Chemical Financial Corporation ("Chemical") (NASDAQ:CHFC) today
announced 2019 second quarter net income of $69.6 million, or $0.96
per diluted share, compared to 2019 first quarter net income of
$62.9 million, or $0.87 per diluted share, and 2018 second quarter
net income of $69.0 million, or $0.96 per diluted share. Net
income, excluding the change in fair of value in loan servicing
rights and merger expenses (collectively, "significant items"), a
non-GAAP financial measure, was $76.3 million, or $1.06 per diluted
share, in the second quarter of 2019, compared to $73.3 million, or
$1.02 per diluted share, in the first quarter of 2019 and $69.0
million, or $0.96 per diluted share, in the second quarter of
2018.(1) Net income for the second quarter of 2019 also
included $4.2 million in net gain on sale of investment securities
resulting from the repositioning of our securities portfolio as we
plan for our future following the previously announced proposed
merger of equals with TCF Financial Corporation ("TCF"), a benefit
of $0.04 to diluted earnings per share.
"We are pleased with our core underlying trends
for the quarter, including improvement in profitability ratios,
increased net interest income driven by solid loan growth and a
continued low operating efficiency ratio as a result of disciplined
expense management," noted David T. Provost, Chief Executive
Officer of Chemical and Thomas C. Shafer, Vice Chairman of Chemical
and Chief Executive Officer of Chemical Bank. "As we look forward
to the remainder of the year, we plan to complete our proposed
merger of equals with TCF on August 1, 2019. We believe the shared
strategic vision and complementary strengths of the two
organizations, as we bring together the best of both banks, will
position us to provide a more robust product set to a broader
customer base, with limited overlap and disruption positioning us
to thrive in today's evolving banking environment."
Return on average assets was 1.27% for the
second quarter of 2019, compared to 1.17% for the first quarter of
2019 and 1.39% for the second quarter of 2018. Return on average
assets, excluding significant items, a non-GAAP financial measure,
was 1.39% for the second quarter of 2019, compared to 1.36% for the
first quarter of 2019 and 1.39% for the second quarter of
2018.(1) Return on average tangible shareholders' equity was
15.7% for the second quarter of 2019, compared to 14.8% for the
first quarter of 2019 and 17.8% for the second quarter of 2018.
Return on average tangible shareholders' equity, excluding
significant items, a non-GAAP financial measure, was 17.3% for the
second quarter of 2019, compared to 17.2% for the first quarter of
2019 and 17.8% for the second quarter of 2018.(1)
Net interest income was $165.2 million for the
second quarter of 2019, $2.3 million, or 1.4%, higher than the
first quarter of 2019 and $7.6 million, or 4.8%, higher than the
second quarter of 2018. The increase in net interest income in the
second quarter of 2019, compared to the first quarter of 2019, was
primarily attributable to the benefit from an increase in average
balances and yields earned on loans, partially offset by an
increase in average short-term borrowings and cost of funds. The
increase in net interest income in the second quarter of 2019,
compared to the second quarter of 2018, was primarily attributable
to increases in average balances and yields earned on loans and
investment securities, partially offset by increases in average
interest-bearing deposit balances and cost of funds. Second quarter
of 2019 loan growth was $537.9 million, or an annualized growth
rate of 14.0%, compared to the first quarter of 2019, and loan
growth over the past twelve months was $1.28 billion, or 8.8%. The
investment securities portfolio grew by $803.3 million, net of
approximately $135 million of sales completed in the second quarter
of 2019 to reposition the portfolio, compared to the second quarter
of 2018.
Net interest margin was 3.31% in the second
quarter of 2019, compared to 3.38% in the first quarter of 2019 and
3.54% in the second quarter of 2018. Net interest margin (fully
taxable equivalent (FTE)), a non-GAAP financial measure, was 3.36%
in the second quarter of 2019, compared to 3.42% in the first
quarter of 2019 and 3.59% in the second quarter of 2018.(1) The
decrease in net interest margin (FTE), in the second quarter of
2019, compared to the first quarter of 2019, was primarily due to
an increase in average interest-bearing liabilities and cost of
funds, partially offset by increases in average balance and yield
earned on loans. The decrease in net interest margin (FTE), in the
second quarter of 2019, compared to the second quarter of 2018, was
primarily due to an increase in average interest-bearing deposits
and cost of funds, partially offset by increases in average
balances and yields earned on loans and investment securities.
Average cost of funds was 1.20% in the second quarter of 2019,
compared to 1.13% in the first quarter of 2019 and 0.76% in the
second quarter of 2018. The average yield on the loan portfolio
increased to 4.90% in the second quarter of 2019, compared to 4.86%
in the first quarter of 2019 and 4.63% in the second quarter of
2018. Interest accretion from purchase accounting discounts on
acquired loans contributed 22 basis points to the net interest
margin (FTE) in both the second and first quarters of 2019,
compared to 26 basis points in the second quarter of 2018.
The provision for loan losses was $7.5 million
in the second quarter of 2019, compared to $2.1 million in the
first quarter of 2019 and $9.6 million in the second quarter of
2018. The increase in total provision for loan losses in the second
quarter of 2019, compared to the first quarter of 2019, was
primarily the result of an increase in originated loan growth. The
decrease in the provision for loan losses in the second quarter of
2019, compared to the second quarter of 2018, was primarily the
result of lower charge-offs.
Net loan charge-offs were $1.8 million, or 0.05%
of average loans, in both the second and first quarters of 2019,
compared to $4.3 million, or 0.12% of average loans, in the second
quarter of 2018.
Nonperforming loans totaled $97.7 million at
June 30, 2019, compared to $89.3 million at March 31,
2019 and $66.7 million at June 30, 2018. Nonperforming loans
comprised 0.62% of total loans at June 30, 2019, compared to
0.58% at March 31, 2019 and 0.46% at June 30, 2018. The
increase in nonperforming loans at June 30, 2019, compared to
March 31, 2019 and June 30, 2018 was primarily due to
commercial and commercial real estate loans downgraded to
nonaccrual status. Each nonperforming loan is individually
evaluated for impairment, and we have either established a specific
reserve within the allowance for loan losses or charged the loan
relationship down to the value of the underlying collateral.
The allowance for loan losses on the originated
loan portfolio was $116.0 million, or 0.90% of originated loans, at
June 30, 2019, compared to $110.3 million, or 0.91% of
originated loans, at March 31, 2019 and $100.0 million, or
0.94% of originated loans, at June 30, 2018. The allowance for
loan losses on the originated loan portfolio as a percentage of
nonperforming loans decreased to 118.7% at June 30, 2019,
compared to 123.5% at March 31, 2019 and 149.9% at
June 30, 2018, primarily due to sustained low loan charge-off
rates and improvement in historical loss factors for commercial
loans. All acquired loans were recorded at their estimated fair
value at each respective acquisition date without a carryover of
the related allowance and, as of June 30, 2019, March 31,
2019 and June 30, 2018, we determined that no allowance was
needed for the acquired loan portfolio.
Noninterest income was $38.2 million in the
second quarter of 2019, compared to $24.9 million in the first
quarter of 2019 and $38.0 million in the second quarter of 2018.
Noninterest income in the second quarter of 2019 increased $13.3
million, compared to the first quarter of 2019, primarily related
to increases in gain on sale of investment securities of $4.1
million, net gain on sale of loans and other mortgage banking
revenue of $3.6 million and swap fee income of $2.1 million,
included within other noninterest income. Noninterest income in the
second quarter of 2019 increased $146 thousand, compared to the
second quarter of 2018, primarily due to the benefit from sales of
investment securities, partially offset by a decrease in net gain
on sale of loans and other mortgage banking revenue. Net gain on
sales of investment securities of $4.2 million provided a benefit
of $0.04 to diluted earnings per share in the second quarter of
2019. Net gain on sale of loans and other mortgage banking revenue
included a $5.5 million detriment to earnings due to a change in
fair value in loan servicing rights in the second quarter of 2019,
compared to a $7.6 million detriment in the first quarter of 2019
and a $30 thousand detriment in the second quarter of 2018. The
change in fair value in loan servicing rights was a detriment of
$0.06 to diluted earnings per share in the second quarter of 2019,
compared to a detriment of $0.09 in the first quarter of 2019 and
no impact in the second quarter of 2018.
Operating expenses were $111.0 million in the
second quarter of 2019, compared to $109.0 million in the first
quarter of 2019 and $104.6 million in the second quarter of 2018.
Operating expenses, core, a non-GAAP financial measure that
excludes the impact of merger expenses and federal historic tax
credits, were $107.7 million for the second quarter of 2019,
compared to $103.6 million for the first quarter of 2019 and $102.8
million for the second quarter of 2018.(1) The $4.1 million
increase in operating expenses, core, in the second quarter of
2019, compared to the first quarter of 2019, was primarily due to
an increase in salaries, wages and employee benefits. The increase
to salaries, wages and employee benefits in the second quarter of
2019, compared to the first quarter of 2019 was impacted by an
increase in mortgage loan commission expense of $1.8 million and
annual merit increases effective in April, partially offset by an
increase in the deferral of loan origination costs due to higher
loan production. The $4.9 million increase in operating expenses,
core, in the second quarter of 2019, compared to the second quarter
of 2018, was primarily due to an increase in salaries, wages and
employee benefits impacted by annual merit increases and 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.
Second quarter of 2019 included $3.0 million of merger related
expenses, or a detriment of $0.04 to diluted earnings per share,
compared to $5.4 million of merger related expenses, or a detriment
of $0.06 to diluted earnings per share in the first quarter of
2019. Impairment related to federal historic tax credits, included
within other operating expense in our Consolidated Statements of
Income, totaled $271 thousand in the second quarter of 2019 and
$1.7 million in the second quarter of 2018.
The efficiency ratio is a measure of operating
expenses as a percentage of net interest income and noninterest
income. The efficiency ratio was 54.6% in the second quarter of
2019, compared to 58.1% in the first quarter of 2019 and 53.5% in
the second quarter of 2018. The adjusted efficiency ratio, a
non-GAAP financial measure, which excludes, as applicable, the
significant items defined above, amortization of intangibles,
impairment of federal income tax credits, the net interest income
FTE adjustment and gains from sale of investment securities, was
51.3% in the second quarter of 2019, compared to 51.7% in the first
quarter of 2019 and 51.2% in the second quarter of 2018.(1)
The effective tax rate was 18.0% in the second
quarter of 2019, compared to 17.8% in the first quarter of 2019 and
15.3% in the second quarter of 2018. The tax rate for the second
quarter of 2019 and second quarter of 2018 benefited from federal
historic tax credits of $260 thousand and $1.9 million,
respectively. 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.
Total assets were $22.49 billion at June 30, 2019, compared to
$21.80 billion at March 31, 2019 and $20.28 billion at
June 30, 2018. The increase in total assets during the second
quarter of 2019 was primarily attributable to net loan growth while
the increase in the twelve months ended June 30, 2019 was
additionally attributable to additions to the investment securities
portfolio.
Total loans were $15.86 billion at June 30,
2019, an increase of $537.9 million, from total loans of $15.32
billion at March 31, 2019 and an increase of $1.28 billion,
from total loans of $14.58 billion at June 30, 2018.
Originated loan growth was $728.8 million during the second quarter
of 2019, compared to $297.5 million in the first quarter of 2019
and $684.0 million in the second quarter of 2018. Growth in the
originated loan portfolio was partially offset by run-off in the
acquired loan portfolio of $190.9 million in the second quarter of
2019, compared to $243.2 million in the first quarter of 2019 and
$323.1 million in the second quarter of 2018.
The investment securities portfolio totaled
$3.94 billion at June 30, 2019, an increase of $12.3 million,
compared to $3.92 billion at March 31, 2019, and an increase
of $803.3 million, compared to $3.13 billion at June 30, 2018.
The increase in the investment securities portfolio in both the
second quarter of 2019 and the twelve months ended June 30,
2019 reflects our long-term plan to increase our investment
securities portfolio as a percentage of total assets.
Total deposits were $15.88 billion at
June 30, 2019, compared to $16.06 billion at March 31,
2019 and $14.55 billion at June 30, 2018. The decrease in
deposits during the second quarter of 2019 was primarily due to a
seasonal decrease in municipal interest-bearing checking deposits,
partially offset by an increase in non-interest bearing checking
deposits. The increase in deposits during the twelve months ended
June 30, 2019 was primarily due to increases of $1.31 billion
in customer deposits and $19.7 million in brokered deposits.
Collateralized customer deposits were $291.7 million at
June 30, 2019, compared to $413.2 million at March 31,
2019 and $378.9 million at June 30, 2018. Loans, as a
percentage of deposits plus collateralized customer deposits, were
98.1% at June 30, 2019, compared to 93.0% at March 31,
2019 and 97.7% at June 30, 2018.
Short-term borrowings were $2.62 billion at
June 30, 2019, compared to $1.74 billion at March 31,
2019 and $2.10 billion at June 30, 2018. Short-term borrowings
include short-term FHLB advances that we used to fund our
short-term liquidity needs, including to support loan growth.
Long-term borrowings were $426.1 million at both June 30, 2019
and March 31, 2019, compared to $331.0 million at
June 30, 2018.
Our shareholders' equity to total assets ratio
was 13.1% at June 30, 2019, compared to 13.3% at
March 31, 2019 and 13.6% at June 30, 2018. Tangible
shareholders' equity to tangible assets ratio, a non-GAAP financial
measure, and total risk-based capital ratio were 8.4% and 11.5%
(estimated), respectively, at June 30, 2019, compared to 8.5%
and 11.7%, respectively, at March 31, 2019 and 8.3% and 11.4%,
respectively, at June 30, 2018.(1) Book value was $41.27
per share at June 30, 2019, compared to $40.50 per share at
March 31, 2019 and $38.52 per share at June 30, 2018.
Tangible book value, a non-GAAP financial measure, was $25.18 per
share at June 30, 2019, compared to $24.39 per share at
March 31, 2019 and $22.33 per share at June 30, 2018.(1)
If the proposed merger with TCF closes as anticipated on August 1,
2019, the combined company Board of Directors intends to declare
the third quarter of 2019 common and preferred stock dividends on
that date for the combined company. These dividends are expected to
be payable in the third quarter of 2019.
- 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.
Conference Call Details
Chemical Financial Corporation will host a
conference call to discuss second quarter of 2019 operating results
on Thursday, July 25, 2019, at 11:00 a.m. ET. Anyone
interested may access the conference call on a live basis by
dialing toll-free at 888-378-4398 and entering 339057 for the
conference ID. The call will also be broadcast live over the
Internet hosted at Chemical Financial Corporation's website at
www.chemicalbank.com under the "Investor Information"
section. A copy of the slide-show presentation can be accessed
on Chemical Financial Corporation's website and an audio replay of
the call will remain available on Chemical Financial Corporation's
website for at least 14 days.
About Chemical Financial
Corporation
Chemical Financial Corporation is the largest
banking company headquartered and operating branch offices in
Michigan. We operate through our subsidiary bank, Chemical Bank,
with 212 banking offices located primarily in Michigan, northeast
Ohio and northern Indiana. At June 30, 2019, we had total
consolidated assets of $22.49 billion. Chemical Financial
Corporation's common stock trades on The NASDAQ Stock Market under
the symbol CHFC and is one of the issuers comprising The NASDAQ
Global Select Market and the S&P MidCap 400 Index. More
information about Chemical Financial Corporation is available by
visiting the "Investor Information" section of our website at
www.chemicalbank.com.
Non-GAAP Financial Measures
This press release contains references to
financial measures that 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, tangible shareholders' equity to
tangible assets, 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.
Management used non-GAAP financial measures as
follows; in the preparation of our operating budgets, monthly
financial performance reporting, and in our presentation to
investors of our performance. We believe these non-GAAP financial
measures 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 Chemical Financial loan pipeline, future loan
growth, increases in net interest income, and the belief that we
are in a solid position for a successful 2019. Words and phrases
such as "anticipate," "believe," "plan," "continue,"
"estimate," "expect," "forecast," "future," "intend," "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 inability 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 inability to grow deposits;
- our ability to execute on our strategy to expand investments
and commercial lending;
- our inability to efficiently manage our operating
expenses;
- the possibility that our previously announced merger with TCF
does not close when expected or at all because conditions to
closing are not satisfied on a timely basis or at all;
- the occurrence of any event, change or other circumstance that
could give rise to the right of Chemical, TCF or both to terminate
the merger agreement;
- the outcome of pending or threatened litigation or of matters
before regulatory agencies, whether currently existing or
commencing in the future, including litigation related to our
proposed merger with TCF;
- potential difficulty in maintaining relationships with clients,
employees or business partners as a result of our proposed merger
with TCF;
- the possibility that the anticipated benefits of our proposed
merger with TCF, including anticipated cost savings and strategic
gains, are not realized when expected or at all, including as a
result of the impact of, or problems arising from, the integration
of the two companies or as a result of the strength of the economy,
competitive factors in the areas where Chemical and TCF do
business, or as a result of other unexpected factors or
events;
- the impact of purchase accounting with respect to the proposed
merger with TCF, or any change in the assumptions used regarding
the assets purchased and liabilities assumed to determine their
fair value;
- diversion of management's attention from ongoing business
operations and opportunities as a result of the proposed merger
with TCF;
- potential adverse reactions or changes to business or employee
relationships, including those resulting from the announcement or
completion of the proposed merger with TCF;
- 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;
- increased capital requirements, other regulatory requirements
or enhanced regulatory supervision;
- our inability to sustain revenue and earnings growth;
- the timing of when historic tax credits are placed into service
could impact operating expenses;
- our inability to efficiently manage operating expenses;
- our inability to increase our investment securities portfolio
as a percentage of total assets;
- 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;
and
- economic, governmental, or other factors may prevent the
projected population, residential, and commercial growth in the
markets in which we operate.
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,
2018, in the Joint Proxy Statement/Prospectus regarding the
proposed merger that was filed with the SEC on May 3, 2019 pursuant
to Rule 424(b)(3) by Chemical and in Quarterly Reports on Form
10-Q. 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
2019 Second Quarter Operating Results
Consolidated Statements of Financial Position
(Unaudited)Chemical Financial Corporation(In thousands, except per
share data)
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
June 30, 2018 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash
equivalents: |
|
|
|
|
|
|
|
Cash and cash due from banks |
$ |
200,034 |
|
|
$ |
206,372 |
|
|
$ |
228,527 |
|
|
$ |
222,748 |
|
Interest-bearing deposits with the Federal Reserve Bank and other
banks and federal funds sold |
392,724 |
|
|
311,204 |
|
|
267,312 |
|
|
302,532 |
|
Total cash and cash equivalents |
592,758 |
|
|
517,576 |
|
|
495,839 |
|
|
525,280 |
|
Investment securities: |
|
|
|
|
|
|
|
Carried at fair value |
3,369,872 |
|
|
3,301,054 |
|
|
3,021,832 |
|
|
2,529,910 |
|
Held-to-maturity |
566,046 |
|
|
622,519 |
|
|
624,099 |
|
|
602,687 |
|
Total investment securities |
3,935,918 |
|
|
3,923,573 |
|
|
3,645,931 |
|
|
3,132,597 |
|
Loans held-for-sale |
33,019 |
|
|
23,535 |
|
|
85,030 |
|
|
46,849 |
|
Loans |
15,861,903 |
|
|
15,324,048 |
|
|
15,269,779 |
|
|
14,579,693 |
|
Allowance for loan losses |
(115,967 |
) |
|
(110,284 |
) |
|
(109,984 |
) |
|
(100,015 |
) |
Net loans |
15,745,936 |
|
|
15,213,764 |
|
|
15,159,795 |
|
|
14,479,678 |
|
Premises and equipment |
123,708 |
|
|
122,452 |
|
|
123,442 |
|
|
125,970 |
|
Loan servicing rights |
60,658 |
|
|
64,701 |
|
|
71,013 |
|
|
70,364 |
|
Goodwill |
1,134,568 |
|
|
1,134,568 |
|
|
1,134,568 |
|
|
1,134,568 |
|
Core deposit intangibles |
25,835 |
|
|
27,195 |
|
|
28,556 |
|
|
31,407 |
|
Interest receivable and other
assets |
839,365 |
|
|
772,949 |
|
|
754,167 |
|
|
735,890 |
|
Total
Assets |
$ |
22,491,765 |
|
|
$ |
21,800,313 |
|
|
$ |
21,498,341 |
|
|
$ |
20,282,603 |
|
Liabilities |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
3,925,777 |
|
|
$ |
3,835,427 |
|
|
$ |
3,809,252 |
|
|
$ |
3,894,259 |
|
Interest-bearing |
11,953,659 |
|
|
12,226,572 |
|
|
11,784,030 |
|
|
10,657,277 |
|
Total deposits |
15,879,436 |
|
|
16,061,999 |
|
|
15,593,282 |
|
|
14,551,536 |
|
Collateralized customer
deposits |
291,671 |
|
|
413,199 |
|
|
382,687 |
|
|
378,938 |
|
Short-term borrowings |
2,615,000 |
|
|
1,740,000 |
|
|
2,035,000 |
|
|
2,095,000 |
|
Long-term borrowings |
426,069 |
|
|
426,035 |
|
|
426,002 |
|
|
330,956 |
|
Interest payable and other
liabilities |
326,054 |
|
|
261,571 |
|
|
225,110 |
|
|
175,174 |
|
Total liabilities |
19,538,230 |
|
|
18,902,804 |
|
|
18,662,081 |
|
|
17,531,604 |
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Preferred stock, no par value per share |
— |
|
|
— |
|
|
— |
|
|
— |
|
Common stock, $1 par value per share |
71,559 |
|
|
71,551 |
|
|
71,460 |
|
|
71,418 |
|
Additional paid-in capital |
2,212,665 |
|
|
2,209,860 |
|
|
2,209,761 |
|
|
2,205,402 |
|
Retained earnings |
699,712 |
|
|
654,605 |
|
|
616,149 |
|
|
521,530 |
|
Accumulated other comprehensive loss |
(30,401 |
) |
|
(38,507 |
) |
|
(61,110 |
) |
|
(47,351 |
) |
Total shareholders' equity |
2,953,535 |
|
|
2,897,509 |
|
|
2,836,260 |
|
|
2,750,999 |
|
Total Liabilities and
Shareholders' Equity |
$ |
22,491,765 |
|
|
$ |
21,800,313 |
|
|
$ |
21,498,341 |
|
|
$ |
20,282,603 |
|
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Consolidated Statements of Income (Unaudited)Chemical Financial
Corporation(In thousands, except per share data)
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
June 30, 2019 |
|
June 30, 2018 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
188,875 |
|
|
$ |
183,292 |
|
|
$ |
165,388 |
|
|
$ |
372,167 |
|
|
$ |
322,206 |
|
Interest on investment
securities: |
|
|
|
|
|
|
|
|
|
Taxable |
21,214 |
|
|
20,501 |
|
|
14,706 |
|
|
41,715 |
|
|
27,125 |
|
Tax-exempt |
7,297 |
|
|
7,170 |
|
|
5,998 |
|
|
14,467 |
|
|
11,554 |
|
Dividends on nonmarketable
equity securities |
2,401 |
|
|
1,738 |
|
|
2,189 |
|
|
4,139 |
|
|
4,090 |
|
Interest on deposits with the
Federal Reserve Bank and other banks and federal funds sold |
1,641 |
|
|
1,280 |
|
|
1,301 |
|
|
2,921 |
|
|
2,541 |
|
Total interest income |
221,428 |
|
|
213,981 |
|
|
189,582 |
|
|
435,409 |
|
|
367,516 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest on deposits |
42,011 |
|
|
38,998 |
|
|
19,707 |
|
|
81,009 |
|
|
35,624 |
|
Interest on collateralized
customer deposits |
537 |
|
|
627 |
|
|
641 |
|
|
1,164 |
|
|
1,165 |
|
Interest on short-term
borrowings |
11,345 |
|
|
9,178 |
|
|
10,408 |
|
|
20,523 |
|
|
18,574 |
|
Interest on long-term
borrowings |
2,374 |
|
|
2,354 |
|
|
1,289 |
|
|
4,728 |
|
|
2,753 |
|
Total interest expense |
56,267 |
|
|
51,157 |
|
|
32,045 |
|
|
107,424 |
|
|
58,116 |
|
Net interest
income |
165,161 |
|
|
162,824 |
|
|
157,537 |
|
|
327,985 |
|
|
309,400 |
|
Provision for loan losses |
7,502 |
|
|
2,059 |
|
|
9,572 |
|
|
9,561 |
|
|
15,828 |
|
Net interest income after provision for loan
losses |
157,659 |
|
|
160,765 |
|
|
147,965 |
|
|
318,424 |
|
|
293,572 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
Service charges and fees on
deposit accounts |
8,247 |
|
|
7,967 |
|
|
9,690 |
|
|
16,214 |
|
|
19,124 |
|
Wealth management revenue |
6,966 |
|
|
5,872 |
|
|
7,188 |
|
|
12,838 |
|
|
13,499 |
|
Other charges and fees for
customer services |
5,755 |
|
|
4,824 |
|
|
4,799 |
|
|
10,579 |
|
|
9,582 |
|
Net gain on sale of loans and
other mortgage banking revenue |
4,532 |
|
|
894 |
|
|
8,844 |
|
|
5,426 |
|
|
21,379 |
|
Net gain on sale of investment
securities |
4,160 |
|
|
87 |
|
|
3 |
|
|
4,247 |
|
|
3 |
|
Other |
8,504 |
|
|
5,213 |
|
|
7,494 |
|
|
13,717 |
|
|
14,985 |
|
Total noninterest income |
38,164 |
|
|
24,857 |
|
|
38,018 |
|
|
63,021 |
|
|
78,572 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
Salaries, wages and employee
benefits |
62,129 |
|
|
60,017 |
|
|
56,148 |
|
|
122,146 |
|
|
111,705 |
|
Occupancy |
7,786 |
|
|
8,277 |
|
|
7,679 |
|
|
16,063 |
|
|
15,690 |
|
Equipment and software |
7,076 |
|
|
6,979 |
|
|
8,276 |
|
|
14,055 |
|
|
15,935 |
|
Outside processing and service
fees |
12,206 |
|
|
11,726 |
|
|
10,673 |
|
|
23,932 |
|
|
21,029 |
|
Merger expenses |
3,042 |
|
|
5,424 |
|
|
— |
|
|
8,466 |
|
|
— |
|
Other |
18,764 |
|
|
16,592 |
|
|
21,785 |
|
|
35,356 |
|
|
41,812 |
|
Total operating expenses |
111,003 |
|
|
109,015 |
|
|
104,561 |
|
|
220,018 |
|
|
206,171 |
|
Income before income
taxes |
84,820 |
|
|
76,607 |
|
|
81,422 |
|
|
161,427 |
|
|
165,973 |
|
Income tax expense |
15,226 |
|
|
13,665 |
|
|
12,434 |
|
|
28,891 |
|
|
25,389 |
|
Net
income |
$ |
69,594 |
|
|
$ |
62,942 |
|
|
$ |
68,988 |
|
|
$ |
132,536 |
|
|
$ |
140,584 |
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding-basic |
71,554 |
|
|
71,474 |
|
|
71,329 |
|
|
71,514 |
|
|
71,280 |
|
Weighted average common shares outstanding-diluted |
72,272 |
|
|
72,141 |
|
|
72,026 |
|
|
72,207 |
|
|
71,966 |
|
Basic earnings per share |
$ |
0.97 |
|
|
$ |
0.88 |
|
|
$ |
0.97 |
|
|
$ |
1.85 |
|
|
$ |
1.97 |
|
Diluted earnings per share |
0.96 |
|
|
0.87 |
|
|
0.96 |
|
|
1.84 |
|
|
1.95 |
|
Diluted earnings per share, excluding significant items
(non-GAAP) |
1.06 |
|
|
1.02 |
|
|
0.96 |
|
|
2.07 |
|
|
1.91 |
|
Cash dividends
declared per common share |
0.34 |
|
|
0.34 |
|
|
0.28 |
|
|
0.68 |
|
|
0.56 |
|
Key ratios (annualized
where applicable): |
|
|
|
|
|
|
|
|
|
Return on average assets |
1.27 |
% |
|
1.17 |
% |
|
1.39 |
% |
|
1.22 |
% |
|
1.43 |
% |
Return on average tangible shareholders' equity, excluding
significant items (non-GAAP) |
17.3 |
% |
|
17.2 |
% |
|
17.8 |
% |
|
17.2 |
% |
|
18.0 |
% |
Net interest margin (tax-equivalent basis) (non-GAAP) |
3.36 |
% |
|
3.42 |
% |
|
3.59 |
% |
|
3.39 |
% |
|
3.58 |
% |
Efficiency ratio - GAAP |
54.6 |
% |
|
58.1 |
% |
|
53.5 |
% |
|
56.3 |
% |
|
53.1 |
% |
Efficiency ratio - adjusted (non-GAAP) |
51.3 |
% |
|
51.7 |
% |
|
51.2 |
% |
|
51.5 |
% |
|
51.4 |
% |
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Selected Quarterly Information (Unaudited)Chemical Financial
Corporation(Dollars in thousands, except per share data)
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
Summary of
Operations |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
221,428 |
|
|
$ |
213,981 |
|
|
$ |
210,103 |
|
|
$ |
198,377 |
|
|
$ |
189,582 |
|
|
$ |
177,934 |
|
Interest expense |
56,267 |
|
|
51,157 |
|
|
46,651 |
|
|
38,896 |
|
|
32,045 |
|
|
26,071 |
|
Net interest income |
165,161 |
|
|
162,824 |
|
|
163,452 |
|
|
159,481 |
|
|
157,537 |
|
|
151,863 |
|
Provision for loan losses |
7,502 |
|
|
2,059 |
|
|
8,894 |
|
|
6,028 |
|
|
9,572 |
|
|
6,256 |
|
Net interest income after
provision for loan losses |
157,659 |
|
|
160,765 |
|
|
154,558 |
|
|
153,453 |
|
|
147,965 |
|
|
145,607 |
|
Noninterest income |
38,164 |
|
|
24,857 |
|
|
32,047 |
|
|
37,917 |
|
|
38,018 |
|
|
40,554 |
|
Operating expenses, excluding
merger expenses and impairment of income tax credits
(non-GAAP) |
107,690 |
|
|
103,591 |
|
|
102,594 |
|
|
106,499 |
|
|
102,845 |
|
|
99,976 |
|
Merger expenses |
3,042 |
|
|
5,424 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Impairment of income tax
credits |
271 |
|
|
— |
|
|
5,772 |
|
|
3,162 |
|
|
1,716 |
|
|
1,634 |
|
Income before income
taxes |
84,820 |
|
|
76,607 |
|
|
78,239 |
|
|
81,709 |
|
|
81,422 |
|
|
84,551 |
|
Income tax expense |
15,226 |
|
|
13,665 |
|
|
5,200 |
|
|
11,312 |
|
|
12,434 |
|
|
12,955 |
|
Net income |
$ |
69,594 |
|
|
$ |
62,942 |
|
|
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
Significant items, net of
tax |
6,714 |
|
|
10,326 |
|
|
2,233 |
|
|
(735 |
) |
|
23 |
|
|
(2,964 |
) |
Net income, excluding
significant items |
$ |
76,308 |
|
|
$ |
73,268 |
|
|
$ |
75,272 |
|
|
$ |
69,662 |
|
|
$ |
69,011 |
|
|
$ |
68,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data |
|
|
|
|
|
|
|
|
|
|
|
Net income: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.97 |
|
|
$ |
0.88 |
|
|
$ |
1.02 |
|
|
$ |
0.99 |
|
|
$ |
0.97 |
|
|
$ |
1.01 |
|
Diluted |
0.96 |
|
|
0.87 |
|
|
1.01 |
|
|
0.98 |
|
|
0.96 |
|
|
0.99 |
|
Diluted, excluding significant items (non-GAAP) |
1.06 |
|
|
1.02 |
|
|
1.04 |
|
|
0.97 |
|
|
0.96 |
|
|
0.95 |
|
Cash dividends declared |
0.34 |
|
|
0.34 |
|
|
0.34 |
|
|
0.34 |
|
|
0.28 |
|
|
0.28 |
|
Book value - period-end |
41.27 |
|
|
40.50 |
|
|
39.69 |
|
|
39.04 |
|
|
38.52 |
|
|
37.91 |
|
Tangible book value -
period-end (non-GAAP) |
25.18 |
|
|
24.39 |
|
|
23.54 |
|
|
22.87 |
|
|
22.33 |
|
|
21.68 |
|
Market value - period-end |
41.11 |
|
|
41.16 |
|
|
36.61 |
|
|
53.40 |
|
|
55.67 |
|
|
54.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios
(annualized where applicable) |
|
|
|
|
|
|
|
|
|
|
Net interest margin (taxable
equivalent basis) (non-GAAP) |
3.36 |
% |
|
3.42 |
% |
|
3.49 |
% |
|
3.48 |
% |
|
3.59 |
% |
|
3.56 |
% |
Efficiency ratio - adjusted
(non-GAAP) |
51.3 |
% |
|
51.7 |
% |
|
50.4 |
% |
|
52.8 |
% |
|
51.2 |
% |
|
51.6 |
% |
Return on average assets |
1.27 |
% |
|
1.17 |
% |
|
1.39 |
% |
|
1.37 |
% |
|
1.39 |
% |
|
1.47 |
% |
Return on average assets,
excluding significant items (non-GAAP) |
1.39 |
% |
|
1.36 |
% |
|
1.44 |
% |
|
1.36 |
% |
|
1.39 |
% |
|
1.41 |
% |
Return on average
shareholders' equity |
9.5 |
% |
|
8.8 |
% |
|
10.4 |
% |
|
10.2 |
% |
|
10.2 |
% |
|
10.7 |
% |
Return on average tangible
shareholders' equity (non-GAAP) |
15.7 |
% |
|
14.8 |
% |
|
17.8 |
% |
|
17.5 |
% |
|
17.8 |
% |
|
19.0 |
% |
Return on average tangible
shareholders' equity, excluding significant items (non-GAAP) |
17.3 |
% |
|
17.2 |
% |
|
18.3 |
% |
|
17.3 |
% |
|
17.8 |
% |
|
18.2 |
% |
Average shareholders' equity
as a percent of average assets |
13.3 |
% |
|
13.3 |
% |
|
13.4 |
% |
|
13.5 |
% |
|
13.6 |
% |
|
13.7 |
% |
Capital ratios (period
end): |
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders' equity as a percent of tangible assets
(non-GAAP) |
8.4 |
% |
|
8.5 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
Total risk-based capital ratio (1) |
11.5 |
% |
|
11.7 |
% |
|
11.5 |
% |
|
11.7 |
% |
|
11.4 |
% |
|
11.2 |
% |
(1) Estimated at
June 30, 2019.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Average Balances, Fully Tax Equivalent (FTE) Interest and
Effective Yields and Rates(1) (Unaudited)Chemical Financial
Corporation(Dollars in thousands)
|
Three Months
Ended |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
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) |
$ |
15,514,181 |
|
|
$ |
189,612 |
|
|
4.90 |
% |
|
$ |
15,323,704 |
|
|
$ |
184,058 |
|
4.86 |
% |
|
$ |
14,389,574 |
|
|
$ |
166,125 |
|
4.63 |
% |
Taxable investment securities |
2,889,273 |
|
|
21,214 |
|
|
2.94 |
|
|
2,631,161 |
|
|
|
20,501 |
|
|
3.12 |
|
|
2,019,003 |
|
|
|
14,706 |
|
|
2.91 |
|
Tax-exempt investmentsecurities(1) |
1,137,426 |
|
|
9,231 |
|
|
3.25 |
|
|
1,154,348 |
|
|
|
9,066 |
|
|
3.14 |
|
|
1,020,567 |
|
|
|
7,592 |
|
|
2.98 |
|
Other interest-earning assets |
194,798 |
|
|
2,401 |
|
|
4.94 |
|
|
193,326 |
|
|
|
1,738 |
|
|
3.65 |
|
|
189,654 |
|
|
|
2,189 |
|
|
4.63 |
|
Interest-bearing deposits with the FRB, other banks and federal
funds sold |
280,507 |
|
|
1,641 |
|
|
2.35 |
|
|
221,116 |
|
|
|
1,280 |
|
|
2.35 |
|
|
228,464 |
|
|
|
1,301 |
|
|
2.28 |
|
Total interest-earning
assets |
20,016,185 |
|
|
224,099 |
|
|
4.49 |
|
|
19,523,655 |
|
|
|
216,643 |
|
|
4.48 |
|
|
17,847,262 |
|
|
|
191,913 |
|
|
4.31 |
|
Less: allowance for loan
losses |
(111,759 |
) |
|
|
|
|
|
(110,852 |
) |
|
|
|
|
|
(96,332 |
) |
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash due from banks |
165,880 |
|
|
|
|
|
|
186,849 |
|
|
|
|
|
|
219,751 |
|
|
|
|
|
Premises and equipment |
122,969 |
|
|
|
|
|
|
123,470 |
|
|
|
|
|
|
126,570 |
|
|
|
|
|
Interest receivable and other assets |
1,812,220 |
|
|
|
|
|
|
1,791,876 |
|
|
|
|
|
|
1,753,742 |
|
|
|
|
|
Total assets |
$ |
22,005,495 |
|
|
|
|
|
|
$ |
21,514,998 |
|
|
|
|
|
|
$ |
19,850,993 |
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
3,258,584 |
|
|
$ |
6,802 |
|
|
0.84 |
% |
|
$ |
3,375,841 |
|
|
$ |
6,721 |
|
|
0.81 |
% |
|
$ |
2,597,610 |
|
|
$ |
1,393 |
|
|
0.22 |
% |
Savings deposits |
4,548,195 |
|
|
11,945 |
|
|
1.05 |
|
|
4,532,107 |
|
|
|
11,257 |
|
|
1.01 |
|
|
4,116,683 |
|
|
|
6,074 |
|
|
0.59 |
|
Time deposits |
4,430,521 |
|
|
23,264 |
|
|
2.11 |
|
|
4,287,346 |
|
|
|
21,020 |
|
|
1.99 |
|
|
3,468,395 |
|
|
|
12,240 |
|
|
1.42 |
|
Collateralized customer deposits |
305,019 |
|
|
537 |
|
|
0.71 |
|
|
359,230 |
|
|
|
627 |
|
|
0.71 |
|
|
399,911 |
|
|
|
641 |
|
|
0.64 |
|
Short-term borrowings |
1,974,945 |
|
|
11,345 |
|
|
2.30 |
|
|
1,653,222 |
|
|
|
9,178 |
|
|
2.25 |
|
|
2,249,655 |
|
|
|
10,408 |
|
|
1.86 |
|
Long-term borrowings |
426,046 |
|
|
2,374 |
|
|
2.23 |
|
|
426,011 |
|
|
|
2,354 |
|
|
2.24 |
|
|
336,985 |
|
|
|
1,289 |
|
|
1.53 |
|
Total interest-bearing
liabilities |
14,943,310 |
|
|
56,267 |
|
|
1.51 |
|
|
14,633,757 |
|
|
|
51,157 |
|
|
1.42 |
|
|
13,169,239 |
|
|
|
32,045 |
|
|
0.98 |
|
Noninterest-bearing
deposits |
3,840,835 |
|
|
— |
|
|
— |
|
|
3,753,929 |
|
|
|
— |
|
|
— |
|
|
3,792,803 |
|
|
|
— |
|
|
— |
|
Total deposits and borrowed
funds |
18,784,145 |
|
|
56,267 |
|
|
1.20 |
|
|
18,387,686 |
|
|
|
51,157 |
|
|
1.13 |
|
|
16,962,042 |
|
|
|
32,045 |
|
|
0.76 |
|
Interest payable and other
liabilities |
301,139 |
|
|
|
|
|
|
271,597 |
|
|
|
|
|
|
181,605 |
|
|
|
|
|
Shareholders' equity |
2,920,211 |
|
|
|
|
|
|
2,855,715 |
|
|
|
|
|
|
2,707,346 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
22,005,495 |
|
|
|
|
|
|
$ |
21,514,998 |
|
|
|
|
|
|
$ |
19,850,993 |
|
|
|
|
|
Net Interest
Spread (Average yield earned on interest-earning assets minus
average rate paid on interest-bearing liabilities) |
|
2.98 |
% |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.33 |
% |
Net Interest Income (FTE) |
|
|
$ |
167,832 |
|
|
|
|
|
|
$ |
165,486 |
|
|
|
|
|
$ |
159,868 |
|
|
Net Interest
Margin (Net Interest Income (FTE) divided by total average
interest-earning assets) |
|
3.36 |
% |
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
3.59 |
% |
Reconciliation to
Reported Net Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income, fully taxable equivalent (non-GAAP) |
|
$ |
167,832 |
|
|
|
|
|
|
$ |
165,486 |
|
|
|
|
|
$ |
159,868 |
|
|
Adjustments for
taxable equivalent interest (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
(737 |
) |
|
|
|
|
|
|
(766 |
) |
|
|
|
|
|
|
(737 |
) |
|
|
Tax-exempt investment securities |
|
|
(1,934 |
) |
|
|
|
|
|
|
(1,896 |
) |
|
|
|
|
|
|
(1,594 |
) |
|
|
Total taxable
equivalent interest adjustments |
|
(2,671 |
) |
|
|
|
|
|
|
(2,662 |
) |
|
|
|
|
|
|
(2,331 |
) |
|
|
Net interest income
(GAAP) |
|
|
$ |
165,161 |
|
|
|
|
|
|
$ |
162,824 |
|
|
|
|
|
$ |
157,537 |
|
|
Net interest margin
(GAAP) |
|
|
3.31 |
% |
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
3.54 |
% |
|
|
- Fully taxable equivalent (FTE) basis using a federal income tax
rate of 21%. The presentation of net interest income on a FTE basis
is not in accordance with GAAP, but is customary in the banking
industry.
- Nonaccrual loans and loans held-for-sale are included in
average balances reported and are included in the calculation of
yields. Tax equivalent interest also includes net loan fees.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Average Balances, Fully Tax Equivalent (FTE) Interest and
Effective Yields and Rates (1) (Unaudited)Chemical Financial
Corporation(Dollars in thousands)
|
|
Six Months
Ended |
|
|
June 30, 2019 |
|
June 30, 2018 |
|
|
AverageBalance |
|
Interest (FTE) |
|
EffectiveYield/Rate (1) |
|
AverageBalance |
|
Interest (FTE) |
|
EffectiveYield/Rate (1) |
Assets |
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(2) |
|
$ |
15,419,468 |
|
|
$ |
373,670 |
|
|
4.88 |
% |
|
$ |
14,307,705 |
|
|
$ |
323,693 |
|
|
4.55 |
% |
Taxable investment securities |
|
2,760,930 |
|
|
41,715 |
|
|
3.02 |
|
|
1,901,154 |
|
|
27,125 |
|
|
2.85 |
|
Tax-exempt investment securities (1) |
|
1,145,841 |
|
|
18,296 |
|
|
3.19 |
|
|
1,015,358 |
|
|
14,625 |
|
|
2.88 |
|
Other interest-earning assets |
|
194,066 |
|
|
4,139 |
|
|
4.30 |
|
|
184,895 |
|
|
4,090 |
|
|
4.46 |
|
Interest-bearing deposits with the FRB, other banks and federal
funds sold |
|
250,976 |
|
|
2,921 |
|
|
2.35 |
|
|
245,592 |
|
|
2,541 |
|
|
2.09 |
|
Total interest-earning
assets |
|
19,771,281 |
|
|
440,741 |
|
|
4.48 |
|
|
17,654,704 |
|
|
372,074 |
|
|
4.24 |
|
Less: allowance for loan
losses |
|
(111,308 |
) |
|
|
|
|
|
(94,500 |
) |
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash due from banks |
|
176,307 |
|
|
|
|
|
|
223,186 |
|
|
|
|
|
Premises and equipment |
|
123,218 |
|
|
|
|
|
|
126,656 |
|
|
|
|
|
Interest receivable and other assets |
|
1,802,104 |
|
|
|
|
|
|
1,745,475 |
|
|
|
|
|
Total assets |
|
$ |
21,761,602 |
|
|
|
|
|
|
$ |
19,655,521 |
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
3,316,889 |
|
|
$ |
13,523 |
|
|
0.82 |
% |
|
$ |
2,681,970 |
|
|
$ |
2,618 |
|
|
0.20 |
% |
Savings deposits |
|
4,540,195 |
|
|
23,202 |
|
|
1.03 |
|
|
4,082,036 |
|
|
11,011 |
|
|
0.54 |
|
Time deposits |
|
4,359,329 |
|
|
44,284 |
|
|
2.05 |
|
|
3,366,051 |
|
|
21,995 |
|
|
1.32 |
|
Collateralized customer deposits |
|
331,975 |
|
|
1,164 |
|
|
0.71 |
|
|
404,468 |
|
|
1,165 |
|
|
0.58 |
|
Short-term borrowings |
|
1,814,972 |
|
|
20,523 |
|
|
2.28 |
|
|
2,153,069 |
|
|
18,574 |
|
|
1.74 |
|
Long-term borrowings |
|
426,029 |
|
|
4,728 |
|
|
2.24 |
|
|
354,909 |
|
|
2,753 |
|
|
1.56 |
|
Total interest-bearing
liabilities |
|
14,789,389 |
|
|
107,424 |
|
|
1.46 |
|
|
13,042,503 |
|
|
58,116 |
|
|
0.90 |
|
Noninterest-bearing
deposits |
|
3,797,622 |
|
|
— |
|
|
— |
|
|
3,740,979 |
|
|
— |
|
|
— |
|
Total deposits and borrowed
funds |
|
18,587,011 |
|
|
107,424 |
|
|
1.17 |
|
|
16,783,482 |
|
|
58,116 |
|
|
0.70 |
|
Interest payable and other
liabilities |
|
286,449 |
|
|
|
|
|
|
184,096 |
|
|
|
|
|
Shareholders' equity |
|
2,888,142 |
|
|
|
|
|
|
2,687,943 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
|
$ |
21,761,602 |
|
|
|
|
|
|
$ |
19,655,521 |
|
|
|
|
|
Net Interest Spread (Average
yield earned on interest-earning assets minus average rate paid on
interest-bearing liabilities) |
|
|
|
|
|
3.02 |
% |
|
|
|
|
|
3.34 |
% |
Net Interest Income (FTE) |
|
|
|
$ |
333,317 |
|
|
|
|
|
|
$ |
313,958 |
|
|
|
Net Interest Margin (Net
Interest Income (FTE) divided by total average interest-earning
assets) |
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Reported Net
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully
taxable equivalent (non-GAAP) |
|
|
|
$ |
333,317 |
|
|
|
|
|
|
$ |
313,958 |
|
|
|
Adjustments for taxable
equivalent interest (1): |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
(1,503 |
) |
|
|
|
|
|
(1,487 |
) |
|
|
Tax-exempt investment securities |
|
|
|
(3,829 |
) |
|
|
|
|
|
(3,071 |
) |
|
|
Total taxable equivalent
interest adjustments |
|
|
|
(5,332 |
) |
|
|
|
|
|
(4,558 |
) |
|
|
Net interest income
(GAAP) |
|
|
|
$ |
327,985 |
|
|
|
|
|
|
$ |
309,400 |
|
|
|
Net interest margin
(GAAP) |
|
|
|
3.35 |
% |
|
|
|
|
|
3.53 |
% |
|
|
(1) Fully taxable equivalent (FTE) basis
using a federal income tax rate of 21%. 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. Tax equivalent interest also
includes net loan fees.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Noninterest Income and Operating Expenses Information
(Unaudited)Chemical Financial Corporation(Dollars in thousands)
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees on deposit accounts |
$ |
8,247 |
|
|
$ |
7,967 |
|
|
$ |
8,654 |
|
|
$ |
9,319 |
|
|
$ |
9,690 |
|
|
$ |
9,434 |
|
Wealth management revenue |
6,966 |
|
|
5,872 |
|
|
6,457 |
|
|
6,040 |
|
|
7,188 |
|
|
6,311 |
|
Other fees for customer
services(1) |
1,338 |
|
|
1,372 |
|
|
1,379 |
|
|
1,067 |
|
|
1,050 |
|
|
1,164 |
|
Electronic banking
fees(1) |
4,417 |
|
|
3,452 |
|
|
5,127 |
|
|
4,282 |
|
|
3,749 |
|
|
3,619 |
|
Net gain on sale of loans and
other mortgage banking revenue(2) |
9,989 |
|
|
8,540 |
|
|
6,804 |
|
|
8,905 |
|
|
8,874 |
|
|
8,783 |
|
Change in fair value in loan
servicing rights(2) |
(5,457 |
) |
|
(7,646 |
) |
|
(2,827 |
) |
|
932 |
|
|
(30 |
) |
|
3,752 |
|
Gain (loss) on sale of
investment securities |
4,160 |
|
|
87 |
|
|
221 |
|
|
— |
|
|
3 |
|
|
— |
|
Bank-owned life
insurance(3) |
2,195 |
|
|
1,709 |
|
|
273 |
|
|
1,167 |
|
|
1,669 |
|
|
891 |
|
Other(3) |
6,309 |
|
|
3,504 |
|
|
5,959 |
|
|
6,205 |
|
|
5,825 |
|
|
6,600 |
|
Total noninterest
income |
$ |
38,164 |
|
|
$ |
24,857 |
|
|
$ |
32,047 |
|
|
$ |
37,917 |
|
|
$ |
38,018 |
|
|
$ |
40,554 |
|
- Included within the line item "Other charges and fees for
customer services" in the Consolidated Statements of Income.
- Included within the line item "Net gain on sale of loans and
other mortgage banking revenue" in the Consolidated Statements of
Income.
- Included within the line item "Other" noninterest income in the
Consolidated Statements of Income.
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Salaries and wages(1) |
$ |
53,157 |
|
|
$ |
50,131 |
|
|
$ |
48,486 |
|
|
$ |
49,182 |
|
|
$ |
47,810 |
|
|
$ |
45,644 |
|
Employee benefits(1) |
8,972 |
|
|
9,886 |
|
|
8,342 |
|
|
7,712 |
|
|
8,338 |
|
|
9,913 |
|
Occupancy |
7,786 |
|
|
8,277 |
|
|
7,360 |
|
|
8,620 |
|
|
7,679 |
|
|
8,011 |
|
Equipment and software |
7,076 |
|
|
6,979 |
|
|
7,641 |
|
|
8,185 |
|
|
8,276 |
|
|
7,659 |
|
Outside processing and service
fees |
12,206 |
|
|
11,726 |
|
|
11,698 |
|
|
12,660 |
|
|
10,673 |
|
|
10,356 |
|
FDIC insurance
premiums(2) |
3,100 |
|
|
3,323 |
|
|
3,583 |
|
|
4,823 |
|
|
4,473 |
|
|
5,629 |
|
Professional fees(2) |
3,684 |
|
|
2,743 |
|
|
3,758 |
|
|
3,399 |
|
|
3,004 |
|
|
2,458 |
|
Intangible asset
amortization(2) |
1,360 |
|
|
1,361 |
|
|
1,426 |
|
|
1,426 |
|
|
1,425 |
|
|
1,439 |
|
Credit-related
expenses(2) |
744 |
|
|
660 |
|
|
829 |
|
|
1,239 |
|
|
1,467 |
|
|
1,306 |
|
Merger expenses |
3,042 |
|
|
5,424 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Impairment of income tax
credit(2) |
271 |
|
|
— |
|
|
5,772 |
|
|
3,162 |
|
|
1,716 |
|
|
1,634 |
|
Other(2) |
9,605 |
|
|
8,505 |
|
|
9,471 |
|
|
9,253 |
|
|
9,700 |
|
|
7,561 |
|
Total operating
expenses |
$ |
111,003 |
|
|
$ |
109,015 |
|
|
$ |
108,366 |
|
|
$ |
109,661 |
|
|
$ |
104,561 |
|
|
$ |
101,610 |
|
- Included within the line item "Salaries, wages and employee
benefits" in the Consolidated Statements of Income.
- Included within the line item "Other" operating expenses in the
Consolidated Statements of Income.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Composition of Loans and Deposits and Additional Information on
Intangible Assets (Unaudited)Chemical Financial Corporation(Dollars
in Thousands)
|
|
|
|
|
Loan Growth(1) |
|
|
|
|
|
|
|
Loan Growth |
|
June 30, 2019 |
|
March 31, 2019 |
|
Three Months Ended June 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
Twelve Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loan
portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
4,347,885 |
|
|
$ |
4,054,072 |
|
|
29.0 |
% |
|
$ |
4,002,568 |
|
|
$ |
3,719,922 |
|
|
$ |
3,576,438 |
|
|
21.6 |
% |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
2,024,561 |
|
|
2,050,430 |
|
|
(5.0 |
) |
|
2,059,557 |
|
|
1,897,934 |
|
|
1,863,563 |
|
|
8.6 |
|
Non-owner occupied |
2,772,677 |
|
|
2,736,320 |
|
|
5.3 |
|
|
2,785,020 |
|
|
2,739,700 |
|
|
2,728,103 |
|
|
1.6 |
|
Vacant land |
49,962 |
|
|
48,419 |
|
|
12.7 |
|
|
67,510 |
|
|
73,987 |
|
|
79,606 |
|
|
(37.2 |
) |
Total commercial real estate |
4,847,200 |
|
|
4,835,169 |
|
|
1.0 |
|
|
4,912,087 |
|
|
4,711,621 |
|
|
4,671,272 |
|
|
3.8 |
|
Real estate construction |
700,770 |
|
|
622,590 |
|
|
50.2 |
|
|
597,212 |
|
|
622,147 |
|
|
618,985 |
|
|
13.2 |
|
Subtotal - commercial loans |
9,895,855 |
|
|
9,511,831 |
|
|
16.1 |
|
|
9,511,867 |
|
|
9,053,690 |
|
|
8,866,695 |
|
|
11.6 |
|
Consumer loan portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
3,666,613 |
|
|
3,549,617 |
|
|
13.2 |
|
|
3,458,666 |
|
|
3,391,987 |
|
|
3,325,277 |
|
|
10.3 |
|
Consumer installment |
1,552,835 |
|
|
1,504,441 |
|
|
12.9 |
|
|
1,521,074 |
|
|
1,560,265 |
|
|
1,587,327 |
|
|
(2.2 |
) |
Home equity |
746,600 |
|
|
758,159 |
|
|
(6.1 |
) |
|
778,172 |
|
|
790,310 |
|
|
800,394 |
|
|
(6.7 |
) |
Subtotal - consumer loans |
5,966,048 |
|
|
5,812,217 |
|
|
10.6 |
|
|
5,757,912 |
|
|
5,742,562 |
|
|
5,712,998 |
|
|
4.4 |
|
Total loans |
$ |
15,861,903 |
|
|
$ |
15,324,048 |
|
|
14.0 |
% |
|
$ |
15,269,779 |
|
|
$ |
14,796,252 |
|
|
$ |
14,579,693 |
|
|
8.8 |
% |
(1) Annualized
|
|
|
|
|
Deposit Growth(1) |
|
|
|
|
|
|
|
Deposit Growth |
|
June 30, 2019 |
|
March 31, 2019 |
|
Three Months Ended June 30, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
Twelve Months Ended June 30, 2019 |
Composition of
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
3,925,777 |
|
|
$ |
3,835,427 |
|
|
9.4 |
% |
|
$ |
3,809,252 |
|
|
$ |
4,015,323 |
|
|
$ |
3,894,259 |
|
|
0.8 |
% |
Savings and money market
accounts |
4,216,087 |
|
|
4,197,044 |
|
|
1.8 |
|
|
4,092,082 |
|
|
4,220,658 |
|
|
3,841,540 |
|
|
9.7 |
|
Interest-bearing checking |
3,187,997 |
|
|
3,418,864 |
|
|
(27.0 |
) |
|
3,316,278 |
|
|
3,037,289 |
|
|
2,514,232 |
|
|
26.8 |
|
Brokered deposits |
1,107,613 |
|
|
1,034,929 |
|
|
28.1 |
|
|
985,522 |
|
|
915,348 |
|
|
1,087,959 |
|
|
1.8 |
|
Other time deposits |
3,441,962 |
|
|
3,575,735 |
|
|
(15.0 |
) |
|
3,390,148 |
|
|
3,256,234 |
|
|
3,213,546 |
|
|
7.1 |
|
Total deposits |
$ |
15,879,436 |
|
|
$ |
16,061,999 |
|
|
(4.5 |
)% |
|
$ |
15,593,282 |
|
|
$ |
15,444,852 |
|
|
$ |
14,551,536 |
|
|
9.1 |
% |
(1) Annualized
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Additional Data - Intangibles |
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
|
$ |
1,134,568 |
|
Loan servicing rights |
60,658 |
|
|
64,701 |
|
|
71,013 |
|
|
72,707 |
|
|
70,364 |
|
|
68,837 |
|
Core deposit intangibles (CDI) |
25,835 |
|
|
27,195 |
|
|
28,556 |
|
|
29,981 |
|
|
31,407 |
|
|
32,833 |
|
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Nonperforming Assets (Unaudited)Chemical Financial
Corporation(Dollars in thousands)
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Nonperforming
Assets |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Loans (1): |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
37,762 |
|
|
$ |
33,715 |
|
|
$ |
30,139 |
|
|
$ |
25,328 |
|
|
$ |
20,741 |
|
|
$ |
20,000 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
20,814 |
|
|
18,234 |
|
|
16,056 |
|
|
14,936 |
|
|
16,103 |
|
|
19,855 |
|
Non-owner occupied |
21,639 |
|
|
19,430 |
|
|
23,021 |
|
|
8,991 |
|
|
9,168 |
|
|
5,489 |
|
Vacant land |
1,446 |
|
|
2,153 |
|
|
3,337 |
|
|
4,711 |
|
|
3,135 |
|
|
4,829 |
|
Total commercial real estate |
43,899 |
|
|
39,817 |
|
|
42,414 |
|
|
28,638 |
|
|
28,406 |
|
|
30,173 |
|
Real estate construction |
3,501 |
|
|
3,663 |
|
|
12 |
|
|
28,477 |
|
|
5,704 |
|
|
77 |
|
Residential mortgage |
7,636 |
|
|
7,665 |
|
|
7,988 |
|
|
9,611 |
|
|
7,974 |
|
|
7,621 |
|
Consumer installment |
1,411 |
|
|
1,191 |
|
|
1,276 |
|
|
1,350 |
|
|
945 |
|
|
922 |
|
Home equity |
3,487 |
|
|
3,273 |
|
|
3,604 |
|
|
3,269 |
|
|
2,972 |
|
|
3,039 |
|
Total nonaccrual loans(1) |
97,696 |
|
|
89,324 |
|
|
85,433 |
|
|
96,673 |
|
|
66,742 |
|
|
61,832 |
|
Other real estate and repossessed assets |
8,267 |
|
|
9,106 |
|
|
6,256 |
|
|
6,584 |
|
|
5,828 |
|
|
7,719 |
|
Total nonperforming
assets |
$ |
105,963 |
|
|
$ |
98,430 |
|
|
$ |
91,689 |
|
|
$ |
103,257 |
|
|
$ |
72,570 |
|
|
$ |
69,551 |
|
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 |
$ |
146 |
|
|
$ |
544 |
|
|
$ |
— |
|
|
$ |
632 |
|
|
$ |
472 |
|
|
$ |
322 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
— |
|
|
— |
|
|
52 |
|
|
47 |
|
|
461 |
|
|
— |
|
Non-owner occupied |
— |
|
|
— |
|
|
887 |
|
|
— |
|
|
— |
|
|
— |
|
Vacant land |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
|
— |
|
Total commercial real estate |
— |
|
|
— |
|
|
939 |
|
|
47 |
|
|
477 |
|
|
— |
|
Real estate construction |
— |
|
|
— |
|
|
— |
|
|
38 |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
488 |
|
|
475 |
|
|
713 |
|
|
913 |
|
Total accruing loans contractually past due 90 days or more as
to interest or principal payments |
$ |
146 |
|
|
$ |
544 |
|
|
$ |
1,427 |
|
|
$ |
1,192 |
|
|
$ |
1,662 |
|
|
$ |
1,235 |
|
- 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 we expect to collect on these
loans.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Summary of Allowance and Loan Loss Experience
(Unaudited)Chemical Financial Corporation(Dollars in thousands)
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, 2019 |
|
June 30, 2018 |
Allowance
for loan losses - originated loan portfolio |
|
|
|
|
|
|
Allowance for loan
losses - beginning of period |
$ |
110,284 |
|
$ |
109,564 |
|
$ |
103,071 |
|
$ |
100,015 |
|
$ |
94,762 |
|
$ |
91,887 |
|
$ |
109,564 |
|
$ |
91,887 |
Provision for loan losses |
|
7,502 |
|
|
|
2,479 |
|
|
|
9,444 |
|
|
|
5,058 |
|
|
|
9,572 |
|
|
|
6,256 |
|
|
|
9,981 |
|
|
|
15,828 |
|
Net loan (charge-offs) recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
(1,080 |
) |
|
|
(287 |
) |
|
|
(627 |
) |
|
|
(564 |
) |
|
|
(517 |
) |
|
|
(1,252 |
) |
|
|
(1,367 |
) |
|
|
(1,769 |
) |
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
116 |
|
|
|
(532 |
) |
|
|
(153 |
) |
|
|
255 |
|
|
|
(1,656 |
) |
|
|
341 |
|
|
|
(416 |
) |
|
|
(1,315 |
) |
Non-owner occupied |
|
11 |
|
|
|
219 |
|
|
|
(544 |
) |
|
|
392 |
|
|
|
92 |
|
|
|
(456 |
) |
|
|
230 |
|
|
|
(364 |
) |
Vacant land |
|
(5 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
2 |
|
|
|
(921 |
) |
|
|
(448 |
) |
|
|
(18 |
) |
|
|
(1,369 |
) |
Total commercial real estate |
|
122 |
|
|
|
(326 |
) |
|
|
(697 |
) |
|
|
649 |
|
|
|
(2,485 |
) |
|
|
(563 |
) |
|
|
(204 |
) |
|
|
(3,048 |
) |
Real estate construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
26 |
|
Residential mortgage |
|
170 |
|
|
|
(76 |
) |
|
|
(243 |
) |
|
|
(773 |
) |
|
|
(88 |
) |
|
|
(53 |
) |
|
|
94 |
|
|
|
(141 |
) |
Consumer installment |
|
(1,060 |
) |
|
|
(1,133 |
) |
|
|
(1,293 |
) |
|
|
(1,410 |
) |
|
|
(994 |
) |
|
|
(997 |
) |
|
|
(2,193 |
) |
|
|
(1,991 |
) |
Home equity |
|
29 |
|
|
|
63 |
|
|
|
(91 |
) |
|
|
96 |
|
|
|
(235 |
) |
|
|
(542 |
) |
|
|
92 |
|
|
|
(777 |
) |
Net loan charge-offs |
|
(1,819 |
) |
|
|
(1,759 |
) |
|
|
(2,951 |
) |
|
|
(2,002 |
) |
|
|
(4,319 |
) |
|
|
(3,381 |
) |
|
|
(3,578 |
) |
|
|
(7,700 |
) |
Allowance for loan losses - end of period |
|
115,967 |
|
|
|
110,284 |
|
|
109,564 |
|
|
|
103,071 |
|
|
|
100,015 |
|
|
|
94,762 |
|
|
|
115,967 |
|
|
|
100,015 |
|
Allowance
for loan losses - acquired loan portfolio |
|
|
|
|
|
|
|
|
Allowance for loan losses - beginning of period |
|
— |
|
|
|
420 |
|
|
|
970 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
420 |
|
|
|
— |
|
Provision for loan losses |
|
— |
|
|
|
(420 |
) |
|
|
(550 |
) |
|
|
970 |
|
|
|
— |
|
|
|
— |
|
|
|
(420 |
) |
|
|
— |
|
Allowance for loan losses - end of period |
|
— |
|
|
|
— |
|
|
|
420 |
|
|
|
970 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total allowance for loan
losses |
$ |
115,967 |
|
$ |
110,284 |
|
$ |
109,984 |
|
$ |
104,041 |
|
$ |
100,015 |
|
$ |
94,762 |
|
$ |
115,967 |
|
$ |
100,015 |
Net loan charge-offs as a
percent of average loans (annualized) |
|
0.05 |
% |
|
|
0.05 |
% |
|
|
0.08 |
% |
|
|
0.05 |
% |
|
|
0.12 |
% |
|
|
0.10 |
% |
|
|
0.05 |
% |
|
|
0.11 |
% |
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Originated loans |
$ |
12,871,110 |
|
|
$ |
12,142,274 |
|
|
$ |
11,844,756 |
|
|
$ |
11,145,442 |
|
|
$ |
10,696,533 |
|
|
$ |
10,012,516 |
|
Acquired loans |
2,990,793 |
|
|
3,181,774 |
|
|
3,425,023 |
|
|
3,650,810 |
|
|
3,883,160 |
|
|
4,206,231 |
|
Total loans |
$ |
15,861,903 |
|
|
$ |
15,324,048 |
|
|
$ |
15,269,779 |
|
|
$ |
14,796,252 |
|
|
$ |
14,579,693 |
|
|
$ |
14,218,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
loan losses (originated loan portfolio) as a percent of: |
|
|
Total originated loans |
0.90 |
% |
|
0.91 |
% |
|
0.93 |
% |
|
0.93 |
% |
|
0.94 |
% |
|
0.95 |
% |
Nonperforming loans |
118.7 |
% |
|
123.5 |
% |
|
128.2 |
% |
|
106.6 |
% |
|
149.9 |
% |
|
153.3 |
% |
Credit mark as a percent of
unpaid principal balance on acquired loans |
1.4 |
% |
|
1.5 |
% |
|
1.7 |
% |
|
1.7 |
% |
|
1.8 |
% |
|
1.8 |
% |
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Reconciliation of Non-GAAP Financial Measures
(Unaudited)Chemical Financial Corporation(Amounts in thousands)
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, 2019 |
|
June 30, 2018 |
Non-GAAP
Operating Results |
|
|
|
|
|
|
|
|
|
|
Net
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
69,594 |
|
|
$ |
62,942 |
|
|
$ |
73,039 |
|
|
$ |
70,397 |
|
|
$ |
68,988 |
|
|
$ |
71,596 |
|
|
$ |
132,536 |
|
$ |
140,584 |
Merger expenses |
|
3,042 |
|
|
|
5,424 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,466 |
|
|
|
— |
|
Loan servicing rights change in fair value (gains) losses |
|
5,457 |
|
|
|
7,646 |
|
|
|
2,827 |
|
|
|
(932 |
) |
|
|
30 |
|
|
|
(3,752 |
) |
|
|
13,103 |
|
|
|
(3,722 |
) |
Significant items |
|
8,499 |
|
|
|
13,070 |
|
|
|
2,827 |
|
|
|
(932 |
) |
|
|
30 |
|
|
|
(3,752 |
) |
|
|
21,569 |
|
|
|
(3,722 |
) |
Income tax benefit(1) |
|
(1,785 |
) |
|
|
(2,744 |
) |
|
|
(594 |
) |
|
|
197 |
|
|
|
(7 |
) |
|
|
788 |
|
|
|
(4,529 |
) |
|
|
781 |
|
Significant items, net of
tax |
|
6,714 |
|
|
|
10,326 |
|
|
|
2,233 |
|
|
|
(735 |
) |
|
|
23 |
|
|
|
(2,964 |
) |
|
|
17,040 |
|
|
|
(2,941 |
) |
Net income, excluding
significant items |
$ |
76,308 |
|
|
$ |
73,268 |
|
|
$ |
75,272 |
|
|
$ |
69,662 |
|
|
$ |
69,011 |
|
|
$ |
68,632 |
|
|
$ |
149,576 |
|
$ |
137,643 |
Diluted
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
reported |
$ |
0.96 |
|
|
$ |
0.87 |
|
|
$ |
1.01 |
|
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.99 |
|
|
$ |
1.84 |
|
|
$ |
1.95 |
|
Effect of significant items,
net of tax |
|
0.10 |
|
|
|
0.15 |
|
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.04 |
) |
|
|
0.23 |
|
|
|
(0.04 |
) |
Diluted earnings per share,
excluding significant items |
$ |
1.06 |
|
|
$ |
1.02 |
|
|
$ |
1.04 |
|
|
$ |
0.97 |
|
|
$ |
0.96 |
|
|
$ |
0.95 |
|
|
$ |
2.07 |
|
|
$ |
1.91 |
|
Return on Average
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets, as
reported |
|
1.27 |
% |
|
|
1.17 |
% |
|
|
1.39 |
% |
|
|
1.37 |
% |
|
|
1.39 |
% |
|
|
1.47 |
% |
|
|
1.22 |
% |
|
|
1.43 |
% |
Effect of significant items,
net of tax |
|
0.12 |
|
|
|
0.19 |
|
|
|
0.05 |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.06 |
) |
|
|
0.15 |
|
|
|
(0.03 |
) |
Return on average assets,
excluding significant items |
|
1.39 |
% |
|
|
1.36 |
% |
|
|
1.44 |
% |
|
|
1.36 |
% |
|
|
1.39 |
% |
|
|
1.41 |
% |
|
|
1.37 |
% |
|
|
1.40 |
% |
Return on
Average Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
shareholders' equity, as reported |
|
9.5 |
% |
|
|
8.8 |
% |
|
|
10.4 |
% |
|
|
10.2 |
% |
|
|
10.2 |
% |
|
|
10.7 |
% |
|
|
9.2 |
% |
|
|
10.5 |
% |
Effect of significant items,
net of tax |
|
1.0 |
|
|
|
1.5 |
|
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
1.2 |
|
|
|
(0.3 |
) |
Return on average
shareholders' equity, excluding significant items |
|
10.5 |
% |
|
|
10.3 |
% |
|
|
10.8 |
% |
|
|
10.1 |
% |
|
|
10.2 |
% |
|
|
10.3 |
% |
|
|
10.4 |
% |
|
|
10.2 |
% |
Return on
Average Tangible Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
2,920,211 |
|
$ |
2,855,715 |
|
|
$ |
2,798,498 |
|
$ |
2,769,101 |
|
$ |
2,707,346 |
|
$ |
2,668,325 |
|
$ |
2,888,142 |
|
$ |
2,687,943 |
Average goodwill and core
deposit intangibles, net of tax |
|
1,152,110 |
|
|
1,153,275 |
|
|
|
1,154,469 |
|
|
1,155,679 |
|
|
1,156,877 |
|
|
1,158,084 |
|
|
1,152,689 |
|
|
1,157,482 |
Average tangible shareholders'
equity |
$ |
1,768,101 |
|
$ |
1,702,440 |
|
|
$ |
1,644,029 |
|
$ |
1,613,422 |
|
$ |
1,550,469 |
|
$ |
1,510,241 |
|
$ |
1,735,453 |
|
$ |
1,530,461 |
Return on average tangible
shareholders' equity |
|
15.7 |
% |
|
|
14.8 |
% |
|
|
17.8 |
% |
|
|
17.5 |
% |
|
|
17.8 |
% |
|
|
19.0 |
% |
|
|
15.3 |
% |
|
|
18.4 |
% |
Effect of significant items,
net of tax |
|
1.6 |
|
|
|
2.4 |
|
|
|
0.5 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.8 |
) |
|
|
1.9 |
|
|
|
(0.4 |
) |
Return on average tangible
shareholders' equity, excluding significant items |
|
17.3 |
% |
|
|
17.2 |
% |
|
|
18.3 |
% |
|
|
17.3 |
% |
|
|
17.8 |
% |
|
|
18.2 |
% |
|
|
17.2 |
% |
|
|
18.0 |
% |
- Assumes significant items are deductible at an income tax rate
of 21%.
Chemical Financial Corporation Announces
2019 Second Quarter Operating Results
Reconciliation of Non-GAAP Financial Measures
(Unaudited)Chemical Financial Corporation(Amounts in thousands,
except per share data)
|
2nd Quarter 2019 |
|
1st Quarter 2019 |
|
4th Quarter 2018 |
|
3rd Quarter 2018 |
|
2nd Quarter 2018 |
|
1st Quarter 2018 |
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, 2019 |
|
June 30, 2018 |
Efficiency
Ratio and Operating Expense, Core |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
165,161 |
|
|
$ |
162,824 |
|
|
$ |
163,452 |
|
|
$ |
159,481 |
|
|
$ |
157,537 |
|
|
$ |
151,863 |
|
$ |
327,985 |
|
$ |
309,400 |
Noninterest income |
|
38,164 |
|
|
24,857 |
|
|
32,047 |
|
|
37,917 |
|
|
38,018 |
|
|
|
40,554 |
|
|
|
63,021 |
|
|
|
78,572 |
|
Total revenue - GAAP |
|
203,325 |
|
|
187,681 |
|
|
195,499 |
|
|
197,398 |
|
|
195,555 |
|
|
|
192,417 |
|
|
|
391,006 |
|
|
|
387,972 |
|
Net interest income FTE
adjustment |
|
2,671 |
|
2,662 |
|
|
2,514 |
|
|
2,386 |
|
|
2,331 |
|
|
|
2,227 |
|
|
|
5,332 |
|
|
|
4,558 |
|
Loan servicing rights change
in fair value (gains) losses |
|
5,457 |
|
|
7,646 |
|
|
2,827 |
|
|
(932 |
) |
|
30 |
|
|
|
(3,752 |
) |
|
|
13,103 |
|
|
|
(3,722 |
) |
Gains from sale of investment
securities |
|
(4,160 |
) |
|
(87 |
) |
|
(221 |
) |
|
— |
|
|
(3 |
) |
|
|
— |
|
|
|
(4,247 |
) |
|
|
(3 |
) |
Total revenue - Non-GAAP |
$ |
207,293 |
|
$ |
197,902 |
|
|
$ |
200,619 |
|
|
$ |
198,852 |
|
|
$ |
197,913 |
|
|
$ |
190,892 |
|
$ |
405,194 |
|
$ |
388,805 |
Operating expenses - GAAP |
$ |
111,003 |
|
|
$ |
109,015 |
|
|
$ |
108,366 |
|
|
$ |
109,661 |
|
|
$ |
104,561 |
|
|
$ |
101,610 |
|
$ |
220,018 |
|
$ |
206,171 |
Merger expenses |
|
(3,042 |
) |
|
(5,424 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(8,466 |
) |
|
|
— |
|
Impairment of income tax
credits |
|
(271 |
) |
|
— |
|
|
(5,772 |
) |
|
(3,162 |
) |
|
(1,716 |
) |
|
|
(1,634 |
) |
|
|
(271 |
) |
|
|
(3,350 |
) |
Operating expense, core -
Non-GAAP |
|
107,690 |
|
|
103,591 |
|
|
102,594 |
|
|
106,499 |
|
|
102,845 |
|
|
|
99,976 |
|
|
|
211,281 |
|
|
|
202,821 |
|
Amortization of
intangibles |
|
(1,360 |
) |
|
(1,361 |
) |
|
(1,426 |
) |
|
(1,426 |
) |
|
(1,425 |
) |
|
|
(1,439 |
) |
|
|
(2,721 |
) |
|
|
(2,864 |
) |
Operating expenses, efficiency
ratio - Non-GAAP |
$ |
106,330 |
|
|
$ |
102,230 |
|
|
$ |
101,168 |
|
|
$ |
105,073 |
|
|
$ |
101,420 |
|
|
$ |
98,537 |
|
$ |
208,560 |
|
$ |
199,957 |
Efficiency ratio - GAAP |
|
54.6 |
% |
|
58.1 |
% |
|
55.4 |
% |
|
55.6 |
% |
|
53.5 |
% |
|
|
52.8 |
% |
|
|
56.3 |
% |
|
|
53.1 |
% |
Efficiency ratio - adjusted
Non-GAAP |
|
51.3 |
% |
|
51.7 |
% |
|
50.4 |
% |
|
52.8 |
% |
|
51.2 |
% |
|
|
51.6 |
% |
|
|
51.5 |
% |
|
|
51.4 |
% |
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, 2018 |
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
Tangible Book
Value |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity, as reported |
$ |
2,953,535 |
|
|
$ |
2,897,509 |
|
|
$ |
2,836,260 |
|
|
$ |
2,788,924 |
|
|
$ |
2,750,999 |
|
|
$ |
2,704,703 |
|
Goodwill and core deposit
intangibles, net of tax |
(1,151,532 |
) |
|
(1,152,705 |
) |
|
(1,153,877 |
) |
|
(1,155,083 |
) |
|
(1,156,307 |
) |
|
(1,157,505 |
) |
Tangible shareholders'
equity |
$ |
1,802,003 |
|
|
$ |
1,744,804 |
|
|
$ |
1,682,383 |
|
|
$ |
1,633,841 |
|
|
$ |
1,594,692 |
|
|
$ |
1,547,198 |
|
Common shares outstanding |
71,559 |
|
|
71,551 |
|
|
71,460 |
|
|
71,438 |
|
|
71,418 |
|
|
71,350 |
|
Book value per share
(shareholders' equity, as reported, divided by common shares
outstanding) |
$ |
41.27 |
|
|
$ |
40.50 |
|
|
$ |
39.69 |
|
|
$ |
39.04 |
|
|
$ |
38.52 |
|
|
$ |
37.91 |
|
Tangible book value per share
(tangible shareholders' equity divided by common shares
outstanding) |
$ |
25.18 |
|
|
$ |
24.39 |
|
|
$ |
23.54 |
|
|
$ |
22.87 |
|
|
$ |
22.33 |
|
|
$ |
21.68 |
|
Tangible
Shareholders' Equity to Tangible Assets |
|
|
|
|
|
|
|
|
Total assets, as reported |
$ |
22,491,765 |
|
|
$ |
21,800,313 |
|
|
$ |
21,498,341 |
|
|
$ |
20,905,489 |
|
|
$ |
20,282,603 |
|
|
$ |
19,757,510 |
|
Goodwill and core deposit
intangibles, net of tax |
(1,151,532 |
) |
|
(1,152,705 |
) |
|
(1,153,877 |
) |
|
(1,155,083 |
) |
|
(1,156,307 |
) |
|
(1,157,505 |
) |
Tangible assets |
$ |
21,340,233 |
|
|
$ |
20,647,608 |
|
|
$ |
20,344,464 |
|
|
$ |
19,750,406 |
|
|
$ |
19,126,296 |
|
|
$ |
18,600,005 |
|
Shareholders' equity to total
assets |
13.1 |
% |
|
13.3 |
% |
|
13.2 |
% |
|
13.3 |
% |
|
13.6 |
% |
|
13.7 |
% |
Tangible shareholders' equity
to tangible assets |
8.4 |
% |
|
8.5 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
|
8.3 |
% |
Chemical Financial (NASDAQ:CHFC)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Chemical Financial (NASDAQ:CHFC)
Gráfica de Acción Histórica
De May 2023 a May 2024