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Chemical Financial Corporation Reports Second Quarter 2011 Results

Company Release - 7/25/2011 8:00 AM ET

MIDLAND, Mich., July 25, 2011 (GLOBE NEWSWIRE) -- Chemical Financial Corporation (Nasdaq:CHFC) today announced 2011 second quarter net income of $11.0 million, or $0.40 per diluted share, compared to 2011 first quarter net income of $9.2 million, or $0.33 per diluted share, and 2010 second quarter net income of $4.4 million, or $0.17 per diluted share. Net income was $20.2 million, or $0.74 per diluted share, for the six months ended June 30, 2011, compared to $6.7 million, or $0.27 per diluted share, for the six months ended June 30, 2010.

"Our earnings performance continues to trend upward as we benefit from lower loan loss provisions, lower credit related costs and sustained improvements in the credit quality of our loan portfolio. However, in terms of the economy, we are not yet witnessing the level of economic growth characteristic of previous recoveries," said David B. Ramaker, Chairman, Chief Executive Officer and President of the Company.

"While the economy is showing signs of strengthening, it is not yet able to support robust organic balance sheet growth. We continue to believe that our avenue for increased profitability and growth will result from initiatives that organically expand our market share and consolidation opportunities in Michigan's banking industry," added Ramaker.

Higher net income in the second quarter of 2011, compared to the first quarter of 2011, was primarily attributable to a lower provision for loan losses and lower operating expenses. The provision for loan losses was $0.5 million lower in the second quarter of 2011 than in the first quarter of 2011, with the decline largely attributable to a reduction in net loan charge-offs. Operating expenses were $2 million lower in the second quarter of 2011 than in the first quarter of 2011, with the reduction driven by the reversal of a state tax expense accrual, lower loan collection costs and lower FDIC premium expense. The state tax expense accrual reversal, resulting from the elimination of a contingent liability, of $1.2 million increased earnings by $0.03 per diluted share in the second quarter of 2011. The increase in net income in the second quarter of 2011 over the second quarter of 2010 was primarily attributable to a $5.7 million reduction in the provision for loan losses.

The Company's return on average assets during the second quarter of 2011 was 0.84 percent, up from 0.70 percent in the first quarter of 2011 and 0.36 percent in the second quarter of 2010. The return on average equity was 7.8 percent in the second quarter of 2011, up from 6.6 percent in the first quarter of 2011 and 3.3 percent in the second quarter of 2010.

Net interest income was $45.3 million in the second quarter of 2011, up slightly from $45.2 million in the first quarter of 2011 and up from $42.9 million in the second quarter of 2010. The net interest margin (on a tax-equivalent basis) in the second quarter of 2011 was 3.78 percent, unchanged from 3.78 percent in the first quarter of 2011 and down from 3.88 percent in the second quarter of 2010. The increase in net interest income during the second quarter of 2011 compared to the same quarter in 2010 was primarily attributable to the acquisition of O.A.K. Financial Corporation (OAK) and its subsidiary Byron Bank on April 30, 2010.

The provision for loan losses was $7.0 million in the second quarter of 2011, compared to $7.5 million in the first quarter of 2011 and $12.7 million in the second quarter of 2010. Second quarter 2011 net loan charge-offs were $6.9 million, compared to $7.4 million in the first quarter of 2011 and $7.3 million in the second quarter of 2010.

Total noninterest income was $10.9 million in the second quarter of 2011, compared to $10.8 million in the first quarter of 2011 and $11.0 million in the second quarter of 2010.  The increase in the second quarter of 2011, as compared to the first quarter of 2011, was due primarily to higher service charges on deposit accounts and wealth management revenue that were partially offset by a decline in mortgage banking revenue. Service charges on deposit accounts and wealth management revenue were $0.5 million and $0.3 million, respectively, higher in the second quarter of 2011, as compared to the first quarter of 2011, while mortgage banking revenue was $0.6 million lower.

Operating expenses were $33.4 million in the second quarter of 2011, down from $35.4 million in the first quarter of 2011 and $34.6 million in the second quarter of 2010.  The decrease in operating expenses in the second quarter of 2011, as compared to the first quarter of 2011 and the second quarter of 2010, was primarily attributable to the reversal of a $1.2 million state tax expense accrual, as previously discussed. The Company had remaining contingent state tax expense accruals of approximately $0.5 million at June 30, 2011. Credit-related operating expenses were $1.4 million in the second quarter of 2011, down from $2.1 million in the first quarter of 2011 and $1.8 million in the second quarter of 2010. The Company's second quarter 2011 efficiency ratio was 58.2 percent, compared to 61.8 percent in the first quarter of 2011 and 63.1 percent in the second quarter of 2010.  

Total assets were $5.20 billion at June 30, 2011, down from $5.34 billion at March 31, 2011 and up from $5.12 billion at June 30, 2010. The decrease in assets during the second quarter of 2011, as compared to the first quarter of 2011, was largely attributable to a decrease in interest-bearing balances held at the Federal Reserve Bank (FRB). The Company continues to maintain significant amounts of funds generated from deposit growth over the last two years at the FRB, further enhancing the Company's liquidity position, with $265 million in balances held at the FRB at June 30, 2011, compared to $520 million at March 31, 2011 and $440 million at December 31, 2010. Total loans were $3.75 billion at June 30, 2011, compared to $3.68 billion at March 31, 2011 and $3.65 billion at June 30, 2010. Investment securities were $802 million at June 30, 2011, compared to $750 million at March 31, 2011 and $811 million at June 30, 2010.

Total deposits were $4.25 billion at June 30, 2011, compared to $4.38 billion at March 31, 2011 and $4.20 billion at June 30, 2010. The Company experienced a decrease of $131 million, or 3.0 percent, in total deposits during the quarter ended June 30, 2011, with the majority of the decrease attributable to a seasonal decrease in deposits and repurchase agreements of municipal customers. The Company used a portion of its liquidity to pay off maturing Federal Home Loan Bank (FHLB) advances and brokered deposits acquired in the OAK transaction and intends to continue to pay off these wholesale funding sources as they mature. FHLB advances totaled $71.9 million at June 30, 2011, down from $72.9 million at March 31, 2011 and $86.6 million at June 30, 2010. Brokered deposits acquired in the OAK transaction totaled $110 million at June 30, 2011, compared to $151 million at March 31, 2011 and $163 million at December 31, 2010.

At June 30, 2011, the Company's tangible equity to assets ratio and total risk-based capital ratio were 8.9 percent and 13.0 percent, respectively, compared to 8.5 percent and 13.0 percent, respectively, at March 31, 2011. At June 30, 2011, the Company's book value was $20.78 per share, compared to $20.54 per share at March 31, 2011.

The credit quality of the Company's loan portfolio continues to show signs of stabilization. At June 30, 2011, the Company's originated loans, representing all loans other than those acquired in the OAK transaction, had nonaccrual loans and loans past due 90 days or more totaling $109.1 million, compared to $108.5 million at March 31, 2011 and $116.3 million at June 30, 2010. The Company's nonperforming loans also include commercial, real estate commercial and real estate residential loans that have been modified due to financial difficulties being experienced by customers (nonperforming troubled debt restructurings) of $26.8 million at June 30, 2011, compared to $37.4 million at March 31, 2011 and $26.6 million at June 30, 2010. The reduction in nonperforming troubled debt restructurings in the second quarter of 2011 resulted from the Company reclassifying $12.9 million of these loans to a performing status, as borrowers of these loans have made at least six consecutive payments under the modified loan terms.

Other real estate and repossessed assets totaled $24.6 million at June 30, 2011, compared to $26.4 million at March 31, 2011 and $21.7 million at June 30, 2010. The net decrease in the second quarter of 2011 was primarily attributable to sales of properties that were partially offset by additions of foreclosed properties during the quarter.

At June 30, 2011, the allowance for loan losses was $89.7 million, or 2.78 percent of originated loans, compared to 2.85 percent at March 31, 2011 and 2.95 percent at June 30, 2010. The allowance for loan losses as a percentage of nonperforming loans was 66 percent at June 30, 2011, compared to 61 percent at March 31, 2011 and 63 percent at June 30, 2010. At June 30, 2011, nonperforming loans as a percentage of total loans were 3.63 percent, compared to 3.96 percent at March 31, 2011 and 3.92 percent at June 30, 2010.

Chemical Financial Corporation is the second-largest bank holding company headquartered in Michigan. The Company operates through a single subsidiary bank, Chemical Bank, with 142 banking offices spread over 32 counties in the lower peninsula of Michigan. At June 30, 2011, the Company had total assets of $5.2 billion. Chemical Financial Corporation's common stock trades on The NASDAQ Stock Market under the symbol CHFC and is one of the issues comprising the NASDAQ Global Select Market. More information about the Company is available by visiting the investor relations section of its website at www.chemicalbankmi.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the financial services industry, the economy and Chemical Financial Corporation. Words such as "continue," "trend," "yet," "signs," "will," "anticipate," "intend" and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements are based upon current beliefs and expectations and involve substantial risks and uncertainties which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These statements include, among others, statements related to the credit quality of our loan portfolio, future levels of nonperforming loans, future economic trends, future initiatives to expand our market share and future opportunities for acquisitions. All statements referencing future time periods are forward-looking. Management's determination of the provision and allowance for loan losses, the carrying value of acquired loans, goodwill, mortgage servicing rights and other real estate owned and 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) involve judgments that are inherently forward-looking. Management's assumptions concerning pension and other postretirement benefit plans involve judgments that are inherently forward-looking. There can be no assurance that future loan losses will be limited to the amounts estimated or that other real estate owned can be sold for its carrying value or at all. The future effect of changes in the financial and credit markets and the national and regional economy on the banking industry, generally, and on the Company, specifically, are also inherently uncertain. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("risk factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. The Company undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Risk factors include, but are not limited to, the risk factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2010. These and other factors are representative of the risk factors that may emerge and could cause a difference between an ultimate actual outcome and a preceding forward-looking statement.

Chemical Financial Corporation Announces Second Quarter Operating Results
       
Consolidated Statements of Financial Position (Unaudited)      
Chemical Financial Corporation       
       
  June 30 December 31 June 30
(In thousands, except per share data) 2011 2010 2010
Assets:      
Cash and cash equivalents:      
Cash and cash due from banks  $ 129,209  $ 91,403  $ 126,741
Interest-bearing deposits with unaffiliated banks and others  271,070  444,762  270,217
Total cash and cash equivalents  400,279  536,165  396,958
Investment securities:      
Trading securities at fair value  --  --  1,389
Available-for-sale  612,466  578,610  644,550
Held-to-maturity  190,029  165,400  165,296
Total Investment Securities  802,495  744,010  811,235
Other securities  25,572  27,133  27,448
Loans held-for-sale  6,874  20,479  10,871
       
Loans:      
Commercial   842,404  818,997  769,287
Real estate commercial   1,065,606  1,076,971  1,081,860
Real estate construction and land development   142,351  142,620  179,004
Real estate residential   825,860  798,046  768,156
Consumer installment and home equity  871,789  845,028  849,654
Total Loans  3,748,010  3,681,662  3,647,961
Allowance for loan losses  (89,733)  (89,530)  (89,502)
Net Loans  3,658,277  3,592,132  3,558,459
       
Premises and equipment  65,252  65,961  68,611
Goodwill  113,414  113,414  109,149
Other intangible assets  12,327  13,521  15,023
Interest receivable and other assets  119,568  133,394  122,762
Total Assets  $ 5,204,058  $ 5,246,209  $ 5,120,516
       
Liabilities:      
Deposits:      
Noninterest-bearing   $ 813,863  $ 753,553  $ 680,751
Interest-bearing   3,437,113  3,578,212  3,518,431
Total Deposits  4,250,976  4,331,765  4,199,182
Interest payable and other liabilities  33,919  37,533  36,378
Short-term borrowings  276,600  242,703  242,271
Federal Home Loan Bank advances   71,928  74,130  86,635
Total Liabilities  4,633,423  4,686,131  4,564,466
       
Shareholders' Equity:      
Preferred stock, no par value per share  --  --  --
Common stock, $1 par value per share  27,457  27,440  27,434
Additional paid-in capital  430,134  429,511  429,021
Retained earnings  126,477  117,238  111,804
Accumulated other comprehensive loss  (13,433)  (14,111)  (12,209)
Total Shareholders' Equity  570,635  560,078  556,050
Total Liabilities and Shareholders' Equity  $ 5,204,058  $ 5,246,209  $ 5,120,516
 
Chemical Financial Corporation Announces Second Quarter Operating Results
         
Consolidated Statements of Income (Unaudited)        
Chemical Financial Corporation         
         
  Three Months Ended Six Months Ended
  June 30 June 30
(In thousands, except per share data) 2011 2010 2011 2010
Interest Income:        
Interest and fees on loans  $ 49,172  $ 48,278  $ 98,612  $ 89,996
Interest on investment securities:        
Taxable  2,225  2,964  4,549  6,088
Tax-exempt  1,393  1,221  2,872  2,203
Dividends on other securities  368  295  491  377
Interest on deposits with unaffiliated banks and others  281  204  590  420
Total Interest Income  53,439  52,962  107,114  99,084
         
Interest Expense:        
Interest on deposits  7,551  9,202  15,429  17,902
Interest on short-term borrowings  151  161  301  321
Interest on Federal Home Loan Bank advances   443  708  885  1,582
Total Interest Expense  8,145  10,071  16,615  19,805
Net Interest Income   45,294  42,891  90,499  79,279
Provision for loan losses  7,000  12,700  14,500  26,700
Net Interest Income after Provision for Loan Losses  38,294  30,191  75,999  52,579
         
Noninterest Income:        
Service charges on deposit accounts  4,628  5,091  8,724  9,482
Wealth management revenue  3,026  2,603  5,792  4,895
Other charges and fees for customer services  2,728  2,333  5,386  4,341
Mortgage banking revenue  499  915  1,563  1,633
Other   21  58  209  89
Total Noninterest Income  10,902  11,000  21,674  20,440
         
Operating Expenses:        
Salaries, wages and employee benefits  18,068  17,214  36,393  31,721
Occupancy   3,099  2,734  6,437  5,571
Equipment and software  3,110  3,698  5,832  6,412
Other  9,136  11,004  20,140  20,135
Total Operating Expenses  33,413  34,650  68,802  63,839
Income Before Income Taxes  15,783  6,541  28,871  9,180
Federal Income Tax Expense   4,750  2,150  8,650  2,500
Net Income   $ 11,033  $ 4,391  $ 20,221  $ 6,680
         
Net income per common share:        
Basic  $ 0.40  $ 0.17  $ 0.74  $ 0.27
Diluted  0.40  0.17  0.74  0.27
         
Cash dividends declared per common share  0.20  0.20  0.40  0.40
         
Average common shares outstanding:        
Basic  27,454  26,270  27,453  25,093
Diluted  27,497  26,300  27,490  25,117
 
Chemical Financial Corporation Announces Second Quarter Operating Results
             
Financial Summary (Unaudited)            
Chemical Financial Corporation             
      Three Months Ended Six Months Ended
      June 30 June 30
(Dollars in thousands) 2011 2010 2011 2010
Average Balances             
Total assets      $ 5,255,244  $ 4,841,022  $ 5,275,348  $ 4,562,212
Total interest-earning assets      4,928,590  4,534,743  4,945,891  4,294,427
Total loans      3,707,468  3,435,677  3,689,982  3,211,238
Total deposits      4,299,728  3,941,357  4,331,076  3,697,946
Total interest-bearing liabilities      3,857,678  3,626,955  3,899,807  3,426,803
Total shareholders' equity      565,500  528,428  563,094  501,502
             
      Three Months Ended Six Months Ended
      June 30 June 30
  2011 2010 2011 2010
Key Ratios (annualized where applicable)            
Net interest margin (taxable equivalent basis)     3.78% 3.88% 3.78% 3.81%
Efficiency ratio      58.2% 63.1% 60.0% 62.7%
Return on average assets     0.84% 0.36% 0.77% 0.30%
Return on average shareholders' equity     7.8% 3.3% 7.2% 2.7%
Average shareholders' equity as a             
percent of average assets     10.8% 10.9% 10.7% 11.0%
Tangible shareholders' equity as a            
percent of total assets         8.9% 8.8%
Total risk-based capital ratio         13.0% 13.6%
             
   June 30  March 31  Dec 31  Sept 30  June 30  March 31
  2011 2011 2010 2010 2010 2010
Credit Quality Statistics            
Originated Loans  $ 3,225,179  $ 3,143,489  $ 3,129,399  $ 3,045,872  $ 3,034,515  $ 2,988,315
Acquired Loans  522,831  539,027  552,263  594,999  613,446  --
Nonperforming Loans:            
 Nonaccrual loans  105,350  106,296  102,962  112,832  107,981  100,882
 Accruing loans contractually past due 90 days or more            
as to interest or principal payments 3,744 2,196 7,408 6,526 8,301 7,204
 Troubled debt restructurings - commercial and real estate commercial 15,443 15,201 15,057 9,834  7,791  6,243
 Troubled debt restructurings - real estate residential  11,392 22,166 22,302  18,712  18,856  15,799
 Total nonperforming loans   135,929  145,859  147,729  147,904  142,929  130,128
Other real estate and repossessed assets (ORE) 24,607 26,355 27,510 22,704 21,724 18,813
Total nonperforming assets  160,536  172,214  175,239  170,608  164,653  148,941
             
Performing troubled debt restructurings  12,889  --  --  --  --  --
             
Allowance for loan losses as a            
percent of total originated loans 2.78% 2.85% 2.86% 2.94% 2.95% 2.82%
Allowance for loan losses as a            
percent of nonperforming loans 66% 61% 61% 61% 63% 65%
Nonperforming loans as a             
percent of total loans 3.63% 3.96% 4.01% 4.06% 3.92% 4.35%
Nonperforming assets as a            
percent of total loans plus ORE 4.26% 4.64% 4.72% 4.66% 4.49% 4.95%
Nonperforming assets as a            
percent of total assets 3.08% 3.23% 3.34% 3.16% 3.22% 3.47%
Net loan charge-offs as a percent of            
average loans (year-to-date, annualized) 0.77% 0.80% 1.07% 1.06% 1.12% 1.43%
             
   June 30  March 31  Dec 31  Sept 30  June 30  March 31
  2011 2011 2010 2010 2010 2010
Additional Data - Intangibles            
Goodwill  $ 113,414  $ 113,414  $ 113,414  $ 110,266  $ 109,149  $ 69,908
Core deposit intangibles  8,643  9,024  9,406  10,352  10,791  2,183
Mortgage servicing rights (MSR)  3,577  3,832  3,782  3,718  3,641  3,059
Other intangible assets  107  204  333  462  591  --
Amortization of core deposit intangibles (quarter only)  381  382  436  439  337  148
 
Chemical Financial Corporation Announces Second Quarter Operating Results
             
Nonperforming Assets (Unaudited)            
Chemical Financial Corporation             
             
  June 30 March 31 Dec 31 Sept 30 June 30 March 31
(Dollars in thousands) 2011 2011 2010 2010 2010 2010
Nonperforming Loans:            
Nonaccrual loans:            
Commercial  $ 14,386  $ 15,672  $ 16,668  $ 19,440  $ 21,643  $ 18,382
Real estate commercial  57,324 59,931  60,558  59,353 57,085 51,865
Real estate construction and land development  8,933 9,414  8,967  16,085 13,397 15,870
Real estate residential  17,809 15,505  12,083  13,485 12,499 10,913
Consumer installment and home equity  6,898 5,774  4,686  4,469 3,357 3,852
Total nonaccrual loans  105,350 106,296  102,962  112,832 107,981 100,882
Accruing loans contractually past due 90 days or more as to            
interest or principal payments:            
Commercial  629 455  530  909 2,108 2,576
Real estate commercial  143 459  1,350  2,265 2,030 1,483
Real estate construction and land development  --  --  1,220  -- 436 988
Real estate residential  1,729 191  3,253  2,316 2,842 1,636
Consumer installment and home equity  1,243 1,091  1,055  1,036 885 521
Total accruing loans contractually past due 90 days or more             
 as to interest or principal payments  3,744 2,196  7,408  6,526 8,301 7,204
Loans modified under troubled debt restructurings:            
Commercial and real estate commercial  15,443 15,201  15,057  9,834 7,791 6,243
Real estate residential loans  11,392 22,166  22,302  18,712 18,856 15,799
Total loans modified under troubled debt restructurings  26,835 37,367  37,359  28,546 26,647 22,042
Total nonperforming loans  135,929 145,859  147,729  147,904 142,929 130,128
Other real estate and repossessed assets  24,607 26,355  27,510  22,704 21,724 18,813
Total nonperforming assets  $ 160,536  $ 172,214  $ 175,239  $ 170,608  $ 164,653  $ 148,941
 
Chemical Financial Corporation Announces Second Quarter Operating Results
             
Summary of Loan Loss Experience (Unaudited)            
Chemical Financial Corporation             
             
  Three Months Ended
  June 30 March 31 Dec 31 Sept 30 June 30 March 31
(Dollars in thousands) 2011 2011 2010 2010 2010 2010
Allowance for loan losses at beginning of period  $ 89,674  $ 89,530  $ 89,521  $ 89,502  $ 84,155  $ 80,841
Provision for loan losses 7,000  7,500  10,300  8,600 12,700 14,000
Loans charged off:            
Commercial (1,972)  (1,976)  (2,797)  (2,830)  (1,438)  (1,365)
Real estate commercial (3,168)  (3,875)  (3,828)  (2,586)  (2,108)  (2,289)
Real estate construction and land development (136)  (63)  (1,111)  (146)  (638)  (644)
Real estate residential (1,198)  (944)  (1,349)  (1,767)  (1,752)  (3,173)
Consumer installment and home equity (1,832)  (1,784)  (1,961)  (1,916)  (2,361)  (4,427)
Total loan charge-offs (8,306)  (8,642)  (11,046)  (9,245)  (8,297)  (11,898)
Recoveries of loans previously charged off:            
Commercial 710  215  165  212  171  373
Real estate commercial 212  87  189  38  29  170
Real estate construction and land development 5  --  --  19  1  --
Real estate residential 106  456  74  109  175  185
Consumer installment and home equity 332  528  327  286  568  484
Total loan recoveries 1,365  1,286  755  664  944  1,212
Net loan charge-offs (6,941)  (7,356)  (10,291)  (8,581)  (7,353)  (10,686)
Allowance for loan losses at end of period  $ 89,733  $ 89,674  $ 89,530  $ 89,521  $ 89,502  $ 84,155
             
Provision for loan losses (year-to-date)  $ 14,500  $ 7,500  $ 45,600  $ 35,300  $ 26,700  $ 14,000
Net loan charge-offs (year-to-date)  14,297 7,356 36,911 26,620 18,039 10,686
 
Chemical Financial Corporation Announces Second Quarter Operating Results
             
Selected Quarterly Information (Unaudited)            
Chemical Financial Corporation             
             
  2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
(Dollars in thousands, except per share data) 2011 2011 2010 2010 2010 2010
Summary of Operations            
Interest income  $ 53,439  $ 53,675  $ 55,348  $ 55,998  $ 52,962  $ 46,122
Interest expense 8,145 8,470  9,400  10,105  10,071  9,734
Net interest income 45,294 45,205  45,948  45,893 42,891 36,388
Provision for loan losses 7,000 7,500  10,300  8,600  12,700  14,000
Net interest income after provision            
 for loan losses 38,294 37,705  35,648  37,293  30,191  22,388
Noninterest income 10,902 10,772  10,913  11,119  11,000  9,440
Operating expenses  33,413 35,389  36,747  36,216  34,650  29,189
Income before income taxes 15,783 13,088  9,814  12,196  6,541  2,639
Federal income tax expense 4,750 3,900  2,275  3,325  2,150  350
Net income   $ 11,033  $ 9,188  $ 7,539  $ 8,871  $ 4,391  $ 2,289
             
Net interest margin 3.78% 3.78% 3.79% 3.80% 3.88% 3.72%
 
Per Common Share Data            
Net income:            
 Basic  $ 0.40  $ 0.33  $ 0.27  $ 0.32  $ 0.17  $ 0.10
 Diluted 0.40  0.33  0.27  0.32  0.17  0.10
Cash dividends 0.20  0.20  0.20  0.20  0.20  0.20
Book value - period-end 20.78  20.54  20.41  20.44  20.27  19.76
Market value - period-end 18.76  19.93  22.15  20.64  21.78  23.62
CONTACT: David B. Ramaker, CEO
         Lori A. Gwizdala, CFO
         989-839-5350
Source: Chemical Financial Corporation