Chemical Financial operates branches throughout Michigan's lower peninsula through its subsidiary, Chemical Bank. Image via fb.com
Chemical Financial Corp. — the parent company of Chemical Bank — has released its earnings for the second quarter of 2013.
Midland-based Chemical Financial Corp. (NASDAQ: CHFC) reported net income of $14.2 million, or 51 cents per diluted share, for the second quarter — a $300,000, or 2.4-percent increase, from the net income of $13.9 million, or 50 cents per share, in 2Q12.
The net income in the second quarter of 2013 was $1 million more – 7.3 percent – than first quarter net income of $13.2 million, or 48 cents per share, with higher net interest income and lower operating expenses in the second quarter partially offset by lower non-interest income.
“We turned in a solid performance in the second quarter of 2013, largely attributable to strong loan growth and improving asset quality that resulted in lower credit-related costs,” said David B. Ramaker, chairman and CEO and president of CFC.
“On a go-forward basis, we continue to look to these factors and a focused cost discipline to drive earnings growth, but also remain well positioned to capitalize on two longer-term trends: the anticipated rising rate environment and ongoing consolidation in Michigan’s banking industry,” he added.
Over the first six months of 2013, net income was $27.4 million, compared to net income of $26.2 million in the first half of last year.
Operating costs in the second quarter totaled $41 million, $4.8 million higher than the second quarter of 2012, which was partially attributable to the 21 branch banking offices acquired in December from Independent Bank Corp. of Ionia.
Chemical Financial is the second largest banking company headquartered and operating branch offices in Michigan.
There are now 156 Chemical Bank locations over 38 counties in the lower peninsula.