TCF Financial 8-K Chemical Financial Corporation Reports First Quarter 2011 Results

EXHIBIT 99.1

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

Chemical Financial Corporation Reports First Quarter 2011 Results

MIDLAND, MI, April 18, 2011 -- -- Chemical Financial Corporation (NASDAQ:CHFC) today announced 2011 first quarter net income of $9.2 million, or $0.33 per diluted share, compared to 2010 fourth quarter net income of $7.5 million, or $0.27 per diluted share, and $2.3 million, or $0.10 per diluted share, in the first quarter of 2010.

"Reported first quarter 2011 earnings were more than triple the prior year's first quarter results and represent our highest quarterly per share net income level in almost three years. This financial performance is reflective of further credit quality stabilization, augmented by the earnings impact of our April 30, 2010 acquisition of O.A.K. Financial Corporation (OAK)," said David B. Ramaker, Chairman, Chief Executive Officer, and President. "While we are encouraged by the positive nature of these early trends, we remain cautious as a result of the challenges that our industry and the overall economy continue to face."

"Having said that, we believe we are well positioned to capitalize on opportunities to expand our market share and leadership role in Michigan's consolidating banking industry, which we believe will lead to enhanced profitability and growth in the future," added Ramaker.

Higher net income in the first quarter of 2011, compared to the fourth quarter of 2010, was attributable primarily to a lower provision for loan losses and lower operating expenses.

The Company's return on average assets during the first quarter of 2011 was 0.70 percent, up from 0.57 percent in the fourth quarter of 2010 and 0.22 percent in the first quarter of 2010. The return on average equity was 6.6 percent in the first quarter of 2011, up from 5.3 percent in the fourth quarter of 2010 and 2.0 percent in the first quarter of 2010.

The acquisition of OAK and its subsidiary, Byron Bank, resulted in increases in the Company's total assets of $820 million, total loans of $627 million, total deposits of $693 million (core deposits of $495 million) and goodwill of $44 million as of the acquisition date.  Assets and liabilities acquired in the OAK transaction were recorded at fair value. The consolidation and systems conversion of Byron Bank into Chemical Bank was completed in the third quarter of 2010.

Net interest income was $45.2 million in the first quarter of 2011, down from $45.9 million in the fourth quarter of 2010 and up from $36.4 million in the first quarter of 2010. The net interest margin (on a tax-equivalent basis) in the first quarter of 2011 was 3.78 percent, compared to 3.79 percent in the fourth quarter of 2010 and 3.72 percent in the first quarter of 2010. The decrease in net interest income in the first quarter of 2011 compared to the fourth quarter of 2010 was primarily attributable to a fewer number of days in the quarter over which net interest income

was calculated. The increase in net interest income during the first quarter of 2011 compared to the same quarter in 2010 was primarily attributable to the acquisition of OAK and a decrease in the average cost of deposits related to maturing higher-cost customer certificates of deposit and maturing higher-cost wholesale funding.

The provision for loan losses was $7.5 million in the first quarter of 2011, compared to $10.3 million in the fourth quarter of 2010 and $14.0 million in the first quarter of 2010. First quarter 2011 net loan charge-offs were $7.4 million, compared to $10.3 million in the fourth quarter of 2010 and $10.7 million in the first quarter of 2010.

Total noninterest income was $10.8 million in the first quarter of 2011, compared to $10.9 million in the fourth quarter of 2010 and $9.4 million in the first quarter of 2010. The decrease in the first quarter of 2011, as compared to the fourth quarter of 2010, was due primarily to lower service charges on deposit accounts. Service charges on deposit accounts were $0.3 million less in the first quarter of 2011, as compared to the fourth quarter of 2010, due primarily to the impact of changes in regulatory requirements regarding the processing of certain electronic ATM and debit card transactions. Service charges on deposits accounts were $4.1 million in the first quarter of 2011; by comparison, service charges on deposit accounts in the second quarter of 2010, prior to the change in regulatory requirements, were $5.1 million.

Operating expenses were $35.4 million in the first quarter of 2011, down from $36.7 million in the fourth quarter of 2010 and up from $29.2 million in the first quarter of 2010. The decrease in operating expenses in the first quarter of 2011, as compared to the fourth quarter of 2010, was primarily attributable to a reduction in incentive based compensation and credit-related operating expenses. Credit-related operating expenses declined to $2.1 million in the first quarter of 2011, down from $2.8 million incurred in the fourth quarter of 2010 and up from $1.7 million incurred in the first quarter of 2010. The increase in operating expenses during the first quarter of 2011, compared to the first quarter of 2010, was primarily attributable to the acquisition of OAK. The Company's first quarter 2011 efficiency ratio was 61.8 percent, compared to 63.3 percent in the fourth quarter of 2010 and 62.4 percent in the first quarter of 2010.  

Total assets were $5.34 billion at March 31, 2011, up from $5.25 billion at December 31, 2010 and $4.29 billion at March 31, 2010. The increase in assets during the first quarter of 2011, as compared to the fourth quarter of 2010, was largely attributable to an increase in cash and cash equivalents from seasonal increases in deposits and repurchase agreements of municipal customers. Total loans were $3.68 billion at March 31, 2011 and December 31, 2010, compared to $2.99 billion at March 31, 2010. Investment securities were $750 million at March 31, 2011, compared to $744 million at December 31, 2010 and $691 million at March 31, 2010. The increases in assets, loans and investment securities during the twelve months ended March 31, 2011 were primarily attributable to the acquisition of OAK.

Total deposits were $4.38 billion at March 31, 2011, compared to $4.33 billion at December 31, 2010 and $3.47 billion at March 31, 2010. The Company experienced an increase of $51 million, or 1.2 percent, in total deposits during the quarter ended March 31, 2011, with the majority attributable to a seasonal increase in municipal customer deposits. The Company continues to maintain significant amounts of funds generated from deposit growth in interest-bearing balances

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at the Federal Reserve Bank (FRB), thereby further enhancing the Company's liquidity position, with $520 million in balances held at the FRB at March 31, 2011, compared to $440 million at December 31, 2010. The Company used a portion of its liquidity to pay off maturing Federal Home Loan Bank (FHLB) advances and brokered deposits acquired in the OAK transaction and intends to continue to pay off these wholesale funding sources as they mature. FHLB advances totaled $72.9 million at March 31, 2011, down from $74.1 million at December 31, 2010 and $80.0 million at March 31, 2010. Brokered deposits acquired in the OAK transaction totaled $151 million at March 31, 2011, compared to $163 million at December 31, 2010 and $182 million at September 30, 2010.

At March 31, 2011, the Company's tangible equity to assets ratio and total risk-based capital ratio were 8.5 percent and 13.0 percent, respectively, compared to 8.6 percent and 12.9 percent, respectively, at December 31, 2010. At March 31, 2011, the Company's book value was $20.54 per share, compared to $20.41 per share at December 31, 2010.

The credit quality of the Company's loan portfolio is showing signs of stabilization. At March 31, 2011, the Company's originated loan portfolio, representing all loans other than those acquired in the OAK transaction, had nonaccrual loans and loans past due 90 days or more totaling $108.5 million, compared to $110.4 million at December 31, 2010 and $108.1 million at March 31, 2010. The Company's nonperforming loans at March 31, 2011 also included commercial, real estate commercial and real estate residential loans that have been modified due to financial difficulties being experienced by customers of $37.4 million, unchanged from $37.4 million at December 31, 2010 and up from $22.0 million at March 31, 2010. In addition, the carrying value (net of a fair value discount that was recognized at acquisition) of acquired loans that were not performing in accordance with their contractual terms totaled $17.7 million at March 31, 2011, compared to $21.4 million at December 31, 2010.

Other real estate and repossessed assets totaled $26.4 million at March 31, 2011, compared to $27.5 million at December 31, 2010 and $18.8 million at March 31, 2010. The net decrease in the first quarter of 2011 was primarily attributable to the sales of numerous properties that were partially offset by additions of foreclosed properties during the quarter.

At March 31, 2011, the allowance for loan losses was $89.7 million, or 2.85 percent of originated loans, down slightly from 2.86 percent at December 31, 2010, although up from 2.82 percent at March 31, 2010. The allowance for loan losses as a percentage of nonperforming loans was 61 percent at March 31, 2011, unchanged from 61 percent at December 31, 2010, and down from 65 percent at March 31, 2010. At March 31, 2011, nonperforming loans as a percentage of total loans were 3.96 percent, down from 4.01 percent at December 31, 2010 and 4.35 percent at March 31, 2010.

Chemical Financial Corporation is the second-largest bank holding company headquartered in Michigan. The Company operates through a single subsidiary bank, Chemical Bank, with 142 banking offices spread over 32 counties in the lower peninsula of Michigan. At March 31, 2011, the Company had total assets of $5.3 billion. Chemical Financial Corporation's common stock trades on The NASDAQ Stock Market under the symbol CHFC and is one of the issues

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comprising the NASDAQ Global Select Market. More information about the Company is available by visiting the investor relations section of its website at www.chemicalbankmi.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and Chemical Financial Corporation. Words such as "believe," "encouraged," "intend," "will," "continue," "trends," "cautious," "future," "enhanced," "signs" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to the credit quality of our loan portfolio, future levels of nonperforming loans, future opportunities for acquisitions, future opportunities to expand our market share, future funding sources, future growth opportunities and future profitability levels. All statements referencing future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the carrying value of acquired loans, goodwill, mortgage servicing rights and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involve judgments that are inherently forward-looking. Management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated or that other real estate owned can be sold for its carrying value. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and on the Company, 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 forecasted in such forward-looking statements. The Company 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 of the Company's Annual Report on Form 10-K for the year ended December 31, 2010. 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 First Quarter Operating Results

Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation

(In thousands, except per share data)	March 31 2011			December 31 2010			March 31 2010
Assets:
Cash and cash equivalents:
Cash and cash due from banks	$	116,445		$	91,403		$	80,791
Interest-bearing deposits with unaffiliated banks and others		525,174			444,762			366,580
Total cash and cash equivalents		641,619			536,165			447,371
Investment securities:
Available-for-sale		585,992			578,610			565,823
Held-to-maturity		163,890			165,400			124,893
Total Investment Securities		749,882			744,010			690,716
Other securities		27,133			27,133			22,128
Loans held-for-sale		4,033			20,479			4,943
Loans:
Commercial		821,115			818,997			580,656
Real estate commercial		1,074,842			1,076,971			790,009
Real estate construction and land development		139,439			142,620			124,853
Real estate residential		809,085			798,046			738,911
Consumer installment and home equity		838,035			845,028			753,886
Total Loans		3,682,516			3,681,662			2,988,315
Allowance for loan losses		(89,674	)		(89,530	)		(84,155	)
Net Loans		3,592,842			3,592,132			2,904,160
Premises and equipment		65,135			65,961			54,438
Goodwill		113,414			113,414			69,908
Other intangible assets		13,060			13,521			5,242
Interest receivable and other assets		127,977			133,394			93,723
Total Assets	$	5,335,095		$	5,246,209		$	4,292,629
Liabilities:
Deposits:
Noninterest-bearing	$	766,876		$	753,553		$	558,470
Interest-bearing		3,615,395			3,578,212			2,915,869
Total Deposits		4,382,271			4,331,765			3,474,339
Interest payable and other liabilities		30,038			37,533			28,264
Short-term borrowings		286,193			242,703			237,712
Federal Home Loan Bank advances		72,854			74,130			80,000
Total Liabilities		4,771,356			4,686,131			3,820,315
Shareholders' Equity:
Preferred stock, no par value per share		-			-			-
Common stock, $1 par value per share		27,451			27,440			23,903
Additional paid-in capital		429,990			429,511			348,136
Retained earnings		120,935			117,238			112,900
Accumulated other comprehensive loss		(14,637	)		(14,111	)		(12,625	)
Total Shareholders' Equity		563,739			560,078			472,314
Total Liabilities and Shareholders' Equity	$	5,335,095		$	5,246,209		$	4,292,629

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Chemical Financial Corporation Announces First Quarter Operating Results

Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation

	Three Months Ended March 31
(In thousands, except per share data)	2011		2010
Interest Income:
Interest and fees on loans	$	49,440	$	41,718
Interest on investment securities:
Taxable		2,324		3,124
Tax-exempt		1,479		982
Dividends on other securities		123		82
Interest on deposits with unaffiliated banks and others		309		216
Total Interest Income		53,675		46,122
Interest Expense:
Interest on deposits		7,878		8,700
Interest on short-term borrowings		150		160
Interest on Federal Home Loan Bank advances		442		874
Total Interest Expense		8,470		9,734
Net Interest Income		45,205		36,388
Provision for loan losses		7,500		14,000
Net Interest Income after Provision for Loan Losses		37,705		22,388
Noninterest Income:
Service charges on deposit accounts		4,096		4,391
Wealth management revenue		2,766		2,292
Other charges and fees for customer services		2,658		2,008
Mortgage banking revenue		1,064		718
Other		188		31
Total Noninterest Income		10,772		9,440
Operating Expenses:
Salaries, wages and employee benefits		18,325		14,507
Occupancy		3,338		2,837
Equipment and software		2,722		2,714
Other		11,004		9,131
Total Operating Expenses		35,389		29,189
Income Before Income Taxes		13,088		2,639
Federal Income Tax Expense		3,900		350
Net Income	$	9,188	$	2,289
Net income per common share:
Basic	$	0.33	$	0.10
Diluted		0.33		0.10
Cash dividends declared per common share		0.20		0.20
Average common shares outstanding:
Basic		27,451		23,903
Diluted		27,482		23,921

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Chemical Financial Corporation Announces First Quarter Operating Results

Financial Summary (Unaudited)
Chemical Financial Corporation

	Three Months Ended March 31
(Dollars in thousands)	2011		2010
Average Balances
Total assets	$	5,302,558	$	4,280,304
Total interest-earning assets		4,963,384		4,051,440
Total loans		3,672,301		2,984,305
Total deposits		4,362,774		3,451,829
Total interest-bearing liabilities		3,942,406		3,224,427
Total shareholders' equity		560,661		474,278

	Three Months Ended March 31
	2011		2010
Key Ratios (annualized where applicable)
Net interest margin (taxable equivalent basis)		3.78%		3.72%
Efficiency ratio		61.8%		62.4%
Return on average assets		0.70%		0.22%
Return on average shareholders' equity		6.6%		2.0%
Average shareholders' equity as a
percent of average assets		10.6%		11.1%
Tangible shareholders' equity as a
percent of total assets		8.5%		9.5%
Total risk-based capital ratio		13.0%		15.5%

	March 31 2011		Dec 31 2010		Sept 30 2010		June 30 2010		March 31 2010
Credit Quality Statistics
Originated Loans	$	3,143,489	$	3,129,399	$	3,045,872	$	3,034,515	$	2,988,315
Acquired Loans		539,027		552,263		594,999	��	613,446		-
Nonperforming Loans:
Nonaccrual loans		106,296		102,962		112,832		107,981		100,882
Accruing loans contractually past due       90 days or more as to interest or       principal payments		2,196		7,408		6,526		8,301		7,204
Troubled debt restructurings -       commercial and real estate commercial		15,201		15,057		9,834		7,791		6,243
Troubled debt restructurings - real estate       residential		22,166		22,302		18,712		18,856		15,799
Total nonperforming loans		145,859		147,729		147,904		142,929		130,128
Other real estate and repossessed assets    (ORE)		26,355		27,510		22,704		21,724		18,813
Total nonperforming assets		172,214		175,239		170,608		164,653		148,941
Net loan charge-offs (year-to-date)		7,356		36,911		26,620		18,039		10,686
Allowance for loan losses as a
percent of total originated loans		2.85%		2.86%		2.94%		2.95%		2.82%
Allowance for loan losses as a
percent of nonperforming loans		61%		61%		61%		63%		65%
Nonperforming loans as a
percent of total loans		3.96%		4.01%		4.06%		3.92%		4.35%
Nonperforming assets as a
percent of total loans plus ORE		4.64%		4.72%		4.66%		4.49%		4.95%
Nonperforming assets as a
percent of total assets		3.23%		3.34%		3.16%		3.22%		3.47%
Net loan charge-offs as a percent of
average loans (year-to-date, annualized)		0.80%		1.07%		1.06%		1.12%		1.43%

	March 31 2011		Dec 31 2010		Sept 30 2010		June 30 2010		March 31 2010
Additional Data - Intangibles
Goodwill	$	113,414	$	113,414	$	110,266	$	109,149	$	69,908
Core deposit intangibles		9,024		9,406		10,352		10,791		2,183
Mortgage servicing rights (MSR)		3,832		3,782		3,718		3,641		3,059
Other intangible assets		204		333		462		591		-
Amortization of core deposit intangibles    (quarter only)		382		436		439		337		148

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Chemical Financial Corporation Announces First Quarter Operating Results

Nonperforming Assets (Unaudited)
Chemical Financial Corporation

(Dollars in thousands)	March 31 2011		Dec 31 2010		Sept 30 2010		June 30 2010		March 31 2010
Nonperforming Loans:
Nonaccrual loans:
Commercial	$	15,672	$	16,668	$	19,440	$	21,643	$	18,382
Real estate commercial		59,931		60,558		59,353		57,085		51,865
Real estate construction and land        development		9,414		8,967		16,085		13,397		15,870
Real estate residential		15,505		12,083		13,485		12,499		10,913
Consumer installment and home equity		5,774		4,686		4,469		3,357		3,852
Total nonaccrual loans		106,296		102,962		112,832		107,981		100,882
Accruing loans contractually past due      90 days or more as to interest or      principal payments:
Commercial		455		530		909		2,108		2,576
Real estate commercial		459		1,350		2,265		2,030		1,483
Real estate construction and land        development		-		1,220		-		436		988
Real estate residential		191		3,253		2,316		2,842		1,636
Consumer installment and home equity		1,091		1,055		1,036		885		521
Total accruing loans contractually past        due 90 days or more as to interest or        principal payments		2,196		7,408		6,526		8,301		7,204
Loans modified under troubled debt      restructurings:
Commercial and real estate commercial		15,201		15,057		9,834		7,791		6,243
Real estate residential loans		22,166		22,302		18,712		18,856		15,799
Total loans modified under troubled        debt restructurings		37,367		37,359		28,546		26,647		22,042
Total nonperforming loans		145,859		147,729		147,904		142,929		130,128
Other real estate and repossessed assets		26,355		27,510		22,704		21,724		18,813
Total nonperforming assets	$	172,214	$	175,239	$	170,608	$	164,653	$	148,941

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Chemical Financial Corporation Announces First Quarter Operating Results

Summary of Loan Loss Experience (Unaudited)
Chemical Financial Corporation

	Three Months Ended
(Dollars in thousands)	March 31 2011			Dec 31 2010			Sept 30 2010			June 30 2010			March 31 2010
Allowance for loan losses at beginning of      period	$	89,530		$	89,521		$	89,502		$	84,155		$	80,841
Provision for loan losses		7,500			10,300			8,600			12,700			14,000
Loans charged off:
Commercial		(1,976	)		(2,797	)	��	(2,830	)		(1,438	)		(1,365	)
Real estate commercial		(3,875	)		(3,828	)		(2,586	)		(2,108	)		(2,289	)
Real estate construction and land        development		(63	)		(1,111	)		(146	)		(638	)		(644	)
Real estate residential		(944	)		(1,349	)		(1,767	)		(1,752	)		(3,173	)
Consumer installment and home equity		(1,784	)		(1,961	)		(1,916	)		(2,361	)		(4,427	)
Total loan charge-offs		(8,642	)		(11,046	)		(9,245	)		(8,297	)		(11,898	)
Recoveries of loans previously charged off:
Commercial		215			165			212			171			373
Real estate commercial		87			189			38			29			170
Real estate construction and land        development		-			-			19			1			-
Real estate residential		456			74			109			175			185
Consumer installment and home equity		528			327			286			568			484
Total loan recoveries		1,286			755			664			944			1,212
Net loan charge-offs		(7,356	)		(10,291	)		(8,581	)		(7,353	)		(10,686	)
Allowance for loan losses at end of period	$	89,674		$	89,530		$	89,521		$	89,502		$	84,155

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Chemical Financial Corporation Announces First Quarter Operating Results

Selected Quarterly Information (Unaudited)
Chemical Financial Corporation

(Dollars in thousands, except per share data)	1st Qtr. 2011	4th Qtr. 2010	3rd Qtr. 2010	2nd Qtr. 2010	1st Qtr. 2010
Summary of Operations
Interest income	$ 53,675	$ 55,348	$ 55,998	$ 52,962	$ 46,122
Interest expense	8,470	9,400	10,105	10,071	9,734
Net interest income	45,205	45,948	45,893	42,891	36,388
Provision for loan losses	7,500	10,300	8,600	12,700	14,000
Net interest income after provision
for loan losses	37,705	35,648	37,293	30,191	22,388
Noninterest income	10,772	10,913	11,119	11,000	9,440
Operating expenses	35,389	36,747	36,216	34,650	29,189
Income before income taxes	13,088	9,814	12,196	6,541	2,639
Federal income tax expense	3,900	2,275	3,325	2,150	350
Net income	$  9,188	$  7,539	$  8,871	$  4,391	$  2,289
Net interest margin	3.78%	3.79%	3.80%	3.88%	3.72%
Per Common Share Data
Net income:
Basic	$   0.33	$   0.27	$   0.32	$   0.17	$   0.10
Diluted	0.33	0.27	0.32	0.17	0.10
Cash dividends	0.20	0.20	0.20	0.20	0.20
Book value - period-end	20.54	20.41	20.44	20.27	19.76
Market value - period-end	19.93	22.15	20.64	21.78	23.62

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