Chemical Financial Reports 3Q Net Income Up to $70.39M
MIDLAND, Mich. – Chemical Financial Corp., parent of Chemical Bank, reported third-quarter net income of $70.39 million, or 98 cents per diluted share.
This compares to second-quarter net income of $68.98 million, or 96 cents per diluted share and 2017 third-quarter net income of $54.24 million, or 56 cents per diluted share.
The board of directors declared a fourth-quarter cash dividend on common stock of 34 cents per share, payable Dec. 21 to shareholders of record on Dec. 7.
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 ability to drive growth in loans and substantial growth in customer deposits in a competitive market all while working diligently to finalize substantial upgrades to our core operating systems. We believe we are well positioned to finish the year strong with increasing revenue and continuing our focus on driving strong organic growth while efficiently managing our operating expenses as we continue to build upon our solid foundation.”
Key performance ratios (annualized where applicable) for the quarters ended Sept. 30 and June 30 and Sept. 30, 2017:
- Return on average assets: 1.37%, 1.39%, 1.15%.
- Return on average tangible equity: 17.5%, 17.8%, 10.9%.
- Net interest margin: 3.48%, 3.59%, 3.48%.
- Efficiency ratio: 52.8%, 53.5%, 51.2%.
Total loans rose to $14.796 billion, compared to $14.579 billion the previous quarter and $13.833 billion the year-ago quarter.
Total deposits were at $15.444 billion, up from $14.551 billion the second quarter of 2018 and $13.805 billion the third quarter of 2017.
Net interest income for the third quarter was $159.48 million, compared to $157.53 million for the second quarter and $143.62 million for the year-ago quarter.
Total noninterest income fell to $37.91 million, from $38.01 million the second quarter, but up from $32.12 million the third quarter of 2017.
Operating or noninterest expense (includes salaries and employee benefits, data processing, rents and merger expenses) increased to $109.66 million compared to $104.56 million the previous quarter and $119.53 million the year ago-quarter.
Total assets were at $20.905 billion, up from $20.282 billion for the quarter ending June 30 and $19.354 billion for the quarter ending Sept. 30, 2017.
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