Chemical Financial Corporation Reports Second Quarter 2010 Earnings
MIDLAND, Mich., July 26, 2010 (GLOBE NEWSWIRE) -- Chemical Financial Corporation (Nasdaq:CHFC) today announced 2010 second quarter net income of $4.4 million, or $0.17 per diluted share, compared to net income of $2.3 million, or $0.10 per diluted share, in both the first quarter of 2010 and the second quarter of 2009. Net income was $6.7 million, or $0.27 per diluted share, for the six months ended June 30, 2010, compared to $5.0 million, or $0.21 per diluted share, for the six months ended June 30, 2009.
The Company's return on average assets during the second quarter of 2010 was 0.36 percent, up from 0.23 percent in the second quarter of 2009 and 0.22 percent in the first quarter of 2010. The return on average equity was 3.3 percent in the second quarter of 2010, up from 1.9 percent in the second quarter of 2009 and 2.0 percent in the first quarter of 2010.
Included in the second quarter and year-to-date 2010 results were $2.3 million and $3.0 million, respectively, of transaction costs related to the acquisition of O.A.K. Financial Corporation (OAK). The net impact of these costs reduced second quarter and year-to-date diluted earnings per share by $0.07 per share and $0.10 per share, respectively. As previously reported, the Company completed its acquisition of OAK, the parent company of Byron Bank, on April 30, 2010. Accordingly, results of OAK's operations are included since the acquisition date. The acquisition of OAK and Byron Bank resulted in increases in the Company's total assets of $820 million, total loans of $631 million, total deposits of $693 million (core deposits of $495 million) and goodwill of $39 million as of the acquisition date."The acquisition of Byron Bank will serve as a catalyst to drive Chemical Financial's growth in West Michigan and enhance operating earnings. The integration of Byron Bank is progressing as planned, and the Company remains on target for the integration of all systems in the third quarter of 2010," said David B. Ramaker, Chairman, Chief Executive Officer and President of Chemical Financial Corporation. "Our progress is due in large part to the similar cultures of the organizations and the combined efforts of the expanded Chemical Bank team."
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