MIDLAND, Mich., Oct. 6 /PRNewswire/ -- Aloysius J. Oliver, President and
CEO of Chemical Financial Corporation (Nasdaq: CHFC), announced today that
Chemical intends to consolidate 9 of its existing subsidiary banks into 2
subsidiary bank organizations: Chemical Bank & Trust Company which will be
headquartered in Midland; and Chemical Bank West which will be headquartered
in Cadillac. Coming together with Chemical Bank & Trust Company to form the
Midland bank group will be Chemical Bank Bay Area, Chemical Bank Michigan,
Chemical Bank Thumb Area and Chemical Bank Key State. Forming the Cadillac
affiliate will be Chemical Bank West, joined by Chemical bank Montcalm,
Chemical Bank Central and Chemical Bank North. Mr. Oliver stated,
"Consolidation of our subsidiary banks is expected to produce potential
internal efficiency savings. We do not anticipate any changes in the way we
serve our customers and deliver services, or in our level of commitment to the
communities we serve."
In August, Chemical and Shoreline Financial Corporation announced that the
two organizations had signed a definitive agreement for a merger of equals of
the two companies. The anticipated costs of the consolidation of Chemical's
subsidiary banks has already been taken into consideration in the anticipated
one-time $10-12 million (pre-tax) restructuring charge announced by Chemical
in connection with the pending merger. Chemical's 10th subsidiary, Chemical
Bank South, Marshall, is not being consolidated at this time, in anticipation
of a future consolidation following completion of the Shoreline transaction.
Chemical is a multi-bank holding company headquartered in Midland,
Michigan, with total assets of approximately $1.9 billion, total deposits of
$1.6 billion and total loans of $1.0 billion as of June 30, 2000. Its ten
subsidiary banks provide a broad array of banking and financial services
through 88 "Chemical Bank" offices in 24 counties across the mid-section of
Michigan's lower peninsula. Upon completion of the merger with Shoreline,
Chemical will have 120 banking offices, and assets of $3 billion.
Chemical common stock is traded on The Nasdaq National 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.
SOURCE Chemical Financial Corporation
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CONTACT:
Aloysius J. Oliver, President and CEO of
Chemical Financial Corporation, 517-839-5350
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