TCF Financial 8-K Chemical Financial Corporation Reports Third Quarter 2009 Results

EXHIBIT 99.1

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

Chemical Financial Corporation Reports Third Quarter 2009 Results

MIDLAND, Mich., October 26, 2009 -- Chemical Financial Corporation (Nasdaq:CHFC) today announced third quarter 2009 net income of $2.5 million, or $0.10 per diluted share, versus a net loss of $1.0 million, or $0.04 per diluted share, in the third quarter of 2008.

Net income was $7.5 million, or $0.31 per diluted share, for the nine months ended September 30, 2009, compared to net income of $18.3 million, or $0.77 per diluted share, for the nine months ended September 30, 2008.

"The quarter's financial results benefitted from a decrease in our loan loss provision from $22.0 million in last year's third quarter to $14.2 million in this year's third quarter, which was partially offset by higher operating expenses. Although total assets have increased by over 12 percent during the past twelve months, this growth has not yet translated into higher net interest income due to the combination of a lack of sufficient quality lending opportunities in our markets and our decision to maintain a higher level of liquidity," said David B. Ramaker, Chairman, Chief Executive Officer and President of Chemical Financial Corporation.

"While we are pleased to maintain our profitability in light of the difficulties faced by our industry, the national and Michigan economies continue to face challenges. As a result, credit quality measures continued to deteriorate during the third quarter of 2009, although net charge-offs moderated slightly from the previous two quarters.

"Our strong balance sheet, ample liquidity, high capital ratios and risk management practices are reflective of our sound business practices, which continue to serve us well in this environment. We believe we remain well positioned to benefit from future economic recovery and take advantage of selected opportunities for growth that may result from the industry's current challenges," added Ramaker.

Net interest income was $36.7 million in the third quarter of 2009, essentially unchanged from third quarter 2008 net interest income, but slightly below second quarter 2009 net interest income of $37.0 million. As compared to the third quarter of 2008, increases in net interest-earning assets were offset by decreases in net interest margin. The net interest margin (on a tax-equivalent basis) in the third quarter of 2009 was 3.83 percent, down from 4.20 percent in the third quarter of 2008 and from 4.00 percent in the second quarter of 2009. The decreases in net interest margin were partially attributable to the Company's decision to maintain a higher degree of liquidity coupled with the loss of interest on nonaccrual loans.

Total assets were $4.27 billion at September 30, 2009, up substantially from $3.87 billion at December 31, 2008 and $3.79 billion at September 30, 2008. During the first nine months of 2009, the Company increased liquidity substantially, with $466 million in cash and cash equivalents at September 30, 2009, versus $173 million at December 31, 2008 and $114 million at September 30, 2008. Investment securities were $645 million at September 30, 2009, up from $547 million at December 31, 2008 and $566 million at September 30, 2008. At September 30, 2009, total loans were $3.00 billion, versus $2.98 billion at December 31, 2008 and $2.93 billion at September 30, 2008. Growth in the consumer loan portfolio more than offset a decline in the residential real estate portfolio.

Total deposits were $3.40 billion at September 30, 2009, up substantially from $2.98 billion at December 31, 2008, and $2.94 billion at September 30, 2008. A portion of the growth in the current year is attributable to a strong level of seasonal deposits at September 30, 2009. Federal Home Loan Bank advances totaled $115 million at September 30, 2009, down $20 million, or 14.8 percent, from $135 million at December 31, 2008, but up $25 million, or 27.7 percent, from $90 million at September 30, 2008.

The provision for loan losses was $14.2 million in the third quarter of 2009, compared to $15.2 million in the second quarter of 2009 and $22.0 million in the third quarter of 2008. Included in the third quarter 2008 provision for loan losses was $10.1 million attributable to a fraudulent loan transaction identified in that quarter. Net loan charge-offs were $6.7 million in the third quarter of 2009, down from $7.8 million in the second quarter of 2009 and down from $15.3

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million in the third quarter of 2008, which included a $10.1 million charge-off for the fraudulent loan transaction.

At September 30, 2009, nonperforming assets totaled $157.5 million, up from $142.8 million at June 30, 2009 and up substantially from $98.4 million at September 30, 2008. Nonperforming loans were $138.5 million at September 30, 2009, compared to $124.4 million at June 30, 2009 and $82.7 million at September 30, 2008. At September 30, 2009, nonperforming loans as a percentage of total loans were 4.61 percent, up from 4.18 percent at June 30, 2009 and 2.83 percent at September 30, 2008.

The allowance for loan losses totaled $77.5 million at September 30, 2009, up 10.8 percent from $70.0 million at June 30, 2009 and up 67.0 percent from $46.4 million at September 30, 2008. The allowance at September 30, 2009 was 2.58 percent of total loans, up from 2.35 percent of total loans at June 30, 2009 and 1.58 percent of total loans at September 30, 2008. The allowance for loan losses as a percent of nonperforming loans was 56 percent at September 30, 2009, June 30, 2009 and September 30, 2008.

As part of Chemical Financial Corporation's ongoing credit portfolio monitoring program, the Company makes regular, 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, 2009, June 30, 2009 and September 30, 2008 included commercial, real estate commercial and real estate construction loans totaling $49.6 million, $48.6 million and $27.3 million, respectively, which after being analyzed were 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 $10.1 million in the third quarter of 2009, down from $11.0 million in the second quarter of 2009, but essentially unchanged from the third quarter of 2008. The reduction in noninterest income in the third quarter of 2009, as compared to the second quarter of 2009, was primarily attributable to lower mortgage banking revenue as the refinancing volume of residential real estate loans into long-term fixed interest rate loans significantly declined during the latest quarter. The reduced volume resulted in lower revenue generated from

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the sale of these loans into the secondary market. As compared to the third quarter of 2008, this year's third quarter found increases in mortgage banking revenues largely offsetting decreases in service charges on deposit accounts and trust and investment services revenues. In addition, during the third quarter of 2008, noninterest income included recognition of an other-than-temporary impairment loss of $0.4 million on an investment security. During the third quarter of 2009, the Company had no investment securities gains or losses.

Operating expenses in the third quarter of 2009 were $29.6 million, down slightly from $30.0 million in the second quarter of 2009, but up $2.8 million, or 10.6 percent, from $26.8 million in the third quarter of 2008. FDIC insurance costs were $1.3 million, $3.1 million and $0.1 million during the third quarter of 2009, second quarter of 2009 and third quarter of 2008, respectively. Excluding FDIC insurance costs, operating expenses were up $1.3 million, or 5.0 percent, during the third quarter of 2009 compared to the second quarter of 2009. This increase was largely driven by higher seasonal salaries, group health benefit costs and marketing expenses. The increase over the third quarter of the prior year was attributable primarily to higher FDIC insurance costs and higher costs associated with nonperforming assets and other real estate.

The Company's return on average assets during the third quarter of 2009 was 0.24 percent, up marginally from 0.23 percent in the second quarter of 2009, and up from (0.11) percent in the third quarter of 2008. At September 30, 2009, the Company's book value stood at $20.06 per share versus $20.23 per share at June 30, 2009 and $21.19 per share at September 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 banking offices spread over 31 counties in the lower peninsula of Michigan. At September 30, 2009, the Company had total assets of $4.3 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

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intended to identify such forward-looking statements. Management's determination of the provision and allowance for loan losses, the carrying value of goodwill and mortgage servicing rights, and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary) and management's assumptions concerning pension and post retirement benefit plans involve judgments that are inherently forward-looking. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and on Chemical Financial Corporation, specifically, are also inherently uncertain. 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 forecast ed in such forward-looking statements. Chemical 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 market interest rates; 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 current and future military actions, and current uncertainties and fluctuations in the financial markets and stocks of financial services providers due to concerns about credit availability and concerns ab out 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 2009			December 31 2008			September 30 2008
Assets:
Cash and cash equivalents:
Cash and cash due from banks	$	90,215		$	168,650		$	107,311
Federal funds sold		-			-			2,000
Interest-bearing deposits with unaffiliated banks and others		375,489			4,572			4,579
Total Cash and Cash Equivalents		465,704			173,222			113,890
Investment securities:
Available-for-sale		512,413			449,947			455,158
Held-to-maturity		132,438			97,511			111,261
Total Investment Securities		644,851			547,458			566,419
Other securities		22,128			22,128			22,142
Loans held for sale		7,043			8,463			10,861
Loans:
Commercial		575,062			587,554			574,006
Real estate commercial		782,640			786,404			776,617
Real estate construction		118,116			119,001			133,615
Real estate residential		753,744			839,555			831,700
Consumer		773,902			649,163			612,433
Total Loans		3,003,464			2,981,677			2,928,371
Allowance for loan losses		(77,491	)		(57,056	)		(46,412	)
Net Loans		2,925,973			2,924,621			2,881,959
Premises and equipment		53,172			53,036			51,471
Goodwill		69,908			69,908			69,908
Other intangible assets		5,477			5,241			5,594
Interest receivable and other assets		74,107			70,236			65,842
Total Assets	$	4,268,363		$	3,874,313		$	3,788,086
Liabilities:
Deposits:
Noninterest-bearing	$	533,430		$	524,464		$	531,355
Interest-bearing		2,870,069			2,454,328			2,412,521
Total Deposits		3,403,499			2,978,792			2,943,876
Interest payable and other liabilities		36,891			35,214			23,606
Short-term borrowings		233,693			233,738			224,684
Federal Home Loan Bank advances		115,000			135,025			90,025
Total Liabilities		3,789,083			3,382,769			3,282,191
Shareholders' Equity:
Preferred stock, no par value per share		-			-			-
Common stock, $1 par value per share		23,890			23,881			23,877
Surplus		347,667			346,916			346,652
Retained earnings		119,920			133,578			139,037
Accumulated other comprehensive loss		(12,197	)		(12,831	)		(3,671	)
Total Shareholders' Equity		479,280			491,544			505,895
Total Liabilities and Shareholders' Equity	$	4,268,363		$	3,874,313		$	3,788,086

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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)	2009			2008		2009		2008
Interest Income:
Interest and fees on loans	$	43,289	$	45,211		$	129,079	$	135,272
Interest on investment securities:
Taxable		3,527		5,333			12,053		16,645
Tax-exempt		962		738			2,632		2,120
Dividends on other securities		132		211			562		795
Interest on federal funds sold		-		180			-		1,610
Interest on deposits with unaffiliated banks and others		156		15			345		191
Total Interest Income		48,066		51,688			144,671		156,633
Interest Expense:
Interest on deposits		9,942		12,986			29,917		43,047
Interest on short-term borrowings		251		482			723		1,942
Interest on Federal Home Loan Bank advances		1,210		1,500			3,800		4,902
Total Interest Expense		11,403		14,968			34,440		49,891
Net Interest Income		36,663		36,720			110,231		106,742
Provision for loan losses		14,200		22,000			43,400		31,200
Net Interest Income after
Provision for Loan Losses		22,463		14,720			66,831		75,542
Noninterest Income:
Service charges on deposit accounts		4,949		5,316			14,205		15,097
Trust and investment services revenue		2,306		2,616			7,055		8,108
Other charges and fees for customer services		1,971		1,927			5,766		5,236
Mortgage banking revenue		840		348			3,452		1,408
Investment securities gains		-		6			95		1,722
Other-than-temporary impairment writedown of investment    security		- -		(444	)		- -		(444	)
Other		26		285			334		466
Total Noninterest Income		10,092		10,054			30,907		31,593
Operating Expenses:
Salaries, wages and employee benefits		15,765		15,075			45,865		44,364
Occupancy		2,497		2,472			7,611		7,602
Equipment		2,435		2,346			7,141		6,666
Other		8,885		6,857			28,186		21,847
Total Operating Expenses		29,582		26,750			88,803		80,479
Income (Loss) Before Income Taxes		2,973		(1,976	)		8,935		26,656
Federal Income Tax Expense (Benefit)		500		(951	)		1,450		8,400
Net Income (Loss)	$	2,473	$	(1,025	)	$	7,485	$	18,256
Net income (loss) per share:
Basic	$	0.10	$	(0.04	)	$	0.31	$	0.77
Diluted		0.10		(0.04	)		0.31		0.77
Cash dividends per share		0.295		0.295			0.885		0.885
Average shares outstanding:
Basic		23,890		23,836			23,890		23,827
Diluted		23,912		23,836			23,907		23,839

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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)	2009		2008		2009		2008
Average Balances
Total assets	$	4,111,923	$	3,782,391	$	4,014,060	$	3,777,057
Total interest-earning assets		3,894,124		3,542,031		3,790,588		3,544,785
Total loans		2,985,388		2,889,648		2,971,557		2,834,790
Total deposits		3,235,959		2,923,912		3,138,608		2,922,438
Total interest-bearing liabilities		3,036,864		2,689,248		2,949,836		2,702,251
Total shareholders' equity		480,064		512,504		485,612		510,893

	Three Months Ended September 30				Nine Months Ended September 30
	2009		2008		2009		2008
Key Ratios (annualized where applicable)
Net interest margin (taxable equivalent basis)		3.83%		4.20%		3.96%		4.08%
Efficiency ratio		62.3%		56.5%		62.0%		57.5%
Return on average assets		0.24%		(0.11)%		0.25%		0.65%
Return on average shareholders' equity		2.0%		(0.8)%		2.1%		4.8%
Average shareholders' equity as a
percent of average assets		11.7%		13.5%		12.1%		13.5%
Tangible shareholders' equity as a
percent of total assets						9.7%		11.6%
Total risk-based capital ratio						15.7%		16.7%

	Sept 30 2009		June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008
Credit Quality Statistics
Nonaccrual loans	$	120,186	$	109,944	$	94,737	$	76,466	$	69,719
Loans 90 or more days past due
and still accruing		8,699		10,502		10,240		16,862		13,012
Loans modified under troubled debt restructurings		9,567		3,981		-		-		-
Total nonperforming loans		138,452		124,427		104,977		93,328		82,731
Repossessed assets (RA)		19,067		18,344		20,688		19,923		15,699
Total nonperforming assets		157,519		142,771		125,665		113,251		98,430
Net loan charge-offs (year-to-date)		22,965		16,300		8,494		31,566		24,210
Allowance for loan losses as a
percent of total loans		2.58%		2.35%		2.12%		1.91%		1.58%
Allowance for loan losses as a
percent of nonperforming loans		56%		56%		60%		61%		56%
Nonperforming loans as a
percent of total loans		4.61%		4.18%		3.56%		3.13%		2.83%
Nonperforming assets as a
percent of total loans plus RA		5.21%		4.77%		4.23%		3.77%		3.34%
Nonperforming assets as a
percent of total assets		3.69%		3.57%		3.16%		2.92%		2.60%
Net loan charge-offs as a percent of
average loans (year-to-date, annualized)		1.03%		1.10%		1.15%		1.10%		1.14%

	Sept 30 2009		June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008
Additional Data - Intangibles
Goodwill	$	69,908	$	69,908	$	69,908	$	69,908	$	69,908
Core deposit intangibles		2,480		2,629		2,847		3,050		3,266
Mortgage servicing rights (MSR)		2,997		2,869		2,377		2,191		2,328
Amortization of core deposit intangibles (quarter only)		149		217		203		216		343

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Chemical Financial Corporation Announces Third Quarter Operating Results

Nonperforming Assets (Unaudited)
Chemical Financial Corporation

(Dollars in thousands)	Sept 30 2009		June 30 2009		March 31 2009		Dec 31 2008		Sept 30 2008
Nonaccrual loans:
Commercial	$	21,379	$	20,371	$	16,419	$	16,324	$	13,320
Real estate commercial		58,930		50,067		41,826		27,344		24,230
Real estate construction		18,196		17,935		18,504		15,310		14,513
Real estate residential		15,739		15,905		12,803		12,175		12,869
Consumer		5,942		5,666		5,185		5,313		4,787
Total nonaccrual loans		120,186		109,944		94,737		76,466		69,719
Accruing loans contractually past due 90 days      or more as to interest or principal payments:
Commercial		1,073		1,201		2,581		1,652		1,735
Real estate commercial		2,138		1,542		4,352		9,995		6,586
Real estate construction		675		259		538		759		1,096
Real estate residential		3,839		6,236		1,699		3,369		2,910
Consumer		974		1,264		1,070		1,087		685
Total accruing loans contractually past due      90 days or more as to interest or principal      payments		8,699		10,502		10,240		16,862		13,012
Loans modified under troubled debt restructurings		9,567		3,981		-		-		-
Total nonperforming loans		138,452		124,427		104,977		93,328		82,731
Other real estate and repossessed assets		19,067		18,344		20,688		19,923		15,699
Total nonperforming assets	$	157,519	$	142,771	$	125,665	$	113,251	$	98,430

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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 2009			June 30 2009			March 31 2009			Dec 31 2008			Sept 30 2008
Allowance for loan losses at beginning of period	$	69,956		$	62,562		$	57,056		$	46,412		$	39,664
Provision for loan losses		14,200			15,200			14,000			18,000			22,000
Loans charged off:
Commercial		(1,786	)		(3,289	)		(3,290	)		(3,254	)		(11,468	)
Real estate commercial		(1,703	)		(1,930	)		(2,589	)		(1,645	)		(673	)
Real estate construction		(874	)		(762	)		(1,700	)		(954	)		(923	)
Real estate residential		(1,346	)		(1,043	)		(235	)		(1,106	)		(749	)
Consumer		(1,996	)		(1,544	)		(1,253	)		(1,811	)		(1,776	)
Total loan charge-offs		(7,705	)		(8,568	)		(9,067	)		(8,770	)		(15,589	)
Recoveries of loans previously charged off:
Commercial		349			130			205			1,094			74
Real estate commercial		91			226			87			11			68
Real estate construction		46			-			-			-			-
Real estate residential		231			127			82			83			50
Consumer		323			279			199			226			145
Total loan recoveries		1,040			762			573			1,414			337
Net loan charge-offs		(6,665	)		(7,806	)		(8,494	)		(7,356	)		(15,252	)
Allowance for loan losses at end of period	$	77,491		$	69,956		$	62,562		$	57,056		$	46,412

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Chemical Financial Corporation Announces Third Quarter Operating Results

Selected Quarterly Information (Unaudited)
Chemical Financial Corporation

(In thousands, except per share data)	3rd Qtr. 2009	2nd Qtr. 2009	1st Qtr. 2009	4th Qtr. 2008		3rd Qtr. 2008
Summary of Operations
Interest income	$48,066	$48,283	$48,322	$51,703		$51,688
Interest expense	11,403	11,305	11,732	13,192		14,968
Net interest income	36,663	36,978	36,590	38,511		36,720
Provision for loan losses	14,200	15,200	14,000	18,000		22,000
Net interest income after provision
for loan losses	22,463	21,778	22,590	20,511		14,720
Noninterest income	10,092	10,958	9,857	9,604		10,054
Operating expenses	29,582	30,016	29,205	28,629		26,750
Income (loss) before income taxes	2,973	2,720	3,242	1,486		(1,976	)
Federal income tax expense (benefit)	500	426	524	(100	)	(951	)
Net income (loss)	$2,473	$2,294	$2,718	$1,586		$(1,025	)
Per Common Share Data
Net income (loss):
Basic	$0.10	$0.10	$0.11	$0.06		$(0.04	)
Diluted	0.10	0.10	0.11	0.06		(0.04	)
Cash dividends	0.295	0.295	0.295	0.295		0.295
Book value - period-end	20.06	20.23	20.40	20.58		21.19
Market value - period-end	21.79	19.91	20.81	27.88		31.14

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