Chemical Financial Reports 2Q Net Income of $68.98M
MIDLAND, Mich. – Chemical Financial Corp., parent of Chemical Bank, Tuesday reported second-quarter net income of $68.98 million, or 96 cents per diluted share.
This compares to first-quarter net income of $71.59 million, or 99 cents per diluted share and 2017 second-quarter net income of $52.01 million, or 73 cents per diluted share.
The board of directors declared a third-quarter cash dividend on common stock of 34 cents per share, payable Sept. 21 to shareholders of record on Sept. 7. This represents a 21.4% increase over the second-quarter dividend of 28 cents.
In a prepared statement, David T. Provost, CEO of Chemical, and Thomas C. Shafer, vice chairman and CEO, said, “Our results for the quarter reflect our continued strong growth which included 10% annualized loan growth and an increase in net interest income of $5.7 million compared to the prior quarter. We are pleased with the improvement in our net interest margin and our ability to maintain our efficiency ratio in a period in which we were working diligently on completing substantial upgrades to our core operating systems. This past weekend we crossed a significant milestone with the successful completion of these upgrades. ”
Key performance ratios (annualized where applicable) for the quarters ended June 30 and March 31 and June 30, 2017:
- Return on average assets: 1.39%, 1.47%, 1.14%.
- Return on average tangible equity: 17.8%, 19.0%, 14.4%.
- Net interest margin: 3.59%, 3.56%, 3.48%.
- Efficiency ratio: 53.5%, 52.8%, 54.7%.
Total loans rose to $14.579 billion, compared to $14.218 billion the previous quarter and $13.667 billion the year-ago quarter.
Total deposits were at $14.551 billion, up from $13.967 billion the first quarter of 2018 and $13.204 billion the second quarter of 2017.
Net interest income for the second quarter was $157.53 million, compared to $151.86 million for the first quarter and $137.94 million for the year-ago quarter.
Total noninterest income fell to $38.01 million, from $40.55 million the first quarter and $41.56 million the second quarter of 2017.
Operating or noninterest expense (includes salaries and employee benefits, data processing, rents and merger expenses) was $104.56 million compared to $101.61 million the previous quarter and $98.23 million the year ago-quarter.
Total assets increased to $20.282 billion, up from $19.757 billion for the quarter ending March 31 and $18.781 billion for the quarter ending June 30, 2017.
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