MIDLAND, Mich., April 19 /PRNewswire-FirstCall/ -- Aloysius J. Oliver,
Chairman of Chemical Financial Corporation (Nasdaq: CHFC), today announced
first quarter net income of $14.1 million, or $.59 per diluted share, up $.1
million as compared with net income of $14.0 million, or $.59 per diluted
share, for the first quarter of 2003. This represents an increase of .7% in
net income for the first quarter 2004. The returns on average assets and
average equity during the first quarter of 2004 were 1.46% and 12.3%,
respectively, as compared with 1.59% and 13.1%, respectively, for the first
quarter of 2003.
Net interest income increased $1.7 million, or 4.8%, to $36.8 million in
the first quarter of 2004, as compared to the first quarter of 2003. The
increase was attributable to the acquisition of Caledonia Financial
Corporation ("Caledonia") on December 1, 2003. The Corporation's earnings
were also positively affected by an increase in noninterest income of $.6
million, or 7%. This increase was primarily due to increases in investment
securities gains of $.8 million, service charge income of $.7 million and
trust services revenue of $.2 million. These noninterest income increases
were partially offset by a decrease in mortgage banking revenue of $.8
million. Total operating expenses increased $2.1 million, or 9.3%, in the
first quarter of 2004, as compared to the first quarter of 2003. The
additional operating expenses attributable to the acquisition of Caledonia, of
approximately $1.1 million, represented slightly over one-half of the
increase.
Total assets of the Corporation at March 31, 2004 were $3.91 billion, up
8.2% over the $3.61 billion in total assets reported at March 31, 2003. Total
deposits at March 31, 2004 were $3.02 billion, up 3.9% over total deposits of
$2.90 billion at March 31, 2003. Total loans increased $417 million, or
19.6%, during the twelve months ended March 31, 2004 to $2.55 billion. The
acquisition of Caledonia added $211 million in assets, $184 million in loans
and $171 million in deposits on December 1, 2003. In addition, the
Corporation borrowed $150 million from the Federal Home Loan Bank in the first
quarter of 2004 and invested the proceeds in five and seven-year balloon type
mortgage-backed securities.
The Corporation's provision for loan losses for the quarter ended March
31, 2004 was $746,000, as compared to net loan charge-offs of $431,000. As of
March 31, 2004, the allowance for loan losses was $33.5 million and
represented 1.31% of total loans. Non-performing loans were $11.9 million, or
.47% of total loans, at the current quarter-end.
Shareholders' equity at March 31, 2004 was $470 million, or $19.63 per
share, and represented 12% of total assets and a tangible equity to asset
ratio of 10.3% as of March 31, 2004.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's four subsidiary banks operate 133
banking offices and 2 loan production offices spread over 33 counties in the
lower peninsula of Michigan.
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.
Chemical Financial Corporation Announces First Quarter Operating Results
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation and Subsidiaries
March 31, December 31, March 31,
(In thousands) 2004 2003 2003
Assets:
Cash and demand deposits due from
banks $106,610 $131,184 $114,023
Federal funds sold 75,400 25,900 32,400
Interest-bearing deposits with
unaffiliated banks 27,854 5,107 18,674
Investment securities taxable 965,744 876,806 1,171,406
Investment securities nontaxable 44,955 45,056 51,672
Total Investment Securities 1,010,699 921,862 1,223,078
Commercial loans 444,229 405,929 325,673
Real estate construction loans 148,592 138,280 106,384
Real estate commercial loans 640,292 628,815 506,243
Real estate residential loans 773,195 767,199 691,626
Consumer loans 542,811 541,052 501,767
Total Loans 2,549,119 2,481,275 2,131,693
Less: Allowance for loan losses 33,494 33,179 30,693
Net Loans 2,515,625 2,448,096 2,101,000
Premises and equipment 48,669 49,616 41,841
Intangible assets 76,141 76,846 40,060
Other assets 49,574 50,277 42,423
Total Assets $3,910,572 $3,708,888 $3,613,499
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits $502,147 $532,752 $448,585
Interest-bearing deposits 2,515,476 2,434,484 2,455,517
Total Deposits 3,017,623 2,967,236 2,904,102
FHLB borrowings 292,210 155,373 153,591
Other borrowings - short term 92,002 91,524 83,348
Interest payable and
other liabilities 38,940 36,706 35,418
Total Liabilities 3,440,775 3,250,839 3,176,459
Shareholders' Equity:
Common stock, $1 par value 23,931 23,801 23,690
Surplus 333,065 328,774 325,096
Retained earnings 102,530 94,746 70,812
Accumulated other comprehensive
income 10,271 10,728 17,442
Total Shareholders' Equity 469,797 458,049 437,040
Total Liabilities and
Shareholders' Equity $3,910,572 $3,708,888 $3,613,499
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, except per share data) 2004 2003
Interest Income:
Interest and fees on loans $37,478 $36,414
Interest on investment securities:
Taxable 8,876 10,680
Nontaxable 565 677
Total Interest on Securities 9,441 11,357
Interest on federal funds sold 201 336
Interest on deposits with
unaffiliated banks 77 139
Total Interest Income 47,197 48,246
Interest Expense:
Interest on deposits 7,703 10,840
Interest on FHLB borrowings 2,576 2,113
Interest on other borrowings - short term 96 169
Total Interest Expense 10,375 13,122
Net Interest Income 36,822 35,124
Provision for loan losses 746 295
Net Interest Income after
Provision for Loan Losses 36,076 34,829
Noninterest Income:
Service charges on deposit accounts 4,554 3,891
Trust services revenue 1,909 1,727
Other charges and fees for customer services 1,548 1,915
Mortgage banking revenue 780 1,547
Investment securities gains 983 184
Other 188 50
Total Noninterest Income 9,962 9,314
Operating Expenses:
Salaries and employee benefits 14,801 13,689
Occupancy and equipment 4,844 4,013
Other 5,515 5,324
Total Operating Expenses 25,160 23,026
Income Before Income Taxes 20,878 21,117
Federal income taxes 6,759 7,103
Net Income $14,119 $14,014
Net income per share:
Basic $0.59 $0.59
Diluted 0.59 0.59
Cash dividends per share 0.265 0.25
Average shares outstanding:
Basic 23,892 23,696
Diluted 23,986 23,740
Chemical Financial Corporation Announces First Quarter Operating Results
Financial Summary (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
Three Months Ended
March 31,
2004 2003
Average Balances
Total assets $3,888,849 $3,574,354
Total interest-earning assets 3,633,736 3,398,914
Total loans 2,517,080 2,100,747
Total deposits 3,020,391 2,861,776
Total shareholders' equity 463,268 433,989
Three Months Ended
March 31,
2004 2003
Key Ratios (annualized where
applicable)
Net interest margin 4.12% 4.25%
Efficiency ratio 53.3% 51.3%
Return on average assets 1.46% 1.59%
Return on average shareholders' equity 12.3% 13.1%
Average shareholders' equity as a
percent of average assets 11.9% 12.1%
Tangible shareholders' equity as a
percent of total assets 10.3% 11.1%
Total risk-based capital ratio 16.5% 18.7%
March 31,
2004 2003
Credit Quality Statistics
Nonaccrual loans $5,317 $5,730
Loans 90 or more days past due
and still accruing 6,559 5,442
Total nonperforming loans 11,876 11,172
Repossessed assets acquired (RAA) 6,294 4,590
Total nonperforming assets 18,170 15,762
Net loan charge-offs 431 274
Allowance for loan losses as a
percent of total loans 1.31% 1.44%
Allowance for loan losses as a
percent of nonperforming loans 282% 275%
Nonperforming loans as a
percent of total loans 0.47% 0.52%
Nonperforming assets as a
percent of total loans plus RAA 0.71% 0.74%
Net loan charge-offs as a
percent of average loans 0.07% 0.05%
March 31,
2004 2003
Additional Data
Goodwill $63,295 $27,940
Core deposit intangibles 9,611 9,592
Mortgage servicing rights 3,235 2,528
Amortization of intangibles 751 808
Chemical Financial Corporation Announces First Quarter Operating Results
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
2004 2003 2003 2003 2003
Summary of Operations
Interest income $47,197 $44,857 $45,237 $46,697 $48,246
Interest expense 10,375 10,002 10,473 11,668 13,122
Net interest income 36,822 34,855 34,764 35,029 35,124
Provision for loan losses 746 727 540 1,272 295
Net interest income after
provision for loan losses 36,076 34,128 34,224 33,757 34,829
Noninterest income 9,962 9,420 10,274 10,086 9,314
Noninterest expense 25,160 23,014 22,701 23,182 23,026
Income taxes 6,759 6,971 7,328 6,991 7,103
Net income 14,119 13,563 14,469 13,670 14,014
Per Common Share Data
Net income:
Basic $0.59 $0.57 $0.61 $0.58 $0.59
Diluted 0.59 0.57 0.61 0.58 0.59
Cash dividends 0.265 0.25 0.25 0.25 0.25
Book value 19.63 19.25 18.94 18.73 18.45
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, Executive Vice President &
Chief Financial Officer, +1-989-839-5358, both of Chemical
Financial Corporation
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