MIDLAND, Mich., April 16 /PRNewswire/ -- Alan W. Ott, Chairman of Chemical
Financial Corporation (Nasdaq: CHFC), today announced first quarter net
operating income of $10,965,000, or $.51 per share, compared with net income
of $9,628,000, or $.45 per share for the first quarter of 2000. This
represents an increase of 13.3% in operating earnings per share. On the same
basis, returns on average assets and average equity during the first quarter
of 2001 were 1.46% and 12.7%, respectively, as compared with 1.32% and 11.6%
for the first quarter of 2000. Net operating income for the first quarter of
2001 excluded pre-tax 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. Including the merger related and
consolidation charges, the Corporation reported net income for the first
quarter of 2001 of $3,889,000, or $.18 per share.
The growth in operating earnings in the first quarter of 2001, compared to
the first quarter of 2000, resulted from increases in both net interest income
and non-interest income. Net interest income was up $1.29 million, or 4.6%.
The growth in net interest income resulted primarily from an increase of 8.9%
in total loans and lower costs of deposits and other funding sources. Non-
interest income was up 19%, primarily resulting from increased deposit account
service charges and increased gains on the sale of residential mortgage loans
in the secondary market.
Total assets of the Corporation at March 31, 2001 were $3.1 billion, up
3.4% over the $2.97 billion in total assets reported at March 31, 2000. Total
deposits at March 31, 2001 were $2.48 billion, up 0.9% over total deposits of
$2.46 billion at March 31, 2000. Total loans increased 8.9% during the latest
twelve months, from $1.72 billion at March 31, 2000, to $1.87 billion in
outstanding loans at March 31, 2001.
During the first quarter of 2001, the Corporation provided $405,000 to the
allowance for loan losses, while charging net losses of $24,000 against the
allowance during the period.
Shareholders' equity at March 31, 2001 was $362.4 million, or $16.91 per
share, and represented 11.8% of total assets at the current quarter end.
On January 9, 2001, the Corporation consummated its merger with Shoreline
Financial Corporation, a one-bank holding company with $1.1 billion in assets,
headquartered in Benton Harbor, Michigan. The Corporation is operating
Shoreline Bank as a separate subsidiary of the Corporation under the name
Chemical Bank Shoreline. The transaction was accounted for by the pooling-of-
interests accounting method and, therefore, all prior year financial
information has been restated to include Shoreline as if it had always been a
subsidiary of the Corporation.
In addition, the Corporation completed the consolidation of nine of its
eleven banking subsidiaries into two during the first quarter of 2001.
On March 23, 2001, the Corporation announced that two of its banking
subsidiaries, Chemical Bank West and Chemical Bank Shoreline, entered into
agreements to acquire four branch banking offices from Fifth Third Bank and
Old Kent Bank. Chemical Bank Shoreline will acquire branches located in
Holland, Zeeland and Grand Haven, Michigan and Chemical Bank West, Cadillac,
will acquire a branch in Fremont, Michigan. The branches currently have
combined deposits of approximately $150 million and combined loans of
approximately $100 million. The transaction is expected to be completed in
the summer of 2001.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's four subsidiary banks operate 118
"Chemical Bank" offices and 2 loan production offices spread over 30 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.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking
statements include expressions such as "anticipate," "believe," "expect,"
"intend," and "view," which are necessarily statements of belief as to the
expected outcomes of future events. Actual results could materially differ
from those presented. Internal and external factors that might cause such a
difference include, but are not limited to, the possibility that anticipated
cost savings and revenue enhancements from the consolidations may not be fully
realized within the expected time frame and that future circumstances could
cause business decisions to be decided differently than now intended. Actual
results could materially differ from those contained in, or implied by such
statements. Chemical undertakes no obligation to revise these forward-looking
statements or reflect events or conditions after the date of this release.
Chemical Financial Corporation Announces First Quarter Operating Results
Consolidated Balance Sheets (Unaudited)
Chemical Financial Corporation and Subsidiaries
March 31,
(In thousands) 2001 2000
Assets
Cash and demand deposits due from banks $104,128 $104,904
Federal funds sold 146,375 113,595
Interest-bearing deposits
with unaffiliated banks 66 6,252
Investment securities taxable 819,479 886,549
Investment securities nontaxable 64,015 65,221
Total Investment Securities 883,494 951,770
Commercial and agricultural loans 292,661 292,818
Real estate construction loans 91,207 66,477
Real estate commercial loans 318,278 267,944
Real estate residential loans 772,574 737,474
Consumer loans 397,452 354,019
Total Loans 1,872,172 1,718,732
Less: Allowance for loan losses 27,264 26,260
Net Loans 1,844,908 1,692,472
Premises and equipment 37,870 38,938
Intangible assets 20,929 23,174
Other assets 33,533 39,730
Total Assets $3,071,303 $2,970,835
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $376,504 $370,679
Interest-bearing deposits 2,101,166 2,084,907
Total Deposits 2,477,670 2,455,586
Other borrowings 91,898 67,363
Interest payable and other liabilities 25,190 27,727
FHLB advances 114,185 88,456
Total Liabilities 2,708,943 2,639,132
Shareholders' Equity:
Common stock, $1 par value 21,434 21,429
Surplus 258,866 251,594
Retained earnings 74,270 65,841
Accumulated other comprehensive income (loss) 7,790 (7,161)
Total Shareholders' Equity 362,360 331,703
Total Liabilities and
Shareholders' Equity $3,071,303 $2,970,835
Chemical Financial Corporation Announces First Quarter Operating Results
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Three Months Ended
March 31,
(In thousands) 2001 2000
Interest Income
Interest and fees on loans $38,204 $34,568
Interest on investment securities:
Taxable 12,554 12,987
Nontaxable 888 872
Total Interest on Securities 13,442 13,859
Interest on federal funds sold 1,847 1,573
Interest on deposits with unaffiliated banks 59 220
Total Interest Income 53,552 50,220
Interest Expense
Interest on deposits 21,414 19,872
Interest on short-term borrowings 958 758
Interest on medium- and long-term borrowings 1,701 1,405
Total Interest Expense 24,073 22,035
Net Interest Income 29,479 28,185
Provision for loan losses 405 216
Net Interest Income after
provision for loan losses 29,074 27,969
Noninterest Income
Trust services revenue 1,622 1,595
Service charges on deposit accounts 2,763 2,415
Other charges and fees for customer services 727 627
Gains on sales of loans and mortgage income 537 114
Investment securities gains 140 24
Other 1,233 1,128
Total Noninterest Income 7,022 5,903
Operating Expenses
Salaries and employee benefits 11,515 11,304
Occupancy and equipment 3,427 3,338
Other 4,839 5,074
Merger related/consolidation 9,167 0
Total Operating Expenses 28,948 19,716
Income Before Income Taxes 7,148 14,156
Federal income taxes 3,259 4,528
Net Income $3,889 $9,628
Net income per share:
Basic $0.18 $0.45
Diluted 0.18 0.45
Diluted - operating income 0.51 0.45
Cash dividends per share 0.24 0.22
Average shares outstanding:
Basic 21,421 21,422
Diluted 21,468 21,505
Chemical Financial Corporation Announces First Quarter Operating Results
Financial Summary
Chemical Financial Corporation and Subsidiaries
Three Months Ended
March 31,
2001 2000
Average Balances (thousands)
Total assets $3,044,151 $2,941,999
Total earning assets 2,862,056 2,758,977
Total loans 1,855,018 1,705,312
Total deposits 2,458,811 2,406,898
Total shareholders' equity 350,500 332,425
Shareholders' equity/assets 11.5% 11.3%
At Period End (thousands)
Credit Quality Statistics
Nonaccrual loans $6,954 $3,270
Loans 90 or more days past due
and still accruing 981 872
Restructured loans 0 22
Total nonperforming loans 7,935 4,164
Repossessed assets acquired (RAA) 1,018 415
Total nonperforming assets 8,953 4,579
Net loans charged off 24 130
Allowance for loan losses ratio 1.46% 1.53%
Allowance for loan losses as a
percent of nonperforming loans 344% 630%
Nonperforming loans as a
percent of total loans 0.42% 0.24%
Nonperforming assets as a
percent of total loans plus RAA 0.48% 0.27%
Net loans charged off as a
percent of average loans (annualized) 0.00% 0.03%
Performance Ratios (annualized)
Net interest margin (FTE) 4.27% 4.21%
Return on average assets 0.52% 1.32%
Return on average assets
- net operating income (1) 1.46% 1.32%
Return on average shareholders' equity 4.5% 11.6%
Return on average shareholders' equity
- net operating income (1) 12.7% 11.6%
Chemical Financial Corporation Announces First Quarter Operating Results
Selected Quarterly Information
Chemical Financial Corporation and Subsidiaries
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
2001 2000 2000 2000 2000
Summary of Operations
(thousands)
Interest income $53,552 $54,536 $53,867 $51,956 $50,220
Interest expense 24,073 25,594 25,141 23,185 22,035
Net interest income 29,479 28,942 28,726 28,771 28,185
Provision for
loan losses 405 857 290 224 216
Net interest income
after provision
for loan losses 29,074 28,085 28,436 28,547 27,969
Noninterest income 7,022 6,491 6,496 6,595 5,903
Noninterest expense
before special
charge 19,781 19,316 19,362 19,606 19,716
Special charge:
Before tax 9,167 - - - -
After tax 7,076 - - - -
Income taxes 3,259 5,079 5,051 5,063 4,528
Net income 3,889 10,181 10,519 10,473 9,628
Net operating
income (1) 10,965 10,181 10,519 10,473 9,628
Per Common Share Data
Net income:
Basic $0.18 $0.48 $0.49 $0.49 $0.45
Diluted 0.18 0.48 0.48 0.49 0.45
Diluted - net
operating income (1) 0.51 0.48 0.48 0.49 0.45
Dividends 0.24 0.22 0.22 0.22 0.22
Book value 16.91 16.72 16.18 15.74 15.48
(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
 back to top
Related links:
http://chemicalbankmi.com
Company News On-Call:
http://www.prnewswire.com/comp/157448.html or fax,
800-758-5804, ext. 157448
CONTACT:
Aloysius J. Oliver, President & CEO,
989-839-5352, or Lori A. Gwizdala, Senior Vice President & Chief
Financial Officer, 989-839-5350, both of Chemical Financial
Corporation
|
