MIDLAND, Mich., April 16, 2012 (GLOBE NEWSWIRE) -- Chemical Financial Corporation (Nasdaq:CHFC) today announced 2012 first quarter net income of $12.4 million, or $0.45 per diluted share, compared to 2011 fourth quarter net income of $11.2 million, or $0.41 per diluted share, and 2011 first quarter net income of $9.2 million, or $0.33 per diluted share.
"We continued to create momentum entering the new year and our earnings performance continued its upward trend. Our 2012 first quarter earnings of $0.45 per share were 36 percent higher than 2011 first quarter earnings per share and marked the highest level of quarterly earnings per share Chemical Financial has reported since the fourth quarter of 2006. In addition to a lower loan loss provision and higher net interest income, this quarter's earnings, as compared to the first quarter of 2011, were aided by an after-tax nonrecurring gain of $0.9 million from the sale of our merchant processing business to First Data, which bolstered noninterest income," said David B. Ramaker, Chairman, Chief Executive Officer and President of the Corporation.
"We are benefiting from continued stability in the Michigan economy, and have seen pockets of increasing economic strength. At the same time, we remain cognizant of the challenges at hand, and diligent in our efforts to proactively address asset quality issues," added Ramaker. "We feel that we are uniquely positioned to continue our pattern of long-term growth and profitability, both organically and via acquisition opportunities that we believe will arise as our state's banking industry consolidates," said Ramaker.
The increase in net income in the first quarter of 2012 over the fourth quarter of 2011 was attributable to a $1.1 million increase in noninterest income and a $1.5 million decrease in operating expenses that was partially offset by a decrease in net interest income of $0.9 million. The increase in net income in the first quarter of 2012 over the first quarter of 2011 was attributable to a $1.0 million increase in net interest income, a $2.5 million decrease in the provision for loan losses and a $1.9 million increase in noninterest income that was partially offset by a $0.9 million increase in operating expenses.
The Corporation's return on average assets during the first quarter of 2012 was 0.92 percent, up from 0.83 percent in the fourth quarter of 2011 and 0.70 percent in the first quarter of 2011. The Corporation's return on average equity was 8.7 percent in the first quarter of 2012, up from 7.7 percent in the fourth quarter of 2011 and 6.6 percent in the first quarter of 2011.
Net interest income was $46.2 million in the first quarter of 2012, down $0.9 million, or 1.9 percent, from the fourth quarter of 2011 and up $1.0 million, or 2.2 percent, from the first quarter of 2011.
The decrease in net interest income in the first quarter of 2012, as compared to the fourth quarter of 2011, was primarily attributable to the timing of certain sources of interest income. The positive impact of average loans being $52 million higher in the first quarter of 2012, as compared to the fourth quarter of 2011, was offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the quarter.
The increase in net interest income in the first quarter of 2012 over the first quarter of 2011 was primarily attributable to an increase in average loans of $152 million, or 4.1 percent, between these two quarters that was partially offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the twelve months ended March 31, 2012.
The net interest margin (on a tax-equivalent basis) in the first quarter of 2012 was 3.76 percent, compared to 3.84 percent in the fourth quarter of 2011 and 3.78 percent in the first quarter of 2011.
The provision for loan losses was $5.0 million in the first quarter of 2012, compared to $5.1 million in the fourth quarter of 2011 and $7.5 million in the first quarter of 2011. Net loan charge-offs were $5.5 million in both the first quarter of 2012 and fourth quarter of 2011, compared to $7.4 million in the first quarter of 2011.
Noninterest income was $12.6 million in the first quarter of 2012, up from $11.5 million in the fourth quarter of 2011 and $10.8 million in the first quarter of 2011. The higher level of noninterest income in the first quarter of 2012 was primarily attributable to the sale of the Corporation's merchant card servicing business to First Data in the first quarter of 2012 that resulted in a nonrecurring gain on the sale of $1.3 million. The transaction will provide additional merchant services to customers and will also provide the Corporation with future revenue sharing opportunities.
Operating expenses were $36.3 million in the first quarter of 2012, down from $37.8 million in the fourth quarter of 2011 and up from $35.4 million in the first quarter of 2011. The decrease in operating expenses of $1.5 million in the first quarter of 2012, as compared to the fourth quarter of 2011, was largely attributable to a reduction in credit-related operating expenses. During the fourth quarter of 2011, the Corporation recognized net expense of $1.9 million applicable to writedowns of other real estate (ORE) and net realized gains/losses on ORE sales, compared to a net gain of $0.3 million in the first quarter of 2012. The increase in operating expenses of $0.9 million in the first quarter of 2012, as compared to the first quarter of 2011, was primarily attributable to higher compensation costs that were partially offset by lower loan collection costs, consulting expenses and FDIC premiums. The Corporation's efficiency ratio was 60.4 percent in the first quarter of 2012, compared to 63.1 percent in the fourth quarter of 2011 and 61.8 percent in the first quarter of 2011.
Total assets were $5.45 billion at March 31, 2012, up from $5.34 billion at both December 31, 2011 and March 31, 2011. The increase in total assets during the first quarter of 2012 was largely attributable to an increase in interest-bearing balances held at the Federal Reserve Bank (FRB) resulting from an increase in customer deposits. The Corporation continues to maintain significant amounts of funds generated from deposit growth at the FRB, and thus maintains a high level of available liquidity, with $348 million in balances held at the FRB at March 31, 2012, compared to $256 million at December 31, 2011 and $520 million at March 31, 2011.
Total loans were $3.84 billion at March 31, 2012, compared to $3.83 billion at December 31, 2011 and $3.68 billion at March 31, 2011. The increase in total loans of $161 million, or 4.4 percent, during the twelve months ended March 31, 2012 was attributable to a combination of improving economic conditions and higher loan demand, as well as the Corporation increasing its market share. During the twelve months ended March 31, 2012, commercial loans increased $83 million, or 10.1 percent, real estate commercial loans increased $21 million, or 1.9 percent, real estate residential loans increased $52 million, or 6.5 percent, and consumer installment and home equity loans increased $43 million, or 5.1 percent, while real estate construction loans decreased $38 million, or 27 percent. Loan demand eased in the first quarter of 2012 with an increase in total loans of $12 million, or an annualized growth rate of 1.2 percent. The average yield on the loan portfolio was 5.10 percent in the first quarter of 2012, compared to 5.25 percent in the fourth quarter of 2011 and 5.48 percent in the first quarter of 2011.
Investment securities were $867 million at March 31, 2012, compared to $851 million at December 31, 2011 and $750 million at March 31, 2011.
Total deposits were $4.46 billion at March 31, 2012, compared to $4.37 billion at December 31, 2011 and $4.38 billion at March 31, 2011. The Corporation experienced an increase of $95 million, or 2.2 percent, in total deposits during the first quarter of 2012, primarily attributable to increases in consumer demand deposit and savings accounts. Federal Home Loan Bank (FHLB) advances totaled $42.1 million at March 31, 2012, compared to $43.1 million at December 31, 2011 and $72.9 million at March 31, 2011. Brokered deposits totaled $94 million at March 31, 2012, compared to $95 million at December 31, 2011 and $151 million at March 31, 2011. The repricing of matured customer certificates of deposit and various interest-bearing deposit accounts resulted in the Corporation's average cost of funds declining to 0.67 percent in the first quarter of 2012 from 0.73 percent in the fourth quarter of 2011 and 0.87 percent in the first quarter of 2011.
At March 31, 2012, the Corporation's tangible equity to assets ratio and total risk-based capital ratio were 8.7 percent and 13.7 percent, respectively, compared to 8.7 percent and 13.3 percent, respectively, at December 31, 2011 and 8.5 percent and 13.0 percent, respectively, at March 31, 2011. At March 31, 2012, the Corporation's book value was $21.10 per share, compared to $20.82 per share at December 31, 2011 and $20.54 per share at March 31, 2011.
The credit quality of the Corporation's loan portfolio showed further improvement during the first quarter of 2012. At March 31, 2012, the Corporation's nonperforming loans, consisting of nonaccrual loans, accruing loans past due 90 days or more and nonperforming troubled debt restructurings, totaled $98.5 million, compared to $106.3 million at December 31, 2011 and $145.9 million at March 31, 2011, representing declines of 7.3 percent and 32.4 percent, respectively. At March 31, 2012, the Corporation's $473 million acquired loan portfolio was overall performing better than expected, despite the establishment of a $2.2 million allowance for loan losses on these loans that was primarily attributable to one of the fourteen loan pools experiencing a decline in expected cash flows, with $0.6 million of this allowance established in the first quarter of 2012.
Other real estate and repossessed assets totaled $25.9 million at March 31, 2012, compared to $25.5 million at December 31, 2011 and $26.4 million at March 31, 2011.
At March 31, 2012, the allowance for loan losses of the originated portfolio was $85.6 million, or 2.54 percent of originated loans, compared to 2.60 percent at December 31, 2011 and 2.85 percent at March 31, 2011. The allowance for loan losses of the originated portfolio as a percentage of nonperforming loans was 87 percent at March 31, 2012, compared to 82 percent at December 31, 2011 and 61 percent at March 31, 2011. At March 31, 2012, nonperforming loans as a percentage of total loans were 2.56 percent, down from 2.77 percent at December 31, 2011 and 3.96 percent at March 31, 2011.
Chemical Financial Corporation is the second-largest bank holding company headquartered and operating branch offices in Michigan. The Corporation operates through a single subsidiary bank, Chemical Bank, with 142 banking offices spread over 32 counties in the lower peninsula of Michigan. At March 31, 2012, the Corporation had total assets of $5.5 billion. Chemical Financial Corporation's common stock trades on The NASDAQ Stock Market under the symbol CHFC and is one of the issues comprising The NASDAQ Global Select Market. More information about the Corporation is available by visiting the investor relations section of its website at www.chemicalbankmi.com.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and Chemical Financial Corporation. Words such as "anticipated," "believe," "capitalize," "continue," "feel," "focus," "further," "improving," "intends," "look," "opportunities," "progress," "strategies," "trends," "will," "yet" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to the credit quality of the loan portfolio, future levels of nonperforming loans, future economic trends and conditions, anticipated consolidation opportunities in Michigan's banking industry, future income levels, and our ability to grow our loan portfolio, improve credit quality and control operating costs. All statements referencing future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the carrying value of acquired loans, goodwill, mortgage servicing rights and other real estate owned and the fair value of investment securities (including whether any impairment on any investment security is temporary or other-than-temporary and the amount of any impairment) involve judgments that are inherently forward-looking. Management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated or that other real estate owned can be sold for its carrying value or at all. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and on the Corporation, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") 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. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
Risk factors include, but are not limited to, the risk factors described in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2011. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.
| Chemical Financial Corporation Announces First Quarter Operating Results | ||||
| Consolidated Statements of Financial Position (Unaudited) | ||||
| Chemical Financial Corporation | ||||
| March 31 | December 31 | March 31 | ||
| (In thousands, except per share data) | 2012 | 2011 | 2011 | |
| Assets: | ||||
| Cash and cash equivalents: | ||||
| Cash and cash due from banks | $ 120,435 | $ 121,294 | $ 116,445 | |
| Interest-bearing deposits with unaffiliated banks and others | 353,243 | 260,646 | 525,174 | |
| Total cash and cash equivalents | 473,678 | 381,940 | 641,619 | |
| Investment securities: | ||||
| Available-for-sale | 676,007 | 667,276 | 585,992 | |
| Held-to-maturity | 191,297 | 183,339 | 163,890 | |
| Total Investment Securities | 867,304 | 850,615 | 749,882 | |
| Loans held-for-sale | 25,080 | 18,818 | 4,033 | |
| Loans: | ||||
| Commercial | 903,935 | 895,150 | 821,115 | |
| Real estate commercial | 1,095,793 | 1,071,999 | 1,074,842 | |
| Real estate construction and land development | 101,157 | 118,176 | 139,439 | |
| Real estate residential | 861,301 | 861,716 | 809,085 | |
| Consumer installment and home equity | 880,912 | 884,244 | 838,035 | |
| Total Loans | 3,843,098 | 3,831,285 | 3,682,516 | |
| Allowance for loan losses | (87,785) | (88,333) | (89,674) | |
| Net Loans | 3,755,313 | 3,742,952 | 3,592,842 | |
| Premises and equipment | 66,661 | 65,997 | 65,135 | |
| Goodwill | 113,414 | 113,414 | 113,414 | |
| Other intangible assets | 10,939 | 11,472 | 13,060 | |
| Interest receivable and other assets | 139,130 | 154,245 | 155,110 | |
| Total Assets | $ 5,451,519 | $ 5,339,453 | $ 5,335,095 | |
| Liabilities: | ||||
| Deposits: | ||||
| Noninterest-bearing | $ 914,523 | $ 875,791 | $ 766,876 | |
| Interest-bearing | 3,546,861 | 3,491,066 | 3,615,395 | |
| Total Deposits | 4,461,384 | 4,366,857 | 4,382,271 | |
| Interest payable and other liabilities | 32,809 | 54,024 | 30,038 | |
| Short-term borrowings | 335,082 | 303,786 | 286,193 | |
| Federal Home Loan Bank advances | 42,120 | 43,057 | 72,854 | |
| Total Liabilities | 4,871,395 | 4,767,724 | 4,771,356 | |
| Shareholders' Equity: | ||||
| Preferred stock, no par value per share | -- | -- | -- | |
| Common stock, $1 par value per share | 27,491 | 27,457 | 27,451 | |
| Additional paid-in capital | 431,549 | 431,277 | 429,990 | |
| Retained earnings | 145,195 | 138,324 | 120,935 | |
| Accumulated other comprehensive loss | (24,111) | (25,329) | (14,637) | |
| Total Shareholders' Equity | 580,124 | 571,729 | 563,739 | |
| Total Liabilities and Shareholders' Equity | $ 5,451,519 | $ 5,339,453 | $ 5,335,095 | |
| Chemical Financial Corporation Announces First Quarter Operating Results | ||||
| Consolidated Statements of Income (Unaudited) | ||||
| Chemical Financial Corporation | ||||
| Three Months Ended | ||||
| March 31 | ||||
| (In thousands, except per share data) | 2012 | 2011 | ||
| Interest Income: | ||||
| Interest and fees on loans | $ 48,256 | $ 49,440 | ||
| Interest on investment securities: | ||||
| Taxable | 2,565 | 2,324 | ||
| Tax-exempt | 1,485 | 1,479 | ||
| Dividends on nonmarketable equity securities | 130 | 123 | ||
| Interest on deposits with unaffiliated banks and others | 228 | 309 | ||
| Total Interest Income | 52,664 | 53,675 | ||
| Interest Expense: | ||||
| Interest on deposits | 6,102 | 7,878 | ||
| Interest on short-term borrowings | 104 | 150 | ||
| Interest on Federal Home Loan Bank advances | 263 | 442 | ||
| Total Interest Expense | 6,469 | 8,470 | ||
| Net Interest Income | 46,195 | 45,205 | ||
| Provision for loan losses | 5,000 | 7,500 | ||
| Net Interest Income after Provision for Loan Losses | 41,195 | 37,705 | ||
| Noninterest Income: | ||||
| Service charges on deposit accounts | 4,505 | 4,096 | ||
| Wealth management revenue | 2,921 | 2,766 | ||
| Other charges and fees for customer services | 2,689 | 2,658 | ||
| Mortgage banking revenue | 1,185 | 1,064 | ||
| Gain on sale of merchant card services | 1,280 | -- | ||
| Other | 69 | 188 | ||
| Total Noninterest Income | 12,649 | 10,772 | ||
| Operating Expenses: | ||||
| Salaries, wages and employee benefits | 20,569 | 18,325 | ||
| Occupancy | 3,154 | 3,338 | ||
| Equipment and software | 3,118 | 2,722 | ||
| Other | 9,454 | 11,004 | ||
| Total Operating Expenses | 36,295 | 35,389 | ||
| Income Before Income Taxes | 17,549 | 13,088 | ||
| Federal Income Tax Expense | 5,175 | 3,900 | ||
| Net Income | $ 12,374 | $ 9,188 | ||
| Net income per common share: | ||||
| Basic | $ 0.45 | $ 0.33 | ||
| Diluted | 0.45 | 0.33 | ||
| Cash dividends declared per common share | 0.20 | 0.20 | ||
| Average common shares outstanding: | ||||
| Basic | 27,478 | 27,451 | ||
| Diluted | 27,539 | 27,482 | ||
| Chemical Financial Corporation Announces First Quarter Operating Results | |||||
| Financial Summary (Unaudited) | |||||
| Chemical Financial Corporation | |||||
| Three Months Ended | |||||
| March 31 | Dec 31 | Sept 30 | June 30 | March 31 | |
| (Dollars in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 |
| Average Balances | |||||
| Total assets | $ 5,396,420 | $ 5,341,079 | $ 5,323,962 | $ 5,255,244 | $ 5,302,558 |
| Total interest-earning assets | 5,061,882 | 5,008,813 | 4,985,380 | 4,928,590 | 4,963,384 |
| Total loans | 3,824,604 | 3,772,140 | 3,769,745 | 3,707,468 | 3,672,301 |
| Total deposits | 4,416,273 | 4,378,066 | 4,358,658 | 4,299,728 | 4,362,774 |
| Total interest-bearing liabilities | 3,903,986 | 3,847,003 | 3,853,443 | 3,857,678 | 3,942,406 |
| Total shareholders' equity | 574,261 | 578,105 | 573,580 | 565,500 | 560,661 |
| Key Ratios (annualized where applicable) | |||||
| Net interest margin (taxable equivalent basis) | 3.76% | 3.84% | 3.80% | 3.78% | 3.78% |
| Efficiency ratio | 60.4% | 63.1% | 60.2% | 58.2% | 61.8% |
| Return on average assets | 0.92% | 0.83% | 0.87% | 0.84% | 0.70% |
| Return on average shareholders' equity | 8.7% | 7.7% | 8.0% | 7.8% | 6.6% |
| Average shareholders' equity as a percent of average assets | 10.6% | 10.8% | 10.8% | 10.8% | 10.6% |
| Capital ratios (period end): | |||||
| Tangible shareholders' equity as a percent of total assets | 8.7% | 8.7% | 8.6% | 8.9% | 8.5% |
| Total risk-based capital ratio | 13.7% | 13.3% | 13.1% | 13.0% | 13.0% |
| March 31 | Dec 31 | Sept 30 | June 30 | March 31 | |
| 2012 | 2011 | 2011 | 2011 | 2011 | |
| Credit Quality Statistics | |||||
| Originated Loans | $ 3,370,279 | $ 3,338,502 | $ 3,265,054 | $ 3,225,179 | $ 3,143,489 |
| Acquired Loans | 472,819 | 492,783 | 495,372 | 522,831 | 539,027 |
| Nonperforming Loans: | |||||
| Nonaccrual loans | 79,153 | 78,394 | 91,112 | 105,350 | 106,296 |
| Accruing loans past due 90 days or more | 2,646 | 3,817 | 3,015 | 3,744 | 2,196 |
| Troubled debt restructurings | 16,749 | 24,058 | 26,268 | 26,835 | 37,367 |
| Total nonperforming loans | 98,548 | 106,269 | 120,395 | 135,929 | 145,859 |
| Other real estate and repossessed assets (ORE) | 25,944 | 25,484 | 28,679 | 24,607 | 26,355 |
| Total nonperforming assets | 124,492 | 131,753 | 149,074 | 160,536 | 172,214 |
| Performing troubled debt restructurings | 27,177 | 20,394 | 15,543 | 12,889 | -- |
| Allowance for loan losses-originated as a percent of: | |||||
| Total originated loans | 2.54% | 2.60% | 2.68% | 2.78% | 2.85% |
| Nonperforming loans | 87% | 82% | 73% | 66% | 61% |
| Nonperforming loans as a percent of total loans | 2.56% | 2.77% | 3.20% | 3.63% | 3.96% |
| Nonperforming assets as a percent of: | |||||
| Total loans plus ORE | 3.22% | 3.42% | 3.93% | 4.26% | 4.64% |
| Total assets | 2.28% | 2.47% | 2.74% | 3.08% | 3.23% |
| Net loan charge-offs as a percent of average loans (year-to-date, annualized) | 0.58% | 0.73% | 0.78% | 0.77% | 0.80% |
| March 31 | Dec 31 | Sept 30 | June 30 | March 31 | |
| 2012 | 2011 | 2011 | 2011 | 2011 | |
| Additional Data - Intangibles | |||||
| Goodwill | $ 113,414 | $ 113,414 | $ 113,414 | $ 113,414 | $ 113,414 |
| Core deposit intangibles | 7,512 | 7,879 | 8,261 | 8,643 | 9,024 |
| Mortgage servicing rights (MSR) | 3,427 | 3,593 | 3,561 | 3,577 | 3,832 |
| Other intangible assets | -- | -- | 27 | 107 | 204 |
| Amortization of core deposit intangibles (quarter only) | 367 | 382 | 382 | 381 | 382 |
| Chemical Financial Corporation Announces First Quarter Operating Results | ||||||||
| Average Balances, Tax Equivalent Interest and Effective Yields and Rates (Unaudited)* | ||||||||
| Three Months Ended March 31, 2012 | ||||||||
| Tax | ||||||||
| Average | Equivalent | Effective | ||||||
| (Dollars in thousands) | Balance | Interest | Yield/Rate | |||||
| Assets | ||||||||
| Interest-Earning Assets: | ||||||||
| Loans** | $ 3,842,168 | $ 48,737 | 5.10% | |||||
| Taxable investment securities | 663,689 | 2,565 | 1.55 | |||||
| Tax-exempt investment securities | 182,543 | 2,261 | 4.95 | |||||
| Other interest-earning assets | 25,572 | 130 | 2.05 | |||||
| Interest-bearing deposits with unaffiliated banks and others | 347,910 | 228 | 0.26 | |||||
| Total interest-earning assets | 5,061,882 | 53,921 | 4.28 | |||||
| Less: Allowance for loan losses | 88,595 | |||||||
| Other Assets: | ||||||||
| Cash and cash due from banks | 112,357 | |||||||
| Premises and equipment | 66,261 | |||||||
| Interest receivable and other assets | 244,515 | |||||||
| Total Assets | $ 5,396,420 | |||||||
| Liabilities and shareholders' equity | ||||||||
| Interest-bearing Liabilities: | ||||||||
| Interest-bearing demand deposits | $ 880,665 | $ 272 | 0.12% | |||||
| Savings deposits | 1,162,328 | 394 | 0.14 | |||||
| Time deposits | 1,497,913 | 5,436 | 1.46 | |||||
| Short-term borrowings | 320,476 | 104 | 0.13 | |||||
| FHLB advances | 42,604 | 263 | 2.48 | |||||
| Total interest-bearing liabilities | 3,903,986 | 6,469 | 0.67 | |||||
| Noninterest-bearing deposits | 875,367 | |||||||
| Total deposits and borrowed funds | 4,779,353 | |||||||
| Interest payable and other liabilities | 42,806 | |||||||
| Shareholders' equity | 574,261 | |||||||
| Total Liabilities and Shareholders' Equity | $ 5,396,420 | |||||||
| Net Interest Spread (Average yield earned minus average rate paid) | 3.61% | |||||||
| Net Interest Income (FTE) | $ 47,452 | |||||||
| Net Interest Margin (Net Interest Income (FTE) divided by total average interest-earning assets) | 3.76% | |||||||
| * Taxable equivalent basis using a federal income tax rate of 35%. | ||||||||
| ** Nonaccrual loans and loans held-for-sale are included in average balances reported and are included in the calculation of yields. | ||||||||
| Also, tax equivalent interest includes net loan fees. | ||||||||
| Chemical Financial Corporation Announces First Quarter Operating Results | |||||
| Nonperforming Assets (Unaudited) | |||||
| Chemical Financial Corporation | |||||
| March 31 | Dec 31 | Sept 30 | June 30 | March 31 | |
| (Dollars in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 |
| Nonperforming Loans: | |||||
| Nonaccrual loans: | |||||
| Commercial | $ 11,443 | $ 10,726 | $ 10,804 | $ 14,386 | $ 15,672 |
| Real estate commercial | 46,870 | 44,438 | 48,854 | 57,324 | 59,931 |
| Real estate construction and land development | 3,809 | 6,190 | 7,877 | 8,933 | 9,414 |
| Real estate residential | 12,687 | 12,573 | 17,544 | 17,809 | 15,505 |
| Consumer installment and home equity | 4,344 | 4,467 | 6,033 | 6,898 | 5,774 |
| Total nonaccrual loans | 79,153 | 78,394 | 91,112 | 105,350 | 106,296 |
|
Accruing loans contractually past due 90 days or more as to interest or principal payments: |
|||||
| Commercial | 1,005 | 1,381 | 282 | 629 | 455 |
| Real estate commercial | 75 | 374 | 415 | 143 | 459 |
| Real estate construction and land development | -- | 287 | -- | -- | -- |
| Real estate residential | 333 | 752 | 974 | 1,729 | 191 |
| Consumer installment and home equity | 1,233 | 1,023 | 1,344 | 1,243 | 1,091 |
|
Total accruing loans contractually past due 90 days or more as to interest or principal payments |
2,646 | 3,817 | 3,015 | 3,744 | 2,196 |
| Nonperforming troubled debt restructurings: | |||||
| Commercial loan portfolio | 11,258 | 14,675 | 16,457 | 15,443 | 15,201 |
| Consumer loan portfolio | 5,491 | 9,383 | 9,811 | 11,392 | 22,166 |
| Total nonperforming troubled debt restructurings | 16,749 | 24,058 | 26,268 | 26,835 | 37,367 |
| Total nonperforming loans | 98,548 | 106,269 | 120,395 | 135,929 | 145,859 |
| Other real estate and repossessed assets | 25,944 | 25,484 | 28,679 | 24,607 | 26,355 |
| Total nonperforming assets | $ 124,492 | $ 131,753 | $ 149,074 | $ 160,536 | $ 172,214 |
| Chemical Financial Corporation Announces First Quarter Operating Results | |||||
| Summary of Loan Loss Experience (Unaudited) | |||||
| Chemical Financial Corporation | |||||
| Three Months Ended | |||||
| March 31 | Dec 31 | Sept 30 | June 30 | March 31 | |
| (Dollars in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 |
| Allowance for loan losses at beginning of period | $ 88,333 | $ 88,713 | $ 89,733 | $ 89,674 | $ 89,530 |
| Provision for loan losses | 5,000 | 5,100 | 6,400 | 7,000 | 7,500 |
| Loans charged off: | |||||
| Commercial | (1,079) | (1,768) | (1,234) | (1,972) | (1,976) |
| Real estate commercial | (2,268) | (2,120) | (3,969) | (3,168) | (3,875) |
| Real estate construction and land development | (32) | (54) | (236) | (136) | (63) |
| Real estate residential | (1,717) | (945) | (1,884) | (1,198) | (944) |
| Consumer installment and home equity | (1,451) | (1,434) | (1,516) | (1,832) | (1,784) |
| Total loan charge-offs | (6,547) | (6,321) | (8,839) | (8,306) | (8,642) |
| Recoveries of loans previously charged off: | |||||
| Commercial | 191 | 137 | 614 | 710 | 215 |
| Real estate commercial | 421 | 272 | 285 | 212 | 87 |
| Real estate construction and land development | 2 | 40 | -- | 5 | -- |
| Real estate residential | 22 | 80 | 207 | 106 | 456 |
| Consumer installment and home equity | 363 | 312 | 313 | 332 | 528 |
| Total loan recoveries | 999 | 841 | 1,419 | 1,365 | 1,286 |
| Net loan charge-offs | (5,548) | (5,480) | (7,420) | (6,941) | (7,356) |
| Allowance for loan losses at end of period | $ 87,785 | $ 88,333 | $ 88,713 | $ 89,733 | $ 89,674 |
| Allowance for loan losses-originated | $ 85,585 | $ 86,733 | $ 87,413 | $ 89,733 | $ 89,674 |
| Allowance for loan losses-acquired | 2,200 | 1,600 | 1,300 | -- | -- |
| Provision for loan losses (year-to-date) | $ 5,000 | $ 26,000 | $ 20,900 | $ 14,500 | $ 7,500 |
| Net loan charge-offs (year-to-date) | 5,548 | 27,197 | 21,717 | 14,297 | 7,356 |
| Chemical Financial Corporation Announces First Quarter Operating Results | ||||||||||
| Selected Quarterly Information (Unaudited) | ||||||||||
| Chemical Financial Corporation | ||||||||||
| 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | ||||||
| (Dollars in thousands, except per share data) | 2012 | 2011 | 2011 | 2011 | 2011 | |||||
| Summary of Operations | ||||||||||
| Interest income | $ 52,664 | $ 54,130 | $ 53,998 | $ 53,439 | $ 53,675 | |||||
| Interest expense | 6,469 | 7,045 | 7,729 | 8,145 | 8,470 | |||||
| Net interest income | 46,195 | 47,085 | 46,269 | 45,294 | 45,205 | |||||
| Provision for loan losses | 5,000 | 5,100 | 6,400 | 7,000 | 7,500 | |||||
| Net interest income after provision for loan losses | 41,195 | 41,985 | 39,869 | 38,294 | 37,705 | |||||
| Noninterest income | 12,649 | 11,501 | 11,225 | 10,902 | 10,772 | |||||
| Operating expenses | 36,295 | 37,807 | 35,394 | 33,413 | 35,389 | |||||
| Income before income taxes | 17,549 | 15,679 | 15,700 | 15,783 | 13,088 | |||||
| Federal income tax expense | 5,175 | 4,475 | 4,075 | 4,750 | 3,900 | |||||
| Net income | $ 12,374 | $ 11,204 | $ 11,625 | $ 11,033 | $ 9,188 | |||||
| Net interest margin | 3.76% | 3.84% | 3.80% | 3.78% | 3.78% | |||||
| Per Common Share Data | ||||||||||
| Net income: | ||||||||||
| Basic | $ 0.45 | $ 0.41 | $ 0.42 | $ 0.40 | $ 0.33 | |||||
| Diluted | 0.45 | 0.41 | 0.42 | 0.40 | 0.33 | |||||
| Cash dividends declared | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | |||||
| Book value - period-end | 21.10 | 20.82 | 21.02 | 20.78 | 20.54 | |||||
| Tangible book value - period-end | 16.84 | 16.54 | 16.71 | 16.46 | 16.19 | |||||
| Market value - period-end | 23.44 | 21.32 | 15.31 | 18.76 | 19.93 | |||||