Midland, Mich., July 20 /PRNewswire-FirstCall/ -- Chemical Financial
Corporation's (Nasdaq: CHFC) Board of Directors today announced second quarter
net income of $13.9 million, or $.58 per diluted share, up $.2 million as
compared with net income of $13.7 million, or $.58 per diluted share, for the
second quarter of 2003. This represented an increase of 1.4% in net income
for the second quarter 2004. The returns on average assets and average equity
during the second quarter of 2004 were 1.44% and 11.9%, respectively, as
compared to 1.54% and 12.4%, respectively, for the second quarter of 2003.
Net income was $28.0 million, or $1.17 per share in the first six months
of 2004, compared to net income of $27.7 million, or $1.17 per share in the
first six months of 2003. This represented an increase of 1.1% in net income
for the first six months of 2004. The returns on average assets and average
equity during the first six months of 2004 were 1.45% and 12.1%, respectively,
as compared to 1.56% and 12.8%, respectively, for the first six months of
2003.
Net interest income increased $1.4 million, or 3.9%, to $36.4 million in
the second quarter of 2004, as compared to the second 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 a decrease in the provision for loan losses
of $611 thousand. The decrease in the provision for loan losses was impacted
by lower net loan charge-offs in the second quarter of 2004, as compared to
the second quarter of 2003. Total operating expenses increased $1.7 million,
or 7.5%, in the second quarter of 2004, as compared to the second quarter of
2003. The additional operating expenses from the acquisition of Caledonia, of
approximately $1.2 million, represented approximately two-thirds of the
increase.
Total assets of the Corporation at June 30, 2004 were $3.84 billion, up
7.1% over the $3.59 billion in total assets reported at June 30, 2003. Total
deposits at June 30, 2004 were $2.96 billion, up 2.8% over total deposits of
$2.88 billion at June 30, 2003. Total loans increased $352 million, or 15.7%,
during the twelve months ended June 30, 2004 to $2.59 billion. The
acquisition of Caledonia added $211 million in assets, $184 million in loans
and $171 million in deposits on December 1, 2003.
The Corporation's provision for loan losses for the quarter ended June 30,
2004 was $661 thousand, as compared to net loan charge-offs of $603 thousand.
As of June 30, 2004, the allowance for loan losses was $33.6 million and
represented 1.30% of total loans. Non-performing loans were $10.9 million, or
.42% of total loans, at the current quarter-end.
Shareholders' equity at June 30, 2004 was $468 million, or $19.56 per
share, and represented 12.2% of total assets and a tangible equity to asset
ratio of 10.4% as of June 30, 2004.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's three 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 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.
Consolidated Statements of Financial Position (Unaudited)
Chemical Financial Corporation and Subsidiaries
June 30, December 31, June 30,
(In thousands) 2004 2003 2003
Assets:
Cash and demand deposits due from
banks $114,743 $131,184 $122,712
Federal funds sold 60,700 25,900 41,200
Interest-bearing deposits with
unaffiliated banks 9,931 5,107 6,096
Investment securities taxable 883,033 876,806 1,040,945
Investment securities nontaxable 41,557 45,056 47,877
Total Investment Securities 924,590 921,862 1,088,822
Commercial loans 466,666 405,929 329,929
Real estate construction loans 132,956 138,280 106,747
Real estate commercial loans 655,053 628,815 527,400
Real estate residential loans 781,062 767,199 753,014
Consumer loans 553,237 541,052 519,727
Total Loans 2,588,974 2,481,275 2,236,817
Less: Allowance for loan losses 33,552 33,179 30,482
Net Loans 2,555,422 2,448,096 2,206,335
Premises and equipment 48,077 49,616 40,795
Intangible assets 75,683 76,846 39,472
Other assets 52,593 50,277 42,397
Total Assets $3,841,739 $3,708,888 $3,587,829
Liabilities and Shareholders' Equity:
Noninterest-bearing deposits $551,087 $532,752 $530,010
Interest-bearing deposits 2,408,162 2,434,484 2,347,416
Total Deposits 2,959,249 2,967,236 2,877,426
FHLB borrowings 285,191 155,373 148,573
Other borrowings - short term 95,371 91,524 88,949
Interest payable and other liabilities 33,569 36,706 29,741
Total Liabilities 3,373,380 3,250,839 3,144,689
Shareholders' Equity:
Common stock, $1 par value 23,944 23,801 23,665
Surplus 333,475 328,774 324,213
Retained earnings 110,054 94,746 78,558
Accumulated other comprehensive
income 886 10,728 16,704
Total Shareholders' Equity 468,359 458,049 443,140
Total Liabilities and
Shareholders' Equity $3,841,739 $3,708,888 $3,587,829
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) 2004 2003 2004 2003
Interest Income:
Interest and fees on loans $37,481 $36,155 $74,959 $72,569
Interest on investment securities:
Taxable 8,276 9,778 17,152 20,458
Nontaxable 526 639 1,091 1,316
Total Interest on Securities 8,802 10,417 18,243 21,774
Interest on federal funds sold 202 107 403 443
Interest on deposits with unaffiliated
banks 98 18 163 157
Total Interest Income 46,583 46,697 93,768 94,943
Interest Expense:
Interest on deposits 7,523 9,453 15,214 20,293
Interest on FHLB borrowings 2,548 2,077 5,124 4,190
Interest on other borrowings - short
term 103 138 199 307
Total Interest Expense 10,174 11,668 20,537 24,790
Net Interest Income 36,409 35,029 73,231 70,153
Provision for loan losses 661 1,272 1,407 1,567
Net Interest Income after
Provision for Loan Losses 35,748 33,757 71,824 68,586
Noninterest Income:
Service charges on deposit accounts 4,757 4,262 9,311 8,153
Trust services revenue 1,871 1,791 3,780 3,518
Other charges and fees for customer
services 1,806 1,834 3,354 3,749
Mortgage banking revenue 1,080 1,861 1,860 3,408
Investment securities gains 267 308 1,250 492
Other 224 30 412 80
Total Noninterest Income 10,005 10,086 19,967 19,400
Operating Expenses:
Salaries and employee benefits 14,693 13,594 29,494 27,283
Occupancy and equipment 4,440 4,016 9,284 8,029
Other 5,787 5,572 11,302 10,896
Total Operating Expenses 24,920 23,182 50,080 46,208
Income Before Income Taxes 20,833 20,661 41,711 41,778
Federal income taxes 6,967 6,991 13,726 14,094
Net Income $13,866 $13,670 $27,985 $27,684
Net income per share:
Basic $0.58 $0.58 $1.17 $1.17
Diluted 0.58 0.58 1.17 1.17
Cash dividends per share 0.265 0.250 0.530 0.500
Average shares outstanding:
Basic 23,934 23,684 23,913 23,690
Diluted 24,009 23,735 23,998 23,738
Financial Summary (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
Quarter Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Average Balances
Total assets $3,876,665 $3,563,035 $3,877,963 $3,568,663
Total interest-earning
assets 3,632,968 3,368,826 3,628,558 3,383,787
Total loans 2,559,608 2,173,962 2,538,344 2,137,557
Total deposits 3,001,871 2,856,439 3,009,285 2,859,093
Total shareholders' equity 469,366 441,358 466,317 437,694
Quarter Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Key Ratios (annualized
where applicable)
Net interest margin 4.07% 4.22% 4.09% 4.24%
Efficiency ratio 53.3% 50.9% 53.6% 51.1%
Return on average assets 1.44% 1.54% 1.45% 1.56%
Return on average
shareholders' equity 11.9% 12.4% 12.1% 12.8%
Average shareholders'
equity as a percent of average
assets 12.1% 12.4% 12.0% 12.3%
Tangible shareholders'
equity as a percent of total
assets 10.4% 11.4%
Total risk-based capital ratio 16.9% 18.7%
June 30,
2004 2003
Credit Quality Statistics
Nonaccrual loans $5,413 $5,139
Loans 90 or more days past due
and still accruing 5,488 5,066
Total nonperforming loans 10,901 10,205
Repossessed assets
acquired (RAA) 7,344 5,659
Total nonperforming assets 18,245 15,864
Net loan charge-offs 1,034 1,757
Allowance for loan losses
as a percent of total loans 1.30% 1.36%
Allowance for loan losses
as a percent of nonperforming
loans 308% 299%
Nonperforming loans as a
percent of total loans 0.42% 0.46%
Nonperforming assets as a
percent of total loans
plus RAA 0.70% 0.71%
Net loan charge-offs as a
percent of average loans 0.08% 0.17%
June 30,
2004 2003
Additional Data
Goodwill $63,293 $27,940
Core deposits and other
intangibles 9,138 9,130
Mortgage servicing rights 3,252 2,402
Amortization of intangibles 1,580 1,989
Selected Quarterly Information (Unaudited)
Chemical Financial Corporation and Subsidiaries
(Dollars in thousands)
2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
2004 2004 2003 2003 2003
Summary of Operations
Interest income $46,583 $47,185 $44,857 $45,237 $46,697
Interest expense 10,174 10,363 10,002 10,473 11,668
Net interest income 36,409 36,822 34,855 34,764 35,029
Provision for loan losses 661 746 727 540 1,272
Net interest income after
provision for loan losses 35,748 36,076 34,128 34,224 33,757
Noninterest income 10,005 9,962 9,420 10,274 10,086
Noninterest expense 24,920 25,160 23,014 22,701 23,182
Income taxes 6,967 6,759 6,971 7,328 6,991
Net income 13,866 14,119 13,563 14,469 13,670
Per Common Share Data
Net income:
Basic $0.58 $0.59 $0.57 $0.61 $0.58
Diluted 0.58 0.59 0.57 0.61 0.58
Cash dividends 0.265 0.265 0.25 0.25 0.25
Book value 19.56 19.63 19.25 18.94 18.73
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 & Chief Executive
Officer, +1-989-839-5269, or Lori A. Gwizdala, Executive Vice
President & Chief Financial Officer, +1-989-839-5358, both of
Chemical Financial Corporation
|
