Chemical Financial operates branches throughout Michigan's lower peninsula through its subsidiary, Chemical Bank. Image via fb.com
Chemical Financial Corporation (Nasdaq: CHFC) in Midland has reported 2013 first quarter net income of $13.2 million, or 48 cents per diluted share, compared to net income of $11.7 million in the prior quarter, 42 cents per share, and $12.4 million, 45 cents per share, in the first quarter last year.
“Despite economic conditions that can best be described as tepid, we continue to post strong earnings growth as a result of the combination of lower credit-related costs and higher organic balance sheet growth,” said David B. Ramaker, chairman/CEO and president of the corporation.
“While asset quality and loan loss metric improvements are expected to continue, we will increasingly look to the combination of asset growth and cost controls to drive future earnings growth," he said. "We are confident that our community focused, relationship-oriented approach and strong financial condition will continue to make Chemical Bank the financial institution of choice for the businesses and residents in the Michigan markets we serve."
Net income was up in the first quarter of 2013 over the prior quarter at Chemical Financial, largely due to a $2-million reduction in the provision for loan losses, driven by continued improvement in the credit quality of the loan portfolio.
Non-interest income increased in the first quarter of 2013 over the fourth quarter of 2012.
Operating expenses were the same in both quarters, but operating expenses in the first quarter of 2013 were largely attributable to the acquisition in December of 21 branch offices from Independent Bank Corporation of Ionia.