Expenses tied to the acquisition this summer of Talmer Bank & Trust lowered Chemical Financial Corp.’s net income for the third quarter, which otherwise reported stronger results.
The Midland-based Chemical Financial (Nasdaq: CHFC) reported net income of $10.7 million, or 21 cents per diluted share, for the third quarter, which compares to $24.5 million, or 64 cents per diluted share, in the same period a year earlier.
Minus the $37.5 million in expenses from the Talmer acquisition, which closed Aug. 31, Chemical Financial had net income of $35.9 million, or 72 cents per diluted share, versus $27.7 million, or 65 cents per diluted share, for the third quarter.
“Our third quarter 2016 financial results reflect not only the exceptional potential of Chemical Financial Corporation, but also of the underlying strength of the predecessor institutions. Our key core performance metrics for the quarter were solid, despite reflecting only a single month of the combined entities’ operations and prior to realizing the majority of our anticipated costs savings associated with the planned consolidation of Talmer Bank and Trust into Chemical Bank,” President and CEO David Ramaker said in a statement. “Our core banking businesses continue to perform well, with strong organic growth in both loans and customer deposits during the third quarter. Credit quality remains high and expense growth is muted.”
Chemical Financial will complete the integration of Talmer in November. Following the acquisition, Chemical operates 255 branches in Michigan, Ohio and Indiana with total assets of $17.4 billion.
In the first nine months of 2016, Chemical Financial recorded net income of $59.7 million, or $1.40 per diluted share. That compares with $61.3 million, or $1.72 per diluted share, through the third quarter of 2015.
Minus expenses from the acquisition, Chemical’s net income was $88.5 million, or $2.09 per diluted share, for the nine months of 2016, compared to $65.5 million, or $1.84 per diluted share, in the same period in 2015.