Chemical Financial Corp. in Midland, Mich., on Monday reported that its third-quarter profit rose 255% from a year earlier, to $8.9 million, as credit costs declined and it began recognizing the benefits of a recent acquisition.
The $5.4 billion-asset company's provision for loan losses was $8.6 million in the quarter, down 40% from a year earlier.
Yet despite the lower credit costs, nonperforming assets rose 8% year over year, to $170.6 million, making up 3.16% of total assets.
Some of that uptick was attributed to Chemical's acquisition of the $840 million-asset O.A.K. Financial Corp. of Byron, Mich. The purchase closed in April.
Chemical said the O.A.K. buyout also contributed to a 16% year-over-year increase in interest income, to $56 million.