Chemical Financial Corp. in Midland, Mich., already intending to write off a $10.5 million loan it deemed fraudulent, says it expects to take an additional $5 million charge on loans that are not being paid back.

As a result, the $3.7 billion-asset Chemical said Friday that it expects to report a loss of 4 to 6 cents a share when it releases its third-quarter earnings this month. Chemical earned $9.6 million, or 40 cents a share, in the second quarter.

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