MIDLAND, Mich., July 16 /PRNewswire/ -- Alan W. Ott, Chairman of Chemical
Financial Corporation (Nasdaq: CHFC), today announced record second quarter
net income of $12,081,000, up 15.4% over net income of $10,473,000 for the
second quarter of 2000. On a per share basis, net income for the quarter
ending June 30, 2001 was $.56 per share, an increase of 14.3% over the $.49
per share earned in the second quarter of 2000.
The Corporation's return on average assets and return on average equity
was 1.58% and 13.2%, respectively, for the three months ended June 30, 2001,
as compared to 1.41% and 12.5%, respectively, for the three months ended June
30, 2000.
The growth in net income in the second quarter of 2001, as compared to the
comparable period in 2000, resulted from an 8.1% increase in net interest
income and from a 17% increase in non-interest income, primarily attributable
to increased gains on the sale of real estate mortgages in the secondary
market.
For the six months ended June 30, 2001, the Corporation earned net
operating income of $23,046,000, or $1.07 per share, as compared to net income
of $20,101,000, or $.94 per share, for the first six months of 2000. This
represents an increase of 14.7% in operating earnings per share. Net
operating income in 2001 excludes pre-tax non-recurring expenses of
$9,167,000, or $7,076,000 on an after-tax basis, incurred in the first quarter
of 2001 to complete the merger with Shoreline Financial Corporation and for
internal bank consolidations. Including the merger related and consolidation
charges, the Corporation reported net income for the first six months of 2001
of $15,970,000, or $.74 per share.
The Corporation's provision for loan losses for the three and six months
ended June 30, 2001 was $437,000 and $842,000, respectively, as compared to
net loan losses during the same time periods of $381,000 and $405,000,
respectively. As of June 30, 2001, the allowance for loan losses was $27.32
million and represented 1.43% of total loans. Nonperforming loans were $9.2
million, or .48% of total loans, at the current quarter end.
Total assets at June 30, 2001 were $3.08 billion, up $98 million, or 3.3%,
from June 30, 2000. Total deposits at June 30, 2001 were $2.47 billion, up
2.0% over total deposits of $2.42 billion at June 30, 2000. Total loans
increased 7.3% during the latest twelve months, from $1.78 billion at June 30,
2000, to $1.91 billion in outstanding loans at June 30, 2001.
Shareholders' equity at June 30, 2001 was $370.3 million, or $17.28 per
share, and represented 12% of total assets at the current quarter end.
On May 24, 2001, the Corporation entered into a definitive agreement for
the acquisition of Bank West Financial Corporation ("BWFC"). BWFC is a
holding company headquartered in Grand Rapids, Michigan, with total assets of
approximately $281 million, total deposits of $176 million and total
stockholders' equity of $24 million, as of June 30, 2001. BWFC is the parent
company of Bank West, a Michigan stock savings bank with five offices in Kent
and Ottawa Counties. Bank West will be merged into Chemical Bank West, the
Corporation's existing affiliate which is headquartered in Cadillac, Michigan.
Shareholders of BWFC will receive $11.50 cash for each share of BWFC common
stock in a taxable transaction. The total value of the transaction is
currently estimated at approximately $29.8 million. The transaction is
subject to approval by BWFC shareholders, approval by the banking regulators
and other customary conditions. It is expected that this transaction will
close during the fourth quarter of this year.
On Friday, July 13, 2001, the Corporation completed the acquisition of
four branch banking offices from Fifth Third Bank and Old Kent Bank. Deposits
acquired in the transaction were approximately $143 million and loans
purchased totaled approximately $102 million. The purchased branches located
in Holland, Zeeland and Grand Haven, MI, will become offices of Chemical Bank
Shoreline in Benton Harbor and the office in Fremont, MI, will become a branch
of Chemical Bank West, Cadillac.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's four Subsidiary Banks operate 122
"Chemical Bank" offices and 2 loan production offices spread over 32 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 release revisions to these
forward-looking statements or reflect events or conditions after the date of
this release.
Chemical Financial Corporation Announces Second Quarter Operating Results
Consolidated Balance Sheets (Unaudited)
Chemical Financial Corporation and Subsidiaries
June 30,
(In thousands) 2001 2000
Assets
Cash and demand deposits due from banks $114,101 $119,864
Federal funds sold 72,700 66,400
Interest-bearing deposits with
unaffiliated banks 23,077 123
Investment securities taxable 835,637 870,637
Investment securities nontaxable 61,214 66,787
Total Investment Securities 896,851 937,424
Commercial and agricultural loans 284,507 298,178
Real estate construction loans 92,106 63,650
Real estate commercial loans 325,001 293,384
Real estate residential loans 754,357 744,920
Consumer loans 457,868 383,760
Total Loans 1,913,839 1,783,892
Less: Allowance for loan losses 27,319 26,389
Net Loans 1,886,520 1,757,503
Premises and equipment 37,300 38,457
Intangible assets 20,640 22,621
Other assets 32,094 43,262
Total Assets $3,083,283 $2,985,654
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $396,852 $389,515
Interest-bearing deposits 2,069,986 2,028,852
Total Deposits 2,466,838 2,418,367
Other borrowings 102,558 92,358
Interest payable and other liabilities 19,399 26,041
FHLB advances 124,168 112,426
Total Liabilities 2,712,963 2,649,192
Shareholders' Equity:
Common stock, $1 par value 21,432 21,379
Surplus 258,866 257,480
Retained earnings 81,208 64,443
Accumulated other comprehensive
income (loss) 8,814 (6,840)
Total Shareholders' Equity 370,320 336,462
Total Liabilities and
Shareholders' Equity $3,083,283 $2,985,654
Chemical Financial Corporation Announces Second Quarter Operating Results
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) 2001 2000 2001 2000
Interest Income
Interest and fees on loans $38,724 $35,946 $76,928 $70,514
Interest on investment securities:
Taxable 12,522 13,635 25,076 26,622
Nontaxable 852 878 1,740 1,750
Total Interest on Securities 13,374 14,513 26,816 28,372
Interest on federal funds sold 1,043 1,438 2,890 3,011
Interest on deposits with
unaffiliated banks 159 148 218 368
Total Interest Income 53,300 52,045 106,852 102,265
Interest Expense
Interest on deposits 19,704 20,759 41,118 40,631
Interest on short-term borrowings 724 948 1,682 1,706
Interest on medium- and
long-term borrowings 1,671 1,479 3,372 2,884
Total Interest Expense 22,099 23,186 46,172 45,221
Net Interest Income 31,201 28,859 60,680 57,044
Provision for loan losses 437 224 842 440
Net Interest Income after
provision for loan losses 30,764 28,635 59,838 56,604
Noninterest Income
Trust services revenue 1,713 1,816 3,335 3,411
Service charges on deposit accounts 2,657 2,438 5,420 4,853
Other charges and fees for customer
services 1,776 1,688 3,427 3,199
Mortgage banking income 1,234 451 1,932 689
Investment securities gains 152 51 292 75
Other 112 85 260 205
Total Noninterest Income 7,644 6,529 14,666 12,432
Operating Expenses
Salaries and employee benefits 11,770 11,344 23,285 22,648
Occupancy and equipment 3,273 3,168 6,700 6,506
Other 5,191 5,116 10,030 10,190
Merger related/consolidation 9,167 -
Total Operating Expenses 20,234 19,628 49,182 39,344
Income Before Income Taxes 18,174 15,536 25,322 29,692
Federal income taxes 6,093 5,063 9,352 9,591
Net Income $12,081 $10,473 $15,970 $20,101
Net income per share:
Basic $0.56 $0.49 $0.74 $0.94
Diluted 0.56 0.49 0.74 0.94
Diluted - operating income 0.56 0.49 1.07 0.94
Cash dividends per share 0.24 0.22 0.48 0.44
Average shares outstanding:
Basic 21,432 21,359 21,426 21,392
Diluted 21,484 21,433 21,476 21,468
Chemical Financial Corporation Announces Second Quarter Operating Results
Financial Summary
Chemical Financial Corporation and Subsidiaries
Quarter Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Average Balances (Dollars in thousands)
Total assets $3,072,292 $2,980,149 $3,058,299 $2,961,074
Total earning assets 2,898,139 2,797,545 2,880,197 2,778,261
Total loans 1,899,693 1,744,868 1,877,479 1,725,090
Total deposits 2,464,094 2,434,888 2,461,467 2,420,893
Total shareholders'
equity 365,855 336,307 358,220 334,366
Shareholders'
equity/assets 11.9% 11.3% 11.7% 11.3%
At Period End (Dollars in thousands)
Credit Quality Statistics
Nonaccrual loans $6,138 $7,857
Loans 90 or more days past due
and still accruing 3,098 1,328
Restructured loans 0 21
Total nonperforming loans 9,236 9,206
Repossessed assets acquired (RAA) 590 418
Total nonperforming assets 9,826 9,624
Net loans charged off 405 225
Allowance for loan losses ratio 1.43% 1.48%
Allowance for loan losses as a
percent of nonperforming loans 296% 287%
Nonperforming loans as a
percent of total loans 0.48% 0.52%
Nonperforming assets as a
percent of total loans plus RAA 0.51% 0.54%
Net loans charged off as a
percent of average loans (annualized) 0.04% 0.03%
Performance Ratios (annualized)
Net interest margin
(FTE) 4.40% 4.24% 4.34% 4.22%
Return on average assets 1.58% 1.41% 1.05% 1.37%
Return on average assets
- net operating income (1) 1.58% 1.41% 1.52% 1.37%
Return on average
shareholders' equity 13.2% 12.5% 9.0% 12.1%
Return on average shareholders' equity
- net operating income (1) 13.2% 12.5% 13.0% 12.1%
Chemical Financial Corporation Announces Second Quarter Operating Results
Selected Quarterly Information
Chemical Financial Corporation and Subsidiaries
2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
2001 2001 2000 2000 2000
Summary of Operations
(thousands)
Interest income $53,300 $53,552 $54,536 $53,867 $52,045
Interest expense 22,099 24,073 25,594 25,141 23,186
Net interest income 31,201 29,479 28,942 28,726 28,859
Provision for loan
losses 437 405 857 290 224
Net interest income after provision
for loan losses 30,764 29,074 28,085 28,436 28,635
Noninterest income 7,644 7,022 6,491 6,496 6,529
Noninterest expense before
special charge 20,234 19,781 19,316 19,362 19,628
Special charge:
Before tax - 9,167 - - -
After tax - 7,076 - - -
Income taxes 6,093 3,259 5,079 5,051 5,063
Net income 12,081 3,889 10,181 10,519 10,473
Net operating
income (1) 12,081 10,965 10,181 10,519 10,473
Per Common Share Data
Net income:
Basic $0.56 $0.18 $0.48 $0.49 $0.49
Diluted 0.56 0.18 0.48 0.48 0.49
Diluted - net
operating
income (1) 0.56 0.51 0.48 0.48 0.49
Cash dividends 0.24 0.24 0.22 0.22 0.22
Book value 17.28 16.91 16.72 16.18 15.74
(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
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Related links:
http://chemicalbankmi.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/157448.html
CONTACT:
Aloysius J. Oliver, +1-989-839-5352, or Lori
A. Gwizdala, +1-989-839-5358, both of Chemical Financial
Corporation
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