MIDLAND, Mich., Oct. 15 /PRNewswire/ -- Alan W. Ott, Chairman of Chemical
Financial Corporation (Nasdaq: CHFC), today announced record third quarter net
income of $12,976,000, up 23.4% over net income of $10,519,000 for the third
quarter of 2000. On a per share basis, net income for the quarter ending
September 30, 2001 was $.61 per share, an increase of 24.5% over the $.49 per
share earned in the third quarter of 2000.
The Corporation's return on average assets and return on average equity
was 1.58% and 13.8%, respectively, for the three months ended September 30,
2001, as compared to 1.38% and 12.5%, respectively, for the three months ended
September 30, 2000.
The growth in net income in the third quarter, as compared to the
comparable period in 2000, resulted from a 15.9% increase in net interest
income and from a 22% increase in non-interest income, primarily attributable
to increased gains on the sale of real estate mortgages in the secondary
market.
For the nine months ended September 30, 2001, the Corporation earned net
operating income of $36,022,000, or $1.68 per share, as compared to net income
of $30,620,000, or $1.43 per share, for the first nine months of 2000. This
represents an increase of 17.5% 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 nine months of 2001
of $28,946,000, or $1.35 per share.
The Corporation completed the acquisition of Bank West Financial
Corporation ("BWFC") on September 14, 2001. BWFC was the parent company of
Bank West, a Michigan stock savings bank with six offices in Kent and Ottawa
Counties and total assets of approximately $300 million. Bank West was merged
into the Corporation's existing subsidiary, Chemical Bank West, Cadillac, MI.
The total value of the transaction was $29.8 million and was accounted for by
the purchase method of accounting. Therefore, the assets and liabilities of
Bank West are reflected in the Corporation's balance sheet as of September 30,
2001 and the net income of Bank West from September 14, 2001 forward is
included in the consolidated income statement.
Total assets at September 30, 2001 were $3.52 billion, up $465 million, or
15.2%, from September 30, 2000. Total deposits at September 30, 2001 were
$2.81 billion, up 14.3% over total deposits of $2.46 billion at September 30,
2000. Total loans increased 21.6% during the latest twelve months, from $1.83
billion at September 30, 2000, to $2.22 billion in outstanding loans at
September 30, 2001.
The Corporation's provision for loan losses for the three and nine months
ended September 30, 2001 was $432,000 and $1,274,000, respectively, as
compared to net loan losses during the same time periods of $372,000 and
$777,000, respectively. As of September 30, 2001, the allowance for loan
losses was $31.14 million and represented 1.40% of total loans. Nonperforming
loans were $13.3 million, or .60% of total loans, at the current quarter end.
Shareholders' equity at September 30, 2001 was $383.7 million, or $17.91
per share, and represented 10.9% of total assets at the current quarter end.
Chemical Financial Corporation is the fourth largest bank holding company
headquartered in Michigan. The Company's four 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. 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 Third Quarter Operating Results
Consolidated Balance Sheets (Unaudited)
Chemical Financial Corporation and Subsidiaries
September 30
(In thousands) 2001 2000
Assets
Cash and demand deposits due from
banks $129,506 $113,650
Federal funds sold 133,550 136,100
Interest-bearing deposits with
unaffiliated banks 52,228 5,550
Investment securities taxable 841,086 833,798
Investment securities nontaxable 61,793 66,949
Total Investment Securities 902,879 900,747
Commercial and agricultural loans 350,181 300,194
Real estate construction loans 115,536 78,378
Real estate commercial loans 414,554 301,368
Real estate residential loans 837,796 760,356
Consumer loans 504,458 386,956
Total Loans 2,222,525 1,827,252
Less: Allowance for loan losses 31,143 26,435
Net Loans 2,191,382 1,800,817
Premises and equipment 42,736 37,740
Intangible assets 43,111 22,072
Other assets 25,629 39,820
Total Assets $3,521,021 $3,056,496
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $435,818 $383,507
Interest-bearing deposits 2,378,756 2,079,532
Total Deposits 2,814,574 2,463,039
Other borrowings 129,017 109,830
Interest payable and other
liabilities 23,554 24,303
FHLB advances 170,168 113,413
Total Liabilities 3,137,313 2,710,585
Shareholders' Equity:
Common stock, $1 par value 21,427 21,381
Surplus 258,685 257,466
Retained earnings 89,039 70,155
Accumulated other
comprehensive income
(loss) 14,557 (3,091)
Total Shareholders' Equity 383,708 345,911
Total Liabilities and
Shareholders' Equity $3,521,021 $3,056,496
Chemical Financial Corporation Announces Third Quarter Operating Results
Consolidated Statements of Income (Unaudited)
Chemical Financial Corporation and Subsidiaries
Quarter Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share
data) 2001 2000 2001 2000
Interest Income
Interest and fees on loans $41,016 $37,708 $117,944 $108,222
Interest on investment securities:
Taxable 12,200 13,113 37,276 39,735
Nontaxable 813 918 2,553 2,668
Total Interest on
Securities 13,013 14,031 39,829 42,403
Interest on federal funds sold 1,126 2,083 4,016 5,094
Interest on deposits with
unaffiliated banks 236 148 454 516
Total Interest Income 55,391 53,970 162,243 156,235
Interest Expense
Interest on deposits 19,702 21,960 60,820 62,591
Interest on short-term borrowings 635 1,330 2,317 3,036
Interest on medium- and long-term
borrowings 1,632 1,852 5,004 4,736
Total Interest Expense 21,969 25,142 68,141 70,363
Net Interest Income 33,422 28,828 94,102 85,872
Provision for loan losses 432 290 1,274 730
Net Interest Income after
provision for loan losses 32,990 28,538 92,828 85,142
Noninterest Income
Trust services revenue 1,603 1,655 4,938 5,066
Service charges on deposit accounts 2,574 2,583 7,994 7,436
Other charges and fees for customer
services 1,737 1,605 5,164 4,804
Mortgage banking income 1,727 444 3,659 1,133
Investment securities gains 122 17 414 92
Other 131 154 391 359
Total Noninterest Income 7,894 6,458 22,560 18,890
Operating Expenses
Salaries and employee benefits 12,303 11,450 35,588 34,098
Occupancy and equipment 3,396 3,262 10,096 9,768
Other 5,694 4,714 15,724 14,904
Merger related/consolidation 9,167 -
Total Operating Expenses 21,393 19,426 70,575 58,770
Income Before Income Taxes 19,491 15,570 44,813 45,262
Federal income taxes 6,515 5,051 15,867 14,642
Net Income $12,976 $10,519 $28,946 $30,620
Net income per share:
Basic $0.61 $0.49 $1.35 $1.43
Diluted 0.61 0.49 1.35 1.43
Diluted - operating
income 0.61 0.49 1.68 1.43
Cash dividends per share 0.24 0.22 0.72 0.66
Average shares outstanding:
Basic 21,432 21,395 21,428 21,434
Diluted 21,497 21,444 21,483 21,493
Chemical Financial Corporation Announces Third Quarter Operating Results
Financial Summary
Chemical Financial Corporation and Subsidiaries
Quarter Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Average Balances
(Dollars in thousands)
Total assets $3,261,785 $3,042,812 $3,126,873 $2,988,519
Total earning assets 3,068,196 2,841,600 2,943,552 2,799,528
Total loans 2,023,392 1,795,612 1,926,651 1,748,769
Total deposits 2,626,991 2,436,758 2,517,248 2,426,220
Total shareholders'
equity 374,274 335,891 363,630 334,878
Shareholders'
equity/assets 11.5% 11.0% 11.6% 11.2%
At Period End (Dollars
in thousands)
Credit Quality
Statistics
Nonaccrual loans $7,284 $7,359
Loans 90 or more days
past due and still accruing 6,045 1,763
Restructured loans 0 18
Total nonperforming
loans 13,329 9,140
Repossessed assets
acquired (RAA) 621 897
Total nonperforming
assets 13,950 10,037
Net loans charged off 777 469
Allowance for loan
losses ratio 1.40% 1.45%
Allowance for loan
losses as a
percent of
nonperforming
loans 234% 289%
Nonperforming loans as a
percent of total loans 0.60% 0.50%
Nonperforming assets as
a percent of total loans plus RAA 0.63% 0.55%
Net loans charged off as a percent of
average loans (annualized) 0.05% 0.04%
Performance Ratios
(annualized)
Net interest margin (FTE) 4.40% 4.13% 4.36% 4.19%
Return on average assets 1.58% 1.38% 1.24% 1.37%
Return on average assets
- net operating income (1) 1.58% 1.38% 1.54% 1.37%
Return on average
shareholders' equity 13.8% 12.5% 10.6% 12.2%
Return on average
shareholders' equity -
net operating income (1) 13.8% 12.5% 13.2% 12.2%
Chemical Financial Corporation Announces Third Quarter Operating Results
Selected Quarterly Information
Chemical Financial Corporation and Subsidiaries
3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr.
2001 2001 2001 2000 2000
Summary of Operations
(thousands)
Interest income $55,391 $53,300 $53,552 $54,641 $53,970
Interest expense 21,969 22,099 24,073 25,593 25,142
Net interest income 33,422 31,201 29,479 29,048 28,828
Provision for loan losses 432 437 405 857 290
Net interest income after
provision for loan losses 32,990 30,764 29,074 28,191 28,538
Noninterest income 7,894 7,644 7,022 6,450 6,458
Noninterest expense before
special charge 21,393 20,234 19,781 19,381 19,426
Special charge:
Before tax - - 9,167 - -
After tax - - 7,076 - -
Income taxes 6,515 6,093 3,259 5,079 5,051
Net income 12,976 12,081 3,889 10,181 10,519
Net operating income (1) 12,976 12,081 10,965 10,181 10,519
Per Common Share Data
Net income:
Basic $0.61 $0.56 $0.18 $0.47 $0.49
Diluted 0.61 0.56 0.18 0.47 0.49
Diluted - net
operating income (1) 0.61 0.56 0.51 0.47 0.49
Cash dividends 0.24 0.24 0.24 0.22 0.22
Book value 17.91 17.28 16.91 16.72 16.18
(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
 back to top
Related links:
http://chemicalbankmi.com
Company News On-Call:
http://www.prnewswire.com/comp/157448.html
CONTACT:
Aloysius J. Oliver, +1-989-839-5352, or Lori
A. Gwizdala, +1-989-839-5358, both of Chemical Financial
Corporation
|
