Solid financial gains year-over-year for Chemical Financial Corporation have set the stage for a strong start to 2016 in first quarter results posted by the Midland-based banking institution with a wide-ranging presence in Michigan's Great Southwest. The first quarter results posted on Friday, April 15, 2016 show first quarter net income of $23.3-million, or $0.60 per diluted share as compared to 2015 first quarter net income of $17.8-million, or $0.54 per diluted share.
Excluding merger and acquisition-related transaction expenses, net income in the first quarter of 2016 was $24.9-million, or $0.65 per diluted share, compared to $18.7-million, or $0.57 per diluted share, in the first quarter of 2015.
The transaction expenses are attributable to the pending merger with Talmer Bancorp as announced in late January. Those expenses totaled $2.6-million in the first quarter of 2016, while there were transaction expenses in the same quarter last year attributable to acquisitions of Monarch Community Bancorp and Lake Michigan Financial Corporation. Those expenses ran to $2.1-million in the fourth quarter of 2015, and $1.4-million in the first quarter of 2015.
David Ramaker is Chairman, CEO and President of Chemical Financial. He says, "Between these solid financial results, and our late January announcement of our partnership with Talmer, 2016 is off to a strong start for Chemical Financial Corporation." He adds, "The improvement in our first quarter 2016 financial results over the prior year's first quarter was driven, in large part, by the benefits and synergies of the two acquisitions we have completed in the intervening period, combined with solid organic loan and deposit growth over the past year. The resultant balance sheet and revenue growth, combined with our sustained high level of credit quality and ability to keep operating expenses in check, has translated into strong first quarter earnings performance."
Ramaker says his team at Chemical continues to believe that their community-centric approach to commercial banking makes them an attractive financial service provider for the households and small- and middle-market businesses that operate in the communities served by the bank, "while also making us an appealing potential partner for like-minded financial institutions." He characterizes the pending merger with Talmer "another instance of our ability to bring strong, complementary, talented commercial banking operations into the Chemical Financial Corporation family."
Chemical's return on average assets was 1.01-percent during the first quarter of 2016, compared to 0.98-percent in the first quarter a year ago. Their return on average shareholder's equity was 9.2-percent in the first quarter of 2016, compared to 9.0-percent at the same time a year ago.
Total assets for Chemical Financial at March 31, 2016 clocked in at $9.30-billion as compared to $7.55-billion at March 31, 2015. Total loans were $7.37-billion at March 31, 2016, up $1.66-billion, or 29-percent, from total loans of $5.70-billion at March 31, 2015. Total deposits were $7.65-billion at March 31, 2016, as compared to $6.32-billion one year earlier on March 31, 2015.
The company will host a conference call to discuss first quarter 2016 operating results on Monday, April 18, 2016 at 10:30am. Interested parties can access the call live by dialing toll-free at 1-888-359-3627 and entering 2475121 for the conference ID.
Chemical Financial is the second largest banking company headquartered and operating branch offices in Michigan, operating through its subsidiary bank, Chemical Bank, with 175 banking offices in 47 Michigan counties.
