Chemical Financial Corp. (CHFC), the holding company for Chemical Bank, said its fourth quarter profit came in above Street expectations driven primarily by lower provision for loan losses and higher non-interest income.
Net income of the Midland, Michigan-based company increased to $2.52 million or $0.11 per share from $1.59 million or $0.06 per share in the same quarter a year ago.
On average, three analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimate typically excludes one-time items.
Provision for loan losses decreased 13.3% to $15.6 million, while net charge-offs for the quarter jumped to $12.3 million from $7.4 million in the year-earlier quarter.
Allowance for loan losses was $80.8 million, up 41.7% from $57.1 million in the year-earlier quarter.
The decision to maintain a higher degree of liquidity coupled with the loss of interest on non-accrual loans resulted net interest margin for the quarter to decline, which in turn caused net interest income to drop 3.4% to $37.21 million from $38.51 million in the year-earlier quarter.
Net interest margin was down at 3.77%, compared to 3.83% recorded in the year-earlier quarter.
Meanwhile,increases in mortgage banking revenue and other charges brought about a 6.3% increase in total non-interest income to $10.21 million from $9.60 million in the prior-year quarter.
Operating expenses rose 0.2 million to $28.8 million from the same quarter a year ago, which included $0.8 million of professional expenses related to the announced merger transaction and $2.8 million of credit related costs. This, however, was offset by reductions in employee benefit expenses and advertising and marketing costs and a reversal of contingent tax reserves.
At December 31, 2009, net assets were $4.25 billion, up from $3.87 billion at December 31, 2008. Total deposits were $3.42 billion at December 31, 2009, an increase from $2.98 billion at December 31, 2008. Total loans at December 31, 2009 were $2.99 billion, compared to $2.98 billion at December 31, 2008.
For full year 2009, net income was $10.00 million or $0.42 per share, compared to $19.84 million or $0.83 per share a year ago. Net interest income increased to $147.44 million from $145.25 million in the prior year. Total non-interest income was $41.12 million, compared to $41.20 million in the year-earlier quarter.
CHFC is currently trading at $21.35, down $0.21 or 0.97%, on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.