- change ups
Chemical Financial's 3Q net income declines
CEO expects continued consolidation in Michigan banking industry.
Midland-based Chemical Financial Corp. (Nasdaq: CHFC) has reported 2012 third quarter net income of $13.1 million, or 48 cents per diluted share, compared to 2012 second quarter net income of $13.9 million, or 50 cents per diluted share.
However, this year is an improvement over last: The bank’s 2011 third quarter net income was $11.6 million, or 42 cents per diluted share. For the nine months ended Sept. 30, net income was $39.3 million, or $1.43 per diluted share, compared to $31.8 million in the same period last year, or $1.16 per diluted share.
“Despite uneven economic conditions, Chemical Financial continues to post strong operating performance and stable financial results. Furthermore, we are making substantial progress working through our nonperforming loans and other real estate portfolio, while controlling costs. As a result, our key credit quality and financial performance metrics continue to improve,” said David B. Ramaker, chairman, CEO and president of the corporation.
He added that the bank’s “strong financial condition favorably positions us to pursue organic and acquisitive growth opportunities, as evidenced by our pending acquisition of 21 branch offices from Independent Bank, which has received regulatory approval and is expected to close in the fourth quarter of 2012.”
“We will selectively assess other potential growth opportunities that arise as we expect Michigan’s banking industry to continue to consolidate,” said Ramaker.
The decrease in net income in the third quarter was attributed to a decrease of $1.2 million in noninterest income, largely due to the receipt of nonrecurring noninterest income of $800,000 in the second quarter.
Net interest income was $500,000 higher in the third quarter, compared to the second, but that was offset by $500,000 increases in both loan losses and operating expenses.