Buyout Gives Chemical of Michigan a 3Q Lift

  • Click on individual bank names in the table below to access American Banker's coverage of each company's earnings report. Links to relevant coverage, filings, releases, and bank benchmark profile data can be found in the Related Links area of each article.

    October 28

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.

For reprint and licensing requests for this article, click here.
Community banking Michigan
MORE FROM AMERICAN BANKER