22,142
Loans held for sale		26,008			8,463			7,571
Loans:
Commercial		560,187			587,554			539,086
Real estate commercial		774,881			786,404			776,505
Real estate construction		119,674			119,001			130,079
Real estate residential		773,126			839,555			824,588
Consumer		749,032			649,163			580,203
Total Loans		2,976,900			2,981,677			2,850,461
Allowance for loan losses		(69,956	)		(57,056	)		(39,664	)
Net Loans		2,906,944			2,924,621			2,810,797
Premises and equipment		52,578			53,036			49,164
Goodwill		69,908			69,908			69,908
Other intangible assets		5,498			5,241			5,963
Interest receivable and other assets		71,417			70,236			59,943
Total Assets	$	3,998,756		$	3,874,313		$	3,737,854
Liabilities:
Deposits:
Noninterest-bearing	$	551,060		$	524,464		$	552,550
Interest-bearing		2,579,367			2,454,328			2,334,409
Total Deposits		3,130,427			2,978,792			2,886,959
Interest payable and other liabilities		36,329			35,214			21,207
Short-term borrowings		233,674			233,738			185,472
Federal Home Loan Bank advances - long-term		115,000			135,025			130,025
Total Liabilities		3,515,430			3,382,769			3,223,663
Shareholders' Equity:
Common stock, $1 par value per share		23,890			23,881			23,823
Surplus		347,447			346,916			345,117
Retained earnings		124,496			133,578			147,092
Accumulated other comprehensive loss		(12,507	)		(12,831	)		(1,841	)
Total Shareholders' Equity		483,326			491,544			514,191
Total Liabilities and Shareholders' Equity	$	3,998,756		$	3,874,313		$	3,737,854

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Chemical Financial Corporation Announces Second Quarter Operating Results

Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation

	Three Months Ended				Six Months Ended
	June 30				June 30
(In thousands, except per share data)	2009			2008	2009		2008
Interest Income:
Interest and fees on loans	$	42,997	$	44,491	$	85,790	$	90,061
Interest on investment securities:
Taxable		4,024		5,473		8,526		11,312
Tax-exempt		893		687		1,670		1,382
Dividends on other securities		267		390		430		584
Interest on federal funds sold		-		412		-		1,430
Interest on deposits with unaffiliated banks and others		102		55		189		176
Total Interest Income		48,283		51,508		96,605		104,945
Interest Expense:
Interest on deposits		9,808		13,734		19,975		30,061
Interest on short-term borrowings		239		501		472		1,460
Interest on Federal Home Loan Bank advances - long-term		1,258		1,637		2,590		3,402
Total Interest Expense		11,305		15,872		23,037		34,923
Net Interest Income		36,978		35,636		73,568		70,022
Provision for loan losses		15,200		6,500		29,200		9,200
Net Interest Income after
Provision for Loan Losses		21,778		29,136		44,368		60,822
Noninterest Income:
Service charges on deposit accounts		4,781		5,007		9,256		9,781
Trust and investment services revenue		2,374		2,838		4,749		5,492
Other charges and fees for customer services		1,994		1,713		3,795		3,309
Mortgage banking revenue		1,462		524		2,612		1,060
Investment securities gains		95		1,716		95		1,716
Other		252		161		308		181
Total Noninterest Income		10,958		11,959		20,815		21,539
Operating Expenses:
Salaries, wages and employee benefits		14,683		14,810		30,100		29,289
Occupancy		2,407		2,360		5,114		5,130
Equipment		2,364		2,133		4,706		4,320
Other		10,562		7,582		19,301		14,990
Total Operating Expenses		30,016		26,885		59,221		53,729
Income Before Income Taxes		2,720		14,210		5,962		28,632
Federal Income Tax Expense		426		4,600		950		9,351
Net Income	$	2,294	$	9,610	$	5,012	$	19,281
Net income per share:
Basic	$	0.10	$	0.40	$	0.21	$	0.81
Diluted		0.10		0.40		0.21		0.81
Cash dividends per share		0.295		0.295		0.590		0.590
Average shares outstanding:
Basic		23,890		23,823		23,890		23,823
Diluted		23,908		23,831		23,904		23,829

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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)	2009		2008		2009		2008
Average Balances
Total assets	$	4,001,155	$	3,757,238	$	3,964,318	$	3,774,361
Total interest-earning assets		3,776,766		3,530,750		3,737,963		3,546,177
Total loans		2,968,039		2,827,260		2,964,528		2,813,105
Total deposits		3,130,678		2,910,357		3,089,126		2,921,693
Total interest-bearing liabilities		2,926,290		2,680,550		2,905,601		2,708,823
Total shareholders' equity		488,765		511,926		488,432		510,079

	Three Months Ended June 30				Six Months Ended June 30
	2009		2008		2009		2008
Key Ratios (annualized where applicable)
Net interest margin (taxable equivalent basis)		4.00%		4.11%		4.03%		4.02%
Efficiency ratio		61.7%		55.8%		61.9%		58.0%
Return on average assets		0.23%		1.03%		0.25%		1.03%
Return on average shareholders' equity		1.9%		7.6%		2.1%		7.6%
Average shareholders' equity as a
percent of average assets		12.2%		13.6%		12.3%		13.5%
Tangible shareholders' equity as a
percent of total assets						10.5%		12.0%
Total risk-based capital ratio						16.0%		17.3%

	June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008		June 30 2008
Credit Quality Statistics
Nonaccrual loans	$	109,944	$	94,737	$	76,466	$	69,719	$	61,635
Loans 90 or more days past due
and still accruing		10,502		10,240		16,862		13,012		10,288
Loans modified under troubled debt restructuring		3,981		-		-		-		-
Total nonperforming loans		124,427		104,977		93,328		82,731		71,923
Repossessed assets (RA)		18,344		20,688		19,923		15,699		15,897
Total nonperforming assets		142,771		125,665		113,251		98,430		87,820
Net loan charge-offs (year-to-date)		16,300		8,494		31,566		24,210		8,958
Allowance for loan losses as a
percent of total loans		2.35%		2.12%		1.91%		1.58%		1.39%
Allowance for loan losses as a
percent of nonperforming loans		56%		60%		61%		56%		55%
Nonperforming loans as a
percent of total loans		4.18%		3.56%		3.13%		2.83%		2.52%
Nonperforming assets as a
percent of total loans plus RA		4.77%		4.23%		3.77%		3.34%		3.06%
Nonperforming assets as a
percent of total assets		3.57%		3.16%		2.92%		2.60%		2.35%
Net loan charge-offs as a percent of
average loans (year-to-date, annualized)		1.10%		1.15%		1.10%		1.14%		0.64%

	June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008		June 30 2008
Additional Data - Intangibles
Goodwill	$	69,908	$	69,908	$	69,908	$	69,908	$	69,908
Core deposit intangibles		2,629		2,847		3,050		3,266		3,609
Mortgage servicing rights (MSR)		2,869		2,377		2,191		2,328		2,354
Amortization of core deposit intangibles (quarter only)		217		203		216		343		453

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Chemical Financial Corporation Announces Second Quarter Operating Results

Nonperforming Assets (Unaudited)
Chemical Financial Corporation

(Dollars in thousands)	June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008		June 30 2008
Nonaccrual loans:
Commercial	$	20,371	$	16,419	$	16,324	$	13,320	$	10,918
Real estate commercial		50,067		41,826		27,344		24,230		17,915
Real estate construction		17,935		18,504		15,310		14,513		15,157
Real estate residential		15,905		12,803		12,175		12,869		11,955
Consumer		5,666		5,185		5,313		4,787		5,690
Total nonaccrual loans		109,944		94,737		76,466		69,719		61,635
Accruing loans contractually past due      90 days or more as to interest or
principal payments:
Commercial		1,201		2,581		1,652		1,735		3,130
Real estate commercial		1,542		4,352		9,995		6,586		2,948
Real estate construction		259		538		759		1,096		676
Real estate residential		6,236		1,699		3,369		2,910		2,746
Consumer		1,264		1,070		1,087		685		788
Total accruing loans contractually past           due 90 days or more as to interest
or principal payments		10,502		10,240		16,862		13,012		10,288
Loans modified under troubled debt restructuring		3,981		-		-		-		-
Total nonperforming loans		124,427		104,977		93,328		82,731		71,923
Other real estate and repossessed assets		18,344		20,688		19,923		15,699		15,897
Total nonperforming assets	$	142,771	$	125,665	$	113,251	$	98,430	$	87,820

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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 2009			March 31 2009			Dec 31 2008			Sept 30 2008			June 30 2008
Allowance for loan losses at beginning of period	$	62,562		$	57,056		$	46,412		$	39,664		$	39,662
Provision for loan losses		15,200			14,000			18,000			22,000			6,500
Loans charged off:
Commercial		(3,289	)		(3,290	)		(3,254	)		(11,468	)		(1,474	)
Real estate commercial		(1,930	)		(2,589	)		(1,645	)		(673	)		(3,373	)
Real estate construction		(762	)		(1,700	)		(954	)		(923	)		(1,070	)
Real estate residential		(1,043	)		(235	)		(1,106	)		(749	)		(358	)
Consumer		(1,544	)		(1,253	)		(1,811	)		(1,776	)		(612	)
Total loan charge-offs		(8,568	)		(9,067	)		(8,770	)		(15,589	)		(6,887	)
Recoveries of loans previously charged off:
Commercial		130			205			1,094			74			228
Real estate commercial		226			87			11			68			32
Real estate construction		-			-			-			-			-
Real estate residential		127			82			83			50			5
Consumer		279			199			226			145			124
Total loan recoveries		762			573			1,414			337			389
Net loan charge-offs		(7,806	)		(8,494	)		(7,356	)		(15,252	)		(6,498	)
Allowance for loan losses at end of period	$	69,956		$	62,562		$	57,056		$	46,412		$	39,664

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Chemical Financial Corporation Announces Second Quarter Operating Results

Selected Quarterly Information (Unaudited)
Chemical Financial Corporation

(In thousands, except per share data)	2nd Qtr. 2009	1st Qtr. 2009	4th Qtr. 2008		3rd Qtr. 2008		2nd Qtr. 2008
Summary of Operations
Interest income	$48,283	$48,322	$51,703		$51,688		$51,508
Interest expense	11,305	11,732	13,192		14,968		15,872
Net interest income	36,978	36,590	38,511		36,720		35,636
Provision for loan losses	15,200	14,000	18,000		22,000		6,500
Net interest income after provision
for loan losses	21,778	22,590	20,511		14,720		29,136
Noninterest income	10,958	9,857	9,604		10,054		11,959
Operating expenses	30,016	29,205	28,629		26,750		26,885
Income (loss) before income taxes	2,720	3,242	1,486		(1,976	)	14,210
Federal income tax expense (benefit)	426	524	(100	)	(951	)	4,600
Net income (loss)	$2,294	$2,718	$1,586		$(1,025	)	$9,610
Per Common Share Data
Net income (loss):
Basic	$0.10	$0.11	$0.06		$(0.04	)	$0.40
Diluted	0.10	0.11	0.06		(0.04	)	0.40
Cash dividends	0.295	0.295	0.295		0.295		0.295
Book value - period-end	20.23	20.40	20.58		21.19		21.58
Market value - period-end	19.91	20.81	27.88		31.14		20.40

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