MIDLAND, Mich., April 15 /PRNewswire-FirstCall/ -- Aloysius J. Oliver,
Chairman of Chemical Financial Corporation (Nasdaq: CHFC), today announced
first quarter net income of $13,710,000, or $.61 per diluted share, compared
with net operating income of $10,965,000, or $.49 per diluted share for the
first quarter of 2001. This represents an increase of 25% in operating
earnings per share. On the same basis, returns on average assets and average
equity during the first quarter of 2002 were 1.57% and 14.1%, respectively, as
compared with 1.46% and 12.7% for the first quarter of 2001. Net operating
income for the first quarter of 2001 excludes pretax non-recurring expenses
totaling $9,167,000, or $7,076,000 on an after tax basis for merger related
and consolidation costs incurred to complete the merger with Shoreline
Financial Corporation and other internal company consolidations. Comparing
net income for the first quarter of 2001, which includes the merger related
and consolidated charges versus first quarter 2002, net income is up over
252%.
The growth in net income in the first quarter, as compared to the
comparable period in 2001 resulted from substantial increases in both net
interest income and mortgage banking revenue.
Total assets of the Corporation at March 31, 2002 were $3.5 billion, up
14.7% over the $3.1 billion in total assets reported at March 31, 2001. Total
deposits at March 31, 2002 were $2.8 billion, up 14.0% over total deposits of
$2.5 billion at March 31, 2001. Total loans increased 11.3% during the latest
twelve months, from $1.9 billion at March 31, 2001, to $2.1 billion in
outstanding loans at March 31, 2002.
The Corporation's provision for loan losses for the quarter ended March
31, 2001 was $654,000 as compared to net losses of $757,000. As of March 31,
2002, the allowance for loan losses was $30,889,000 and represented 1.48% of
total loans. Non-performing loans were $13.4 million, or .64% of total loans
at the current quarter end.
Shareholder equity at March 31, 2002 was $392.0 million, or $17.40 per
share, and represented 11.1% of total assets and a tangible equity to asset
ratio of 10% at the end of the current quarter.
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 Statements of Financial Position
Chemical Financial Corporation and Subsidiaries
(Unaudited) (Unaudited)
March 31, December 31, March 31,
(In thousands) 2002 2001 2001
Assets
Cash and demand deposits due from banks $116,846 $150,546 $104,127
Federal funds sold 112,925 86,800 134,625
Interest-bearing deposits with
unaffiliated banks 75,200 40,591 11,815
Investment securities taxable 977,573 872,748 819,479
Investment securities nontaxable 57,922 59,527 64,014
Total Investment Securities 1,035,495 932,275 883,493
Commercial and agricultural loans 311,643 332,055 292,666
Real estate construction loans 129,254 137,500 91,376
Real estate commercial loans 451,947 432,747 329,550
Real estate residential loans 691,382 769,272 761,136
Consumer loans 498,610 510,967 397,445
Total Loans 2,082,836 2,182,541 1,872,173
Less: Allowance for loan losses 30,889 30,994 27,264
Net Loans 2,051,947 2,151,547 1,844,909
Premises and equipment 43,192 42,397 37,867
Intangible assets 42,711 42,615 20,928
Other assets 43,454 41,535 33,539
Total Assets $3,521,770 $3,488,306 $3,071,303
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $417,469 $460,619 $376,492
Interest-bearing deposits 2,406,780 2,328,905 2,101,165
Total Deposits 2,824,249 2,789,524 2,477,657
FHLB advances 167,545 167,893 114,185
Other borrowings - short term 103,950 118,584 91,858
Interest payable and other liabilities 33,793 22,849 25,243
Total Liabilities 3,129,537 3,098,850 2,708,943
Shareholders' Equity:
Common stock, $1 par value 22,539 22,514 21,434
Surplus 290,660 290,656 258,866
Retained earnings 73,079 64,792 74,270
Accumulated other comprehensive income 5,955 11,494 7,790
Total Shareholders' Equity 392,233 389,456 362,360
Total Liabilities and
Shareholders' Equity $3,521,770 $3,488,306 $3,071,303
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Three Months Ended
March 31,
(In thousands, except per share data) 2002 2001
Interest Income
Interest and fees on loans $40,510 $38,181
Interest on investment securities:
Taxable 11,994 12,558
Nontaxable 782 888
Total Interest on Securities 12,776 13,446
Interest on federal funds sold 692 1,847
Interest on deposits with
unaffiliated banks 263 59
Total Interest Income 54,241 53,533
Interest Expense
Interest on deposits 15,542 21,412
Interest on FHLB advances 2,210 1,701
Interest on other borrowings - short term 266 958
Total Interest Expense 18,018 24,071
Net Interest Income 36,223 29,462
Provision for loan losses 654 405
Net Interest Income after
provision for loan losses 35,569 29,057
Noninterest Income
Trust services revenue 1,595 1,622
Service charges on deposit accounts 2,635 2,690
Other charges and fees for customer
services 1,750 1,656
Mortgage banking income 2,518 666
Investment securities gains (losses) (45) 139
Other 133 141
Total Noninterest Income 8,586 6,914
Operating Expenses
Salaries and employee benefits 13,658 11,401
Occupancy and equipment 4,077 3,417
Other 5,858 4,839
Merger related/consolidation - 9,167
Total Operating Expenses 23,593 28,824
Income Before Income Taxes 20,562 7,147
Federal income taxes 6,852 3,258
Net Income $13,710 $3,889
Net income per share:
Basic $0.61 $0.17
Diluted 0.61 0.17
Diluted - net operating income 0.61 0.49
Cash dividends per share 0.24 0.23
Average shares outstanding:
Basic 22,531 22,492
Diluted 22,586 22,541
Financial Summary
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
March 31,
2002 2001
Average Balances (Dollars in thousands)
Total assets $3,545,926 $3,044,151
Total earning assets 3,326,445 2,862,053
Total loans 2,132,571 1,855,016
Total deposits 2,843,348 2,458,797
Total shareholders' equity 393,520 350,500
Three Months Ended
March 31,
2002 2,001
Key Ratios (annualized)
Net interest margin (FTE) 4.48% 4.27%
Return on average assets 1.57% 0.52%
Return on average assets
- net operating income (1) 1.57% 1.46%
Return on average shareholders' equity 14.1% 4.5%
Return on average shareholders' equity
- net operating income (1) 14.1% 12.7%
Average shareholders' equity as a
percent of average assets 11.1% 11.5%
Tangible shareholders' equity as a
percent of total assets 10.0% 11.2%
Total risk-based capital ratio 18.0% 20.3%
March 31,
2002 2001
Credit Quality Statistics
Nonaccrual loans $9,895 $6,954
Loans 90 or more days past due
and still accruing 3,519 981
Restructured loans - -
Total nonperforming loans 13,414 7,935
Repossessed assets acquired (RAA) 1,159 1,018
Total nonperforming assets 14,573 8,953
Net loan charge-offs 757 24
Allowance for loan losses as a
percent of total loans 1.48% 1.46%
Allowance for loan losses as a
percent of nonperforming loans 230% 344%
Nonperforming loans as a
percent of total loans 0.64% 0.42%
Nonperforming assets as a
percent of total loans plus RAA 0.70% 0.49%
Net loan charge-offs as a
percent of average loans (annualized) 0.14% -
March 31,
2002 2001
Additional Data
Goodwill $27,941 $11,830
Core deposit intangibles 11,322 7,515
Mortgage servicing rights 3,448 1,583
Amortization of intangibles 745 713
Selected Quarterly Information
Chemical Financial Corporation and Subsidiaries
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
2002 2001 2001 2001 2001
Summary of Operations
(thousands)
Interest income $54,241 $57,007 $55,391 $53,300 $53,533
Interest expense 18,018 21,041 21,969 22,099 24,071
Net interest income 36,223 35,966 33,422 31,201 29,462
Provision for loan losses 654 730 432 437 405
Net interest income after
provision for loan losses 35,569 35,236 32,990 30,764 29,057
Noninterest income 8,586 9,313 7,894 7,644 6,914
Noninterest expense before
special charge 23,593 24,022 21,393 20,234 19,657
Special charge:
Before tax - - - - 9,167
After tax - - - - 7,076
Income taxes 6,852 6,750 6,515 6,093 3,258
Net income 13,710 13,777 12,976 12,081 3,889
Net operating income (1) 13,710 13,777 12,976 12,081 10,965
Per Common Share Data
Net income:
Basic $0.61 $0.62 $0.58 $0.53 $0.17
Diluted 0.61 0.61 0.58 0.53 0.17
Diluted - net operating
income (1) 0.61 0.61 0.58 0.53 0.49
Cash dividends 0.24 0.23 0.23 0.23 0.23
Book value 17.40 17.30 17.06 16.46 16.10
(1) Net operating income is based on net income that excludes $7.1
million, on an after-tax basis, of 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, President & CEO,
+1-989-839-5269, or Lori A. Gwizdala, Senior Vice President &
Chief Financial Officer, +1-989-839-5358, both of Chemical
Financial Corporation
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