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Wednesday, 22 July 2015 09:36

Chemical Financial earnings buoyed by recent acquisitions

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Coming off two acquisitions in West Michigan that closed in the second quarter, Chemical Financial Corp. reported higher earnings.

The Midland-based Chemical Financial (Nasdaq: CHFC) on Tuesday afternoon reported net income of $19.0 million for the second quarter, or 54 cents per diluted share. That compares with net income of $16.2 million, or 54 cents per diluted share, in the same period in 2014.

The second quarter included $3.4 million in acquisition-related costs. During the quarter, Chemical Financial closed on the acquisition of Monarch Community Bank in Coldwater and the Holland-based Lake Michigan Financial Corp., the parent company of The Bank of Holland.

Midway through 2015, Chemical Financial had net income of $36.8 million, or $1.08 per diluted share, versus $30.0 million, or $1.00 per diluted share, in the first six months of 2014. The six months included $4.8 million in acquisition-related expenses.

The Bank of Holland and its sister bank, The Bank of Northern Michigan in Petoskey and Traverse City, will continue to operate as subsidiaries until they are integrated into Chemical Bank and change their names in the fourth quarter.

The acquisitions of Monarch and Lake Michigan Financial were on top of the deal last year for Northwestern Bancorp in Traverse City. The three acquisitions expanded Chemical Financial’s footprint to 187 offices in 43 counties in the Lower Peninsula.

“We look forward with great enthusiasm to continuing to grow our market share in these important regions,” Chairman, President and CEO David Ramaker said in a statement. “We also will continue to selectively pursue acquisitive growth opportunities, but remain primarily focused on capitalizing on increasing loan and deposit demand as the Michigan communities, businesses and consumers we serve benefit from improving economic conditions.”

Chemical Financial, which is now the second-largest bank headquartered in Michigan, ended the second quarter with total assets of $9.02 billion, versus $6.23 billion a year earlier.

Total loans grew to $7.03 billion at the end of the second quarter from $4.89 billion a year earlier. Much of the increase came from the three acquisitions made during the past year, and Chemical Financial reported $224 million in organic loan growth from the first quarter to the second quarter and $553 million in the prior 12 months.

“The organic loan growth was broad based across loan categories and geographical regions of our expanding franchise, and we believe it bodes well for further portfolio expansion as the year progresses,” Ramaker said.

Read 821 times Last modified on Sunday, 26 July 2015 15:30

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