Chemical Financial Corp. (CHFC, Financial) filed Quarterly Report for the period ended 2012-06-30.
Chemical Financial Corporation has a market cap of $630.7 million; its shares were traded at around $21.81 with a P/E ratio of 12.9 and P/S ratio of 2.4. The dividend yield of Chemical Financial Corporation stocks is 3.5%.
Net interest income (FTE) of $47.7 million in the second quarter of 2012 was $0.2 million higher than net interest income (FTE) of $47.5 million in the first quarter of 2012, with the increase attributable to a semi-annual dividend from the Corporations investment in Federal Reserve Bank (FRB) stock. The net interest margin in the second quarter of 2012 was 3.80%, compared to 3.76% in the first quarter of 2012. The average yield on interest-earning assets of 4.28% in the second quarter of 2012 remained unchanged from the first quarter of 2012. Although the average yield on interest-earning assets remained unchanged, a decrease in the average yield of the Corporations loan portfolio was offset by an increase in the average volume of loans outstanding during the second quarter of 2012, as compared to the first quarter of 2012, with the increase in loans being funded by excess cash that the Corporation had previously maintained at the FRB earning 25 basis points. The average cost of interest-bearing liabilities decreased 4 basis points to 0.63% in the second quarter of 2012, from 0.67% in the first quarter of 2012. The decreases in the yield on loans and the cost of interest-bearing liabilities were primarily attributable to the continued historical low interest rate environment and the repricing of loans and deposits to current market rates upon maturity or renewal.
Net interest income (FTE) of $47.7 million in the second quarter of 2012 was $1.2 million, or 2.5%, higher than net interest income (FTE) of $46.5 million in the second quarter of 2011, with the increase primarily attributable to an increase in average loans of $209 million, or 5.6%, between the two quarters that was partially offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the twelve months ended June 30, 2012. The average volume of interest-earning assets in the second quarter of 2012 increased $116 million, or 2.4%, compared to the second quarter of 2011, with the increase attributable to loan growth. Net interest margin was 3.80% in the second quarter of 2012, compared to 3.78% in the second quarter of 2011. The average yield on interest-earning assets decreased 17 basis points to 4.28% in the second quarter of 2012, from 4.45% in the second quarter of 2011.
Noninterest income was $13.3 million in the second quarter of 2012, compared to $12.6 million in the first quarter of 2012 and $10.9 million in the second quarter of 2011. Noninterest income in the second quarter of 2012 included nonrecurring income of $0.6 million from the partial insurance recovery of a 2008 branch cash loss, while noninterest income in the first quarter of 2012 included nonrecurring income of $1.3 million attributable to a gain from the sale of the Corporations merchant card servicing business. Excluding this nonrecurring income, noninterest income in the second quarter of 2012 was $1.4 million, or 12%, higher than the first quarter of 2012 and $1.8 million, or 16%, higher than the second quarter of 2011. The $1.4 million increase in noninterest income over the first quarter of 2012 was primarily attributable to increases in service charges and fees on deposit accounts, wealth management revenue, mortgage banking revenue and other fees for customer services. The $1.8 million increase in noninterest income over the second quarter of 2011 was primarily attributable to increases in mortgage banking revenue and service charges and fees on deposit accounts.
Net credit-related costs, comprised of loan collection costs and other real estate (ORE) expenses of $0.7 million in the second quarter of 2012 decreased $0.7 million, or 51%, from the first quarter of 2012, with the decrease attributable to lower ORE operating costs and less expense applicable to total ORE writedowns and net realized gains/losses on ORE sales. During the second quarter of 2012, the Corporation recognized $0.3 million less expense applicable to ORE operating costs and $0.3 million less expense applicable to total ORE writedowns and net realized gains/losses on ORE sales, compared to the first quarter of 2012. Net credit-related costs decreased $0.8 million, or 53%, from the second quarter of 2011, with the decrease attributable to $0.6 million less expense applicable to ORE writedowns and net realized gains/losses on ORE sales and $0.2 million lower loan collection costs resulting from the Corporations cost containment measures.
Read the The complete Report
Chemical Financial Corporation has a market cap of $630.7 million; its shares were traded at around $21.81 with a P/E ratio of 12.9 and P/S ratio of 2.4. The dividend yield of Chemical Financial Corporation stocks is 3.5%.
Highlight of Business Operations:
Nonperforming real estate construction and land development loans were $5.1 million at June 30, 2012, a decrease of $0.3 million, or 5.6%, from $5.4 million at March 31, 2012 and a decrease of $1.5 million, or 23%, from $6.6 million at December 31, 2011. Nonperforming real estate construction and land development loans comprised 5.4% of total real estate construction and land development loans at both June 30, 2012 and March 31, 2012, compared to 5.6% at December 31, 2011. At June 30, 2012, all of the nonperforming real estate construction and land development loans were land development loans secured primarily by residential real estate improved lots and housing units. The $5.1 million of nonperforming loans secured by land development projects represented 18% of total originated land development loans outstanding of $28.5 million at June 30, 2012. The economy in Michigan has adversely impacted housing demand throughout the state since 2008 and, accordingly, a significant percentage of the Corporations residential real estate development borrowers have experienced cash flow difficulties associated with a significant decline in sales of both lots and residential real estate.Net interest income (FTE) of $47.7 million in the second quarter of 2012 was $0.2 million higher than net interest income (FTE) of $47.5 million in the first quarter of 2012, with the increase attributable to a semi-annual dividend from the Corporations investment in Federal Reserve Bank (FRB) stock. The net interest margin in the second quarter of 2012 was 3.80%, compared to 3.76% in the first quarter of 2012. The average yield on interest-earning assets of 4.28% in the second quarter of 2012 remained unchanged from the first quarter of 2012. Although the average yield on interest-earning assets remained unchanged, a decrease in the average yield of the Corporations loan portfolio was offset by an increase in the average volume of loans outstanding during the second quarter of 2012, as compared to the first quarter of 2012, with the increase in loans being funded by excess cash that the Corporation had previously maintained at the FRB earning 25 basis points. The average cost of interest-bearing liabilities decreased 4 basis points to 0.63% in the second quarter of 2012, from 0.67% in the first quarter of 2012. The decreases in the yield on loans and the cost of interest-bearing liabilities were primarily attributable to the continued historical low interest rate environment and the repricing of loans and deposits to current market rates upon maturity or renewal.
Net interest income (FTE) of $47.7 million in the second quarter of 2012 was $1.2 million, or 2.5%, higher than net interest income (FTE) of $46.5 million in the second quarter of 2011, with the increase primarily attributable to an increase in average loans of $209 million, or 5.6%, between the two quarters that was partially offset by the net impact of interest-earning assets and interest-bearing liabilities repricing during the twelve months ended June 30, 2012. The average volume of interest-earning assets in the second quarter of 2012 increased $116 million, or 2.4%, compared to the second quarter of 2011, with the increase attributable to loan growth. Net interest margin was 3.80% in the second quarter of 2012, compared to 3.78% in the second quarter of 2011. The average yield on interest-earning assets decreased 17 basis points to 4.28% in the second quarter of 2012, from 4.45% in the second quarter of 2011.
Noninterest income was $13.3 million in the second quarter of 2012, compared to $12.6 million in the first quarter of 2012 and $10.9 million in the second quarter of 2011. Noninterest income in the second quarter of 2012 included nonrecurring income of $0.6 million from the partial insurance recovery of a 2008 branch cash loss, while noninterest income in the first quarter of 2012 included nonrecurring income of $1.3 million attributable to a gain from the sale of the Corporations merchant card servicing business. Excluding this nonrecurring income, noninterest income in the second quarter of 2012 was $1.4 million, or 12%, higher than the first quarter of 2012 and $1.8 million, or 16%, higher than the second quarter of 2011. The $1.4 million increase in noninterest income over the first quarter of 2012 was primarily attributable to increases in service charges and fees on deposit accounts, wealth management revenue, mortgage banking revenue and other fees for customer services. The $1.8 million increase in noninterest income over the second quarter of 2011 was primarily attributable to increases in mortgage banking revenue and service charges and fees on deposit accounts.
Net credit-related costs, comprised of loan collection costs and other real estate (ORE) expenses of $0.7 million in the second quarter of 2012 decreased $0.7 million, or 51%, from the first quarter of 2012, with the decrease attributable to lower ORE operating costs and less expense applicable to total ORE writedowns and net realized gains/losses on ORE sales. During the second quarter of 2012, the Corporation recognized $0.3 million less expense applicable to ORE operating costs and $0.3 million less expense applicable to total ORE writedowns and net realized gains/losses on ORE sales, compared to the first quarter of 2012. Net credit-related costs decreased $0.8 million, or 53%, from the second quarter of 2011, with the decrease attributable to $0.6 million less expense applicable to ORE writedowns and net realized gains/losses on ORE sales and $0.2 million lower loan collection costs resulting from the Corporations cost containment measures.
Read the The complete Report
