MIDLAND, Mich., Jan. 22 /PRNewswire-FirstCall/ -- Aloysius J. Oliver,
Chairman of Chemical Financial Corporation (Nasdaq: CHFC), today announced
record fourth quarter net income of $13,777,000, up 35.3% over net income of
$10,181,000 for the fourth quarter of 2000. On a per share diluted basis, net
income for the quarter ending December 31, 2001 was $.61 per share, an
increase of 35.6% over the $.45 per share earned in the fourth quarter of
2000.
The growth in net income in the fourth quarter, as compared to the
comparable period in 2000, resulted from a 24% increase in net interest income
and from a 375% increase in mortgage banking revenue.
For the year ended December 31, 2001, the Corporation earned net operating
income of $49,800,000, or $2.21 per share on a diluted basis, as compared to
net income of $40,801,000, or $1.81 per share on a diluted basis, for the year
2000. This represents an increase of 22.1% in operating earnings per share.
Net operating income in 2001 excludes pre-tax non-recurring expenses of
$9,167,000, or $7,077,000 on an after-tax basis, incurred in the first quarter
of 2001 to complete the merger with Shoreline Financial Corporation and for
internal bank consolidations. Including the merger related and consolidation
charges, the Corporation reported net income for the year 2001 of $42,723,000,
or $1.89 per share.
The Corporation's return on average assets and return on average equity
was 1.55% and 13.5%, respectively, for the twelve months ended December 31,
2001, as compared to 1.36% and 12.0%, respectively, for the twelve months
ended December 31, 2000.
2001 was an unprecedented year in the history of the Corporation. The
growth of the Corporation through mergers and acquisitions was the largest in
the history of the organization. During 2001, the Corporation completed the
merger with Shoreline Financial Corporation, the acquisition of four branch
banking offices from Old Kent and Fifth Third Banks and the acquisition of
Bank West Financial Corporation. These transactions added $1.5 billion in
total assets to the Corporation; thereby increasing total assets 77% over
total assets of the Corporation as of December 31, 2000, unadjusted for the
pooling of interests accounting method.
Total assets at December 31, 2001 were $3.5 billion, up 14.5%, from
December 31, 2000. Total deposits at December 31, 2001 were $2.8 billion, up
14.2% over total deposits at December 31, 2000. Total loans increased 18.1%
during the latest twelve months, from $1.8 billion at December 31, 2000, to
$2.2 billion in outstanding loans at December 31, 2001.
The Corporation's provision for loan losses for the three and twelve
months ended December 31, 2001 was $730,000 and $2,004,000, respectively, as
compared to net loan losses during the same time periods of $878,000 and
$1,655,000, respectively. As of December 31, 2001, the allowance for loan
losses was $30,994,000 and represented 1.42% of total loans. Nonperforming
loans were $13.1 million, or .60% of total loans, at the current quarter end.
Shareholders' equity at December 31, 2001 was $389.5 million, or $17.30
per share, and represented 11.2% of total assets at the current quarter end.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's three subsidiary banks operate 128
"Chemical Bank" offices and 2 loan production offices spread over 33 counties
in the lower peninsula of Michigan. CFC Data Corp, Midland, is the Company's
wholly owned data processing subsidiary.
Chemical Financial Corporation common stock trades on the NASDAQ Stock
Market under the symbol CHFC and is one of the issues comprising the NASDAQ
Financial 100 index.
Forward Looking Statements
This press release contains forward-looking statements. Words such as
"anticipates," "believes," "estimates," "expects," "intends," "should,"
"will," variations of such words and similar expressions are intended to
identify forward-looking statements. These statements reflect management's
current beliefs as to the expected outcomes of future events and are not
guarantees of future performance. These statements involve certain risks,
uncertainties and assumptions 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. Factors that could cause a
difference include, among others: changes in the national and local economies
or market conditions; changes in interests rates and banking regulations; the
impact of competition from traditional or new sources; and the possibility
that anticipated cost savings and revenue enhancements from mergers and
acquisitions and bank consolidations may not be fully realized at all or
within the expected time frames. These and other factors that may emerge
could cause decisions and actual results to differ materially from current
expectations. Chemical undertakes no obligation to revise, update, or clarify
forward-looking statements to reflect events or conditions after the date of
this release.
Consolidated Balance Sheets (Unaudited)
Chemical Financial Corporation and Subsidiaries
December 31
(In thousands) 2001 2000
Assets
Cash and demand deposits due from banks $150,546 $139,205
Federal funds sold 86,800 108,325
Interest-bearing deposits with
unaffiliated banks 40,591 5,083
Investment securities taxable 872,748 809,619
Investment securities nontaxable 59,527 65,863
Total Investment Securities 932,275 875,482
Commercial and agricultural loans 332,055 287,971
Real estate construction loans 137,500 87,419
Real estate commercial loans 432,747 313,245
Real estate residential loans 769,272 776,545
Consumer loans 510,967 383,450
Total Loans 2,182,541 1,848,630
Less: Allowance for loan losses 30,994 26,883
Net Loans 2,151,547 1,821,747
Premises and equipment 42,397 37,219
Intangible assets 42,615 21,482
Other assets 41,535 38,845
Total Assets $3,488,306 $3,047,388
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $460,619 $401,938
Interest-bearing deposits 2,328,905 2,041,217
Total Deposits 2,789,524 2,443,155
Other borrowings 118,584 104,451
Interest payable and other liabilities 22,849 25,066
FHLB advances 167,893 116,806
Total Liabilities 3,098,850 2,689,478
Shareholders' Equity:
Common stock, $1 par value 22,514 21,399
Surplus 290,656 257,856
Retained earnings 64,792 75,524
Accumulated other comprehensive income 11,494 3,131
Total Shareholders' Equity 389,456 357,910
Total Liabilities and Shareholders'
Equity $3,488,306 $3,047,388
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Quarter Ended Twelve Months Ended
December 31, December 31,
(In thousands, except
per share data) 2001 2000 2001 2000
Interest Income
Interest and fees on loans $43,478 $38,688 $161,422 $146,910
Interest on investment securities:
Taxable 11,908 12,932 49,184 52,667
Nontaxable 806 904 3,359 3,572
Total Interest on Securities 12,714 13,836 52,543 56,239
Interest on federal funds sold 588 1,998 4,604 7,092
Interest on deposits with
unaffiliated banks 227 107 681 623
Total Interest Income 57,007 54,629 219,250 210,864
Interest Expense
Interest on deposits 18,407 22,612 79,227 85,203
Interest on other borrowings 353 1,191 2,670 4,227
Interest on FHLB advances 2,281 1,790 7,285 6,526
Total Interest Expense 21,041 25,593 89,182 95,956
Net Interest Income 35,966 29,036 130,068 114,908
Provision for loan losses 730 857 2,004 1,587
Net Interest Income after
provision for loan losses 35,236 28,179 128,064 113,321
Noninterest Income
Trust services revenue 1,606 1,799 6,544 6,865
Service charges on deposit accounts 2,844 2,697 10,838 10,133
Other charges and fees for customer
services 1,783 1,532 6,947 6,336
Mortgage banking income 2,711 571 6,370 1,704
Investment securities gains (losses) 116 (150) 530 (58)
Other 253 156 644 515
Total Noninterest Income 9,313 6,605 31,873 25,495
Operating Expenses
Salaries and employee benefits 12,670 11,374 48,258 45,472
Occupancy and equipment 4,524 3,051 14,620 12,819
Other 6,828 5,099 22,552 20,003
Merger related/consolidation - - 9,167 -
Total Operating Expenses 24,022 19,524 94,597 78,294
Income Before Income Taxes 20,527 15,260 65,340 60,522
Federal income taxes 6,750 5,079 22,617 19,721
Net Income $13,777 $10,181 $42,723 $40,801
Net income per share:
Basic $0.62 $0.45 $1.90 $1.81
Diluted 0.61 0.45 1.89 1.81
Diluted - operating income 0.61 0.45 2.21 1.81
Cash dividends per share 0.23 0.21 0.91 0.84
Average shares
outstanding:
Basic 22,505 22,465 22,501 22,495
Diluted 22,583 22,506 22,564 22,552
Financial Summary
Chemical Financial Corporation and Subsidiaries
Quarter Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Average Balances
(Dollars in thousands)
Total assets $3,470,794 $3,036,202 $3,213,561 $3,000,505
Total earning assets 3,271,830 2,853,414 3,026,296 2,813,073
Total loans 2,204,971 1,838,427 1,996,803 1,771,306
Total deposits 2,776,049 2,449,023 2,582,480 2,431,952
Total shareholders' equity 388,224 355,983 369,829 340,181
Shareholders' equity/assets 11.2% 11.7% 11.5% 11.3%
At Period End (Dollars in thousands)
Credit Quality Statistics
Nonaccrual loans $6,897 $7,268
Loans 90 or more days past due
and still accruing 6,181 1,406
Restructured loans 0 17
Total nonperforming loans 13,078 8,691
Repossessed assets acquired (RAA) 728 831
Total nonperforming assets 13,806 9,522
Net loans charged off 1,655 878
Allowance for loan losses ratio 1.42% 1.45%
Allowance for loan losses as a
percent of nonperforming
loans 237% 309%
Nonperforming loans as a percent
of total loans 0.60% 0.47%
Nonperforming assets as a percent
of total loans plus RAA 0.63% 0.51%
Net loans charged off as a percent
of average loans (annualized) 0.08% 0.05%
Performance Ratios (annualized)
Net interest margin (FTE) 4.43% 4.14% 4.38% 4.18%
Return on average assets 1.57% 1.33% 1.33% 1.36%
Return on average assets
- net operating income (1) 1.57% 1.33% 1.55% 1.36%
Return on average shareholders'
equity 14.1% 11.4% 11.6% 12.0%
Return on average shareholders'
equity - net operating
income (1) 14.1% 11.4% 13.5% 12.0%
Selected Quarterly Information
Chemical Financial Corporation and Subsidiaries
4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr.
2001 2001 2001 2001 2000
Summary of Operations
(thousands)
Interest income $57,007 $55,391 $53,300 $53,552 $54,629
Interest expense 21,041 21,969 22,099 24,073 25,593
Net interest income 35,966 33,422 31,201 29,479 29,036
Provision for loan
losses 730 432 437 405 857
Net interest income
after provision for
loan losses 35,236 32,990 30,764 29,074 28,179
Noninterest income 9,313 7,894 7,644 7,022 6,605
Noninterest expense
before special
charge 24,022 21,393 20,234 19,781 19,524
Special charge:
Before tax - - - 9,167 -
After tax - - - 7,076 -
Income taxes 6,750 6,515 6,093 3,259 5,079
Net income 13,777 12,976 12,081 3,889 10,181
Net operating
income (1) 13,777 12,976 12,081 10,965 10,181
Per Common Share Data
Net income:
Basic $0.62 $0.58 $0.53 $0.17 $0.45
Diluted $0.61 $0.58 $0.53 $0.17 $0.45
Diluted - net
operating
income (1) $0.61 $0.58 $0.53 $0.49 $0.45
Cash dividends 0.23 0.23 0.23 0.23 0.21
Book value 17.30 17.06 16.46 16.10 15.93
(1) Net operating income is based on net income that excludes merger
related and consolidation costs incurred in connection with the merger with
Shoreline Financial Corporation and the Corporation's internal consolidation
of nine of its eleven bank charters into two.
SOURCE Chemical Financial Corporation
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Related links:
http://chemicalbankmi.com
Company News On-Call:
http://www.prnewswire.com/comp/157448.html
CONTACT:
David B. Ramaker, +1-989-839-5269, or Lori A.
Gwizdala, +1-989-839-5358, both of Chemical Financial Corporation
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