Chemical Financial Corporation ("Corporation" or "Chemical")
(NASDAQ:CHFC) today announced 2018 fourth quarter net income of
$73.0 million, or $1.01 per diluted share, compared to 2018 third
quarter net income of $70.4 million, or $0.98 per diluted share,
and 2017 fourth quarter net income of $9.4 million, or $0.13 per
diluted share. Net income in the fourth quarter of 2017, excluding
merger and restructuring expenses, the revaluation of our net
deferred tax assets following the signing of the Tax Cuts and Jobs
Act in December 2017 and losses on sales of investment securities
taken as part of our treasury and tax management objectives (which
we collectively refer to herein as "significant items"), a non-GAAP
financial measure, was $62.7 million, or $0.87 per diluted
share.(1) Net income for the full year 2018 was $284.0 million, or
$3.94 per diluted share, compared to $149.5 million, or $2.08 per
diluted share for the full year 2017. Net income for the full year
2017, excluding significant items, a non-GAAP financial measure,
was $219.6 million, or $3.06 per diluted share.(1) As
previously announced, on January 22, 2019, our Board of
Directors declared a first quarter of 2019 dividend on our common
stock of $0.34 per share. The first quarter of 2019 dividend will
be payable on March 15, 2019, to shareholders of record on
March 1, 2019.
"We are pleased with our results for the quarter
which reflect loan growth fueling our continued trend of increasing
net interest income, improvement in our operating efficiency and an
increase in net interest margin," noted David T. Provost, Chief
Executive Officer of the Corporation and Thomas C. Shafer, Vice
Chairman of the Corporation and Chief Executive Office of Chemical
Bank. "We fully recognize and have appreciation for the dedicated
efforts of our employees who have strengthened our foundation and
positioned us for continued growth and sound operating performance
in the years to come."
Our return on average assets was 1.39% during
the fourth quarter of 2018, compared to 1.37% in the third quarter
of 2018, and 0.20% in the fourth quarter of 2017. Our return on
average shareholders' equity was 10.4% in the fourth quarter of
2018, compared to 10.2% in the third quarter of 2018 and 1.4% in
the fourth quarter of 2017. Our return on average tangible
shareholders' equity, a non-GAP financial measure, was 17.8% in the
fourth quarter of 2018, compared to 17.5% in the third quarter of
2018, and 2.5% in the fourth quarter of 2017. During the fourth
quarter of 2017, our return on average assets and return on
average tangible shareholders' equity, excluding significant items,
both non-GAAP financial measures, was 1.31% and 16.5%,
respectively.(1)
Our net interest income was $163.5 million for
the fourth quarter of 2018, $4.0 million, or 2.5%, higher than the
third quarter of 2018, and $17.5 million, or 12.0%, higher than the
fourth quarter of 2017. The increase in net interest income for the
fourth quarter of 2018, compared to both the third quarter of 2018
and the fourth quarter of 2017 was primarily attributable to
increases in average balances and yields earned on loans and
investment securities, partially offset by an increase in average
deposit balances and cost of funds. Fourth quarter 2018 net loan
growth was $473.5 million, or an annualized growth rate of 12.8%,
and net loan growth over the past twelve months was $1.11 billion,
or 7.9%. Our investment securities portfolio grew by $300.7 million
in the fourth quarter of 2018, compared to the third quarter of
2018, and $1.01 billion, compared to the fourth quarter of
2017.
Our net interest margin was 3.42% for both the
fourth quarter of 2018 and the third quarter of 2018, compared to
3.39% for the fourth quarter of 2017. The net interest margin
(fully taxable equivalent (FTE)), a non-GAAP financial measure,
increased to 3.49% for the fourth quarter of 2018, compared to
3.48% for the third quarter of 2018, and 3.47% for the fourth
quarter of 2017.(1) The increase in our net interest margin
(FTE), for the fourth quarter of 2018, compared to both the third
quarter of 2018 and the fourth quarter of 2017, was primarily due
to increases in average balances and yields earned on loans and
investment securities, partially offset by an increase in average
interest-bearing deposit balances and cost of funds. Our average
cost of funds was 1.03% for the fourth quarter of 2018, compared to
0.88% for the third quarter of 2018, and 0.56% for the fourth
quarter of 2017. The average yield on our loan portfolio increased
to 4.80% in the fourth quarter of 2018, compared to 4.68% in the
third quarter of 2018 and 4.31% in the fourth quarter of 2017.
Interest accretion from purchase accounting discounts on acquired
loans contributed 23 basis points to our net interest margin (FTE)
in both the fourth quarter of 2018 and the third quarter of 2018,
compared to 22 basis points in the fourth quarter of 2017.
Our net interest income was $632.3 million for
the year ended December 31, 2018, $74.8 million, or 13.4%,
higher than the year ended December 31, 2017. The increase in
net interest income for the year ended December 31, 2018,
compared to the year ended December 31, 2017, was primarily
attributable to increases in average balances and yields earned on
loans and investments securities, partially offset by increases in
average interest-bearing deposit balances and cost of funds. Our
average balance of loans outstanding during the year ended
December 31, 2018 was up $998.3 million, compared to the prior
year. Our net interest margin improved to 3.48% for the year ended
2018, compared to 3.40% for the year ended 2017. Our net interest
margin (FTE), a non-GAAP financial measure, increased to 3.53% for
the year ended 2018, compared to 3.48% for the year ended
2017.(1)
Our provision for loan losses was $8.9 million
for the fourth quarter of 2018, compared to $6.0 million for the
third quarter of 2018 and $7.5 million for the fourth quarter of
2017. The higher provision for loan losses for the fourth quarter
of 2018, compared to both the third quarter of 2018 and the fourth
quarter of 2017, was primarily the result of an increase in
originated loan growth. Our provision for loan losses was $30.8
million for the year ended December 31, 2018, compared to
$23.3 million for the year ended December 31, 2017, with the
increase primarily due to an increase in originated loan
growth.
Net loan charge-offs were $3.0 million, or 0.08%
of average loans, for the fourth quarter of 2018, compared to $2.0
million, or 0.05% of average loans, for the third quarter of 2018
and $1.4 million, or 0.04% of average loans, for the fourth quarter
of 2017. Net loan charge-offs totaled $12.7 million, or 0.09% of
average loans, for the year ended December 31, 2018, compared to
$9.7 million, or 0.07% of average loans, for the year ended
December 31, 2017.
Our nonperforming loans totaled $85.4 million at
December 31, 2018, compared to $96.7 million at
September 30, 2018 and $63.1 million at December 31,
2017. Nonperforming loans comprised 0.56% of total loans at
December 31, 2018, compared to 0.65% at September 30,
2018, and 0.45% at December 31, 2017. The decrease in
nonperforming loans as a percentage of total loans at
December 31, 2018, compared to September 30, 2018, was
primarily due to the fourth quarter of 2018 settlement of a real
estate construction loan relationship. The increase in
nonperforming loans as a percentage of total loans at
December 31, 2018, compared to December 31, 2017, was
primarily due to commercial and commercial real estate loan
relationships that were downgraded to nonaccrual status during the
year ended December 31, 2018. Each nonperforming loan is
individually evaluated for impairment and we have either
established a specific reserve within our allowance for loan losses
or charged the loan relationship down to the value of the
underlying collateral.
Our total allowance for loan losses was $110.0
million at December 31, 2018. Our allowance for loan losses on
our originated loan portfolio was $109.6 million, or 0.93% of
originated loans, at December 31, 2018, compared to $103.1
million, or 0.93% of originated loans, at September 30, 2018
and $91.9 million, or 0.94% of originated loans, at
December 31, 2017. Our allowance for loan losses on our
originated loan portfolio as a percentage of nonperforming loans
was 128.7% at December 31, 2018, compared to 106.6% at
September 30, 2018, and 145.6% at December 31, 2017. We
recorded all acquired loans at their estimated fair value at each
respective acquisition date without a carryover of the related
allowance and, as of December 31, 2018 and September 30,
2018, our allowance for loan losses on our acquired loan portfolio
was $420 thousand and $970 thousand, respectively. At
December 31, 2017, we determined no allowance was needed for
our acquired loan
portfolio.
Our noninterest income was $32.0 million for the fourth quarter of
2018, compared to $37.9 million for the third quarter of 2018, and
$32.3 million for the fourth quarter of 2017. Noninterest income
for the fourth quarter of 2018 was lower than the third quarter of
2018, primarily due to a decrease in net gain on sale of loans and
other mortgage banking revenue of $5.9 million due to a detriment
to earnings caused by a change in fair value in loan servicing
rights and lower production volume, and a decrease in bank-owned
life insurance of $0.9 million, partially offset by an increase in
electronic banking fees of $0.8 million. Noninterest income in the
fourth quarter of 2018 was slightly lower than the fourth quarter
of 2017, primarily due to decreases in net gain on sale of loans
and other mortgage banking revenue of $3.9 million, service charges
and fees on deposit accounts of $1.3 million and other noninterest
income of $2.6 million, partially offset by the $7.6 million loss
on sale of investment securities incurred in the fourth quarter of
2017, as part of our treasury and tax management objectives. Net
gain on sale of loans and other mortgage banking revenue included a
$2.8 million detriment to earnings due to a change in fair value in
loan servicing rights for the fourth quarter of 2018, compared to a
$0.9 million benefit for the third quarter of 2018, and a $13
thousand detriment for the fourth quarter of 2017. The change in
fair value in loan servicing rights was a detriment of $0.03 to
diluted earnings per share for the fourth quarter of 2018, compared
to a benefit of $0.01 for the third quarter of 2018 and no impact
for the fourth quarter of
2017.
Our noninterest income was $148.5 million for the year ended
December 31, 2018, compared to $144.0 million for the year
ended 2017, which increased primarily due to the $7.6 million loss
on sale of investment securities incurred in the fourth quarter of
2017 and an increase in net gain on sale of loans and other
mortgage banking revenue of $3.0 million for the year ended
December 31, 2018, partially offset by a decrease in
electronic banking fees of $5.9 million for the year ended
December 31, 2018. Net gain on sale of loans and other
mortgage banking revenue included a $1.8 million benefit to
earnings due to a change in fair value in loan servicing rights for
the year ended December 31, 2018, compared to a $6.4 million
detriment for the year ended December 31, 2017.
Our operating expenses were $108.4 million for
the fourth quarter of 2018, compared to $109.7 million for the
third quarter of 2018, and $100.0 million for the fourth quarter of
2017. We had no merger and restructuring expenses during the fourth
or third quarters of 2018, compared to $2.6 million for the fourth
quarter of 2017. Fourth quarter of 2018 included $5.8 million of
impairment related to federal historic tax credits, compared to
$3.2 million for the third quarter of 2018 and $6.2 million for the
fourth quarter of 2017, included within other operating expense.
The fourth quarter of 2018 also included expense related to our
efforts to implement upgrades to our core operating systems of $1.6
million, compared to $2.7 million for the third quarter of 2018.
Our operating expenses excluding the impact of federal historic tax
credits, core operating system conversion expense and merger and
restructuring expenses, were $101.0 million for the fourth quarter
of 2018, compared to $103.8 million for the third quarter of 2018
and $91.3 million for the fourth quarter of 2017. The $2.8 million
decrease for the fourth quarter of 2018 operating expenses
excluding the previously noted items, compared to the third quarter
of 2018, was primarily due to $0.9 million of early lease
termination expense in the third quarter of 2018, which reduced
occupancy expense in the fourth quarter of 2018, and decreases in
credit-related and other expenses included within other operating
expenses. The $9.7 million increase in operating expenses excluding
the previously noted items, compared to the fourth quarter of 2017,
was primarily due to an increase in salaries, wages and employee
benefits impacted by increases in staff to support our strategic
focus on commercial lending growth and an increase in outside
processing and service fees due to the substantial enhancements to
our core operating systems.
Our operating expenses were $424.2 million for
the year ended December 31, 2018, compared to $422.0 million
for the year ended 2017. We had no merger and restructuring
expenses during the year ended December 31, 2018, compared to
$28.4 million for 2017. The year ended December 31, 2018
included $12.3 million of impairment related to federal historic
tax credits, compared to $9.3 million for 2017. The year ended
December 31, 2018 also included expense related to our efforts
to implement upgrades to our core operating systems of $8.5
million. Operating expenses, excluding the impact of federal
historic tax credits, core operation system conversion expense and
merger and restructuring expenses, were $403.4 million for the year
ended December 31, 2018, an increase of $19.1 million compared
to the year ended 2017, primarily due to an increase in salaries,
wages and employee benefits impacted by increases in staff to
support our strategic focus on commercial lending growth and an
increase in outside processing and service fees due to the
substantial enhancements to our core operating systems.
Our efficiency ratio is a measure of operating
expenses as a percentage of net interest income and noninterest
income. Our efficiency ratio was 55.4% for the fourth quarter of
2018, compared to 55.6% for the third quarter of 2018 and 56.1% for
the fourth quarter of 2017. Our efficiency ratio was 54.3% for the
year ended December 31, 2018 and 60.1% for the year ended 2017. Our
adjusted efficiency ratio, a non-GAAP financial measure, which
excludes, as applicable, significant items, amortization of
intangibles, impairment of income tax credits, the net interest
income FTE adjustment, the change in fair value on loan servicing
rights, and losses/gains from sale of investment securities, was
50.4% for the fourth quarter of 2018, compared to 52.8% for the
third quarter of 2018 and 47.4% for the fourth quarter of 2017.(1)
Our adjusted efficiency ratio was 51.5% for the year ended
December 31, 2018 and 51.9% for the year ended 2017.(1)
Our effective tax rate was 6.6% for the fourth
quarter of 2018, compared to 13.8% for the third quarter of 2018
and 86.6% for the fourth quarter of 2017. Our tax rates for periods
during 2018 benefited from the enactment of the Tax Cuts and Jobs
Act which reduced the federal corporate tax rate to 21% effective
January 1, 2018. The tax rate for each period benefited from
federal historic tax credits of $6.2 million for the fourth quarter
of 2018, $3.2 million for the third quarter of 2018 and $6.2
million for the fourth quarter of 2017. The income tax benefit from
the tax credits placed into service was partially offset by the
impairment recorded on the same tax credits included within other
operating expenses. The effective tax rate for the fourth quarter
of 2018 also benefited from adjustments to our tax provisional
amounts related to the one year measurement period provided by
Staff Accounting Bulletin No. 118 in order to finalize items that
were not available in the enactment period associated with the
passing of the Tax Cuts and Jobs Act and by certain changes in
estimates associated with the filing of our final 2017 tax return.
The fourth quarter of 2017 was also impacted by the $46.7 million
charge to income tax expense as a result of the revaluation of our
net deferred tax assets. The effective tax rate for the year ended
December 31, 2018 was 12.9%, compared to 41.7% for the year ended
2017. The tax rate for each period benefited from federal historic
tax credits of $12.9 million in the year ended December 31, 2018
and $9.3 million for the year ended December 31, 2017.
Our total assets were $21.50 billion at
December 31, 2018, compared to $20.91 billion at
September 30, 2018, and $19.28 billion at December 31,
2017. The increase in our total assets during both the fourth
quarter of 2018 and the year ended December 31, 2018 was
primarily attributable to net loan growth and additions to our
investment securities portfolio.
Our total loans were $15.27 billion at
December 31, 2018, an increase of $473.5 million, or 3.2%,
from total loans of $14.80 billion at September 30, 2018, and
an increase of $1.11 billion, or 7.9%, from total loans of $14.16
billion at December 31, 2017. We experienced originated loan
growth of $699.3 million in the fourth quarter of 2018, compared to
$448.9 million in the third quarter of 2018, and $591.3 million in
the fourth quarter of 2017. Growth in our originated loan portfolio
was partially offset by run-off in our acquired loan portfolio of
$225.8 million in the fourth quarter of 2018, compared to $232.4
million in the third quarter of 2018, and $269.4 million in the
fourth quarter of 2017. We experienced originated loan growth of
$2.10 billion for the year ended December 31, 2018, partially
offset by run-off in our acquired loan portfolio of $982.8
million.
Our investment securities portfolio totaled
$3.65 billion at December 31, 2018, an increase of $300.7
million, from $3.35 billion at September 30, 2018, and an
increase of $1.01 billion, from $2.64 billion at December 31,
2017. The increase in both the fourth quarter of 2018 and the year
ended December 31, 2018 reflects our long-term plan to
increase our investment securities portfolio as a percentage of
total assets.
Our total deposits were $15.59 billion at
December 31, 2018, compared to $15.44 billion at
September 30, 2018, and $13.64 billion at December 31,
2017. The increase in deposits during the fourth quarter of 2018
was due to an increase in customer deposits of $78.3 million driven
by interest-bearing demand and other time deposit accounts and an
increase in brokered deposits of $70.2 million. The increase in
deposits during the year ended December 31, 2018 was primarily
due to increases of $1.42 billion in customer deposits, with
increases across all categories, and $532.3 million in brokered
deposits. Collateralized customer deposits were $382.7 million at
December 31, 2018, compared to $377.5 million at
September 30, 2018, and $415.2 million at December 31,
2017. Loans as a percentage of deposits plus collateralized
customer deposits were 95.6% at December 31, 2018, compared to
93.5% at September 30, 2018 and 100.7% at December 31,
2017.
Our short-term borrowings were $2.04 billion at
December 31, 2018, compared to $1.67 billion at
September 30, 2018, and $2.00 billion at December 31,
2017. Our short-term borrowings include short-term FHLB advances
that we used to fund our short-term liquidity needs. Our long-term
borrowings were $426.0 million at December 31, 2018, compared
to $431.0 million at September 30, 2018, and $372.9 million at
December 31, 2017.
Our shareholders' equity to total assets ratio
was 13.2% at December 31, 2018, compared to 13.3% at
September 30, 2018, and 13.8% at December 31, 2017. Our
tangible shareholders' equity to assets ratio, a non-GAAP financial
measure, and total risk-based capital ratio, were 8.3% and 11.5%
(estimated), respectively, at December 31, 2018, compared to
8.3% and 11.7%, respectively, at September 30, 2018, and 8.3%
and 11.0%, respectively, at December 31, 2017.(1) Our book
value was $39.69 per share at December 31, 2018, compared to
$39.04 per share at September 30, 2018 and $37.48 per share at
December 31, 2017. Our tangible book value, a non-GAAP
financial measure, was $23.54 per share at December 31, 2018,
compared to $22.87 per share at September 30, 2018, and $21.21
per share at December 31, 2017.(1)
(1) |
Please refer to the
section entitled "Non-GAAP Financial Measures" in this press
release and to the financial tables entitled "Reconciliation of
Non-GAAP Financial Measures" for a reconciliation to the most
directly comparable GAAP financial measures. |
Subsequent Event
As announced and further described in a separate
press release issued by Chemical today, Chemical and TCF Financial
Corporation have entered into a merger agreement under which the
companies will combine in an all stock merger of equals
transaction.
Conference Call Details
In light of today's announcement that Chemical
has entered into a merger agreement with TCF Financial Corporation
("TCF"), Chemical has canceled its live conference webcast to
review fourth quarter 2018 financial results that was scheduled for
Tuesday, January 29, 2019 at 10:30 am ET. Instead, Chemical and TCF
will jointly host a live conference call and webcast today at 10:00
am ET to discuss the merger and Chemical will also discuss its
fourth quarter 2018 financial results. To listen to the live call,
please dial 888-378-4398 and enter 575396 for the conference ID.
The webcast of the conference call, along with related slides, will
be accessible through Chemical's and TCF's websites as well as
through the joint transaction website www.PremierMidwestBank.com.
The conference call will also be available for replay through TCF's
and Chemical's websites.
About Chemical Financial
Corporation
Chemical Financial Corporation is the largest
banking company headquartered and operating branch offices in
Michigan. The Corporation operates through its subsidiary bank,
Chemical Bank, with 212 banking offices located in Michigan,
northeast Ohio and northern Indiana. At December 31, 2018, the
Corporation had total consolidated assets of $21.50 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 and the S&P MidCap
400 Index. More information about the Corporation is available by
visiting the "Investor Info" section of our website at
www.chemicalbank.com.
Non-GAAP Financial Measures
This press release contains references to
financial measures which are not defined in generally accepted
accounting principles ("GAAP"). Such non-GAAP financial measures
include net income (excluding significant items), diluted earnings
per share (excluding significant items), return on average assets,
return on average shareholders' equity and return on average
tangible shareholders' equity (each excluding significant items),
tangible book value per share, the presentation of net interest
income and net interest margin on a FTE basis, core operating
expenses, operating expenses-efficiency ratio, and the adjusted
efficiency ratio.
These non-GAAP financial measures have been
included we believe they are helpful for investors to analyze and
evaluate our financial condition. However, these non-GAAP financial
measures have inherent limitations and should not be considered in
isolation or as a substitute for GAAP measures. In addition,
because non-GAAP measures are not standardized, it may not be
possible to compare the non-GAAP historical measures in this press
release with other companies non-GAAP financial measures.
Reconciliations of non-GAAP financial measures to the most directly
comparable GAAP financial measure may be found in the financial
tables included with this press release.
Forward-Looking Statements
Statements included in this press release which
are not historical in nature are intended to be, and hereby are
identified as, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Examples of
forward-looking statements include, but are not limited to,
statements regarding our belief that we are positioned for
continued growth and strong operating performance. Words and
phrases such as “anticipates,” “believes,” “plans,” “continue,”
“estimates,” “expects,” “forecasts,” “future,” “intends,” “is
likely,” “judgment,” “look ahead,” “look forward,” “on schedule,”
“opinion,” “opportunity,” “potential,” “predicts,” “probable,”
“projects,” “should,” “strategic,” “trend,” “will,” and variations
of such words and phrases or similar expressions are intended to
identify such forward-looking statements.
Management's determination of the provision and
allowance for loan losses; the carrying value of acquired loans,
goodwill and loan servicing rights; 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); and management's assumptions concerning pension and
other postretirement benefit plans involve judgments that are
inherently forward-looking. The future effect of changes in the
financial and credit markets and the national and regional
economies on the banking industry, generally, and on Chemical,
specifically, are also inherently uncertain.
Forward-looking statements are subject to risks,
uncertainties and assumptions that are difficult to predict with
regard to timing, extent, likelihood and degree of occurrence,
which could cause actual results to differ materially from
anticipated results. Such risks, uncertainties and assumptions,
include, among others, the following:
- our ability to attract and retain new commercial lenders and
other bankers as well as key operations staff in light of
competition for experienced employees in the banking industry;
- operational and regulatory challenges associated with our
information technology systems and policies and procedures in
light of our rapid growth and systems conversion in 2018;
- our ability to grow deposits;
- our inability to execute on our strategy to expand investments
and commercial lending;
- our inability to efficiently manage our operating
expenses;
- economic conditions (both generally and in our markets) may be
less favorable than expected, which could result in, among other
things, a deterioration in credit quality, a reduction in demand
for credit and a decline in real estate values;
- a general decline in the real estate and lending markets,
particularly in our market areas, could negatively affect our
financial results;
- increased cybersecurity risk, including potential network
breaches, business disruptions, or financial losses;
- increases in competitive pressure in the banking and financial
services industry;
- the timing of when historic tax credits are placed into service
could impact operating expenses;
- current or future restrictions or conditions imposed by our
regulators on our operations may make it more difficult for us to
achieve our goals;
- legislative or regulatory changes, including changes in
accounting standards and compliance requirements, may adversely
affect us;
- changes in the interest rate environment may reduce margins or
the volumes or values of the loans we make or have acquired;
economic, governmental, or other factors may prevent the projected
population, residential, and commercial growth in the markets in
which we operate; and
- the risks, uncertainties and assumptions set forth under the
heading “Cautionary Note Regarding Forward-Looking Statements” in
the joint press release issued by Chemical and TCF on the date
hereof with respect to the proposed merger transaction between
Chemical and TCF.
Additional factors that could cause results to
differ materially from those described above can be found in the
risk factors described in Item 1A of Chemical’s Annual Report on
Form 10-K filed with the SEC for the year ended December 31,
2017. Annualized, pro forma, projected and estimated numbers
are used for illustrative purpose only, are not forecasts and may
not reflect actual results. Chemical disclaims any obligation
to update or revise any forward-looking statements contained in
this press release, which speak only as of the date hereof, whether
as a result of new information, future events or otherwise, except
as required by law.
For further information:David T.
Provost, CEODennis L. Klaeser, CFO800-867-9757
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Consolidated Statements of Financial Position
(Unaudited)Chemical Financial Corporation(In thousands, except per
share data)
|
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
Assets |
|
|
|
|
|
|
Cash and cash
equivalents: |
|
|
|
|
|
|
Cash and
cash due from banks |
|
$ |
228,527 |
|
|
$ |
285,605 |
|
|
$ |
226,003 |
|
Interest-bearing deposits with the Federal Reserve Bank and other
banks and federal funds sold |
|
267,312 |
|
|
379,158 |
|
|
229,988 |
|
Total
cash and cash equivalents |
|
495,839 |
|
|
664,763 |
|
|
455,991 |
|
Investment
securities: |
|
|
|
|
|
|
Carried
at fair value |
|
3,021,832 |
|
|
2,736,880 |
|
|
1,963,546 |
|
Held-to-maturity |
|
624,099 |
|
|
608,367 |
|
|
677,093 |
|
Total
investment securities |
|
3,645,931 |
|
|
3,345,247 |
|
|
2,640,639 |
|
Loans
held-for-sale |
|
85,030 |
|
|
93,736 |
|
|
52,133 |
|
Loans: |
|
|
|
|
|
|
Total
loans |
|
15,269,779 |
|
|
14,796,252 |
|
|
14,155,267 |
|
Allowance
for loan losses |
|
(109,984 |
) |
|
(104,041 |
) |
|
(91,887 |
) |
Net
loans |
|
15,159,795 |
|
|
14,692,211 |
|
|
14,063,380 |
|
Premises and
equipment |
|
123,442 |
|
|
123,305 |
|
|
126,896 |
|
Loan servicing
rights |
|
71,013 |
|
|
72,707 |
|
|
63,841 |
|
Goodwill |
|
1,134,568 |
|
|
1,134,568 |
|
|
1,134,568 |
|
Other intangible
assets |
|
28,556 |
|
|
29,981 |
|
|
34,271 |
|
Interest receivable and
other assets |
|
754,167 |
|
|
748,971 |
|
|
709,154 |
|
Total
Assets |
|
$ |
21,498,341 |
|
|
$ |
20,905,489 |
|
|
$ |
19,280,873 |
|
Liabilities |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
3,809,252 |
|
|
$ |
4,015,323 |
|
|
$ |
3,725,779 |
|
Interest-bearing |
|
11,784,030 |
|
|
11,429,529 |
|
|
9,917,024 |
|
Total
deposits |
|
15,593,282 |
|
|
15,444,852 |
|
|
13,642,803 |
|
Collateralized customer
deposits |
|
382,687 |
|
|
377,471 |
|
|
415,236 |
|
Short-term
borrowings |
|
2,035,000 |
|
|
1,670,000 |
|
|
2,000,000 |
|
Long-term
borrowings |
|
426,002 |
|
|
430,971 |
|
|
372,882 |
|
Interest payable and
other liabilities |
|
225,110 |
|
|
193,271 |
|
|
181,203 |
|
Total
liabilities |
|
18,662,081 |
|
|
18,116,565 |
|
|
16,612,124 |
|
Shareholders'
Equity |
|
|
|
|
|
|
Preferred
stock, no par value per share |
|
— |
|
|
— |
|
|
— |
|
Common
stock, $1 par value per share |
|
71,460 |
|
|
71,438 |
|
|
71,207 |
|
Additional paid-in capital |
|
2,209,761 |
|
|
2,207,631 |
|
|
2,203,637 |
|
Retained
earnings |
|
616,149 |
|
|
567,510 |
|
|
419,403 |
|
Accumulated other comprehensive loss |
|
(61,110 |
) |
|
(57,655 |
) |
|
(25,498 |
) |
Total
shareholders' equity |
|
2,836,260 |
|
|
2,788,924 |
|
|
2,668,749 |
|
Total
Liabilities and Shareholders' Equity |
|
$ |
21,498,341 |
|
|
$ |
20,905,489 |
|
|
$ |
19,280,873 |
|
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Consolidated Statements of Income (Unaudited)Chemical Financial
Corporation(In thousands, except per share data)
|
Three Months Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
Interest
Income |
|
|
|
|
|
|
|
|
|
Interest and fees on
loans |
$ |
180,983 |
|
|
$ |
172,686 |
|
|
$ |
150,558 |
|
|
$ |
675,875 |
|
|
$ |
573,128 |
|
Interest on investment
securities: |
|
|
|
|
|
|
|
|
|
Taxable |
18,746 |
|
|
16,360 |
|
|
10,289 |
|
|
62,231 |
|
|
31,496 |
|
Tax-exempt |
6,554 |
|
|
6,178 |
|
|
5,105 |
|
|
24,286 |
|
|
18,343 |
|
Dividends on
nonmarketable equity securities |
2,419 |
|
|
1,368 |
|
|
2,018 |
|
|
7,877 |
|
|
4,924 |
|
Interest on deposits
with the Federal Reserve Bank and other banks and federal funds
sold |
1,401 |
|
|
1,785 |
|
|
1,192 |
|
|
5,727 |
|
|
4,244 |
|
Total interest income |
210,103 |
|
|
198,377 |
|
|
169,162 |
|
|
775,996 |
|
|
632,135 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Interest on
deposits |
34,106 |
|
|
27,250 |
|
|
14,303 |
|
|
96,980 |
|
|
46,727 |
|
Interest on
collateralized customer deposits |
721 |
|
|
721 |
|
|
461 |
|
|
2,607 |
|
|
1,269 |
|
Interest on short-term
borrowings |
9,426 |
|
|
9,510 |
|
|
6,952 |
|
|
37,510 |
|
|
19,052 |
|
Interest on long-term
borrowings |
2,398 |
|
|
1,415 |
|
|
1,541 |
|
|
6,566 |
|
|
7,509 |
|
Total interest expense |
46,651 |
|
|
38,896 |
|
|
23,257 |
|
|
143,663 |
|
|
74,557 |
|
Net Interest
Income |
163,452 |
|
|
159,481 |
|
|
145,905 |
|
|
632,333 |
|
|
557,578 |
|
Provision for loan
losses |
8,894 |
|
|
6,028 |
|
|
7,522 |
|
|
30,750 |
|
|
23,300 |
|
Net interest income after provision for loan
losses |
154,558 |
|
|
153,453 |
|
|
138,383 |
|
|
601,583 |
|
|
534,278 |
|
Noninterest
Income |
|
|
|
|
|
|
|
|
|
Service charges and
fees on deposit accounts |
8,654 |
|
|
9,319 |
|
|
9,994 |
|
|
37,097 |
|
|
38,367 |
|
Wealth management
revenue |
6,457 |
|
|
6,040 |
|
|
6,539 |
|
|
25,996 |
|
|
25,512 |
|
Other charges and fees
for customer services |
6,506 |
|
|
5,349 |
|
|
6,601 |
|
|
21,437 |
|
|
29,405 |
|
Net gain on sale of
loans and other mortgage banking revenue |
3,977 |
|
|
9,837 |
|
|
7,925 |
|
|
35,193 |
|
|
32,205 |
|
Gain (loss) on sale of
investment securities |
221 |
|
|
— |
|
|
(7,556 |
) |
|
224 |
|
|
(7,388 |
) |
Other |
6,232 |
|
|
7,372 |
|
|
8,816 |
|
|
28,589 |
|
|
25,918 |
|
Total noninterest income |
32,047 |
|
|
37,917 |
|
|
32,319 |
|
|
148,536 |
|
|
144,019 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
Salaries, wages and
employee benefits |
56,828 |
|
|
56,894 |
|
|
47,363 |
|
|
225,427 |
|
|
212,094 |
|
Occupancy |
7,360 |
|
|
8,620 |
|
|
7,546 |
|
|
31,670 |
|
|
30,554 |
|
Equipment and
software |
7,641 |
|
|
8,185 |
|
|
8,000 |
|
|
31,761 |
|
|
32,248 |
|
Outside processing and
service fees |
11,698 |
|
|
12,660 |
|
|
9,081 |
|
|
45,387 |
|
|
35,142 |
|
Merger expenses |
— |
|
|
— |
|
|
1,511 |
|
|
— |
|
|
8,522 |
|
Restructuring
expenses |
— |
|
|
— |
|
|
1,056 |
|
|
— |
|
|
19,880 |
|
Other |
24,839 |
|
|
23,302 |
|
|
25,465 |
|
|
89,953 |
|
|
83,554 |
|
Total operating expenses |
108,366 |
|
|
109,661 |
|
|
100,022 |
|
|
424,198 |
|
|
421,994 |
|
Income before
income taxes |
78,239 |
|
|
81,709 |
|
|
70,680 |
|
|
325,921 |
|
|
256,303 |
|
Income tax expense |
5,200 |
|
|
11,312 |
|
|
61,234 |
|
|
41,901 |
|
|
106,780 |
|
Net
Income |
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
9,446 |
|
|
$ |
284,020 |
|
|
$ |
149,523 |
|
Earnings Per
Common Share: |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding-basic |
71,445 |
|
|
71,385 |
|
|
71,095 |
|
|
71,385 |
|
|
70,865 |
|
Weighted
average common shares outstanding-diluted |
72,079 |
|
|
72,087 |
|
|
71,682 |
|
|
72,025 |
|
|
71,513 |
|
Basic
earnings per common share |
$ |
1.02 |
|
|
$ |
0.99 |
|
|
$ |
0.13 |
|
|
$ |
3.98 |
|
|
$ |
2.11 |
|
Diluted
earnings per common share |
$ |
1.01 |
|
|
$ |
0.98 |
|
|
$ |
0.13 |
|
|
$ |
3.94 |
|
|
$ |
2.08 |
|
Diluted
earnings per common share, excluding significant items
(non-GAAP) |
$ |
1.01 |
|
|
$ |
0.98 |
|
|
$ |
0.87 |
|
|
$ |
3.94 |
|
|
$ |
3.06 |
|
Cash Dividends
Declared Per Common Share |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
0.28 |
|
|
$ |
1.24 |
|
|
$ |
1.10 |
|
Key Ratios
(annualized where applicable): |
|
|
|
|
|
|
|
|
|
Return on
average assets |
1.39 |
% |
|
1.37 |
% |
|
0.20 |
% |
|
1.41 |
% |
|
0.81 |
% |
Return on
average tangible shareholders' equity, excluding significant items
(non-GAAP) |
17.8 |
% |
|
17.5 |
% |
|
16.5 |
% |
|
17.9 |
% |
|
14.9 |
% |
Net
interest margin (FTE) (non-GAAP) |
3.49 |
% |
|
3.48 |
% |
|
3.47 |
% |
|
3.53 |
% |
|
3.48 |
% |
Efficiency ratio - GAAP |
55.4 |
% |
|
55.6 |
% |
|
56.1 |
% |
|
54.3 |
% |
|
60.1 |
% |
Efficiency ratio - adjusted (non-GAAP) |
50.4 |
% |
|
52.8 |
% |
|
47.4 |
% |
|
51.5 |
% |
|
51.9 |
% |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Selected Quarterly Information (Unaudited)Chemical Financial
Corporation(Dollars in thousands, except per share data)
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
4th Quarter 2017 |
|
3rd Quarter 2017 |
|
2nd Quarter 2017 |
|
1st Quarter 2017 |
Summary of
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
210,103 |
|
|
$ |
198,377 |
|
|
$ |
189,582 |
|
|
$ |
177,934 |
|
|
$ |
169,162 |
|
|
$ |
164,944 |
|
|
$ |
155,133 |
|
|
$ |
142,896 |
|
Interest expense |
|
46,651 |
|
|
38,896 |
|
|
32,045 |
|
|
26,071 |
|
|
23,257 |
|
|
21,316 |
|
|
17,185 |
|
|
12,799 |
|
Net interest
income |
|
163,452 |
|
|
159,481 |
|
|
157,537 |
|
|
151,863 |
|
|
145,905 |
|
|
143,628 |
|
|
137,948 |
|
|
130,097 |
|
Provision for loan
losses |
|
8,894 |
|
|
6,028 |
|
|
9,572 |
|
|
6,256 |
|
|
7,522 |
|
|
5,499 |
|
|
6,229 |
|
|
4,050 |
|
Net interest income
after provision for loan losses |
|
154,558 |
|
|
153,453 |
|
|
147,965 |
|
|
145,607 |
|
|
138,383 |
|
|
138,129 |
|
|
131,719 |
|
|
126,047 |
|
Noninterest income |
|
32,047 |
|
|
37,917 |
|
|
38,018 |
|
|
40,554 |
|
|
32,319 |
|
|
32,122 |
|
|
41,568 |
|
|
38,010 |
|
Operating expenses,
excluding merger and restructuring expenses and impairment of
income tax credits (non-GAAP) |
|
102,594 |
|
|
106,499 |
|
|
102,845 |
|
|
99,976 |
|
|
91,298 |
|
|
95,241 |
|
|
97,772 |
|
|
100,029 |
|
Merger and
restructuring expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,567 |
|
|
21,203 |
|
|
465 |
|
|
4,167 |
|
Impairment of income
tax credits |
|
5,772 |
|
|
3,162 |
|
|
1,716 |
|
|
1,634 |
|
|
6,157 |
|
|
3,095 |
|
|
— |
|
|
— |
|
Income before income
taxes |
|
78,239 |
|
|
81,709 |
|
|
81,422 |
|
|
84,551 |
|
|
70,680 |
|
|
50,712 |
|
|
75,050 |
|
|
59,861 |
|
Income tax expense |
|
5,200 |
|
|
11,312 |
|
|
12,434 |
|
|
12,955 |
|
|
61,234 |
|
|
10,253 |
|
|
23,036 |
|
|
12,257 |
|
Net income |
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
|
$ |
9,446 |
|
|
$ |
40,459 |
|
|
$ |
52,014 |
|
|
$ |
47,604 |
|
Significant items, net
of tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
53,240 |
|
|
13,782 |
|
|
302 |
|
|
2,709 |
|
Net income, excluding
significant items |
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
|
$ |
62,686 |
|
|
$ |
54,241 |
|
|
$ |
52,316 |
|
|
$ |
50,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common
Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.02 |
|
|
$ |
0.99 |
|
|
$ |
0.97 |
|
|
$ |
1.01 |
|
|
$ |
0.13 |
|
|
$ |
0.57 |
|
|
$ |
0.73 |
|
|
$ |
0.67 |
|
Diluted |
|
1.01 |
|
|
0.98 |
|
|
0.96 |
|
|
0.99 |
|
|
0.13 |
|
|
0.56 |
|
|
0.73 |
|
|
0.67 |
|
Diluted,
excluding significant items (non-GAAP) |
|
1.01 |
|
|
0.98 |
|
|
0.96 |
|
|
0.99 |
|
|
0.87 |
|
|
0.76 |
|
|
0.73 |
|
|
0.70 |
|
Cash dividends
declared |
|
0.34 |
|
|
0.34 |
|
|
0.28 |
|
|
0.28 |
|
|
0.28 |
|
|
0.28 |
|
|
0.27 |
|
|
0.27 |
|
Book value -
period-end |
|
39.69 |
|
|
39.04 |
|
|
38.52 |
|
|
37.91 |
|
|
37.48 |
|
|
37.57 |
|
|
37.11 |
|
|
36.56 |
|
Tangible book value -
period-end (non-GAAP) |
|
23.54 |
|
|
22.87 |
|
|
22.33 |
|
|
21.68 |
|
|
21.21 |
|
|
21.36 |
|
|
20.89 |
|
|
20.32 |
|
Market value -
period-end |
|
36.61 |
|
|
53.40 |
|
|
55.67 |
|
|
54.68 |
|
|
53.47 |
|
|
52.26 |
|
|
48.41 |
|
|
51.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key
Ratios (annualized where applicable) |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(FTE) (non-GAAP) |
|
3.49 |
% |
|
3.48 |
% |
|
3.59 |
% |
|
3.56 |
% |
|
3.47 |
% |
|
3.48 |
% |
|
3.48 |
% |
|
3.49 |
% |
Efficiency ratio -
adjusted (non-GAAP) |
|
50.4 |
% |
|
52.8 |
% |
|
51.2 |
% |
|
51.6 |
% |
|
47.4 |
% |
|
51.2 |
% |
|
52.2 |
% |
|
57.4 |
% |
Return on average
assets |
|
1.39 |
% |
|
1.37 |
% |
|
1.39 |
% |
|
1.47 |
% |
|
0.20 |
% |
|
0.86 |
% |
|
1.14 |
% |
|
1.09 |
% |
Return on average
assets, excluding significant items (non-GAAP) |
|
1.39 |
% |
|
1.37 |
% |
|
1.39 |
% |
|
1.47 |
% |
|
1.31 |
% |
|
1.15 |
% |
|
1.15 |
% |
|
1.15 |
% |
Return on average
shareholders' equity |
|
10.4 |
% |
|
10.2 |
% |
|
10.2 |
% |
|
10.7 |
% |
|
1.4 |
% |
|
6.1 |
% |
|
8.0 |
% |
|
7.4 |
% |
Return on average
tangible shareholders' equity (non-GAAP) |
|
17.8 |
% |
|
17.5 |
% |
|
17.8 |
% |
|
19.0 |
% |
|
2.5 |
% |
|
10.9 |
% |
|
14.3 |
% |
|
13.3 |
% |
Return on average
tangible shareholders' equity, excluding significant items
(non-GAAP) |
|
17.8 |
% |
|
17.5 |
% |
|
17.8 |
% |
|
19.0 |
% |
|
16.5 |
% |
|
14.6 |
% |
|
14.4 |
% |
|
14.1 |
% |
Average shareholders'
equity as a percent of average assets |
|
13.4 |
% |
|
13.5 |
% |
|
13.6 |
% |
|
13.7 |
% |
|
13.9 |
% |
|
14.0 |
% |
|
14.3 |
% |
|
14.8 |
% |
Capital ratios (period
end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity as a percent of tangible assets |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.4 |
% |
|
8.8 |
% |
Total
risk-based capital ratio (1) |
|
11.5 |
% |
|
11.7 |
% |
|
11.4 |
% |
|
11.2 |
% |
|
11.0 |
% |
|
11.2 |
% |
|
11.1 |
% |
|
11.4 |
% |
(1) |
Estimated at
December 31, 2018. |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Average Balances, Tax Equivalent Interest and Effective Yields
and Rates (Unaudited)(1)Chemical Financial Corporation(Dollars in
thousands)
|
Three Months Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
AverageBalance |
|
Interest (FTE) |
|
EffectiveYield/Rate(1) |
|
Average Balance |
|
Interest (FTE) |
|
Effective Yield/Rate(1) |
|
AverageBalance |
|
Interest (FTE) |
|
Effective Yield/Rate(1) |
Assets |
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1)(2) |
$ |
15,058,271 |
|
|
$ |
181,765 |
|
|
4.80 |
% |
|
$ |
14,740,445 |
|
|
$ |
173,453 |
|
|
4.68 |
% |
|
$ |
13,954,366 |
|
|
$ |
151,413 |
|
|
4.31 |
% |
Taxable
investment securities |
|
2,399,177 |
|
|
|
18,746 |
|
|
3.13 |
|
|
|
2,187,644 |
|
|
|
16,360 |
|
|
2.99 |
|
|
|
1,715,494 |
|
|
|
10,289 |
|
|
2.40 |
|
Tax-exempt investmentsecurities(1) |
|
1,075,377 |
|
|
|
8,286 |
|
|
3.08 |
|
|
|
1,038,301 |
|
|
|
7,797 |
|
|
3.00 |
|
|
|
981,299 |
|
|
|
7,830 |
|
|
3.19 |
|
Other
interest-earning assets |
|
193,333 |
|
|
|
2,419 |
|
|
4.97 |
|
|
|
193,350 |
|
|
|
1,368 |
|
|
2.81 |
|
|
|
180,098 |
|
|
|
2,018 |
|
|
4.45 |
|
Interest-bearing deposits with the FRB and other banks and federal
funds sold |
|
230,142 |
|
|
|
1,401 |
|
|
2.41 |
|
|
|
330,940 |
|
|
|
1,785 |
|
|
2.14 |
|
|
|
307,028 |
|
|
|
1,192 |
|
|
1.54 |
|
Total interest-earning
assets |
|
18,956,300 |
|
|
|
212,617 |
|
|
4.46 |
|
|
|
18,490,680 |
|
|
|
200,763 |
|
|
4.32 |
|
|
|
17,138,285 |
|
|
|
172,742 |
|
|
4.01 |
|
Less: allowance for
loan losses |
|
(105,767 |
) |
|
|
|
|
|
|
(101,689 |
) |
|
|
|
|
|
|
(86,521 |
) |
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash due from banks |
|
191,985 |
|
|
|
|
|
|
|
223,038 |
|
|
|
|
|
|
|
239,307 |
|
|
|
|
|
Premises
and equipment |
|
123,993 |
|
|
|
|
|
|
|
125,153 |
|
|
|
|
|
|
|
138,880 |
|
|
|
|
|
Interest
receivable and other assets |
|
1,789,195 |
|
|
|
|
|
|
|
1,764,041 |
|
|
|
|
|
|
|
1,777,479 |
|
|
|
|
|
Total assets |
$ |
20,955,706 |
|
|
|
|
|
$ |
20,501,223 |
|
|
|
|
|
$ |
19,207,430 |
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
$ |
3,072,237 |
|
|
$ |
4,791 |
|
|
0.62 |
% |
|
$ |
2,705,746 |
|
|
$ |
2,836 |
|
|
0.42 |
% |
|
$ |
2,709,033 |
|
|
$ |
1,242 |
|
|
0.18 |
% |
Savings
deposits |
|
4,436,212 |
|
|
|
10,209 |
|
|
0.91 |
|
|
|
4,378,620 |
|
|
|
8,417 |
|
|
0.76 |
|
|
|
4,023,075 |
|
|
|
4,296 |
|
|
0.42 |
|
Time
deposits |
|
4,029,519 |
|
|
|
19,106 |
|
|
1.88 |
|
|
|
3,846,857 |
|
|
|
15,997 |
|
|
1.65 |
|
|
|
3,136,655 |
|
|
|
8,765 |
|
|
1.11 |
|
Collateralized customer deposits |
|
383,457 |
|
|
|
721 |
|
|
0.75 |
|
|
|
374,833 |
|
|
|
721 |
|
|
0.76 |
|
|
|
408,962 |
|
|
|
461 |
|
|
0.45 |
|
Short-term borrowings |
|
1,693,750 |
|
|
|
9,426 |
|
|
2.21 |
|
|
|
1,885,741 |
|
|
|
9,510 |
|
|
2.00 |
|
|
|
1,957,609 |
|
|
|
6,952 |
|
|
1.41 |
|
Long-term
borrowings |
|
428,425 |
|
|
|
2,398 |
|
|
2.22 |
|
|
|
341,282 |
|
|
|
1,415 |
|
|
1.65 |
|
|
|
383,739 |
|
|
|
1,541 |
|
|
1.67 |
|
Total interest-bearing
liabilities |
|
14,043,600 |
|
|
|
46,651 |
|
|
1.32 |
|
|
|
13,533,079 |
|
|
|
38,896 |
|
|
1.14 |
|
|
|
12,619,073 |
|
|
|
23,257 |
|
|
0.73 |
|
Noninterest-bearing
deposits |
|
3,892,517 |
|
|
|
— |
|
|
— |
|
|
|
4,004,433 |
|
|
|
— |
|
|
— |
|
|
|
3,734,650 |
|
|
|
— |
|
|
— |
|
Total deposits and
borrowed funds |
|
17,936,117 |
|
|
|
46,651 |
|
|
1.03 |
|
|
|
17,537,512 |
|
|
|
38,896 |
|
|
0.88 |
|
|
|
16,353,723 |
|
|
|
23,257 |
|
|
0.56 |
|
Interest payable and
other liabilities |
|
221,091 |
|
|
|
|
|
|
|
194,610 |
|
|
|
|
|
|
|
177,678 |
|
|
|
|
|
Shareholders'
equity |
|
2,798,498 |
|
|
|
|
|
|
|
2,769,101 |
|
|
|
|
|
|
|
2,676,029 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
20,955,706 |
|
|
|
|
|
|
$ |
20,501,223 |
|
|
|
|
|
|
$ |
19,207,430 |
|
|
|
|
|
Net
Interest Spread (Average yield earned on interest-earning assets
minus average rate paid on interest-bearing liabilities) |
|
3.14 |
% |
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
3.28 |
% |
Net Interest Income
(FTE) |
|
|
$ |
165,966 |
|
|
|
|
|
$ |
161,867 |
|
|
|
|
|
$ |
149,485 |
|
|
Net
Interest Margin (Net Interest Income (FTE) divided by total average
interest-earning assets) |
|
3.49 |
% |
|
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.47 |
% |
Reconciliation to Reported Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income, fully taxable equivalent (non-GAAP) |
|
$ |
165,966 |
|
|
|
|
|
$ |
161,867 |
|
|
|
|
|
$ |
149,485 |
|
|
Adjustments for taxable equivalent interest(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
(782 |
) |
|
|
|
|
|
|
(767 |
) |
|
|
|
|
|
|
(855 |
) |
|
|
Tax-exempt investment securities |
|
|
(1,732 |
) |
|
|
|
|
|
|
(1,619 |
) |
|
|
|
|
|
|
(2,725 |
) |
|
|
Total
taxable equivalent interest adjustments |
|
|
(2,514 |
) |
|
|
|
|
|
|
(2,386 |
) |
|
|
|
|
|
|
(3,580 |
) |
|
|
Net interest income
(GAAP) |
|
|
$ |
163,452 |
|
|
|
|
|
$ |
159,481 |
|
|
|
|
|
$ |
145,905 |
|
|
Net interest margin
(GAAP) |
|
|
|
3.42 |
% |
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
3.39 |
% |
|
|
(1) |
Fully taxable equivalent
(FTE) basis using a federal income tax rate of 21% for the three
month periods ending in 2018 and 35% for the three months ended
December 31, 2017. The presentation of net interest income on
a FTE basis is not in accordance with GAAP, but is customary in the
banking industry. |
(2) |
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
Fourth Quarter and Full Year 2018 Operating Results
Average Balances, Tax Equivalent Interest and Effective Yields
and Rates (Unaudited)(1)Chemical Financial Corporation(Dollars in
thousands)
|
|
Year Ended |
|
|
December 31, 2018 |
|
December 31, 2017 |
|
|
AverageBalance |
|
Interest (FTE) |
|
EffectiveYield/Rate(1) |
|
AverageBalance |
|
Interest (FTE) |
|
Effective Yield/Rate(1) |
Assets |
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1)(2) |
|
$ |
14,605,963 |
|
|
$ |
678,911 |
|
|
4.65 |
% |
|
$ |
13,607,683 |
|
|
$ |
576,429 |
|
|
4.24 |
% |
Taxable
investment securities |
|
2,098,894 |
|
|
62,231 |
|
|
2.96 |
|
|
1,431,167 |
|
|
31,496 |
|
|
2.20 |
|
Tax-exempt investment securities(1) |
|
1,036,269 |
|
|
30,708 |
|
|
2.96 |
|
|
905,831 |
|
|
28,120 |
|
|
3.10 |
|
Other
interest-earning assets |
|
189,153 |
|
|
7,877 |
|
|
4.16 |
|
|
157,738 |
|
|
4,924 |
|
|
3.12 |
|
Interest-bearing deposits with the FRB and other banks and federal
funds sold |
|
263,210 |
|
|
5,727 |
|
|
2.18 |
|
|
298,006 |
|
|
4,244 |
|
|
1.42 |
|
Total interest-earning
assets |
|
18,193,489 |
|
|
785,454 |
|
|
4.32 |
|
|
16,400,425 |
|
|
645,213 |
|
|
3.93 |
|
Less: allowance for
loan losses |
|
(99,152 |
) |
|
|
|
|
|
(82,644 |
) |
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash due from banks |
|
215,284 |
|
|
|
|
|
|
235,621 |
|
|
|
|
|
Premises
and equipment |
|
125,606 |
|
|
|
|
|
|
144,114 |
|
|
|
|
|
Interest
receivable and other assets |
|
1,765,303 |
|
|
|
|
|
|
1,767,640 |
|
|
|
|
|
Total assets |
|
$ |
20,200,530 |
|
|
|
|
|
|
$ |
18,465,156 |
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
2,786,138 |
|
|
$ |
10,029 |
|
|
0.36 |
% |
|
$ |
2,753,294 |
|
|
$ |
4,870 |
|
|
0.18 |
% |
Savings
deposits |
|
4,246,063 |
|
|
29,636 |
|
|
0.70 |
|
|
3,940,499 |
|
|
13,049 |
|
|
0.33 |
|
Time
deposits |
|
3,654,470 |
|
|
57,315 |
|
|
1.57 |
|
|
3,014,302 |
|
|
28,808 |
|
|
0.96 |
|
Collateralized customer deposits |
|
391,703 |
|
|
2,607 |
|
|
0.67 |
|
|
366,828 |
|
|
1,269 |
|
|
0.35 |
|
Short-term borrowings |
|
1,970,009 |
|
|
37,510 |
|
|
1.90 |
|
|
1,612,123 |
|
|
19,052 |
|
|
1.18 |
|
Long-term
borrowings |
|
369,910 |
|
|
6,566 |
|
|
1.77 |
|
|
455,246 |
|
|
7,509 |
|
|
1.67 |
|
Total interest-bearing
liabilities |
|
13,418,293 |
|
|
143,663 |
|
|
1.07 |
|
|
12,142,292 |
|
|
74,557 |
|
|
0.61 |
|
Noninterest-bearing
deposits |
|
3,845,773 |
|
|
— |
|
|
— |
|
|
3,547,271 |
|
|
— |
|
|
— |
|
Total deposits and
borrowed funds |
|
17,264,066 |
|
|
143,663 |
|
|
0.83 |
|
|
15,689,563 |
|
|
74,557 |
|
|
0.48 |
|
Interest payable and
other liabilities |
|
196,065 |
|
|
|
|
|
|
147,731 |
|
|
|
|
|
Shareholders'
equity |
|
2,740,399 |
|
|
|
|
|
|
2,627,862 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
20,200,530 |
|
|
|
|
|
|
$ |
18,465,156 |
|
|
|
|
|
Net
Interest Spread (Average yield earned on interest-earning assets
minus average rate paid on interest-bearing liabilities) |
|
|
|
3.25 |
% |
|
|
|
|
|
3.32 |
% |
Net Interest Income
(FTE) |
|
|
|
$ |
641,791 |
|
|
|
|
|
|
$ |
570,656 |
|
|
|
Net
Interest Margin (Net Interest Income (FTE) divided by total average
interest-earning assets) |
|
|
|
3.53 |
% |
|
|
|
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Reported Net Interest Income |
|
|
|
|
|
|
|
|
|
|
Net
interest income, fully taxable equivalent (non-GAAP) |
|
$ |
641,791 |
|
|
|
|
|
|
$ |
570,656 |
|
|
|
Adjustments for taxable
equivalent interest(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
(3,036 |
) |
|
|
|
|
|
(3,301 |
) |
|
|
Tax-exempt investment securities |
|
|
|
(6,422 |
) |
|
|
|
|
|
(9,777 |
) |
|
|
Total taxable
equivalent interest adjustments |
|
|
|
(9,458 |
) |
|
|
|
|
|
(13,078 |
) |
|
|
Net interest income
(GAAP) |
|
|
|
$ |
632,333 |
|
|
|
|
|
|
$ |
557,578 |
|
|
|
Net interest margin
(GAAP) |
|
|
|
3.48 |
% |
|
|
|
|
|
3.40 |
% |
|
|
(1) |
Fully taxable equivalent
(FTE) basis using a federal income tax rate of 21% for the year
ended December 31, 2018 and 35% for the year ended
December 31, 2017. The presentation of net interest income on
a FTE basis is not in accordance with GAAP, but is customary in the
banking industry. |
(2) |
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
Fourth Quarter and Full Year 2018 Operating
Results
Noninterest Income and Operating Expenses Information
(Unaudited)Chemical Financial Corporation(Dollars in thousands)
|
4th Quarter
2018 |
|
3rd Quarter
2018 |
|
2nd Quarter
2018 |
|
1st Quarter
2018 |
|
4th Quarter
2017 |
|
3rd Quarter
2017 |
|
2nd Quarter
2017 |
|
1st Quarter
2017 |
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and
fees on deposit accounts |
$ |
8,654 |
|
|
$ |
9,319 |
|
|
$ |
9,690 |
|
|
$ |
9,434 |
|
|
$ |
9,994 |
|
|
$ |
9,874 |
|
|
$ |
9,667 |
|
|
$ |
8,832 |
|
Wealth management
revenue |
6,457 |
|
|
6,040 |
|
|
7,188 |
|
|
6,311 |
|
|
6,539 |
|
|
6,188 |
|
|
6,958 |
|
|
5,827 |
|
Other fees for
customerservices(1) |
1,379 |
|
|
1,067 |
|
|
1,050 |
|
|
1,164 |
|
|
1,535 |
|
|
1,841 |
|
|
1,793 |
|
|
1,590 |
|
Electronic banking
fees(1) |
5,127 |
|
|
4,282 |
|
|
3,749 |
|
|
3,619 |
|
|
5,066 |
|
|
4,056 |
|
|
7,051 |
|
|
6,473 |
|
Net gain on sale of
loans and other mortgage banking revenue(2) |
6,804 |
|
|
8,905 |
|
|
8,874 |
|
|
8,783 |
|
|
7,938 |
|
|
9,282 |
|
|
11,681 |
|
|
9,679 |
|
Change in fair value in
loan servicing rights(2) |
(2,827 |
) |
|
932 |
|
|
(30 |
) |
|
3,752 |
|
|
(13 |
) |
|
(4,041 |
) |
|
(1,802 |
) |
|
(519 |
) |
Gain (loss) on sale of
investment securities |
221 |
|
|
— |
|
|
3 |
|
|
— |
|
|
(7,556 |
) |
|
1 |
|
|
77 |
|
|
90 |
|
Bank-owned life
insurance(3) |
273 |
|
|
1,167 |
|
|
1,669 |
|
|
891 |
|
|
1,377 |
|
|
1,124 |
|
|
1,106 |
|
|
1,211 |
|
Other(3) |
5,959 |
|
|
6,205 |
|
|
5,825 |
|
|
6,600 |
|
|
7,439 |
|
|
3,797 |
|
|
5,037 |
|
|
4,827 |
|
Total
noninterest income |
$ |
32,047 |
|
|
$ |
37,917 |
|
|
$ |
38,018 |
|
|
$ |
40,554 |
|
|
$ |
32,319 |
|
|
$ |
32,122 |
|
|
$ |
41,568 |
|
|
$ |
38,010 |
|
(1) |
Included within the line
item "Other charges and fees for customers services" in the
Consolidated Statements of Income. |
(2) |
Included
within the line item "Net gain on sale of loans and other mortgage
banking revenue" in the Consolidated Statements of Income. |
(3) |
Included
within the line item "Other" noninterest income in the Consolidated
Statements of Income. |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
4th Quarter 2017 |
|
3rd Quarter 2017 |
|
2nd Quarter 2017 |
|
1st Quarter 2017 |
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages(1) |
$ |
48,486 |
|
|
$ |
49,182 |
|
|
$ |
47,810 |
|
|
$ |
45,644 |
|
|
$ |
41,866 |
|
|
$ |
44,641 |
|
|
$ |
44,959 |
|
|
$ |
48,526 |
|
Employee
benefits(1) |
8,342 |
|
|
7,712 |
|
|
8,338 |
|
|
9,913 |
|
|
5,497 |
|
|
7,949 |
|
|
7,288 |
|
|
11,368 |
|
Occupancy |
7,360 |
|
|
8,620 |
|
|
7,679 |
|
|
8,011 |
|
|
7,546 |
|
|
6,871 |
|
|
8,745 |
|
|
7,392 |
|
Equipment and
software |
7,641 |
|
|
8,185 |
|
|
8,276 |
|
|
7,659 |
|
|
8,000 |
|
|
7,582 |
|
|
8,149 |
|
|
8,517 |
|
Outside processing and
service fees |
11,698 |
|
|
12,660 |
|
|
10,673 |
|
|
10,356 |
|
|
9,081 |
|
|
9,626 |
|
|
8,924 |
|
|
7,511 |
|
FDIC insurance
premiums(2) |
3,583 |
|
|
4,823 |
|
|
4,473 |
|
|
5,629 |
|
|
4,556 |
|
|
2,768 |
|
|
2,460 |
|
|
1,406 |
|
Professional
fees(2) |
3,758 |
|
|
3,399 |
|
|
3,004 |
|
|
2,458 |
|
|
3,483 |
|
|
3,489 |
|
|
2,567 |
|
|
1,968 |
|
Intangible asset
amortization(2) |
1,426 |
|
|
1,426 |
|
|
1,425 |
|
|
1,439 |
|
|
1,525 |
|
|
1,526 |
|
|
1,525 |
|
|
1,513 |
|
Credit-related
expenses(2) |
829 |
|
|
1,239 |
|
|
1,467 |
|
|
1,306 |
|
|
803 |
|
|
1,874 |
|
|
1,895 |
|
|
1,200 |
|
Merger expenses |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,511 |
|
|
2,379 |
|
|
465 |
|
|
4,167 |
|
Restructuring
expenses |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,056 |
|
|
18,824 |
|
|
— |
|
|
— |
|
Impairment of income
tax credit(2) |
5,772 |
|
|
3,162 |
|
|
1,716 |
|
|
1,634 |
|
|
6,157 |
|
|
3,095 |
|
|
— |
|
|
— |
|
Other(2) |
9,471 |
|
|
9,253 |
|
|
9,700 |
|
|
7,561 |
|
|
8,941 |
|
|
8,915 |
|
|
11,260 |
|
|
10,628 |
|
Total operating
expenses |
$ |
108,366 |
|
|
$ |
109,661 |
|
|
$ |
104,561 |
|
|
$ |
101,610 |
|
|
$ |
100,022 |
|
|
$ |
119,539 |
|
|
$ |
98,237 |
|
|
$ |
104,196 |
|
(1) |
Included within the line
item "Salaries, wages and employee benefits" in the Consolidated
Statements of Income. |
(2) |
Included
within the line item "Other" operating expenses in the Consolidated
Statements of Income. |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Composition of Loans and Deposits and Additional Information on
Intangible Assets (Unaudited)Chemical Financial Corporation(Dollars
in Thousands)
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Loan Growth - Three Months Ended Dec 31,
2018(1) |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Loan Growth - Year Ended Dec 31,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loan
portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,002,568 |
|
|
$ |
3,719,922 |
|
|
30.4 |
% |
|
$ |
3,576,438 |
|
|
$ |
3,427,285 |
|
|
$ |
3,385,642 |
|
|
18.2 |
% |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
2,059,557 |
|
|
1,897,934 |
|
|
34.1 |
|
|
1,863,563 |
|
|
1,832,824 |
|
|
1,813,562 |
|
|
13.6 |
|
Non-owner
occupied |
2,785,020 |
|
|
2,739,700 |
|
|
6.6 |
|
|
2,728,103 |
|
|
2,680,801 |
|
|
2,606,761 |
|
|
6.8 |
|
Vacant
land |
67,510 |
|
|
73,987 |
|
|
(35.0 |
) |
|
79,606 |
|
|
74,751 |
|
|
80,347 |
|
|
(16.0 |
) |
Total
commercial real estate |
4,912,087 |
|
|
4,711,621 |
|
|
17.0 |
|
|
4,671,272 |
|
|
4,588,376 |
|
|
4,500,670 |
|
|
9.1 |
|
Real
estate construction |
597,212 |
|
|
622,147 |
|
|
(16.0 |
) |
|
618,985 |
|
|
559,780 |
|
|
574,215 |
|
|
4.0 |
|
Subtotal
- commercial loans |
9,511,867 |
|
|
9,053,690 |
|
|
20.2 |
|
|
8,866,695 |
|
|
8,575,441 |
|
|
8,460,527 |
|
|
12.4 |
|
Consumer loan
portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
3,458,666 |
|
|
3,391,987 |
|
|
7.9 |
|
|
3,325,277 |
|
|
3,264,620 |
|
|
3,252,487 |
|
|
6.3 |
|
Consumer
installment |
1,521,074 |
|
|
1,560,265 |
|
|
(10.0 |
) |
|
1,587,327 |
|
|
1,572,240 |
|
|
1,613,008 |
|
|
(5.7 |
) |
Home
equity |
778,172 |
|
|
790,310 |
|
|
(6.1 |
) |
|
800,394 |
|
|
806,446 |
|
|
829,245 |
|
|
(6.2 |
) |
Subtotal
- consumer loans |
5,757,912 |
|
|
5,742,562 |
|
|
1.1 |
|
|
5,712,998 |
|
|
5,643,306 |
|
|
5,694,740 |
|
|
1.1 |
|
Total loans |
$ |
15,269,779 |
|
|
$ |
14,796,252 |
|
|
12.8 |
% |
|
$ |
14,579,693 |
|
|
$ |
14,218,747 |
|
|
$ |
14,155,267 |
|
|
7.9 |
% |
(1) Annualized.
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Deposit Growth - Three Months Ended Dec 31,
2018(1) |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Deposit Growth - Twelve Months Ended Dec 31,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand |
$ |
3,809,252 |
|
|
$ |
4,015,323 |
|
|
(20.5 |
)% |
|
$ |
3,894,259 |
|
|
$ |
3,801,125 |
|
|
$ |
3,725,779 |
|
|
2.2 |
% |
Savings and money
market accounts |
4,092,082 |
|
|
4,220,658 |
|
|
(12.2 |
) |
|
3,841,540 |
|
|
3,774,975 |
|
|
3,655,671 |
|
|
11.9 |
|
Interest-bearing
demand |
3,316,278 |
|
|
3,037,289 |
|
|
36.7 |
|
|
2,514,232 |
|
|
2,701,055 |
|
|
2,724,415 |
|
|
21.7 |
|
Brokered deposits |
985,522 |
|
|
915,348 |
|
|
30.7 |
|
|
1,087,959 |
|
|
651,846 |
|
|
453,227 |
|
|
117.4 |
|
Other time
deposits |
3,390,148 |
|
|
3,256,234 |
|
|
16.5 |
|
|
3,213,546 |
|
|
3,038,816 |
|
|
3,083,711 |
|
|
9.9 |
|
Total
deposits |
$ |
15,593,282 |
|
|
$ |
15,444,852 |
|
|
3.8 |
% |
|
$ |
14,551,536 |
|
|
$ |
13,967,817 |
|
|
$ |
13,642,803 |
|
|
14.3 |
% |
(1) Annualized.
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
|
|
|
|
|
|
|
|
|
Additional Data
- Intangibles |
|
|
|
|
|
|
|
|
|
Goodwill |
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
Loan servicing
rights |
71,013 |
|
|
72,707 |
|
|
70,364 |
|
|
68,837 |
|
|
63,841 |
|
Core deposit
intangibles (CDI) |
28,556 |
|
|
29,981 |
|
|
31,407 |
|
|
32,833 |
|
|
34,259 |
|
Noncompete
agreements |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13 |
|
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Nonperforming Assets (Unaudited)Chemical Financial
Corporation(Dollars in thousands)
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
Loans(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
30,139 |
|
|
$ |
25,328 |
|
|
$ |
20,741 |
|
|
$ |
20,000 |
|
|
$ |
19,691 |
|
|
$ |
15,648 |
|
|
$ |
18,773 |
|
|
$ |
16,717 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
16,056 |
|
|
14,936 |
|
|
16,103 |
|
|
19,855 |
|
|
19,070 |
|
|
16,295 |
|
|
11,683 |
|
|
12,575 |
|
Non-owner
occupied |
23,021 |
|
|
8,991 |
|
|
9,168 |
|
|
5,489 |
|
|
5,270 |
|
|
4,361 |
|
|
3,600 |
|
|
3,793 |
|
Vacant
land |
3,337 |
|
|
4,711 |
|
|
3,135 |
|
|
4,829 |
|
|
5,205 |
|
|
4,494 |
|
|
4,440 |
|
|
4,460 |
|
Total
commercial real estate |
42,414 |
|
|
28,638 |
|
|
28,406 |
|
|
30,173 |
|
|
29,545 |
|
|
25,150 |
|
|
19,723 |
|
|
20,828 |
|
Real
estate construction |
12 |
|
|
28,477 |
|
|
5,704 |
|
|
77 |
|
|
77 |
|
|
78 |
|
|
56 |
|
|
79 |
|
Residential mortgage |
7,988 |
|
|
9,611 |
|
|
7,974 |
|
|
7,621 |
|
|
8,635 |
|
|
8,646 |
|
|
7,714 |
|
|
6,749 |
|
Consumer
installment |
1,276 |
|
|
1,350 |
|
|
945 |
|
|
922 |
|
|
842 |
|
|
875 |
|
|
757 |
|
|
755 |
|
Home
equity |
3,604 |
|
|
3,269 |
|
|
2,972 |
|
|
3,039 |
|
|
4,305 |
|
|
3,908 |
|
|
3,871 |
|
|
2,713 |
|
Total
nonaccrual loans(1) |
85,433 |
|
|
96,673 |
|
|
66,742 |
|
|
61,832 |
|
|
63,095 |
|
|
54,305 |
|
|
50,894 |
|
|
47,841 |
|
Other
real estate and repossessed assets |
6,256 |
|
|
6,584 |
|
|
5,828 |
|
|
7,719 |
|
|
8,807 |
|
|
10,605 |
|
|
14,582 |
|
|
16,395 |
|
Total nonperforming
assets |
$ |
91,689 |
|
|
$ |
103,257 |
|
|
$ |
72,570 |
|
|
$ |
69,551 |
|
|
$ |
71,902 |
|
|
$ |
64,910 |
|
|
$ |
65,476 |
|
|
$ |
64,236 |
|
Accruing loans contractually past due 90 days or more
as to interest or principal payments, excluding acquired loans
accounted for under ASC 310-30: |
Commercial |
$ |
— |
|
|
$ |
632 |
|
|
$ |
472 |
|
|
$ |
322 |
|
|
$ |
— |
|
|
$ |
3,521 |
|
|
$ |
58 |
|
|
$ |
1,823 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
52 |
|
|
47 |
|
|
461 |
|
|
— |
|
|
— |
|
|
144 |
|
|
— |
|
|
700 |
|
Non-owner
occupied |
887 |
|
|
— |
|
|
— |
|
|
— |
|
|
13 |
|
|
— |
|
|
— |
|
|
— |
|
Vacant
land |
— |
|
|
— |
|
|
16 |
|
|
— |
|
|
— |
|
|
— |
|
|
262 |
|
|
— |
|
Total
commercial real estate |
939 |
|
|
47 |
|
|
477 |
|
|
— |
|
|
13 |
|
|
144 |
|
|
262 |
|
|
700 |
|
Real
estate construction |
— |
|
|
38 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home
equity |
488 |
|
|
475 |
|
|
713 |
|
|
913 |
|
|
1,364 |
|
|
2,367 |
|
|
2,026 |
|
|
1,169 |
|
Total
accruing loans contractually past due 90 days or more as to
interest or principal payments |
$ |
1,427 |
|
|
$ |
1,192 |
|
|
$ |
1,662 |
|
|
$ |
1,235 |
|
|
$ |
1,377 |
|
|
$ |
6,032 |
|
|
$ |
2,346 |
|
|
$ |
3,692 |
|
(1) |
Acquired loans,
accounted for under Accounting Standards Codification 310-30, that
are not performing in accordance with contractual terms are not
reported as nonperforming loans because these loans are recorded in
pools at their net realizable value based on the principal and
interest the Corporation expects to collect on these loans. |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Summary of Loan Loss Experience (Unaudited)Chemical Financial
Corporation(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
4th Quarter 2017 |
|
3rd Quarter 2017 |
|
2nd Quarter 2017 |
|
1st Quarter 2017 |
|
Dec 31, 2018 |
|
Dec 31, 2017 |
Allowance
for loan losses - originated portfolio |
|
|
|
|
Allowance for
loan losses - beginning of period |
$ |
103,071 |
|
|
$ |
100,015 |
|
|
$ |
94,762 |
|
|
$ |
91,887 |
|
|
$ |
85,181 |
|
|
$ |
83,797 |
|
|
$ |
78,774 |
|
|
$ |
78,268 |
|
|
$ |
91,887 |
|
|
$ |
78,268 |
|
Provision
for loan losses |
9,444 |
|
|
5,058 |
|
|
9,572 |
|
|
6,256 |
|
|
8,101 |
|
|
4,920 |
|
|
6,229 |
|
|
4,050 |
|
|
30,330 |
|
|
23,300 |
|
Net loan
charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
(627 |
) |
|
(564 |
) |
|
(517 |
) |
|
(1,252 |
) |
|
(613 |
) |
|
(2,348 |
) |
|
(239 |
) |
|
(1,999 |
) |
|
(2,960 |
) |
|
(5,199 |
) |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
(153 |
) |
|
255 |
|
|
(1,656 |
) |
|
341 |
|
|
(232 |
) |
|
(170 |
) |
|
(173 |
) |
|
725 |
|
|
(1,213 |
) |
|
150 |
|
Non-owner
occupied |
(544 |
) |
|
392 |
|
|
92 |
|
|
(456 |
) |
|
748 |
|
|
(7 |
) |
|
(35 |
) |
|
21 |
|
|
(516 |
) |
|
727 |
|
Vacant
land |
— |
|
|
2 |
|
|
(921 |
) |
|
(448 |
) |
|
267 |
|
|
3 |
|
|
3 |
|
|
(16 |
) |
|
(1,367 |
) |
|
257 |
|
Total
commercial real estate |
(697 |
) |
|
649 |
|
|
(2,485 |
) |
|
(563 |
) |
|
783 |
|
|
(174 |
) |
|
(205 |
) |
|
730 |
|
|
(3,096 |
) |
|
1,134 |
|
Real
estate construction |
— |
|
|
— |
|
|
— |
|
|
26 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
(9 |
) |
|
26 |
|
|
(10 |
) |
Residential mortgage |
(243 |
) |
|
(773 |
) |
|
(88 |
) |
|
(53 |
) |
|
(142 |
) |
|
(44 |
) |
|
19 |
|
|
(567 |
) |
|
(1,157 |
) |
|
(734 |
) |
Consumer
installment |
(1,293 |
) |
|
(1,410 |
) |
|
(994 |
) |
|
(997 |
) |
|
(1,318 |
) |
|
(857 |
) |
|
(747 |
) |
|
(1,310 |
) |
|
(4,694 |
) |
|
(4,232 |
) |
Home
equity |
(91 |
) |
|
96 |
|
|
(235 |
) |
|
(542 |
) |
|
(104 |
) |
|
(113 |
) |
|
(34 |
) |
|
(389 |
) |
|
(772 |
) |
|
(640 |
) |
Net loan
charge-offs |
(2,951 |
) |
|
(2,002 |
) |
|
(4,319 |
) |
|
(3,381 |
) |
|
(1,395 |
) |
|
(3,536 |
) |
|
(1,206 |
) |
|
(3,544 |
) |
|
(12,653 |
) |
|
(9,681 |
) |
Allowance for loan
losses - end of period |
109,564 |
|
|
103,071 |
|
|
100,015 |
|
|
94,762 |
|
|
91,887 |
|
|
85,181 |
|
|
83,797 |
|
|
78,774 |
|
|
109,564 |
|
|
91,887 |
|
Allowance
for loan losses - acquired loan portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses - beginning of period |
970 |
|
|
— |
|
|
— |
|
|
— |
|
|
579 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Provision
for loan losses |
(550 |
) |
|
970 |
|
|
— |
|
|
— |
|
|
(579 |
) |
|
579 |
|
|
— |
|
|
— |
|
|
420 |
|
|
— |
|
Allowance
for loan losses - end of period |
420 |
|
|
970 |
|
|
— |
|
|
— |
|
|
— |
|
|
579 |
|
|
— |
|
|
— |
|
|
420 |
|
|
— |
|
Total allowance for
loan losses |
$ |
109,984 |
|
|
$ |
104,041 |
|
|
$ |
100,015 |
|
|
$ |
94,762 |
|
|
$ |
91,887 |
|
|
$ |
85,760 |
|
|
$ |
83,797 |
|
|
$ |
78,774 |
|
|
$ |
109,984 |
|
|
$ |
91,887 |
|
Net loan charge-offs as
a percent of average loans (quarterly amounts annualized) |
0.08 |
% |
|
0.05 |
% |
|
0.12 |
% |
|
0.10 |
% |
|
0.04 |
% |
|
0.10 |
% |
|
0.04 |
% |
|
0.11 |
% |
|
0.09 |
% |
|
0.07 |
% |
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
|
|
|
|
|
|
|
|
|
Originated loans |
$ |
11,844,756 |
|
|
$ |
11,145,442 |
|
|
$ |
10,696,533 |
|
|
$ |
10,012,516 |
|
|
$ |
9,747,429 |
|
Acquired loans |
3,425,023 |
|
|
3,650,810 |
|
|
3,883,160 |
|
|
4,206,231 |
|
|
4,407,838 |
|
Total loans |
$ |
15,269,779 |
|
|
$ |
14,796,252 |
|
|
$ |
14,579,693 |
|
|
$ |
14,218,747 |
|
|
$ |
14,155,267 |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses, originated portfolio, as a percent of: |
|
|
|
|
Total
originated loans |
0.93 |
% |
|
0.93 |
% |
|
0.94 |
% |
|
0.95 |
% |
|
0.94 |
% |
Nonperforming loans |
128.2 |
% |
|
106.6 |
% |
|
149.9 |
% |
|
153.3 |
% |
|
145.6 |
% |
Credit mark as a
percent of unpaid principal balance on acquired loans |
1.7 |
% |
|
1.7 |
% |
|
1.8 |
% |
|
1.8 |
% |
|
2.4 |
% |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Reconciliation of Non-GAAP Financial Measures
(Unaudited)Chemical Financial Corporation(Dollars in thousands)
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
4th Quarter 2017 |
|
3rd Quarter 2017 |
|
2nd Quarter 2017 |
|
1st Quarter 2017 |
|
Year Ended |
|
|
|
|
|
|
|
|
|
Dec 31, 2018 |
|
Dec 31, 2017 |
Non-GAAP Operating Results |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported |
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
|
$ |
9,446 |
|
|
$ |
40,459 |
|
|
$ |
52,014 |
|
|
$ |
47,604 |
|
|
$ |
284,020 |
|
|
$ |
149,523 |
|
Merger and
restructuring expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,567 |
|
|
|
21,203 |
|
|
|
465 |
|
|
|
4,167 |
|
|
|
— |
|
|
|
28,402 |
|
Losses on sales of
investment securities(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,556 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,556 |
|
Significant items |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,123 |
|
|
|
21,203 |
|
|
|
465 |
|
|
|
4,167 |
|
|
|
— |
|
|
|
35,958 |
|
Income tax benefit
(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,543 |
) |
|
|
(7,421 |
) |
|
|
(163 |
) |
|
|
(1,458 |
) |
|
|
— |
|
|
|
(12,585 |
) |
Revaluation of net
deferred tax assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,660 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,660 |
|
Significant items, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
53,240 |
|
|
|
13,782 |
|
|
|
302 |
|
|
|
2,709 |
|
|
|
— |
|
|
|
70,033 |
|
Net income, excluding
significant items |
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
|
$ |
62,686 |
|
|
$ |
54,241 |
|
|
$ |
52,316 |
|
|
$ |
50,313 |
|
|
$ |
284,020 |
|
|
$ |
219,556 |
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share, as reported |
$ |
1.01 |
|
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.99 |
|
|
$ |
0.13 |
|
|
$ |
0.56 |
|
|
$ |
0.73 |
|
|
$ |
0.67 |
|
|
$ |
3.94 |
|
|
$ |
2.08 |
|
Effect of significant
items, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.74 |
|
|
|
0.20 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.98 |
|
Diluted earnings per
share, excluding significant items |
$ |
1.01 |
|
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.99 |
|
|
$ |
0.87 |
|
|
$ |
0.76 |
|
|
$ |
0.73 |
|
|
$ |
0.70 |
|
|
$ |
3.94 |
|
|
$ |
3.06 |
|
Return on
Average Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets, as reported |
|
1.39 |
% |
|
|
1.37 |
% |
|
|
1.39 |
% |
|
|
1.47 |
% |
|
|
0.20 |
% |
|
|
0.86 |
% |
|
|
1.14 |
% |
|
|
1.09 |
% |
|
|
1.41 |
% |
|
|
0.81 |
% |
Effect of significant
items, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.11 |
|
|
|
0.29 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.38 |
|
Return on average
assets, excluding significant items |
|
1.39 |
% |
|
|
1.37 |
% |
|
|
1.39 |
% |
|
|
1.47 |
% |
|
|
1.31 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.41 |
% |
|
|
1.19 |
% |
Return on Average Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
shareholders' equity |
|
10.4 |
% |
|
|
10.2 |
% |
|
|
10.2 |
% |
|
|
10.7 |
% |
|
|
1.4 |
% |
|
|
6.1 |
% |
|
|
8.0 |
% |
|
|
7.4 |
% |
|
|
10.4 |
% |
|
|
5.7 |
% |
Effect of significant
items, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
2.7 |
|
Return on average
shareholders' equity, excluding significant items |
|
10.4 |
% |
|
|
10.2 |
% |
|
|
10.2 |
% |
|
|
10.7 |
% |
|
|
9.4 |
% |
|
|
8.2 |
% |
|
|
8.0 |
% |
|
|
7.8 |
% |
|
|
10.4 |
% |
|
|
8.4 |
% |
Return on Average Tangible Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity, as reported |
$ |
2,798,498 |
|
|
$ |
2,769,101 |
|
|
$ |
2,707,346 |
|
|
$ |
2,668,325 |
|
|
$ |
2,676,029 |
|
|
$ |
2,643,233 |
|
|
$ |
2,606,517 |
|
|
$ |
2,584,501 |
|
|
$ |
2,740,399 |
|
|
$ |
2,627,862 |
|
Average goodwill, CDI
and noncompete agreements, net of tax |
|
1,154,469 |
|
|
|
1,155,679 |
|
|
|
1,156,877 |
|
|
|
1,158,084 |
|
|
|
1,156,122 |
|
|
|
1,153,394 |
|
|
|
1,154,229 |
|
|
|
1,155,177 |
|
|
|
1,156,371 |
|
|
|
1,155,734 |
|
Average tangible
shareholders' equity |
|
1,644,029 |
|
|
|
1,613,422 |
|
|
|
1,550,469 |
|
|
|
1,510,241 |
|
|
|
1,519,907 |
|
|
|
1,489,839 |
|
|
|
1,452,288 |
|
|
|
1,429,324 |
|
|
|
1,584,028 |
|
|
|
1,472,128 |
|
Return on average
tangible shareholders' equity |
|
17.8 |
% |
|
|
17.5 |
% |
|
|
17.8 |
% |
|
|
19.0 |
% |
|
|
2.5 |
% |
|
|
10.9 |
% |
|
|
14.3 |
% |
|
|
13.3 |
% |
|
|
17.9 |
% |
|
|
10.2 |
% |
Effect of significant
items, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.0 |
|
|
|
3.7 |
|
|
|
0.1 |
|
|
|
0.8 |
|
|
|
— |
|
|
|
4.7 |
|
Return on average
tangible shareholders' equity, excluding significant items |
|
17.8 |
% |
|
|
17.5 |
% |
|
|
17.8 |
% |
|
|
19.0 |
% |
|
|
16.5 |
% |
|
|
14.6 |
% |
|
|
14.4 |
% |
|
|
14.1 |
% |
|
|
17.9 |
% |
|
|
14.9 |
% |
(1) |
Represents losses on
sales of investment securities in the fourth quarter of 2017 as
part of our treasury and tax management objectives. |
(2) |
Assumes
merger and restructuring expenses and other significant items are
deductible at an income tax rate of 35% for each period during
2017. |
Chemical Financial Corporation Announces
Fourth Quarter and Full Year 2018 Operating Results
Reconciliation of Non-GAAP Financial Measures
(Unaudited)Chemical Financial Corporation(Dollars in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
4th Quarter 2017 |
|
3rd Quarter 2017 |
|
2nd Quarter 2017 |
|
1st Quarter 2017 |
|
Dec 31, 2018 |
|
Dec 31, 2017 |
Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
163,452 |
|
|
$ |
159,481 |
|
|
$ |
157,537 |
|
|
$ |
151,863 |
|
|
$ |
145,905 |
|
|
$ |
143,628 |
|
|
$ |
137,948 |
|
|
$ |
130,097 |
|
|
$ |
632,333 |
|
|
$ |
557,578 |
|
Noninterest income |
32,047 |
|
|
37,917 |
|
|
38,018 |
|
|
40,554 |
|
|
32,319 |
|
|
32,122 |
|
|
41,568 |
|
|
38,010 |
|
|
148,536 |
|
|
144,019 |
|
Total revenue -
GAAP |
195,499 |
|
|
197,398 |
|
|
195,555 |
|
|
192,417 |
|
|
178,224 |
|
|
175,750 |
|
|
179,516 |
|
|
168,107 |
|
|
780,869 |
|
|
701,597 |
|
Net interest income FTE
adjustment |
2,514 |
|
|
2,386 |
|
|
2,331 |
|
|
2,227 |
|
|
3,580 |
|
|
3,260 |
|
|
3,169 |
|
|
3,068 |
|
|
9,458 |
|
|
13,077 |
|
Loan servicing rights
change in fair value (gains)losses |
2,827 |
|
|
(932 |
) |
|
30 |
|
|
(3,752 |
) |
|
13 |
|
|
4,041 |
|
|
1,802 |
|
|
519 |
|
|
(1,827 |
) |
|
6,375 |
|
Losses (gains) from
sale of investment securities |
(221 |
) |
|
— |
|
|
(3 |
) |
|
— |
|
|
7,556 |
|
|
(1 |
) |
|
(77 |
) |
|
(90 |
) |
|
(224 |
) |
|
7,388 |
|
Total revenue -
Non-GAAP |
$ |
200,619 |
|
|
$ |
198,852 |
|
|
$ |
197,913 |
|
|
$ |
190,892 |
|
|
$ |
189,373 |
|
|
$ |
183,050 |
|
|
$ |
184,410 |
|
|
$ |
171,604 |
|
|
$ |
788,276 |
|
|
$ |
728,437 |
|
Operating expenses -
GAAP |
$ |
108,366 |
|
|
$ |
109,661 |
|
|
$ |
104,561 |
|
|
$ |
101,610 |
|
|
$ |
100,022 |
|
|
$ |
119,539 |
|
|
$ |
98,237 |
|
|
$ |
104,196 |
|
|
$ |
424,198 |
|
|
$ |
421,994 |
|
Merger and
restructuring expenses |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,567 |
) |
|
(21,203 |
) |
|
(465 |
) |
|
(4,167 |
) |
|
— |
|
|
(28,402 |
) |
Impairment of income
tax credits |
(5,772 |
) |
|
(3,162 |
) |
|
(1,716 |
) |
|
(1,634 |
) |
|
(6,157 |
) |
|
(3,095 |
) |
|
— |
|
|
— |
|
|
(12,284 |
) |
|
(9,252 |
) |
Operating expense, core
- Non-GAAP |
102,594 |
|
|
106,499 |
|
|
102,845 |
|
|
99,976 |
|
|
91,298 |
|
|
95,241 |
|
|
97,772 |
|
|
100,029 |
|
|
411,914 |
|
|
384,340 |
|
Amortization of
intangibles |
(1,426 |
) |
|
(1,426 |
) |
|
(1,425 |
) |
|
(1,439 |
) |
|
(1,525 |
) |
|
(1,526 |
) |
|
(1,525 |
) |
|
(1,513 |
) |
|
(5,716 |
) |
|
(6,089 |
) |
Operating expenses,
efficiency ratio - Non-GAAP |
$ |
101,168 |
|
|
$ |
105,073 |
|
|
$ |
101,420 |
|
|
$ |
98,537 |
|
|
$ |
89,773 |
|
|
$ |
93,715 |
|
|
$ |
96,247 |
|
|
$ |
98,516 |
|
|
$ |
406,198 |
|
|
$ |
378,251 |
|
Efficiency ratio -
GAAP |
55.4 |
% |
|
55.6 |
% |
|
53.5 |
% |
|
52.8 |
% |
|
56.1 |
% |
|
68.0 |
% |
|
54.7 |
% |
|
62.0 |
% |
|
54.3 |
% |
|
60.1 |
% |
Efficiency ratio -
adjusted Non-GAAP |
50.4 |
% |
|
52.8 |
% |
|
51.2 |
% |
|
51.6 |
% |
|
47.4 |
% |
|
51.2 |
% |
|
52.2 |
% |
|
57.4 |
% |
|
51.5 |
% |
|
51.9 |
% |
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
Dec 31, 2017 |
|
Sep 30, 2017 |
|
Jun 30, 2017 |
|
Mar 31, 2017 |
Tangible Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
$ |
2,836,260 |
|
|
$ |
2,788,924 |
|
|
$ |
2,750,999 |
|
|
$ |
2,704,703 |
|
|
$ |
2,668,749 |
|
|
$ |
2,673,089 |
|
|
$ |
2,639,442 |
|
|
$ |
2,600,051 |
|
Goodwill,
CDI and noncompete agreements, net of tax |
(1,153,877 |
) |
|
(1,155,083 |
) |
|
(1,156,307 |
) |
|
(1,157,505 |
) |
|
(1,158,738 |
) |
|
(1,153,576 |
) |
|
(1,153,595 |
) |
|
(1,154,915 |
) |
Tangible
shareholders' equity |
$ |
1,682,383 |
|
|
$ |
1,633,841 |
|
|
$ |
1,594,692 |
|
|
$ |
1,547,198 |
|
|
$ |
1,510,011 |
|
|
$ |
1,519,513 |
|
|
$ |
1,485,847 |
|
|
$ |
1,445,136 |
|
Common
shares outstanding |
71,460 |
|
|
71,438 |
|
|
71,418 |
|
|
71,350 |
|
|
71,207 |
|
|
71,152 |
|
|
71,131 |
|
|
71,118 |
|
Book value
per share (shareholders' equity, as reported, divided by common
shares outstanding) |
$ |
39.69 |
|
|
$ |
39.04 |
|
|
$ |
38.52 |
|
|
$ |
37.91 |
|
|
$ |
37.48 |
|
|
$ |
37.57 |
|
|
$ |
37.11 |
|
|
$ |
36.56 |
|
Tangible
book value per share (tangible shareholders' equity divided by
common shares outstanding) |
$ |
23.54 |
|
|
$ |
22.87 |
|
|
$ |
22.33 |
|
|
$ |
21.68 |
|
|
$ |
21.21 |
|
|
$ |
21.36 |
|
|
$ |
20.89 |
|
|
$ |
20.32 |
|
Tangible Shareholders' Equity to Tangible
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$21,498,341 |
|
$20,905,489 |
|
$20,282,603 |
|
$19,757,510 |
|
$19,280,873 |
|
$19,354,308 |
|
$18,781,405 |
|
$17,636,973 |
Goodwill,
CDI and noncompete agreements, net of tax |
|
|
|
(1,153,877 |
) |
|
|
|
|
(1,155,083 |
) |
|
|
|
|
(1,156,307 |
) |
|
|
|
|
(1,157,505 |
) |
|
|
|
|
(1,158,738 |
) |
|
|
|
|
(1,153,576 |
) |
|
|
|
|
(1,153,595 |
) |
|
|
|
|
(1,154,915 |
) |
Tangible
assets |
$20,344,464 |
|
$19,750,406 |
|
$19,126,296 |
|
$18,600,005 |
|
$18,122,135 |
|
$18,200,732 |
|
$17,627,810 |
|
$16,482,058 |
Shareholders' equity to total assets |
13.2 |
% |
|
13.3 |
% |
|
13.6 |
% |
|
13.7 |
% |
|
13.8 |
% |
|
13.8 |
% |
|
14.1 |
% |
|
14.7 |
% |
Tangible
shareholders' equity to tangible assets |
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.4 |
% |
|
8.8 |
% |
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