MIDLAND, Mich., April 21 /PRNewswire-FirstCall/ -- Aloysius J. Oliver,
Chairman of Chemical Financial Corporation (Nasdaq: CHFC), today announced
first quarter net income of $14.0 million or $.59 per diluted share, up
$.3 million as compared with net income of $13.7 million, or $.58 per diluted
share for the first quarter of 2002. This represents an increase of 1.7% in
earnings per share and a 2.2% increase in net income for the first quarter
2003. The returns on average assets and average equity during the first
quarter of 2003 were 1.59% and 13.1%, respectively, as compared with 1.57% and
14.1%, respectively, for the first quarter of 2002.
Net interest income decreased $1.1 million, or 3.0%, to $35.1 million in
the first quarter of 2003, as compared to the first quarter 2002. The
decrease, in part, was due to the low interest rate environment and the
decrease in the yield on our earning assets which is outpacing the decrease in
our cost of funds. The Corporation's earnings were positively affected by an
increase in noninterest income of $.6 million, or 7.4%. This increase was
primarily due to higher service charge income of $1.3 million. A reduction in
operating expenses of $.7 million, or 2.8%, also had a positive effect on
earnings.
Total assets of the Corporation at March 31, 2003 were $3.61 billion, up
2.6% over the $3.52 billion in total assets reported at March 31, 2002. Total
deposits at March 31, 2003 were $2.90 billion, up 2.8% over total deposits of
$2.82 billion at March 31, 2002. Total loans increased 2.2% during the latest
twelve months, from $2.09 billion at March 31, 2002, to $2.13 billion in
outstanding loans at March 31, 2003.
The Corporation's provision for loan losses for the quarter ended
March 31, 2003 was $295 thousand as compared to net loan losses of $274
thousand. As of March 31, 2003, the allowance for loan losses was $30.7
million and represented 1.44% of total loans. Non-performing loans were
$11.2 million, or .52% of total loans at the current quarter-end.
Shareholders' equity at March 31, 2003 was $437 million, or $18.45 per
share, and represented 12.1% of total assets and a tangible equity to asset
ratio of 11.1% as of March 31, 2003.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's three subsidiary banks operate 129
"Chemical Bank" offices and 2 loan production offices spread over 32 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 interest 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) 2003 2002 2002
Assets:
Cash and demand deposits due from
banks $114,023 $148,112 $116,846
Federal funds sold 32,400 69,900 112,925
Interest-bearing deposits with
unaffiliated banks 18,674 53,135 75,200
Investment securities taxable 1,171,406 1,076,292 977,058
Investment securities nontaxable 51,672 51,690 57,922
Total Investment Securities 1,223,078 1,127,982 1,034,980
Commercial loans 325,673 327,438 314,831
Real estate construction loans 106,384 108,589 129,254
Real estate commercial loans 506,243 481,084 451,947
Real estate residential loans 691,626 648,286 691,397
Consumer loans 501,767 509,789 498,610
Total Loans 2,131,693 2,075,186 2,086,039
Less: Allowance for loan losses 30,693 30,672 30,890
Net Loans 2,101,000 2,044,514 2,055,149
Premises and equipment 41,841 42,767 43,192
Intangible assets 40,060 40,489 42,711
Other assets 42,423 41,994 40,782
Total Assets $3,613,499 $3,568,893 $3,521,785
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits $448,585 $475,933 $417,469
Interest-bearing deposits 2,455,517 2,371,339 2,406,780
Total Deposits 2,904,102 2,847,272 2,824,249
FHLB borrowings 153,591 157,393 167,545
Other borrowings - short term 83,348 104,212 103,950
Interest payable and other liabilities 35,418 29,677 33,808
Total Liabilities 3,176,459 3,138,554 3,129,552
Shareholders' Equity:
Common stock, $1 par value 23,690 23,684 22,539
Surplus 325,096 325,149 290,660
Retained earnings 70,812 62,721 73,079
Accumulated other comprehensive
income 17,442 18,785 5,955
Total Shareholders' Equity 437,040 430,339 392,233
Total Liabilities and
Shareholders' Equity $3,613,499 $3,568,893 $3,521,785
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Three Months Ended
March 31,
(In thousands, except per share data) 2003 2002
Interest Income:
Interest and fees on loans $36,414 $40,510
Interest on investment securities:
Taxable 10,680 11,994
Nontaxable 677 782
Total Interest on Securities 11,357 12,776
Interest on federal funds sold 336 692
Interest on deposits with unaffiliated
banks 139 263
Total Interest Income 48,246 54,241
Interest Expense:
Interest on deposits 10,840 15,542
Interest on FHLB borrowings 2,113 2,210
Interest on other borrowings - short
term 169 266
Total Interest Expense 13,122 18,018
Net Interest Income 35,124 36,223
Provision for loan losses 295 653
Net Interest Income after
Provision for Loan Losses 34,829 35,570
Noninterest Income:
Service charges on deposit accounts 3,891 2,635
Trust services revenue 1,727 1,681
Other charges and fees for customer
services 1,915 1,782
Mortgage banking revenue 1,547 2,556
Investment securities gains (losses) 184 (45)
Other 50 62
Total Noninterest Income 9,314 8,671
Operating Expenses:
Salaries and employee benefits 13,689 13,744
Occupancy and equipment 4,013 4,077
Other 5,324 5,858
Total Operating Expenses 23,026 23,679
Income Before Income Taxes 21,117 20,562
Federal income taxes 7,103 6,852
Net Income $14,014 $13,710
Net income per share:
Basic $0.59 $0.58
Diluted 0.59 0.58
Cash dividends per share 0.25 0.23
Average shares outstanding:
Basic 23,696 23,658
Diluted 23,740 23,715
Financial Summary (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
Three Months Ended
March 31,
2003 2002
Average Balances
Total assets $3,574,354 $3,545,676
Total interest-earning assets 3,398,914 3,328,868
Total loans 2,100,747 2,135,900
Total deposits 2,861,776 2,843,348
Total shareholders' equity 433,989 393,520
Three Months Ended
March 31,
2003 2002
Key Ratios (annualized where
applicable)
Net interest margin 4.25% 4.48%
Efficiency ratio 51.3% 52.1%
Return on average assets 1.59% 1.57%
Return on average shareholders'
equity 13.1% 14.1%
Average shareholders' equity as a
percent of average assets 12.1% 11.1%
Tangible shareholders' equity as a
percent of total assets 11.1% 10.0%
Total risk-based capital ratio 18.7% 18.0%
March 31,
2003 2002
Credit Quality Statistics
Nonaccrual loans $5,730 $9,895
Loans 90 or more days past due
and still accruing 5,442 3,519
Restructured loans - -
Total nonperforming loans 11,172 13,414
Repossessed assets acquired (RAA) 4,590 1,159
Total nonperforming assets 15,762 14,573
Net loan charge-offs 274 757
Allowance for loan losses as a
percent of total loans 1.44% 1.48%
Allowance for loan losses as a
percent of nonperforming loans 275% 230%
Nonperforming loans as a
percent of total loans 0.52% 0.64%
Nonperforming assets as a
percent of total loans plus RAA 0.74% 0.70%
Net loan charge-offs as a
percent of average loans 0.05% 0.14%
March 31,
2003 2002
Additional Data
Goodwill $27,940 $27,940
Core deposit intangibles 9,592 11,322
Mortgage servicing rights 2,528 3,448
Amortization of intangibles 808 745
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
2003 2002 2002 2002 2002
Summary of Operations
Interest income $48,246 $51,036 $52,475 $53,292 $54,241
Interest expense 13,122 14,673 16,076 16,585 18,018
Net interest income 35,124 36,363 36,399 36,707 36,223
Provision for loan losses 295 1,013 747 1,352 653
Net interest income after
provision
for loan losses 34,829 35,350 35,652 35,355 35,570
Noninterest income 9,314 9,275 8,588 8,000 8,671
Noninterest expense 23,026 23,692 23,134 23,021 23,679
Income taxes 7,103 7,251 7,088 6,799 6,852
Net income 14,014 13,682 14,018 13,535 13,710
Per Common Share Data
Net income:
Basic $0.59 $0.58 $0.59 $0.57 $0.58
Diluted 0.59 0.57 0.59 0.57 0.58
Cash dividends 0.25 0.23 0.23 0.23 0.23
Book value 18.45 18.17 17.78 17.19 16.57
SOURCE Chemical Financial Corporation
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Related links:
http://chemicalbankmi.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/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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