MIDLAND, Mich., July 15 /PRNewswire-FirstCall/ -- Aloysius J. Oliver,
Chairman of Chemical Financial Corporation (Nasdaq: CHFC), today announced
second quarter net income of $13,535,000, or $.60 per diluted share, compared
with net income of $12,081,000, or $.53 per diluted share for the second
quarter of 2001. This represents an increase of 13.2% in net income per
share. The Corporation's return on average assets and return on average
equity during the second quarter of 2002 were 1.54% and 13.7%, respectively,
as compared with 1.58% and 13.2% for the second quarter of 2001.
For the six months ended June 30, 2002, the Corporation earned net income
of $27,245,000, or $1.21 per share, as compared to net operating income of
$23,046,000, or $1.02 per share for the first six months of 2001. This
represents an 18.6% increase in operating earnings per share. Net operating
income in 2001 excludes 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. Comparing net income for the first six
months of 2001, which includes the merger related and consolidated charges,
versus the first six months of 2002, net income is up 70.6%.
The growth in net income in the second quarter of 2002, as compared to the
same period in 2001, resulted from substantial increases in both net interest
income and mortgage banking revenue.
Total assets of the Corporation at June 30, 2002 were $3.48 billion, up
12.8% over the $3.08 billion in total assets reported at June 30, 2001. Total
deposits at June 30, 2002 were $2.78 billion, up 12.6% over total deposits of
$2.47 billion at June 30, 2001. Total loans were $2.08 billion at June 30,
2002, up $169 million, or 8.8%, over total loans at June 30, 2001 of $1.91
billion.
The Corporation's provision for loan losses for the three and six months
ended June 30, 2002 was $1.35 million and $2 million, respectively, as
compared to net loan losses during the same time periods in 2002 of $1.23
million and $1.99 million, respectively. As of June 30, 2002, the allowance
for loan losses was $31.01 million, or 1.49% of total loans, while non-
performing loans were $12.3 million, or .59% of total loans.
Shareholders' equity at June 30, 2002 was $407 million, or $18.05 per
share, and represented 11.7% of total assets. The Corporation's tangible
equity to asset ratio was 10.6% 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 (Unaudited)
Chemical Financial Corporation and Subsidiaries
June 30, December 31, June 30,
(In thousands) 2002 2001 2001
Assets:
Cash and demand deposits due from
banks $135,309 $150,546 $114,101
Federal funds sold 43,759 86,800 71,993
Interest-bearing deposits with
unaffiliated banks 31,833 40,591 23,785
Investment securities taxable 1,035,347 872,748 835,635
Investment securities nontaxable 54,759 59,527 61,214
Total Investment Securities 1,090,106 932,275 896,849
Commercial and agricultural loans 320,926 332,055 284,560
Real estate construction loans 112,331 137,500 92,106
Real estate commercial loans 468,261 432,747 338,851
Real estate residential loans 650,306 769,272 740,507
Consumer loans 531,197 510,967 457,815
Total Loans 2,083,021 2,182,541 1,913,839
Less: Allowance for loan losses 31,011 30,994 27,319
Net Loans 2,052,010 2,151,547 1,886,520
Premises and equipment 43,092 42,397 38,113
Intangible assets 42,548 42,615 20,640
Other assets 38,913 41,535 31,282
Total Assets $3,477,570 $3,488,306 $3,083,283
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits $458,604 $460,619 $396,846
Interest-bearing deposits 2,319,251 2,328,905 2,069,987
Total Deposits 2,777,855 2,789,524 2,466,833
FHLB borrowings 167,528 167,893 124,168
Other borrowings - short term 97,836 118,584 102,299
Interest payable and other liabilities 27,195 22,849 19,663
Total Liabilities 3,070,414 3,098,850 2,712,963
Shareholders' Equity:
Common stock, $1 par value 22,552 22,514 21,432
Surplus 290,887 290,656 258,866
Retained earnings 81,218 64,792 81,208
Accumulated other comprehensive
income 12,499 11,494 8,814
Total Shareholders' Equity 407,156 389,456 370,320
Total Liabilities and
Shareholders' Equity $3,477,570 $3,488,306 $3,083,283
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Quarter Ended Six Months Ended
June 30, June 30,
(In thousands, except per share
data) 2002 2001 2002 2001
Interest Income:
Interest and fees on loans $38,993 $38,724 $79,503 $76,928
Interest on investment securities:
Taxable 12,965 12,522 24,959 25,076
Nontaxable 750 852 1,532 1,740
Total Interest on Securities 13,715 13,374 26,491 26,816
Interest on federal funds sold 381 1,043 1,073 2,890
Interest on deposits with
unaffiliated banks 185 159 448 218
Total Interest Income 53,274 53,300 107,515 106,852
Interest Expense:
Interest on deposits 14,113 19,704 29,655 41,118
Interest on FHLB borrowings 2,237 1,671 4,447 3,372
Interest on other borrowings - short
term 235 724 501 1,682
Total Interest Expense 16,585 22,099 34,603 46,172
Net Interest Income 36,689 31,201 72,912 60,680
Provision for loan losses 1,352 437 2,005 842
Net Interest Income after
provision for loan losses 35,337 30,764 70,907 59,838
Noninterest Income:
Trust services revenue 1,615 1,713 3,296 3,335
Service charges on deposit accounts 3,001 2,657 5,636 5,420
Other charges and fees for customer
services 1,668 1,776 3,418 3,427
Mortgage banking revenue 1,623 1,185 4,179 1,851
Investment securities gains (losses) (40) 152 (85) 292
Other 151 161 245 341
Total Noninterest Income 8,018 7,644 16,689 14,666
Operating Expenses:
Salaries and employee benefits 13,388 11,770 27,132 23,285
Occupancy and equipment 3,823 3,273 7,900 6,700
Other 5,810 5,191 11,668 10,030
Merger and restructuring expenses - - - 9,167
Total Operating Expenses 23,021 20,234 46,700 49,182
Income Before Income Taxes 20,334 18,174 40,896 25,322
Federal income taxes 6,799 6,093 13,651 9,352
Net Income $13,535 $12,081 $27,245 $15,970
Net income per share:
Basic $0.60 $0.53 $1.21 $0.70
Diluted 0.60 0.53 1.21 0.70
Diluted - net operating income 0.60 0.53 1.21 1.02
Cash dividends per share 0.24 0.23 0.48 0.46
Average shares outstanding:
Basic 22,553 22,504 22,541 22,497
Diluted 22,626 22,558 22,608 22,550
Financial Summary (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
Quarter Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Average Balances
Total assets $3,520,264 $3,072,292 $3,533,024 $3,058,299
Total earning assets 3,285,330 2,898,551 3,305,774 2,880,403
Total loans 2,071,188 1,899,707 2,101,710 1,877,485
Total deposits 2,803,846 2,464,108 2,823,488 2,461,467
Total shareholders' equity 397,080 365,855 395,310 358,220
Quarter Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Key Ratios (annualized where
applicable)
Net interest margin 4.54% 4.40% 4.51% 4.34%
Efficiency ratio 50.9% 51.3% 51.5% 52.2%
Return on average assets 1.54% 1.58% 1.56% 1.05%
Return on average assets
- net operating income (1) 1.54% 1.58% 1.56% 1.52%
Return on average shareholders' equity 13.7% 13.2% 13.9% 9.0%
Return on average shareholders' equity
- net operating income (1) 13.7% 13.2% 13.9% 13.0%
Average shareholders' equity as a
percent of average assets 11.3% 11.9% 11.2% 11.7%
Tangible shareholders' equity as a
percent of total assets 10.6% 11.4%
Total risk-based capital ratio 18.3% 20.1%
June 30,
2002 2001
Credit Quality Statistics
Nonaccrual loans $8,534 $6,138
Loans 90 or more days past due
and still accruing 3,815 3,098
Restructured loans - -
Total nonperforming loans 12,349 9,236
Repossessed assets acquired (RAA) 1,021 725
Total nonperforming assets 13,370 9,961
Net loan charge-offs 1,988 405
Allowance for loan losses as a
percent of total loans 1.49% 1.43%
Allowance for loan losses as a
percent of nonperforming loans 251% 296%
Nonperforming loans as a
percent of total loans 0.59% 0.48%
Nonperforming assets as a
percent of total loans plus RAA 0.64% 0.52%
Net loan charge-offs as a
percent of average loans (annualized) 0.19% 0.04%
June 30,
2002 2001
Additional Data
Goodwill $28,112 $4,639
Core deposit intangibles 10,835 14,175
Mortgage servicing rights 3,601 1,826
Amortization of intangibles (YTD) 1,497 1,387
(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 January 2001 in connection with the merger with Shoreline
Financial Corporation and the Corporation's internal consolidation of nine of
its eleven bank charters into two.
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
2002 2002 2001 2001 2001
Summary of Operations
Interest income $53,274 $54,241 $57,007 $55,391 $53,300
Interest expense 16,585 18,018 21,041 21,969 22,099
Net interest income 36,689 36,223 35,966 33,422 31,201
Provision for loan losses 1,352 653 730 432 437
Net interest income after
provision for loan
losses 35,337 35,570 35,236 32,990 30,764
Noninterest income 8,018 8,671 9,313 7,894 7,644
Noninterest expense 23,021 23,679 24,022 21,393 20,234
Income taxes 6,799 6,852 6,750 6,515 6,093
Net income 13,535 13,710 13,777 12,976 12,081
Per Common Share Data
Net income:
Basic $0.60 $0.61 $0.62 $0.58 $0.53
Diluted 0.60 0.61 0.61 0.58 0.53
Cash dividends 0.24 0.24 0.23 0.23 0.23
Book value 18.05 17.40 17.30 17.06 16.46
SOURCE Chemical Financial Corporation
 back to top
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
|
