Chemical Financial reports increase in year-end income
Chemical Financial Corp. (Nasdaq: CHFC) in Midland announced today 2012 net income of $51 million, or $1.85 per diluted share, compared to net income in 2011 of $43.1 million, or $1.57 per diluted share.
Included in the fourth quarter and full-year results were $1.8 million and $2.9 million, respectively, of transaction costs related to the acquisition of 21 branch offices from Independent Bank in Ionia, including six branches in the Battle Creek area. Those costs reduced the year end diluted earnings per share by 7 cents.
David B. Ramaker, chairman and CEO, said 2012 “was a good year for Chemical Financial.”
“While general economic conditions continued to be challenging, we were able to grow our balance sheet through both acquisitive and organic means,” he said, and the bank experienced “steady demand for mortgage, consumer and business loans.”
He said increased net interest income, non-interest income and a lower provision for loan losses further drove earnings, while key asset quality and loan losses improved materially over the year.
“The acquisition of the 21 branch offices from Independent Bank not only expands our footprint into important new markets, but provides us with opportunities to increase top-line revenues,” Ramaker said. “As we look ahead, we will continue to focus on profitably growing our core franchise, while cognizant of the fact that economic conditions remain uncertain.”
The deal between Chemical and Independent resulted in the transfer of approximately $404 million in deposits to Chemical, in exchange for a payment of $11.5 million. Chemical also purchased loans totaling approximately $44 million, related to the affected branches, at a discount of 1.75 percent.
Total assets at Chemical Bank were $5.92 billion on Dec. 31, up from $5.34 billion a year ago. Total loans were $4.17 billion at year end, up from $3.83 billion a year ago.